Home Prices Level Off in Sarasota County 

April 30, 2019

Home prices have leveled off, as Sellers lower their expectations.  The uncertainty in the market over the past 6 months has largely been due to a weak European economy, the trade tariff dispute with China, and a volatile equity market.  They are showing varying signs of easing.   The Mortgage Bankers Association (“MBA”) reported a 5% increase in purchase applications, with elevated loan amounts from moderately rising home prices.  The Mortgage Credit Availability Index of the MBA, which  began to fall in December, rose 2.1 percent to 186.0 in April, its highest recorded level since 2011.  Credit is loosening.  Fixed mortgage rates are hovering in the 4.2% range, 40 basis points less than it was a year ago.  Unemployment is at 3.6 percent, its lowest level in 50 years.  Wages are increasing, although affordability remains an issue, as the Federal Reserve reports that median sold prices are approximately four times median household income.  In Sarasota County median sold prices were approximately five times median household income (median sold price $290,000 – median household income $58,400).

These are the national influences affecting our local housing market, which has been in a state of flux over the past few months.  What had been, since 2012, a growing Seller’s Market in Sarasota County, has been shifting, if not to a Buyer’s Market, then a Buyer’s Bias.  Current stats do not tell the whole story, because what current stats do not reveal is current Buyer sentiment, which I am experiencing daily in my business.  Buyers are cautious, deliberate and informed.  In April, inventory was low in Sarasota County, with strong closed and pending sales of single-family homes at a  3.8-month supply.  Notwithstanding strong sales, as compared to the same month last year, in April, the median sold price rose only 1.4%, while the average sold price went down 0.5%, and average days on the market increased to just under 3 months.

Stats for April 2019 | Single Family Homes:

• For Sale – 3,131 units; Down 8.7% compared to prior month (March 2019), and up 8.1% compared to last year (April 2018).
• New Listings – 882 units; Down 17.3% compared to prior month, and down 3% compared to last year.
• Sold Listings – 824 units; Up 9.1% compared to prior month, and up 1.6% compared to last year.
• Pending Sales – 947 units; Up 4.3% compared to prior month, and up 20.9% compared to last year.
• Months of Inventory Based on Closed Sales – 3.8 months; Down 15.4% compared to prior month, and up 5.6% compared to last year.
• Average Sold Price per Square Foot – $211/sq. ft.; Up 5% compared to prior month, and down 0.5% compared to last year.
• Median Sold Price – $290,000; Up 1.8% as compared to prior month, and up 1.4% compared to last year.
• Average Sold Price – $414,000; Up 5.6% compared to prior month, and down 1.9% compared to last year.
• Average Days on Market – 82 days; Up 6.5% compared to prior month, and up 26.2% compared to last year.
• Sold/Original List Price Ratio – 90%; Down 2.2% compared to prior month, and down 3.2% compared to last year.