Absorption rates in May were slightly down for single family homes, from 6.7% in April to 6.6% in May. We now have 9,102 homes on the market in Pinellas County, keeping steady at a 15 month supply, compared to just under a 2 month supply in May of 2005. The absorption rate for condos edged up in May to 4.2% 3.8% in April. There are 9,066 condos and townhomes on the market, slightly less than the 9,280 in April. There were 378 closed sales in May, compared to 748 in May of 2005.

Both the median and the mean prices have declined for both single family homes and for condos. For anyone shopping for a new home across the bridge, builder incentives continue to abound: college tuition, new car, vacation, furniture, upgrades, property tax and/or insurance payments – all accompanying prices much lower than a year ago. Several of our clients who are trading waterfront living for a new home near a golf course have had excellent buys. We keep track of the latest builder incentives for both homes and condos, so check with us before you shop.

The Pinellas Realtor Organization reports the following:

The condo market is affected by new buildings being completed that were started two years ago – in addition to unsold inventory, some buyers are defaulting and forfeiting their deposit rather than face the decline in value and increase in expenses. The inventory also includes some pre-construction buildings. The location, amenities and price of new condos is critical – those that offer value are selling and going forward; those that don’t offer the right balance of price to location and amenities are lingering or calling it quits and refunding deposits. Let us help you in determining value.