Pinellas County Market Update – May 2008
St. Petersburg, FL, June 7, 2008

From “the streets” of St. Petersburg and the surrounding area, there continues to be increased activity in the real estate market – our Simms Team continues to have more showings, more prospects, more offers and best of all, more closings. We’re having increased activity in buyers for condos on the beach, and waterfront home sales are picking up. Downtown condo sales are still slow, with many developer units on the market and the national press preaching “Doom and Gloom”. Obviously national statistics don’t show that prices and activity in some buildings and neighborhoods is up – that’s where you benefit from a local Realtor®.

The activity boards at the RE/MAX Metro office in downtown St Petersburg (Florida)  appeared to have as many contracts as new listings – a definite improvement from the winter months. Prices continue to slide, due to foreclosures and short sales, and appraisals that consider those comparables rather than exceptions.

According to the Pinellas Realtor Organization (PRO), the number of single family home sales has now risen for the fourth consecutive month, to numbers we haven’t seen since June of 2007 and the number of homes on the market has decreased for the third month in a row. That’s still a 15 month supply of homes, though, not counting the hidden inventory.

The average price of s single family home, $301,300 is 4.3% higher than a year ago and a full 24% higher than in January of this year. The average price has risen every month this year except in April. Being a peninsula with no room to expand, we have many older and smaller homes that lower the average price. Based on May 2008 sales, the average sale price of a home in Pinellas County with 4 or more bedrooms, was $631,400. The median price (as many homes below that number as above that number), however, was $175,000 – only few dollars below the average 5 years ago in 2003, which was $178,000.

PRO shows the number of condo sales is up for the second month in a row, and like the single family homes, a rate comparable to last June. Inventory is decreasing for the fourth consecutive month, but we still have a 21 month supply of condos in the MLS, which doesn’t account for many developer units. The average condo price is down 5.8% from a year ago and down 18% from January. The condo statistics are more skewed than home statistics since many developer units aren’t included and since the completion of a luxury building and subsequent closings can jolt the monthly statistics, as happened in January with 400 Beach closing sales. The median condo price is actually about the same as both July 2007 and August 2006. The highest median price was in January 2007.

Investors like Warren Buffett are contrarians – they like to sell when others are buying and buy when others are selling. Prices and interest are still low. For most of you, though, it’s really about a home base and a lifestyle – or perhaps a vacation home in Florida. Buy at today’s prices and enjoy retirement in Florida later.
                                                   …the Voice of St Petersburg real estate – Sharon Simms