For at least six years after Florida's foreclosure crisis of 2008-2010, the prices for single family homes revived locally much quicke...
For at least six years after Florida's foreclosure crisis of 2008-2010, the prices for single family homes revived locally much quicker than for condominiums. That shifted in 2016 when condo and town home prices in and around St. Petersburg also began to rise significantly. Last fall I predicted in this blog that selling prices for existing Pinellas County condos and town homes would continue to rise at rates much closer to the rate of increase for single family homes.
I didn't anticipate that during most of 2017, the percentage increase in local condo and town home sales would surpass those of single family homes. The final statistics for September in the latest issue of the Pinellas Realtors Organization Monthly showed this trend continuing. Closed regular sales of town homes and condominiums were 3.1% ahead with the median sales price up 10.7 % since September 2016. This compares to a 20% drop in sales of single family homes with a 9.6% year over year median price increase for the same period. The available inventory for both existing homes and condos was down about 10% under a year ago.
Keep in mind that September 2017 was the month when Hurricane Irma occupied much of our collective attention! The St Petersburg title company we normally couldn't conduct closings for a week as it was without electric power.
There are three continuing macro trends that should continue to drive these increases. First, St Petersburg has gained wider recognition nationally as a highly desirable place to live. This has encouraged the market for all kinds of housing locally and attracted many investors in residential investment property. Second, single family home price increases has put ownership out of reach for many. Third, the mass of the large, baby boom generation is retiring. Like earlier generations, many from the Northeast and Midwest have discovered that St. Pete is an ideal retirement locale, both for "snow bird" and year round living. Often they seek to downsize and also want to live where exterior maintenance is not a worry. That brings us to the fourth factor driving demand; that is diminished supply. There are very few modestly priced new condominium or town home communities in and around St. Petersburg. That's why both demand and prices will likely continue to rise in existing condominium or town home communities.
I didn't anticipate that during most of 2017, the percentage increase in local condo and town home sales would surpass those of single family homes. The final statistics for September in the latest issue of the Pinellas Realtors Organization Monthly showed this trend continuing. Closed regular sales of town homes and condominiums were 3.1% ahead with the median sales price up 10.7 % since September 2016. This compares to a 20% drop in sales of single family homes with a 9.6% year over year median price increase for the same period. The available inventory for both existing homes and condos was down about 10% under a year ago.
Keep in mind that September 2017 was the month when Hurricane Irma occupied much of our collective attention! The St Petersburg title company we normally couldn't conduct closings for a week as it was without electric power.
There are three continuing macro trends that should continue to drive these increases. First, St Petersburg has gained wider recognition nationally as a highly desirable place to live. This has encouraged the market for all kinds of housing locally and attracted many investors in residential investment property. Second, single family home price increases has put ownership out of reach for many. Third, the mass of the large, baby boom generation is retiring. Like earlier generations, many from the Northeast and Midwest have discovered that St. Pete is an ideal retirement locale, both for "snow bird" and year round living. Often they seek to downsize and also want to live where exterior maintenance is not a worry. That brings us to the fourth factor driving demand; that is diminished supply. There are very few modestly priced new condominium or town home communities in and around St. Petersburg. That's why both demand and prices will likely continue to rise in existing condominium or town home communities.
