Data pulled from GTAR MLS as of 7/5/24 for the Plant City market area.
Mortgage Data from Freddiemac.com
What’s up with the Buyers and Sellers in today’s marketplace?
There is a vast difference in opinions of property valuations. Buyers seem to think we are back in 2006-2009, while the Sellers are still holding unto the 2021-2022 market conditions. Neither are in the correct mind sense.
Back in the 2006-09 period, we had a major banking and mortgage melt down, property valuations were falling relentlessly, we were chasing a market down, which didn’t bottom out until mid-2011. The average days on market were typically around 5-6 months and sellers were reluctantly taking any offers they could get on their homes because delaying acceptance might cost them thousands of dollars.
Sellers, on the other hand, seem to think we are still in the 2021-2022 market conditions, pricing was like throwing a dart on an upward escalator, where you felt your home has added value because you kept the same pink and blue tile bathroom your grandmother had … I jest but sellers seem to think anything or any maintenance item should return a bigger value to their selling valuation.
Both parties are bombarded with information from the media, mostly hyped, one-sided, and some of it untrue, which forms their belief system and sometimes gives rise to an unvalidated opinion of their property’s value.
Our current market is quite different from each of those periods. For one, pricing correctly to the current market valuations is critical, lending rates are higher now in which the buyers correlate discount pricing as in the early period, but when sellers are overly ambitious in their pricing, they tend to miss the mark and their home continues to sit on the market without offers. This increases the days on market for the subject property and tends to fuel the buyer’s desire to make more discounted offers. The ambitious seller, when we reposition their listing price, tends to forget the agent’s original suggested valuation and truly believes they have given up that value to the potential buyer when an offer comes in.
Supply-demand economics models will always prevail, an executed contract only happens when both parties perceived value equals each other. The truth is, the real estate transaction will become even more important to have representation by a qualified Realtor®, experienced in the ever-changing market. Please LISTEN to their advice.
As we look at the Plant City housing data, June 2024, our market area had 118 homes sell, with new construction still contributing over 50% of the units sold. We had another 184 under contract and 261 available for sale. We are carrying about 2.22 month’s supply housing inventory and our average days on market is running about 40 days. At this level, we are still under a slight advantage to the sellers if they price accordingly to their market valuation.
We just finished half of the year with 705 units sold in Plant City with the first half sales price average of $370,062, a slight decline from the first half-2023, 1.6% down. The units sold were up 42%. When we look at the data from Q1 to Q2 of this year, the average sold price has increased 3%, which indicates that buyers have come to accept the increased lending rates.
In June 2024, the average sold price was $377,281 or an average price per SF of $195.18 compared to last month, these data points were flat, only a slight increase of less than 1%. I believe the market prices will remain stable until we see the FED start cutting the rates, then buyers will gain more purchasing ability and the demand for available houses will strengthen and home prices will gain more momentum in price increases.
The prevailing average mortgage rates from Freddie Mac for the 30-year-term loans have taken a slight decline from May’s average of 7.06% to June’s average of 6.92%. Now, the FED’s meeting commentators are suggesting a possible first rate cut in September. This will be a welcomed relief for those buyers having to wait for their purchasing power to increase to find a suitable home but at the same time will likely see home prices increasing to rise with increased demand for available homes.
So, what about the coming months? People will be buying and selling homes, prices are slightly increasing. We are progressing into the summer buying season, typically we have the strongest buying demand during this time, with inventories low and the current lending rates the new norm. The supply-demand models will dictate the new market levels.
As always, I cannot express enough this importance, 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, rules and statutes are changing, going it alone without proper experienced representation will likely have you leaving money on the table. Get the real scoop on our market. 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 June 2024 for the Plant City Market Area.
The home at 5306 S Farkas Rd sold June 21 for $148,700. Built in 1928, it has 3 bedrooms, 1 bath and 1120 square feet of living area.
The home at 906 N Merrin St sold June 21 for $240,000. Built in 1950 it has 2 bedrooms, 1 bath and 1216 square feet of living area.
The home at 104 Capri Ct S sold June 25 for $290,000. Built in 1980 it has 3 bedrooms, 2 bath and 1541 square feet of living area.
The home at 418 Pevetty Dr sold June 3 for $300,000. Built in 1956, it has 3 bedrooms, 1 bath and 1138 square feet of living area.
The home at 2205 N Warnell St sold June 28 for $330,000. Built in 1986, it has 3 bedrooms, 2 bath and 1645 square feet of living area.
The home at 3719 Radiant Mountain Dr sold June 14 for $340,000. Built in 2024, it has 4 bedrooms, 2 bath and 1607 square feet of living area.
The home at 2412 Victorious Falls Ave sold June 28 for $353,845. Built in 2024, it has 4 bedrooms, 2.5 bath and 1870 square feet of living area.
The home at 6412 Holloman Brook Ct sold June 12 for $370,000. Built in 1993, it has 3 bedrooms, 2 bath and 1620 square feet of living area.
The home 3843 Sunny Springs St sold June 27 for $389,990. Built in 2024, it has 4 bedrooms, 2.5 bath and 2045 square feet of living area.
The home at 3161 Thonotosassa Rd sold June 7 for $403,000. Built in 1966, it has 4 bedrooms, 2 bath and 1404 square feet of living area.
The home at 2815 Kebs Ln sold June 7 for $439,000. Built in 1993, it has 3 bedrooms, 2 bath and 2002 square feet of living area.
The home at 4119 Barret Ave sold June 7 for $492,500. Built in 1989, it has 4 bedrooms, 3.5 bath and 2752 square feet of living area.
The home at 2209 Wedgewood Ct sold June 26 for $520,000. Built in 1984, it has 4 bedrooms, 2 bath and 2567 square feet of living area.
The home at 4110 Nesmith Rd sold June 27 for $749,500. Built in 2018, it has 3 bedrooms, 2 bath and 2293 square feet of living area.
The home at 3680 Swindell Rd sold June 7 for $1,200,000. Built in 1984, it has 3 bedrooms, 2 bath and 2644 square feet of living area.
The home at 8583 Branding Iron Trl sold June 5 for $1,800,000. Built in 2022, it has 4 bedrooms, 3.5 bath and 3226 square feet of living area.