The Pinellas County Realtor's Organization (PRO) has just released complete statistics for January of this year. In his cover lette...
The Pinellas County Realtor's Organization (PRO) has just released complete statistics for January of this year. In his cover letter to PRO members, President David Bennett noted that the total dollar volume for the condo/townhome segment (as opposed to single family homes) increased an
"astounding" 73% from January of last year.
"astounding" 73% from January of last year.
The median price for condos and townhomes closed in January of this year hit $135,000 up 8.1% from January 2016. The average sales price increased at a much greater pace going from $180,662 in January 2016 to $234,800 in January 2017. This figure probably reflects the substantial increase in the value of newer luxury condominiums and townhomes and those being built in highly desirable places like downtown and NE St. Petersburg. The report also indicated an increase in the number of cash sales. Just under 30% of the condo/town home sales were paid in full rather than with a mortgage. Foreclosures sales were way down by 55% from January 2016. The great bargains that some found in foreclosures is now but a fleeting memory from the very early part of this decade.
There is an old saying that "numbers don't lie". These stats provide a factual basis for my increasing sense last Fall as I helped clients search for retirement condos that prices were rising rapidly almost equal to the substantial increases in single family home values. Moreover, there was increasing competitive bidding for particularly desirable units in favored locations. I am going to have to go back and update the prices listed in my entries last year for various communities.
So long as the economy remains reasonably good, I only see this trend of higher prices continuing. First, the numbers show that at the end of January 2017 there was only 3.5 months of available inventory, down almost 11% from January 2016. Most real estate experts believe that 5.5 months of available inventory is a good benchmark for a "balanced" market that favors neither buyers or sellers.
Not only is supply of existing condos and town homes for sale decreasing locally, but there are very few being built. Keep in mind that southern Pinellas County is pretty much built out. Demand, on the other hand, should only increase as retiring baby boomers seek to downsize and/or move to a warmer clime. Yes, there may well be significant interest rate increases but mortgage rates tend not to impact retirees as much. It doesn't take a doctorate in economics to realize that increasing demand coupled with lessened supply should result in continuing price increases over the next few years.
Not only is supply of existing condos and town homes for sale decreasing locally, but there are very few being built. Keep in mind that southern Pinellas County is pretty much built out. Demand, on the other hand, should only increase as retiring baby boomers seek to downsize and/or move to a warmer clime. Yes, there may well be significant interest rate increases but mortgage rates tend not to impact retirees as much. It doesn't take a doctorate in economics to realize that increasing demand coupled with lessened supply should result in continuing price increases over the next few years.
