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What did the Real Estate Market do in March 2018?

Real Estate is definitely a driving force in the US economy.  It is the industry where many self-millionaires have been created, the biggest investment most American families do during their lifetime.  When the Real Estate industry is doing well, the economy is doing well or it is getting better.  If the opposite is happening, Americans translate that into a bad economy, uncertainty towards the future, fear of what it is coming.  Most Americans rejoice when the home prices are going up, homes sell quickly, home sellers receive multiple offers when selling their homes.

We just entered the fourth month of 2018, isn’t that amazing?  we are just two months away from completing half of this year and it feels like if we celebrated Christmas yesterday.  I wrote an article on my blog regards my predictions about what the Real Estate market was going to do in 2018.  In my article “Why you should sell your home in 2018”   I predicted that in 2018 we were going to reach the top of the market and prices could start declining.  I supported my statement with this arguments, the Real Estate Cycle.

Through the years, the Real Estate Cycle has lasted 10 years,  In 2008 we reached the last peak before the Real Estate market crashed and we entered the housing crisis, where many families throughout the United Estates lost their homes through foreclosure.

The question here is, is the Real Estate Cycle an argument strong enough to believe that this may be the last year we see such housing prices before those start declining?  One week ago I was speaking with  Dario Jimenez, Loan Officer from Union Home Mortgage.  He was telling me that the current interest rates are between 4.75% and 5.25%.  With interest rates at this level and the housing prices being so high, buyers are not being able to qualify for the home they want to buy.  Many of these buyers are just buying homes that are not what they want, but what they can afford.  The rest are just on standby, waiting to see if the sellers start lowering their prices for them to be able to buy their dream home.

Now, are prices starting to decline right now?  Not really, sellers are still getting what they want for their homes.  Most homes sell during the first 30 days after they have been listed and the number of sold homes increased compared to February of this year.  The numbers presented here represent the Real Estate activity during March in Pinellas County, Florida.  This data was taken from the Multiple Listing Service.

Total Homes Sold  ……………………………………………….      1,019

Total Homes on the Market  …………………………………       2,256

Total Homes Under Contract  ………………………………        1,530

Total Number of Expired Listings  ……………………….             38

Total Homes Withdrawn  ……………………………………           100

 

No. of Homes Sold

The total number of homes sold in March was 1,019.  This represents an increment of 303 sold homes compared to February, where a total of 716 homes were sold.  These are the price ranges where more sales took place.

    Price Range                                             Sold Listings

$140,000-$159,999 ………………………………      50

$160,000-$179,999 ………………………………      76

$180,000-$199,999 ……………………………..      88

$200,000-$249,999 ……………………………      176

$250,000-$299,999  …………………………..       136

$300,000-$399,999  …………………………..       173

$400,000 – $499,999 …………………………..       86

$500,000-$599,999  ……………………………       44

$600,000-$699,999  ……………………………      27

$700,000-$799,999  …………………………….     14

 

The numbers show that most homes sell in the price range between $200,000 and $399,000.

 

Days on the Market                     Units Sold

0-30     ……………………………………….    394

31-60    ………………………………………     113

61-90    ………………………………………      85

91-120  ………………………………………      36

120-150 …………………………………….       22

151-180  ……………………………………       25

181-210    ………………………………….       10

211 & over   ……………………………….       31

 

The numbers show that most homes sell during the first 30 days they are on the market.  In February, the number of homes sold during the first 30 days was 589.  This means that in March, the number of homes sold during the first 30 days on the market decrease by 195 homes compared to February.  What does this mean?  I cannot conclude anything just based on a two-month data.  The upcoming months will tell us what the buyers are doing and how the external factors, like interest rates, are affecting their purchase decisions.  For what I can see, the market is still strong, buyers are eager to buy and this is the best time for homeowners to sell their homes.

 

#realestatetampa, #realestateclearwater, #realestatestpetersburg, #homessellingnearme

 

 

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