A home represents the largest single expenditure for most people. It's critical to their financial well being that they do no...
A home represents the largest single expenditure for most people. It's critical to their financial well being that they do not overpay. That's why when acting as a buyer's agent I try to inform my clients fully about comparable price statistics and trends. Recently I sent a client the MLS statistics for Pinellas County actual "solds" that showed the median condo/townhome closing price for June 2016 at 11.2% over June 2015. My client happens to be looking for a modest priced over-55 condominium preferably in the Northeast or Gateway areas of St. Petersburg. Not surprisingly, he asked me if this suggested we might again be in a "bubble" at a new height of the market. Here is my response:
St Petersburg has become a very desirable city, and the only thing that bothers me about the burg's economy is the relative lack of well paying jobs; However, that impacts all age condos and especially single family residences more than over 55 communities and other small condos. This area has for decades understandably been a popular retirement destination. Now that baby boomers are retiring in droves, that should positively impact modest priced condo prices locally.
Luxury condo prices in St Pete's downtown area have doubled and so have single family homes in premier neighborhoods since the local real estate market bottom back in 2010 or so. However, that has not been true of most over-55 modest condos in and around St Pete. It is just in the last year or so that their prices have begun to rise in percentages somewhat comparable to single family homes.
Here are some comparative median selling price figures that provide some perspective:
Single Family Homes Condos/Town homes
January 2013: $122,250 $ 88,500
June 2016: $229,000 $ 149,000
These figures are for all of Pinellas County and are the median (not average) sales price. They show a 68% increase for condos and townhomes and an 87% increase for single family residences during the last 3 1/2 years. Keep in mind that all real estate is highly local. An important part of due diligence for any buyer is a careful analysis of actual sales in and around the particular area or complex before making an offer.
My feeling is that over 55 condos (and other 1 bedroom condos) in and around St. Petersburg have more room to rise in value. This is partly because prices hardly rose for about five years between 2009 and 2013, That's assuming, of course, a continued decent economy that allows retiring boomers to sell readily their homes in the North before they move down here.
But that's all just my opinion. No one including the "experts" can really predict future prices with any certainty. Virtually no one predicted the 2009-2010 housing crash. Over time, however, housing has been a good investment so long as the buyer did not pay too much in the initial purchase or go over his/her head to get in.
