One of the most eagerly-awaited trends in the region’s real estate market appears to finally be taking hold. For the past six months, the overall inventory of properties for sale throughout Sarasota and Manatee Counties has risen steadily; providing a good measure of relief from the acute shortage that has stymied buyers for nearly two years. A Rising Inventory During the final six months of 2013, the combined inventory of residential properties across all price ranges grew considerably compared with the same six months of 2012. Including re-sales and new construction, it rose by 37% in Sarasota County and by 30% in Manatee County. Moreover, the trend continued into the New Year with January 2014’s inventory up 16.5% over last January. This should come as a relief for both buyers and sellers. With each new month, recovering home prices are empowering more “underwater” sellers to list their properties—without the fear of having to bring additional funds to the table when the transaction closes. Buyers should also cheer the news. Rising home values notwithstanding, the median price currently being paid for properties throughout the region is more in line with what it was ten years ago before the housing bubble sent prices soaring to unsustainable levels. So in addition to a broader array of choices, today’s buyers are still in line for tremendous values. Ideal Balance of Supply and Demand As of January, there is a 6.2 month supply of homes in Sarasota County; and a 5.8 month supply in Manatee County, which strikes a regional average of 6 months. This is exactly the level at which markets are considered at—or approaching—the ideal balance between supply and demand. Such a balance not only provides buyers with an acceptable range of choices upon which to act; but also tends to squelch unsustainable spikes in price that often accompany significant shortfalls in inventory. In certain price ranges—particularly between $150,000 and $250,000—heavy demand over the past two years continues to put a strain on inventories. Conversely, the supply of properties over $1 million is currently well-stocked, which means that sellers in this price range must remain vigilant about pricing their homes competitively. An Excellent Time to Buy and Sell Still, the demand for properties in our region continues to track at near-record levels thanks to an improving economy, recovered investment portfolios; and the exquisite timing of Baby Boomers being able to sell their homes in other markets just as ours finds its balance again. Closed sales for the last six-months of 2013 were up 10% over the same six months of 2012, and might well have been higher had inventories been sufficient to offer each prospective buyer a more workable range of options. Over the past several years there have been extended periods of time when it made much more sense to buy than sell; and vice-versa. Now, with balance re-establishing itself in our market, it is an excellent time to do both. Recovering Our Balance
- By Michael Saunders
- Posted
One of the most eagerly-awaited trends in the region’s real estate market appears to finally be taking hold. For the past six months, the overall inventory of properties for sale throughout Sarasota and Manatee Counties has risen steadily; providing a good measure of relief from the acute shortage that has stymied buyers for nearly two years. A Rising Inventory During the final six months of 2013, the combined inventory of residential properties across all price ranges grew considerably compared with the same six months of 2012. Including re-sales and new construction, it rose by 37% in Sarasota County and by 30% in Manatee County. Moreover, the trend continued into the New Year with January 2014’s inventory up 16.5% over last January. This should come as a relief for both buyers and sellers. With each new month, recovering home prices are empowering more “underwater” sellers to list their properties—without the fear of having to bring additional funds to the table when the transaction closes. Buyers should also cheer the news. Rising home values notwithstanding, the median price currently being paid for properties throughout the region is more in line with what it was ten years ago before the housing bubble sent prices soaring to unsustainable levels. So in addition to a broader array of choices, today’s buyers are still in line for tremendous values. Ideal Balance of Supply and Demand As of January, there is a 6.2 month supply of homes in Sarasota County; and a 5.8 month supply in Manatee County, which strikes a regional average of 6 months. This is exactly the level at which markets are considered at—or approaching—the ideal balance between supply and demand. Such a balance not only provides buyers with an acceptable range of choices upon which to act; but also tends to squelch unsustainable spikes in price that often accompany significant shortfalls in inventory. In certain price ranges—particularly between $150,000 and $250,000—heavy demand over the past two years continues to put a strain on inventories. Conversely, the supply of properties over $1 million is currently well-stocked, which means that sellers in this price range must remain vigilant about pricing their homes competitively. An Excellent Time to Buy and Sell Still, the demand for properties in our region continues to track at near-record levels thanks to an improving economy, recovered investment portfolios; and the exquisite timing of Baby Boomers being able to sell their homes in other markets just as ours finds its balance again. Closed sales for the last six-months of 2013 were up 10% over the same six months of 2012, and might well have been higher had inventories been sufficient to offer each prospective buyer a more workable range of options. Over the past several years there have been extended periods of time when it made much more sense to buy than sell; and vice-versa. Now, with balance re-establishing itself in our market, it is an excellent time to do both. 
