Due, in part, to the ongoing shortage of available inventory that is keeping home prices elevated, many economists predict that the housing market is more likely to undergo a correction from the double-digit percentage increases in home prices witnessed over the past few years, rather than experiencing a crash.
In March, the market for single-family homes in Sarasota County continued on the same path that we have observed over the last several months. Although sales remain slightly down year-on-year, the median sales price continues to trend upward. While we saw a shift in Manatee, Sarasota’s statistics remained unchanged.
Although we could still use more inventory in Sarasota, the market is in good shape as we head into summer. As all-cash sales decline, buyers requiring financing now have more opportunities to find their dream home.
The market for single-family homes in Manatee County is continuing to shift. For the first time in quite a while, we are seeing growth in YoY transactions. Strangely enough, the increased transactions are coupled with a reduction in median sales price. The median sales price has been defying gravity for well over a year by just going up and up regardless of the number of homes sold. Despite the shifts in narrative in sales and sale price, the market continues to be very healthy. See the infographic from Florida Realtors below for more details.
Over the past month, mortgage interest rates have decreased, which is good news for new borrowers. For every $100,000 borrowed, the recent drop in rates will save them approximately $21 per month. As of this week, the average interest rate for 30-year fixed-rate mortgages in the United States was 6.27%. This marks a notable improvement from the 6.6% rate observed last month.
The single-family home market in Sarasota County is moving a bit differently than Manatee. Closed sales are down materially YoY, but the median sales price still rose by 10%. That is telling us that the majority of the reduction in sales is coming from the lower end of the market. Homes from the middle to the higher end of the market seem to be less impacted by the 2023 downturn in volume. Like Manatee, Sarasota’s market is coming into balance between buyers and sellers. However, it is taking a different path depending on price point. The infographic from Florida Realtors below tells more of the story.
