Tampa Bay Residential Condominium Market

I have presented an overview of the national, state and Pinellas County residential market.  I have relied on statistics provided by NAR (National Association of Realtors), FAR (Florida Association of Realtors), and GTAR (Greater Tampa Area of Realtors).

National and Regional Condominium Market

According to NAR, existing Condominium sales have decreased slightly with projected annual sales of 620,000 units in May 2018 versus 640,000 units in May 2017.  Statistics in the South have increased slightly with annual sales in May 2018 of 290,000 versus 271,000 in May 2017.As of May 2018 there was a 3.9 month supply of inventory available, which was down from a 4.2 month supply of inventory available from the previous year, nationwide.

NAR Existing Condo

As illustrated on the following table, the median nationwide existing condominium price was $244,100 in May 2018, which is up 2.5% from a year ago.  The median price in the South was $189,300, which was down 1.0% from the previous year.

The average nationwide existing condominium price was $292,400 in May 2018, reflecting a 2.6% increase from a year ago.  The average price in the South was down 1.3% from the previous year.

NAR Sales Price Of Existing Condo

Florida Condominium Market

The following data was prepared by the Florida Association of Realtors (FAR).As can be seen in the following charts, sales of condominium units increased by 2.8% in 2018, compared with 2017 numbers.  Sales volumes have increased each of the past five years. In the First quarter of 2018, there were 27,088 sales, an increase of 2.8% over the First Quarter of 2017 figures.

FAR CLOSED SALES CHART

FAR Median Sales Price

STATE OF FLORIDA HISTORICAL CLOSED SALES FIGURES

FAR CLOSED SALES CHART

Along with increases in the number of sales, both the median and average sales pricing has also increased in 2018, up 7.8% and 10.4% from 2017 figures.  Both the median and average sales pricing in Florida has continued to increase during the first quarter of 2018.

STATE OF FLORIDA HISTORICAL AVERAGE SALES PRICE FIGURES

FAR Average Sales Price

Tampa Bay Condominium Market           

The following data was prepared by the Greater Tampa Association of Realtors (GTAR).  As can be seen in the following charts, sales of condominium units decreased in the first quarter of 2018 over the first quarter of 2017.

Tampa Bay Condo Market Closed Sales

TAMPA AREA CLOSED SALES FIGURES

Tampa Area Closed Sales Figures

Home pricing has continued to increase, with a median sales price in the First Quarter of 2018 at $154,000, representing a 10.0% increase from First Quarter of 2017.

TAMPA AREA MEDIAN SALES PRICE FIGURES

Tampa area median sales price figures

CONCLUSION

The Tampa Bay MSA area experienced large growth in residential housing in recent years. Since the beginning of 2015, the market has shown increases in both pricing and sales figures.  Pinellas County is slowly becoming more built out with less vacant land available for development. Based upon the previous data, 2018 appears to be showing significant improvement over 2017 in terms of pricing and sales

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

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Marketing Luxury Residential Real Estate

cropped-lido-waterfront-home_thumb.jpgThere alot of ways to market luxury residential real estate besides just the MLS (multiple Listing Service).  For example, Homes & Land provides both a magazine (publishing more than 27 million magazines annually) and another online presence with a luxury syndication for listings on The Wall Street Journal, Robb Report, The New York Times, International New York Times and the duPont REGISTRY.   According to this publication, a luxury listing is priced at $450K or more and can quality for their luxury online partners based on the following listing price points:

  • $450K and above – Wall Street Journal (2.277 million copies (including nearly 1,270,000 digital subscriptions) as of June 2017), duPont Registry Homes (features a wide variety of homes like penthouses to island living all over the United States and foreign countries) and the Washington Post (over one million digital subscribers in 2017)
  • $500K and above – Unique Homes ( a resource used to find a luxurious home)
  • $600K and above – New York Times and the International New York Times (over 3 million subscribers)
  • $750K and above – Robb Report (is a global luxury source, which covers the finest and most luxurious items (i.e. art, automobiles, yachting, etc.).  Its known as the ultimate guide for luxury and wealth.)
  • $1M and above – Mansion Global (is a multilingual platform that is localized to address the interests of an international audience.)

Front Elevation 2ListHub – markets to over 154 publishers on more than 750 websites like LandWatch, Homes.com, wikirealty, Homes & Land, properties online, etc  As of April 2017, there were over one billion clicks.  This service also features a service known as ListHub Global, which markets internationally to 55 countries on trusted sites (International home sales in the U.S. are at an all-time high, reaching $153 billion last year).

