The Beachwise Real Estate Housing Market Analysis. What you need to know about the housing market for the summer of 2023 and more for the Clearwater and St. Pete Beach markets!
So far 2023 has been a little challenging. Stubborn inflation, mortgage rates and possible recession have kept most sellers and buyers wondering…
Will rates go down?
Will home prices and sales decline?
Will the increasing demand for beach real estate keep pushing prices higher?
For answers to these questions and more we would like to share with you our predictions for the summer of 2023. Here is what you need to know.
Mortgage Rates
We expect mortgage rates to be stay in a range of 6.25% to 7% heading into the fall. If mortgage rates stabilize, we could see more buyers coming back into the market.
What will happen with home sale volume?
Historically summer months are the slow season for real estate in this market. Markets inland are more active. Home sale volume most likely peaked in 2022 during the buying frenzy brought on by the pandemic. The volume has dropped a bit since, but the market is still healthy here.
Will home prices drop?
We expect home prices in our market here to experience modest growth the remainder of the year. One reason is that a large percentage of buyers in this market are not as interest rate sensitive as other markets. In some areas increases in mortgage rates can price buyers out of the market which limits demand. Supply and demand are another reason we expect modest gains. Supply levels are back up to 5-year averages in most cities. Demand for real estate will remain high in most areas of the County especially near the water.
Will the housing market crash?
We do not believe a crash is likely for these reasons; tighter lending standards than 2008 means less foreclosures and defaults, most owners have low fixed rates so if rates go up, they still have fixed payments unlike the ARM loans of 2008, owners have record levels of equity which keeps owners above the water if prices do come down a bit.
Bottom line
Keep in mind our analysis is a crystal ball. Our predictions assume the federal government does not default on its debt and can manage inflation without continuing to increase the cost of borrowing. If this occurs rates will spike and put pressure on prices downward. The bottom line is that you should do what is best for you and your financial situation. Real estate on and near the beaches of Pinellas County have advantages that most of the country does not. When other parts of the country are pulling back the Tampa-Clearwater-St. Pete area has plenty of room to grow.
KEY STATS and HOUSING DATA
St. Pete and Dunedin reaching 10 year highs!
Summary for the Clearwater Beach, Dunedin, and St. Pete Beach housing markets. Single family homes in the 33767-zip code are close to two-year lows. Prices have come down 46% from one year ago as inventories for single family homes are back to 5-year average levels.
Condos in Clearwater Beach stay on the market longer but well below pre Covid levels. Condo prices were up 1% from one year ago.
The Dunedin and St. Pete Beach housing markets are at 10-year highs in pricing for single family homes and condos. Condos in St. Pete are staying on the market considerably longer while still managing to gain in price.
The city of Clearwater 33756 and 33755 areas have growth potential as new development and demand start to rise. The median price for a single-family home in this market is just $390,000.
For additional analysis on a particular city, community, or any other type of property just send and email to stephen@beachwiserealestate.com for a custom report.
Clearwater Beach, Sand Key, Island Estates 33767
CONDOS
Current median sold price $670,000
Up .1% YOY
Down 27% from previous month
The two year low $574,000 in October 2022
The two year high $819,000 in April 2023
Condos have been staying on the market an average of 53 days
One year ago the average was 21 days
The two-year high was reached in June 2021 at 66 days
Prior to Covid the average was over 100 days 10 out of 12 months
There were 34 total condo closings in May
One year ago there were 53
The two-year low is 16 in November 2022
New condo listings in May rose to a two year high of 67
One year ago there were 54 new listings
The two-year low was 29 in October 2022
Months of supply rose to a two year high of 5.83 months up 579% from last year
In January of 2022 there were only .37 months of supply.
Clearwater Beach, Sand Key, Island Estates 33767
SINGLE FAMILY HOMES
The current median price for a single-family home in 33767 is $910,000
This is down from $1,600,000 the previous month and down 46% a year ago
The two-year low is $874,450 September 2022
There were only 7 single family home closings in May
The two year high for closings is 11 in March 2023
There were only 5 new listings in May
The two years high for new listings in a month was 12 in June 2022
Sellers are getting 87% of the original listing price down 6.2% YOY.
Months of supply rose to 5 months
The two-year high is 5.4 months February 2023
DUNEDIN 34698
SINGLE FAMILY HOMES
Median sale price $537,500 a 10 year high up 3.5% YOY
The two year low $390,000 August 2021
High demand and low inventory are helping to fuel price highs in Dunedin. There are only .98, less than one months of supply for single family homes in Dunedin
The two-year high was 1.65 months in December 2022. The last time inventory broke over 2 months was July 2020.
The average days on the market in May for single family homes is 31
One year ago the average was 11 days which is also the two year low
Total closed sales were in line with two-year averages. In May there were 52 closings. One year ago, there were 54.
There were 41 new listings in May, down from 55 one year ago
The two-year average is 43
ST. PETE BEACH, TREASURE ISLAND 33706
Condos
Median sale price $625,000 is a new 10 year high up 21.8% from one year ago
The two year low is $390,000 September 2021
Sellers receive and average of 91.3% of the original list price down 8% YOY
The average days on market for a Condo in this market for May is 64 days
The two year low was 12 days May 2022
Months of supply hit a 5 year high in May at 4.93 months up 498% from one year ago when it was at .82 months
The 5 year low was .40 months in December 2020
There were 45 condo closings in May up 2.3% from one year ago
There were 52 new condo listings down 5.5% from one year ago
ST. PETE BEACH, TREASURE ISLAND 33706
Single Family Homes
Median sale price $1,375,000 up 71% from one year ago and just shy of the 10-year highs
The two year low is $800,000 May 2022
Sellers receive and average of 92.3% of the original list price down 7.8% YOY
The average days on market for single family homes are 38 days for May
The two-year high was 67 days in April and the low was 6 days November 2021
Months of supply increased 310% from one year ago to 5.47 months
The two-year low was .47 back in January 2022
There were 27 single family closings in May, up 17.4% from one year ago.
There were 39 new listings up 50% from one year ago
Pinellas County
How do these communities compare to price trends for all of Pinellas County combined? Communities on and near the beach have different dynamics so we take the time to separate them for our analysis. Below is a price trend history for all of the county, single family in purple and condo in red.
For additional analysis on a particular city, community, or any other type of property just send and email to stephen@beachwiserealestate.com for a custom report.
Vivian and Tom Smith, Kristin Vincelli