February 2023 Real Estate Market Update

For Sarasota-Manatee Counties

As we kick off 2023, the market is still tossing and turning as new listings and inventory increase yet pending sales saw a huge jump as well! Is this giving homebuyers more options? Will home prices stall? Keeping our analysis on a month-to-month basis, we will not be comparing our current numbers to those of the past year, since last year's market was a different market. Read on for your monthly Real Estate Market update!

Closed Sales

The number of sales transactions which closed during the month

We’d like to see closed sales start to increase (because they've been decreasing), but what we've seen is actually a slight drop; closed sales are down about 15% from 1,023 in December 2022 to 779 in January 2023. Those closed sales have gone up and down for the past few months, so it's going to be interesting to see what happens next month because the next stat is surprising.

*Statistics from* *https://www.floridarealtors.org/*

New Pending Sales

The number of listed properties that went under contract during the month

We saw a massive increase in pending sales, as they’re up 60% from 806 in December 2022 to 1,296 January 2023. This would lead me to believe that we would see a large increase in closed sales next month, so that up-down cycle of closed sales will continue.

Median Time to Contract

The median number of days between the listing date and contract date for all Closed Sales during the month

Median time to contract is up 20% from December 2022 to January 2023, moving from 25 days to 30 days. This means that homes are sitting 20% longer than they were in December, which has caused our inventory to rise just a little bit.

Months Supply of Inventory

An estimate of the number of months it will take to deplete the current Inventory given recent sales rates

We went from 2.8 months supply of inventory in December 2022 to 3 months supply of inventory in January 2023. That’s giving buyers some more options, and it's also making sellers be a little bit more competitive and realistic with their prices.

This also may be causing sales to increase because we're seeing some price drops and things coming back down to more affordable levels. This is great for buyers who've been sitting on the fence - things are becoming a little more flexible for them. For sellers, the idea is to be aggressive, upfront, lead the market, and don't follow it.

Median Percent of Original List Price Received

The median of the sale price (as a percentage of the original list price) across all properties selling during the month

We saw the median percent of original list price received drop 1% from December 2022 to January 2023, going from 96.2% to 95.2%. This shows us that there's a little more negotiation and price reductions happening, so be on the lookout for that.

If your home is listed and you're not getting traffic, check the marketing and the condition and then go to the price and ask yourself if there are other homes selling in your neighborhood and if there are other things that people are buying.

New Listings

The number of properties put onto the market during the month

New listings increased about 46% from 1,121 in December 2022 to 1,639 in January 2023. So we're seeing some more homes come on the market but that was coupled with a 60% increase in pending sales, which means it won't be alleviating any really tight inventory concerns. That's still going to stay tight because a lot of those new homes that came on the market went under contract already.

What Are We Paying Attention to Moving Forward?

We're going to have to pay attention to what the Fed does in the next few months regarding interest rates to see how that impacts housing, mortgage rates, things like that. We're seeing some different things on the mortgage side, whether it comes to FHA, lowering mortgage insurance premiums, which will be coming out here in March. So that's going to make payments a little bit more affordable for buyers that are looking in those $300 to $450,000 range.

And there's some other exciting things coming down the road! So whether you're looking to sell or buy, there's a great opportunity for both if the motivation matches what you need to do.

A Message for Buyers and Sellers

Being in a seller’s market, but right on the edge makes it one of those markets where it's good for both sides. There's opportunity for buyers and there's opportunity for sellers. You just have to have the right agent in your corner who is:

Knowledgeable of the market
Familiar with pricing
Asking you questions about your future plans

When you're buying or selling, it matters what you plan on doing with the home. If you're going to buy a home and keep it forever, price is not as big of a factor because historically, real estate has always gone up. If you're buying a short-term home, then you have to be strategic in where you buy and what you pay. Just make sure you're working with the best agents!