2015 Was A Record Breaker
What Does 2016 Hold?
By Patricia Tan
Spring is definitely upon us, and those of us in the real estate industry will be taking a welcome respite from a very busy selling season which came hard on the heels of a record breaking year for real estate transactions in Sarasota and Manatee Counties.
2015 was certainly one for the record books. 20,691 homes were sold in our desirable spot on the Gulf Coast – 1,302 or more than in 2014, and an increase of more than 6%. As you would expect, our median sales prices also climbed. For single family homes, they were up 22% in Sarasota County to $239,900 and 12% in Manatee County to $262,963. Condo median prices also performed very well, up by 22% in Sarasota to $217,000 and by 6% in Manatee County, to $178,249.
Signs of a healthy real estate market were also bolstered in 2015 by a continuing decline in the number of distressed property sales. For single family homes, these declined by almost half across both counties. Distressed condo sales also fell: down 25% in Sarasota and 47% in Manatee County. At the time of writing, there were only 112 distressed sales listed in Sarasota and 100 in Manatee County. A far cry from the heady days of the not-too-distant past, when distressed sales represented almost half of the market.
Inventory levels were a challenge during the latter part of 2015 and buyers may have been challenged to find the home of their dreams with only around four months supply of homes in the market. A balanced market is said to have six months supply of homes.
Our winter tourist season was also a record breaker, with our two-county area welcoming more visitors than ever before. Does this set the scene for another real estate boom in 2016?
What other factors may influence the real estate market in 2016?
An increase in the supply of new homes would certainly boost our market. While recent months have seen inventory creeping up slightly, more new construction offerings will help. We continue to attract new builders to the area, but shortage of skilled sub-contractors will slow progress, so more needs to be done here. The building boom has also stretched our local government resources. Permits take longer to be issued and inspections may not be as timely. Let’s hope both Sarasota and Manatee Counties continue to strive to better this situation.
Many homes in our area are purchased with cash, but low mortgage rates will be essential to the continued success of our market. They will assist full time residents, as opposed to second home owners and investors, to make those important moves to accommodate a growing or shrinking family.
The continued strength of the U.S. Dollar has seen many of our international buyers look to finance home purchases rather than pay cash. This allows them the opportunity to repay the mortgage at a time when their home currency is stronger. Mortgage offerings for overseas buyers are increasing and will further fuel this important growth area, against the backdrop of a strong Dollar.
Ongoing investment in our local infrastructure is key to the success of our real estate market in 2016. No-one wants to move to an area that cannot support its population with adequate jobs, government services, schools, medical facilities, and traffic flow.
It goes without saying that the overall economic climate and the looming presidential election have an impact on the population’s ability to buy and sell homes. Uncertainty over the election may lead to consumers being reluctant to make decisions, and they may choose to defer those decisions to 2017.
So what does the crystal ball say about 2016’s real estate market in Sarasota and Manatee Counties? Only time will tell, but as long as we all continue to invest in our local communities we are more likely to thrive.
[1]Patricia Tan was born in England, and her career in international sales and marketing led her to live and work in many countries around the world before moving to Sarasota in 1997. Patricia is a Certified International Property Specialist (CIPS), Graduate Realtor Institute (GRI), and Transnational Referral Certified (TRC). She is involved in global activities of the Sarasota, Florida and National Association of Realtors, and currently serves as NAR President’s Liaison to U.K. Her real estate business operates from Coldwell Banker on St Armands Key, where her focus is to bring international buyers to the local market. She regularly makes marketing trips to Canada, Asia and Europe, to promote Florida’s Gulf Coast and the Sarasota area in particular. Patricia may be reached at 941-504-9232 or Pat@PatriciaTan.com [2].
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Realtor Pat Tan elaborates on 2015 Was A Record Breaker, What Does 2016 Hold?
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