St. Petersburg Housing Market Forecast 2024: Will it Crash? – Norada Real Estate Investments

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The St. Petersburg housing market is currently in a hot state, with home prices rising at a rapid pace. There are several factors driving the hot housing market in St. Petersburg. St. Petersburg is one of the fastest-growing cities in the United States, and its population is expected to continue to grow in the coming years. This increase in demand for housing is driving up prices.

The supply of housing in St. Petersburg is limited. This is due to a number of factors, including the city’s rapid growth and the fact that much of the land in the city is already developed. The limited supply of housing is also contributing to rising prices.


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It is impossible to say for certain whether or not the St. Petersburg housing market will crash in 2024. However, there are a few factors that could lead to a crash. First, the interest rate environment could change. If interest rates rise, it will become more expensive to borrow money to buy a home. This could lead to a decrease in demand for housing and a decline in prices.

Second, the economy could weaken. If the economy enters a recession, it could lead to job losses and a decrease in incomes. This could also lead to a decrease in demand for housing and a decline in prices.

However, it is important to note that the St. Petersburg housing market has been very resilient in the past. The city has experienced a number of economic downturns, but the housing market has always recovered. This is because St. Petersburg is a desirable place to live, and there is always a strong demand for housing in the city.

Current St. Petersburg Housing Market Trends

The housing market in St. Petersburg is undeniably competitive, with homes receiving an average of 4 offers and selling in approximately 25 days. The recent data by Redfin indicates a noteworthy surge in the median sale price of homes, standing at $431K, marking an 11.9% increase compared to the previous year. Additionally, the median sale price per square foot has risen by 10.4%, reaching $323.

In November 2023, St. Petersburg witnessed a remarkable 11.9% year-over-year increase in home prices, with a median selling price of $431K. The pace of home sales has accelerated, with homes spending an average of 25 days on the market, down from 32 days the previous year. The total number of homes sold in November reached 359, a notable increase from 320 homes sold in the same month last year.

Market Dynamics

Interestingly, certain homes in St. Petersburg are experiencing heightened demand, attracting multiple offers. On average, homes sell for approximately 3% below the list price and go pending in around 24 days. However, hot properties, in high demand, can sell for around list price and go pending in a mere 6 days.

Key Metrics

  • Sale-to-List Price: The current sale-to-list price stands at 96.8%, reflecting a 0.4 point year-over-year increase.
  • Homes Sold Above List Price: Approximately 10.6% of homes are sold above the list price, showing an 8.2 point decrease year-over-year.
  • Homes with Price Drops: 37.7% of homes have experienced price drops, indicating a 2.3 point year-over-year decrease.

Is It a Buyer’s or Seller’s Housing Market?

The current data suggests that St. Petersburg leans towards being a seller’s market. With homes receiving multiple offers and spending a relatively short time on the market, sellers are in a favorable position.

For potential buyers, the current market dynamics indicate a challenging environment. With homes selling quickly and prices on the rise, careful consideration and timely decision-making are crucial for those looking to make a purchase.

St. Petersburg Housing Market Forecast for 2024

The key question on everyone’s mind is whether the St. Petersburg housing market is susceptible to a crash. While past performance is no guarantee of future outcomes, the current data paints a picture of a stable market. The median sale to list ratio and the percentage of sales over list price indicate a balanced and competitive market.

As with any market, external factors such as economic conditions and interest rates can influence its trajectory. It’s advisable for potential buyers and sellers to stay informed and consult with real estate professionals for the most accurate and up-to-date insights.

Key Statistics

  • Average Home Value on Zillow: $372,493 (up 3.2% over the past year)
  • Days to Pending: Approximately 24 days

Inventory and Listings

  • For Sale Inventory (as of December 31, 2023): 1,760 homes
  • New Listings (in December 31, 2023): 493

Median Sale and List Prices

  • Median Sale to List Ratio (as of November 30, 2023): 0.977
  • Median Sale Price (as of November 30, 2023): $361,667
  • Median List Price (as of December 31, 2023): $411,632

Market Dynamics

The St. Petersburg housing market has shown resilience, with a 3.2% increase in the average home value over the past year. Homes are moving quickly, typically going pending in around 24 days. This indicates a robust demand for real estate in the area.

Sales Performance

  • Percent of Sales Over List Price (as of November 30, 2023): 14.6%
  • Percent of Sales Under List Price (as of November 30, 2023): 68.6%

Investing in the St. Petersburg Real Estate Market

1. Population Growth and Trends

St. Petersburg is currently experiencing population growth, positioning it as one of the fastest-growing cities in the United States. This surge in population contributes significantly to the demand for housing, creating a favorable environment for real estate investment.

2. Economy and Jobs

  • Steady Economic Growth: The city’s economy is on a steady upward trajectory, providing a stable foundation for real estate investment.
  • Job Opportunities: The flourishing economy translates into increased job opportunities, further driving the demand for housing in St. Petersburg.

3. Livability and Other Factors

  • Desirability: St. Petersburg is renowned for its high livability, making it an attractive destination for individuals and families seeking a quality living environment.
  • Infrastructure Development: Ongoing and planned infrastructure developments enhance the city’s appeal, positively impacting real estate values.
  • Cultural Attractions: The city’s cultural attractions contribute to its charm, making it a sought-after location for residents and potentially increasing property values.

4. Rental Property Market Size and Growth

The rental property market in St. Petersburg is substantial, presenting a lucrative opportunity for investors:

  • Current Market Size: The rental property market is sizable, catering to a diverse tenant pool.
  • Growth Potential: With the city’s population growth and economic prosperity, the rental market is poised for further expansion, offering long-term investment potential.

5. Other Factors Related to Real Estate Investing

  • Supply and Demand Dynamics: The limited supply of housing in St. Petersburg, coupled with robust demand, creates a favorable environment for property appreciation.
  • Historical Market Resilience: St. Petersburg’s housing market has shown resilience in the face of economic downturns, instilling confidence in investors regarding long-term stability.

Considering the city’s population growth, thriving economy, high livability, and the potential for rental property market expansion, St. Petersburg emerges as a sound option for real estate investors. However, like any investment, thorough research, and a careful assessment of individual financial goals and risk tolerance are crucial before making investment decisions.


References:

  • https://www.zillow.com/home-values/26922/saint-petersburg-fl/
  • https://www.redfin.com/city/16164/FL/St-Petersburg/housing-market

This post was originally published on 3rd party site mentioned on the title of this site

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