This month’s Market Analysis for Home Sales covers Venice and Nokomis for the third quarter of this year.
Home sales remain resilient. For the current quarter, July – September 2018, prices increased 3.4% from the same quarter last year to $306,000 from $296,000. Solid, measured appreciation, sustainable growth.
Pending contracts increased 7.6% over the same quarter last year. Closings increased 3.2%. New listings came on board at an even stronger clip, 25.2% more than last year, and 22% more homes for sale. The result is that the net supply of homes rose 10.9% to 4.1 months for the current quarter compared to the third quarter last year, trending towards a balanced market. In fact, isolating the month of September 2018, the supply of homes rose to 5 months. 6 months is considered a balanced market.
If interest rates continue to rise, it will push more buyers out of the housing market. The supply of homes will increase. Days on the market will increase. If it does, Sellers will adjust their expectations, and prices will adjust accordingly. Currently, homes are going under contract in 78 days and are selling at 94% of “Original List Price”, 97% of “Final List Price”. If the time it takes to sell a home and the spread between “Sold Price” and “Original List Price” continues to grow, either the housing market will stall, or prices will come down. If the inverse occurs, prices will continue its current trajectory. Prices always adjust to market conditions.
Homes for Sale in Current Quarter is 1,058 units. Up 22% (from 867) compared to the same quarter last year.
Homes Listed in Current Quarter is 979 units. Up 25.2% (from 782) compared to the same quarter last year.
Home Sales Pending in Current Quarter is 737 units. Up 7.6% (from 685) compared to the same quarter last year.
Homes Closed in Current Quarter is 771 units. Up 3.2% (from 747) compared to the same quarter last year.
Average Days on the Market is 78. Up 11.4% (from 70 days) compared to the same quarter last year.
Sold/Original List Price % is 94%. Up 1.1% (from 93%) compared to the same quarter last year.
Average Sold Price is $306,000. Up 3.4% (from $296,000) compared to the same quarter last year.