While transactions are continuing to trend downward, inventory hasn’t been growing as much as you would expect as most sellers appear to be sitting on the sidelines. That paradigm is causing the median sales price to continue to rise significantly despite slowing sales. We have a few months until we hit peak season in Manatee; however, it is looking like the current environment will likely hold through the spring. The infographic below from Florida Realtors has the details.
Mortgage interest rates have risen sharply again over the last 30 days. The recent change will cost new borrowers over $59 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 6.92% as of this week. Last month at this time, they were sitting at 6.02%.
Sarasota County market data from August isn’t that much different from what we are seeing in Manatee. Transaction volume is down year on year, and inventory is building. That said, it appears to have little impact on pricing as of yet. The law of supply and demand should alter that somewhat in the coming months. That said, the uncertainty surrounding the overall economy could take us a number of directions as we head into the peak real estate season in Florida.
While the number of new listings slowed down somewhat in August, inventory levels continued to rise. We are still moving towards a more balanced market, where sellers are no longer holding all the cards. Rising interest rates have yet to really have a material impact on pricing, but it sure feels like the meteoric rise we saw over the last 18 months is a thing of the past. With our peak transaction season rapidly approaching, market direction remains uncertain.
As the Pandemic housing boom fizzled out across the country this summer, we saw inventory jump. In bubbly markets, like Austin and Boise, that inventory jump was greater than 300% between March and August. However, that inventory spike is already fizzling out.
