Pinellas County Florida home sale strengthen

The Pinellas County Board of Realtors reports a growing level of activity in September.Single family home sales increased +23.6%, median sales price up +7.3%,  and housing inventory down -15.7%.
Other barometers showed closed sales increasing to 534 from 435 (+22.8%) and days on market declining from 78 to 52 days ( -33.3%). These all continue to point to a growing rate of recovery in
the Pinellas County housing market.

Housing sales continue to improve

The National Association of Realtors reported the sale of existing homes grew 7.8% in August, extrapolating to a rate of 4.82 million annual home sales. New construction also continued showing strength.

Housing may lead U.S. Spending Upwards

There is the potential for household purchases to support a growth in spending. The deflating prices of homes has had a negative impact on the wealth effect spending formula. Housing has been a drag on this economic measurement since 2008. Signs of the housing recovery were reflected in rising home prices, and the highest confidence among U.S. homebuilders in 6 years. Michelle Meyer, senior economist at Bank of America, sees housing adding a positive .1 percentage point of spending, as opposed to a  negatvie  .9 percentage point drag in the past.

Appraisals moving upward

It is the general consensus of agents in the Tampa Bay market that appraisals are moving upwards. Recently, a  2/2 condo in Palm Harbor appraised for $85,000, when the last two 3/2 units in the
same complex sold for $77,000 and $81,000. Lower inventories, location, and condition seem to
be having more impact now with appraisers. Nice clean homes coming on the market are being
scoffed up by buyers anxious to take advantage of current pricing levels, and lower cost mortgage
money. This is another sign things are improving in the Tampa Bay real estate market.

Mortgage rates remain steady

The rate of a 30 year Freddie Mac loan remained at 3.55% last week. In July, the rate fell as low
as 3.49%. The average rate on a 15 year note fell to 2.85%. These are historically low rates.

Buyers feeling low inventory issues

Agents in the Clearwater area are finding it more difficult to locate homes for their buyers. Currently, there is less than 2 months supply of nice homes in the price range of $75,000-$300,000...that are not
a short sale or bank owned property. This situation has resulted in new listings gettting multiple offers within a day or two of coming on the market. Buyers are finding it harder to secure new homes as the market "adjustment"  is moving more in favor of sellers than buyers at this. We have been in a buyer's market for the past 4 years. This adjustment will also bring higher resale prices for the
sellers. We are beginning to see appraisals coming in higher than we might have anticipated.
Appraiser's are factoring into the appraisal the market pressure that is developing. This is a welcomed change as the market begins to "rebalance itself" into more normal patterns.