Record median home prices shattered in Sarasota, Manatee counties as trend continues
Prices for residential property continue to shatter records as both Manatee and Sarasota counties reached new highs in December.
The Realtor Association of Sarasota and Manatee reported on Thursday that the median sales price for a single-family home in Sarasota County came in at $435,788 and $460,000 for a house in Manatee.
Both figures broke records set in November. In November, the single-family median price in Manatee County was $450,411 and $419,225 in Sarasota
Condo prices were $360,000 in Sarasota and $302,965 in Manatee in December.
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The median days to contract for both counties hovered around one week as demand for single-family properties continues surging.
“The demand for housing in our region is strong," said 2022 RASM President Tony Veldkamp, senior advisor at SVN Commercial Advisory Group. "As expected, the momentum from 2020’s market carried right into 2021, bringing another banner year of sales and prices. On the other hand, buyers are facing a lot of competition. Throughout most of 2021, the monthly supply of homes was less than one month."
Options for potential buyers
The number of single-family houses on the market continues to decrease compared to 12 months ago, a trend that's stretched for more than a year.
A potential buyer looking for property in Sarasota County could find only 568 single-family homes and 261 condo/townhomes for sale.
Manatee County has even fewer options for potential buyers with 456 single-family homes and 155 condo/townhome properties for sale.
As fewer active listings come to market, closed sales decreased compared to December 2020.
"In the last month of 2021, the combined closed sales of all property types in both counties decreased by 14.3% to a total of 2,319 sales," the monthly RASM report reads. "... At the end of the year, the inventory of all active listings was 1,024 for single-family homes in the NorthPort-Sarasota-Bradenton MSA, a 53.1% decrease from last year. The year-end inventory for condos was at 416, a 73% decrease from the same time last year."
In its monthly housing market report, the Realtor association also included year-end statistics for 2021.
In 2021, closed sales increased by 14.9%, with 28,764 sales in the North Port-Sarasota-Bradenton metro area.
Median sale price
The yearly median sales price for single-family homes in 2021 was $395,945 in Sarasota and $420,000 in Manatee. For condos, the median price for 2021 was $315,000 in Sarasota and $260,000 in Manatee.
“This last year brought in $15.7 billion in sales volume, which has a tremendous impact on our economy, supporting attorneys, insurance agents, contractors, surveyors, inspectors, and many other professions," Veldkamp said in a news release.
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Cash sales dominated single-family transactions in 2021 with 57.3% of all sales. Condos had 40.2% of its sales close without a mortgage.
“We anticipate the price growth and velocity of sales to start leveling off, helping to increase inventory," Veldkamp said. "Now is a great time to consider selling your home if you’ve been thinking about it."
A slowing down of home appreciation would be a good thing for the local economy, according to one local real estate agent.
Robert Goldman, a Realtor with Michael Saunders & Co., has been closely watching the yield on the 10-year Treasury note for months, hoping that it breaks 1.75%, as he believes the drastic housing appreciation increase seen in 2021 was unhealthy.
Increasing mortgage rates
Typically, Goldman said, the yield on the 10-year Treasury note correlates to mortgage rates. Increasing mortgage rates can cool off a hot market as fewer people qualify for loans as rates increase.
"If we're not in a bubble, and I don't believe we are, then housing becomes out of sight for too large of a section of the population," he said.
He said that yield has hovered near the 1.4% to 1.5% area in 2021, with mortgage rates hovering near 2.9%.
Housing prices since May 2020 appreciated by 39% in Sarasota County, Goldman said.
The Federal Reserve has also noted it plans to tackle inflation rates in 2022, which would also impact interest rates charged by banks.
Just this past week, the yield on the 10-year Treasury note rose above 1.75% for the first time since January 2020.
Goldman said he hopes this pushes mortgage rates higher, slowing housing appreciation.
This article originally appeared on Sarasota Herald-Tribune: Median home prices reach new record high in Sarasota, Manatee counties
