While listing inventories are still twice what they were when the market peaked in late 2005, year to year they are up less than 10%. December monthly sales of existing homes at 453 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 as well as the peak in late 2005. This is a big change from 2006 when the market simply built inventories and sellers refused to lower prices. Lower home prices and inventories is 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 20 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
Even though listings dropped month to month the condominium market remains the weakest sector in the local real estate market. Buying activity for condos has dropped steadily over the last year and sellers have been forced to lower prices in order to move these surpluses. December condo sales of 228 units is down 30% vs a year ago and 60% below the peak in December of 2005. 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
While prices of individual units continues to drop both the average and mean sales price for condo sales is up sharply year over year. The average sales price of $353,000 is up 28% from a year ago. We explain this statistical anomaly by the fact that upper end buyers are 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 two 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 $254,000 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 is well in to their 3rd rate cut and the market is fully expecting additional cuts. The 30 year fixed currently stands at 5.87% The Florida legislature has passed bills freezing current tax rates to 2005 levels and has proposed a statewide referendum doubling the homestead exemption. Florida legislatures are making a concentrated effort to solve the recent insurance and tax problems that have plagued the local real estate market and put insurers on notice that they won't tolerate further increases and excessive profits at the expense of consumers..
