Rising Prices and Record-Low Inventory for the Sarasota Area Market
Posted 03-29-2022 at 11:41 AM by Sunshine Rules
The Sarasota - Bradenton - Venice area real estate market started off 2022 with the lowest level of inventory of properties for sale to date.
Median home prices have continued to increase over the past 3 months as demand for properties outpaces new listings.
Distressed sales (foreclosures and short sales) represent just 1/2 of 1 percent of our current market.
Properties continue to sell quickly, with the median time on market from listing to contract averaging 7 days for both single family homes and condos. New listings are frequently attracting multiple offers, with sales prices above list.
Lenders are cautioning buyers to expect to see at least 2 or 3 more rate hikes in 2022, which could impact buyers obtaining mortgages. This may have less of an impact in the Sarasota area due to the large percentage of cash buyers.
Now that travel restrictions have mostly been lifted, foreign buyers are coming back to the area home buying market as well.
How long will the current sellers market last before things turn back in the buyers favor? Many of the housing experts are saying in general that while they do not expect prices to drop anytime soon, they do expect the increases in prices to start to flatten out and grow at a slower pace.
However, more local experts are saying the Florida real estate market current trends and the forecast for the next 12 to 24 months clearly show that most likely the housing market is expected to stay robust, with many of the factors that caused real estate to climb to new heights last year are remaining in place this year as well.
Buy or rent? Both homes for sale and rental rates have escalated over the past 2 years here, leaving residents with difficult choices. Timing is everything, as they say.
One indicator that I have followed for years on our local real estate market that has been good at predicting changes in the market is the Days On Market statistics for active MLS listings. If the Days on Market start to grow, sales price increases also tend to slow, which often triggers sellers sitting on the sidelines to put their properties up for sale before the market changes. Good news for buyers.
So when is the right time to buy a house?
When to buy comes down to each individual person's needs, wants, plans and goals.
Median home prices have continued to increase over the past 3 months as demand for properties outpaces new listings.
Distressed sales (foreclosures and short sales) represent just 1/2 of 1 percent of our current market.
Properties continue to sell quickly, with the median time on market from listing to contract averaging 7 days for both single family homes and condos. New listings are frequently attracting multiple offers, with sales prices above list.
Lenders are cautioning buyers to expect to see at least 2 or 3 more rate hikes in 2022, which could impact buyers obtaining mortgages. This may have less of an impact in the Sarasota area due to the large percentage of cash buyers.
Now that travel restrictions have mostly been lifted, foreign buyers are coming back to the area home buying market as well.
How long will the current sellers market last before things turn back in the buyers favor? Many of the housing experts are saying in general that while they do not expect prices to drop anytime soon, they do expect the increases in prices to start to flatten out and grow at a slower pace.
However, more local experts are saying the Florida real estate market current trends and the forecast for the next 12 to 24 months clearly show that most likely the housing market is expected to stay robust, with many of the factors that caused real estate to climb to new heights last year are remaining in place this year as well.
Buy or rent? Both homes for sale and rental rates have escalated over the past 2 years here, leaving residents with difficult choices. Timing is everything, as they say.
One indicator that I have followed for years on our local real estate market that has been good at predicting changes in the market is the Days On Market statistics for active MLS listings. If the Days on Market start to grow, sales price increases also tend to slow, which often triggers sellers sitting on the sidelines to put their properties up for sale before the market changes. Good news for buyers.
So when is the right time to buy a house?
When to buy comes down to each individual person's needs, wants, plans and goals.
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