Uncategorized

JL_Recession_Thumbnail

Tampa Bay Recession

What does a real estate recession look like?

There are signs that this could take place in the Tampa Bay area in the next year. But how will you know it got here. Here are some things to look for and some ideas to help if this does happen in the next year or two.

What the signs of a recession or slow up look like:

Hillsborough StatsIn many areas of the country, the appreciation rate for real estate has been running in the double digits. San Francisco, New York, and Seattle have all had tremendous gains. Locally, the beaches and South Tampa have all had average appreciation rates over 10% in the last year and in some areas almost a 15% increase in price. In Northwest Tampa, my specialization area, the rate of appreciation has ranged from 4% to 10%, depending on the area. The current rate of appreciation in the main urban areas are starting to slow to 6-7%. In South Tampa it may drop to 5% for the year over year appreciation and possibly lower for areas in Northwest Tampa.

There has been a slight buildup of inventory of homes for sale. As of the last report there are over 4,500 homes for sale in Hillsborough County and the average market time is 67 days on the market. The current rate of closings is 1,774/per month. My company Coldwell Banker, releases these reports every month. An important thing to look at is total inventory vs. sales per month and days on the market. If the inventory increases and the average units sold decreases, that will be the first telling sign.

How will this affect you if you are selling a home?

North Tampa Stats 2What I have been finding is that homes that have been upgraded with new kitchens, baths, flooring, paint, etc. bring the most money and sell very quickly. The homes that need updating or work done to them sell for a discount to top quality homes of 15-20%. As an example, one home I closed recently went for $600,000 which was $125,000 more than the next closed home in the neighborhood in the last year. This home did not have any upgrades done and only brought $475,000. The lesser expensive home sold for $117/sq. ft. The home that was upgraded brought $189/sq. ft.

The point above illustrates a great tactic. In a softer market, the pricing and staging of a home becomes critical. The expensive home was very well done and sold for top dollar. The other home was not upgraded but was priced aggressively and because of this, it sold within a short period of time. It is very important to understand the market and know the strengths and weaknesses of the home you are selling. This is where someone like myself, who specializes in an area can help. I am able to look at a home and help you determine the actual value. Looking at the example above the lesser expensive home could have been priced like the higher one and stayed on the market for a very long time.

Sincerely,
Joseph Lewkowicz
Licensed Real Estate Agent
Coldwell Banker

JoeLewk_NTFL_Mockup-1

 

Want to learn more about Joseph Lewkowicz and Tampa Bay’s housing market?
 

Proper Price 9

Time is Money, Especially When Selling Houses

Setting an appropriate price for your home can be an endlessly complex, yet rewarding process. While there are many factors to account for when preparing to sell your home, there is one that many sellers tend to look over and can be used to generate more money from a potential buyer. This factor is the time of year. That’s right; no matter how hard you work to calculate a price for your home due to a number of related aspects, the season can dramatically change how much you can ask for your home. To help you use this simple concept, below are important points to note when setting a price for your home based on the time of year.

Boost Your Price in Active Months
Home buyers are typically the most active in the spring and summer months. Even in Florida, where the weather can be quite harsh during this period, buyers tend to spend the most time searching for someone selling a house between the months of April and August.

During these months, there will likely be more buyers than ever looking to purchase your home. Given that there is a large demand for your home, you can confidently add to your asking price without the worry that you will scare every buyer away. While you should not increase your price too drastically, a slight increase will allow you to walk away from the deal with more money that you could generate in slower months of the year.

Hold Your Price in Slower Months
While it was initially noted that the time of year will affect your asking price when you sell your house, this is only for the positive. After spending precious time coming up with a reasonable asking price for your home, consider this figure to be your “worst case scenario.” In seasons where buyers are not as active, such as fall and winter, your original asking price should be used to attract an expected amount of buyer attention.
Never consider lowering your asking price simply because of the time of year. If your price is set fairly and takes into account many different factors, there will be a suitable buyer for you no matter how slow the market is.

Use The Seasons to Your Advantage
Given that you spend so much time coming up with an appropriate asking price for your home, wouldn’t it feel great to walk away with more money simply because the weather is warmer? By using the seasons to your advantage, you can effectively generate more money from a deal than you would be able to obtain during a different time of the year.

After walking away from a deal with an unexpected amount of money, you have more capital to invest into your next home. But, who knows? Maybe you will look to spend this extra money on a great summer vacation! The possibilities are endless when you use the seasons to your advantage!

Stress is one of the largest concerns when selling a home. Staging, managing finances and documents, and simultaneously juggling the rest of your life can be completely draining. However, one thing is certain about selling your home: it’s a lot easier when you have a solid real estate agent to handle it. Remember, No-One Works Harder to Sell your Home more than Joe! Contact Joe today by calling 813-908-7293 or visit https://josephlewkowicz.com/

Screenshot 2017-01-19 07.52.28

January 2017 Northwest Tampa Market | VLOG

The first figures of the new year are in! Expert realtor Joe Lewkowicz puts his Northwest Tampa Knowledge and market savviness to use in his first market report of 2017. Learn from Joe how price increase and inventory levels will affect the market moving forward.

Prices have continued to increase. The median price increased from $225,000 in December of 2014 to $300,500 in December of 2016. Sales remained stable but were slightly less in 2016.

There were 663 homes for sale as of Jan. 12, which is a 2.89-month supply of homes at the current sales rate. At under $200,000 there are only 88 homes for sale, with 124 sold in November and December.

The most active price range is the $200k-$400k range with 237 homes on the market and 231 sold in November and December. This is a one-month supply of homes for sale, with demand outstripping supply, causing prices to increase. The $400k-$600k range has 160 homes for sale with 77 closed in November and December. It begins to be a more balanced market in the $600k-$1m market, with a seven-month supply of inventory. In that price range there were 34 homes closed in November and December and 119 in inventory. In the $1m and above price range, there are 68 homes in inventory with 11 being closed in November and December. This is around a 10-month supply of inventory, which is about half of what it was last year at this time.

The market still has a low inventory of homes available, causing prices to increase. New construction is picking up some of the slack but time for permitting is causing delays to final construction. If this trend keeps up, look for prices to continue to increase unless there is a dramatic rise in mortgage interest rates.

For trusted real estate information and any Northwest Tampa specific market questions, contact Joe Lewkowicz at 813-908-7293 or request a consultation today! Remember, “no-one works harder to sell your home!”