It is indeed a Seller’s Market, with our local Multiple Listing Service, (MLS), reflecting only ONE MONTH’S INVENTORY of properties for sale in Sept of 2021! However, in an article from the Florida Realtors Association dated August 27th, 2021, according to data from Florida Atlantic University economist Ken H. Johnson and Florida International University professor Eli Beracha, Lakeland and the Tampa Bay area were the most overpriced in Florida, both at a little more than 31% above where they should be! Their data came from their analysis of over 100 metro areas, using 25 years of data from Zillow on single-family homes, townhomes, and condos, out of nine metros in Florida. Said Johnson:
“While we’re almost certainly nearing the peak of the current housing cycle, it’s nowhere near as serious as it was more than a decade ago, when Florida homes were overvalued by 60% or more,” Johnson said. “Prices eventually will level off or fall, and recent buyers who want to sell would be hard-pressed to earn their money back.”
Will that happen in our market in the near future? That seems unlikely, with the latest US News and World Report’s list of the top metros in the US for the “BEST PLACES TO RETIRE,” listing 11 Florida cities in the top 20! Indeed, out of the top ten, eight are in Florida, including Tampa as #6! (FYI: Tampa means Tampa Bay, which is annoying for those of us on the Pinellas side of the bay!) In this new COVID-era, the ability to enjoy the great outdoors year-round is even more important than ever before. Being able to enjoy it in the sunshine, with the sand between your toes or out on the water….That is what puts us in the top 10!
September’s local statistics support this supposition. Our market, like our weather, is Hot, Hot, HOT! New Listings in our MLS were almost the same as September of 2020, with a whopping total of 20 additional units for 2021! (Anything more is better, as inventory is perilously low!) The number of SOLD units for September of 2021 also rose very, very slightly. Indeed, it is a difference with no significance number-wise. But the fact that we are seeing a return to 2020 numbers is significant. Having said that, 2020, the year that will be remembered for bringing COVID into our lives, was already a time of grave inventory shortages and rising prices. But, if we look at 2021 numbers only, we see that 6% more homes sold in September than did in August. The most shocking number in the chart above is that the number of Active Listings in September of 2021 was 44% less than in September of 2020… but on an upward trend from August of 2021. The bottom line is that properties are moving quickly in 2021, with the average number of Days on the Market for SOLD properties in September of 2021 being 19. That is 60% less than September of 2020, when it was 48 Days! Here is another fun fact: September of 2021 had an AVERAGE SALES PRICE 17% higher than September of 2020! For a more ‘drilled-down’ view of what is happening in our luxury market, visit this link: https://bit.ly/Sept21LuxuryReport
What do all these numbers mean to you? If you are interested in selling your property, odds are that priced properly, it would sell very quickly, for a GREAT price. As the Florida Atlantic University Economist, Ken Johnson said we cannot count on these unprecedented increases continuing. Indeed, some market correction is bound to occur! For a precise estimate of your property’s value, please give us a call. My Team and I would love to see your home in person and provide you with a Custom Comparative Market Analysis. I am an experienced Broker/Owner with three offices and a robust team of professionals that perform consistently in the top ½ of 1 % of ALL Realtors in Pinellas County! Let us show you what we can do for you! Experience the NextHome Beach Time Realty Difference! Call our office at 727-363-3300.