Is Now the Best Time to Buy in St. Petersburg?

Is Now the Best Time to Buy in St. Petersburg? 

A Look at Florida's Housing Surge 

Florida's housing market is experiencing a significant shift, with inventory levels soaring to unprecedented highs in February. Cities across the state, from major metros like St. Petersburg to smaller towns such as Harmony, are seeing record numbers of unsold homes amid persistently high mortgage rates.

Housing Inventory Hits Record Highs

Statewide, there were 168,717 homes for sale in February, the highest number ever recorded in Realtor.com® data, which dates back to 2016. This represents a nearly 34% increase compared to the same time last year.

St. Petersburg, a vibrant Gulf Coast city with over 260,000 residents, experienced the most dramatic inventory surge, with available homes skyrocketing by 164% year over year. Realtor.com Senior Economist Joel Berner notes, "St. Petersburg is experiencing a flood of new inventory, especially of larger homes."

New listings in St. Petersburg climbed even higher, rising 166.9% compared to February 2024. Despite this influx of homes, Berner points out that the market has yet to slow down significantly, as the number of days a typical home spent on the market in February remained unchanged from last year.

Pricing Trends and Buyer Opportunities

Although price reductions in St. Petersburg were up 2.6%, this was still below the national average. The price per square foot dipped 2.9%, while the median listing price remained largely unchanged. Historically, price corrections like these have often signaled the early stages of a shift toward a buyer's market, making it an opportune time for those looking to purchase a home., this was still below the national average. The price per square foot dipped 2.9%, while the median listing price remained largely unchanged. This suggests that larger homes are entering the market at more competitive prices, potentially benefiting buyers.

"This surge of fresh inventory is good news for prospective buyers as the spring buying season approaches; they'll have plenty of options to choose from at competitive prices," says Berner.

As of early March, there were 3,534 homes for sale in St. Petersburg, with a median listing price of $440,000.

Florida Cities Seeing the Biggest Inventory Growth

St. Petersburg isn’t alone in experiencing an inventory boom. The 10,000-person town of Citrus Springs saw the second-largest increase in available homes, up 136% year over year. Other cities seeing major inventory surges include:

1. St. Petersburg, FL – 164.1% increase

2. Citrus Springs, FL – 136.5% increase

3. Pace, FL – 128.2% increase

4. Miami Gardens, FL – 120.7% increase

5. Dania Beach, FL – 118.2% increase

6. St. James City, FL – 115.8% increase

7. St. Johns, FL – 115.7% increase

8. Ave Maria, FL – 106.6% increase

9. Royal Palm Beach, FL – 100% increase

10. Harmony, FL – 100% increase

Is It a Buyer's Market?

The surge in housing inventory indicates that buyers may finally have an advantage after years of a competitive seller's market. High mortgage rates have slowed some demand, but steady sales in St. Petersburg suggest that affordability remains a key factor. Factors like interest rates, local job growth, and continued inventory trends will determine whether this shift solidifies into a long-term buyer-friendly market. after years of a competitive seller's market. However, homes in St. Petersburg are still selling at a steady pace, suggesting demand remains strong despite the growing supply.

Two Gulf Coast cities—Sarasota and Bradenton—are becoming increasingly favorable for buyers, with rising inventories, declining prices, and homes spending more time on the market. In Bradenton, median listing prices have fallen since March 2023, with homes now listed around $432,000—approximately $100,000 less than a year and a half ago. Sarasota has followed a similar trend, with median listing prices dropping to $575,000. Unlike St. Petersburg, where homes are still moving at a steady pace, these two cities are showing stronger signs of transitioning into a true buyer's market., with rising inventories, declining prices, and homes spending more time on the market. In Bradenton, median listing prices have fallen since March 2023, with homes now listed around $432,000—approximately $100,000 less than a year and a half ago. Sarasota has followed a similar trend, with median listing prices dropping to $575,000.

While St. Petersburg is seeing a dramatic rise in inventory, whether it fully transitions into a buyer’s market will depend on how quickly homes continue to sell and whether price adjustments follow. Buyers entering the market now, however, may find more options and potentially better deals than in previous years.

Schedule a Buyer Broker Consultation

For expert guidance in navigating the St. Petersburg housing market, contact 727-204-5001 for a Buyer Broker Consultation or visit SuncoastHome.com to explore available listings and market insights.