An indication of how the market is doing is inventory (number of properties listed) and the number of Clearwater Beach condos for sale is down quite a bit from where it was 3 years ago. Not only that, but the number of properties coming on the market is down a lot.
Overall residential inventory in the Pinellas County MLS has dropped 55% since this time in 2008 which includes the inventory of Clearwater Beach condos for sale area. Some of this can be attributed to the dramatic slowing of processing foreclosures by the banks after the ‘robosigning’ fiasco in the fall of 2010, but even if that had not occurred we would be at about a 40% drop in inventory by this time based on the rate of change we saw up to that point.
Clearwater Beach Condos for Sale – 2008 Compared to the Present
Some of this is related to an increase in sales – 275 Clearwater Beach condos and townhouses sold in 2008 and 384 sold in 2011 which is about a 40% increase – there has also been less inventory coming on the market. In January 2012 there were only 42 new listings of Clearwater Beach condos for sale while in January 2008 there were 57 which may not seem like a big decrease but it is still down over 25%. Combine the decreasing inventory and the increasing sales, both of which have been steady over the last 4 years, and you’ll start to understand why the overall inventory is down such a significant amount.
It is very possible that we will start seeing more foreclosures coming on the market this year. I’ve been reading that the recent settlement between the big banks and our government will result in the banks releasing more foreclosed properties onto the market (but in a gradual manner). This may result in the inventory levels coming up somewhat but since there is still a high demand for these properties it is likely that the increase in inventory will not be significant.
When inventory starts getting very low in any market and demand stays at a good level, prices tend to start increasing and there is more competition for the inventory that is available. We definitely saw the competition factor starting to come in last year.
So all this means that this next 12-18 months will probably be the best time to be buying Clearwater Beach condos for sale and that if the market continues the improvement it has been seeing then after that period of time the prices will very likely start increasing more.