|April 24, 2023|
Last week the average 30-year fixed rate mortgage rose to 6.39%. Higher mortgage rates have slowed home price growth. However, persistent buyer demand continues to fuel higher prices.
In Sarasota County, median prices for existing single family homes rose 6.7% in the first quarter compared to the same quarter last year. Our housing market continues to be amongst the strongest of mid-size metro areas in the US.
Drawn by our year-round warm weather, favorable business climate, and no state income tax, since 2021, more than 20,000 new residents have moved here. According to the Florida Bureau of Economic and Business Research, the current resident population of Sarasota County is 452,373. At the end of the year, the job-matching website, HireAHelper.com, reported the rate of job creation by new companies in the North Port-Sarasota-Bradenton region, at over 44,000 new jobs, ranked first amongst all mid-size metro areas. There were approximately 2,500 new business formations in 2022, 11.2% of all companies in the region.
There are pockets of caution. Sales volume is falling. Sales are down 10.2% year to date, 26.2% for the first 3-months of this year compared to last year. The 6.7% first quarter price growth was far below the 25% annual growth rate of the past 2-years.
The availability of insurance, and escalating premiums have become a tempest (no pun intended) for buyers, particularly when it comes to the age of the home and roof. Millennium Inspections, under a new state law, are affecting reserve requirements for condominiums, which will exact huge special assessments on many condos. For some owners it will be unaffordable and unable to be financed by a mortgage.
Notwithstanding the headwinds, due to the lack of inventory, currently a 2-month supply, and strong job growth, Sarasota County home prices will outperform the nation. If you’re selling, under current conditions, you will reap a profit. If you’re buying, you’re entering a market poised for continued growth.