I want to share a Market Snapshot for Pinellas Co.,October 2016. Markets shift and make corrections all the time and real estate is no exception. All indications in the last few months was to expect a correction in the near future. As I monitor the market here in Pinellas County, I have been paying close attention to see if there were any signs indicating a correction was about to take place.
September statistics and trends began to show some signs of a correction especially in the condominium market. The number of sales went from 33% in August to 29% in September. Typically it is the condo market that will show the first signs of a shift prior to single family homes. However, the most recent data from October showed the beginning signs in a shift of the single family home. September showed 40% of the market being sold to 34% in October. There were 145 more listings in one month and 127 fewer sales. Further, the absorption rate (amount of time it would take to sell all the Active Listings) moved from 2.5 months in September to 3 months in October. This reversal is the first time we’ve seen this shift in several months. The overall statistics for Pinellas County still show we are in a seller’s market but it could be changing. October was the first month showing signs of a change. We typically need to see this kind of a change for three consecutive months in order to definitively declare the market is in a correction.
Other highlights in October were:
- Single family homes priced between $200,000-$300,000 has been the most active price point for several months. October showed 70 fewer sales than the last the last nine months.
- There were 132 fewer sales for the entire market in October than in September
- There was a total of 1,772 sales in October and 1,904 in September, a 11% change in one month
- The last time we saw 1,772 sales or fewer was in February of this year
This data isn’t being presented to scare anyone or indicate a major crisis in the housing market is about to occur. Nothing could be further from the truth. There are no predictions that anything of that magnitude is about to happen. This is only a market correction that had to happen. The supply and demand nature of real estate reached a point where prices began to reach a point where prospective home owner’s were not willing to pay inflated prices for a home and/or they couldn’t find a home to meet their needs. Inventory has been extremely low for several months, forcing many homeowners to wait it out.
The data for November will be very interesting to analyze and present to you. Interest rates are still at an all time low but we can probably expect an increase to take place very soon and more than likely right after the new year.
Because real estate is very localized, the market data for your area can be much different than another area even in close proximity to your home. If you’re interested in knowing the value of your home today, you need to give me a call 727-744-4606 http://davidbatesgroup.com/ I’m more than happy to do a market analysis on your home. And/or if you are interested in learning more about buying now, I certainly will be to assist you. Now is a great time to buy.