“Real Estate Bubble to Bust … Did we miss it?” At this time last year everyone was waiting for the market to crash and burn, well that’s not what we reported back then or even now. The market has undergone some changes, but we are no closer to a market crash than we were back then. The most noticed change in the market has been the prevailing mortgage rates that buyers need to qualify by. The average Freddie Mac mortgage rates for January were 6.27 percent in 2023 which is an 82 percent increase from last January, but it’s a 11 percent decline from the peak rates in November. These rates will continue to decrease throughout the year and believe we will see mid 5 percent by the summer.
As we look at the Plant City housing data, January 2023, our market area sold 48 homes for the month substantially lower than last year’s average of 82.4 per month. The housing inventory has decreased slightly in months’ supply from 2.16 to 2.12, still considerably less than the 3-4 months average supply needed for a normal market time period. The ADOM, average days on market, was 49.9 but typically the holiday season tends to increase the number and should decrease somewhat over the next prevailing months but will be higher than last year’s ADOM of 23 days. Sellers will need to get accustomed to longer days on market before contract agreement.
The last six months of the year we saw small steady declines in the average selling prices from the peak in May/June but last month we saw an increase of 8 percent over December, the average selling price in January was $368,663. Looking at January’s year over year numbers, we see our area had a 20 percent increase in average selling price. The average selling price per square foot was $191.48 in January. Comparing the Median prices month over month data, January finished with a median sales price of $343,900, which was 2.7 percent higher than in December.
So, what about the coming year, 2023, supply and demand constraints will affect many facets of the market conditions. The Federal Reserve still may have another interest hike in store, the mortgage rates have already started to retreat. Housing inventory will not hit an equilibrium supply this year. Buyers on the sidelines will be accumulating more funds towards their down payments readying themselves for their purchase decision time frame. Housing prices will see slight appreciation in prices, single digit growth while all these things are setting up for another real estate growth period in the latter part of the year and into 2024.
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.
Lastly, if you purchased a home in 2022, do not forget to apply for your homestead exemption by March 1st with the property appraiser office.
M Crawford
Crawford Group
Sales Snapshot
The following residential properties were a sample listed as sold on the Greater Tampa Realtors Association MLS in January 2022 for the Plant City Market Area.
The home at 3136 Clay Turner Rd sold January 11 for $130,000. Built in 1982, it has 2 bedrooms, 1.5 bath and 576 square feet of living area.
The home at 1115 N Maryland Ave sold January 6 for $225,000. Built in 1963 it has 3 bedrooms, 1 bath and 1062 square feet of living area.
The home at 4703 Bloom Dr sold January 30 for $259,200. Built in 1995, it has 3 bedrooms, 2 bath and 1437 square feet of living area.
The home at 1004 S Evers St sold January 27 for $262,000. Built in 1946, it has 2 bedrooms, 2 bath and 1104 square feet of living area.
The home at 4608 Platt Rd sold January 3 for $275,000. Built in 2008, it has 2 bedrooms, 2 bath and 1664 square feet of living area.
The home at 1410 Tahitian Sunrise Dr sold January 27 for $309,900. Built in 2023, it has 4 bedrooms, 2 bath and 1817 square feet of living area.
The home at 3608 Trapnell Grove Lp sold January 13 for $325,000. Built in 2007, it has 3 bedrooms, 2 bath and 1472 square feet of living area.
The home at 1802 Sagebrush Rd sold January 20 for $338,000. Built in 1987, it has 3 bedrooms, 2 bath and 2031 square feet of living area.
The home 3530 San Moise Place sold January 19 for $375,000. Built in 2016, it has 4 bedrooms, 2.5 bath and 2526 square feet of living area.
The home at 3013 Spring Hammock Dr sold January 3 for $385,000. Built in 2000, it has 3 bedrooms, 2 bath and 2179 square feet of living area.
The home at 4109 Barret Ave sold January 17 for $408,500. Built in 1988, it has 5 bedrooms, 2.5 bath and 2998 square feet of living area.
The home at 1219 S Wiggins Rd sold January 18 for $499,500. Built in 1983, it has 3 bedrooms, 3 bath and 2262 square feet of living area.
The home at 4314 Cooper Rd sold January 31 for $585,000. Built in 1989, it has 3 bedrooms, 2 bath and 2300 square feet of living area.
The home at 3737 Alafia Creek St sold January 31 for $610,000. Built in 2006, it has 4 bedrooms, 3 bath and 2831 square feet of living area.
The home at 3501 Sam Allen Oaks Cir sold January 11 for $960,000. Built in 2001, it has 6 bedrooms, 4 bath and 4663 square feet of living area.