While listing inventories are still twice what they were when the market peaked in late 2005, we have seen a steady decline in listing which are down 7%. June monthly sales of existing homes at 639 units again is less than half of what it was at the peak but is actually up year over year. Both the average and mean price of homes sold is down 15% vs. year ago. This is a big change from 2006 when the market simply built inventories and sellers refused to lower prices. Lower home prices and inventories are exactly what is needed to turn the current market. As sellers realize they can't get what their home was worth at the peak they're forced to either reduce the price or take it off the market. With 15 months of inventory we are still solidly in a buyer's market but there are signs of stability, and plenty of opportunities.
Clearwater Area Single Family Homes For Sale Vs. Sold
Condo listings continue to drop and are now down over 18% vs. year ago. Buying activity for condos has improved steadily throughout the year as buyers take advantage of developer incentives and distressed sales to capture prices not seen in over 5 years. June condo sales of 290 units is unchanged vs a year ago but purchase contracts are well above year ago levels and monthly closing. We continue to see builders cancel projects and reduce prices on existing units in order to reduce inventories. Some will pay your entire first year expenses including mortgage, taxes,insurance and association fees. You can now buy a completely updated 3 bedroom 2 bath in a gated community, 10 minutes from beautiful white sand beaches below $160,000!
Clearwater Area Condos for Sale Vs. Sold
Condo prices continues to drop and the average sales price for condos is down over 20% on the year. We continue to see upper end buyers taking advantage of the big discounts offered by developers which is pushing up the average price of units sold. We estimate that current incentives represent a 25 to 30% discount to last years market. We are also seeing buyers who are defaulting on contracts and walking away from 20% deposits leaving developers with units they thought were sold. In most cases developers are willing to reduce prices 20% or more in order to move the unit.
Average price of condos for sale vs. sold
The asking prices on homes continues its three year slide while actual sales prices dropped year over year. With high inventories, motivated sellers are forced to aggressively price their homes in order to sell their properties. The average sales price of $247,000 is 15%; below year ago levels. Just another sign that sellers are being forced to get real or get lost!
Average price Single Family Homes for Sale Vs. Sold
The Fed has cut rates about as far as it can and the market is now expecting it to pause and the next move is likely to tighten in order to fight off inflation. The 30 year fixed currently stands at 6.6% The continuing mortgage crises has increased rates and limited availabilities to the mortgage market in spite of the Feds efforts to lower rates. Lenders who got burned on defaults and foreclosures are now requiring higher credit ratings and full documentation in order to mortgage properties. If you plan to take advantage of the current market make sure you've got your financing in place.
