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A Record Breaking Month In Real Estate
Dated: July 27 2020
A RECORD-BREAKING Month in Real Estate
If you've been reading my weekly email digest, then you already know that the Pinellas County and Gulf Beaches have only one problem with their housing market right now...and that's inventory. Over the past several years we've watched housing prices in the Tampa Bay, FL area steadily climb. While we haven't lost much momentum on price growth, even during the COVID-19 Pandemic, what we are losing is housing inventory.
I've broken down the June 2020 housing stats for Pinellas County (the latest stats available in our market) and out of all the stats in the report, what stands out the most is:
Absorption Rate- 79% in June 2020- This is a RECORD-BREAKING number we have never seen in the Pinellas County stats reports. Basically, what this tells us is that 79 out of every 100 homes listed for sale SOLD last month. To give you more context, an absorption rate of 55% would be extremely high for our housing market. This is often a very accurate indicator of demand in a housing market.
Cash Sales- About 22% of all single-family home sales in June 2020 were cash transactions in Pinellas County and a whopping 48% of townhouse/condo sales were cash transactions. This is important if you’re a buyer searching for a home, because it means 1 in 5 single-family home buyers are using cash and about HALF of all townhouse/condo buyers are too! Make sure your offers are competitive when you’re working on purchasing a home. The best homes often get multiple offers, meaning even cash buyers are paying full price or close to it right now (in the hottest subdivisions, buyers are even going over asking price to lock down the best homes right now).
Home Prices- Speaking of housing prices, the average single-family home in Pinellas County sold for 97% of the original list price, while the median price jumped +9% to $300,000. This is an important number to know because it means as a home buyer, you’ll only have 2 or 3% worth of wiggle room on a home’s price when making an offer in our area. The story is similar for townhouses and condos as well, with the average townhouse/condo selling for 96% of the original list price and the median sale price jumping +18.5% to $205,000 in Pinellas.
Inventory- Well this feels repetitive doesn’t it?! Inventory is at ALL-TIME LOWS in Pinellas County. In June 2020, single-family home inventory dropped -39%, leaving us with only 1.7 months of inventory actively for sale in our housing market (that equals just 1,832 homes listed for sale in the ENTIRE county). While townhouse/condo inventory experienced a less dramatic drop of just -6.5% or 2.9 months of inventory on hand, any decline is still a problem in a market where there are simply not enough homes for sale for our buyers. To put it into perspective, we were worried about inventory when we had just 3 months of active inventory for sale.
So What Does This All Mean?
Basically, if you’re thinking of selling your Pinellas County home, you should be talking to us NOW. Right now is the BEST time to get a top sale price in record time. Period. When we meet with you we’ll also be able to give you specific information about what’s happening in YOUR subdivision and tips that will make your home stand out above the rest. Need more reasons to call us? When you list a home with us, we'll also make a donation to the local registered non-profit of your choice after closing. Supporting our communities is a priority for us, now more than ever.
If you’re a home buyer in our housing market, you need to be prepared to place competitive offers in this fast-moving market. Thankfully, mortgage interest rates are at all-time lows, which is actually offsetting the price increases for many buyers. A home that was $10,000 cheaper last year would have actually cost you more in most cases, since mortgage interest rates were not nearly as low as they are now. Take advantage of this. You not only have to be competitive in this market, you also have to move fast. Get your loan pre-approval and proof of funds in order now. That way when you find “the one” you’ll be prepared to make a solid offer without having to wait and potentially miss out. As a reminder, the majority of people selling their homes right now won’t review an offer to purchase without both a loan pre-approval AND proof of closing funds attached.
To see the full version of the Pinellas County Real Estate Stats CLICK HERE
Andrea is the Managing Partner of The Sandy Hartmann Group. Andrea was born and raised in the Tampa Bay area and is a licensed Realtor with over 15 years of Marketing and Finance experience, holding ....