Sarasota Real Estate Update: April 2018
Home Sales Rise Despite Challenging Inventory
In April 2018, Sarasota and Manatee housing inventory levels dropped again, with pressure from rising median sales prices. Overall, April showed an increase in sales across the two counties, as well as an increase in new listings.
April reported 2,014 total sales which is a 3.3 percent increase from last year. Sarasota condo sales increased by 17.8 percent while single-family homes Sarasota decreased by 5.3 percent.
Overall, inventory is down compared to this time last year. For single-family homes, the number of properties listed decreased by 10.3 percent. As for condos, inventory decreased by 8.9 percent in the two-county area.
"Sarasota and Manatee counties are following the national trend of lower inventory and higher prices," said Greg Owens, 2018 President of the REALTOR® Association of Sarasota and Manatee. “This home shortage is a main factor in limiting sales growth.”
Dr. Lawrence Yun, chief economist of the National Association of Realtors® (NAR), commented on this trend in his recent 2018 midyear forecast presentation at the REALTORS® Legislative Meetings & Trade Expo. Yun indicated that a stronger economy, wage growth and improving job market is expected to raise sales and prices. However, low inventory and the challenging affordability for the next generation of homebuyers may temper growth. Overall, he predicts a moderate and multiyear increase in home sales ahead.
Median sales prices continue to rise in Sarasota and Manatee. Sarasota increased by 4.6 percent to $285,000. Condo median prices increased by 9.3 percent to $235,000.
“These trends should encourage homeowners who were thinking of putting their property on the market to do so,” added Owens. “The traditional snowbird season has ended in our area, but property sales have not. Contact your local REALTOR® to find the best move for you and your family.”
A seller’s market remains, indicated by the decreased month’s supply of inventory. Sarasota condos are at a 4.6 month-supply. Sarasota single-family homes are at a 4.1- month supply.
The median time to contract for Sarasota single-family homes is down by 11.1 percent to 40 days. For Sarasota condos, the time to contract is down by 6.5 percent to 43 days. With tighter inventory, properties are spending less time on the market.
Overall pending sales, or the number of properties that went under contract in April, decreased from last month. This is an indication that sales are tapering off the traditional snowbird season. Compared to 2017, the condo market experienced more pending sales with a 22.1 percent increase in Manatee and a 1.7 percent increase in Sarasota. Single-family homes, however, experienced a drop in pending sales. Sarasota single-family homes decreased by 13.1 percent.
Monthly reports are provided by Florida REALTORS® with data compiled from My Florida Regional Multiple Listing Service. For comprehensive statistics dating back to 2005, visit www.MyRASM.com/statistics.