What determines the Real Estate Market? We all know of the supply and demand models, less supply typically relates to higher demand and higher price points, but the market has many facets which contribute to market value.
Let’s consider the different age profiles: Baby Boomers are reaching their retirement years and are typically downsizing, Gen Xer’s are seeing career moves, extended families are looking to upsize their current location and the Millennials are just starting the home buying process. All of which may be competing for the same property for different reasons.
What about risk variables, each day we hear something new on Covid variants and how it may change our workplace and job security. We see inflationary concerns, higher energy and food costs reducing the amount of funds leftover for the bigger purchases. Although the mortgage rates are at all time lows, how does the Federal Reserves’ statements on tapering affect what the mortgage rates will be in three, six, 12 months from now? These are just a few of the many facets that affect the supply and demand models.
The month of August shows a slight decline in (average sold price per square foot) for the second month in a row for Plant City’s Real Estate market.
The area had 117 homes closed, 133 homes under contract and only 78 homes available to purchase.
We are still in a seller’s market, but the month over month price increases have leveled off for the time being. To gain a more equitable equilibrium in the supply/demand model, the inventory supply would need to increase to about three month’s supply, or about 300 homes. I don’t foresee this happening in the next 12-18 months.
This month’s average selling price was $301,982 compared to $316,108 last month, the 4.5 percent price decrease over prior month. The average days to contract have increased slightly to 11.7 days in August, but still below the year to date average of 17.65 days.
The market is still much in the seller’s favor. Last year the market area increased 9.7 percent in value and year to date 2021 the value has increased 15.5 percent. We are going into a slower selling season with all the upcoming holidays through the end of the year but maintain we will finish the year up 18-19 percent in value.
If you’re in the market to buy or sell a property your main concern should be to team up with a seasoned real estate professional and let them assist you in navigating through this entire process.
Sales Snapshot
The following properties were a sample listed as sold on the Greater Tampa Realtors Association MLS in Aug. 2021.
The home at 3816 LONE OAK RD sold Aug 17 for $125,000. Built in 1935, it has 2 bedrooms, 1 bath and 1040 square feet of living area.
The home at 1101 N CLARK ST sold Aug 13 for $177,000. Built in 1919, it has 3 bedrooms, 2 bath and 1858 square feet of living area.
The home at 816 DRANE ST NW sold Aug 23 for $192,000. Built in 1947, it has 4 bedrooms, 3 bath and 2064 square feet of living area.
The home at 2211 PRESERVATION DR sold Aug 19 for $205,000. Built in 1992 it has 2 bedrooms, 2 bath and 1488 square feet of living area.
The home at 3436 TRAPNELL RIDGE DR sold Aug 31 for $230,000. Built in 2006, it has 3 bedrooms, 2 bath and 1491 square feet of living area.
The home at 3402 BERRY BLOSSOM LN sold Aug 13 for $250,000. Built in 2006, it has 3 bedrooms, 2 baths and 1620 square feet of living area.
The home at 1412 SANDALWOOD DR sold Aug 24 for $290,000. Built in 1980, it has 3 bedrooms, 2 bath and 2137 square feet of living area.
The home at 3810 KIRKLAND RD sold Aug 3 for $320,000. Built in 1980, it has 2 bedrooms, 2 baths and 1305 square feet of living area.
The home at 4323 KIPLING AVE sold Aug 11 for $350,000. Built in 1988, it has 3 bedrooms, 2.5 baths and 1592 square feet of living area.
The home 2809 HAMMOCK DR sold Aug 12 for $375,000. Built in 1985, it has 3 bedrooms, 2 baths and 2201 square feet of living area.
The home at 1742 BROOKSTONE WAY sold Aug 13 for $400,000. Built in 2001, it has 3 bedrooms, 2 baths and 2157 square feet of living area.
The home at 2808 CLUBHOUSE DR sold Aug 6 for $449,900. Built in 1993, it has 4 bedrooms, 3 baths and 2535 square feet of living area.
The home at 1602 DEER HERD AVE sold Aug 6 for $545,000. Built in 2006, it has 3 bedrooms, 3.5 baths and 2646 square feet of living area.
The home at 2869 HAMMOCK DR sold Aug 12 for $585,000. Built in 1985, it has 4 bedrooms, 3 baths and 2921 square feet of living area.
The home at 2807 BRUTON RD sold Aug 20 for $600,000. Built in 1997, it has 5 bedrooms, 2 baths and 2845 square feet of living area.