Home Prices Up in 94 Percent of Major U.S. Markets

Homes Prices up for 2019Across the country, home prices remain on an uptrend, escalating in 94 percent of major metropolitan markets, according to the latest National Association of REALTORS® quarterly report, based on findings for the fourth quarter of 2019. In the fourth quarter, the existing-home median price was $274,900, a 6.6 percent gain year-over-year.

Buyers continue to lean on low mortgage rates, the report shows. In the final quarter of the year, household incomes rose to $79,740—an increase of roughly $2,650 year-over-year. At the same time, to afford a mortgage, NAR estimates home buyers needed $48,960, or about $3,940 less, year-over-year, due to lower mortgage payments. In the fourth quarter, the average 30-year fixed mortgage was 3.76 percent.

For first-time home buyers, affordability also expanded last quarter. To afford a mortgage, the average first-time home buyer needed $48,288, or approximately $575 less year-over-year, and their average monthly mortgage payment slid to $1,006, assuming a 10 percent down payment.

Still, housing options remain sparse. At the end of the fourth quarter, 1.4 million existing homes were on the market, an 8.5 percent deficit year-over-year, according to the report.

“We saw prices increase during every quarter of 2019 above wage growth,” explains Lawrence Yun, chief economist at NAR. “It is challenging—especially for those potential buyers—where we have a good economy, low interest rates and a soaring stock market, yet are finding very few homes available for sale.”

In the fourth quarter, appreciation climbed considerably in 18 major markets, including:

  • Trenton, N.J. – 18.2% year-over-year
  • Boise City-Nampa, Idaho – 13.7%
  • Gulfport-Biloxi, Miss. – 11.8%
  • Kingston, N.Y. – 11.2%
  • Albuquerque, N.M. – 11.1%

Meanwhile, the coasts continued their high-price streak, with the costliest homes in:

  • San Jose, Calif. – $1.25 million (-0.3% year-over-year)
  • San Francisco, Calif. – $999,000 (3.9%)
  • Anaheim-Santa Ana, Calif. – $828,000 (3.6%)
  • Urban Honolulu, Hawaii – $812,600 (0%)
  • San Diego, Calif. – $655,000 (4.6%)
  • Boulder, Colo. – $630,400 (6.4%)
  • Los Angeles-Long Beach, Calif. – $617,300 (7.2%)
  • Seattle-Tacoma, Wash. – $528,800 (8%)
  • Nassau County, N.Y. – $496,600 (3.7%)
  • Boston-Cambridge, Mass. – $482,800 (4.9%)

To afford these areas, a family has to make more than $100,000, assuming 5 percent down on a 30-year fixed mortgage, according to the report.

“Rising home values typically create wealth gains for existing homeowners as shown in NAR’s latest study,” says Yun. “However, areas that are deemed ‘too expensive’ will obviously have trouble attracting residents and companies looking to do business there. We need a good balance that benefits both current and future homeowners, but right now, the balance is still in favor of home sellers.”

Rismedia.com February 12, 2020

Sarasota Home Prices Near Pre-Recession Peaks

Sarasota Home PricesAfter wild swings before and after the economic downturn, home prices are inching closer to their pre-recession peaks in the Sarasota-Manatee County region.

Single-family homes and condominiums sold for a median $260,000 in the two-county area during the second quarter of 2019, a 4% increase over the year, according to a new report from real estate researcher ATTOM Data Solutions.

That price is just 3% off the pre-recession median high of $267,500 set in late 2005, just before the housing bubble burst. The Sarasota-Manatee area is one of 31 metro areas among the 108 largest in the U.S. where home prices still fall short of their pre-bust pinnacles.

That’s no surprise, given how deeply local home prices plunged during the downturn. The median price hit bottom at $127,000 in early 2011, a 53% dive from the peak, ATTOM’s report shows.

After the recession, local prices rebounded to double-digit annual gains, but those have slowed in recent years.

“In the general housing market, all indices have been pointing to modest appreciation in accordance with historical norms of 3% to 5%, but not the accelerated rates we have experienced since 2012,” said Robert Goldman, an agent with Michael Saunders & Co. in Venice. “If sellers failed to recognize this shift, then a tug of war of sorts would arise, wherein it would take longer, on average, to sell a home, the spread between final sold price and original list price would widen, and inventory would increase with the potential for stagnant pricing. There appears to be a growing body of evidence for this.”

Asking and selling prices are in a state of flux here, he said. Single-family homes are selling at 89% of original list price and condos at 90%, less than the customary 92% to 93%. Residential sales that used to take 60 to 75 days to close now need 90 days.

