St. Pete's Luxury Real Estate Market is Booming: Who's Buying and What's Selling?
The real estate market in Pinellas County, St. Petersburg, is experiencing a boom in activity despite limited new homes for sale. Homebuilders and affluent buyers are eagerly snapping up vacant lots along the waterfront, willing to pay a premium for these prime properties. Experts suggest this trend is likely to continue with a strong real estate market in the luxury space, and still a seller's market due to the limited supply of new homes.
Alex Malagon, a fourth-generation St. Petersburg native and an agent with Remax Metro Florida, explains that the market currently has a two-month supply of homes, compared to a healthy market's six-month supply. People are buying these empty lots to have a piece of St. Petersburg real estate, and all-cash deals and multiple offers from out-of-town buyers are still being experienced.
Despite catastrophic damage caused by Hurricane Ian and storm surges last year in coastal Fort Myers, the desire to buy waterfront properties in St. Petersburg remains strong. This is largely due to its new record for single-family waterfront homes within that ZIP code and its robustness for long-term investments.
However, the market is not without its challenges. Although the days a house is sitting on the market have increased, and bidding wars are no longer driving prices up, the area remains very strong with more demand than the inventory can keep up with. The lack of supply means that people are buying land quickly, and as far as spec homes go, buyers prefer turn-key ready properties.
One potential solution to this challenge could be the development of off-market properties for buyers. Furthermore, there are future developments planned for St. Petersburg over the next several years, which will create new opportunities for buyers and developers.
In summary, the real estate market in Pinellas County, St. Petersburg, is thriving, with affluent buyers and homebuilders eagerly seeking prime waterfront properties. Although there are challenges due to the limited supply of new homes, the market remains strong with high demand, making it an excellent investment opportunity for buyers looking for long-term investments.