Record Sales for Sarasota & Manatee Continue… Are We in a Bubble?

FSBO

July 2015 property sales in both counties totaled 1,974 closings, up 23.5% over July 2014. Sarasota County sales were 1,174 which was a very slight dip from June. Manatee saw total sales of 768, well above the July 2014 total of 672.

Median sale prices continue pushing up year-over-year. Sarasota County’s single family median sale prices were at $219,500, up 9.2% over last July. Manatee County was at $250,000, up 8.7% over last July.
According to Stafford Starcher, Association President, “The health of the current market is sustainable, judging by the recovery of the overall national economy. The Sarasota-Manatee region is certainly reaping the benefits.”

Both counties continue to see an inventory well below the 6 month level that defines a market in equilibrium between buyers and seller. Sarasota has 3.3 months of inventory and Manatee has 3.9 months. A drop in median days on market year-over-year shows that hoes are moving quickly.
With the housing market continuing on a steady climb in sales and price, many people are concerned about another crash.
According to Lawrence Yun, chief economist and senior vice president of Research at the National Association of REALTORS® there is no bubble. And here is why:
• credit today is extremely tight, which has led to an unusually high level of all-cash sales
• for the past eight years, total mortgage balances have fallen
In 2004 credit was easy to obtain and home sales were running at more than 8.5 million a year (existing and new homes combined). New-home construction volume topped 2 million annually. Today home sales are barely over 5 million and new-home construction is barely scratching 1 million units. Also home owners are paying their mortgages on time and few are seeking cash-out refinances.
Mr. Yun says “For now, though, no bubble or impending crash is in sight.”
So rest easy folks. And if you are thinking of selling or someone you know needs some advice about selling their home give me a call. I’m on the job and remember “My Work Style = Your Life Style.”

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