Early comments from Sarasota and Manatee real estate agents indicated that Hurricane Irma had little impact on home sales, but the September market report showed the two counties suffered decreases in closed sales, pending sales and new listings despite the region mostly escaping major damage from the storm.
Combined closed sales dropped by 16.8 percent in September compared with the same month last year.
The Realtor Association of Sarasota and Manatee cited office closures, re-inspections and tight scheduling for new appraisals as the reasons for the real estate market stall. September’s decline in sales isn’t an effect of the current housing supply and demand but is directly connected to the business and school closures around the hurricane, the association indicated.
“With Labor Day and office closures, there were 20 percent fewer business days in September to complete a sale,” association president Xena Vallone said. “When a storm like Irma comes around, our focus shifts from day-to-day business to the safety of our homes and loved ones.”
September also witnessed a decline in the number of properties put on the market, with new listings for single family homes falling by 31.8 percent. New listings of condos dropped by 20.9 percent in the two-county area.
“We typically start to see more listings in September as buyers prepare for season,” Vallone said. “But when the storm started its path toward Florida, sellers weren’t preparing to list their house, they were preparing to keep it safe.”
Inventory
Housing inventory dropped marginally from August, but overall inventory does show a slight improvement from this time last year. Single-family home inventory in the combined two counties rose by 1.9 percent, while condos increased by 2.9 percent. Inventory supply typically starts to grow in the fall, which brings good news for post-Irma market recovery, the association said.
Pending Sales
New pending sales plunged, with the blame going to Irma causing fewer shopping days. Properties under contact slumped by 29.8 percent in Sarasota County and 26.2 percent in Manatee. Because of those declines, the hurricane will effect closed sales in October, the association noted.
Median Prices
The sunshine amid these dark clouds is the rise in median sales prices, indicating that Florida’s housing market has only stalled, not crashed, the association said. The median price of single family homes in Sarasota increased by 8.4 percent, reaching $269,000, while Manatee topped those figures by rising 9.3 percent, to $295,000. The reverse occurred in condo prices, increasing by 11.2 percent, to $220,000, in Sarasota and 2 percent, to $181,500, in Manatee.
Herald Tribune, October 20, 2017
