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The May 2020 Housing Market Update
Find Out What's Happening in the Pinellas County Real Estate Market
The May 2020 Pinellas County real estate stats are here and as many of us predicted, the lack of inventory along with the COVID-19 Pandemic had a big effect on our market. So let’s get to it…
As you many or may not remember, pending contracts in April were down -45.7%. The month of April was the peak of the COVID-19 lockdown, with closed beaches, restaurants, travel restrictions and more in our state. As a result of pending contracts being down in April, May closed sales were down -46.8% (about the same amount contracts were down the month prior). Simply put, less contracts equal less closings the next month, as the average real estate transaction takes 30-45 days to close once a contract is fully executed.
So what does this mean for our real estate market?
Well, other than a slow down when people were hesitant to leave their homes due to an unprecedented Pandemic, the housing market story in Pinellas County hasn’t changed much. The market has been steadily picking up as people embrace our new normal of wearing face masks, social distancing, and following recommended CDC guidelines.
Despite a decline in closings last month, single family home prices in Pinellas County have remained strong, with the median sale price increasing +5.2% to $285,000, compared to the same time the year before. Due to low inventory levels, home sellers are not having to negotiate much to sell their homes right now, with the average single-family home selling for 96.8% of the original list price, which is almost +1% higher than last year at this time.
Homes are also selling 11 days faster than they were in May 2019 and inventory remains low, with just 2.1 months on hand (a -25% decrease over the year before).
Pending contracts on single family homes in May 2020 were practically flat (a.k.a. the same) to last year, indicating that the number of closings should look much better when the June 2020 stats are released.
For now, our advice to homeowners that are thinking of selling this year is to DO IT NOW before everyone else has the same idea and hundreds of new home listings hit the market. When an resource, such as real estate is scarce, that will be your best chance to get top dollar for it.
For our home buyers, don't get discouraged by rising home prices. The average single family home has increased in price by $14,000 according to the May stats. While this is higher, mortgage interest rates are at all time lows.
(The Payment above is higher than the payment below, despite a change in home price)
For example, last year the payment on a mortgage of $271,000 at a 4.5% mortgage interest rate would have been $1373/month. This year, a mortgage payment on a loan of $285,000 at 3.5% would be just $1280/month. You'd still be paying $93/month less to own the same home at a higher sale price, but at a much lower mortgage interest rate. Our advice, DON'T WAIT, call us to start your home search now.
To see the full Pinellas County Housing Market Report for May 2020, CLICK HERE
Andrea is the Managing Partner of The Sandy Hartmann Group. Andrea was born and raised in the Tampa Bay area and is a licensed Realtor with over 15 years of Marketing and Finance experience, holding ....