Is Our Seller’s Market Cooling?
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But don’t worry, say experts. A “cooling” is not a crash, but the market merely correcting itself. Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a Bloomberg interview, "The rate of home sales, new and existing, has probably peaked, but it's not going to roll over. It will gently decline."
Homebuyers are believe current national markets, with runaway median prices and bidding wars, places home ownership out of reach. A University of Michigan consumer-sentiment survey found only 65 percent of Americans believe now is a good time to buy a home, the lowest since the height of the recession. Coupled with rising interest rates, buyers are more willing to wait for the right opportunity rather than enter bidding wars for properties.
How does Sarasota real estate stack up?In the first quarter of 2018, Florida’s single family home sales saw a decline in closed sales and median time to sale. The average home took 88 days to close, down from 96 the previous quarter. Median sale prices rose 9.7 percent. The months’ supply of inventory hovered at 3.8 months. Florida does not match the national trend.
The most recent month of Sarasota real estate single family homes data showed the number of sales and median sale price rose, while the median time to sale declined slightly. However, the growth in closed sales and median sale prices were minimal, less than two percent in both cases.
Looking back at median sale prices each month back from June 2018 to September 2017, there does seem to be a leveling of median price growth. However, the single family home prices are still higher when running a year-to-year comparison.
Real estate professionals consider a six months’ supply to be balanced between buyers and sellers. Sarasota still favors sellers with a current 4.1 month supply of homes.
If our local real estate market starts falling in line with the national trend, it will take some time to see the change in median home prices, inventory, and days on market. For the near future, the Sarasota real estate market will continue to slightly favor sellers. However, sellers should be prepared for homes to linger on the market longer than they may expect. Each neighborhood is unique; consult with a real estate professional about the market in your area.