Tight inventory, rising home prices make Manatee a sellers’ market

Strong demand and tight inventory combined to produce a sellers’ market in Manatee County and send the median sales price for single-family homes sold in in February to $300,000. That’s up 5.8 percent from a year ago.

It marks the third time the median price has hit the $300,000 mark since the Great Recession of 2008, according to figures released Wednesday by the Realtor Association of Sarasota and Manatee.

The median price of the 441 Manatee County home sales closed in February represents the mid-range of homes sold, and was up 8.6 percent over February 2017. The median also hit $300,000 or more in December and January.

Condo sales were also up year-over-year in February with 202 sold, an increase of 5.2 percent. The median condominium price in Manatee County soared 22.2 percent to $213,250. It is the first time since 2008 that condo prices have surpassed $200,000.

The supply of single-family homes fell 1.6 percent while the supply of condos decreased 2.9 percent during February, making inventory tight.

“So far, our traditional ‘snowbird’ season has been more robust than last year,” said Greg Owens, president of the Realtor Association of Sarasota and Manatee. “The opportunity for growth is reflected in the continuing demand for homes in our community.

“We are seeing a steady increase in sales and prices, which is a good indication of how strong our our market is,” he added. “The competitive situation makes it even more important for buyers and sellers to turn to their local, professional Realtor.”

There is an estimated 4.4-month supply of single-family homes on the market in Manatee County, and a 5.3-month supply of condos.

Sarasota County also saw a strong housing market in February with 569 single-family home sales closed, up 9.8 percent, and 315 condo sales, up 14.1 percent.

Sarasota single-family home prices increased 10.4 percent to a median of $272,500, while condo prices were down 0.1 percent to $219,000.

Inventory also fell in Sarasota during February. The supply of single-family homes was down 5 percent, while the supply of condos fell 0.1 percent.

Sarasota has a 4.1-month supply of single-family homes, and a 5.7 month supply of condos.

Across the state

More closed sales, more new listings and higher median prices in February were the norm around Florida with the for-sale inventory remaining tight.

“Florida’s economy continues to grow, with more jobs being created – the state’s unemployment rate was 3.9 percent in January,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale.

“A strong economy is good for Florida’s housing market. Statewide sales increased in both the existing single-family homes and the townhouse-condo sectors in February, yet many local markets are still facing a tight supply of available homes at a time when buyer demand is rising. Those factors are putting pressure on home prices and affordability,” Hansen said.

Even though much of Florida has become a sellers’ market, there was also some good news for buyers. In February, new listings for single-family homes rose 6 percent year-over-year, while new townhouse-condo listings increased 6.9 percent.

Across the nation

Nationally, existing-home sales bounced back in February after two straight months of declines, despite consistently low inventory levels and faster price growth, according to the National Association of Realtors.

Sales increases in the South and West offset declines in the Northeast and Midwest.

“A big jump in existing sales in the South and West last month, helped the housing market recover from a two-month sales slump,” said Lawrence Yun, chief economist for the National Association of Realtors.

“The very healthy U.S. economy and labor market are creating a sizable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices – especially in the West – shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar,” Yun said.

The national median existing-home price for all housing types in February was $241,700, up 5.9 percent from February 2017 ($228,200). February’s price increase marks the 72^nd straight month of year-over-year gains.

Properties typically stayed on the market for 37 days in February, which is down from 41 days in January and 45 days a year ago. Forty-six percent of homes sold in February were on the market for less than a month.

This story was originally published March 21, 2018 at 12:16 PM with the headline "Tight inventory, rising home prices make Manatee a sellers’ market."