Important Links for Hurricane Season in Pinellas CountyIf you're a resident of the Tampa Bay area, you're likely worrying about Hurricane Irma and hurricane season in general at this point. At The
The Latest Tampa Bay FL Real Estate Market Stats
The July 2019 Real Estate Stats Are Here!
The July stats are in and the picture they’re painting for the Pinellas County Real Estate Market is pretty much exactly what we predicted over the past several months!
July 2019 experienced continued strength in home sales in the Pinellas County market, despite warnings of a slowdown that was predicted by media outlets in the 1st quarter of the year. (As a reminder, we explained that negative sales totals were actually being driven by a lack of inventory in lower price points in 2019 vs 2018, not from a lack of interest or higher priced sales in our market).
The number of closed home sales in Pinellas County increased +8.6% in July 2019 compared to July 2018, with the average home sale price increasing +12.6% to $361,055. We saw a small drop in cash sales in our area of -5.1%, which is actually a difference of only 17 less sales in the county for the month. Inventory also declined once again, dropping from 2.8 months to 2.6 months supply (a difference of -193 less homes on the market).
Townhouse and condo sales also increased, a bit more modestly at +3.9%, with a similar drop in in cash sales (we’re not worried about that, as higher prices often reduce the number of cash sales from investors). The average condo/townhouse price increased +3% and inventory remained the same (flat) year over year.
What these stats continue to tell us is that the Pinellas County home market remains healthy overall. When we dig down further into the stats here’s the price points that drove the changes in the market:
Home sales in the $100,000-$149,00 price range dropped -67% (not surprising, as prices have grown us out of this price point in the majority of neighborhoods)
The biggest jump in closed sales was in the $1 million+ price point with a whopping +73% increase in closed sales year over year
The next biggest jump in closed sales was in the $600,000-$999,999 price point, with a +34.7% increase year over year.
Double digit growth in closed sales was seen in the $250,000-$399,999 price points as well.
Taking this into consideration, it’s obvious there's still a demand for the higher priced homes that now represent much of the Pinellas market. This is likely due to the strong jobs market in our area, limited availability of vacant land to build new homes on, and increased activity from out of state buyers coming to Florida from other areas where property taxes and state income taxes for just 1 year can equal the purchase price of a condo or small home in our area.
Absorption rates for the past 4 months have not dropped below 45%. We saw rates at 50% for the month of July this year (reminder, a low absorption rate indicates a slow market and a high rate indicates a strong real estate market. A 50% rate is considered fairly high in Pinellas County, so our market is considered strong based on this logic).
So what does this mean? The July 2019 stats indicate that we are still in a good seller’s market in Pinellas County and much of the Greater Tampa Bay Area. Home buyers continue to show interest in local real estate due to historically low mortgage rates and plenty of job opportunities around the Tampa Bay Area. Corporate relocation figures for our area have also been strong this year and Tampa Bay is now ranked #4 in the nation as a 'hot spot' for new commercial real estate development as well. These are all indicators that our market has the strength to continue with positive growth signs through the end of 2019.
For more information about the local real estate market in Pinellas County, FL and the Tampa Bay area, please don’t hesitate to contact us! We are here to help you with all your real estate needs!
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Andrea is the Managing Partner of The Sandy Hartmann Group. Andrea was born and raised in the Tampa Bay area and is a licensed Realtor with over 15 years of Marketing and Finance experience, holding ....
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