Sarasota and Manatee Counties Seeing Growth in Housing Market
Sarasota and Manatee counties continue to see strong growth in the local housing market - a good sign for the local economy and anyone who owns or would like to invest in Sarasota real estate. The August 2017 report, compiled from data provided by My Florida Regional Multiple Listing Service, showed positive trends in almost all categories. Here is a breakdown of the report and what it means for the two-county area.
Higher Closed Sales
The number of closed sales of single-family homes in Sarasota and Manatee counties was 6.9 percent higher in August 2017 when compared to August 2016. Closed sales for condos were up too, though only slightly at 0.8 percent. For the month, all closed sales were significantly higher in August than July. There were 1,819 sales in August, a month-over-month increase of 6.4 percent. So far in 2017, closed sales are moderately higher than for the first eight months of 2016. Through August, there have been 14,254 closed sales, which is a 2.1 percent increase over the same time period last year. The steady, moderate growth in home sales currently being experienced is a good sign that the housing market is healthy.
Pending Sales Up
New pending sales is a good indicator of future closed sales, and pending sales are up in the two-county area. For single-family homes, the report showed 1,293 pending sales, a 1.3 percent increase over July figures. Pending sales for condos were also higher, with 516 pending sales, a 4.2 percent increase over the prior month. Compared to the same period last year, pending sales are 2 percent higher, which is right in line with the growth in closed sales. While growth in pending sales is generally a good indication of growth, it is important to keep in mind that sometimes sales can take a while to close for unforeseen reasons. A good example is Hurricane Irma, which is likely to have some delay on home closings due to the need for re-inspections. This would lead to a temporarily higher number of dwellings in the pending sales category, which could lead to incorrect assumptions about growth in the local market.
Inventories Trending Lower
The inventory of condos and homes for sale in Sarasota is up 4.3 percent to 6,791 when compared to the same time period in 2016. However, home inventories are trending lower as demand continues to fuel the growth in sales. For the month, the inventory of single family homes for sale decreased by 5.2 percent. Condos saw an even bigger drop in inventory with a decrease of 6.1 percent. One way to get a feel for the local housing market's strength is by looking at month's supply of inventory. This measures the number of months it would take to deplete the inventory of homes for sale at the current sales rate. For the two-county area, the month's supply of inventory figure has been decreasing since March. The report showed Manatee County having a 4.1 month supply of single family homes for sale. Sarasota County only has a 3.8 month supply. This decreasing supply indicates continued strong demand in the single-family home market. Supply of condos for sale is also decreasing, with a 4.3 month supply in Sarasota County and only a 3.9 month supply in Manatee County.
Median Prices Also Rising
Along with increased demand, comes higher prices. Median prices for single-family homes in both Sarasota and Manatee County have increased since August 2016. Sarasota County saw a 1.5 percent increase with a median price of $258,000; Manatee County's median price is $286,855, a 6.2 percent increase. Median prices for condos, however, were a mixed bag. Condos rose in price by 10.9 percent to $183,000 in Manatee County. In Sarasota County, however, condo median prices fell by 2 percent to $213,500, perhaps indicating a slight correction to an overheated market.
It's a great time to be in the market for real estate in Sarasota. If you'd like to find out more about the Sarasota-Manatee real estate market, contact the Key Solutions Real Estate team at (941) 894-1255 or send them a message today!