Real Estate Information

"Home prices went up in major markets in the US in May for the second consecutive month."  That is the lead sentence in press releases and it deals with the national real estate picture.  The Tampa Bay real estate market looks a little different.  The mean price of Tampa Bay real estate in May was down 6.6% compared to April. 

The national home prices slid 4.5% in May from the previous May.  However, in the Tampa Bay real estate market, the mean home prices went down 1.6%  when comparing May 2011 to May 2010.  The real shocker is that the median price in May 2011 was down 15.7% from May of 2010.  Taking a look at the reason for the huge difference between the mean and the median, more than 60% of Tampa Bay real estate transactions in 2011 have been cash.  The median price of homes sold indicates that there are a lot of lower priced houses selling to cash buyers, mostly cash rich investors.  At the same time, the Tampa Bay real estate statistics tell us that there are a few higher priced properties selling in the upscale market, which had been moribund for the past year.

There are indicators in a few micro-markets in the Tampa Bay area that small areas have already hit bottom and are in a recovery mode.  Unfortunately, this type of recovery may be good for a neighborhood, it just hasn't spread to the entire area - yet.

No matter how one chooses to look at the real estate market, prices are continuing to deteriorate.  According to one analyst, Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California-Los Angeles, "This reflects a market that continues to be in search of a bottom."  Not good news for sellers.  However, it can be good news for buyers and investors.  When the inventory is reduced to lower levels, the law of supply and demand should kick in to finally begin to move housing prices up in the Tampa Bay real estate market as well as nationally.

In short, as long as unemployment continues to drag down the local and/or the national economies, and people don't have income to buy homes, the real estate market will be the bellwether for the economy and its recovery.

Has the Pinellas County real estate market stabilized yet?  The honest answer should be "Who knows?"  The numbers are giving us clues that just maybe, the Pinellas County real estate market has stabilized or at least started to stabilize.  The number of single family listings for year on year in June has decreased to 4,655 from the previous year of 6,479.  This represents a 28.2% decrease in single family listings in 2011 vs. 2010.  The number of Pinellas County single family home sales year on year for June went down to 786 from the previous yuear at 802.  This represents a 2% decrease in unit sales for 2011 compared to 2010.  All in all, an optimist can see that inventory is dropping to a manageable volume, from the high of 11,226 listings in March of 2007.  That month saw only 687 single family homes sell, an absorption rate of only 6%.

The absorption rate for Pinellas County in June 2011 was 16.9%.  This means that 16.9% of all single family home listed in Pinellas County in June actually sold.  The year on year absorption rate for June 2011 is up from 12.4% in June 2010.  This means that the inventory of houses is decreasing.  A small irony is that despite the decreased inventory, the mean sold prices of single family homes decreased by 2.2% in June 2011 from June 2010.

The median price for single family homes sold in June 2011 was $132,000.  The median price in June 2006 for single family homes was $238,000.  Thus, as every home seller can attest, single family home median prices have dropped by about 44% since 2006.

Now, for those sellers who are thinking that they can just ride this out for another couple of months and sell for a higher price.  My opinion, and that of many, many very knowledgeable people, is that if you do not need to sell now - DON'T.  If, as life happens, you are in a situation where you need to sell your home, swallow the bitter pill and put it on the market at a fair market price.  Doing so will net you the most money possible in the quickest time frame.  Hoping to get a price much above market value will continue to cost money and lead to a stale listing that does not sell quickly and not for the best price possible. 

What you "need" to get or "want" to get from the sale is not relevant to the market of today.  Take what the market will give you, and move on with your life.

Most people who are looking for a home start with resale houses.  In today's market, an overlooked market could be new construction.  Let's look at some of the issues for comparison, especially in a market like that we are experiencing in the Tampa Bay area.  Many of the most desirable locations are already built out so often the only option is to buy a resale house.  The biggest advantage is the location.  A resale house be in the perfect location, for schools, shopping, health care, or other amenities.  Potential drawbacks might be delayed maintenance, the architecture isn't exactly what the buyer wants, the appliances can be older or in need of immediate replacement, the roof might be nearing the end of its life.  Purchasing a home warranty is a prudent precaution.  Advantages, besides the location may be the yard is perfect with mature landscaping, the cost per square foot (when considering some of the features) might be less than most new construction, the local restaurants and shopping are very convenient, the school is close enough to walk to.

New construction may have some disadvantages.  The location might be farther from amenities, such as schools, shopping, restaurants, etc. than similar older houses.  The landscaping is probably not as lush or mature as more established neighborhoods.

Some of the advantages of buying new construction can include bulider financing that can save closing costs, the new home construction comes with a builder's warranty so that anything that goes wrong in the first year is fixed.  The buyer has direct input into the exact layout of the house and the appliances and other features (surround sound, special lighting, flooring, etc.) that would be extra costs to install in older construction.  And one of the biggest advantages of buying new construction, everything is brand new!! In some micro-markets, new construction costs can be just about the same as purchasing a resale house.

