The Chief economist for the popular real estate website Zillow.com predicts moderation in Sarasota home prices over the next 12 months. Stan Humphries noted a 13 percent increase in home values over the last year but predicted a more sustainable 4.3 price-appreciation percent for the next 12 months, according to an interview with Harold Bubil in the Sarasota Herald-Tribune.
Humphries points to higher mortgage rates, lower affordability and new construction as factors in reducing demand. He expects newly built homes to ease the current low inventory. Also, homeowners will begin selling again once they achieve enough equity to cover transactions costs.
He suggests that the Sarasota real estate market take four or five years to return to boomtime levels.
Photo of Stan Humphries courtesy of Zillow.com
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