There has been a 19 percent price appreciation in Tampa’s 33558 zip code for the last three years.
In tracking the numbers for the area in the last three years, there were 1,105 single-family homes sold since September of 2013. Median price in the area increased from $282,000 in the second half of 2013 to $334,900 in the first half of 2016, which just finished. The year is based on March to September and October through February, which represents spring to summer and fall through winter.
In this three-year period the spring half of the year produced more sales and price increases than the fall-winter half. In the period from September 1, 2015 to February 28, 2016 there were 158 homes sold. For the spring-summer half, which runs from March 1, 2016 to August 31, 2016 there were 238 homes sold, an increase of 80 homes sold. Median price also increased from $308,000 to $334,900 in that time period.
The median number of days to get an acceptable contract for the last three years was always under 50 days, with the quickest sale time period being this last spring during which median days was just 24. Cost per foot, which is often the best indicator of value, increased from a median cost of $116 per foot in 2013 to $135 per foot this last half of 2016. That is an average increase of 19 percent for the whole time period or 6.33 percent per year.
There were a total of 106 REO/bank owned properties sold and 47 short soles in this three-year time period. The distressed sales, which is a combination of bank owned and short sales, remained at 17 to 18 percent of the market for the first two years of this study, and has decreased the last two halves to 9 percent and 7 percent for the most recent half-year. With price increases, there are fewer homes under water and people can afford to sell them or refinance.
Interest rate sensitivity will be something to consider in the next year. Current interest rates are 3.5 percent for a 30-year fixed rate mortgage and 2.75 percent for a 15-year. These are as low as they have been all year, and if they remain, the market is liable to increase in price. If, however the mortgage rates increase by 1 percent, which has happened in years past, rates would still be low, but some first time buyers may be priced out of the market. For more information visit, https://josephlewkowicz.com/