We’re in the “careful what you wish for” zone, not just Floridians, but every homeowner across the country. Prices are up, inventory is low and a lot of potential buyers are really unhappy; where will it end?
Home prices rose around the country during the first quarter of the year to a record level. The median sale price for existing single-family homes was higher in the first quarter compared with a year earlier for most of the metro area tracked by the National Association of Realtors. They reported that in 89% of the metro areas tracked, median prices rose by more than 10% from last year.
In addition, the National Association of Realtors reported the United States average median single-family home appreciation rate was up 16%. The following are first-quarter median single-family appreciation rates for some of the major areas around the country: Northeast up 22%; West up 18%; South up 15% and Midwest up 14%. This may be a confusing mouthful, but it boils down to no matter where you live or are trying to buy a home, you’ll pay a lot more than last year.
Realtor.com also reported the number of active listings on their website was down 52% from a year earlier at the beginning of May. The fact that mortgage rates are low, even though they did have a slight blip up, is not significant in some areas since all-cash buyers are representing a large slice of buyers. And Fannie Mae is forecasting median existing-home prices to rise 11.5% in 2021 then slow to a 4% increase in 2022, none of which is good news for buyers who are getting priced out of the market every month. Not to mention lenders who are less than enthusiastic about giving mortgages to first-time borrowers, especially if their credit ratings are less than very high 700s.
Before I go into Manatee County’s April sales statistics reported by the Realtor Association of Sarasota and Manatee, comparing April of last year to April of this year will show remarkable changes because April 1 of last year was the beginning of the COVID-19 lockdown and a pause in real estate sales. Regardless, the numbers are incredible, breaking yet another record for single-family median sales price.
April single-family closed sales were up 69.7%, cash sales were up 166.7% and the median sale price was $405,000 up 19.1% a new record. The average sales price was $578,162, up 42.2%, the median time to contract was seven days and month’s supply of available properties was 0.6 months.
April condo closed sales was up 126.8%, cash sales were up 121.7% and the median sale price was $235,000, up 10.8%. The average sale price was $303,121, up 28.9%, the median time to contract was 11 days and month’s supply of available properties was 0.7 months.
Make note of the cash sales, which keep going up every month. That number is having a significant influence on the market. First-time buyers are not only being outbid they are also being outmaneuvered by cash buyers and quick closings, frequently without an inspection contingency.
Every month, it’s hard to believe the numbers can improve as much as they do. But we are in real estate crazy land, something we all at one time wished for. Nevertheless, keep in mind that comparisons will be off for the next several months when you compare them to last year because of last year’s lockdowns. Stay safe.
