Nationally the NAR reports that February existing home sales increased by 14.5% over January 2023, marking the first monthly increase in over a year. This is still 22.6% less than February 2022 however. Some markets in the US have been experiencing significant price reductions, notably San Francisco, LA, Phoenix, Las Vegas, Austin TX, and some mountain state areas. Lets dig in to the stats for the Sarasota County single family statistics for February 2023.
Sales Price Trend in February 2023
Total closed existing home sales in February 2023 were 520, an increase of 26.5% over the 411 sales in January, although down 25% compared to February 2022. The median sale price of existing Sarasota County single family homes rose to $495,000 from January’s $459,999 and a 10% year over year increase. This stands in contrast to many of the cities mentioned above where prices and demand are falling, and in some cities like Seattle, San Jose, and Austin TX as layoffs in the tech industries are having an effect. There is also weakness in the pandemic created “Zoom Towns” like Boise ID and Nashville TN as many remote workers are being called back into the office.
Inventory Continues to Grow
As we saw in January the inventory of homes for sale has increased dramatically over 2022, although it is 264% more homes for sale that a year ago. Lack of inventory has been a big problem for the last several years and that has been driving up prices. In February the active inventory of Sarasota County homes for sale has increased to 1793 which is up slightly from January but is still just a 2.9 month supply based on current sales. A healthy market generally has a 4 to 6 month supply of listings.
Pending Sales Unchanged
The number of pending sales stands at 751, which is about the same as February 2022. Traditionally January February March and April are the busiest sales months in the Sarasota area as many winter visitors decide they have had enough of cold weather and high taxes in the north, and make the decision to call our area home. I expect that the number of closed sales will increase in March April and May.
What Will The Trend Be Going Forward?
The real estate market has faced some real challenges over the last year, most notably the dramatic increase in interest rates. Mortgage rates at 3% caused much of the home price acceleration but now mortgage rates of 6% to 7% are having a distinct effect on sales by pricing many buyers out of the market. The stock market correction has also taken it’s toll as many potential buyers have had their savings eroded, and the recent bank failures are creating another set of concerns. There are a lot of differing opinions about where the market is headed and sometimes economists tend to look at national trends rather than local markets. Every market is unique and my expectation is that the Sarasota area will remain relatively strong compared to many other regional markets.
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