There are builders who have come to realize that huge building developments might not be such a good idea and are now looking for smaller areas, scattered lots within a targeted area.  They build homes that are in the right location, meet the cost needs of many buyers, and come with the builder's warranty.  If you are looking for the best of all worlds, new construction that is not in a huge development just might be the answer.

Sometimes the location is the absolute most important benefit.  Sometimes the newness can be the most important benefit.  Then, as with most house purchases, a blend of convenience, amenities, location, and cost lead to the best decision.

Planning during the construction of a new home can be hugely entertaining for some, or a bother for others.  You make the decision.  Sometimes new construction really is the better deal, even if you have to drive a few extra minutes to work or to the grocery store.

The real estate market in Pinellas County, Florida is humming.  And the following appears to be a contradiction, yet it is not. Read on to see why.

Pinellas County, Florida is in the midst of one of the worst real estate markets in the country.  Does that mean that real estate is dead?  No, of course not.  People still need housing, people move, people are buying their first homes, and sadly, people still are dying so their homes need to be sold. 

Using some of the key indicators, such as absorption rate - the time it will take the current inventory to be sold, help to see the Pinellas County, Florida real estate market in a slightly different light.  It may indicate that the market is close to stabilized.  The absorption rate year on year for single family homes is up 18.4%, which means that houses are selling much quicker than they did at this time last year.  A possible sign the Pinellas County, Florida real estate market has stabilized.

The number of active listings year on year for single family homes is down 15%.  This means simply that more homes are being sold each month than are being listed for sale.

The number of single family home sales year to date is up 16.7%.  This simply means that we are selling a good number more homes this year than at the same time last year. 

In my opinion, the market is very slowly moving in the right direction towards stabilization and much more sane pricing/growth.  There are numerous buyers in the market now looking for a deal.  So far this year, in the Pinellas County, Florida real estate market, about 65% of residential real estate transactions have been cash.  Houses are selling and houses that are priced at or near market value are selling very quickly.  The inventory is dwindling to the point we no longer have a year of inventory, we are down to about a 6 1/2 month inventory of houses.  The real estate market is in fact very busy.  Investors, especially cash buyers, are finding excellent properties at 1999 prices and can rent houses for immediate cash flow. 

Through April 2011, there have been 2,862 single family houses sold in this area compared to 2010 when 2453 houses sold at the same point in time.  This is a 16.7% increase in single family home sales.  This is not to say that prices are going up as yet.  Our mean prices, in Pinellas County, Florida, April 2010 to April 2011 are down 1.7%, which of course is why the units sold is increasing.  Add to this interest rates are still below 5%.  It all adds up to a wonderful opportunity for qualified buyers.  I am not saying the real estate market is rosy for everyone, it is, however, very busy, or as I said, humming.

Royal Stewart Arms, Dunedin, FL is a 55+ condo community with spectacular views of the Gulf of Mexico and the intracoastal waterway.  This community has it all, including tennis courts, shuffleboard, fishing pier and an active community association.  Royal Stewart Arms, Dunedin, FL is on the Dunedin Causeway and is the last development before entering Honeymoon Island state part.  

Today's 30 day real estate update for Royal Stewart Arms will cover the latest real estate listing and sales activity for this 55+ condo community.

Currently, there are 21 active listings in Royal Stewart Arms.  Of these 21 listings, 7 are one bedroom one bath condo units.  The other 14 listings are 2 bedroom units.  All together, the average days on market for all 21 condos is 201 days on market.  For the one bedroom units, the average days on market is 177 days on market.  Five of these listings have more than 120 days on market, which is a sure indicator that the price is higher than the market is willing to pay.  

The average price for all the condos in Royal Stewart Arms, Dunedin is $148,643 and coupled with the average of 201 days on market certainly indicates the market is rejecting these list prices.

There are only 3 condos under contract, 2 listed at $129,900 - both of which are 2 bedroom 2 bath units.  The other unit under contract is listed for just under $175,000 and has been updated, with stainless steel appliances, granite countertops, newer A/C and water heater, and much more.

There was no sale in Royal Stewart Arms in the last 30 days.  If you are looking for a great location for a very competitive price, Royal Stewart Arms is definitely worth a look.  It is not a landlease complex.  Pets are not allowed.  What is allowed is the Florida lifestyle of a 55+ condo community, including the beaches, easy access to Honeymoon Island, fishing, and the benefits of being so close to charming downtown Dunedin.  

WHERE THERE'S SMOKE . . . !

A lone shipwreck survivor on an uninhabited island managed to build a crude hut in which he placed all that he had saved from the sinking ship. He prayed to God for deliverance, and anxiously scanned the horizon each day to hail any passing ship.

One day he was horrified to find his hut in flames. All that he had was gone. To the man's limited vision, it was the worst that could happen and he cursed God. Yet, the very next day a ship arrived. "We saw your smoke signal," the captain said.

