If you “geek out” on statistics like I do, you will enjoy this month’s Sarasota Real Estate Market Update!
One would have thought the Coronavirus would have negatively impacted our real estate market; however, the opposite is occurring. Take a look at the numbers:
The National Association of Realtors® reported pending home sales continued to increase in June for two consecutive months. In the southern region of the United States, pending sales increased 11.9%, up 10.3% year to year.
How does that compare to the Sarasota market for the month of June?
For single-family homes, pending sales increased 32.9% over the same time last year. Equally important to note is the Month Supply of Inventory (MSI). In the month of June, our inventory decreased to 2.7%, a decrease of 35.7% over the same time last year. A balanced market (neither have control) between buyers and sellers is 4 to 6 months of inventory.
If inventory is above 6 months buyers gain negotiation power. At 2.7 months, congratulation sellers, you are in the driver’s seat!
Is there a relationship between the Coronavirus and an increase demand for real estate in our market? The low interest rates have certainly contributed to the demand; however, we in the real estate business are hearing very similar stories from the buyers:
- Families do not want to live in densely populated areas.
- People are now permitted to work from home, therefore choosing where they want to live.
- Social unrest has created a desire for smaller, safe cities.
- Homeschooling has become a way of life and warmer climates allow for children to be taught inside and outside. Everyone needs a recess!
- Coronavirus has provided a new perspective on life: What are we waiting for?
Will the housing market remain strong? Economists in the housing industry are indicating that the market will remain strong through 2021. I believe there are too many variables to provide any accurate predictions.