Real Estate Market Stats For September - Hurricane Irma Effects
Since early September, residential real estate sales in Florida have steadily decreased. Before September 10, when Irma made landfall on the Florida coastline, the Sarasota real estate market was relatively strong. However, the momentum was stalled while the state shifted into clean-up mode after the hurricane. Many believe that the market will soon return to normal but owners will be more cautious about the property they purchase.
Market Stats Since Irma
It has not just been the residential real estate market that has been hit hard but the overall real estate market in Florida which is suffering due to Irma. September 2017 real estate reports in Florida conclude that while areas such as Sarasota were not at all affected physically by Irma, real estate sales there have still been falling due to reinspections and limited appraisal services that have been brought on by the storm. Xena Vallone, RASM President, accredits the downfall of business in Florida to the shift in focus of the residents affected by Irma. She said, “When a storm like Irma comes around, our focus shifts from day-to-day activities to the safety of our homes and loved ones.” Add to this a long Labor Day weekend and what you have is a recipe for a slow housing market. Simply put, fewer business days equals less time to close a sale.
Not only were housing sales down in September, but the number of properties listed was also down for the month as well. Single-family homes were down by 31.8% and new condo listings were down by 20.9% in the two-county area affected by Irma during September. For the most part, September is usually a good month for housing sales and listings in Florida but Hurricane Irma changed all of that. Vallone stated that sellers were not worrying about listing their houses and buyers were not worried about buying a new one once they new Irma was on her way. What they were concerned about was their loved ones and securing the property they already had.
Fewer Buyers Equals Fewer Sales
The property damage Irma caused was almost matched by the loss of buyers in the real estate market because of her. Since there were fewer days in which to purchase residential property the resulting sales in both Sarasota and Manatee counties showed a significant decrease when compared to August. Sarasota County witnessed almost a 30% decrease in sales, while Manatee County sales dropped by 26%.
The real estate market stats in September for the two-county area affected by the storm were not all that bad though as there was a shining light on the horizon in the form of overall inventory. Even though the number of sales and listings were down from August, the total number of closings and listings were up in September when compared with last years numbers. Single-family homes showed an improvement of almost 2%, while condo sales and listing increased by 2.9% over the same period last year. What is more, sales and listings tend to grow in the fall, so that may be a good indication that the real estate market in Sarasota County and its surrounding area will rebound rather quickly. How soon is quick? It is not expected that closing sales will increase by a significant margin in October as there were so few pending sales in the month of September. However, November and December may regain some life in the housing market for Sarasota and Manatee Counties.
The overall median sales prices in the Florida housing market were up last month, despite Irma’s destruction. While this may mean fewer buyers in the short term it does, however, indicate that the current decrease in sales and listings may just be a blip and not a full-blown crash. Single-family home prices in Sarasota increased by 8.4% to $269,900, and condos in Sarasota increased by 11.2% to $220,000 for the month of September. Manatee single-family homes increased by 9.3% to $295,000, and Manatee condo prices increased by 2% to $181,500 for the month of September.
In the market for real estate in Sarasota? Our experts can help you find the perfect property. If you'd like to find out more about the Sarasota-Manatee real estate market, contact the Key Solutions Real Estate team at (941) 894-1255or send them a message today!
Brian is a licensed real estate broker serving Siesta Key, FL and beyond. From finding the perfect vacation home to helping investors reach their full potential, Brian takes a professional and personalized approach to every situation.