Home-price gains in Sarasota and Manatee County lagged behind the state and nation in October.
Single-family home prices rose 4.15 percent over the year in the Sarasota-Manatee area, less than the 5.4 percent average posted throughout Florida and the U.S., real estate database CoreLogic reported Tuesday.
Sarasota-Manatee ranked 248th for annual price change among the 403 U.S. metro areas analyzed.
Home prices here remain 14.0 percent off their pre-recession highs, CoreLogic said, the nation’s 47th smallest peak-to-current difference.
“Rising prices and interest rates have reduced home buyer activity and led to a gradual slowing in appreciation,” said Frank Nothaft, chief economist at CoreLogic. “October’s mortgage rates were the highest in seven and a half years, eroding buyer affordability. Despite higher interest rates, many renters view a home purchase as a way to build wealth through home-equity growth, especially in areas where rents are rising quickly.”
Local home prices increased 0.57 percent from September to October, slightly ahead of the 0.4 percent Florida rate and 0.50 percent nationwide rate.
The median resale price of single-family homes in Sarasota-Manatee is $283,000, according to the Florida Realtors trade group.
CoreLogic forecasts that home prices will grow by 7.2 percent in Florida and 4.8 percent nationwide in the next 12 months. They are expected to increase by 0.4 percent in Florida but decrease by 0.7 percent from October to November.
A related survey about home ownership found that buyers value safety and having something to call their own.
“Home ownership remains an important part of the American dream,” said Frank Martell, president/CEO of CoreLogic. “Our research found that being a homeowner makes consumers feel safe in their homes. Renters really want something to call their own. However, until affordability comes back into balance, renters will have a hard time purchasing a home.”
Sarasota Herald-Tribune Dec. 4, 2018
