Longboat Key, Florida | July 16th, 2019 – Putting a residential property on the Sarasota‒Manatee real estate market now sounds like a good move for aspiring sellers, based on the area’s most recent realtors’ statistics. Sales of single family residences in both counties are notably proceeding at a robust clip, and it is likely that this strong pace is sustainable moving onwards the second half of 2019.
In Sarasota for the month of May, closed sales rose a hefty 17 percent, the strongest gain so far this year. The month’s pending sales, an indication of potential closed sales in ensuing months, likewise advanced a solid 11.6 percent, the highest gain since January this year. The torrid sales activity, in turn, appears to have significantly dented the county’s inventory of single family dwellings, which for May stood at a 4.5 months’ supply that by industry standard indicates a sellers’ market.
Nearly the same promising scenario was seen in Manatee in May. The county posted a 13.8 percent sales increase for the month, and its inventory of single family residences slipped to just a 3.8 months’ supply.
Less Competition from Flippers
It is likewise encouraging for traditional sellers of real estate properties that “flippers” have now become less active on the Sarasota‒Manatee property market. Recent industry readings show that Flippers or investors who sell houses or condos within 12 months of their property purchase, are closing fewer sales and pocketing lower profits this year.
According to ATTOM Data Solutions, there were 225 “flips” in the two-county region during this year’s first quarter. This figure represents a 16 percent decline versus the same three-month period in 2018.
The real estate data cruncher’s reported too that the flippers are making less profits on their deals. During the first three months of 2019, the median gross profit of flip sales was estimated at $50,000, a drop of $8,000 from a year earlier.
The flipping decline in our Sarasota-Manatee market is notably in contrast with gains across Florida and nationwide. Nonetheless, flippers’ gross profits state-wide and across the U.S. are also on a downtrend.
The diminishing influence of flips on the Sarasota-Manatee market was likewise evident in the slide in sales of distressed residential properties, the typical hunting ground of flippers. In January this year, short sales and foreclosures accounted for 3.6 percent of total sales closed during the month. This slice compares with the 4.3 percent share of distressed sales in our region in January 2018.
The much-improved regional and national economy has also substantially trimmed down mortgage delinquencies that fuel short sales and foreclosures. The real estate data provider CoreLogic reported that mortgage delinquency rates which spiked after Hurricane Irma have returned to normal levels in the Sarasota‒Manatee area.
CoreLogic noted that the share of local homeowners who are at least 30 days late on their mortgage payments dropped to 2.7 percent in January from 5.4 percent a year earlier and from 2.9 percent in December.
We can feel the dynamism of the factors shaping our Sarasota-Manatee real estate market. Touch base with our Judy Kepecz-Hays team to benefit from our market insights on the best approaches when selling or buying real estate.
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