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The October 2023 Pinellas County Real Estate Stats
Dated: November 27 2023
The October 2023 Real Estate Stats for Pinellas County
With the first month of the 3rd quarter in 2023 complete, the Pinellas County real estate market remains strong in many ways, albeit much slower moving than before. We’re digging into all the most important highlights from last month below and giving advice to buyers and sellers when it comes to what they should be doing now in our market. Keep reading below to find out everything you need to know about the latest Pinellas County real estate stats…
The October 2023 Single-Family Home Stats:
Closed Sales dropped by -15.1% last month, which is equivalent to 134 less closed sales than in October 2022. High mortgage interest rates, combined with continually low inventory are absolutely the main factors contributing to this decline. As buyers grapple with higher mortgage payments and bringing more cash to closing to buy down rates, updated and “move-in” ready homes that require no further investment after closing are the most sought-after properties in today’s market. There are many less showings on today’s listings, but when the right buyer walks in, you want your home to be the most memorable one they preview in a sea of other listings.
Cash is Still King, with1 out of every 3 closed single-family home sales in Pinellas County is paid for in cash. Despite slowing sales, the rate of cash buyers (about 37% of transactions) has not declined.
The Median Sale Price of a single-family home grew +5.7% year-over-year, increasing to $465k in October 2023 compared to $440k in October 2022. This means buyers are paid about $25,000 more for a home this year vs. last year. With limited inventory, home prices continue to steadily grow despite slowing sales. Even in a high interest rate market, buyers are still looking for homes and paying top dollar for the right ones. *The average sale price also grew by +3.2%, from $578,105 in October 2022 to $596,452 in October 2023.
Sellers Negotiated on the Sale Price a Little Less Last Month, with the median seller collecting 96.9% of the original listing price vs. 95.9% in October 2022. Even with a cash purchase, sellers were not willing to take drastic price cuts in Pinellas County to get a deal done. Most would only negotiate 2-3% off the sale price to get their home under contract last month.
Homes Sold a Little Faster Last Month, with the median time to contract decreasing to 17 days in October 2023 from 23 days in October 2022. (A decrease of -26.1%) When a great home hits the market, it may not sell in 24 hours like it did 2 or 3 years ago, but it will likely sell in just over 2 weeks time and collect top dollar. While this is true for many homes in the $600k or less price range, it’s important to note that homes priced over $1 million (aka “the luxury market”) had a median time to contract of almost double that amount, sitting at 37 days.
Single-Family Home Inventory increased slightly last month, climbing to 2.6 months of available inventory in October 2023 compared to 2.1 months of inventory in October 2022. Any increase in housing inventory is always good news for buyers in our market, as we’ve had inventory shortages for several years now.
The October 2023 Condo/Townhouse Stats:
Closed Sales increased by +10% last month in the condo/townhouse market, basically doing the exact opposite of the single-family home market. The top performing price points were in the $200k-$300k range, possibly indicating that buyers priced out of the single-family home market have opted for condos and townhouses at lower price points to make home ownership a reality.
Cash Transactions accounted for 59% of all closed sales in October 2023, slightly higher than the 50% rate we often see in this market (and in October 2022, a year prior). This means about 1 out of every 2 closed transactions closed for cash last month.
The Median Sale Price of a condo/townhouse in Pinellas County increased by a slight +2.5% last month, growing from $295,000 in October 2022 to $302,500 in October 2023. The average sale price also grew, but by a MUCH more massive amount, climbing from $399,575 to $552,722. We attribute this jump in average sale price to the +237% increase in $1 million+ closed sales that occurred in October 2023 compared to October 2022, which drives up the average sale price significantly. In October 2022, there were just 23 closed condo/townhouse sales over $1M. In October 2023, there were 91 closed sales in the luxury price point.
Sellers Negotiated just 3.3% off the median sale price of a condo/townhouse in October 2023, which was about the same as October 2022 (96.7% vs 96.8% in 2022). With all factors considered, the condo/townhouse market remains a seller’s market with steady growth in our area. Even with a large number of cash sales, sellers continued to collect top dollar for their properties in our local market.
Condos/Townhouses Went Under Contract Just a Little Bit Slower Last Month, with the median property taking 21 days to go under contract in October 2023 compared to 20 days in October 2022.
Condo/Townhouse Inventory has steadily been increasing in 2023, with the months supply of active inventory growing by 90% from 2 months in October 2022 to 3.8 months of available inventory in October 2023. While this may seem very high, 3.8 months of inventory still falls short of the 5-6 months of inventory the market needs to be considered balanced.
Buyers are being more strategic than ever when it comes to buying a home in today’s market, thanks to higher interest rates, increasing home prices, and limited housing inventory. Homes selling the fastest have no deferred maintenance (think roofs, electrical, plumbing, and HVAC systems) and are often updated inside & out. With buyers using a large amount of cash to buy down mortgage rates and to cover increased closing costs, homes that need lots of updating and repairs may be out of their reach cost wise.
While it’s true that sellers can offer repairs and credits after a home is under contract, it will take much longer for a home to sell if it’s in need of updating and maintenance when listed. We always recommend handling maintenance items before listing your home for sale, in addition to cosmetic updates such as fresh paint, landscaping, home staging and more. Now is the time for sellers to make sure their homes STAND OUT among the rest if they want it to sell.
For buyers, our recommendation remains similar to last month. While mortgage rates are high there will be FAR LESS buyer competition, giving buyers the best chance at getting the home they like. Buyers who waited until this year to buy a home (due to rising rates that occurred last year) are now paying about $25,000 more for a single-family home than they would have last year. Unless a windfall of housing inventory hits the market suddenly (not predicted to happen, by the way), prices won’t be dropping any time soon. The saying “marry the house, date in the interest rate,” comes to mind, as buyers will be in the tough position of multiple offers and sky rocketing prices once again if interest rates drop next year. The savvy buyer should buy now and refinance that dream home when rates inevitably drop.
For more information on the Pinellas County real estate market, contact us at (727) 398-2310 or message us HERE. We’d love to help you successfully buy or sell your next home, whether it be now or in the future!
Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....
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