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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 |
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