Buyer interest is on the rise!
The last year has seen the lowest volume of home sales since 2009. History and data tell us this is due to the election and interest rates. With one of those now behind us, has anything changed?
The data just came in and in the two weeks after the election home showings increased by almost 20% and mortgage applications jumped up nearly 25%. If that's not a clear sign the election was suppressing buyers I am not sure what else is. Additionally, this past week interest rates dropped nearly a quarter point. As an agent, you can almost feel it in the air. There is a massive buyer energy just simmering below the surface. People want to buy houses but are waiting for something to shift to get them off the sideline and actively looking. Maybe it is interest rates? Maybe it is something else? Personally, I am not waiting and I am looking to add rentals to my portfolio this month before this buyer sentiment boils over.
To be clear, currently, the market is in the buyer's favor, with days on market on the rise. However, this is a backward-looking metric and it tells us where we have been, not where we are going.
A couple of things to keep in mind...
Low beach-town inventory - When it comes to turnkey, move-in-ready properties in the beach towns around St Petersburg, inventory is still extremely low. The permit process is moving painfully slow so repairs are being delayed.
The biggest soft spot in the market - Condos and large homes! The condo market has been down for a while now but with the Milestone Law fully coming into effect it might slowly start to turn around. The other big weak spot I am seeing is homes over 3000 sq ft. I am seeing more opportunities available on these large non-waterfront homes.
Pre-approval letter - Every offer on a home has to include a bank statement showing you have the cash for the home or a letter from a lender showing you are pre-qualified! The pre-approval letter only requires a soft pull on your credit so there is no impact on your credit score. I suggest you get a pre-approval letter before you start touring homes to ensure any home offers you make go smoothly. Please reach out if you need help getting this taken care of!
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Here is a 30-day snapshot of a few St. Petersburg areas:
OLD NORTHEAST
Active Statistics
Active Listings: 55
Pending Listings: 21
Avg. Days on Market: 88
Avg. Listing Price: $1,176,000
Avg. Listing Price per sq.ft: $601
Sold Statistics
Total Sold: 11
Avg. Sold Price: $1,090,000
Avg. Sold Price per sq.ft: $691
TREASURE ISLAND
Active Statistics
Active Listings: 37
Pending Listings: 8
Avg. Days on Market: 142
Avg. Listing Price: $1,148,000
Avg. Listing Price per sq.ft: $813
Sold Statistics
Total Sold: 5
Avg. Sold Price: $979,000
Avg. Sold Price per sq.ft: $855
GULFPORT
Active Statistics
Active Listings: 82
Pending Listings: 17
Avg. Days on Market: 85
Avg. Listing Price: $503,000
Avg. Listing Price per sq.ft: $356
Sold Statistics
Total Sold: 10
Avg. Sold Price: $412,000
Avg. Sold Price per sq.ft: $340
Want info on a specific neighborhood? Email me at ao@aaronoetting.com and I will send it over!