December Real Estate Market Update
Happy Holidays! The end of the year is closing in quickly! Hope you had a great holiday weekend. Since our last update we have had small uptick in interest rates and some economic reports that show we are still growing just at a slower pace. Lets see how that has played out in the local Sarasota and Manatee real estate market.
First we always like to look at the number of new homes coming on the market.
So year to date we are now at a break even for new listings compared to last year , now remember this number will not take into consideration all the New Construction homes since they are not all listed for sale.
Next up lets take a look at the number of pending homes or the number of home that have gone into escrow.
We saw another strong increase in pending sales after the slight slowdown in September. Interest rates have remained low after they fell to near record lows in August. We have also seen FHA guidelines loosen up allowing more condo/townhomes purchases to qualify. Which is a great opportunity in the lower price-points. We have also seen the conventional loan limits raised to $510,400.
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.
Looks like inventory has dropped a bit year to date. With the slowdown in new listings it goes to figure that this number would drop a bit as the current inventory sells off. December is a great month to put your home on the market if you don't want to deal with as much competition.
The median price is up 3.5% on the year, which is the amount that values have increased/decreased. This is good to consider if your thinking about selling and comparing prices to what you have seen.
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 risen less than 1% on the year. With a total of 5048 homes for sale in Sarasota and Manatee County we are starting to see Condition and Price become more and more important. As inventory rises buyers have more homes to chose from and the homes with the best VALUE (Buyers perceive value as Price + Condition) will still move fast in this market.
So when you have more homes for sale naturally the time on market or days on market we call it. 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 up 10.6% Year to Date to 52 days, this number too can be dialed in to specific neighborhoods and price points. However if your home has been sitting longer than 52 days you have to review the THE BIG TWO... Price and Condition.
It is interesting to see inventory go down and time to contract go up. That can signal that buyers are becoming a bit more selective in the homes they choose, or that they are choosing new construction over resale. Keep that in mind when pricing your home.
I also wanted to include this to show the difference between price points in how quickly homes are selling
As you can see the higher the price point the longer homes are taking to sell. Why is that? It all has to do with supply and demand. Take a look at the next chart.
As you can see we have a glut of supply in the higher price points. Builders are continuing to build homes in the higher price points even though we can clearly see that there is massive demand in the $200 -$300 price range. So if you have a home to sell in these higher price ranges. Make sure you are keeping it in A1 shape, or pricing it to outpace any new construction you may be competing with.
Last but not least we have Closed Sales , with closed sales being up 6.4% for the year we have a strong indicator that the market is still going strong. With interest rates still near record lows and inventory remaining tight in certain price points it is a great market for both Buyers and Sellers.
The end of the year is finishing strong in closed sales. You still have time to lock in that low interest rate if you are a looking to purchase by the end of the year. Also with inventory ticking down now is a great time to get your home on the market. The buyers that are searching during the holidays are serious and your home may be the one they choose!
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!