The housing market in St. Petersburg is improving, following a similar reported national trend. We’re seeing buyers coming back into the market at higher price points; thus the average sale price is increasing.
Inventory is declining, and as a result we’re not seeing a significant increase in the number of sales.
Let’s look at some statistics from the "My Florida Regional MLS" (which does not include all sales):
- In the Old Northeast, for example, the average single family home sale price in the last year has increased over the prior 12 months by 18%. In the last year ,115 sales ranged from $115,000 to $1,865,000, with an average price of $392,279. In the prior 12 months, there were 113 sales ranging from $23,000 to $955,000, with an average price of $331,906.
- In downtown St Pete, over the last 12 months, 161 condos sold at prices from $40,000 to $1,890,000, with an average price of $547,744. During the previous 12 months, there were 142 sales, ranging from $23,500 to $4,650,000, with an average price of $441,065. For downtown St Pete condos, the average price increased 24% year over year.
The recovery is still very hyper local, and varies from neighborhood to neighborhood, from condo to condo. It is not uncommon for well-priced properties to have multiple offers to purchase, some of which sell for more than the listing price.
In the last 24 months, four single family homes sold for over $5,000,000. Two were in north Pinellas County, two in south Pinellas County.
The highest sale price was $9 Million.
The highest condo sale reported in the MLS was $4,150,000 for a condo at Ovation in downtown St Pete.
Note that some direct developer sales sold higher, but were not reported in MLS. Ovation, for example, had three sales over $4 Million in the last 24 months, the highest being $4,650,000.
Interest rates are still low and indications are all that prices have passed the bottom and are on the way up. Market equilibrium (sellers market vs buyers market) is often considered to be a 6 month supply of properties.
In the Old Northeast, the supply is just over 3.5 months; in downtown St Pete condos the supply is less than 2 months. That’s a sellers market - but it doesn’t mean that buyers are overpaying - they’re not.