“Happy New Year.” 2022 is history and in the books. What’s in store for real estate this coming year? One thing for certain the Federal Reserve has a tight pulse on the Fed rates, more likely to increase a couple of more times this year, which in turn will trickle down to the supply of money for lending institutions. The mortgage rates in 2022 started the year off in the low 3’s to peak in the 7’s about six weeks ago. This past week the mortgage rate averaged 6.48 percent.
As we look at the Plant City Housing Date from Dec. 2022, our market area sold 75 homes for the month and 989 for the year. That concluded the year down 9.6 percent from the previous year-end numbers. The housing inventory has increased in months supply from 0.7 to 2.16, still considerably less than the 3-4 months average supply needed for a normal market time period. This will continue to put pressure on ADOM, average days on market, which we finished the year with an ADOM of 23 days compared to 17 for the previous year. 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. Last month was no exception, the average selling price in December was $340,315 bringing the year-end average to $358,749 which accounted for a 22 percent increase over 2021 year-to-date average. Comparing the median prices month-over-month data, December finished with a median sales price of $335,000, which was 2.2 percent less than in November and brought the year-end median price to $339,074, which is still about 21 percent increase over the prior year.
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 a couple more interest hikes in store, 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. 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 boom in 2024.
If you are in the market to buy or sell your home, 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, it may decrease your property tax basis by $50,000.
M Crawford
Crawford Group
Sales Snapshot
The following residential properties were a sample listed as sold on the Greater Tampa Realtors Association MLS in December 2022 for the Plant City Market Area.
The home at 5616 Paul Buchman Hwy sold December 27 for $150,000. Built in 2003, it has 5 bedrooms, 2.5 bath and 2356 square feet of living area.
The home at 2302 Maki Rd, Unit 71 sold December 28 for $175,000. Built in 1987 it has 2 bedrooms, 1.5 bath and 896 square feet of living area.
The home at 1605 Hughes Dr sold December 22 for $250,000. Built in 1975, it has 4 bedrooms, 2 bath and 1220 square feet of living area.
The home at 1860 Greenwood Valley Dr sold December 9 for $260,000. Built in 2014, it has 2 bedrooms, 2.5 bath and 1572 square feet of living area.
The home at 2643 Eagle Greens Dr sold December 12 for $279,900. Built in 2000, it has 2 bedrooms, 2 bath and 1236 square feet of living area.
The home at 2227 Bruton Rd sold December 20 for $300,000. Built in 1988, it has 4 bedrooms, 2 bath and 1782 square feet of living area.
The home at 4313 Platt Rd sold December 2 for $320,000. Built in 1976, it has 5 bedrooms, 3.5 baths and 2260 square feet of living area.
The home at 1809 Sagebrush Rd sold December 22 for $340,000. Built in 1986, it has 4 bedrooms, 2 baths and 2192 square feet of living area.
The home 2870 Sam Allen Rd sold December 23 for $350,000. Built in 1965, it has 4 bedrooms, 2 baths and 1317 square feet of living area.
The home at 3341 San Moise Pl sold December 22 for $365,000. Built in 2015, it has 4 bedrooms, 2.5 baths and 2505 square feet of living area.
The home at 4111 Kipling Ave sold December 1 for $399,900. Built in 1989, it has 3 bedrooms, 2 baths and 2286 square feet of living area.
The home at 1709 Via Palermo St sold December 9 for $415,500. Built in 2015, it has 5 bedrooms, 3.5 baths and 3198 square feet of living area.
The home at 2710 Clubhouse Dr sold December 9 for $500,000. Built in 1993, it has 3 bedrooms, 2 baths and 2270 square feet of living area.
The home at 5102 Five Acre Rd sold December 15 for $535,000. Built in 1985, it has 3 bedrooms, 2.5 baths and 1943 square feet of living area.
The home at 4211 Cork Rd sold December 16 for $932,500. Built in 1959, it has 5 bedrooms, 3 bath and 3779 square feet of living area.