Along Florida’s Gulf coast, in Pinellas County, not far from St. Petersburg and Tampa, is the small yet beautiful town of Indian Rocks Beach. With around 4,000 residents, this 1920s town was initially designed as a luxury weekend destination for the wealthy residents of Florida. There are 2.7 miles of beautiful beachfront, including more than 20 access points to the white, sandy beaches. Those who love enjoying outdoor activities like swimming, fishing, boating, sunbathing, and kayaking can appreciate the easy access to beaches and Intracoastal waterways. In addition to the abundance of beaches and outdoor recreation, the area has plenty of retail shopping and dining opportunities, plus access to popular locations nearby.
Though relatively small, that drives the force behind residents and visitors wanting to enjoy Indian Rocks Beach. The abundance of tourists that flock to the area to visit the beautiful beaches, clear water, and stunning sunsets are part of what drives the economy in the area. Its location along a barrier island keeps it from growing too large, which impacts the economy and the housing market. Homes in the area range from quaint beach houses and luxury apartments to grand oceanfront homes with vast square footage and stunning views. Most residents in the area choose to keep their Indian Rocks Beach homes, while many homebuyers want to move to the area.
If you’re searching for a piece of Indian Rocks Beach property, you want to know about the current real estate market and what’s predicted in the coming years. Read on for insights into what real estate professionals expect for the 2023 year.
Current market
The median home price in Indian Rocks Beach is currently hovering around $775,000, which is less than a 10% increase from this time last year. Prices have started falling in recent months, though not significantly enough to worry yet. Given its location, seemingly secluded feeling, and proximity to major metropolitan areas in Florida, the ability to maintain a higher price point is a positive. The average price of homes in this area is comparable to nearby regions like Indian Shores and Belleaire Beach. Although Indian Rocks Beach is still in a seller’s market, it’s leaning heavily toward becoming a neutral market. The good thing about a neutral market is that it doesn’t weigh heavily in favor of one versus the other. A neutral market means that prices remain steady, the sales price is close to asking, and there are equal parts buyers and sellers.
Though it’s a relatively small town, there are a decent number of homes for sale at any given time. As of October, there were around 59 homes available on the market, up slightly from the month before and significantly from last year. The number of homes on the market isn’t significant enough to maintain a steady inventory, and those listed tend to sit on the market for a long time. Where last month's homes might’ve sold in less than ten days, they are sitting slightly longer now. Additionally, many of the homes being sold are going for under the asking price, though hovering right around it. Current trends show that despite home prices, listings, and time on the market increasing since last year, they also seem to be decreasing toward the end of this year. Why would this be the case?
Consider the national market trends. There has been a rise in interest rates over the last year, coupled with an increase in home prices and low inventory. This combination tends to make buyers wary of wanting to take the leap and purchase a home. Let’s look at things from a buyer's perspective. When considering making a significant investment and seeing both mortgage rates and home prices rise, you’ll likely be hesitant to take the leap and risk making a bad investment. At the same time, those looking to sell their home might be hesitant to list, with the market seeming to slow down. Either way, it’s important to remember that real estate trends can fluctuate quickly, so there’s no better time than the present.
2023 Forecast
Despite a decrease in home prices and inventory, the Indian Rocks Beach market is still in excellent condition and expected to stay that way. Market trends have shown steady increases since 2018, with home values and sales prices continuing on an upward trend. This growth might be due to the booming market the pandemic brought across the nation, or it might be due to the area's popularity. Data from Wallet Investor shows a steady upward path through the next few years, with home prices eventually reaching significantly higher than current trends. Nationwide, we’ll continue to see home and rental price increases, inventory increases, and mortgage rates rising. Whether this will impact the Indian Rocks Beach area heavily remains to be seen. So far, there hasn’t been a significant change in the market, and if these charts are any indication, there won’t be any time soon.
If you’re looking to sell your home in the area, there is no wrong time to list. With homes being snapped off the market relatively quickly, houses going for the near asking price, and rates remaining steady, it’s an excellent option. Knowing that not many homes are available also means that the market remains in favor of the sellers. Home values in the area should continue to appreciate, though not rapidly, with the demand remaining high and the economy in the area staying strong. While the likelihood of a market crash is small, several factors play into the housing market that can affect it quickly. While you can make predictions about the Indian Rocks Beach market, keeping an eye on nationwide trends is equally important. Everything from the economy to regional demographics plays a role in market trends. Your best bet is to stay informed on the big picture.
If it’s the right time for you to search for Indian Rocks Beach homes, or you want to sell your piece of luxury real estate, contact me. I’m Adrienne Dauses, an Indian Rocks Beach real estate agent with a wealth of experience, and I’m happy to help.
