The beginning of 2016 has seen some fluctuations in total sales and home prices as the housing market steadies itself after a record-breaking 2015. Even with a dip in sales, median home prices remain strong and the market appears solid.
For the month of February, total sales in Sarasota County were down 6.4 percent with a 13.2 percent dip in single family sales offset by a 9.6 percent increase in condo sales. Similarly, in Manatee County, total sales were down a mere 2.4 percent, with a 10.7 percent decrease in single family sales offset by an impressive 19.5 percent increase in condo sales. More buyers may be considering condos because there are not as many single family listings under $200,000 as there are condo listings.
Contracts for sales closed in February were likely written in December, a typically slower month because of holidays, and January, when we were experiencing stock market fluctuations and oil industry uncertainty. Mid-December, the Federal Reserve raised the target funds rate for the first time since June 2006. The area is also seeing fewer Canadian buyers this year, because of the exchange rate with the US Dollar.
“With record sales last year and extremely low inventory, it only makes sense that we would slow down a bit,” said Linda Formella, RASM President. “However, we are seeing an increase in inventory, as owners appear to be entering the market to take advantage of the price recovery we have experienced.”
Inventory of available properties is on the rise in both counties.
- For single family homes in Sarasota County, inventory is up 3.7 percent from February last year, and up 7.1 percent in Manatee County.
- Condo inventory is likewise up in both counties, with Sarasota County up 17.0 percent, while Manatee County saw an increase of 18.2 percent.
“Our inventory has been down over the past few months, so seeing this bump is great news for our market,” said Formella. “New construction has aided in this increase, and provided more opportunities overall.”
The median sale price across both counties has seen fluctuations as well. Single family median prices rose 28.7 percent in Sarasota County to $252,250, while decreasing only slightly in Manatee County, down -0.7 percent to $255,000 from last year. Sarasota County remained stable with no change in condo prices year over year, remaining at $190,000. Manatee County on the other hand, experienced a 9.3 percent increase in condo sales price over last year, to $165,000.
The months’ supply of inventory in the two-county area remains in the range from 4.6 to 5.4 months’ inventory this year, compared to 4.6 to 5.1 months last year. This statistic reflects the time it would take to sell all the active listings on the market at the current month’s rate of sales. A six-month supply is considered a balanced market, so it is still a seller’s market, though buyers seem to be taking more time and showing less urgency with the increased inventory.
The drop in the percentage of distressed sales (foreclosures and short sales) signals another sign of health in the market. Both the number of distressed sales and the share of the market have continued to decline, signaling our continued recovery. Distressed sales for single family homes in the two-county area represented only 11.49 percent of all closed sales for the month, compared to 23.94 percent last year. Similarly, distressed condo sales came in at 6.12 percent of those closed sales, compared to 12.05 percent last year. At their peak a few years ago, 48 percent of all sales were distressed.
“The fluctuations we see in today’s market are normal, healthy even,” added Formella. “We are experiencing smart and sustainable growth. I am encouraged by the hard work of our Realtor® members and the positive attitudes I witness every day. There is no doubt: our future is bright.”
Realtor Association of Sarasota and Manatee March 21, 2016
