Zip Codes 34285, 34292, 34293
By: Robert Goldman, PA, JD, REALTOR®
The number of homes for sale continues to drop. As of May 31st, there were only 32 homes for sale. That’s 8.6% less homes for sale than in April 2012, 25.6% less than May 2011, and 30.8% less than the same quarter one year ago. With 13 homes sold in March, and 9 pending (under contract), the result is a 2.5 month supply of available properties at Pelican Pointe, based on closed sales, and a 3.6 month supply based on pended sales. The available inventory is at its lowest level since the height of the real estate bubble, July 2005, when inventory levels were at a 1.8 month supply. Currently, there is simply a scarcity of homes available for sale. Six (6) to seven (7) months is considered a balanced market between buyers and sellers. At a 2.5 month supply, if this pace continues, prices will likely increase.
Although we’re not quite there yet, prices have certainly stabilized. The median sale price for the first 5 months of this year was $245,000 — in May it was $250,000. However, this modest increase is not so much due to price appreciation, as it is the relative increase in the sale of larger homes. The average sold price per square foot for homes over 2,400 square feet, for the most recent quarter, March to May 2012 was $161 per square foot. It was $183 per square foot for the prior quarter, December 2011 to February 2012. The 12% drop in average per square foot sale price resulted in a 200% increase in sales. For the current quarter, for homes over 2,400 square feet, 3 homes sold. Contrast that with the 1 home which sold on average for the prior quarter. Owners of larger homes have begun to align their expectations with current day reality.
It is fair to say that price stabilization results in decreasing inventory, which will ultimately lead to price appreciation. The uncertainty of economic conditions — local, regional, national and international — will weigh in on how it will play out. I think it will play out well. Florida remains a golden and special place to come to. Our climate, combined with our award winning community here at Pelican Pointe, will always make this a sought after market. Demand is strong, supplies and interest rates are at historic lows, and buyers are plentiful. If you have a home to sell, now is a great time to do so.