MONDAY AUGUST 1, 2022 |
Interest rates are pushing stocks higher in Sarasota and Manatee counties. But prices continue to rise in the area, according to the Association of Realtors of Sarasota and Manatee. This comes as the Federal Reserve takes action to cool the market and calm inflation.
There were significantly fewer completed sales in the two-county market in June. The Association recorded 2,088 sales for the month in the North Port-Sarasota-Bradenton metro area, compared to 2,849 in June 2021. This represents a decline of 26.7%.
“While we continue to see month-over-month and year-over-year price increases, the number of completed sales has fallen to a level that was more typical for a pre-June month. pandemic,” said Tony Veldkamp, President of the Association of Realtors and Senior Advisor to the SVN Commercial Advisory Group.
A slowdown in sales led to an increase in inventories. A year ago, there was barely half a month of residential properties available on the market. But there’s still a larger-scale shortage, Veldkamp said.
“Meanwhile, the amount of active inventory continues to grow by more than double the number of listings compared to the same period last year. With less than two months of supply of single-family homes, we are still far to have the six-month supply needed to balance the market. The market is changing as we see changes in the buying process, but today we are still in a seller’s market.”
The June selloff ended well before the Federal Reserve’s decision last week to raise its benchmark interest rates by 0.75% at a meeting in July. The Fed in June also voted midweek to raise rates. This means that over the past two months the benchmark rate has risen from 1% to around 2.5%, as part of an effort to rapidly cool inflation.
So far, rising inventories and rising rates have not prevented a continued rise in the median home price in Sarasota and Manatee counties. For the first time ever, the median single-family home price in Sarasota has risen to $500,000. That’s a 25% year-over-year increase. It rose higher and higher in Manatee County to $550,000, up 35.7% from last June.
Similarly, prices for condominium units have inflated. Manatee County is now reporting a median price for condo and townhouse sales of $356,500, and in Sarasota the median price sits at $416,250.
As sales have slowed and inventory has started to climb, homes aren’t staying on the market long. Reported media time for condos to come under contract to market is approximately seven days. The same is true for homes in Sarasota County and in Manatee, single family homes are selling even faster with a median time to market of six days.