The Shift Is Now A Pivot
If you are following real estate trends you have probably noticed a change in the air but maybe you couldn’t quite put your finger on it. First there was the huge shift and now you’re seeing the real estate market pivoting. Rest assured, it is not going backwards.
So far this decade the real estate market has been interesting to say the least. We hit the roaring 20’s with jokes and memes of Model T’s and flapper dresses. We had no idea the shift that was coming. In real estate what has happened is a classic example of Economics 101- supply and demand. When
everything shut down and we had nothing to do but look around the house and people decided to make changes. They wanted a new place to live. Builders couldn’t get the supplies. Demand was still going up though. Home buyers when they couldn’t build a new house, they flocked to the resale houses. Mortgage rates dropped to crazy low terms to stimulate the economy (boy did it work too!). The inventory for resale homes went to the lowest level most have ever seen. Homes were receiving multiple offers. Ray’s and my record is 21 written offers in 24 hours. Buyers wanting to win a bid were making offers well above sellers list price. They were waiving inspections, buying sight unseen, they were allowing sellers to continue to live in the house post closing for free. Ray and I are affiliated with Coldwell Banker Realty who consistently prepare and inform their real estate professionals on how to take their buyers and sellers through this incredibly complicated market.
Now in the middle of 2022 the real estate market has less shift and is in more of a lateral pivot move. This real estate market pivot caused me to recall a college economics exam and one particular question. It was a multiple-choice question which asked, “What is the best way to stop people from speeding?” There were four choices. I only recall two. One answer was high dollar speeding ticket fines. And the other answer was speed bumps. I selected speed bumps. Afterall, I will risk getting caught for speeding but put a speed bump down and I will slow down (of course that was when I was younger). The correct answer was the higher speeding tickets. I politely went to my professor and debated why my answer was also correct. In the next class he said he understood the rationale of the speed bump answer and he would give a 1/2 a point to anyone who answered with “speed bump”. Supply and demand and a speed bump is where we are now in the real estate market which is causing a market pivot.
We still have very low inventory. We still have high demand. But, prices were moving up quickly and in some cases a 30% increase year over year. Add to that the increase in mortgage interest rates, then add to that the stock market doing a little up-today-down-tomorrow action. Then there is inflation with a job market still growing. Builder supply chains are beginning to catch up, key word beginning. With all that happening we have our real estate market speed bump. Now, it’s time for sellers and buyers to pivot. I read in an article that, “Buyers still can’t sleep on it, but they can take a nap.” Sellers need to take note that interest rates have gone up and their Buyers can’t finance as much as they could before, nor do Buyers, who were cash buyers, feel as secure about when to move money into real estate. Buyers also need to understand that when they see price reductions that doesn’t mean prices are dropping like they did in the mess of 2008. Rather it means the sellers came on the market and then the pivot happened, and the sellers needed to adjust. From what analysts are saying the new real estate market price is being set here along the Gulf Coast. The days are long gone of buying a house with a pool within a few miles of the Gulf of Mexico in Southwest Florida for $250,000. The beauty and value of our area has been discovered. We agree with real estate analysts; unless something devastating happens to our economy our real estate pricing has been reset. As always, I want to provide you with a few articles written by analysts.
SHIFT! PIVOT! MOVE! Stats and Data
The infographic shows the data for all of Stellar MLS, which covers most of Florida.
Every month I share information about the market in the counties of Manatee, Sarasota, and Charlotte. That is so macro in scope. This month I want to break it down getting a bit more micro by highlighting a city or two in each county. (notice Englewood is special because it is in two counties)
Let’s look specifically at single family homes with at least 3 bedrooms, 2 baths, and 2 car garage and a pool. The square footage is 1400 -2400. We will look at the number and the price range of the homes on the market. Also I will highlight the number of pending sales & number of sold homes in the last 30 days. Plus I will mention the average percent of list price. Oh, notice a fun link to each town.
In Manatee County| BRADENTON: 61 homes available for sale in a price range of $475,000 to $1,625,000. There are 57 pending sales, and 44 sold in the last 30 days for an average of 103.8% of list price. Sold prices range $440-$1,295,000
Sarasota County | SARASOTA: 72 homes available for sale in a price range of $470,000- $2,295,000. There are 61 pending sales, and 45 sold in the last 30 days for an average of 101% of list price. Sold prices range $455,000 to $2,900,000
Sarasota County |VENICE: 33 homes available for sale in a price range of $399,900-$3,489,000. There are 42 pending sales, and 23 sold in the last 30 days for an average of 101.5% of list price. Sold prices range $445,000- $860,000
Sarasota County |NORTH PORT: 47 homes available for sale in a price range of $350,000-$974,000. There are 48pending sales, and 34 sold in the last 30 days for an average of 100.4% of list price. Sold prices range $335,000-$735,000
North Port Fun
Sarasota & Charlotte County |ENGLEWOOD: 15 homes available for sale in a price range of $440-$1,499,000. There are 22 pending sales, and 18 sold in the last 30 days for an average of 100.7% of list price. Sold prices range $440,000-$1,275,000
Charlotte County |PORT CHARLOTTE: 96 homes available for sale in a price range of $319,900-$1,500,000. There are 66 pending sales, and 46 sold in the last 30 days for an average of 98.4% of list price. Sold prices range $329,000-$1,595,000
Port Charlotte fun
Charlotte County |PUNTA GORDA: 60 homes available for sale in a price range of $389,900-$1,500,000. There are 56 pending sales, and 26 sold in the last 30 days for an average of 102.4% of list price. Sold prices range $370,000- $1,595,000
Punta Gorda fun
Here are the Market Reports, full of detailed stats and data for June 2022 by county. Click the county to see the data...
Remember, if you want a Market Report for a specific area let us know.
FYI-Alligators also work well as anti-speeding devices