Everywhere you go in Florida, everyone is talking about real estate. It’s really engaging, even when you are just trying to enjoy your vacation.
Yesterday we made a few stops on the Parade of Homes near red-hot Sarasota. Even the so-called custom builders are too busy to customize anything right now. They are just building spec homes and then auctioning them off to buyers in real estate “shootouts”.
Houses that sold for $400K last year are now $600K. Houses that were $600K are now $850K. Some neighborhoods have doubled in price. If you bought a year or two ago, you feel like a genius. If you haven’t bought yet, you aren’t sure what to do.
A huge driver of the price acceleration is that the people that already live here aren’t too interested in moving. Active home listings in Florida are down over -70% compared with a few years ago. I haven’t seen this phenomena covered much in the media, but the trend is shocking when you see it in this chart …
You would hope that we could build our way into more inventory and builders are trying. It’s just not fast enough. As the chart below shows, housing starts for single family homes in Florida are rising from year to year, despite the recent difficulties getting construction materials …
We have some friends who are building near Sarasota and their construction is stalled as until more materials arrive. One agent told us that homes that used to take 6-8 months to build are now being quoted as 16-18 months. People expect that both timelines and prices will get worse before they get better.
How tight are housing inventories where you live? Would you consider moving now given how dynamic the real estate market is?
Image Credit: (c) MrFireStation.com