Strange doesn’t even come close to describing today’s real estate market. You would think that in the middle of a pandemic, everyone would be afraid to leave their home, much less purchase a new one.
Well, I guess the American people are made of stronger stuff than that because the real estate market is not only alive and well, it’s soaring.
According to the S&P/CoreLogic/Case-Shiller National Home Price Index, the adjusted-for-inflation real home prices rose 45% from February 2012 through May 2020. Not a bad investment if you purchased a home eight years ago. In fact, it’s a remarkable record considering that the United States is dealing with a once-in-a-century coronavirus pandemic, which created a recession and social upheaval.
Florida Realtors also reports an active and appreciating real estate market in our state. No surprise here that during April and May, Florida Realtors reported higher median prices and more pending inventory but fewer closed sales and fewer new listings compared to the second quarter of last year.
Closed sales of single-family homes statewide were down 19.2% from the second quarter of 2019, and condos down 33.9% for the same period. In a typical real estate market, these numbers are a good look into the future, however, this year is an exception with everything related to the virus shifting from week to week. In spite of this, Florida’s home sales are off by less than 2% from last year’s pace as of mid-August when these numbers came out.
Statewide, median sales prices for single-family homes were up 4.7% compared to the second quarter last year, and condo sales were up 6.2% for the same period. Inventory is down 27% statewide compared to last year and the lack of homes will continue to propel prices upward, according to Florida Realtor.
Next week when the August Manatee County sales statistics come out, we’ll have a better idea about what’s happening close to home. In the meantime, let’s see how Cortez and Anna Maria Island are looking relative to million-dollar property closings and availability during May, June and July. Numbers are from realtor.com.
Cortez had six properties listed between $1.2 million and $1.3 million, two more than last time. The City of Anna Maria had had 57 properties listed; last time there were 73 listed. The properties range from one at $6.3 million, three were over $4 million, seven were over $3 million and 12 were over $2 million; the balance was between $2 million and $1 million. The combined cities of Bradenton Beach and Holmes Beach listed 75 properties for sale; last time there were 69. There were four over $4 million, three over $3 million, 22 over $2 million and the balance between $2 million and $1 million.
Sales in these areas have certainly recovered but are still slightly off. The sales numbers come from the Manatee County Property Appraiser’s website. Cortez did not have any closings over $1 million, the same as last time. The City of Anna Maria had 28 sales over $1 million; last time they had four. Prices ranged from a high of $5.4 million to a low of $1,025,000. There were two sales over $3 million but most of the sales were between $2 million and $1 million. The combined cities of Bradenton Beach and Holmes Beach had 19 sales over $1 million; last time they had five. There was one sale over $4 million and one sale over $3 million; the balance started in the low $2 million to the low $1 million range.
For certain, we are a strong optimistic people as reflected in the growing economy and growing real estate market. Stick with it and stay safe.
