What Do January Market Statistics Say? When Do I Buy???

The January Market Statistics for Pinellas County

are out and the full report is posted on our website. There are SO MANY people sitting on the sidelines reluctant to make a purchase. The media continues to be negative and buyers anxious to own property in Tampa Bay, whether as a second home or as a relocation, simply do not know whether to take the plunge.
With so many baby boomers nearing retirement… and the country experiencing one of the most brutal winter seasons this year… Florida has a lot of people anxious to not miss out on living the Florida lifestyle! Prices have reached unprecedented lows and over the last several months we have seen the results. We have targeted HOT DEALS for our clients and email them out within a day or so of them going on the market. It is amazing how many of these are under contract before the week is out! That is telling us something. The pent up demand is staggering. When you realize that in 2004 and 2005 over 1000 people were moving to Florida a day, once the pendulum does swing, it will be HUGE!
We keep a close eye on this chart and the Absorption Rate*… looking for trend lines. Look at the latter half of 2009 into 2010. There was a great deal of positive momentum! So what changed in June of 2010??? How about the understanding of how serious the BP oil spill in the gulf was? It took through the rest of the summer and beyond to cap the flow and throughout the world, people looked on in horror that beautiful Florida was now tarnished. It didn’t matter that not one drop of oil reached our area. It was the PERCEPTION.
Our prediction is that it will unfold just like that. When the PERCEPTION changes (and the media says now is the time), there will be a feeding frenzy. There are a LOT of sellers out there not willing to sell at these current prices. Once this distressed inventory runs out, we will go to the owners willing to sacrifice what they have in their property. From there, we have those who won’t. THESE DISTRESSED SALES RIGHT NOW ARE WHERE THE OPPORTUNITIES ARE!!!
Our recommendation… contact The PURTEE Team and get on the radar. What you are seeking may come on the market and be gone without you ever knowing about it.
*Absorption (Inventory Turnover) is determined by dividing the number of units sold during the month by the total number of listings in the MLS (Multiple Listing Service)

Market Trend – January 2010 Statistics Just In!

As we continue to discuss where the market is heading, the best amunition we have is through the statistical data that supports the trends we are experiencing. The shift to an upturn in the market comes with a combination of 1) Decreasing Inventory; 2) Increase In Sales Activity; and 3) Increase in Units Sold. As soon as they are available, we post the Monthly Statistics on our website with links from our Home Page.

The new January Market Activity Report just came out today. It is provided by the Pinellas Realtor Organization and features information about new and active listings, units sold, average and median price levels, housing affordability and other data. You can use the link to review the entire report, but I am focusing on the 3-year comparison of the three things we are following above. Here is where January 2010 stands:

Active Listings: ’08-21,223 ’09-18,193 ’10-14,263 (down 21.6% from 2009!)

*Pending Contracts: ’08-735 ’09-900 ’10-1,478 (up 64.22% from 2009!)

Units Sold: ’08-577 ’09-608 ’10-742 (up 22% from 2009!)

The extreme jump in the percentage increase in *Pending Contracts is due to the amount of Short Sales which are requiring longer time to close. In a normal market, most of those would have closed. Many of these sales are cash offers as financing is still difficult. As seasoned Realtors®, each one of us with The PURTEE Team work diligently to keep abreast of the market, its trends and financing options. Never hesitate to call on us for advice!