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The March 2021 Real Estate Stats For Pinellas County
Dated: April 26 2021
The March 2021 Real Estate Stats for Pinellas County
The Pinellas County, FL real estate market has been anything but dull since the start of 2021. As always, we have dug into the stats and have the info you need when it comes to what’s happening in our real estate market! Check out our breakdown below of the latest real estate stats for March 2021 to find out what’s happening now and what we predict the future of the Pinellas County real estate market will look like going forward in 2021.
The March Stats
Homes are selling at an incredibly fast rate in Pinellas County, with the average single-family home going under contract in just 9 days and the average condo/townhouse going under contract in just 18 days.
With far more home buyers than homes for sale in our market, the majority of sellers are collecting top dollar for their properties, with the median single-family home price now sitting at $340,000 (+18.5% higher compared to last year at this time) in Pinellas County and selling for 100% of the original list price.
What’s interesting to note about our market is that the number of new listings in March didn’t decrease that much at all. In March 2021, our market had 1384 new listings hit the MLS. Comparatively, in March of 2020, our market had 1395 new listings hit the market. A difference of just 11 homes for sale.
So why are prices increasing and sellers getting multiple offers now?
The simple answer is that there are far more home buyers shopping in our area than there have ever been before. Home buyers want to take advantage of low mortgage interest rates while they can and there has been an influx of out-of-state buyers shopping for homes as well, now that remote work has become an option for so many. Florida is an attractive place to relocate if you can work remotely, thanks to no state income taxes, prime beaches, and a lower cost of living compared to other popular metro areas.
To illustrate this further, we had 1384 new listings hit the market in March, but 1396 homes went under contract in that same month. The number of new contracts is exceeded the number of new listings in March. In the past, if 10 homes were listed in a given month, just 5 or 6 of them would go under contract in that month, leaving our market with ‘back-inventory’ to carry in to the next month. This trend existed even during the 2006 bubble when prices were growing. In today’s market however, homes are being snapped up in record time and there is simply little to no inventory being carried over from one month to the next. A completely different trend than what the Tampa Bay real estate market has ever experienced before.
Other Highlights from the March 2021 Stats:
The Absorption Rate is currently sitting at a whopping 213% in the single-family home market
1 out of every 3 single-family homes sold is bought with cash
1 out of every 2 condos/townhouses sold is bough with cash
There is just .8 mos of inventory available as of today in our market
Despite inventory constraints, closed sales jumped +20.6% in March 2021
The fastest selling homes in March 2021 were in the $300k-399k price range
The slowest selling homes were in the $1M+ price range (See Graphic Below)
So What Does This Mean For the Pinellas County Real Estate Market?
Basically, as long as mortgage interest rates remain low, we predict prices will continue to climb for the remainder of the year, pending any dramatic & unexpected changes in things we simply can’t control (think mortgage rates, insurance, tax changes or natural disasters).
Over the span of 2021, we believe home prices will eventually hit a point where the price increases will slow down and moderate back to just +4% per year. What that point will be is anyone’s best guess. We do not foresee prices decreasing in the current state of the real estate market, but possibly leveling out as we head towards the end of the year. This is under the assumption that inventory trends will not get any tighter of course, which could continue to drive up prices.
For sellers, if you are thinking about listing your home for sale, our advice is to do it NOW. We’ve said this time and time again. Yes, you’ll pay more for your next home, but you’ll also likely have a quick and easy sale of your current home in today’s real estate market with multiple offers to choose from and buyers who are willing to negotiate to get into their next dream home. There's never been a better time to sell a home.
For buyers, we recommend focusing on what we know to be true right now:
Mortgage rates are low
The cost of living in Tampa Bay is still much more affordable than other metro areas
If you wait, prices could potentially be 3-5% higher in just the next 6 months (and interest rates could also rise)
Remember, Pinellas County is the 2nd smallest county in the State of Florida, so waiting for more homes to be built may not be the best plan of action, as land is extremely limited here.
With the cost of lumber increasing by 2-3 times more than last year, the cost of waiting for new construction could far outweigh the cost of an existing home.
As always, if you have questions about our real estate market, feel free to call us at (727) 400-3315 to speak with one of our skilled agents today. We would love to hear from you!
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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