Pinellas County one of the hardest-hit housing markets is likely to fade in the coming months. We have had the luxury of climbing sales and high demand from buyers. The flood insurance rate increases and the effects of the government shutdown are being felt but our numbers are still good compared to this same time last year. Treasure Island residents are seeing pullback from ready and able buyers which has increased the number of homes listed for sale.
Another example, South Pasadena Florida has witnessed surprisingly strong home-price inflation over the past 18 to 24 months. This small quiet gulf coast community could also face a gradual slowdown in days on market until there is a better understanding by consumers on the national flood insurance increase.
In September alone Pinellas County single family homes sales were up 20% from the same time last year. This frenzy began in early 2012 when investors relentlessly bought up cheap foreclosed homes that can be rehabbed and flipped to end users or rented out to those who aren’t ready or able to buy. This caused tough competition among the traditional buyer that could not compete with the investor cash offers and they were pushed to pay the higher price of a non-distressed property.
As home prices crept upwards and interest rates fell, traditional buyers that had not been able to make a clear choice between buying or selling entered the market again thus releasing pent-up demand.
The only struggle I see as an issue over the next phase of real estate is that this climbing trend we have all been so excited about may affect the “Old Florida” coastal communities like, St. Pete Beach, Pass-a-Grille, Tierra Verde, Pinellas Point, Shore Acres, Venetian Isles, Snell Isle, Riviera Bay, Treasure Island, Madeira Beach, Redington Beach, Indian Rocks Beach and so many more areas that have homes that were built before 1974 and below the base flood elevation (It is important to contact a property insurance agent to see if you will be affected by this policy change). We will watch as we keep a close look on consumer confidence with the insurance increase taking effect. Here are the Pinellas County September stats for single-family homes provided by The Pinellas Realtor Organization.
- Closed sales in single family homes are up 20% from the same time last year.
- Closed sales in single family residences are up 7.3% over last September
- New listings are up 23.1% for single family residences from same time last year
- Traditional closed sales for single family residences are up 38.4% from last year
- Short Sales for Single family residences are down 28.7% from last year