Residential Real Estate Market Trend Report for Southwest Florida – August 2013

REGIONAL SNAPSHOT FOR AUGUST 2013

With the noteworthy exception of properties under $150,000 August sales of single-family homes throughout the Sarasota, Manatee and Charlotte Counties region were up significantly over last August. Year-over-year sales of condominiums in most price ranges were up significantly as well, according to the latest sales report for August issued by Trendgraphix.

“I was not at all surprised to see (August) sales of single-family homes under $150,000 throughout the region decline by a quarter over last year,” says Michael Saunders, founder & CEO of Michael Saunders & Company. “This price range is not only the most popular and affordable for young families and first time home buyers but also with investors large and small. Investors helped jump-start our market by buying properties in this price range at a brisk pace—mainly to help satisfy our market’s intensifying demand for rental properties. Thus, the drop in sales in this price range has less to do with any softening in consumer demand than with the steep reduction in inventory over the past two years that is limiting selections and delaying purchases. The dearth of inventory has also helped jump-start the region’s market for new homes and condominiums; as buyers have few other options until more existing homes come on the market—which I predict will occur with greater frequency as property values rise.”

As of August the supply of properties in the price ranges under $500k is down substantially from the 6-month supply considered healthy in a balanced market. Conversely price ranges above $500k have anywhere from a normal to an overstocked supply, especially for properties over $1 million. Investors in these price ranges are exerting minimal impact on inventories, thus it is taking longer for normal end-user demand to exhaust the levels of supply that have built up over the past few years.

To continue reading the Market Trend report for August, please click on the image below:

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