August Real Estate Market Update
Times are changing rapidly and we are here to keep you informed about whats going on in your backyard. August is nearly over and we are seeing really strong signs of the market comeback. Lets dive into these numbers and see whats going on.
First we always like to look at the number of new homes coming on the market.
July saw a big increase in new listings coming on the market, this is unusual for July but not a surprise. This is a good sign, showing that people have increased confidence that their home will sell, and that agents are doing the correct things to keep buyers and seller safe. People are starting to realize that the market is hot and its a great time to sell when competition is low.
Next up lets take a look at the number of pending homes or the number of home that have gone into escrow.
July saw another HUGE increase in new pending contracts, this was expected. With stay at home orders ending and businesses opening back up, people are going back out and putting homes under contract. Record low rates hitting under 3% for the first time ever really helped bolster these numbers as well.
Now lets take a look at Months Supply of Inventory. What this means is that if we sold every home available and no more inventory came on the market how long would that take.
Inventory took a huge dip again to 2.4 months, with pendings overshadowing new listings again, this number could drop lower. With listings down this creates a tightening inventory which can be a sign its a great time to get your home on the market, or if your thinking of downsizing/up-sizing its a great time.
The median price is up 6.4% on the year, which is the amount that values have increased/decreased. With tightening inventory levels this is to be expected. If people are competing for homes, this will drive prices up.
The next two numbers we want to look at is the number of homes that are actually for sale, and how long is it taking for those homes to go into escrow.
So first the number of homes for sale has decreased almost 24% on the year. With a total of 4076 homes for sale in Sarasota and Manatee County we are seeing Price as one of the most important factors. If inventory remains low this could change. Our advice is price your home correctly the first time. Capitalize on the equity you can get now and do not try and time the market. Speak with your House Match Realtor to make sure you are POSITIONED to best capitalize on this.
So when you have fewer homes for sale naturally the time on market or days on market we call it will go down. Which is how long does it take for a home to go on the market and then go into escrow.
So the time to contract is down 24.1% Year to Date to 41 days, this number too can be dialed in to specific neighborhoods and price points. However if your home has been sitting longer than 41 days you have to review the THE BIG TWO... Price and Condition.
With inventory shrinking, homes that are priced well are getting snatched up almost 10 days quicker then they were this time last year. If you are in the market to buy, and you find a home you love don't sleep on it or you might not sleep in it.
I also wanted to include this to show the difference between price points in how quickly homes are selling
Days to contract dropped throughout the entire range of home prices. With inventory at record low levels, the homes that were sitting are now starting to pick up activity again. We use this data to know the competitive market we are going into and how to best position your home to win.
It all has to do with supply and demand. Take a look at the next chart.
We are seeing the biggest increase in that $300- $399 range of listings, what we are noticing is that alot of Sellers are taking advantage of the great interest rates to MOVE UP in home. They are selling and taking the equity they made in the $300- $399 range and moving up into the $400-$599 range of homes. Couple that with sub 3% interest rates and you can get alot of home for the money!
We called it last month, we said there would be a huge increase in closed sales in July and here you have it! A 24% increase brings us close to even for the year. We should end the year with a higher sales number than ever before in Manatee and Sarasota Counties.
We hope all of you are safe, healthy, and happy!
If you have any questions or would like some more specific data on your home, neighborhood, or price point. Please do not hesitate to reach out!