Pinellas County home sales, after several months on the rise, have seemingly leveled out, says the Pinellas Realtor Organization (PRO) in its May 2015 real estate statistics.
The combined 2,029 single family homes, townhouses and condos sold in Pinellas County during May 2015 was down from 2,103 in April 2015.
A more accurate indicator of Pinellas County’s leveling home sales: year-over-year combined sales stats for single-family houses, townhouses, and condos. Just a 10 percent increase in these types of Pinellas County home sales occurred between May 2015 and May 2014. This is significant when compared to the nearly doubled 19.8 percent year-over-year increase seen between April 2015 and April 2014.
Cash purchases of homes were also down 2.5 percent since last May, possibly an indication that not quite as many investors — as oppose to typical home buyers, who buy on credit and take out mortgages — are ready to pony up cash for homes up-front.
New pending home sales in Pinellas County also dropped 5.5 percent from last May, while active listings went down 3.3 percent, and pending active listings lessened by 1.6 percent over the same time period — further indications of home prices leveling out.
All of this, economically, is a good thing. No one wants to see another housing bubble burst like 2006, where land prices and housing prices peaked throughout much of the United States before abruptly dropping, causing, along with the nation’s ensuing credit crisis, the “Great Recession.”
However, just because we don’t want to see it, doesn’t mean it won’t happen.
According to the preamble of PRO’s May 2015 real estate statistics press release, home prices in both San Francisco and Denver have surpassed their 2006 highs.
Fortunately, these prices aren’t drawing much serious concern.
The PRO release cites a Wall Street Journal article saying bubble prices typically rise in tandem across the country, and not responding to the strength of local economies, as seemingly the case in San Francisco and Denver.
PRO’s next data release is scheduled for July 22, 2015.