Happy New Year 2022. What is in store for the real estate industry this year? We will continue to have a very limited supply of homes for the foreseeable future. Home values will see slightly higher selling prices, mortgage rates will climb to higher levels that we have not seen in the past several years and inflation is on the rise.
Inflation concerns, one number researched for Nov. 2021 has inflation as 6.8 percent, which in easy math, the dollar wage you earned in November could purchase 93 cents of products in December, so your buying power is being decreased. The consequences of controlling inflation, the FED tapering treasuries purchases will see other factors like mortgage rates increase. Higher mortgage rates tend to work in opposite direction to home prices, so the higher rates may slow the higher growth in home values.
The area’s supply of homes over the past year have averaged less than one month’s supply of residential properties to market. The marketing stresses of multiple offers, increased selling prices will continue to price some people out of the market. An experienced realtor and/or lender will offer insights to keep the transaction on course.
Plant City’s current market trends and year end numbers.
The market continues to move higher with all prevailing factors affecting these transactions. Last month the area sold 93 properties bringing the year-to-date total to 1094 properties, a 13.7 percent increase over last year. This month’s average selling price was $330,541 compared to $317,581 last month, an 4.1 percent price increase over the prior month. The area finished out the year with a $294,465 average selling price per unit and a 20 percent increase over 2020. The average price per square foot increased this month to $186.71, bringing the year-to-date average in at $163.67 per square foot.
So, what will be in store for 2022? We will continue to have a sellers’ market in real estate for the next 12-24 months or until we reach three or more month’s inventory supply. I don’t think we will have a 20 percent increase in property values, but we may have a 15 percent increase. The mortgage rates will continue to creep up towards the 4 percent range. Even with higher inflation, the real estate asset is still a place for a good return on investment. If you’re in the market to buy, waiting is not on your side. Also remember, if you are in the market to buy or sell, these are statistical averages meant to be a gauge to the market. There are many aspects to pricing that include condition, location, updates, etc… and your professional representation will be able to give you a more accurate representation of your property.
Sales Snapshot
The following properties were a sample listed as sold on the Greater Tampa Realtors Association MLS in Dec 2021.
The home at 3019 Fair Ln sold Dec 6 for $145,000. Built in 1984, it has 3 bedrooms, 2 bath and 924 square feet of living area.
The home at 1914 Cedar Run Ct sold Dec 28 for $177,500. Built in 1986, it has 2 bedrooms, 2 bath and 1180 square feet of living area.
The home at 816 Drane Street NW sold Dec 10 for $198,000. Built in 1947, it has 4 bedrooms, 3 bath and 2064 square feet of living area.
The home at 173 Alexander Woods Dr sold Dec 9 for $219,000. Built in 2014 it has 3bedrooms, 2 bath and 1764 square feet of living area.
The home at 2927 Wilder Creek Cir sold Dec 30 for $250,000. Built in 1993, it has 3 bedrooms, 2 bath and 1431 square feet of living area.
The home at 4717 Keene Road sold Dec 10 for $290,000. Built in 1937, it has 3 bedrooms, 2 baths and 1918 square feet of living area.
The home at 2828 Clay Turner Road sold Dec 17 for $308,000. Built in 1997, it has 4 bedrooms, 2 bath and 2174 square feet of living area.
The home at 1110 Mercer Loop sold Dec 16 for $315,000. Built in 1986, it has 3 bedrooms, 2 baths and 1740 square feet of living area.
The home at 2636 Bridle Dr sold Dec 14 for $325,000. Built in 1988, it has 3 bedrooms, 2 baths and 1713 square feet of living area.
The home 3206 Magnolia Garden Dr sold Dec 2 for $366,000. Built in 2011, it has 4 bedrooms, 2.5 baths and 2486 square feet of living area.
The home at 505 W Cherry St sold Dec 29 for $381,500. Built in 1928, it has 5 bedrooms, 2 baths and 2392 square feet of living area.
The home at 2603 Stafford Wood Pl sold Dec 16 for $410,000. Built in 1986, it has 3 bedrooms, 2 baths and 1898 square feet of living area.
The home at 2106 Clubhouse Dr sold Dec 20 for $470,500. Built in 1996, it has 4 bedrooms, 2.5 baths and 2347 square feet of living area.
The home at 3018 Forest Hammock Dr sold Dec 7 for $650,000. Built in 2000, it has 4 bedrooms, 3 baths and 2661 square feet of living area.
The home at 4902 James L Redman Pkwy sold Dec 6 for $800,000. Built in 1920, it has 3 bedrooms, 1.5 baths and 1432 square feet of living area.