Single-Family Home Sales Increase Amid Rising Inventory
In February 2019, inventory continues to increase across the two-county area, reaching a more balanced supply. Median sales prices increased in Sarasota but decreased in Manatee County. Compared to last year, closed sales increased for single-family homes but decreased in the condo market. Compared to last month, closed sales are up overall, indicating a start to the season.
Single-family home sales increased by 4.8 percent in Manatee County and increased by 4.2 percent in Sarasota. Manatee condo sales decreased by 14.9 percent and Sarasota condo sales decreased by 12.1 percent.
“Compared to last month, regular closed sales and cash sales increased, as well as the overall dollar volume,” said Amy Worth, second generation REALTOR® and 2019 President of the REALTOR® Association of Sarasota and Manatee. “It indicates our season is ramping up.”
Median sales prices increased in Sarasota County, but decreased in Manatee County. In Sarasota County, single-family home prices increased by 5.3 percent to $287,000 and condo prices increased by 10.5 percent to $242,000. Single-family home prices in Manatee decreased by 0.5 percent to $298,500, while condo prices decreased by 11.4 percent to $189,000.
Pending sales, or the number of properties that went under contract during the month, decreased in Sarasota County, but increased in Manatee County. In Manatee County, single-family homes increased by 3.3 percent, while condo pending sales increased by 10.5 percent. Sarasota single-family home pending sales decreased by 2.8 percent while condo pending sales in Sarasota decreased by 13 percent.
“Month-over-month, the combined pending sales continue to increase, a good indication of future closed sales,” said Worth. “Buyers are becoming more active in the market, taking advantage of low interest rates and more inventory to choose from.”
Across the two counties, inventory increased year-over-year in February. Single-family home inventory in Sarasota increased by 13.6 percent from last year, while Manatee County increased by 5.2 percent. Condo inventory increased by 16.2 percent in Sarasota and by 2.9 percent in Manatee.
When the months’ supply of inventory reaches 5.5 months, the market becomes more balanced. In Sarasota County, single-family homes are at a 5.4-month supply, while the condo market has shifted to favor the buyer with a 6.5-month supply. As for Manatee County, the market continues to favor the seller with a 4.5-month supply for single-family homes and a 5-month supply for condos.
The two-county area experienced a decrease in new listings in February 2019. New listings for single-family homes decreased by 6.5 percent in Sarasota and decreased by 1.2 percent in Manatee. Sarasota condo new listings decreased by 6.8 percent and Manatee condo new listings decreased by 3.8 percent.
The median time to contract, or number of days on market, increased for the condo market in February 2019. Sarasota condos increased by 11.9 percent to a median 75 days on market and Manatee condos increased by 54.5 percent to 68 days. Single-family homes in Manatee spent fewer days on the market with a 21 percent decrease to 49 days, Sarasota experienced a 30.4 percent increase to 60 days on the market.