January Real Estate Market Update
Happy New Year! We hope you had a great holiday! Lets see what the real estate market holds for us in 2020. The Sarasota and Manatee County real estate markets are finishing out the year strong. Which is setting a good tone for 2020, rates are still low and with increased buying power due to Conventional, FHA, and VA loan limits being raised its a great time for both buyers and sellers.
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.
November saw a massive increase in pending sales year over year. We usually see this as "Season" starts in January and buyers are looking to secure homes before they come down. With interest rates staying low and lending power increasing this is a good sign for at least 6 to 9 months of continued growth.
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. With SEASON now here you will see a large increase in listings which should drive this number up in the coming months.
The median price is up 3.4% 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 decreased less than 1% on the year. With a total of 5027 homes for sale in Sarasota and Manatee County we are still seeing Condition and Price as important as ever. 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. Speak with your House Match Realtor to make sure you are POSITIONED to best capitalize on this.
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 6.4% Year to Date to 50 days, this number too can be dialed in to specific neighborhoods and price points. However if your home has been sitting longer than 50 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
It is nice to see that the Days to Contract dropped in the super competitive $400,000 - $900,000 range. With inventory dropping a bit, the homes that were sitting are now starting to pick up activity again.
It all has to do with supply and demand. Take a look at the next chart.
We are seeing the biggest increase in that $250-$299 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 $250-$299 range and moving up into the $400-$599 range of homes.
Last but not least we have Closed Sales , with closed sales being up 7.3% 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 closed out strong! Setting the tone for a great 2020!
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!