We have witnessed different ebbs and flows of the real estate markets, from boom to bust and everything in between. In a world of uncertainty one thing hasn’t changed and that is everyone needs a place to live; and Southwest Florida is an attractive place to call home.

The economic downturn has arisen from efforts to combat this pandemic through social distancing. Although these efforts are in everyone’s best interest, they create undeniable challenges. Viewing this reality within a historical framework proves helpful.  Namely, this current moment fits into a cycle that will include a rebound of economic expansion.

Looking at current facts and trends of the housing market gives us a window into the probable impact from the coronavirus crisis. 

What is happening in the Sarasota-Manatee housing market?

We give consideration to numerous factors in today’s fluctuating housing market. I have compiled and displayed the breakdown on the local market place for Sarasota and Manatee County between the period of April 1, 2020 – April 30, 2020. These statistics reflect 1037 new listings, 1250 pending units, and 1452 sold homes.  Surprisingly, even though the state was under a “stay at home” mandate, Sarasota and Manatee counties saw quite a bit of activity. Although this is lower than typical April numbers, it does indicate that Sarasota/Manatee real estate is still active and essential. Life events are not stopping…people are still relocating, families are still having babies, kids are still graduating.

We’ve seen signs that the coronavirus is giving pause to some buyers and sellers. But in this low inventory environment, even as some potential buyers enter into a wait and see pattern, there are others who remain eager to get a home under contract while rates are so low.

But here are a few other reasons why we are confident this is not a housing crisis. Let’s look at other indicators for today’s housing market that differ from conditions in 2008

According to monthly reports from Florida Realtors®, median prices increased while inventory declined in both counties.

Appreciation

When we look at appreciation in the visual below, there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.

Inventory

Inventory in the markets remains tight, mortgage interest rates are low and demand for real estate in our area should continue to remain high. In fact, the housing demand might even increase, if people decide to shift assets from the financial markets to more tangible assets like vacation properties.

One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. There are not enough homes on the market to meet the demand of buyers. Across the country, there are less than 6 months of inventory, an under-supply of homes available for interested buyers. Although inventory is a major concern in many markets, the Sarasota area enjoys the advantage of having a more versatile inventory selection, with multiple excellent options in the low to mid-range, as well as luxury homes.

We believe the underlying fundamentals of Southwest Florida real estate will remain strong after this pandemic has subsided and the benefits of home-ownership might even be more valuable now more than ever. The housing market could be just what helps pull us out of this temporary downturn. This certainly gives hope and optimism for what is to come as this crisis passes.

I’m committed to helping those I serve, and I am dedicated to the overall health and well-being of our community. My goal is to help clients make the best decisions for their own unique situations, especially during this time of uncertainty. Please do not hesitate to contact me to discuss the current housing market statistics for your area.