|May 9, 2023|
Buyers who are sitting on the sidelines, thinking they will be able to pick up a house at bargain prices in 2023, will be disappointed. Although inventory has increased over 100% from a year ago, it remains 35% below pre-pandemic levels. Median sold prices have come down 12% from last year at this time, but they remain 40% above pre-pandemic levels.
Mortgage rates have taken some of the steam out of the market, and as I have argued on these pages for 2-years that would be and is a good thing. Notwithstanding higher rates, competition for the relatively few homes on the market remains fierce. Since November, homes that are going under contract are doing so within a consistent 1 ½ months and closing at 96% of list price.
Analyzing closed sales data is a look in the rear-view mirror. Evaluating new and existing listing data provides forward looking guidance, an additional tool in your toolbox to determine the appropriate list price for your home. At the end of last week, May 5th, the median list price for single family homes in Sarasota County was $599,999. The median price of new listings was $529,900. That is a 12% spread to the negative. This one factor does not mean prices are going down 12%. It does mean, coupled with the closed data, a clamp on prices. List to the market, not to your expectations. A wise man once said, “expectations are future resentments.”