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The October 2022 Pinellas County Real Estate Stats
Dated: November 21 2022
The October 2022 Pinellas County Real Estate Stats
The October 2022 real estate stats for Pinellas County are here and while the number of sales were down last month, home prices continue to experience year over year gains. Have a look at the highlights below to find out more about what’s happening in our housing market now:
The Single-Family Home Market Update
Closed Sales dropped year over year by -24.8%, with 887 closed sales in October 2022 vs. 1180 closed sales in October 2021
The Median Sale Price of a single-family home remains higher than last year though, with a +19.1% gain year over year, sitting at $440,000 compared to $369,450 in October 2021. To give more context, the October 2022 median sale price is higher than the median sale price in Jan/Feb/March of this year when our market was at its peak and homes were selling like wildfire.
Cash Transactions still account for about 1 out of 3 home sales in Pinellas County. While the topline stats show cash transactions dropped -27.5% year over year, the proportion of cash purchases compared to the number of sales is still about the same (34% of homes sold for cash in October 2022 vs. 35% in October 2021). This is why it remains important to get a full explanation of these stats, as the numbers may look far scarier than they really are for our area at first glance.
Sellers are negotiating more to get their homes sold, with the median seller collecting 95.9% of their original list price once their home sells vs 100% at the same time last year. Based on the sales growth above, what this tells us is that many sellers are still expecting 30-40% gains year over year and have simply overpriced their properties when they list for sale. At the end of the day, the median seller is still getting more for their home than they would have last year based on the year over year price gains.
Housing Inventory is thankfully increasing, but not as much as we would like to see to give buyers a good amount of homes to choose from. While inventory is up +77.8% in October 2022 compared to October 2021, this just brings us to 2.1 months of available housing inventory in our market vs. 1 month of available inventory last year. A balanced market needs 5-6 months of inventory for buyers to have the most negotiating power, which we are still very far from having.
Homes are taking longer to sell, with the median single-family home taking 23 days to go under contract in Pinellas County vs. 10 days in October 2021.
The Condo/Townhouse Market Update
Closed sales declined -27.3% in the condo/townhouse market in Pinellas County last month, with 549 closed sales in October 2021 vs. 755 closed sales at the same time the year before.
The Median Sale Price increased +25.5% in October 2022 to $295,000 compared to $235,000 in October 2021. While condo/townhouse sales have slowed down from their peak in the 1st quarter of the year, prices remain resilient and continue to show year over year growth for homeowners,
Cash Transactions accounted for about 1 out of every 2 closed sales in the condo/townhouse market last month, which similar to the single-family home market, represents the same percentage as the year before (49% of closed sales were cash in Oct 2022 vs 51% in Oct 2021). So while the number of closed sales is down, home prices and the proportion of cash transactions show no signs of distress in our market for the time being.
The Median Seller collected 96.8% of the original list price in the condo/townhouse market last month, compared to 100% the year before, when sellers didn’t have to negotiate on price at all for the most part due to limited inventory, low interest rates, and a larger pool of buyers. However, the median and average condo/townhouse is still selling for a higher price than last year, meaning while sellers have to negotiate, they are still pricing their homes at prices higher than last year’s. The median sale price in October 2022 is still higher than the median sale price from Jan-May of 2022 when the market was much more intense.
Condo/Townhouse Inventory has increased by +122.2%, While that may sound extreme, that simply means the market has a 2 month supply of housing inventory as of October 2022, compared to .9 months of inventory in Oct 2021. A balanced market needs 5-6 months of inventory. Pinellas County is still suffering from a drastically low supply of homes for sale when you look at historical numbers.
Condos and Townhouses are taking longer to sell, with the median property going under contract in 20 days in Oct 2022 vs. just 8 days in Oct 2021. Selling a property in 3 weeks is still considered above average compared to the rest of the United States, where many markets are seeing their median time to contract jump to over 40 days.
What Does It All Mean?
While the changes in our market since the summer months may feel extreme, the Pinellas County housing market continues to remain healthy in the grand scheme of things. Our market hasn’t seen the insane price decreases other housing markets across the country are seeing and the stats above are interestingly similar to the 2019 local housing market, which was considered to be a great time for sellers in the grand scheme of things. In 2019, we actually had 33% more inventory and sellers were often thrilled with the prices they could collect for their homes. As of today, sellers are collecting even higher prices than they were in 2019, 2021, and 2022, meaning the majority have not been affected by slower sales.
From the Realtor side of things, what we are seeing is sellers pricing their homes above the peak prices in 2021 and 2022, which buyers are not willing to pay. This results in more negotiations and homes sitting on the market longer, but not necessarily lower prices year over year, as the stats prove.
For sellers, this means if you want a quick sale, you need to listen to your Realtor’s pricing advice, which should be based off recent comparable sales. You should also have your home in impeccable condition when it comes to cleanliness and maintenance issues, as there are less buyers jumping into the market right now, no more bidding wars, and more inventory for buyers to compare your home to.
For Buyers, it’s important to note that top economists and lenders across the nation are predicting an easing of mortgage rates in 2023 at some point. This means you have a better chance of getting a great home now with less buyer competition than you will in the future if rates do drop again. While it’s true that higher mortgage rates are a bummer when it comes to higher payments, you’ll likely score a lower sale price or be able to negotiate a rate buy-down credit with a seller to offset some costs. As a homeowner, you’ll also be able to refinance your mortgage to a lower rate sometime in the next 12-24 months if economists and lenders are correct in their predictions (as of today, we also agree with these predictions). Once rates drop, the likeliness of the market picking up is strong and buyers will once again have less negotiating power.
For more information on our housing market or to find out what your home is worth in today’s market, call or text us at (727) 400-3315.
Want to get an INSTANT home price ‘estimate’ to get started? CLICK HERE!
(*Remember this is just an estimate, not a final home value*)
As always, we’d love to speak with you about your real estate needs, whether you’re a 1st-time home buyer or selling your 10th home! We’re here to help you reach all your real estate goals!
Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....
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