Will House Prices Go Down in St. Petersburg, FL?
The question on many homebuyers’ and sellers’ minds is: Will house prices go down in St. Petersburg, FL? As the real estate market shifts, understanding the current trends and predictions can help you make informed decisions. At Avalon Group Realty, we analyze market data, speak with top experts, and leverage our experience to guide our clients through this evolving landscape.
Understanding the St. Petersburg Real Estate Market
Recent Market Performance
As of January 2024, home prices in St. Petersburg increased by 10.1% year over year. However, by January 2025, the market had shifted into a buyer’s market, meaning homes were staying on the market longer, and prices had softened. The median sold price in January 2025 was $431,000, with a 0.2% increase from the previous year.
“The St. Pete market is stabilizing, but we are not expecting a major price drop,” says Aaron Hunt, Broker of Avalon Group Realty. “While some homes are selling under asking price, we are still seeing strong demand in prime neighborhoods.”
Buyer’s Market vs. Seller’s Market
In 2024, St. Petersburg was a seller’s market, but as we moved into 2025, inventory grew by 10.9% month-over-month, creating better conditions for buyers. 73.8% of homes sold in January 2025 were below asking price, meaning buyers have more negotiating power.
“For first-time homebuyers, this shift creates more opportunities,” says Yvette Kim, Realtor with Avalon Group Realty. “Lower competition means buyers can take their time and find the perfect home without the pressure of multiple bidding wars.”
Will House Prices Go Down in St. Petersburg, FL?
While some areas of Florida are seeing price declines, the Tampa-St. Petersburg housing market is projected to remain one of the top 10 markets in the country in 2025. National experts, including Freddie Mac and the National Association of Realtors (NAR), predict a modest increase in home prices across the U.S.
Factors Influencing Home Prices
- Inventory Growth: More homes are hitting the market, giving buyers more choices.
- Interest Rates: Mortgage rates have stabilized around 6%, making affordability a key factor.
- Home Insurance Costs: Florida’s rising insurance premiums are causing some buyers to hesitate.
- Migration Trends: St. Petersburg continues to attract out-of-state buyers, keeping demand steady.
“We might see some price adjustments in certain neighborhoods, but overall, St. Pete remains a desirable location,” notes Pam Amante, Realtor with Avalon Group Realty. “Buyers looking for long-term investments should still consider purchasing now.”
Will St. Pete House Prices Go Down?
The answer depends on location, home type, and overall market conditions. One-bedroom and two-bedroom homes have seen slight price declines (-5.9% and -3.5%, respectively), while larger homes have appreciated.
“The luxury market is holding strong, with four-bedroom homes seeing a 9.1% increase in median sale price,” says Nora Sturgill, Realtor with Avalon Group Realty. “High-end buyers are still investing in St. Pete.”
Should You Buy Now or Wait?
If you’re asking, Will house prices go down in St. Petersburg, FL?, the answer is nuanced. Buyers currently have more negotiating power, and with interest rates stabilizing, waiting may not yield significant savings. As soon as interest rates go down, there will be major competition to buy a home. Therefore causing bidding wars and home prices going up. You need to decide if you would rather buy now, and then refinance later at a lower interest rate.
“If you find a home that meets your needs, locking in a good price now makes sense,” says Aaron Hunt. “Prices might not drop significantly, and waiting could mean missing out on great opportunities.”
Key Market Statistics
- Median Sold Price: $431,000 (+0.2% YoY)
- Median Price per Sq. Ft.: $338
- Number of Homes for Sale: 2,494 (+10.9% MoM)
- Homes Sold Below Asking: 73.8%
- Days on Market: 56 days (+10.9% YoY)
New Construction and Market Trends
With the changing real estate landscape, new construction projects in St. Petersburg are shaping the market. Developers are focusing on sustainable homes, energy-efficient designs, and hurricane-resistant features.
“We’re seeing a rise in demand for new-build homes with solar panels, impact windows, and smart home technology,” says Josh Zanow, Realtor with Avalon Group Realty. “These features are not only attractive to buyers but also add long-term value to properties.”
Additionally, more multifamily developments and luxury condos are being built, catering to retirees and remote workers moving to Florida. This increase in housing supply could balance home prices and provide more affordable options for buyers.
Long-Term Outlook for St. Petersburg Real Estate
Looking beyond 2025, experts suggest that St. Pete’s housing market will continue to be influenced by population growth, economic stability, and climate adaptation strategies. With more people moving to Florida each year, real estate values in desirable locations like St. Petersburg will likely remain strong.
“Buyers who invest now in well-located properties should see steady appreciation in the coming years,” notes Aaron Hunt. “Even if short-term fluctuations occur, St. Pete’s real estate market is built on long-term desirability.”
Neighborhood-Specific Trends
- Downtown St. Petersburg: Strong demand continues due to walkability, entertainment, and new developments.
- Historic Old Northeast: Home values remain high with limited inventory.
- Kenwood, Live Oaks & Central Oak Park: More buyers are drawn to these areas due to affordability, being in a non flood zone and proximity to downtown.
How to Make the Most of the Market Shift
Whether you’re buying or selling, strategic decisions will help you maximize opportunities in the current market:
For Buyers:
- Negotiate for Closing Costs: With homes sitting on the market longer, sellers may be more willing to cover some of the buyer’s costs.
- Consider Homes with Price Reductions: Many listings have seen price drops—these can be great opportunities for deals.
- Lock in Mortgage Rates: With rates stabilizing, securing a lower interest rate now could save thousands over time.
For Sellers:
- Price Competitively: Overpriced homes sit longer on the market, so pricing right from the start is key.
- Enhance Curb Appeal: First impressions matter, and simple updates like fresh landscaping can attract buyers.
- Highlight Energy-Efficient Features: Buyers are increasingly looking for homes with lower utility costs and sustainable elements.
Will House Prices Go Down in St. Petersburg, FL? (Final Thoughts)
While some price corrections are happening, a market crash is unlikely. Home values remain steady, and St. Petersburg continues to attract buyers due to its coastal charm, walkable neighborhoods, and strong local economy.
FAQs
Is St. Petersburg a Buyer’s or Seller’s Market?
Currently, it is a buyer’s market, meaning buyers have more leverage to negotiate lower prices.
Will St Pete House Prices Go Down?
Some price fluctuations are occurring, but overall, the market remains stable with potential for future appreciation.
Should I Sell My Home in 2025?
If you’re considering selling, now is a great time to strategize with an experienced Realtor in St Petersburg, FL, such as our team at Avalon Group Realty.
Final Thoughts & Contact Information
Whether you’re buying or selling, understanding the market is key. For expert guidance, reach out to Avalon Group Realty today.
Contact Aaron Hunt directly to start your real estate success story: Phone: 727-262-7920
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