The 2016 Gulf Coast of Florida Housing Market
The Gulf Coast housing market finished 2016 strong. There was a slow down right before the election, but despite the election slow down the Manatee County median single family home price soared up 7.5% to $285,000 from December 2015. Condo prices in Manatee County also saw a modest gain over last year of 3.8% to bring the median sales price to $185,000. Cash sales equated for less percentage of total sales compared to last year, but still much higher than other counties in Florida as well as the rest of the Nation. Condo cash sales between Manatee and Sarasota counties combined represented 63.1% of total sales down from 66.1%. While cash sales for single family homes in December for both counties compared to December of 2015 dropped from 40.9% to 34.1%. Inventory levels increased this year in both counties. Manatee County month’s supply inventory for Condos and single family homes is hovering around a 4 month supply closer to a balanced market of a 6 month supply.
The 2017 Trump Presidency and Economy
The Trump presidency so far has been good for the economy in the stock market, but with stocks looking optimistic it has slowed Real Estate Sales in the very short term. Interest rates began to shoot up and caused Buyers to see their purchasing power decrease and Mortgage loan applications dropped. Another effect was the U.S. Department of Housing and Urban Development (HUD) which was set to have a premium cut on FHA loans saving the average FHA borrower $500 a year in insurance costs was suspended and does not look like it will be reinstated in the near future. I think these woes will adjust themselves as we move closer to a balanced market. Hopefully a stronger and healthier economy is in the near horizon. This year will still be a seller’s market, but properties will take longer to sell due to higher competition. I expect median home sale prices to rise and inventory levels to also increase. Find out today how much your home has appreciated and how much equity you have built with a FREE Comparative Market Analysis.