August Real Estate Sales Remain Pretty Good
August real estate sales in Pinellas County looked pretty good for single family homes and kinda slow for condos.
Let's take a look at the Absorption Rate. For single family homes, the rate was 32% for August as compared to 29.8% for July. This means that in Pinellas County there is only a 3.1 months of supply for single family homes in the entire county. Houses, it seems, are selling fast.
Condos are selling too, but not as fast as single family homes. The August Absorption Rate for condos in Pinellas stood at 17.3%. This means we have a 5.8 month supply of condos. It was just about the same rate for condos last month.
The single family inventory is low ... very low.
In August there were only 2,979 single family homes listed for sale in the MLS. In July, there were 3,024. If you want a real comparison, in August of 2007, there were 9,141 houses listed for sale in the Pinellas MLS.
During August, 954 single family homes were sold at a median price of $135,000. Last month, 900 single family homes were sold. That's over 18-hundred houses in about 60 days! By the way, the median price for a single family home in Pinellas has increased 6.5% in the last twelve months.
Condos are not doing as well. In August, there were 3,205 condos listed for sale in Pinellas County. We had about the same number last month, 3,272. In the county, 554 condos were sold in August as compared to 551 in July, so it appears the market is flat. It's not bad, just flat.
The median price for a Pinellas condo in August 2012 was $86.500. In August of 2011 it was $94,200, or a loss of 8.2%. I think this might be because investors are buying up lower priced condos to use as rental properties, and this causes the median price to drop.
What does all this mean?
Well, first of all I think the prices on single family homes are going to start going up due to the lowering of inventory levels. I also think that when you have only a three month supply of inventory, you have a seller's market for single family homes. For condos, I think the numbers reflect the seasonality of condo buyers, and a strong market for condos among investors. These are not bad things, it's just the way the market is right now. Who knows, it may be different in another couple of months!
Happy selling!
Let's take a look at the Absorption Rate. For single family homes, the rate was 32% for August as compared to 29.8% for July. This means that in Pinellas County there is only a 3.1 months of supply for single family homes in the entire county. Houses, it seems, are selling fast.
Condos are selling too, but not as fast as single family homes. The August Absorption Rate for condos in Pinellas stood at 17.3%. This means we have a 5.8 month supply of condos. It was just about the same rate for condos last month.
The single family inventory is low ... very low.
In August there were only 2,979 single family homes listed for sale in the MLS. In July, there were 3,024. If you want a real comparison, in August of 2007, there were 9,141 houses listed for sale in the Pinellas MLS.
During August, 954 single family homes were sold at a median price of $135,000. Last month, 900 single family homes were sold. That's over 18-hundred houses in about 60 days! By the way, the median price for a single family home in Pinellas has increased 6.5% in the last twelve months.
Condos are not doing as well. In August, there were 3,205 condos listed for sale in Pinellas County. We had about the same number last month, 3,272. In the county, 554 condos were sold in August as compared to 551 in July, so it appears the market is flat. It's not bad, just flat.
The median price for a Pinellas condo in August 2012 was $86.500. In August of 2011 it was $94,200, or a loss of 8.2%. I think this might be because investors are buying up lower priced condos to use as rental properties, and this causes the median price to drop.
What does all this mean?
Well, first of all I think the prices on single family homes are going to start going up due to the lowering of inventory levels. I also think that when you have only a three month supply of inventory, you have a seller's market for single family homes. For condos, I think the numbers reflect the seasonality of condo buyers, and a strong market for condos among investors. These are not bad things, it's just the way the market is right now. Who knows, it may be different in another couple of months!
Happy selling!
-30-
posted by Terry Ward at 8:12 AM
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