As the Real Estate market enters into our summer cycle, its a great opportunity to look into the rear view mirror to see what the numbers say about our market. Hot or not? That’s the question I get a lot.
The short answer is that we are in a solid market. We are seeing prices on the rise, but not unsustainable (ala 2005). Lenders are lending and properties are appraising. The rise is in part due to limited inventory of in demand “ready homes” (homes that required limited to no repair and are somewhat to fully upgraded to modern standards). As our economy grows, so does the attraction to move to the Burg.
According to the Pinellas Realtor Organization, “Dollar volume for townhomes/condos was $204.8 million in May 2017, an incredible increase of 27.8% from $160.2 million in May 2016. Dollar Volume for Single Family Homes also had an amazing increase of 35.3% year-over-year, with $452.3 million in 2017 versus $334.4 million in May 2016.”
Compared to 2016, median sales prices (means “in the middle”. So, with regard to List Price, this means exactly half of homes listed are above this price and exactly half are below.) for single family homes are up 14.4% and at $230,000. Time to contract is under 30 days and time to sale is at 70 days. Median price for US homes is $252,800 and a change of 5.82% up from 2016 according to yCharts.com. The Average Sales price rose up nicely 23.4% to $314,364. The Condo market is moving up as well 13.9% average price of $234,382.
It’s good news that the sales prices are below the national average and yet are improving far better year over year. This could be an indicator that our area is going to see continued preference for relocations. More buyers tend to mean fewer “ready” homes and higher prices.
Our seller’s market continues with the month’s supply of homes down 10.7% and condos/townhomes down 15.8%.
What does this mean for a buyer? It means that you will need to be prequalified and even pre-approved to be a “ready” buyer when the right house comes on the market. Cash buyers are preferred by sellers. You may be faced with competition from multiple buyers for the same home, so you need to discuss your offer strategy early in the process.
What does this mean for sellers? When you decide to sell, you will need to be ready to move fast. Many of our homes that are priced right are selling before they even make it on the MLS. Be prepared for multiple offers with unique conditions. Each one with benefits and detractions. If you don’t price your home right (or market it well), it can sit or sit longer than you want – even in this sellers market. while buyers are willing to compete for the right home, they are far more savvy than ever before!
Today is a great day to buy and sell in our beautiful Sunshine City! But you need a Realtor with the market experience, skill to negotiate a winning contract, expert knowledge of the process and requirements to get the deal done, local knowledge and customer service. Peggy Naruns and her Northstar Realty team are the ones to call first!
Your local real estate expert,
Broker Realtor® CRS, GRI, CIPS, ARB