Pinellas Real Estate Is Now A Seller's Market
There are a lot of real estate buyers who are clinging to the belief that they can make low-ball offers and that desperate sellers will accept way less than market value for their property. To be candid, those market conditions no longer exist. At least they don't exist in Pinellas County anymore.
Pinellas County has become a seller's market once again.
Don't believe it? Well, let's look at some numbers.
Lets go back five years to June, 2007 and compare it to today. June of 2007, by the way, was clearly a buyer's market.
In June of '07, there were 9,111 single family homes listed for sale in Pinellas County. During that month, 682 properties were sold. That means 7.4% of the listed inventory sold during June of '07.
By comparison, at the close of June in 2012, there were only 3,160 single family homes listed for sale in Pinellas. Of those, 918 were sold. That means 29.05% of the listed inventory was sold that month.
These figures show that today we have only about one-third of the inventory for sale, but nearly an additional third of buyers in the market. If you recall Econ 101, product scarcity combined with high demand means prices go up.
Those figures also show that it would take over 14 months to sell all the listed inventory in 2007, while today it would require only about 3-1/2 months to sell the inventory. The market is considered to be in equilibrium when it will take about 6 months to turn the listed inventory.
So, who has the advantage? Clearly, the seller has the advantage. In an active market like this with scarce inventory, if the seller doesn't like the offer or the terms he can sit tight and wait for another buyer to come along. Most likely, it won't take long to find the next offer if the property is priced correctly and in nice condition.
Although the figures vary a bit, the same seller's market condition exists for condominiums as well.
What all this means of course, is that this dwindling inventory of homes and condominiums coupled with high buyer activity will usher in rising prices for real estate. I expect a slow but steady rise in prices -- nothing like the crazy price jumps we saw during the "bubble" years. This is good news for sellers and makes now a great time to put property on the market.
Remember, if buyers are active, it's a good time to be a seller.
Pinellas County has become a seller's market once again.
Don't believe it? Well, let's look at some numbers.
Lets go back five years to June, 2007 and compare it to today. June of 2007, by the way, was clearly a buyer's market.
In June of '07, there were 9,111 single family homes listed for sale in Pinellas County. During that month, 682 properties were sold. That means 7.4% of the listed inventory sold during June of '07.
By comparison, at the close of June in 2012, there were only 3,160 single family homes listed for sale in Pinellas. Of those, 918 were sold. That means 29.05% of the listed inventory was sold that month.
These figures show that today we have only about one-third of the inventory for sale, but nearly an additional third of buyers in the market. If you recall Econ 101, product scarcity combined with high demand means prices go up.
Those figures also show that it would take over 14 months to sell all the listed inventory in 2007, while today it would require only about 3-1/2 months to sell the inventory. The market is considered to be in equilibrium when it will take about 6 months to turn the listed inventory.
So, who has the advantage? Clearly, the seller has the advantage. In an active market like this with scarce inventory, if the seller doesn't like the offer or the terms he can sit tight and wait for another buyer to come along. Most likely, it won't take long to find the next offer if the property is priced correctly and in nice condition.
Although the figures vary a bit, the same seller's market condition exists for condominiums as well.
What all this means of course, is that this dwindling inventory of homes and condominiums coupled with high buyer activity will usher in rising prices for real estate. I expect a slow but steady rise in prices -- nothing like the crazy price jumps we saw during the "bubble" years. This is good news for sellers and makes now a great time to put property on the market.
Remember, if buyers are active, it's a good time to be a seller.
-30-
posted by Terry Ward at 7:16 AM
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