The December 2023 Real Estate Stats For Pinellas County

Dated: January 20 2024

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The December 2023 Real Estate Stats For Pinellas County

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The December 2023 real estate market stats for Pinellas County are here and what a year 2023 was for our area! While we saw a definite slowdown in buyer activity due to higher mortgage rates, home prices for the year still increased, albeit at a smaller rate of growth than we saw during the prior 3 years.

As a reminder, Pinellas County is the 2nd SMALLEST county in Florida, yet is home to some of the state’s most famous and beautiful white sandy beaches. Once a sleepy little county, it became a hot spot during the Pandemic as buyers relocated to places with more of an outdoor lifestyle. Now that it’s been discovered, it’s doubtful that people will forget about this desirable little county on Florida’s West coast.

To find out more about our local real estate market and how the end of the year played out, keep reading below for all the most important highlights, along with our advice for buyer’s and sellers in 2024.

The Single-Family Home Stats for Pinellas County:

The December Single-Family Home Stats Pinellas County FL

Closed Sales declined by -7.4% in December 2023. During the 2nd half of December, we often see a decline in sales as buyers retreat for the holidays. However, this year interest rates were high and home prices had climbed throughout the year, offering buyers little to no respite in terms of home affordability. Cash sales continued to represent 1 out of every 3 home sales, meaning cash was not getting buyers the hefty discounts they hoped for, due to it being a common means of purchase. Overall, home sales dropped by -12.7% in Pinellas County in 2023, compared to 2022.

The Median Home Sale Price was about the same year-over-year, sitting at $436,000 in December 2023 vs. $436,750 in December 2022. Despite slower sales, we did not see any major drops in prices. As for the average home sale price, it increased (again) by +2.9% from $599,778 in December 2022 to $617,416 in December 2023. Overall, the median sale price of a home in Pinellas County increased by +4.4% in 2023, which is a good indication of a stable market (Historically, home prices should be expected to increase by about +4% per year). Meanwhile, the average home sale price increased by +7.3% in 2023.

Sellers Negotiated a Little Less for their homes in December, collecting about 95.6% of the original sale price at closing in December 2023, compared to 94.7% in December 2022. In addition to growing home prices, many sellers remained firm when negotiating, knowing that inventory is still limited despite some growth over the year.

Homes Also Went Under Contract a Little Faster in December 2023 compared to December 2022, with the median home going “pending” in 22 days vs. 25 days the year before. Homes selling the fastest in our market are updated, in move-in ready condition, and in price points below $1M.

Housing Inventory in The Single-Family Home Market Increased by +35% year-over year, which may sound like a lot, but actually only increased the “months supply of inventory” from just 2 months in December 2022 to 2.7 months in December 2023. A balanced market for buyers and sellers should be closer to 5-6 months of inventory. To give more context, in Pinellas County, it’s been well over a decade since we’ve seen inventory hit the 5–6-month mark. The County is mostly “built out,” meaning it’s unlikely we’ll see a jump in new single-family home construction in Pinellas over the next few years as there is simply a limited amount of land to build on in the most desirable areas.

The Condo-Townhouse Stats for December 2023:

The December Condo-Townhouse Stats for Pinellas County FL

Closed Sales declined by -12.8% in December 2023 vs. December 2022. As we mentioned above in the single-family home report, sales were slower than usual in December due to buyer uncertainty with interest rates and the rising cost of housing in Pinellas County. It’s important to note that cash sales represented 1 out of every 2 closed sales last month. Cash is still king in the condo-townhouse market, making transactions simpler for buyers and sellers who want a quick, smooth closing. Overall, closed sales were down by -9.3% in 2023.

The Median Sale Price of a condo-townhouse in Pinellas County dropped by -3.2% year over year, from $310,000 in December 2022 to $300,000 in December 2023. However, the average sale price saw a double-digit increase in December, jumping by +25.6% year-over-year. You may be wondering what the difference is, basically this means more higher-priced condos and townhouses sold in December 2023 compared to the same time the year before. This is to be expected as demand for newer, high end buildings increases to avoid Milestone Inspections and hefty insurance increases/assessments in older, more affordable buildings. Overall, the median sale price increased by +5.3% in 2023 and the average sale price increased by +16%. As the market balances, historically, price appreciation has averaged +4% year over year.

Sellers Negotiated a Little More Last Month, with the median condo-townhouse selling for 93.9% of the original list price vs. 96.2% in December 2022. As inventory grows in the condo-townhouse market, we may see this trend continue into 2024 unless mortgage interest rates drop enough in coming months to recharge buyer demand.

Condos-Townhouses Took Longer to go Under Contract last month, with the median property taking 38 days to go pending vs. 27 days in December 2022. Properties selling the fastest in this market are generally updated, in move-in ready condition, and have already completed the Milestone Inspections (if required) and have no major assessments coming up. For sellers who own properties in older buildings that have not met these requirements, or that have recently increased monthly dues dramatically, it will take far longer to sell unless the listing price is highly competitive.

Inventory in the Condo-Townhouse Market Jumped by 79.2% compared to the same time the year before. In December 2022, there was just 2.4 months of inventory available to buyers. As of last month, there was 4.3 months of inventory available, meaning the condo-townhouse market is very close to being balanced between buyers and sellers if it hits that 5-6 month inventory mark in 2024. This means we’ll see more price negotiations, seller concessions, and possibly longer days on market for new listings. However, if interest rates drop below 6% in 2024, we could potentially see buyer demand increase dramatically, reversing most of the above stats. Only time will tell as the Fed makes more interest rate decisions in upcoming months.

So Now What?

Many buyers and sellers are wondering what 2024 will bring in terms of the Pinellas County real estate market. Recently, the Tampa Bay area was predicted to be one of the most active and “hottest” markets of 2024. If interest rates continue to decline, buyer interest could definitely increase, creating another strong seller’s market. Regardless of interest rates, sellers should remember that homes selling the fastest and with the least amount of price negotiation are not only priced correctly from day 1 of the listing, but also in impeccable condition. As home prices grow, buyers will have less money after closing to make updates and repairs. Many continue to hunt for homes that are already updated and move-in ready.

Not in an updated home and want to get top-dollar for it? The 5 best things a seller can do to create buyer demand include:

  • Fresh interior/exterior paint in a neutral color

  • A decluttered interior (really, put everything you can live without away or in storge, you’re moving anyway)

  • A deep cleaning to remove any and all dust/debris so your home literally SPARKLES

  • Landscaping- add mulch, trim trees away from the roof, trim hedges, plant some colorful flowers and keep the lawn green and mowed

  • Get a 4-point inspection in advance and fix any problems that could prevent your home from qualifying for insurance

For buyers, if interest rates do in fact decline, there will be much more competition in coming months. Our advice is to find the home you can temporarily afford higher rate payments on and BUY. IT. NOW. Buyers that need a mortgage to purchase a home may be left out in the cold again if we see a pick up in demand in the 2024 real estate market. During the Pandemic so many buyers using  loans to make their purchases had to pay a premium or waive contingencies to entice sellers to take their offers, over the many cash ones. Don’t get stuck in that position in 2024. Right now, many sellers are still accepting buyer contingencies, are willing to make repairs, and are motivated to sell. There are also lenders offering discounted refinancing later on if you buy a home with them in today’s market. Take advantage of ALL of that.

For more information on the Pinellas County real estate market, you can always reach out to our team by messaging us HERE or calling/texting us at (727) 400-3315. We’d love to help you with all your real estate goals now or in the future. As a reminder, our team also works in all price points!

The Sandy Hartmann Real Estate Group

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Andrea Hartmann

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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