JASON’S “REAL TALK”

We will be providing a more comprehensive market update the first month of each quarter, but we will cover a quick market notes in the “Real Talk” section each month. The market story is largely unchanged from last month. The basic story is still low inventory and strong demand, which is being fueled by low interest rates and a booming stock market. The fourth quarter showed some slight softening, but rebounded in December with historic absorption rates.* Absorption rates for single family homes were 109%, and 56% for condos and townhomes.

Commercial real estate continues to rebound, albeit unevenly among the sectors. Industrial and Multi-Family continue to lead the market with softer conditions for large office space and retail. We continue to see growing economic activity in our market that has been building since the fall. The new year has accelerated that trend and we are seeing increased interest on our commercial listings. We continue to remain bullish on the long-term prospects of St. Pete, and Tampa Bay more broadly.

We continue to watch the broader economic activity and the pandemic. We watch to see what The Fed, Congress, the new Presidential Administration does in response to both the economic and pandemic crises. The two crises are interconnected, and we must suppress the virus to achieve greater economic success. The virus is surging across the country, so we hope you are all staying safe. Wearing a high-quality mask, washing your hands, and distancing when you can are still the best ways to help prevent the spread of the virus.

*” The absorption rate in the real estate market is used to evaluate the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the number of homes sold in the allotted time period by the total number of available homes.” Via Investopedia.com