The Buying Frenzy Has Slowed, But Home Prices Are Holding Tight
This year kicks off with a much-needed jump in home supply—an increase of more than 400 percent overall for both single-family homes and condos compared to the same time last year, according to the latest monthly report by the Realtor Association of Sarasota and Manatee (RASM).
Across the two-county region, there were 1,168 closed sales in January, a year-over-year decrease of 34 percent. Single-family home closed sales decreased by 32 percent, to 368 sales, in Manatee County, and by 37 percent, to 411 sales in Sarasota County. Condo sales decreased by 24.4 percent, to 170 sales, in Manatee County, and by 37.2 percent in Sarasota County, to 219 sales.
Still, median sales prices for all property types remain higher than last year, with the exception of Sarasota single-family homes, showing that values are holding steady.
The median sale price for condos is higher than last year, with a 14.6 percent increase to $345,000 in Manatee County and a 19.3 percent increase to $417,500 in Sarasota County. For single-family homes, Manatee County prices increased by 5.4 percent, to $505,710, while median home price in Sarasota decreased by just 1 percent, to $459,999.
"It feels like buyers waited through the fourth quarter of last year to see what might happen as far as a drop in prices or interest rates, since there wasn’t a lot of risk or benefit to doing something right then and there," says Adam Hancock, owner and founder of The Sunshine State Company. "Most buyers here aren't relocating due to work constraints so they can wait.
"But people are now more confident that this is the new normal and those who want to move here are thinking this will last a long time so they're back in the market," he continues. "Sure, there’s more inventory, but it’s still very short and we’d have to get back to five or six months for it to become a buyer’s market.”
Inventory now stands at three months for single-family homes in the North Port-Sarasota-Bradenton metro area, according to the report. At the same time last year, it was historically low, at just over half a month of inventory. Numbers are roughly the same for condos and townhomes.
Last month, 2,580 listings were added to the market for both property types in the two-county region, a year-over-year increase of 14.4 percent. When compared to December of 2022, new listings in the North Port-Sarasota-Bradenton MSA increased by 56.8 percent.
The median time from the listing date to contract date for Sarasota County for a single-family home is 29 days, vs. seven days in January of last year. Similarly, in Manatee County, it's 32 days, vs. seven days in January of last year.
The median percentage of original list price received of single-family homes in the North Port-Sarasota-Bradenton metro area is 95.2 percent. Last January, it was 100 percent.
Although percentages have dropped compared to the same time last year, cash purchases for single-family homes in the metro area hover around 40 percent, and more than half of condos and townhomes.
To check out past reports and more, click here.