Rising inventory and record price

Letters


For the second consecutive month, active listing inventory in the two-county area increased year-over-year in May 2022. According to data from Florida Realtors and compiled by the Realtor Association of Sarasota and Manatee, the The residential market also reported the highest prices on record for all property types in both counties, along with fewer completed sales and an increase in new listings.
Combined sales in the two counties and for both property types fell 4.6% year over year to 2,466 sales in May, but were up 7.9% from the previous month .

Single-family sales fell from a year ago in Manatee County by 7.3% to 685 sales, while single-family sales in Sarasota fell 7.6% to 910 sales. In the condominium market, completed sales were up 6.3% to 339 sales in Manatee and down 1.7% to 532 sales in Sarasota.

“While everyone is talking about rising interest rates and inflationary pressures, the number of sales is starting to decline and the number of properties actively on the market is starting to increase. Some of this is cyclical depending on the time of year as we are in our summer downturn, but for sure higher interest rates and inflation are starting to impact our market,” said RASM 2022 Chairman Tony Veldkamp, ​​Senior Advisor at SVN Commercial Advisory Group. “Prices, average and median, remain very high and continue to rise, as we continue to see the time from listing to contract measured in days, not weeks. Our active inventory of single-family homes has finally topped a months supply in both counties, but we consider a healthy and balanced market to be a six month supply.

At the end of the month, there were 2,556 combined active listings in the two counties for both markets, a 58.5% increase from May of last year. Compared to last month, active inventory was up 29.8% with 587 more listings reported at the end of May than at the end of April.

Prices continue to rise in May, with the highest median prices reported for both property types in both counties. Single-family home prices in Sarasota rose 21.6% to $495,000, while the median price in Manatee rose 37.5% year-over-year to $550,000. For condos, the median price in Sarasota rose 29% from a year ago to $403,000, and manatee prices rose 51.9% to $369,900.

“If it’s time for someone to buy a home, they shouldn’t be put off by interest rates if they can afford the increased payments. Houses can be permanent, while interest rates are temporary. You can live in the house for the next 20 to 30 years or more, but you can refinance this loan in two years, five years or ten years; whenever interest rates become more favorable,” Veldkamp added.

Unsold inventory for single family homes is now at a 1.2 month supply, a 100% increase in Manatee County and a 71.4% increase in Sarasota County. In the condominium market, monthly inventory supply is one month, an increase of 66.7% for Manatee County and an increase of 42.9% for Sarasota County.

The number of properties added to the market last month rose year-over-year by 17.2% for single-family homes and 12% for condos. New registrations were also up from last month with a combined 3.7% month-over-month increase in the North Port-Sarasota-Bradenton MSA.

The median time it took for properties to go under contract was 6 days in May in MSA North Port-Sarasota-Bradenton, which showed no change for single-family homes and a 33.3% decline for condos.

Monthly reports are provided by Florida Realtors with data compiled from Stellar MLS. Visit www.MyRASM.com/statistics.