Housing Costs Up 2022-10-13

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
October 13th 2022 
 
Housing Still
Driving
Inflation
 
The cost of renting a primary residence climbed by a brisk 0.8 percent over the past month and was up by 7.2% in the year through September. The Federal Reserve combines this with “Owners Equivalent Rent”, a gauge that approximates how much it would cost Americans to rent the house they own. OER is determined by a monthly survey of consumers who own a primary residence. The survey asks how much consumers would pay to rent instead of own their home. OER has climbed by 6.7 percent over the past year.
 
Mortgage Rates
Resume Their Climb
 
Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002. We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important for the economy and the housing market.
 
 
44%
Residential Sales
for the last two
weeks in
Pinellas County
have been
CASH deals
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Pinellas County Update 2022-10-06

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
October 6th 2022 
 
The Pie
is Getting
Smaller
 
Take a look at our market here in Pinellas County for the last 7 Days compared to the same period last year.

The number of single-family home sales for the week is down 60% while the number of condo sales is down 66%.
 
 
Dollar volume in single-family home sales is down 50% and dollar volume in condominiums in Pinellas County is down 59%.
 
 
Average sale prices are still up 25% for single-family homes and up 21% for condos year over year.
It’s important to note that the increase in sale price we’re seeing now occurred in the beginning of the year. The median sale price is down 3.8% since the peak in May of this year.
 
 
It’s no secret… The United States is experiencing the highest inflation rate we’ve seen in 40 years. What can Jay Powell do? (Click to watch video)
 
Mortgage Rates
Decrease Slightly 
 
Mortgage rates decreased slightly this week due to ongoing economic uncertainty. However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential homebuyers.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 
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Market Snapshot 2022-08-25

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
August 25th 2022 
 
Pinellas County
 
Sold prices are up from the same time last year but the month to month increase is flat. There is definitely a drop in the number of properties sold. 
 
Mortgage Rates
Increase
 
 
The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market. Home sales continue to decline, prices are moderating, and consumer confidence is low. But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Gulf Front Condo Market 2022-08-12

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
August 12th 2022 
 
Gulf Front Condo
Market Update
Median Price
per
Square Foot
 
Median prices of Gulf Front Condos in Pinellas County continued to climb this year and seem to have peaked in May. We have seen a flattening in the market this summer and a 3.4% decline in the median sale price from June to July. In spite of this, prices remained 25% higher this July compared to July of 2021.
 
Number of Units
Sold
 
The number of units sold in 2022 is down 34% year over year. Buyers have a bit more to choose from this summer as more sellers list units for sale but supply is still short. The increase of supply along with a moderation of prices indicates we may be headed toward a more balanced market.
 
 
 

73% of all Gulf Front Condo
sales year to date have been cash.
 
 
Mortgage Rates
Jump Up
 
The 30-year fixed-rate went back up to well over five percent this week, a reminder that recent volatility remains persistent. Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market. Declines in purchase demand continue to diminish while supply remains fairly tight
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Fed hikes rate by .75% 2022-07-28

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
July 28th 2022 
 
Fed increases rate
for the fourth time this year
 
Taking aim at stubborn inflation, Jerome H. Powell Federal Reserve announced a rate hike of 0.75%. yesterday. That is the fourth rate increase this year by the Fed. But if you still think that means mortgage rates moved higher, think again. The market was already expecting a 0.75% rate hike. Mortgage rates may readily ignore a Fed hike on the day it is announced, but they remain very interested in Fed rate hike expectations.
 
 
Mortgage Rates
Down Slightly
 
Purchase demand continues to tumble as the cumulative impact of higher rates, elevated home prices, increased recession risk, and declining consumer confidence take a toll on homebuyers. It’s clear that over the past two years, the combination of the pandemic, record low mortgage rates, and the opportunity to work remotely spurred greater demand. Now, as the market adjusts to a higher rate environment, we are seeing a period of deflated sales activity until the market normalizes.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Sellers’ expectations lag reality 2022-07-15

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
July 15th 2022 
 
Sellers lowering expectations
 
Home sellers’ expectations often lag reality when the real estate market starts to slow down, and those over-exuberant expectations often show up in the number of sellers who lower the price of their listing.

