Sarasota July Median Prices Continue To Rise, Inventory Tight
During the month of July, the median home price continued its rise upward in both Sarasota County and Manatee County. In Sarasota County, single family properties climbed an impressive 10.5 percent over July 2015, increasing to $242,500; while the single family residence median price in Manatee County rose higher at 11.7 percent from July 2015 to $279,250. Likewise condo median prices rose in both counties. In Sarasota, the median condo price increased to $205,000, or 7.9 percent from July 2015; in Manatee, the median price increased dramatically to $185,250, or 21.9 percent over July 2015.
Sarasota and Manatee July Sales
During the past year, single family home sales in Sarasota County fell by 21.7 percent, as condo unit sales also fell by 24.6 percent. During the same twelve month period, single family home sales in Manatee County increased by 0.7 percent, as condo sales also rose by 11.5 percent. The mixed results indicate a coming trend over the next few to several months. With interest rates still near historic lows and median prices climbing, buyers have more incentive to jump into the market to take advantage of the dynamics.
Pending Sales in Sarasota and Manatee Counties
Pending sales across both counties continue to show mixed results. However, the trend appears to overall demonstrate a tightening of new homes coming onto the market. Anecdotal evidence is present within the Sarasota and Manatee real estate market. For instance, the president of the two-county association disclosed she recently reviewed a purchase contract which stipulated the purchase of another home by the seller before closing escrow -- a contingency that's usually the opposite.
“July marks the seventh month this year where pending sales are down. This is also the sixth month where listing inventory has been higher than the same period last year. It’s reasonable to expect that the prices will adjust to the slowing demand,” explained Linda Formella, 2016 President of the Realtor Association of Sarasota and Manatee.
Top five luxury homes closed in July
Pending sales can serve as a future indicator of closed sales. Pending sales in 2015 were strong from January through August but this year, in 2016, a decline in pending sales began in May. Compared to last July new pending sales for both Sarasota County and Manatee County in single family and condos are down by 18.5 percent compared to last July.
According to recent report by Jonathon Smoke, chief economist for the National Association of Realtors, a full 40 percent of all buyers participating in the survey reported the single largest obstacle in making a new home purchase is the inability to find another home fitting their needs. If more homes were available for sale on the market, an increased number of buyers would be activity looking and submitting purchase offers. The result of course, would be increased sales and would produce more incentive for on-the-fence homeowners to resale their properties.
Fortunately, there is good news when it comes to inventory. Single family homes in both Sarasota and Manatee counties are experiencing a steady rise, recording a 19.5 percent increase over July 2015. This represents 4.2 months' of supply in Sarasota County and a 4.4 month's supply of inventory in Manatee County. In addition, condo unit inventory is likewise on the rise in both counties. In Sarasota County, condo inventory is up by 44.5 percent over last year, while in Manatee County, condo inventory is up 12.2 percent from last year. These represent 5.1 months' supply of inventory and 4.1 months' supply of inventory, respectively. These figures still demonstrate in both counties, a seller's market remains in effect.
Sarasota and Manatee County Market Statistics
There were 680 closed sales in July of this year, down 21. 7 percent from July 2015 in Sarasota County. The median time to contract in Sarasota County in July came-in at 45 days, and the median time to sale was 97 days, both represent fewer days than July 2015. New listings in Sarasota County in July totaled 757, down 9.3 percent from July 2015, when 835 new listing were put on the market.