Home sales in Northwest Hillsborough remain steady, with sales in July slightly higher than in June. There were more homes closed in June of 2018 than any of the other months. The median price for the entire area has increased by $25,000 from July 2018 to July 2019, and the number of days on the market remains the same for both years.
Included in this month’s sale comparison is a breakdown of inventory levels in various price ranges. Months of inventory is a measure used by relocation companies and real estate analysts to determine the state of the market. A lower price range means there is a higher turnover.
Many analysts note that a four to six month level of inventory is a balanced market and is neither buyer or seller oriented. Under four months of inventory is a very strong seller market, such as the below $400,000 range in this report. Above six months of inventory, the market is more buyer dominant and pricing needs to be stronger to make a sale. The overall market is mostly seller-oriented with the upper end being less friendly to sellers than buyers. The strength of the market has to be looked at compared to past months. Several months ago, the inventory level of homes below $200,000 was only two month’s supply of homes for sale.
Many factors affect the market and the demand for homes. With interest rates at their lowest point in years, the market has remained strong, which still makes it a good time to buy. With a ¼% drop in the mortgage rate, a buyer can afford approximately a 3% more valuable home. Fannie Mae mortgage rates were 4.4% in January, compared to 3.6% as of today. With this .8% drop in rates, a buyer that could only afford a $300,000 mortgage in January can now afford a $330,000 mortgage. This creates a huge difference in buying power.
The market should remain steady for the rest of the year with the potential for interest to drop just a little, but this is hard to predict. I encourage buyers who have been looking for a home to take advantage of these low interest rates while we have them.
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 813-701-2030 or visit https://josephlewkowicz.com/