Continued Demand and Low Inventory

Continued Demand and Low Inventory Keeps Home Prices Steady in Sarasota and Manatee

The North Port-Sarasota-Bradenton MSA’s housing market in August showcased more inventory and higher prices than the previous year, as reported by the REALTOR® Association of Sarasota and Manatee (RASM) with data from Florida REALTORS®. Although the region’s sales declined marginally compared to the previous year, Manatee County’s single-family sales bucked that trend with a 6.9 percent increase.

Combined sales for single-family homes and condos in the MSA decreased year-over-year by 0.67 percent to 1,782 sales in August. In Manatee County, single-family sales increased by 6.9 percent to 616 sales and condo sales decreased by 0.8 percent to 242 sales. In Sarasota County, single-family sales decreased by 4.9 percent to 645 sales, and condo sales decreased by 5.7 percent to 279 sales.

“One of the unique aspects of our local real estate market is the counterintuitive trend where sales are down, but property values are on the rise,” said Brian Tresidder, 2023 RASM President and Strategic Growth & Sales Manager at William Raveis Real Estate. “A few factors contributing to this market would include our low inventory levels limiting buyer's options, and the in-migration of people moving to our area that keeps buyer demand relatively high.”

Median sale prices for both property types increased year-over-year in the two counties. For single-family homes, the reported median sale price in Sarasota increased by 9.2 percent to $519,000, while Manatee was at $525,000 in August, which showed no change from the previous year. In the condo market, Sarasota prices increased by 2.8 percent to a median $385,650, while Manatee County condos increased by 1.8 percent to $358,990.

Combined for both property types in the North Port-Sarasota-Bradenton MSA, there were 5,502 active listings at the end of August, a 28.3 percent increase from the same time last year and a 3.6 percent decrease from the month prior. Across the two-county region, there were 3,652 active listings reported for single-family homes and 1,850 listings reported in the condo market.

“Florida's enduring desirability as a place to live, a continued influx of residents, its affordability and spacious housing options compared to the west coast and northeast parts of the county, along with solid job growth, all bolster a continued buyer demand,” added Tresidder. “However, rising mortgage rates will continue to be a factor in this market, contributing to fewer sales than in 2021 and early 2022 when rates were closer to three percent.”

While active listing inventory remains relatively low in both Sarasota and Manatee counties, there is a gradual uptick in new listings this month. At the end of the month, there were 2,260 new listings combined for both single-family homes and condos in the MSA. Broken down for each property type, there were 1,591 new listings for single-family homes and 669 new listings for condos, representing a year-over-year increase of 2.3 percent and 15.7 percent respectively.

The month’s supply of inventory has increased year-over-year for the 16th consecutive month. In Sarasota County, there was a 3.3-month supply for single-family homes and a 3.5-month supply for condos, a year-over-year increase of 65 percent and 118.8 percent respectively. In Manatee County, single-family home supply increased by 12 percent to a 2.8-month supply and condo supply increased by 83.3 percent to a 3.3-month supply.

Pending sales, or the number of properties that went under contract last month, decreased for both property types in both counties. For single-family homes, pending sales decreased year-over-year by 13.5 percent in Sarasota and by 4.9 percent in Manatee. For condos, pending sales decreased by 20.7 percent in Sarasota and by 4.7 percent in Manatee. This is the fifth consecutive month that pending sales in the condo market have decreased from the previous month.

The median number of days from the listing date to contract date continues to increase year-over-year. For single-family homes, Manatee homes went under contract within a median of 33 days, a 153.8 percent increase from last year and Sarasota homes went under contract in 31 days, a year-over-year increase of 121.4 percent. The condo market is showing the highest number of days from listing date to contract date since 2020, with 50 days reported in Manatee County (a 284.6 percent increase) and 46 days reported in Sarasota County (a 228.6 percent increase).

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