Social Media – This also an important way to market luxury residential real estate.  This gives you a more personal touch and with the right SEO it could capture the next buyer.

These are just a few of the other ways of finding a buyer for your luxury listing.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Its Time to Sell and Buy your Dream Home with Your Stock Market Returns.

Historical S&P 500 Return

money-7According to Scott Snider with www.mellenmoney.com,  approximately 10% is the average return for the S&P 500 since its inception back in 1928.  Adjusted for inflation the “real return” is more like 7%.  Also worth noting that nearly half of the gains from the S&P 500 resulted from dividends.

2017 S&P 500 Return

The 2017 S&P 500 Return: Buy, Hold and Reinvest

The above quoted numbers are accurate if you bought the index at the opening price on January 3rd, 2017 and sold at the closing price on December 29, 2017. If you’d prefer the numbers buying at the December 30, 2016 closing price the return would be +19.42% and +21.83%, respectively.

Here are the index price returns:

Price Return From
Open Close Gain
Jan 3, 2017 Start 2251.57 2673.61 18.74%
Dec 30, 2016 End 2238.83 2673.61 19.42%

Following are the dividend reinvested returns:

Dividend Reinvested Return From
Open Close Gain
Jan 3, 2017 Start 4303.12 5212.76 21.14%
Dec 30, 2016 End 4278.66 5212.76 21.83%

Whichever set of return time-spans you prefer, the message is the same “If you invest in funds or stocks that pay a dividend you’ll have to choose what to do with the payouts. Simply quoting price returns without regard to real returns in cash form doesn’t reveal the true impact of an investment.”  Either way, 2017 was a very good year for stocks with gains doubling histroical returns.

Source on the 2017 S&P 500 Return Calculations

These numbers come from S&P Dow Jones Indices, the owner of the S&P 500 Index. They have both the classic S&P 500 price index as well as the dividend reinvested numbers from 1987 forward.

2018 S&P 500 Return Projections

According to UBS, the S&P 500 could surge 18 percent this year, which raised its 2018 target to 3,150, the highest on Wall Street, only three trading days into the year.  The Dow Jones industrial average already crossed 25,000

The S&P 500’s gain on the year will be 17.8 percent according to the new UBS target and based on the benchmark’s closing value of 2017. Taking into account the rally to start 2018, the index will rise 15.5 percent from here, according to the UBS target. The firm’s previous 2018 forecast for the S&P 500 was 2,900.

“We assume solid growth,” said Keith Parker, the chief U.S. equity strategist at UBS, in an appearance on CNBC’s “Halftime Report.” “We do expect a large pickup in buybacks and M&A.”

What’s Next?

What are you goingto do with all that money?  If you want to find your dream home in the Tampa Bay area (Florida), you should contact Alan!!!  I can help you find it.  I love helping people find that dream home.  Additionally , yKW1784102f20KW.jpgou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

 

The Summit at Fern Hill in Riverview

Looking for a new home in Tampa Bay?  Why not consider a new Lennar Home?  When they say everything is included.  They mean it.  You don’t have to worry about blinds.  These homes are also very energy effincent.  There are four quick move in ready homes in the subdivision known as “The Summit at Riverview” in Riverview, Florida.  Here is some information about these homes:

SOURCE: Lennar Homes

There are two Four-bedroom/Two-Bath, 1,817 square foot, Harrisburg models ranging in price is offered at $216,890.

Harrisburg first flr

SOURCE: Lennar Homes

The Four-bedroom/Two-Bath, 1,936  square foot, Hartford model  is offered at $216,890.

HARTFORD fIREST fLOOR

SOURCE: Lennar Homes

The two-story, Four-bedroom/Flex/Two and One Half-Bath, 2,584  square foot, Providence  model is offered at $216,890.

SOURCE: Lennar Homes

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

 

Helping sellers and their credit ratings.

IMG_7017

I’m in the real estate sales business to help people and not necessarily to make alot of money.  A home purchase is most likely one of the biggest investment that a typical person will make in their life.  I just closed a short sale yesterday for a client and he is on his way to reestablishing his credit (Rating).  According to Wikipedia “A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.”  According to http://www.thebalance.com, their are both benefits for a short sale versus a foreclosure, which are as follows:

Short Sale Benefits

Here are a few benefits for doing a short sale:

  • You are in control of the sale, not the bank.
  • You may sleep better knowing who is buying your home.
  • You will spare yourself the social stigma of the “F” word, foreclosure.
  • Contrary to popular belief, you can often stay current on your payments and still apply for a short sale.
  • Your home sale will be handled like any other home sale, with respect and dignity.
  • Once the property is sold…Most banks report to the major consumer agencies as “account paid in full for less than the full balance”

Foreclosure Benefits

Here are a few benefits for choosing to do a foreclosure:

  • It’s an immediate solution.
  • You can stop making payments and live in the home until you get kicked out.
  • For some, it’s revenge; you might feel better initially telling the bank where to go when it refused your loan modification.
  • If something breaks or malfunctions, you don’t have to fix it.
  • You can leave the home behind and simply walk away.