“All in all, barring unforeseen events, we should settle into a neutral market, with modest and sustainable appreciation, provided sellers have realistic expectations, in alignment with where the market is, rather than where one wishes it to be,” Goldman said.

Sarasota-Manatee homeowners are holding on to their properties longer, an average of 8.25 years before selling. That compares with two to three years during the frenzied buying-and-selling before the housing crash.

Those homeowners who sold in the second quarter realize an average price gain of $63,198, or 32.1% from their original purchase price. That was 5% higher over the year.

Nationwide, home and condo sales rose nearly 11% over the quarter and 6.4% annually to a median $266,000 — a new price peak. Homeownership also hit a new high at an average 8.09 years.

“As warmer weather brings a rush of house hunters to the market, the latest spike in median home prices marked the largest quarterly increase since the second quarter of 2015 and the third-biggest increase since the market started climbing out of the Great Recession in 2012,” said Todd Teta, chief product officer at ATTOM.

In Sarasota-Manatee, cash buyers are still major players. They accounted for nearly 43% of all home and condo sales during the April-June period, the eighth-highest ratio among the U.S. metros studied. Nationwide, cash sales were down to a 25% share.

Sarasota Herald Tribune July 18, 2019

Florida Cities See Greatest Percentage of Price Cuts as Housing Market Cools

The housing market is tipping in favor of buyers, with a significant percentage of homes on the market selling for less than their original listing price.

This is according to real estate startup Knock, which reveals which markets have the highest percentage of homes that will sell below asking in its second quarter Deals Forecast.

Homebuyers are increasingly likely to score a deal, Knock says, forecasting that 75% of current listings will sell below their original listing price in Q2, and pinpointing the average number of days on the market as 25 and the average price reduction at 3.3% below asking.

The best deals, it reveals, can be found in the South.

Among the top 10 cities that had the greatest percentage of houses sell for less than asking, seven were located in the South.

Florida took the lead, with four cities in the sunshine state making the list, including Miami, which nabbed the No. 1 spot for both the size and the frequency of price reductions.


Florida Price Cuts

HousingWire.com April 5, 2019

Regional Home Prices Lag State and Nation

Prices LagIn a reverse of headlines – Regional Home Prices Lag. Home prices continue to rise in Southwest Florida, but not as fast as in the state or nationally.

Single-family home prices in the Sarasota-Manatee region grew 3.4 percent over the year in January, trailing the average increases of 5.1 percent throughout Florida and 4.4 percent in the U.S., real estate database CoreLogic reported Tuesday.

Sarasota-Manatee ranked 252nd for price gains out of the 403 metro areas analyzed in the report.

Home prices in the region remain 14.1 percent off their pre-recession peaks, CoreLogic said, the nation’s 43rd lowest peak-to-current difference.

“The spike in mortgage interest rates last fall chilled buyer activity and led to a slowdown in home sales and price growth,” said Frank Nothaft, chief economist at CoreLogic. “Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago. With interest rates at this level, we expect a solid home-buying season this spring.”

An earlier report from the Florida Realtors trade association found the median price of a resale home in Sarasota-Manatee increased 3.3 percent over the year, to $299,000, in the first month of 2019.

Local home prices gained 0.75 percent from December to January, topping the 0.1 percent U.S. increase.

Nationwide, home prices grew at the weakest pace since August 2012. They are forecast to rise 3.4 percent over the next 12 months.

“The slowing growth in home prices was inevitable in many respects as buyers pull back in the face of higher borrowing and ownership costs,” said Frank Martell, president/CEO of CoreLogic. “As we head into 2019, we can expect continued strong employment growth and rising incomes which could support a re-acceleration in home-price appreciation later this year.”

States with the highest year-over-year home appreciation were:

Idaho, 11.2 percent

Nevada, 10.2 percent

Utah, 8.9 percent

Two states posted annual price declines:

Louisiana, down 0.8 percent, and North Dakota, off 0.7 percent.

Herald-Tribune March 5, 2019

Sarasota-Manatee Home Prices Rise Slower than Florida and U.S.

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

April Home Sales Rise Despite Inventory Challenges

April Home SalesIn 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 and Manatee condo sales increased by 2.5 percent. As for single family homes, Manatee sales increased by 5.8 percent, while 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 home buyers 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. Manatee single-family home prices increased by 5.4 percent to $311,000 and Sarasota increased by 4.6 percent to $285,000. Condo median prices in Sarasota increased by 9.3 percent to $235,000 and Manatee increased by 23.1 percent to $209,950.

