I’m starting to read in national publications that the real estate market is beginning to return to normal with more new listings hitting the market, especially in what is considered the luxury market. Well, if that’s true, no one told the homeowners and homebuyers in Manatee and Sarasota counties.
But could this be a predictor of the future?
According to Realtor.com, nationally new active listings for June were 43% less than June of last year – an improvement from May of this year, when the difference was 60% from May of last year. Those numbers do show a trend in more active listings nationwide. According to Realtor.com, this change is reflected in the new listing prices going down as well in June.
In addition, Realtor.com is reporting that the number of new listings over $1 million jumped 17.5% for the week ended June 19 compared to the same week last year. By comparison, new listings priced under $350,000 were down 7.4% for the same week. Obviously, lower-end homeowners never have the same flexibility that higher-end homeowners do, especially since many of the higher-end properties are second homes.
Real estate analysts are taking the position that more houses are coming on the market particularly for high-end properties. Owners who decided not to list during the worst of the pandemic when it wasn’t practical to list their homes are now ready to move on. Also, even those homeowners who were not thinking about selling are now rethinking their decision when they see the sale prices zooming up. That said, it is still a hot market with very low interest rates for mortgages. However, per the National Association of Realtors, it is no longer a frenzy where the sky’s the limit.
So, do homeowners in Manatee County believe any of this? It sure doesn’t appear that they do. April, May, and June’s new listings are stable at 797, 787 and 784, respectively. Pending numbers are also very close with April at 1,167, May at 1,180 and June at 1,080. And, there is certainly no negative effect on the median selling price at $405,000 for April, $400,000 for May and $405,305 for June.
That said, the last three month’s new listings, pending listings and median single-family sale price appear to be leveling off. Is it buyer fatigue or are we about to see some changes? Florida has seen a large influx of new residents that started before the pandemic but has accelerated since. We are now the third-largest state in population in the country and have attracted many northeastern homeowners and businesses, alike. So, will Florida follow the national trend?
Maybe. A more normal market would be beneficial for everyone. I just don’t think we’re there yet, regardless of what may be happening in other parts of the country. Florida steps to its own drummer and has always surprised the high-end market in what is considered the more sophisticated areas of the country. But those days may be over.
You don’t need to be a prophet to know that you can’t time the stock market and you can’t time the real estate market. If it’s the right time for you to sell for reasons beyond maximizing your profit, then you must do it. If it’s the right time for you to buy, you need to find the best possible property for your family and try and make it work financially. Thankfully, none of us are Nostradamus. Where’s the fun in being him, anyway?