Median Home Prices Rising Due to Low Inventory and High Demand


The latest data compiled from My Florida Regional Multiple Listing Service continues to fluctuate in July 2017 for Sarasota and Manatee counties.  In Sarasota county, closed sales increased 5.8 percent over July 2016; however, Manatee county saw an 8.9 percent decrease in closed sales over the previous year.

In response to the low inventory of active properties for sale combined with the a decreasing number of foreclosed and short sales, median home prices continue to rise.  Compared to July 2016, both Sarasota and Manatee counties saw just over a 7 percent increase in the median price for a single family home.  Condo median prices tell a slightly different story with a 4.5 percent increase for Sarasota County but in stark contrast, a 10.9 percent decrease in Manatee county.

So does the increase in the median price for single family homes mean we are headed for a repeat of 2006?  Not necessarily.  Overall median prices in July still remain lower than during the recently ended season. Xena Vallone, the 2017 President of the Realtor Association of Sarasota and Manatee states that while median prices are rising, the increase is driven by supply and demand and not artificial factors that were experienced a decade ago. “The increase began in 2011 and has continued at a gradual, sustainable rate,” Vallone adds.

While inventory is reported as being low, it is important to mention that inventory levels still show an increase year-over-year but that the lowering trend has been occurring since February. Last year at July month-end, there were 6,687 properties for sale in the two-county area. By the end of February 2017, the level had increased to 8,557 and by the end of July 2017, there were 7,182 properties on the market. 

The month’s supply of inventory peaked in March with levels inching toward a balanced market. However, like inventory, this figure has been steadily decreasing since then. In Manatee County, there was a 4.2 month supply of single family homes for sale, while Sarasota dropped to a 4.1 month supply. Sarasota condos are at a 4.6 month supply and Manatee condos are at a 4.1 month supply. The market remains a seller’s market.

Click here to read the full report from the Realtor Association of Sarasota and Manatee.

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Deborah Beacham About Deborah Beacham

By Deborah Beacham - A Sarasota Realtor ranking in the top 1/2% in total sales volume among Sarasota County's Realtors. Google+