“Location, Location, Location…” Everyone attributes some form of value to the property location, what school district is it in, proximity to shopping, attractions, family, friends, church, workplace, etc.
In real estate, location is one of the primary attributes in determining value. So, each property or area locale has its own unique characteristics to determine worth. That’s an understatement when we read the headlines on real estate data and trends based upon the national figures; they make assumptions all locales carry similar value. On the national front they tend to overshadow a more negative undertone for the entire US; extreme falling values, market correction and such, but that’s not the case here in Florida, I-4 corridor and south. I go back to location: would you rather be faced with six-foot snow drifts in Buffalo or the harsh winters of Florida. The influx of people coming to Florida increases daily wanting something that our location provides which creates value.
This takes us back squarely into the supply-demand economic scenario, those moving into the area will increase the demand on the limited supply of homes we have in the area, which in turn stabilizes the market and prices will appreciate. The main difference we encounter today versus two years ago; cheap lending rates are gone. Our current rates will stabilize over the next three to six months and believe the new normal will be in the sub-5’s.
Just realize that our central location carries an inherit value computation when looking at data sources that mention, National, Eastern US or such data figures. I base the following evaluations solely on our Plant City Market area for residential homes sold and active inventory.
As we look at the Plant City housing data, March 2023, our market area sold 108 homes for the month a nice gain from last month. That number comprised of 35 new construction homes which should continue due to the new housing developments. The housing inventory has decreased in months’ supply from 2.15 to 1.85, still considerably less than the three to four months average supply needed for a normal market time period. Our ADOM, average days on market, was 41.3 down from last month and should decrease somewhat over the next prevailing months but will be higher than last year’s ADOM of 23 days.
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. Last month’s data suggests that we may have reached the bottom, but we will continue to report our findings. That in mind: March’s average price of homes was $382,229 a 7.4 percent increase over last month and 7.7 percent gain over the last three-month average. The average price per square foot was $196.93 a 7.9 percent gain over last month and a 4.3 percent gain over the previous three-month average.
30-year average mortgage rates have declined in the last four weeks according to Freddie Mac data, as of April 6 the weekly average was 6.28 percent. The Federal Reserve has their next meeting May 2-3, but I think the June 13-14 meeting will talk more about the inflationary concerns they have been working against.
So, what about the coming months? We are leading into the spring/summer buying season, typically we have the strongest buying demand during this time, with inventories low pricing conditions will stabilize or appreciate in the next few months. If the mortgage rates stabilize in the sub-5’s, we could see the next beginning of real estate growth period.
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 March 2023 for the Plant City Market Area.
The home at 108 W Drew St sold March 14 for $140,000. Built in 1922, it has 2 bedrooms, 1 bath and 1116 square feet of living area.
The home at 1605 W Ball St sold March 6 for $185,000. Built in 1959 it has 5 bedrooms, 3 bath and 2000 square feet of living area.
The home at 6610 Five Acre Rd sold March 22 for $240,000. Built in 1973, it has 5 bedrooms, 3 bath and 2554 square feet of living area.
The home at 1403 N Crystal Ter sold March 3 for $275,000. Built in 1972, it has 3 bedrooms, 1.5 bath and 975 square feet of living area.
The home at 2003 W Ball St sold March 24 for $295,000. Built in 2009, it has 4 bedrooms, 2 bath and 1588 square feet of living area.
The home at 511 E Strickland St sold March 1 for $310,000. Built in 2022, it has 3 bedrooms, 2 bath and 1280 square feet of living area.
The home at 101 Citrus Landing Dr sold March 10 for $335,000. Built in 2005, it has 3 bedrooms, 2.5 bath and 1517 square feet of living area.
The home at 2720 Golf Lake Dr sold March 14 for $340,000. Built in 1996, it has 2 bedrooms, 2 bath and 1647 square feet of living area.
The home 3894 Capri Coast Dr sold March 24 for $368,590. Built in 2023, it has 4 bedrooms, 2 bath and 1850 square feet of living area.
The home at 1506 Teakwood Dr sold March 15 for $400,000. Built in 1996, it has 3 bedrooms, 2 bath and 2101 square feet of living area.
The home at 3025 Via Siena St sold March 9 for $435,000. Built in 2011, it has 4 bedrooms, 3 bath and 2394 square feet of living area.
The home at 3518 Ranchdale Dr sold March 24 for $542,500. Built in 2016, it has 4 bedrooms, 3 bath and 2388 square feet of living area.
The home at 5001 Booth Rd sold March 16 for $549,000. Built in 1987, it has 3 bedrooms, 2.5 bath and 2214 square feet of living area.
The home at 1307 E Trapnell Rd sold March 16 for $585,000. Built in 2000, it has 3 bedrooms, 3 bath and 2494 square feet of living area.
The home at 1101 Mendonsa Rd sold March 31 for $756,000. Built in 1975, it has 6 bedrooms, 4 bath and 4334 square feet of living area.
The home at 2510 E Knights Griffin Rd sold March 15 for $1,023,900. Built in 2002, it has 3 bedrooms, 2 bath and 2028 square feet of living area.
The home at 5005 Justin Ln sold March 10 for $1,400,000. Built in 1998, it has 8 bedrooms, 9.5 bath and 8157 square feet of living area.