Hurricane Irma could do little to slow surging home prices in the Manatee-Sarasota region in September. Or across Florida, for that matter.
Prices in the two-county area jumped 3.9% year-over-year in September, according to real estate researcher CoreLogic's latest report, though the region continues to lag behind growth being enjoyed statewide (6.2%) and nationwide (7%).
The numbers of closed sales were down 21.1% in Manatee County and 16.7% in Sarasota County in September in the wake of Irma, according to the Realtor Association of Sarasota and Manatee, but prices continued to climb.
"Heading into the fall, home price growth continues to grow at a brisk pace," CoreLogic chief economist Frank Nothaft said in the report. "This appreciation reflects the low for sale inventory that is holding back sales and pushing up prices."
That includes Manatee and Sarasota counties, which had 4-month and 3.7-month supplies, respectively, of single-family homes in September, meaning that's about how long it would take to sell all of the properties if no others came up for sale. A 5.5-month supply is considered the ideal balance between buyers and sellers in the Manatee-Sarasota region.
"A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate," CoreLogic president and CEO Frank Martell said. "While demand and home price growth is in a sweep spot, a third of metropolitan markets are overvalued, and this will become more of an issue if prices continue to rise next year as we anticipate."
Case in point: CoreLogic projects prices in Florida will increase by 6.9% by September 2018, compared with 4.7% for the country.
Fourteen states had higher year-over-year price gains in September than Florida: Washington (12.5%), Utah (10.5), Nevada (9.6), Idaho (8.9), Oregon (8.8), Colorado (8.2), Michigan (8.2), Hawaii (7.9), Maine (7.5), South Dakota (7.4), California (7.3), Massachusetts (6.9), Tennessee (6.5) and Georgia (6.4).
Only West Virginia (0.3%) saw prices fall.
Tribune Content Agency