Three quarters of 2016 are behind us and we are heading into the fourth quarter, my favorite time of year. As we head into the final stretch of 2016, it’s time for a Tampa Bay real estate market update.
Year to date, home sales are up by 2.5% compared to 2015. In August, we actually saw a 10% increase in home sales compared to August of 2015. This year, 3,120 homes closed in the month of August while last year August saw 2,827 closings.
The average sales price is up 10% as well.This August, the average sales price was $250,000; in August 2015, the average sales price was $226,000. To put that in perspective, the peak sales price was $286,000 in 2006. Although we are still a long way from reaching that peak, the Tampa market has seen a very strong, healthy gain since 2011.
So what do all of these numbers mean as we head into the fourth quarter? One interesting thing about our current market is that inventory is incredibly low in the entry level and mid level price ranges…in fact, the $300,000 and under market is seeing a significant shortage of homes. However, as we go up in price, the inventory levels grow. Homes priced over $500,000 are in a buyer’s market, and the luxury market (homes priced over $1 million) has 14 months of inventory, which is a huge difference compared to lower price points.
For those looking to move up, this presents a unique opportunity to sell your current lower priced home in a seller’s market and move up into a buyer’s market for your next home.
The fourth quarter is a great selling season. A lot of people mistakenly believe that they need to take a home off the market and take a break during the holidays. However, here in Tampa, 7,486 homes sold in the fourth quarter of 2015. That is a full 24% of homes sold in 2015.
This is the time of year when inventory drops because many sellers take their homes off the market. However, that creates a great opportunity for home sellers to list their property and face less competition. There are a few more reasons why the fall and holiday season is a great time to sell your home…more on that in future blogs!
If you have any questions about our current market or about selling your home this fall, give me a call or send me an email. I would be happy to help you!