January 2020 Monthly Real Estate Update

January 7, 2020 by The727Team

Crescent Lake

What’s included in every real estate update?

Interesting Real Estate Stats

Recommended Articles Of The Month And Why

Real Estate Local News

Interesting Real Estate Stat For This Edition:

Every month we’ll pull an interesting stat for you directly from our MLS for Pinellas County.

Welcome to 2020!

The Florida real estate market is ending the decade on a much different note than where it began. In 2010 the Florida real estate landscape was experiencing plunging property values and distressed properties were at an all time high after a record number of homeowners were being foreclosed on. This was due to a lack of transparency in lending standards and predatory mortgage practices. 

At the beginning of 2020 we are in a better place for some people, but not all. Lending standards have been tightened, interest rates are extremely low, however inventory is somewhat tight in the 100k-400k price range. Quality of life has definitely gone up and prices have matched accordingly.

As you can see on the graph below, the median days to sell is between about 20-25 days in the 100k-400k range.  When homes in this range are priced correctly, they will sell a lot quicker. These figures are not nearly as dramatic as some of the hottest real estate markets in the US however it shows that inventory is still moving at a decently rapid pace.

With that said, some of the very best listings will go within the first day or two when priced correctly. You will still need to be diligent during your home search and schedule a showing with your agent for anything that looks promising. One service we offer to our out of town clients is a remote showing via Facetime or video. We will go tour the house and give you our opinion if you’re considering making an offer sight unseen.

New Construction

New construction is HOT!!! Especially in Downtown St. Pete. In up and coming neighborhoods, we’re seeing developers tear down homes and build expensive new construction homes before property values have caught up. This is because they recognize the long term appreciating value in Pinellas County. 

Palmetto Park for example is a neighborhood that isn’t quite established but is only a mile outside of Downtown and just south of the established and popular Historic Kenwood. It is also walking distance to The Grand Central and Warehouse Arts Districts.

This area has a ton of potential and the general public is starting to notice. Some new construction homes in the 450k-650k price point used to sit on the market for more than a year, waiting for pioneer home buyers to recognize the value in the area. Now the dominos are falling and the new construction homes that have sold in this area are bringing up overall value in this once dilapidated neighborhood. 

skyline DTSP

Grand Central District near Palmetto Park

Unlike portions of Historic Kenwood, this area does not have historical limitations so builders are free to develop properties with more modern home styles. There are also new construction homes here that have legal rental units in the back which you can rent out to supplement your mortgage payment. Usually you only see this legal multi-family zoning in historical homes from the 1920’s so this is a great opportunity for those who want the low maintenance lifestyle of owning new construction while also benefiting from our strong rental market. 

Downtown is a little bit of a different story. Everyone wants to live Downtown and many new construction homes are getting gobbled up during presale reservations then gaining massive equity and reselling at a premium. Look at these examples from the ONE Tower, the tallest building in Pinellas County completed in 2018. The people who bought these condos at the initial sale turned around and sold them at a significant gain just a year or so later. 

ONE Tower when it was under construction in 2018

ONE St Pete condos

ONE Tower when it was under construction in 2018

The same developer that built the ONE Tower, The Kolter Group, is developing a new tower just 3 blocks south. They have been taking pre-sale reservations since November and the actual contracts were just released this week on Tuesday January 7th, 2020. If this is something you’re interested in, shoot me an email at chrisformico@gmail.com and we can put you in touch with the builder and also set up an appointment for a real estate attorney to review the contract on your behalf. If the trends continue, these units will appreciate in value the same way the units at The ONE Tower did.

Rendering of the Salt-Aire Tower

Rendering of the Salt-Aire Tower

Conclusion

That is it for the first 727 Team monthly newsletter update of 2020 and a new decade! Pinellas County is an area that continues to appreciate in value with no end in sight. Where else can you live that is still relatively affordable in relation to national real estate prices and also an amazing place to be? If you find out, let me know.  As always, feel free to reach out to me via phone or email and I’ll be happy to help you with any of your real estate questions and needs.

Happy New Year!

-Chris Formico

Recommended Articles Of The Month:

For this update, we’ll highlight some must-reads we’ve written:

 


Learn about family friendly Seminole!– A guide Ryan put together about the city and neighborhood he lives in!


Local News:

Here are some news stories you may love!

Armature Works Comes To St. Pete – Armature Works, a luxury food court concept that took off in Tampa is now coming to a smaller venue in St. Pete. This concept will be taking over the space where Locale Market currently resides.

St. Pete’s Mayor Kriseman outlines a plan for the 22nd St Corridor  – A museum honoring African American heritage among other commercial development is set to revitalize this area in the Warehouse Arts District.

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727team.com Monthly Real Estate Update

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