Saint Petersburg Housing Market Update - January 2024
Overview of the Saint Petersburg Housing Market
Saint Petersburg is currently a seller’s market, which means that demand for homes is outpacing supply. As a result, home prices have been rising steadily over the past year. Specifically, the median sold price in Saint Petersburg has increased 10% year-over-year to $429,590. Meanwhile, the number of homes for sale has decreased slightly, putting sellers in the driver’s seat when it comes to home sales.
However, it is still possible to get a good deal on a home in Saint Petersburg if buyers act quickly when new listings hit the market. About 68% of homes sold below asking price last month, presenting opportunities for buyers who are ready to move fast on a home they like
Home Prices in Saint Petersburg
Overall, home prices in Saint Petersburg have appreciated significantly over the past year. The median sold price has risen 10% since December 2022 to reach $429,590. In addition, prices per square foot are up to $334.
Specifically looking at changes by bedroom count:
- 1 bedroom median sold price: Increased 2.9% to $179,900
- 2 bedroom median sold price: Increased 7.7% to $358,400
- 3 bedroom median sold price: Increased 8.1% to $469,900
- 4 bedroom median sold price: Increased 8.4% to $677,300
- 5+ bedroom median sold price: Increased 8.4% to $1 million
Furthermore, Saint Petersburg home prices have risen much more than nearby cities over the past year:
- Kenneth City: Increased 85.7% to $325,000
- South Pasadena: Increased 2.9% to $360,000
- Pinellas Park: Increased 0.5% to $317,500
- Gulfport: Decreased 0.6% to $395,300
Clearly, the Saint Petersburg housing market has seen substantial growth, significantly outpacing some neighboring areas.
Homes for Sale in Saint Petersburg
The number of active homes for sale in Saint Petersburg decreased 2.1% from November 2023 to December 2023. As of December, there were 1,780 homes for sale across all bedroom counts.
Specifically:
- 1 bedroom listings: Decreased 4.1% to 162
- 2 bedroom listings: Increased 0.3% to 633
- 3 bedroom listings: Decreased 3.1% to 662
- 4 bedroom listings: Decreased 4.5% to 232
- 5+ bedroom listings: Decreased 1.1% to 91
The limited number of homes available for sale is putting upward pressure on prices and giving sellers an advantage over buyers.
Buyers need to be ready to move quickly when a home meeting their needs hits the market.
Home Sales in Saint Petersburg
Closed home sales in Saint Petersburg decreased 3.7% from November 2023 to December 2023. There were 316 total homes sold last month.
In terms of sold prices compared to list prices, about 68% of homes sold for less than the initial asking price in December. This indicates there are still deals for buyers who are vigilant. Specifically:
- 214 homes sold below asking
- 62 homes sold at asking
- 40 homes sold above asking
Time on Market in Saint Petersburg
On average, it took 44 days for a home to sell in Saint Petersburg in December 2023. This is a significant increase of 15% compared to the average of 38 days on market in December 2022. The rising time on market indicates the housing market is beginning to slightly favor buyers again after over a year as a sellers’ market.
Looking at the breakdown:
- 175 homes sold in under 30 days
- 100 homes sold between 30 and 90 days
- 41 homes took longer than 90 days to sell
While times on market are up on average, many homes are still selling rapidly in under 30 days, particularly those that are aggressively priced. Buyers still need to be ready to take quick action when they find the right property.
Median List Prices in Saint Petersburg
As buyer demand continues outpacing available inventory, median list prices have increased substantially over the past year. The median list price rose to $417,000 in December 2023, up from $345,000 in December 2022 – a 21% year-over-year increase.
With higher list prices and more competition among buyers, shopping for a home in Saint Petersburg remains a challenge. Working with an experienced local real estate agent is key to successfully navigating the market.
Mortgage Rates in Saint Petersburg
Along with rising home prices, mortgage rates have increased significantly over the past year, impacting affordability. The average 30-year fixed mortgage rate currently sits around 6.5%, up from just 3.1% in January 2022 but lower than October rates of 8%. Although this major rate hike has priced some buyers out of the market, the fact that rates are coming down fast is signaling a more intense sellers market where prices are expected to soar.
For buyers still shopping in the current market, securing a low mortgage rate is key to maximizing affordability. Working with an experienced mortgage lender to explore different loan products and lock in the best possible rate for your financial situation is crucial before making an offer.
The higher monthly costs associated with increased mortgage rates have also led some potential sellers to wait to list their homes. This further constrains inventory levels in the Saint Petersburg area. However, with signs of rates moderating in 2023, more sellers may be motivated to act this spring.
Impact on Rental Market
With the competitive sales market and declining affordability in Saint Petersburg, the rental market has also been impacted. Landlords have substantial pricing power as more residents are priced out of homebuying and need to rent instead.
Over the past year, average rents in Saint Petersburg have increased over 10%. One bedroom apartments now rent for $1,750 per month on average, while two bedroom units average $2,100. Vacancy rates have plummeted as well.
For renters looking in early 2024, finding available units at affordable prices will be a major challenge. Working with a knowledgeable real estate agent can help renters move quickly when units meeting their criteria become available. Those planning to renew a lease should expect higher rents from their landlords.
The Saint Petersburg rental market shows no signs of cooling given the ultra-tight sales market. Renters should brace themselves for a competitive, expensive search process requiring compromise.
Conclusion
In summary, the Saint Petersburg housing market slightly favors sellers due to rising prices and limited inventory. However, properly priced homes are still selling quickly. Buyers willing to act decisively can still find opportunities, while leveraging local expertise is key. The market looks to remain competitive heading into 2024.
