The best thing that has happened to the real estate vocabulary in recent years is called critical ignoring. Certainly, it’s not just applicable to real estate, but by golly it works.
Critical ignoring comes from the internet, doesn’t everything, and the artificial intelligence that drives it. Essentially, it means you should take everything you read with a grain of salt or totally ignore.
When it comes to real estate statistics reported on a national level, I prefer the ignore option. It’s not that the numbers aren’t correct; they are. It’s just that real estate is all local, and what applies in downtown Boston may have zero relevance on Anna Maria Island.
There was a report I read, right around Christmas, which was extremely broad in its reporting about condo owners facing the worst market since 2012. Across the board, rising homeowner association fees due to higher insurance premiums and maintenance costs are making condominium purchases less affordable. Single-family homes also have higher maintenance and insurance costs, don’t they? Large metro areas are suffering more with a glut of supply weighing on prices.
And good old Florida can never catch a break it seems. Insurance costs and hurricanes are totally spooking buyers, in addition to the Florida condo market taking a major hit since the Surfside collapse – ignoring the fact that Florida is a big state and Surfside is a tiny place. Actually, the laws put in place after Surfside have done a lot to improve condo living in Florida. In spite of all of this, condo owners have gained equity since they purchased. Go figure.
Sorry, but most of this can be critically ignored. Floridians love condo living and that’s not changing anytime soon. Prices may go up, prices may go down, insurance is always an ongoing conversation, and the cost of maintenance will always increase.
Now, to the crystal balls about this year’s housing market. The op-ed I read has predicted that mortgage rates will be somewhere between 5.75% and 6% this time next year. Declining rates and increased inventory should spark more home sales, especially if the overall economy perks up. Prices will flatten, but there will not be a significant decline in prices.
Real estate professionals will find themselves working for major companies, with the possibility of large brokerage or real estate holding companies attempting to acquire a prominent homebuilder.
And believe it or not, Netflix’s real estate programs, which I love, will help inspire some young people to consider real estate careers. Now that should not be critically ignored.
Time for the December sales statistics reported by the REALTOR Association of Sarasota and Manatee:
Single-family homes closed 5.6% fewer properties this December than last December. The median sale price was $491,500, down 0.1%, and the average sale price was $653,048, down 3.3%. Median time to contract was 55 days, compared to 56 days last year. The month’s supply of available properties was 4.3 months, compared to four months last year.
Condos closed 13% more properties this year compared to last year. The median sale price was $307,500, down 6%, and the average sale price was $352,068, down 2.7%. Median time to contract was 63 days, compared to 56 days; and the month’s supply of available properties was 6.5 months, compared to 6.9 months last year.
Let’s not critically ignore these numbers. The season is just starting and it’s not critical yet.
