Home prices across the Manatee-Sarasota region continue to climb with seemingly no end in sight, jumping more than 3 percent year-over-year in October.
No doubt, good news for homeowners.
But for the sixth consecutive month, home values in the two-county area trailed gains accumulated across Florida as well as the United States.
According to figures released Tuesday by real estate researcher CoreLogic, home prices in the Bradenton-Sarasota area jumped 3.5 percent year-over-year in October, a solid increase but below gains enjoyed across Florida (6.1 percent) and the country (7.0 percent).
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As prices continuing to surge in the region, state and nation, bolstering equity for homeowners, would-be buyers remain forced to compete for a low inventory of properties.
“Single-family residential sales and prices continued to heat up in October,” said Frank Nothaft, the chief economist at CoreLogic. “On a year-over-year basis, home prices grew in excess of 6 percent (nationally) for four consecutive months ending in October, the longest such streak since June 2014.
“This escalation in home prices reflects both the acute lack of supply and the stengthening economy.”
CoreLogic analysts project more of the same in the coming year across Florida, where prices are projected to increase by 6.4 percent during the next 12 months, outpacing the 4.2 percent forecast for the U.S.
“The acceleration in home prices is good news for both homeowners and the economy because it leads to higher home equity balances that support consumer spending and is a cushion against mortgage risk,” CoreLogic president and CEO Frank Martell said. “However, for entry-level renters and first-time homebuyers, it leads to tougher affordability challenges.”
Washington (12.5 percent), Nevada (10.1) and Utah (10.1) were the only states to see prices rise by double digits in October. Seventeen states, including Florida, experienced growth of 6 percent or better, while 42 had growth of 3 percent or better. No states saw prices fall, with West Virginia (0.4 percent) seeing the smallest growth.
Top U.S. metro areas
1. Las Vegas, 10.2 percent
2. Denver, 8.3 percent
3. San Francisco, 7.9 percent
4. Boston, 7.0 percent
4. Los Angeles, 7.0 percent
6. Miami, 5.0 percent
7. Washington, 4.6 percent
8. Chicago, 3.8 percent
9. New York, 3.6 percent
10. Houston, 3.1 percent