July Fourth is this week, so fire up the grill and hang up the flags, but go easy on the fireworks. You may not need real fireworks after reading the May sales statistics for Manatee County and the general housing imbalance around the country, but you need to hear about it.
According to Redfin, the U.S. housing market had nearly a half million more sellers than buyers in April. This is the biggest gap on record going back to 2013, comprised primarily of sellers who need to sell for lifestyle reasons or who may be investors who want to pull their money out before prices readjust downward.
Buyers finally have the upper hand in many markets that are turning into buyers’ markets. Concessions are being made and prices are being cut, but not enough to get buyers flooding back into the market. Nevertheless, home prices are still up more than 50% in the past five years and mortgage rates are not moving off an average of 6.5%. Add this to the general economic uncertainty and you’ve got buyers who are scared silly to make a decision. A friend forwarded to me some mortgage information from a SmartAsset study analyzing mortgage rates in Florida. Manatee County’s typical rate was 6.48%, Sarasota’ was 6.91% and Palm Beach 7% to name a few.
Much of the real estate markets are governed by local activity, however, one of the biggest buyers’ markets is the Southeast, where the inventory of homes for sale is above pre-pandemic levels. For Florida, the only positive news is that the Northeast and Midwest have more buyers than sellers, where historically so many of Florida’s buyers relocate from.
Like it or not, here are the May sales statistics published by the Realtor Association of Sarasota and Manatee.
Single family homes closed 1.9% fewer properties in May of this year compared to last year. The median sale price was $478,195, down 8.9%, and the average selling price was $638,855, down 9.9%. The median time to contract was 52 days compared to 45 last year and the new listings were down 6.6%. The available month’s supply of properties was 5.2 months compared to 4.1 months last year.
Condos closed 0.4% more properties this May compared to last year. The median sale price was $313,000, down 13.4%, and the average sale price was $345,549, down 16.2%. The median time to contract was 60 days compared to 56 days last year and new listings were up 12.9%. The month’s supply of available properties was 7.9 months compared to 6.3 months last year. A six-month supply of available properties is considered normal, therefore, 7.9 months is pretty far out of range.
I’m not sure what to say about this month’s report. Perhaps the Realtor Association of Sarasota and Manatee’s press release says it best: “Sarasota and Manatee County shows continued signs of a market in transition. Inventory remains significantly higher that this time last year, the pace of growth has begun to slow compared to previous months. Finally, buyers are gaining negotiating power, while sellers must adjust to a landscape that favors realistic pricing and patience.”
Enjoy the holiday however you choose to celebrate. Most of all be safe during this crazy holiday whether you’re in a car, at the beach or in a boat. Stay positive about the status of the world and our own little piece of it. Eventually, the real estate markets will level off to a more normal one and the world will hopefully settle down.
