High demand, tight supply ramp up home prices in Manatee County. How high will they go?

The median price of a single-family home in Manatee County rose 3.2 percent in July to $309,500, compared to the same month a year ago, according to the Realtor Association of Sarasota and Manatee.

Single-family housing sales in Manatee County increased by 19.2 percent to 622.

Meanwhile, the already short supply of single-family homes in Manatee County took a hit as new listings fell by 15 percent during July.

Manatee’s inventory of single-family houses fell 5.3 percent to 2,045, while available condo inventory fell 0.2 percent to 849 properties.

In Sarasota County, single-family home inventory fell 4 percent to 2,605, while condo inventory fell 1.9 percent to 1,431.

Condominium sales were brisk during the month.

Manatee condo sales increased by 10.1 percent to 218, while the median price increased 20.8 percent to $199,250.

“In a traditionally slower month, sales growth indicates a robust market for July 2018,” Greg Owens, the 2018 president of the Realtor Association of Sarasota and Manatee, said in a press release.

“The condo market is strong as indicated by this month’s pending sales and new listings,” Owens said. “Pending sales are a good indication that condo sales will continue to uptick.”

Pending sales represent the number of properties that went under contract in July.

In both Manatee and Sarasota counties, pending sales increased in the condo market, but decreased for single-family homes.

Pending single-family home sales in Manatee County were down 1.2 percent, while in Sarasota County they were down 1.8 percent.

Pending condo sales were up 18 percent in Manatee, and up 6.6 percent in Sarasota.

In Sarasota County, condo sales increased by 11.4 percent to 341, and single-family home sales increased by 3.1 percent to 704.

The median sales price for single-family homes in Sarasota increased 8.3 percent to $280,750, while the median price for condos rose 8.3 percent to $232,000.

“Prices show a steady upward trend, a bellwether for the strength of our local economy,” Owens said.

Manatee and Sarasota remain seller’s markets with a less than six-month supply of available homes. A six-month supply is considered normal. In Manatee and Sarasota, there was a 3.9-month supply.

Across the state

Florida’s housing market reported more sales, rising median prices and more new listings in July compared to a year ago, though for-sale inventory remains constrained in many markets, according to the latest housing data released by Florida Realtors.

Sales of single-family homes statewide totaled 25,488 in July, up 3.8 percent compared to July 2017.

“In a positive sign for Florida’s housing market and potential buyers, we saw a modest increase in new listings in July,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale.

“New listings for existing single-family homes rose 3.1 percent compared to a year ago and new listings for condo-townhouse properties increased 2 percent from last July,” Hansen said. “Meanwhile, home sellers received more of their original asking price at the closing table. Sellers of existing single-family homes received 96.7 percent (median percentage) of their original listing price, while those selling condo-townhouse properties received 95.3 percent (median percentage).”

July was the 79th month in a row that the statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year. The statewide median sales price for single-family existing homes was $255,000, up 6.3 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations.

The statewide median price for condo-townhouse units in July was $180,000, up 5.3 percent over the year-ago figure.

Across the nation

Across the United States, existing home sales fell for the fourth straight month in July to their slowest pace in more than two years, according to the National Association of Realtors.

The West was the only major region with an increase in sales last month. Total existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 0.7 percent to a seasonally adjusted annual rate of 5.34 million in July from 5.38 million in June.

With last month’s decline, sales are now 1.5 percent below a year ago and have fallen on an annual basis for five straight months.

Lawrence Yun, NAR chief economist, says the continuous solid gains in home prices have steadily reduced demand.

“Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million,” he said. “Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market..”

The median existing home price for all housing types in July was $269,600, up 4.5 percent from July 2017 ($258,100).

July’s price increase marks the 77th straight month of year-over-year gains.

This story was originally published August 22, 2018 at 12:46 PM.