“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. Manatee condos represent a 4.5-month supply and Sarasota condos are at a 4.6 month-supply. Manatee single-family homes are at a 3.9-month supply and 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, while Manatee increased by 2.2 percent to 47 days from April 2017. For Sarasota condos, the time to contract is down by 6.5 percent to 43 days, while Manatee condos are down by 24 percent is to 38 days on the market. With tighter inventory, properties are spending less time on the market.

Pending Sales
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 and Manatee by 16.1 percent.

The REALTOR® Association of Sarasota and Manatee, May 24, 2018

Continued Increase in Median Sales Prices – Sarasota Real Estate

Market statistics for June 2017 show an increase in inventory, median sales prices and the median time to contract. Compiled each month from My Florida Regional Multiple Listing Service, the data also indicates an increase in pending sales and a decrease in closed sales, as compared to last year, for the combined two county area.

Single family home sales are down by 0.4 percent, while condos made a slight increase of 1.5 percent, mostly in Sarasota. Pending sales can be a good indicator of future closed sales. Pending sales increased by 7.9 percent for condos and single-family homes in the two counties combined.

Among a decrease in closed sales and new listings, the Sarasota condo market stands out with a significant 36.2 percent increase in pending sales and a jump in new listings, but a decrease in median price.

Inventory has also shown an increase year over year. When compared to last month, however, inventory showed a decrease. Condos decreased by 6.2 percent from last month and single-family homes dropped by 3.6 percent.

“With most sellers aware of the market being a sellers’ market, they are testing the waters with higher listing prices,” says Xena Vallone, 2017 RASM President. “And now we’ve been seeing a longer period of time between the listing and the contract.”

New listings showed improvement between April and May, but didn’t continue in June. This month, condos decreased in new listings by 5.8 percent and single-family homes decreased by 3.4 percent.

The time between the listing date and the contract date has been increasing for the last three months. Sarasota condos spent 67 days, while Manatee spent 54 days on the market. For single family homes, Sarasota is at 61 days on the market and Manatee at 47 days.

Median prices also continue to rise. Single family homes in Sarasota are at a median price of $275,000, an increase of 10.9 percent from last year. Manatee single family home prices increased by 4.5 percent to $297,750. Condo prices are up 4.9 percent to $182,500 in Manatee County, but showed a 2 percent decrease for Sarasota County at $215,000.

“An increase in median prices isn’t always favorable for a seller,” says Vallone. “While they are able to sell their home at a higher price, the challenge is finding a replacement home and at the right price.”


Realtor® Assn. Sarasota and Manatee July 24, 2017

Local Home Prices Rise 6.3% – Sarasota Real Estate

Home prices rose 6.3 percent in May in Sarasota-Manatee, a rate that was slightly slower than in the state and nation.

Charlotte County, however, topped them all by posting a 7.9 percent jump in home prices compared with May 2016, real estate researcher CoreLogic reported Wednesday.

Florida posted the nation’s 10th-highest rate of year-over-year price hikes, at 6.4 percent. Prices nationwide moved up 6.6 percent.

Home values in Florida still remain nearly 20 percent off their pre-recession peaks.

“The market remained robust with home sales and prices continuing to increase steadily in May,” said Frank Nothaft, chief economist at CoreLogic. “While the market is consistently generating home-price growth, sales activity is being hindered by a lack of inventory across many markets.

“This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1 percent on a year-over-year basis in May of this year compared with May of last year,” he said. “Rents in the affordable single-family rental segment — defined as properties with rents less than 75 percent of the regional median rent — increased 4.7 percent over the same time, well above the pace of overall inflation.”

Prices in Florida are projected to increase by 6.8 percent over the next 12 months, outpacing the 5.3 percent U.S. forecast.

  • From April to May, home prices rose 1.1 percent in Sarasota-Manatee and 1.0 percent in Charlotte, CoreLogic said.
  • Local home price activity was mixed in a recent Florida Realtors report. A re-sale house in Sarasota County traded for a median $260,000 in May, down 1.1 percent over the year, while a home in Manatee sold for $299,000, up 7.8 percent. Prices in Charlotte rose 12.5 percent, to $216,513.

“For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending,” said Frank Martell, president/CEO at CoreLogic. “For renters and potential first-time home buyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”

States with the highest year-over-year home appreciation were Washington, at 12.6 percent; Utah, at 10.4 percent; and Oregon, at 9.0 percent, according to CoreLogic.

States where home prices fell were Wyoming, down 2.2 percent; West Virginia, off 1.2 percent; and Alaska, down 0.3 percent.

Herald-Tribune July 5, 2017

Home Prices Continue to Rise During Seasonal Sales Dip

Sarasota Real EstateThe 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