Southwest Florida Maintains A Balanced Summer Housing Market
According to recent statistics reported by the Realtor Association of Sarasota and Manatee Counties, median prices are still on the rise, and inventories show gradual improvement for buyers. The current situation is that of a balanced housing market that is conducive to real estate activity.
In terms of value appreciation, Manatee County is the clear winner. On a month-over-month basis, Manatee County enjoyed a 12.4% increase that puts the median price of a single-family residence (SFR) at $285K. The median prices of condominium units rose by a margin of 11.6%, which puts median prices at $173K.
Going into the summer real estate buying period, Manatee County has overtaken Sarasota in terms of SFR median prices. Whereas home buyers will find SFR listings around $219K in Sarasota, driving north towards Bradenton will result in a price jump to $285K. The opposite can be said of condominium units, which are currently $219K in Sarasota and $173K in Manatee.
Real Estate Transactions in Manatee and Sarasota Counties
June was the best month of the year so far for both counties. In Sarasota County, brisk sales jumped 5.2% since May for a total of 792. In Manatee County, 610 sales signaled a 1.2% from last month. As positive as these sales figures may seem at this time, they are not as spectacular as they were in 2015. In fact, Manatee County sales are down 2.4% since last year, and Sarasota County is down 4.7%; however, there is a silver lining for sales of condominium units, which were up by 0.9% on a year-over-year basis. The same cannot be said of Manatee County, where condominium units were down 4.4% compared to June 2015.
Pending sales are 25% down across the board for both counties; nonetheless, it should be noted that 2015 was extraordinary in this regard. Current pending sales are more in line with the traditional trend of a slowdown at the end of a season. In 2015, this trend actually extended through September before tapering off.
Distressed Properties Down As Housing Supply Remains Stable
The real estate owned (REO) portfolios of mortgage lenders and servicing entities are getting slimmer. The%age of foreclosures and short sales for both counties in June was just 6.3%, which speaks volumes about the stability of the market.
In June of last year, opportunistic home buyers and property investors were far more active in their search of REO portfolio bargains, which consisted of 13.4% of total sales. Of all properties sold last June in both counties, 7.1% were SFR and only 4.1% were condominium units.
Housing supply is adequate and supports a stable market in Southwest Florida. As the summer unfolds, neither county can be considered a buyer's or seller's market. The active market from last year has motivated sellers, who are in turn enticed by the rising home values.
SFR shoppers will find a 20.4% increase in Sarasota County from last year while in Manatee County they will find an increase of 17.2%. A substantial amount of condominium units have been listed in Sarasota County, where there are 35.9% more units on the market compared to June 2015. In Manatee County, the same statistic rose 16.8%.
There are currently 5.1 months of housing supply across both counties. Last year, the inventory was as low as 3.5 months and did not go above 4.1%. Some bullish real estate analysts may call the current situation a buyer's market compared to last year, but it is important to note that such an imbalance occurs when the inventory is higher than six months. The current market is fairly balanced, and it may improve should developers break ground on new construction projects.
Never miss a beat in the Sarasota County real estate market. If you have questions about the data above or would like to learn more about buying or selling homes in the Sarasota and Siesta Key area, contact the Key Solutions Real Estate team at 941.894.1255 or send them a message today!