According to a study of June home listings by Redfin, the number of sellers lowering their asking price spiked notably higher in June 2022 compared to June 2021. In the eight Florida metros included in the study, the range ran from 44.5% of Tampa sellers down to 19.8% of Miami sellers.
 
Looking at our Pinellas coastal markets (beaches and near beaches) 39.8% of active sellers listed have reduced their asking price in the last 30 days.

Closed prices of homes/condos sold within the last 30 days in our coastal markets are still up 8 tenths of 1% month over month and are up 15% from the same time last year.
 
 
Mortgage Rates
Shift Back Up 
 
Mortgage rates are volatile as economic growth slows due to fiscal and monetary drags. With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Climate change shlimate change 2022-07-07

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
July 7th 2022 
 
Purchases of vacation homes
with high flood, storm and/or heat risk surged over the past two years
 
Many pandemic homebuyers purchased vacation homes, which are frequently vulnerable to natural disasters. In 2020 and 2021, purchases of second homes with high flood risk rose 45% from the prior two-year period (2018-2019), according to ClimateCheck data and public housing records. There were also significant increases in purchases of second homes with high storm risk (40%) and high heat risk (39%). Warm weather and proximity to the beach over-ride avoiding natural-disaster risk for vacation/second home buyers. Miami and Tampa Bay are the top second home markets in the United States.
 
 
Mortgage Rates
Drop 
 
Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise. While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Tampa more popular with relocating buyers 2022-06-30

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
June 30th 2022 
 
Tampa and Miami
hold top spots
for relocation
 
Miami and Tampa topped the list of most popular destinations for homebuyers moving from one metro to another in April and May measured by net inflow. 
 
Tampa is more popular with relocating homebuyers largely because it’s relatively affordable, with the typical home selling for $370,000 in April. Although Tampa prices rose nearly 28% year over year, they were still well below the national median of $424,000.
 
Tampa had a net inflow of more than 11,000 homebuyers in the first quarter, up from roughly 7,600 a year earlier and about 4,000 two years earlier. The top feeder market is New York.
 
 
Mortgage Rate
Increase Paused 
 
The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession. This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Available Listings are up 29% 2022-06-23

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
June 23rd 2022 
 
More Listings
in the 
Tampa Bay Market
 
 
Buyers have more listings to choose from in our Tampa Bay market. Available Listings are up 29% and Pending Sales are down 11% from the same time last year. But it’s still a sellers’ market and we are a long way from a balanced market.
 
 
Mortgage Rates
Continue to Move Up
 
Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year. The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales. However, in reality many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.
 

Price reductions are up 2022-06-16

 
Gulf Coast Market Update
 
Gulf Coast
Real Estate Update
 
June 16th 2022 
 
Price Reductions
Are Up
 
Nationally Price Reductions Jumped by 74% in May from April, and by 69% from May last year, in a sudden and massive U-turn from the very low levels last year and earlier this year.

Price reductions in our Coastal Markets in Pinellas County are trending up as well. 32% of sellers of residential listings with a current status of available or pending contract have reduced their list price.

To put things in to perspective; consider the price of Sold residential properties in our Coastal Markets is up 18% from a year ago and up a staggering 53% from 2 years ago.
 
 
Mortgage Rates Surge
on Inflation Expectations
 
After little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data. The housing market is incredibly rate-sensitive, so as mortgage rates increase suddenly, demand again is pulling back. The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home.
 
 
What’s For Sale
 
 
 
 

Doiron Realty Services
Pete Doiron
Broker

13800 Park Blvd. Suite 207
Seminole FL 33776
727-391-2829
 
 
© 2022 Doiron Realty, Inc.