Florida’s Gulf Beaches are a popular destination for real estate investors, luxury home buyers, and affluent retirees. If you're in the market for Gulf Beaches real estate, this guide will give you all the information you need to get started. We'll provide an overview of the Gulf Beaches and the current market statistics for St. Petersburg, St. Pete Beach, and Tierra Verde real estate.
Overview of the Gulf Beaches
The Gulf Beaches are known for white sugary sand, crystal clear waters, and the near-perfect year-round tropical climate. The area has long been a popular haven for "snowbirds" looking to escape the long cold northern winters. As a result, homes don’t linger on the market.
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The Gulf Coast's gorgeous beaches are the region's central focal point. These beautiful beaches seem to go on forever, offering picture-perfect scenes of swaying palms, white sand, turquoise water, and fabulous Florida sunshine. If beachfront living is on your bucket list, why not look at some St. Pete Beach homes for sale?
The Gulf Beaches are certainly world-class, but another key selling point is the region's excellent infrastructure. The public schools in the Gulf Beaches region are ranked among the best in the state, and parents also have a variety of excellent private schools from which to choose. In addition, the area is home to top-tier hospitals and medical facilities, including HCA Florida Pasadena Hospital, HCA Florida St. Petersburg Hospital, and Bayfront Medical Center.
Robust economic growth
Driven by the healthcare, tourism, and retail industries, the economy of The Gulf Beaches is one of the most prosperous in Florida. The area is home to many top tourist destinations, including Clearwater Beach and St. Petersburg Beach, which provide a robust year-round economy. Commercial development continues to be a primary focus for city planners who anticipate continued economic growth in the region.
Population growth in the Gulf Beaches region is also a driver of continued economic growth. Over the last ten years, nearly 3 million new residents have moved to Florida, many of which have settled in the Gulf Beaches. Pinellas County is the 7th largest in Florida and has been among the fastest growing at an average annual rate of about 6% since 2010, and that trend is expected to continue.
The most recent census data indicates the median household income in Pinellas County is $56,419, more than $25000 higher than the national average and over $27000 higher than the Florida average. Likewise, the unemployment rate in the county is approximately 2.7%, which is also lower than the national average. These numbers attest to the fact that the Gulf Beaches region is experiencing robust economic growth. If you are considering the purchase of St. Petersburg real estate, you can be sure that you are investing in a thriving and continually growing community.
The real estate market
Like its economy, the Gulf Beaches real estate market is thriving and robust. Although recent downturns in the national economy and consumer confidence have resulted in a slight cooling effect, most of the region is still in a seller’s market. Homeownership in Pinellas County stands at about 68%, and demand for housing in all sectors of the market — new construction, resale, and rentals — remains high.
The real estate market in Pinellas County as a whole remains a seller’s market. Housing inventory is up approximately 3%, and the number of homes sold is up +12% since July of 2022. The median home price is $366,209, up over 22% since August 2021. Prices have come down somewhat since the peak in the spring of 2022 and are expected to continue rising at a more modest pace.
While prices remain historically high, current economic concerns and rising interest rates have resulted in fewer homes selling above the asking price. Currently, 21% of homes have sold at the asking price, 26% have sold above the asking price, and 53% have sold below the asking price. In addition, the average time on the market is 19 days, representing an increase of +12.7% since August of 2021. Approximately 78% of homes sold in under 30 days, with the majority of the remainder selling in less than 90 days.
The real estate market in St. Petersburg also remains a seller’s market. Housing inventory is up approximately 5.2%, and the number of homes sold is down 32.5% since September of 2021. The median home price is $399,900, an increase of 29% since last year, and the median days on the market is 14, up 4 points since last year.
Despite the economic downturns, the market in St. Petersburg is still very competitive. On average, homes sell for 1% below the list price, which is the lowest Sale-to-List Price since February of 2021. Approximately 28% of homes sold above the list price, while 52.3% had price drops. This trend demonstrates a definite cooling of the bidding wars seen between May 2021 and June 2022, while the continued trend of high sales prices simultaneously demonstrates that St. Petersburg is still in a robust seller’s market.
St. Pete Beach
The Saint Pete Beach real estate market remains highly competitive. Housing inventory is down by approximately 4.1% since July of 2022, contributing to the seller’s market for the area. In addition, the number of homes sold is down 23.3% since September 2021. The median home price is $725,000, an increase of 48% year-over-year. The median days on the market is 17, up 4 points since last fall.
On average, homes sell for 3% below the list price, with approximately 15.4% sold above the asking price, and 34.7% saw price drops. These stats demonstrate a subtle downward trend in Sale-to-List Price of approximately 2 points and a modest upward trend of 5.7 points for housing price drops. Overall, the housing market in St. Pete Beach remains quite robust, with no dramatic changes anticipated for the remainder of the year.
The Tierra Verde real estate market is distinguished by its high-end inventory. Although Tierra Verde has experienced a moderate cooling of the market, it still remains fairly competitive. The market has normalized, not favoring buyers or sellers to any significant degree. Housing inventory is up by approximately 9.6% since July of 2022, and the number of homes sold is up 25% since September 2021. The median home price is $1,062,000, an increase of 88.8% year-over-year, and the median number of days on the market is 35, up 31 points since last September.
Presently, homes sell for about 3% below the list price, with approximately 9% selling above the asking price. Approximately 30.4% of the homes sold had price drops. With the average price per square foot in Tierra Verde at $413, housing caters to more affluent home buyers, resulting in an overall demand below more modestly priced houses. Even so, the beautiful homes and neighborhoods in Tierra Verde continue to be highly sought after, and that trend is expected to continue.
Whether you're looking for a luxurious primary residence, vacation home, or investment property, the Gulf Coast has something to offer everyone. Contact The Salamone Group today. We would be happy to assist you with your luxury real estate needs.
*Header photo courtesy of Shutterstock