Home prices in Bradenton saw record rise in July. Lofty prices appear here to stay
The median price for existing single-family homes in the Bradenton area set yet another record in July at $430,000, up from $358,963 the same month last year.
The median price for townhouses and condos in Manatee County increased to $250,050, up from $220,000 a year ago, according to the Realtor Association of Sarasota and Manatee.
The median price is the exact midpoint between the highest price and the lowest price that buyers paid during the month.
“The real estate market is as hot as it’s ever been. The demand for homes is so high that we’re selling homes as quickly as they come available—almost every home you see for sale this week won’t be available next week,” Alex Krumm, president of the Realtor association and broker-owner of NextHome Excellence, said in a press release Monday.
“Interest rates are still playing a big role in the home-buying ‘frenzy’ here, as well as the desire to live and invest in Sarasota and Manatee counties,” Krumm said.
In neighboring Sarasota County, the median price for existing single-family homes was $400,000, up from $327,250 last year.
The median price of townhouses and condos in Sarasota was $315,000, compared to $240,000 in the same month last year.
The number of closings during the month declined in both counties for single-family homes as well as condos, as did pending new sales.
The Bradenton and Sarasota markets have strongly favored sellers for several years. Available inventory of all kinds of housing in both counties is less than a one-month supply. A six-month supply is considered a balanced market, favoring neither buyer nor seller.
The escalating price of houses and the scant inventory make a formidable barrier for potential first-time home buyers looking to enter the market.
The price of new homes has also soared due to the shortage of construction materials and the influx of residents from other states, many of them looking to pay with cash. There were 272 all-cash sales in July, compared to 186 in the same month a year ago.
In part to address the lack of affordable workforce housing, the Manatee County Commission last week voted to add Accessory Dwelling Units as another form of available housing.
Accessory Dwelling Units, also known as ADUs, are small units that can be built on the same property with an existing house.
“The incredible price increases we’ve seen are forecast to subside, but not recede, over the next year. Those who want to purchase in the next few years are wise to purchase now; there is no imminent correction coming,” Krumm said.
“It is entirely likely that we’re seeing a permanent correction upward as Florida home prices, which are historically in the middle-of-the-road nationally, trend toward the values of the states from which our buyers are migrating,” he said.
This story was originally published August 23, 2021 at 1:29 PM.
