We’ve been watching the positive signs for some time now, but according to national and St. Petersburg – Tampa area research, home prices are up almost eight percent over last year while some Realtors® claim the increase is more like 20 percent. Add to that a decrease in the average “time on market” from 67 days in 2011 to 41 currently AND interest rates at 60-year lows and a rosier picture appears, especially for sellers.
It’s a simple case of supply and demand. According to a recent MarketWatch.com article, for the first time in several years the demand for new and used homes has exceeded the supply. Pricing stability and even increases are already a reality.
For buyers the message is clear…the days of putting off the decision to purchase a new home in order to get a better price are over.
According to the Greater Tampa Association of Realtors, there’s been a 34 percent decrease in the number of homes currently on the market compared to last year, and the overall inventory of homes has declined from a 10-month supply to just 5.5 months in that same period. As a result, buyers are pulling the trigger 20 percent faster than last year, and the gap between asking and selling prices tightened up significantly.
In Pinellas County, the picture is just as optimistic. The Pinellas Realtor Organization recently reported that median home prices AND sales increased 16 percent over last year.
All this bodes well for the St. Petersburg-Tampa economy. As property inventories decrease, an increase in new home construction is sure to follow. Subsequently, jobs will be created, suppliers’ sales will grow, demand for home furnishings will strengthen and economic recovery will continue to be a reality.
The opportunities to buy or sell a home in the St. Petersburg-Tampa area abound, and there’s never been a better time to become a homeowner. There’s also never been a better time to live in or relocate to the Tampa Bay area.
Chris Hounchell & Associates is the leader in general real estate, pre-foreclosure, short sale and foreclosure markets in the Pinellas County area. For more information, contact Chris today at 727-642-9107.