Manatee County Real Estate Market Recovers in June
Sarasota County reports sales weakness but inventory turns extremely tight in both counties
Sales of Single Family Homes in Manatee County last month rebounded with an increase of 7.2% over June of last year. 668 units were sold during the month in contrast to 768 units in Sarasota County, reflecting a decrease of 6.5% over the same period last year. But the Median Sale Price of Single Family Homes in Sarasota County rose to $305,000 an increase of 5.2%. Home prices increased in Manatee County as well during the period with the Median Sale Price of Single Family Homes rising to $325,000, a modest increase of 3.2% over last year.
Price discounting was also higher in Sarasota County in June with the Median Percentage of Original Price Received reported at 95.7% of list, an increase of 1.1% over June of 2019. Discounting was far less prevalent in Manatee County however, as the prices paid were 96.6% of list, a slim increase of .6% over June of last year. But Sales Velocity exhibited a rather peculiar dynamic. The Median Time to Contract in Manatee County had a dramatic increase over 2019 to 56 days. And one would think with a sales decrease, Sarasota County would have a similar increase. But in this case, this key statistic fell to 58 days in June, a decrease of 9.4% over June of 2019.
Inventory tightened dramatically in Sarasota County in June. This was due to a 1.8% decrease in New Listings which saw the Inventory of Active Listings plummet to only 1,859 listings, a decrease of 33.7% over the same period last year. New Listings actually increased by 11% in Manatee County, but the total of Active Listings still dropped by a significant 28.6%. When translating these results into Months Supply of Inventory a pretty grim picture emerges. As you recall, the market is considered to be at equilibrium with a 5 Months Supply of Inventory. But Manatee County Inventory can sustain only 2.6 months of sales (a decrease of 27.8% over 2019) while Sarasota County had a 2.7 Months Supply of Inventory, a dramatic decrease of 35.7% over the same period last year. This indicates that the markets for Single Family Homes in these two counties are approaching a "Sold Out" condition.
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Similar Results seen in the Condo/Townhouse Market
Sales of Condo and Townhouse properties during June mirrored the results seen for Single Family Homes. Sales of these properties increased in Manatee County to 250 units, a meager increase of 2.5% over last year. However, sales of these property types fell in Sarasota County during the period to 334 units, a decrease of 2.9%. But the good news for Condo/Townhouse owners is that the Median Sale Price increased in both counties during June. The Median Sale Price of a Condo/Townhouse is Manatee County was $214,230 an increase of 7.7%. Sarasota County recorded $249,990 in this statistic representing an increase of 6.8% over 2019.
The Velocity of Sales of these property types exhibited similar results to those of Single Family Homes. The Median Time to Contract in Sarasota County fell to 74 days, a decrease of 6.3% over June of last year. But the Velocity became rather sluggish in Manatee increasing by 15.5% to 67 days. Discounting was negligible in both counties decreasing by .3% and .1% in Manatee and Sarasota County respectively.
It is on the supply side that the results for Condo/Townhouse properties diverted from the dynamics at play with Single Family Homes. New Listings exploded in Sarasota County to 454 listings an increase of 51.8% over June 2019. The increase in New listings in Manatee County were not as dramatic but remained a healthy 19.3% over the same period last year to a total of 260 listings. Yet despite these increases in New Listings, the Inventory of Active Listings still fell with decreases of 9.4% and 14.2% recorded in Manatee and Sarasota Counties respectively. And while not as dire as the results for Single Family Homes, the Months Supply of Inventory did fall to 3.8 months supply in Manatee County and 4.3 months supply in Sarasota County.
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We are moving into markets characterized by inventory constraints
The market for Single Family Homes is problematic due to the widespread lack of inventory. Prices are showing only moderate increases but that may change if the current trend of declining inventory persists. This does not mean that all properties will sell. Buyers are still being driven by value. And armed with historically low interest rates, Buyers will select the most attractive properties even if they need to pay more. So Buyers should be prepared to compete in multiple offer situations at least in the short term. And sellers should do what they must in order to project the best value for their listing. Both Buyers and Sellers are well advised to track market dynamics down to the neighborhood level and be prepared to move quickly in response to market demands.
So if you are in the market and are looking for assistance, give us a ring today at (941) 840-2265. We would be glad to help.