Home sales in Bradenton area surged 27 percent in July. Prices spiked, too
Sales of existing single-family homes in the Bradenton area surged 27 percent in July, compared to the same month a year ago, and the median sales price surged, too, hitting $358,963. The median price was up 10.5 percent over 2019.
The COVID-19 pandemic, which forced many companies nationwide to have their employees work from home to curb the spread of the COVID-19 pandemic, may be contributing to the demand for Florida homes, said Greg Owens, broker and operating principal of Keller Williams on the Water.
“Workers no longer need to be that close to the home office. Would you rather work in Milwaukee or other large metropolitan area, or be close to the beach? We don’t have a state income tax, and even though our prices may seem high, if you compare them to prices in New York or Connecticut, they are a bargain,” Owens said.
The $358,963 median price is the highest since at least 2008, according to the Realtor Association of Sarasota and Manatee.
“Pending sales continue to exceed any possible expectations we ever could have had when this pandemic hit,” David Clapp, 2020 Realtor association president, said in a press release.
The real estate market braked sharply in March when the pandemic began hitting the area, and many sellers began taking their homes off the market out of concern that exposure to potential buyers could be dangerous to their health. But sales in recent months show a complete turnaround.
“Record-low interest rates combined with the release of pent-up demand from a less-than-normal spring market has amplified the Sarasota-Bradenton marketplace. We expect to see continued demand and a robust market in the months ahead,” Clapp said.
In Manatee County, single-family closed sales increased by 26.7 percent to 774 sales and condos increased by 16.5 percent to 276 sales. In Sarasota, single-family homes increased by 21.9 percent to 978 sales and condos increased by 30.5 percent to 398 sales.
Single-family prices in in Sarasota increased by 12.8 percent to $327,250.
Manatee condo prices increased by 15.2 percent to $220,000 and in Sarasota County rose by 7.1 percent to $240,000. The median is the midpoint of all sales prices; half the homes sold for more, half for less.
The market continues to favor the seller with a rise in demand and a decrease in inventory.
For the second consecutive month, pending sales increased in all markets in Manatee and Sarasota with a combined 36.2 percent jump from July of last year. For single-family homes, pending sales rose by 33.1 percent in Manatee and by 33 percent in Sarasota. The condo market showed a 47.9 percent increase in pending sales in Sarasota and a 38.9 percent increase in Manatee.
New listings also continued an upward trend with a combined 26.1 percent increase for the two counties. Condo new listings increased by 62.4 percent in Manatee County and by 34.6 percent in Sarasota.
For single-family homes, new listings increased by 19 percent in Manatee and by 18.9 percent in Sarasota. On the supply side, active inventory listings are lower than a year ago. Year-over-year, the combined inventory in both counties decreased by 24.2 percent. Condo inventory decreased by 11.5 percent in Sarasota and by 4 percent in Manatee. Single-family home inventory decreased by 34 percent in Sarasota and by 30.2 percent in Manatee.
“We are concerned by the decreasing months’ supply of inventory. July’s numbers dropped to approximately 2.3 months supply for single-family homes and 3.8 months for condos. Six months is considered a balanced market,” Clapp said.
“Weekly sales continue to outpace new listings coming onto the market. When supply goes down and demand goes up, sellers have the upper hand. Under these conditions, buyers hoping to close on a home should expect some competition and bidding wars, especially for each new property that comes into the market. If you have considered selling your home now is the time to sell with a Realtor who can ensure safe marketing and showings of your home in a COVID-19 environment,” Clapp said.
Owens agreed.
“There are a lot of multiple offers on properties. If we had more inventory, we would have even more sales, especially for homes below $300,000. This is the busiest we have been in an extremely long time,” Owens said.
As for the months’ supply of inventory, single-family homes stayed under a 3-month supply in July with a 36.8 percent decrease in Sarasota (2.4 months) and a 32.4 percent decrease in Manatee (2.3 months).
Condo supply decreased by 2.7 percent to 3.6 months in Manatee and by 18.4 percent to a 4-month supply in Sarasota.
The months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.
