“Happy New Year”… 2023 in the history books now. Several things come top of mind reflecting on the past year’s business. Our local average selling price per SF bottomed out back in Feb at $182.48/sf then gradually rose for the balance of the year. Mortgage rates peaked in late Oct when they approached 8%. Since then, they have fallen each week and ended the year around a 6.6% average. The Federal Reserve indicated in its Dec meeting that inflation, CPI numbers are heading in the right direction, haven’t hit their target numbers yet, but responded that rate cuts were forthcoming in the new year. All these factors are pointing to a robust upcoming year in real estate.
As for those buyers who purchased a home last year, please do not forget to file for your Homestead Exemption. The filing deadline is MARCH 1, 2024. This exemption is a valuable tax benefit that can save homeowners up to $50,000 on their taxable value and cap future property tax increases to 3%. As Realtors® we see it all the time when a seller wasn’t aware of the exemption or missed the deadline to get an unpleasant surprise in November that their property taxes went up substantially. One such example that I recently ran across. The current owner purchased their home in 2022, didn’t file for the exemption, and saw their property taxes go from $2900 to $7300, granted it would have had some increase due to the new purchase assessment, but it wouldn’t have more than doubled. If the owner fails to apply for the exemption this year their property taxes will not be capped and could effectively increase again by a large margin. Be proactive so as not to be in this camp of homeowners, once the exemption is filed you don’t have to file again on the subject property.
As we look at the Plant City housing data, December 2023, our market area had 79 homes sell, bringing the total units sold to 1025 a 3.6% increase over the previous year. For the year ending 54% of those homes sold were valued at greater than $350,000 while 7% surpassed the $600,000 mark and 9 properties sold for more than $960,000. New construction homes accounted for close to 30% of the year’s volume and will continue to be an increasing share of the real estate business growth as new communities build out.
Our housing inventory remains under pressure and last month increased slightly to around 2.47 months’ supply, which is still considerably less than what inventory supply should be for a normal market period. Sellers still have a slight upper hand in the transaction process, but we are seeing more buyers requesting and receiving concessions like repair or closing costs assistance. The inventory outlook will continue to be stressed and tighten up. Our ADOM, average days on market, last month was 32.5 days a small decline in time from the previous month.
In December 2023, our average sold price was $373,413 or an average price per SF of $200.15 compared to last December, that is up 9.7%, and for the year-over-year numbers, we finished the year up 5.2%. These sales increases align with what I forecasted in last year’s article although I missed the one on prevailing mortgage rates slightly “… the mortgage rate increases will stall and start retreating by the end of the year and you will see those rates again in the fives.” Well, I partially missed the forecast, the average mortgage rates started the year off around 6.48%, and peaked in October close to 8%. Since then, the rates have been trending lower for the past 9 weeks, finishing the year at 6.61% according to Freddie Mac data. Other data sources had the rates closer to 6.05%.
So, what about the coming year, 2024? The FED will cut rates sometime in the new year as to when is the question mark. The mortgage rates will continue to trend lower, and I believe we will see those rates back in the fives by mid-year. The market appreciation will be single-digit growth through the first half of the year and will finish off the year strong with multiple offers resurfacing again for the limited housing inventory.
Many assume that sellers are not willing to trade in their sub-4 mortgage rates for a higher rate, but that’s not the reason why they sell. Life situations change, they want to be closer to family, need more space or time to downsize, want a better neighborhood, job change/relocation, want to tap into built up equity are reasons that outweigh the rate.
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 experienced representation. Get the real scoop on our market. 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 Dec 2023 for the Plant City Market Area.
The home at 2740 Chorba Dr sold Dec 8 for $135,000. Built in 1961, it has 3 bedrooms, 1 bath and 902 square feet of living area.
The home at 906 N Nancy Ter sold Dec 19 for $215,000. Built in 1965 it has 3 bedrooms, 2 bath and 1151 square feet of living area.
The home at 103 Granada Ct N sold Dec 29 for $242,000. Built in 1988 it has 2 bedrooms, 2 bath and 1581 square feet of living area.
The home at 2911 S Pineway Dr sold Dec 8 for $284,000. Built in 1974, it has 3 bedrooms, 2 bath and 1570 square feet of living area.
The home at 3709 Stormy Thistle Pl sold Dec 2 for $314,990. Built in 2023, it has 3 bedrooms, 2 bath and 1565 square feet of living area.
The home at 4124 Barret Ave sold Dec 29 for $325,000. Built in 1989, it has 5 bedrooms, 2.5 bath and 2314 square feet of living area.
The home at 403 W Devane St sold Dec 4 for $350,000. Built in 1927, it has 5 bedrooms, 3 bath and 2092 square feet of living area.
The home at 2309 Walden Pl sold Dec 27 for $385,000. Built in 1987, it has 2 bedrooms, 2 bath and 1411 square feet of living area.
The home 8101 S County Rd 39 sold Dec 29 for $397,000. Built in 1987, it has 4 bedrooms, 3 bath and 1940 square feet of living area.
The home at 1702 E Alabama St sold Dec 19 for $437,000. Built in 1965, it has 4 bedrooms, 2 bath and 2864 square feet of living area.
The home at 4710 Platt Rd sold Dec 29 for $450,000. Built in 1987, it has 3 bedrooms, 2 bath and 1876 square feet of living area.
The home at 2807 Spring Meadow Dr sold Dec 14 for $475,000. Built in 2000, it has 3 bedrooms, 2 bath and 2055 square feet of living area.
The home at 3623 Alafia Creek St sold Dec 29 for $520,000. Built in 2006, it has 4 bedrooms, 3 bath and 2637 square feet of living area.
The home at 1403 Stephens Oak Ct sold Dec 21 for $559,000. Built in 1994, it has 3 bedrooms, 2 bath and 1986 square feet of living area.
The home at 5006 W Sam Allen Rd sold Dec 7 for $780,000. Built in 1986, it has 4 bedrooms, 3 bath and 3467 square feet of living area.
The home at 1103 Colson Rd sold Dec 26 for $1,260,000. Built in 2009, it has 5 bedrooms, 3 bath and 3836 square feet of living area.