Home prices continue rising but Sarasota-Manatee trails national pace
The upward trajectory in home prices continued nationally and locally in December, though the North Port-Sarasota-Bradenton market fell well short of the country’s mark.
The CoreLogic Home Price Index shows national home prices rose 6.6 percent year-over-year for the fifth consecutive month. During the same period in Sarasota-Manatee, home prices, including distressed sales, climbed by 3.8 percent. Florida also outpaced the local market with a 5.8 percent increase.
Rising demand combined with limited inventory equals appreciation in home prices. Thus, affordability continues to erode, especially in the low-price range, the company said.
“The number of homes for sale has remained very low,” said Dr. Frank Nothaft, chief economist for CoreLogic, a global property information and analytics company. “Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”
Tuesday’s monthly report from CoreLogic projected slower price growth through the year, with a 4.3 percent gain by December 2018.