PROView - January 2009 - (Page 7) Snapshot of the Condo Market During 2008, the median price level for condos continued its downward spiral. One would think such a trend would lead to an increase in transaction activity. It seems logical that with more bargains around buyers would be willing to enter the market. For the most part that wasn’t exactly the case. In spite of lower prices, the number of sold units remained consistently low. We saw ups and downs last year. By mid-summer it started to look better than it had in the prior 8-month period. The late spring and summer months saw monthly sales between 306 and 351 units sold per month after a 200+/month activity from January through March. The increase didn’t last too long, though, as numbers returned to the 250 to 300 range during the period September through December. Any of those numbers are a far cry from 2003 through 2005 when monthly sales were in the 500s, 600s, 700s – even 800s. The median sales price for condos for the month of December, 2008, was $140,000. Meanwhile, the median listing price was $174,900. Until sellers are willing to lower their prices to the point where buyers are willing to buy that discrepancy may continue. Here’s an interesting fact: currently, 6,593 condos are listed in the MLS, a 17% decrease from a year ago. While that’s an encouraging improvement, it’s still more than double the number of listings from December, 2005, when the figure was 3,306 and even more so from 2003 when the number was 1,599. A look at those that sold shows that consumers currently are buying condos in the lower price ranges. However, there’s been a slight shift. Of those sold in December, 27.5% were in the $100,000 to $160,000 range compared to 36.1% in November. When it comes to price, though, prices do differ depending on where in Pinellas County you look. During the month of December, 18 units were sold in the North Beaches areas. Average sale price: $320,128. Similarly, the average price of 30 sold units in the South Beaches area was $376,460. Contrast those numbers to the average $113,307 among 15 units in Largo and $122,213 among 28 condos in the Seminole area. PINELLAS REALTOR® ORGANIZATION January 2009 7
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