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.
Consistent Sales
For residential sales in Pinellas County, last month was very consistent with the previous 2 years. February 2019 – 1,642 sales, February 2018 – 1,643 sales, February 2017 – 1,627 sales. This is a good indicator and a healthy sign as heavy swings in either direction can put stress on the real estate market and cause a major imbalance.
In this market update I am going to talk a lot about balance and how it plays a huge role in our real estate market. There are always outside factors at play including federal interest rates, the direction of the overall economy, job growth, and much more that can directly make or break our real estate market.
The good thing is Pinellas County is an attractive option for both buyers and sellers especially during this time. For sellers, many have experienced a nice increase in equity over the past 5-10 years especially if they bought in areas that were further developed during that timeframe. This gives sellers an option to cash in on that equity and either scale up or scale down depending on their needs in life.
For buyers, many who are coming from out of state are now entering an era of growth in development. With Pinellas County, which is the most densely populated county in the state of Florida, open land is scarce. This is actually a very good thing because it forces areas to be improved rather than doing the majority of development on new untouched land.
So what does that look like on a small scale? I live in Seminole, FL and I’ve watched how the replacement of a dead indoor mall with a thriving outdoor mall has had a major impact on property values in my neighborhood. I can now walk across the street and have access to many amenities that were not there a few years ago.
Clearwater Beach won the award again as the #1 Beach in the United States. Every time awards like this are won in our area, it reinforces what a great area Pinellas County is to live in and invest in.
Buyers who are now making Pinellas their home or are investing are reaping the benefits of getting their piece of paradise. With millions of people that visit every year, is it no wonder that people are enamored by the idea of living where other people vacation?
Balance Explored
So now that you know there are plenty of incentives for buyers and sellers to engage in real estate transactions, what does that look like on a more financial level. In last month’s update, Chris wrote about the mortgage rate forecasts from housing authorities and how the majority were predicting higher rates throughout 2019. Right now the Federal Reserve is maintaining they are being patient before issuing another rate hike (read more here). With the Federal Reserve implementing 4 rate hikes in 2018, it is likely there will be at least 2 in 2019.
On a very simple level, the raising and reduction of interest rates by the Federal Reserve is a means to create balance. Financially every time the interest rate goes up, that can have a big impact on what someone pays over the life of the loan and their purchasing power. There continue to be a variety of financial options for buyers when it comes to purchasing property. We’ve noticed conventional loans over the years are becoming more common as they are more competitive with FHA loans when it comes to low down payments and less restrictions.
On The Local Level
Florida offers plenty of incentives for people to move here including lower taxes and a climate that is good for businesses. In a world where more jobs allow people to work remotely, Pinellas County is the perfect area for professionals that can work anywhere to escape high tax states and live in a vacation destination.
Conclusion
Thank you for reading our March Update! If you are thinking about moving to the area and have any questions, don’t hesitate to reach out. We love sharing our knowledge and being a resource.
Sincerely,
Ryan Eisenhower
Recommended Articles Of The Month:
For this update, we’ll highlight some must-reads we’ve written:
Seminole City Center Mall And How It Has Impacted Our Market – As discussed in the update, we spoke about how areas of development can have a big impact on property values. I wrote this about how I saw the local mall effecting the price of the homes in my neighborhood for the better.
Top 5 Historic Neighborhoods In St Pete– There’s a lot of history in St Petersburg and we put together a list of the top 5 Historic Neighborhoods in our thriving city!
Real Estate News:
Here are some news stories you may enjoy!
The Evolution Of St Pete and Tampa – Check out how the urban scene of St Pete and Tampa has been growing and attracting more young professionals.
Clearwater – #1 Beach– This article explores more into Clearwater being named the #1 beach in the US.
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