Which narrative do you ascribe to? Last April’s headline, Real Estate Bubble or Supply-Demand Economics? Well, we didn’t have a bubble burst in the previous 12 months, so I believe the economic model prevailed. I hope you have gathered a calm demeanor from this column versus the mainstream media which preys on the emotions of the readers to direct their storyline.
Let’s look at another facet of the real estate transaction, the AS/IS contract: it would appear from the name that the condition of the property is not going to change during the process. This is one of the most misunderstood concepts of this contract, Sellers believe they don’t have to do anything to the property once it’s under contract, but the contract can have several contingencies which may amend the contract, inspection period and finance period being the most common.
The inspection period grants the buyer a period of time to conduct any inspections to their satisfaction and if any discrepancies are discovered, the buyer might ask the seller to correct those items before closing or has the ability to cancel the contract without losing his escrowed funds. If a request is made by the buyer, the seller has 3 options: accept, decline, or counter. The issue becomes compounded when there is a difference in opinion between buyer and seller and it typically surrounds an issue of insurability. Here is a prime example; a 4-point inspection reveals the roof is 14 years old. In the seller’s opinion, he installed a premium roof with 30-year shingles, and it doesn’t leak. The buyer’s insurance underwriter wants a new roof installed, or the premium charged will disqualify the buyer’s lending approval. If the end goal for both parties is to keep the deal together, then it will be extremely helpful if there is an experienced Realtor® involved in the transaction. This was just one example that might take place in the contract process. Buyers and Sellers just need to know that we live by the contract and there are steps which may be taken to keep the deal from going south.
As we look at the Plant City housing data, April 2023, our market area sold 91 homes for the month surpassing the previous three-month average of 73 units per month. That number comprised of 15 new construction homes which should continue due to the new housing developments. The housing inventory is staying around 2 months’ supply, still considerably less than the three to four months average supply needed for a normal market period. Our ADOM, average days on market, last month was 43.3, slightly higher than last month and should maintain this time frame for the next few months or until the mortgage rates stabilize. I have mentioned in previous articles that our market area peaked back in May/June 2022. Since then, we have been seeing small percentage declines and market stabilization over the past eight months. The last two month’s data suggests that we may have reached the bottom in February, but we will continue to report our findings. That in mind: April’s average price of homes was $382,755 a small increase over last month and 5.7 percent gain over the last three-month average. The average price per SF was $200.03 a 1.6 percent gain over last month and a five percent gain over the previous three-month average. Since we peaked back in May/June 2022, the next couple of months data will tell a better picture. 30-year average mortgage rates came in for the month of April at 6.34 percent.
I’m sorry but I need to take a quick tangent to the conversation. In the process to curb inflation, our government bureaus have raised the Fed Rates 10 times to obtain a somewhat fictitious two percent number — which may be unobtainable — they want unemployment rates to increase into the five to six percent range, but at the same time they want to raise the debt ceiling for the government spending – it appears they want all the burden placed on its constituents and not cut or reduce their own program expenditures.
So, what about the coming months, people will be buying and selling homes, prices have turned the corner and are rising again. We are progressing into the spring/summer buying season, typically we have the strongest buying demand during this time, with inventories low and the current lending rates will be the new norm. The supply-demand models will dictate the new market levels.
If you are in the market to buy or sell your home, please seek an experienced professional Realtor® to assist you in this transaction process. There are too many consequences, going it alone without proper representation. If you have any questions, want a market value analysis of your home, or see what’s available to purchase, please reach out.
M Crawford
Crawford Group
Sales Snapshot
The following residential properties were a sample listed as sold on the Greater Tampa
Realtors Association MLS in April 2023 for the Plant City Market Area.
The home at 510 E Strickland sold April 4 for $150,000. Built in 1976, it has 3 bedrooms, 1 bath and 912 square feet of living area.
The home at 2307 Moody Ave sold April 12 for $160,000. Built in 1954 it has 2 bedrooms, 1 bath and 1026 square feet of living area.
The home at 1306 E Alabama St sold April 28 for $173,100. Built in 1986, it has 4 bedrooms, 2 bath and 1352 square feet of living area.
The home at 1928 Greenwood Valley Dr sold April 18 for $220,000. Built in 2008, it has 3 bedrooms, 2.5 bath and 1632 square feet of living area.
The home at 118 W Lee St sold April 7 for $295,000. Built in 1961, it has 4 bedrooms, 2 bath and 1838 square feet of living area.
The home at 307 Abigail Rd sold April 21 for $315,000. Built in 2002, it has 3 bedrooms, 2 bath and 1445 square feet of living area.
The home at 1205 Camarosa Ln sold April 17 for $339,000. Built in 2004, it has 3 bedrooms, 2 bath and 1504 square feet of living area.
The home at 2749 Walden Woods Dr sold April 6 for $360,000. Built in 2010, it has 4 bedrooms, 2 bath and 1910 square feet of living area.
The home 103 Lovely Ct sold April 17 for $384,260. Built in 2023, it has 4 bedrooms, 2.5 bath and 2340 square feet of living area.
The home at 512 Half Mile Rd sold April 27 for $400,000. Built in 1970, it has 3 bedrooms, 2 bath and 1224 square feet of living area.
The home at 2207 Via Cortona St sold April 5 for $446,000. Built in 2011, it has 4 bedrooms, 3 bath and 2875 square feet of living area.
The home at 2921 Clubhouse Dr sold April 20 for $485,000. Built in 1991, it has 4 bedrooms, 3 bath and 3561 square feet of living area.
The home at 2915 Spring Hammock Dr sold April 24 for $510,000. Built in 1999, it has 4 bedrooms, 3 bath and 2270 square feet of living area.
The home at 4312 Windmill Ridge Rd sold April 18 for $534,900. Built in 2006, it has 4 bedrooms, 3 bath and 2467 square feet of living area.
The home at 2921 Wallace Branch Rd sold April 27 for $587,500. Built in 1999, it has 4 bedrooms, 3 bath and 2099 square feet of living area.
The home at 3034 Sutton Woods Dr sold April 4 for $660,000. Built in 1999, it has 4 bedrooms, 3 bath and 3086 square feet of living area.