All national and local publications and real estate websites cover the real estate market. And as I’ve said many times, all real estate is local, so a small town on Big Sur in California will be wildly expensive compared to a small town in Tennessee. It doesn’t mean one is nicer than the other, but it does mean that one area may be preferred over another.
Therefore, when you look at national statistics, keep this in mind. The Case-Shiller National Home Price Index measures home prices across the country. In the 12 months they analyzed, ending in July, home prices rose 1.7%, which was down from 1.9% from the previous year. This was the weakest price increase since July 2023. Based on this report, their conclusion is that the housing market has downshifted to a lower gear, and has essentially stagnated.
New York City, of course, leads the pack with an average 6.4% rise for the year in home prices. Chicago and Cleveland are next highest in increases. By contrast, several Sunbelt and West Coast markets that were recently red-hot are now faring far worse. Our neighbor, Tampa, fell 2.8% for the year, coming in at the bottom of the list of 20 metro areas surveyed. Phoenix, also a hot western city, last year recorded lower prices for homes compared with the same months a year earlier.
Nevertheless, there are signs that the American housing market picked up later in the summer. Sales of pending homes rebounded in August ahead of the Federal Reserve interest rate cut, according to the National Association of Realtors.
Talking about local listings and sales, let’s look at the September statistics published by the Realtor Association of Sarasota and Manatee:
Single-family homes closed 24.4% more properties than last year, and cash sales were up 40.4%. The median sale price was $470,000, exactly the same as last year, and the average sale price was $593,139, down 5.6% from last year. New pending properties were up 9.6%, and the median time to contract was 60 days compared to 47 days last year. Finally, the month’s supply of available properties was 4.2 months compared to 3.9 months last year.
Condos closed 31.7% more properties than last year, and cash sales were up 55.6%. The median sale price was $296,500, down 7.3%, and the average sale price was $306,864, down 12.7%. New pending properties were up 3.7%, and the median time to contract was 92 days compared to 73 days last year. Finally, the month’s supply of available properties was 6.3 months compared to 6.0 months last year.
The Realtor Association sees a steady momentum with buyers returning after a flat 2024. It does look like a slight change going on and as the Case-Schiller National Home Price Index indicated, there seemed to be the beginning of a rebound in August.
Closed sales are up for both single-family and condos in Manatee County, likely reflecting lower list prices. However, what interested me the most was the increase in cash transactions compared to last year, 40.4% for single-family transactions and 55.5% for condo transactions.
You should live where you and your family are comfortable and happy, and if you happen to accrue some equity, that can’t hurt either. Not everyone can live in Big Sur, but Florida also has some amazing views.