Hmmm! Ever have a big sale fall through? Been disappointed when a friend or loved one failed to come through for you when you needed them? Have you wondered why a goal or objective wasn't achieved as expected?

If you're over the age of 18, you've probably noticed that we don't get everything we would like, exactly when we think we should. Yet, it's amazing how certain things just show up in our lives when we least expect to see them - like the rescue ship.

It is often said that we "shouldn't get too attached to outcomes." We can set objectives, believe they can be achieved, and work to make them happen, but it's best not to get too attached to the outcome. What appears to be a worthy goal may go down in flames, only to be replaced with a magnificent result we had not anticipated.

When you find your hut in flames and fear the worst, think back to this oft quoted reminder: "Fear knocked at the door - faith answered - no one was there!"

The question of how to price your home in today's market is very important in today's Tampa Bay real estate market.  Unlike just a few years ago when a home might be priced a little higher than market value and the market would catch up to it.  In today's real estate market, especially in the Tampa Bay real estate market, pricing is critical.  If a home is priced above market value today, it is already on life support because prices are still falling and the market train has already left the station. 

The role of the realtor is perhaps more important than in the past many years since sellers may not be aware of the true market conditions, or may be in total denial of the actual market conditions and a professional realtor will provide the dose of honesty needed to get a home priced right and sold.

In the Tampa Bay real estate market, the median sale price of a home in April of 2006 was $220,000.  Today, in the same Tampa Bay real estate area, the median sale price of a home in April of 2011 is $125,000.  Even only one year ago, the median sale price of a house in the Tampa Bay real estate market in April of 2010 was $134,000 and in April of 2011 the mediam sale price of a house is $125,000.  This is a 6.4% decrease in market value in only one year.  In almost every instance, it is foolish for a seller to insist on setting a list price above market value, or above what the house may have sold for only three years ago.  To do so is setting up the seller for failure and will almost surely cost the listing agent time, money and reputation.

Another way to look at price and how competitive it has become is to look at what is on the market today in the Tampa Bay real estate market.  For instance, in the $200,000 to $249,999 price range, there were 1,758 single family homes for sale in April 2010.  Out of those 1,758 houses for sale in that price range, 38 sold in April.  That means that 1,740 did NOT sell.  For most folks, that is a big number and indicates how competitive the market is, and how vitally important it is to price a house correctly.  Failure to do so is almost sure banishment to the lingering death of an expired listing that over six months can cost the seller another 5-10% in value. 

In no price range was the rate of sales compared to listings as high as 8%.  This means in every price category in the Tampa Bay real estate market, more than 90% of the homes for sale DID NOT SELL.

The moral of the story is you can price your home correctly today and get it sold, or you can price it where you "need" it to be, and watch the market pass you by and find better value somewhere else.  This is a harsh lesson.  The current market is harsh.

Act now, be wise and be ahead of the market so when the buyer comes along, you are there and not outside hoping to get a straggler.  PRICE IT RIGHT!!

If you would like pricing information on a neighborhood, visit Sun Bay Associates Market Snapshot for a free and very comprehensive report.

Happy Monday Morning!!  Did you know that in the Pinellas County, FL real estate market, the absorption rate for houses in the month of April was 15.4%.  This means the for every 100 houses on the market in Pinellas County, FL in April, 15 of them sold.  This is the fourth consecutive month that the number of houses sold, or absoprtion rate, in Pinellas County, FL has increased.  Of course, if a house is in the unsold 85%, this is still not a good market.  The good news is that the number of houses being sold is increasing.  The average price of a house sold in April of 2011 was 1.7% less than for a house sold in April 2010, and that is a sign the market has not quite yet stopped declining.  Now, let's see what we have for our Monday Morning Coffee.

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Now for your Morning Coffee!

There are currently only two homes listed in the Multiple Listing Service for Country Woods, Palm Harbor.  These are executive home values.  One is 2894 Turtle Terrace, is a 3,200 square foot home with 3 car garage and is listed for $425,000.  The list price per square foot is $133.  The other home in Country Woods, Palm Harbor is on 2713 Beagle Path Way, is a 3,246 square foot home with a 3 car garage and is listed for $329,900.  The list price per square foot for this executive home is $102. 

For entry into one of the most desirable neighborhoods in the Palm Harbor and Dunedin area, the home on 2713 Beagle Path Way seems to be an exciting bargain.  To learn more about this home, which is listed for nearly $100,000 less than its competition, and has a list price per square foot of $31 less, visit www.2713beaglepath.com.

Country Woods, Palm Harbor is actually in Dunedin, thus has access to the Dunedin boat ramp and the other amenities available to Dunedin residents.  Country Woods also is zoned for the Palm Harbor University High School.  To learn more about the schools in the area, visit Sun Bay Associates recommended links page and find information on schools, recreation, taxes and much, much more. 

Come, check out Country Woods, Palm Harbor.  Live in an executive neighborhood, near to the Pinellas County bike trail, and the fabulous beaches on our coast, including Clearwater Beach, Caladesi Island and Honeymoon Island state park.