September Real Estate Market Update
Times are changing rapidly and we are here to keep you informed about whats going on in your backyard. September is nearly over and the Sarasota and Manatee real estate market continues to sizzle. 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.
August saw an increase in new listings coming on the market, still room for alot more inventory. Seller inventory is still playing catchup to buyer demand. Which is great news for sellers, if you were considering a move now is the time.
Next up lets take a look at the number of pending homes or the number of home that have gone into escrow.
August saw another HUGE increase in new pending contracts, this was expected. The economy is rebounding, home affordability is at an all time high, and record low rates hitting staying near 3% is creating the perfect storm for home buyers.
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 2.2 months, with pending's 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 8.3% 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 only 2760 homes for sale in Sarasota and Manatee County we are seeing Value (Price/Condition) 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 25.9% Year to Date to 40 days, this number too can be dialed in to specific neighborhoods and price points. However if your home has been sitting longer than 40 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 11 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!
Closed sales are up 11% from this time last year and on pace to break last years record of sales! 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!