In this case, the owner opted for the short sale and the bank will  report to the major consumer agencies as “account paid in full for less than the full balance”  Now he is on his way to reestablishing his credit.  More importantly, he does not have to worry about what is going to happen in the near future with court hearings, letters from the bank, phone calls, etc.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida 33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Just Sold in South Tampa for $255,000 as a tear down!!!

FrontI just sold this charming 2BR/1BA South Tampa home, including GUEST HOUSE has it all! (Note: Main House Approx. 999 Sq. Ft) Features gorgeous hardwood & ceramic tile floors, granite counter tops,remodeled kitchen & bath, built-in cherry wood armoire, and much, much more. Nestled in beautiful lush gardens and brick pathways is the private, remodeled, 1BR/1BA Guest House, which is leased on a month-to-month basis. This property is located in an area that has seen alot of redevelopment.  Primarily due to its school district.

Below is a map of Plant High School Boundaries.  For the 2016-2017 school year, the property was located just north of the southern boundary within Plant High School:

Plant High School Map

Although the above schools are the currently assigned to the Plant High School (one of the best high schools in Tampa), I would suggest that any potential buyer check the Hillsborough County website to verify the schools and more information (school grades, school calendar, etc.). If you are relocating to Hillsborough County, you can find your school at click here as well as the school calendar at click here.

IMG_0200

It was purchased for $255,000 as an immediate tear down.  Even though this home was in average to good condition, a developer was willing to provide the best offer that later closed.  He is intending to build a home just sligh of $1,000,000 on the lot.IMG_0177

KW1784102f20KW_thumb.jpgIn the Real Estate Market?

You should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not?  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Valrico Florida Residental Sales By the Numbers

I get alot of questions about when to buy or is the market too high?  Well I wanted to show you some of the numbers in one of my favorite bedroom communities in eastern Hillsborough County (Florida), which is Valrico (zip codes 33594, 33595, and 33596). Valrico is just east of the better known Brandon community and features some of the best schools in area.

Valrico

Income Statistics

We have reviewed income statistics from the U.S. Census Bureau, Census 2010 Summary File 1 and Esri forecasts for 2017.  Based on these figures in the exhibit below, the Valrico market is very affluent market compared to both Hillsborough County as well as the state of Florida.

2017 Income Comparison

Home Price Trends

Did you know that historically in most communities in Hillsborough County that the price range under $100,000 is the most popular according to MLS Statistics?  The second price range is between $150,000 and $300,000.  As the sales price increases, the number of sales decrease.

Valrico Sales by Number of Sales

As you can see by the below exhibit, Valrico’s historical price trend has remain steady over the past several years.  As of July 2017, the median sales price in Valrico was $232,500.  Based on this MLS Data, there is no reason to suggest a housing bubble or market peak in the near future.

Valrico Historical Sales Price Trend

Rental Rate Comparison

The Valrico residential rental market is also as strong as the residential sales market. According to the U.S. Census Bureau and 2010-2014 American Community Survey, Valrico’s median contract rent is above both Hillsborough County asa well as the state of Florida.

Median Rent

How Much House Can You Afford Instead of Renting?

There are several financing options for home buyers (i.e. conventional, FHA, VA, etc.) and there is a difference changing the term (length of the loan).  Accoding to Rateplug, here is a rough estimate of what a $200,000 house payment would be:

Sample Lender

*FHA loans allow for a 3.5% Down Payment. ARM (Adjustable Rate Mortgages) loan payment & interest rates will change during term.

Real estate taxes assume the property has a homestead.

Ins./HOA Dues = Home Owners Insurance/Dues (can vary)

APR = Annual Percentage Rate. ARM Rates may increase after consummation.

PMI = Private Mortgage Insurance

Conclusion

There is no evidence of a market bubble in the near term as we are growing at a sustainable rate.  So the time to buy is now.  Especially considering the cost of renting versus buying.  We did not even address the benefits of writing off interest and real estate taxes on your income taxes!!!  Stop throwing money out the window and let me sell you a home today.

KW1784102f20KW_thumb.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not?  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link