While the number of new listings slowed down somewhat in August, inventory levels continued to rise. We are still moving towards a more balanced market, where sellers are no longer holding all the cards. Rising interest rates have yet to really have a material impact on pricing, but it sure feels like the meteoric rise we saw over the last 18 months is a thing of the past. With our peak transaction season rapidly approaching, market direction remains uncertain.
As the Pandemic housing boom fizzled out across the country this summer, we saw inventory jump. In bubbly markets, like Austin and Boise, that inventory jump was greater than 300% between March and August. However, that inventory spike is already fizzling out.
After nearly two years with sellers having the upper hand, buyers finally have another chance to purchase the home they always wanted (even with higher mortgage rates). Indicators that highlight the bright side to this cooling market include:
Not all are created equal. Here are some that just might not pay off.
While the YoY sales drop mirrors the activity in Manatee, the YoY median sales price increase in Sarasota jumped quite a bit higher than Manatee (31% vs 21%). Cash sales dipped a bit in July from the over 50% in Sarasota in June. Also, new listings are not coming on as quickly in Sarasota as they are in Manatee. All of this leads me to believe that prices will be a little more stubborn in Sarasota than Manatee in the short-term. That said, it seems that every month now brings a material change in the market. As with every real estate transaction, both the buyer and seller have to take into account what is best for their unique situations when they examine any potential deal.