Pinellas County Market Update- August 2008
St. Petersburg, Florida, September 9, 2008

526 single family homes sold during August 2008 in Pinellas County, Florida. This was nearly level with July's 529. The number of sales increased each month through June, then the summer doldrums took over. The number was down only 2.6% from a year ago. Inventory is down slightly from July but is down 5.7% from a year ago. Our supply is down to 16 months, a month less than in august 2007. However - the average price is down 15% from a year ago to $240,500 and the median price is down 20% to $175,900. Both of those vary significantly by bedrooms:

2 or less bedroom home             Median price $130,000           Average price $137,400
3 bedroom home                           Median price $175,900           Average price $211,500
4 or more bedroom home           Median price $315,000           Average price $407,000

The median price of $176,000 for August 2008 is now below the August 2003 median price of $183,000. The current absorption rate is the same as last month at 6.1%.The most popular price range is still $200,000 - $249,999 with 12% of the sales. Only 1.5% of the sales were over $1 Million. Looking at the inventory, 12% of the listings are in the $200,000 - $249,999 range, but 6.56% of our listings are over $1 Million. That means there is a 15 month supply of homes in the $200-249K range, and a 66 month supply of homes over $1 Million, based on August sales. Based on the last 8 months, there is a 15 month supply and a 53 month supply, respectively.

306 condos sold during August in Pinellas County, only a few lower than in July (312) and not much different from August 2007 (311). Inventory is down 2% from last month, and down 15.7% since August 2007. The median sale price of $150,800 is down 3.3% from a year ago but the average sale price of a condo ($244,600) is up 4% from a year ago and up 2.5% from a month ago.

Conclusion: Let's look at this from a longer perspective: In March 2002 the median price of a single family home in Pinellas County was $157,000. It rose to a high point in October 2005, when it reached $276,000, an increase of 76%. It then retreated to a low in May 2008 at $175,000 a drop of 37%. Each month since May has been above that point. Does that mean we're past the bottom? Maybe. Most media reports use the median, because it appears to be less erratic. Looking at the mean, or average home price, it was $187,000 in March of 2002, and reached its peak also in October 2005 at $354,000, an increase of 89%. It then fell back to a low in April 2008 of $236,000, a drop of 33%. Each month since April has been above that. The media headlines like to portray doom and gloom - next month when they get around to reporting what happened in August, I'll be the headline will say,(median) prices have dropped 20% from last year. And that is true. What they probably won't tell you - is that the lowest price point was in April/May and that prices have been up since then. That's also true.

These figures are all taken from reports prepared by the Pinellas Realtor Organization.

the Voice of St Petersburg real estate – Sharon Simms