Apprasial Notes

Market Analysis - Hillsborough County

This is a review of MLS sales in Hillsborough County. It shows the average price, average reported GLA above grade, the average price per square foot and the average days on market for : active sales, under agreement sales, sales in the last six months and sales in the prior six month. I prefer looking and six month market periods because this lessens the effect of extreme weather and holiday periods that has traditionally impacted sales. Also, I divided the market into price segments in order to look at the spectrum of available price ranges.

Sales volume has increased in the last six months compared to the prior six months the four lower price segments. Higher end property sales appear to have been very slow in the prior six months but have somewhat rebounded in the last six months. Sales volume under $500,000 increased dramatically.

The $100K - $250K and the 250K to $500K segment was the most stable in terms of price over the two periods and had the highest volume of sales and listings. Based on sales and under agreements over the last twelve months the following absorption rates were estimated for the active listings: $100k to $250k – 6 to 7 months; $250k-500k – 9 to 10 months; $500k to $750k – 15 to 16 months; $750k to $1M – 14 to 15 months; $1m+ - 16 months. Unfortunately, the world wide economic crisis seems to be coming just when the local real estate market appeared to be improving. The above figures must be submitted with the caveat that the recent losses in the stock market have undoubtedly put a hold on many people’s plans to enter the real estate market. The winter has been very slow over the past several years even when property values were still increasing.

Average sale price and price per square foot was overall very stable in all 5 price segments. There was a slight drop in price per square foot in the $250K to $500K and $750K to $1M segments. The high end segment showed the most decrease in value. Active listings appear to be realistically priced. All are near or at the level of the average sales price over the last six months in each category with the exception of the high end sales.

Average property size has remained stable in bottom 3 segments. Unit size rose significantly in the $500K to $1M segment but average sale price per square foot increased. Unit size dropped slightly in the $1+ category and price per square foot fell significantly. Marketing time dropped significantly in the bottom three categories and rose in the high end category.