Ultimately, it comes down to supply and demand…
The Great Recession had a profound effect on businesses, home values, and overall growth in Pinellas County. Most people would be hard-pressed to find someone that wasn’t effected by the chaos that ensued and the many people that suddenly found themselves out of work or under-water on their mortgages.
The good news is 2016 and 2017 has brought Pinellas County home values back to similar prices right before the recession began. How has this effected the market? What does this mean to you? Learn more as we discuss this interesting development.
Rising Interest Rates + Sellers Market + Increased Demand
So depending on when you are reading this article, the Federal Reserve as of March, 2017 increased the interest rates by .25%. They are also expecting 2 more rate hikes by the end of 2017. Interest rates are still at historic lows based on the past 30 years and buyers are quickly feeling the squeeze to make a move on property before prices get even more expensive.
The past couple of years have shown an almost steady decrease in homes available on the market in Pinellas County. Although there are still homes that sit on the market for longer than 30 days, this is traditionally due to overpricing, poor marketing efforts by the agent, or issues with the home that make it undesirable.
The vast majority of homes that are priced right, marketed well, and have very few issues tend to be sold within 30 days. It’s also not uncommon for homes to be sold the first week on the market when represented by the right real estate team.
With decreasing inventory, Pinellas County has surged in popularity with highly ranked beaches, growing cities and top destinations that people come here for from all over the world. Pinellas County is the most densely populated county in the state of Florida and the land and resources are very limited when it comes to new construction.
What Does This Mean To You?
If you are still paying rent and plan to stay in this area for the next few years, you may want to reconsider where you are spending your money. Rent has continued to go up and it’s not uncommon for people to find they can afford more home including (mortgage, taxes, insurance, etc.) vs the amount of money they would have had to spend for rent.
There is more and more competition happening in Pinellas County with the increased demand to live here. You may think to yourself that it’s wise to wait it out and save more money but have you considered the appreciation for the areas you may be interested in.
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Let’s say you wanted to live in St Petersburg, FL and you decided you would prefer to wait a year and save a few extra grand in the bank before you consider purchasing.
In May, 2016 the median price for a home in St Petersburg, FL was $162,250, where as of March, 2017 the median price is $190,000. (This data is composed of all 6,996 listings that sold during that time period in St Petersburg, FL).
That’s almost a 15% increase in just 12 months. That means if you take the median prices, that home you may have wanted for $200,000 the previous year now costs $230,000. We believe in education, and that the more knowledge you build on the local market place, the more likely you’ll make a wise purchase decision.
We are constantly studying the Pinellas County market place and dealing with home values. If you have any questions, even if you aren’t quite ready to make the jump yet, please don’t hesitate to reach out to us!
Let us give you the information you need to make informed choices whether now or in the near future. To get started, email us at firstname.lastname@example.org to get the process started!
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(all data current as of 4/10/2021)
Listing information deemed reliable but not guaranteed. Read full disclaimer.