Pinellas County Condominium Trends

Over the past week two different areas of Pinellas County, Florida were researched and examined in the process of completing appraisal reports. One is a condominium community in mid Pinellas County consisting of about 1,000 units in several buildings, built around a private golf course. An analysis of same unit resales and listings revealed prices and values within the complex declined by approximately 1% per month over the past year.

In December, 2008 the same type of analysis was done as part of an appraisal of a luxury Gulf-Front condominium. The assignment was to develop an opinion of value in a small, boutique project with only 8 units. Each of the condominium apartments had over 3500 square feet and were of very high quality construction. Kitchens, appliances, finishes and fixtures were all of very good quality.

At the time of the appraisal there were over 37 active listings of Gulf Front condominiums with over 3000 square feet of living area in Pinellas County offered for sale in the Suncoast Multiple Listing Service. The average listing price for these listings is almost $2,000,000. Some have been on the market for over two years.

Although an initial examination of sales and recorded deeds suggested this market has held up, closer scrutiny revealed many of the closings involved newly completed units; some of them under contract for as long as 18 months. An examination of listings revealed price reductions, expired listings and re-listing units at a lower price were common. Some developers have reduced prices on their existing inventory by as much as 32%.

After consideration of all the data, it was clear that prices and values for this category of condominium declined by about 18% over the past year. Considering the substantial inventory, it was my conclusion this trend would continue for at least the next few months.

If you or your clients are curious about the pricing of your listings, feel free to give me a call or an email. We're working on a number of assignments involving listings right now; helping folks get a clear idea of their market, the competition in the area, and the pricing level necessary to attract interest. We might be able to assist you, your seller or buyer make the correct decisions.

Appraisal Update

It's been great getting back to my appraisal business! Since August 26th, there has been a wide variety of assignments; plenty to keep me busy and diverse enough to keep me learning.

The mortgage related work has been scarce, but I have been getting a bunch of referrals from real estate agents. In some cases they are looking for help in pricing a new listing. In others, the agent and the owner are interested in adjusting the price on an existing listing and want a picture of the current market. I've also completed a number of appraisals for potential purchasers, anxious about the market and wanting to make sure they do not overpay for a house they have fallen in love with.

Several homeowners have contracted with me to provide Replacement Cost Estimates to help them and their insurance carriers to determining the level of insurance to maintain. We have been providing Replacement Cost Estimates for the past 5 years. These have been accepted by Citizens Property Insurance and dozens of others companies. In some cases homeowners determined they were dangerously under insured. In others, they were paying for much more coverage than necessary. Give me a call if you have questions.

Since August, I have also contracted with the Florida Division of Real Estate as an Expert Witness. The Division of Real Estate utilizes Expert Witnesses in some of their disciplinary actions against registered, licensed and certified appraisers. It's interesting work and helps me keep up on changes to appraisal standards, laws and rules.

There is much more going on the appraisal world. Keep an eye on this space. I'll do my best to provide updates on a more regular basis.

Frank