Don Taylor's Real Estate Blog

Thursday, August 02, 2007

I will post the data table(s) later, but here is my interpretation of the data and a summary and "snapshot" of Condo Sales activity on Treasure Island, FL  for the first 6 months of 2007 (and a comparison with the first six months of 2006. Data Source: Pinellas Realtor Organization MLS Data)

Discussion and Data below refers to Jan 1st -June 30th, 2007           

52 condos sold on Treasure Island through the Multiple Listing Service during that time frame (56 sold during the same time frame in 2006)...

Interestingly: 5 of the 52 were for over $1 million dollars, with the highest price paid coming in at $1,750,000 at the Vittoria on Treasure Island's      Gulf-front (only 3 were sold for over $1 million during the first 6 months of 2006). But, hold on...3 more so far in 2007 were sold from $950-$989,900! So, 8 of 52 closed sales were for $950k or more thus far in 2007.

3 closings at the Bahia Mar development were actually contracted for in 2004; so arguably, there were only really 49 "sales" in the 2007 period; though MLS did report the 52 "closings"...

Fully 28 of the 52 (49) sales were for $300,000 or less and 40 of the 52 (49) were for $500,000 or below.

MAYBE THE MOST TELLING STATISTIC OF ALL: The MEDIAN Sales Price...and NOT the average sales price. I say that because as you've seen above, the 8 sales @ $950k and above will skew the 'average' sale price high, even though 28 of the sales (53%) were at $300k or lower. The MEDIAN sales price is where 1/2 of the sales are ABOVE and the other 1/2 of the sales are BELOW that figure. To me, it paints a more telling picture of what is actually happening in the real estate market today.

In the first 6 months of 2006 on Treasure Island the 56 closed sales' Median Price was $399,500 (Average sales price then was $447.1k)

In 2007 the MEDIAN SALES PRICE on Treasure Island was down by $117,111 to $282,000! (Average sales price was almost identical to last year's at $446.9k, a reduction of only $215!!) So much for the importance of the "average" sales price figures you read about! Be sure to look at the MEDIAN price, as well!

There were just five (5) sales over $500,000 - $774,900 and the next sale above $774,900 was the $950,000 one I mentioned earlier.

In summary, fewer condos are selling, though not a dramatic NUMBER different from the fist six months of 2006.

The AVERAGE sales PRICE is almost identical to what it was in last years first six months.

What IS dramatic is the drop in the Median Sales Price and the apparent gap between the "haves and the have nots" as it were; as reflected in the increase of Million Dollar condo sales and the HUGE drop in the Median Sales Price on Treasure Island.

Remember, too, that the first six months includes the winter season's business, so we'll likely see a reduction in the number of transactions in the second 1/2 of the year, though MY business does seem to have been picking up lately and the jury is out on interest rates, overseas "users"/investors entering the market and a host of other factors will dictate how 2007 finishes out.

Right now...It's a GREAT time to be a BUYER. I hope you find this interesting and I welcome your calls or e-mails to discuss the market and/or if you have something to add or you think i may have overlooked anything, etc...

Remember that real estate is LOCAL. I hope to be posting similar data for St. Pete Beach and the Madeira-Redington Beach areas as well, once I get a "Round Tuit". I already "have" the info, it just takes a while to put "what's in my head on the web".

If you are thinking of buying OR selling, please CALL DON TAYLOR on 727-458-7828. I would be happy to put my 25+ years of local real estate experience to work for YOU!