It is undeniable that the Old Northeast is one of the most desirable and quaint places to live in all of St. Petersburg. Within a canopy of oak-lined streets, the neighborhood provides easy access for an enjoyable dog walk to the waterfront trails or a bike ride to the hip and art-friendly downtown community of restaurants and cultural activities.
The quality of life in both the Old Northeast and surrounding neighborhoods is enviable, but how is the area doing in the real estate market? Smith & Associates Real Estate, with two neighborhood offices at 1100 4th Street N and 330 Beach Drive, recently reviewed home sales for 2018 in the 33704 and 33701 zip codes.
Looking at home sales for 2018, it is clear that demand far surpassed supply of homes on the market. Single family home sales in the 33704 and 33701 zip codes showed 2018 to be a true seller’s market – with sales prices generally close to original asking price. Many buyers sought new construction or significantly rehabbed older homes, in addition to a condo market that was on fire the majority of 2018.
The 33704 zip code is an upscale, densely populated urban area of St. Petersburg, consisting of the Crescent Lake, Crescent Heights, Historic Old Northeast, Snell Isle, Euclid Grove, Eden Isle, Euclid-St. Paul, Woodlawn, Five Points, and Magnolia Heights neighborhoods. Within the 33704 zip code, the median price of a single-family home or villa was $417,500 – up 14% from the previous year. Homes spent fewer days on the market than the five-year average by 16 days (over two weeks) – with sellers getting 93% of their original asking price on average. While the ‘sellers market’ remained, this figure was down from October of 2018, indicating a downward trend heading into 2019. Homes could spend more time on the market next year, but with only 58 new listings to the area and 159 current active listings, a significant swing is unlikely. For most, moving to this area is a long-term change and many have a tendency to stay in their homes longer, in part due to the sense of community and active neighborhood associations.
Some homes in the Crescent Lake and Old Northeast neighborhoods fall within the densely populated zip code of 33701 as are the neighborhoods of Historic Roser Park, Historic Uptown, Mirror Lake, Downtown North, and Old Southeast. In this zip code, there were only 12 new single-family home listings this year. The median sold price of single-family homes or villas was $309,000, a decrease of 21% from the prior year. There was a 13% decrease in supply with 47 active listings. Buyers paid sellers 90% of their original asking price, on average, in this part of town last year.
Looking in the 33701 zip code at condominiums, the market showed a sharp contrast to single family homes. In almost every major real estate statistic we can analyze the market was booming, supplemented with strong messaging from elected officials and business leaders. St. Petersburg’s urban core became an extremely attractive place of residence for empty nesters, snowbirds, and young professionals. Lack of inventory has been a challenge in previous years but 88 new listings in 2018 doubled active listings from the 5-year average. The year had more new pendings as well as more closed condominium sales than in any of the previous five years. On top of that, condominiums for sale were only on the market for an average of 21 days. Buyers paid 97% of the listing price and scooped these condos up quickly once the listing was live. In 2017, the median condominium sale in this zip code was $327,500. For 2018, the median sold price soared to $663,750. That’s a 102% change and a result of unique developments like ONE St. Petersburg, listed with Smith & Associates Real Estate, coming on the market.
The neighborhoods fall very much in line with the the county as a whole. There has been a very steady but deliberate climb in both the number of days on market and in newly listed homes. This trend should continue, which will eventually balance out supply and demand. We expect that to be the trend for 2019; more homes will continue to come on the market, overpricing will not yield the results sellers have come to rely and absorption rates will decline. Absorption rates below 15% are indicative of a buyers market so, if you are in the market to buy, keep an eye on this number where you are expecting to purchase. If you are in the market to sell, it will be key to price your property smartly, dress it well for it’s first exposure to the market and be prepared to negotiate. Talking with a real estate agent can also help to get in-depth insights into the market at any point of the year, which often changes from season to season.
