The news hasn’t been that great recently, but the one bright spot is the country’s housing market. Likewise, Manatee County’s housing market is shining almost as bright as the afternoon westerly sun, so let’s enjoy it while we have it.
According to Lawrence Yun, chief economist for the National Associations of Realtors (NAR), “the housing market is hot, red hot.” The NRA reported sales of previously-owned homes rose 20.7% in June over the prior month, the biggest monthly increase on record going back to 1968 – another first during these harrowing times.
In addition to soaring existing home sales, there are rising new home sales and an increasing amount of homebuilder activity. Much of this is being generated by the record low mortgage rates and a flood of mortgage applications. Young families are finally breaking out, looking for more space, taking another look at the advantages of living in the suburbs, and the wealthy are looking for second homes away from the chaos of the cities.
Also, according to the National Association of Realtors, the regions with the most activity were the west and the south, with the northeast having the least amount of activity. The most popular price point with the most increased sales nationally was between $250,000 to $500,000. Although Anna Maria Island’s price points are generally higher, Manatee County’s fits right in there also with strong sales numbers for June, as follows:
Closed sales of single-family homes in June increased 7.2% from June of last year, but the really interesting number is that Manatee County closed 668 single-family homes in June 2020 compared to May 2020 at 445 closings. The median sale price was $325,000 this June compared to $315,000 last June, 3.2% more. The average sale price for June was $419,373 compared to June last year of $397,987, a 5.4% increase.
Condo closings are also up 2.5% from June of last year. The June 2020 closings number is 250 compared to May 2020 of 150, again a tremendous increase. The median sale price was up 7.7% to $214,230 from June of last year and the average sale price was up 1% from June of last year to $238,556.
It appears that Manatee County is substantially gaining ground over both last year and last month, certainly the right direction if we can keep it up. However, the problem that plagues us is the availability of properties, which is down for both single-family and condos. Single-family month’s supply of inventory for June 2020 was only 2.6 months, down 27.8% from June 2019, which was already at a low point. Condos are down to a 3.8 months availability rate, down 7.3% from last year. A six-month’s supply of available homes has always been the optimum number to strive for.
Home sales numbers are a lagging statistic since properties generally go into contract a month or two before closing. Therefore, June’s numbers are probably a reflection of sales in April and May while most states were still locked down. That said, increasing home sales could have an enormous effect on the economy as a whole since the housing market typically accounts for between 15% and 18% of the U.S. economy. Construction of new homes, furnishings and renovations could play a big role in adding jobs and money to the economy.
Will this jump in home sales last? We can only hope the sun continues to shine on our little corner of the world, but for now, just be happy. Stay safe.
