Home prices hit a 33 month high

Posted by Jane Ebury on Monday, June 5th, 2017 at 2:04pm.

 
We head into the summer with a 9% increase in active listings from this time in 2016.  However, inventory continues to be very tight especially in lower price ranges which is certainly driving prices up in the under $300,000 range.  In Sarasota Country the inventory of single family homes and condos increased by 12%. Singer family homes in Manatee County increased by 3%, while  condos increased by 9%.  
 
I am always asked  "do you think we are heading for a boom" and "are we heading for a crash". First, I don't have a crystal ball, so we focus on other factors which effect the real estate market and the economy.  The main place is the S&P Corelogic Case-Shiller National Index. This provides insight into the market performance. According to the Managing Director and Chairman of the Index Committee at S&P Dow Jones - Home prices continue rising with the S&P Index up 5.8% in the year ended March, the fastest pace in almost three years.
 
Now, we also need to consider the amount of consumer credit scores now recovering from the recession. The share of borrowers considered among the riskiest borrows hit a record low this spring. This could provide a mortgage market boom - A good credit score can help borrowers snag a better mortgage rate and better their chances of qualifying for financing. "Higher scores lead to more available credit," says Chris DeRitis, senior director in the economics group at Moody's Analytics. "We'd see more activity in terms of loan approvals and credit-card approvals, more spending, and that would have a ripple effect across the economy, increasing aggregate demand for goods and services." This brings more buyers to the market which in turn will drive up the demand.
Market Snapshot 
Apr 2016 vs Apr 2017
Sarasota
Manatee
Median Sales Price for Single Family Homes
$272,500 up 9%
$295,000 up 5.4%
Median Sales Price for Condo
$215,000 down 1.4%
$170,500 up 2.1%

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