Is Stability Returning To Real Estate?
The sales figures for February in Pinellas County real estate show the continuation of similar numbers from the previous three months. Maybe the market is getting a bit more stable.
Let's take a look at the Absorption Rate (AR) for February. For single family homes, the AR for February was 10.2%. That's an improvement over January's 9.3% and just a bit less than December's 11.9% figure. Still, those numbers are pretty similar taken as a whole.
The same can be said for condominiums. The AR for February was 8.9%. In January it was 6.9% and in December the AR was 9.4%. Really, this shows some pretty similar market activity for the past three months.
Single Family Homes
There were 6,153 single family homes listed in the MLS for February. This is down somewhat from January's 6,414 listed properties. Some 629 single family homes were sold during February as compared to January's 595 sales. So, listings were down but sales were up.
The median price for a single family home in February was $100,000. In February 2010 it was $130,000, a drop in median price of 23.1%. I think that when you have a drop in median price like that, it is a sign that investors are very active and they are probably buying a lot of distress properties to be used as rental units or for other forms of real estate investment activity. I would like to know what the median price was if you took all the distressed properties out of the data and we looked at only arm's length transactions. I'll bet the median would be higher.
Condominiums
The number of condos listed in the MLS in February was 5,073. In January, 5,192 condos were in the MLS system. Of these, some 452 condos were sold in February, a nice increase in sales volume compared to January's 360 condo sales. Just as with single family homes, the number of listed condos is lower and the number of condos sold increased in February.
The median price of a condo in Pinellas County in February of this year was $78,800. This is down 28.4% from February of 2010 when the median price was $110,000.
When you look at all these numbers and compare them over a two or three month period, it seems to me like the real estate market has become kind of stable. I don't know about you, but after all these months of falling prices and reduced volume, it's kind of refreshing to see these figures beginning to show some kind of stability. I suspect we have to get stable before we can see any appreciable improvement.
Happy Selling!
=30=
Let's take a look at the Absorption Rate (AR) for February. For single family homes, the AR for February was 10.2%. That's an improvement over January's 9.3% and just a bit less than December's 11.9% figure. Still, those numbers are pretty similar taken as a whole.
The same can be said for condominiums. The AR for February was 8.9%. In January it was 6.9% and in December the AR was 9.4%. Really, this shows some pretty similar market activity for the past three months.
Single Family Homes
There were 6,153 single family homes listed in the MLS for February. This is down somewhat from January's 6,414 listed properties. Some 629 single family homes were sold during February as compared to January's 595 sales. So, listings were down but sales were up.
The median price for a single family home in February was $100,000. In February 2010 it was $130,000, a drop in median price of 23.1%. I think that when you have a drop in median price like that, it is a sign that investors are very active and they are probably buying a lot of distress properties to be used as rental units or for other forms of real estate investment activity. I would like to know what the median price was if you took all the distressed properties out of the data and we looked at only arm's length transactions. I'll bet the median would be higher.
Condominiums
The number of condos listed in the MLS in February was 5,073. In January, 5,192 condos were in the MLS system. Of these, some 452 condos were sold in February, a nice increase in sales volume compared to January's 360 condo sales. Just as with single family homes, the number of listed condos is lower and the number of condos sold increased in February.
The median price of a condo in Pinellas County in February of this year was $78,800. This is down 28.4% from February of 2010 when the median price was $110,000.
When you look at all these numbers and compare them over a two or three month period, it seems to me like the real estate market has become kind of stable. I don't know about you, but after all these months of falling prices and reduced volume, it's kind of refreshing to see these figures beginning to show some kind of stability. I suspect we have to get stable before we can see any appreciable improvement.
Happy Selling!
=30=
posted by Terry Ward at 3:36 AM
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