Are we starting to see an adjustment in the real estate market, perhaps, or are only parts of it changing? One thing that is still very strong compared to the country as a whole is the cash offers that are being made.
No matter how you spin the sales stats, which we’ll get to shortly, when it comes to having the edge, buyers with all-cash offers are always ahead of the pack. There is a slight decline in cash offers both nationally and locally, however, the percentage of cash sales is still staggering.
For this reason, buyers team up with family members to consolidate funds in preparation for cash offers. Many of these sales are converted into mortgages or home equity loans after closing. Of course you have to come up with the money first and suddenly there are a number of companies funding the money on behalf of the buyers and then taking a fee as a percentage of the money paid later when a loan can be placed on the property. Some cash offering companies buy the house on behalf of the buyer and then resell it to the buyer. Others give buyers money to make the purchase themselves.
About 25% of June home sales were paid for in cash according to the National Association of Realtors, near the highest level since 2014. Comparing the national market to the local market, the Sarasota Association of Realtors and Manatee for June reported cash sales for singles. homesteads were around 39%, significantly higher than the national average. Cash condo sales for June in Manatee County were around 55%, however, I don’t have a national “paid in cash” number for condos.
So let’s move on to the overall June sales stats recorded by the Realtor Association of Sarasota and Manatee.
Single-family homes closed 22.3% fewer properties, the median sale price was $550,000, the same as last month, the percentage was up 37.5% from a year ago and the average sale price was $690,524, up 19.8% from a year ago. The median time to contract is six days and a month’s supply of available properties is up 200% from last year at 1.8 months. Indeed, there are 31.5% more new listings in June compared to last year, which adds to the available inventory.
Condominium sales closed 23.6% fewer properties, the median sale price was $356,500, up 27.3%, and the average sale price was $441,868, up 33 .2%. The median time to contract is seven days and a month’s supply of inventory is 1.5 months, up 200% from last year. In addition, there are 8.4% more new listings this month compared to June of last year, which represents a monthly increase in condominium inventory.
The Sarasota and Manatee Association of Realtors says Sarasota and Manatee counties are starting to see more homes available for sale compared to last year. This trend will likely continue given record prices and rising mortgage rates. Sellers will take the sale seriously and buyers who can benefit from the higher rates will want to buy before rates start to rise again. However, even a two-month available supply of goods is still far from the six-month inventory that has always been considered a balanced market.
Money trumps everything in real estate in all markets – always has and always will. Keep an eye out for the future and the possibility of a sea change towards a more level real estate market.