Gosh, how the world has changed since I last sat down to write this newsletter! Firstly, I hope that you are all safe and well and getting to grips with the new normal. It’s been an adjustment for us all. I know that many of my clients that live here full time or got “stuck” here felt fortunate that we were able to spend time outside soaking up the warmth of the sun while we sheltered at home.

The April real estate sales report issued by the Realtor Association of Sarasota and Manatee tells you everything you need to know about what’s happening in the market right now. In a nutshell, closed sales for single family homes in Sarasota County for March were 31 percent higher than the previous month, which reflected the beginning of stellar season for real estate. The upward trajectory was halted, albeit temporarily, as coronavirus restrictions came into play, and so these high sales figures contrast sharply with a significant decrease in homes going under contracts written in March. In Sarasota and Manatee counties, single family pending sales decreased by 32.9 percent and condo sales by 39.5 percent. The number of new listings coming onto the market decreased also, with many sellers opting to hold off on going to market in the short term.

Along with construction, real estate was designated an essential activity by the Governor of Florida, and it was not difficult for the sector to respond quickly to new safe business practices; the wonders of video conferencing and FaceTime have made it relatively easy to conduct virtual showings for customers who still want to buy, but are not in a position to physically travel to the area. It is important to note that the current slowdown is not due to an imbalance in the underlying housing market, as was the case with the subprime mortgage crisis in 2008. None of the factors that contribute to a housing recession are in play. Unfortunately for some, uncertainty about employment or health concerns will prohibit them from making a real estate move in the near future, but overall the number of buyers waiting in the wings indicates that as the situation begins to ease, we will see the effect of pent up demand on our market and we can expect the market to bounce back in the coming weeks and months.

For many customers, experiencing a pandemic on this global scale has given pause for thought, and an opportunity to reassess priorities, which may well result in retirees seeking their place in the sun sooner than they had originally planned. As residents of high tax states contemplate the likelihood of strained public budgets for the foreseeable future, and as the propensity to work from home has become a normality for many, a move to Florida is likely to seem even more attainable.

The historically low mortgage rates are going to ensure that buyers keep buying. Additionally, sellers should be encouraged to know that now is actually a very good time to bring a house to market for two compelling reasons: values are holding strong and there is relatively few little on the market.

CORONAVIRUS RECOVERY BY THE NUMBERS

Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “The housing market is continuing its path to recovery as various states reopen, leading to more buyers resuming their home search.” For additional commentary from leading industry economists, please CLICK HERE

If you have any questions about the real estate market, if you’d like to get an idea of what it would take to get your house sold, if now is the right time to purchase your next home, or if you simply would like to get more information about the Sarasota/Bradenton area, please don’t hesitate to get in touch with me. I’d love to hear from you. 941.724.4995 or bev@murraygroupusa.com