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Oldsmar Real Estate Update

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The Oldsmar real estate market is showing signs of recovery.  This Oldsmar real estate update will hit the highlights of the last 30 days of real estate activity for single family homes in Oldsmar.

There are at the moment, 75 single family homes for sale in Oldsmar, ranging in list price from a house at $84,900 that has 284 days on market to a high list price of $1,199,900 for a house that has 318 days on market.  The average list price for a single family home in Oldsmar is $388,842 and an average days on market of 160.

There are currently 60 houses under contract in Oldsmar.  And in the last 30 days, the Oldsmar real estate market has seen 20 houses sell.  The average sold price was $242,680 with an average of 78 days on market.

In the previous 30 days, there were 75 houses for sale and 22 houses sold.  This is a good indication that the Oldsmar real estate market has stabilized and at the least, prices are no longer plummeting.  

Check out the latest listings for Oldsmar real estate, just to satisfy yourself about what is now available.

 

Impact of Interest Rate on Buying Power

by Doug & Gwen Campbell at Sun Bay Associates

Now that the real estate market in the Tampa Bay area has hit bottom, almost everywhere, prices are now moving upwards.  As an example, if yesterday a buyer was looking at a house for $200,000 with a 3.5% mortgage and just qualifies, that is great.  Now, let's assume that interest rates jump by a full 1% and nothing else has changed for the buyer.  This is mostly for demonstration purposes, since interest rates don't normally jump that fast.  Now the buyer has 10% less buying power, so they can now qualify for a mortgage of only $180,000, which is 10% less.  This is because the interest and principle payments would be about the same total dollars, just slightly redistributed.  

Now, a seller has a house worth $200,000 and wants to move up to a house worth $250,000.  If the value goes up by 5%, his house is now worth $210,000.  At the same time, because a rising tide floats all boats, the $250,000 house he wanted to buy is now worth $262,500. Thus, by waiting for his house to go up by $10,000, the house he wants to move up to has gone up $12,500, costing him $2,500 for waiting.

Rising interest rates on mortgages hurt the purchasing power of the buyer, and in turn, lowers the pool of buyers for a given house.  This ultimately can harm the seller because he waited to put his house on the market while waiting for prices to increase.  This also makes the move up house he wanted harder to qualify for.

Of course, it is possible prices will go up faster than interest rates, however this is not very likely.  In short, if you  want to sell your house and move up, do it today.  Interest rates are not going to stay at the current record lows forever.  You are welcome to visit our website and scan our Sun Bay Associates real estate newsletter to follow the real estate market trends.

For now, Happy New Year!!

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Photo of Gwen and  Doug Campbell - Sun Bay Realty Group Real Estate
Gwen and Doug Campbell - Sun Bay Realty Group
at Keller Williams Realty
30522 US Hwy 19N, Suite 107 S
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908