Moulton Sarasota Real Estate Report – July 2018 Market Keeps Up Steady Growth

Sarasota Real Estate

Despite The Sarasota Real Estate Market being in the midst of the somewhat slower summer months, July kept with tradition and raised year-over-year pace. The majority of contracts are written in April-June for closings that occur in July, so July tends to remain active. All indicators showed positive results with sales growth, total volume up, price appreciation and contracts signed steady with last year, indicating the months ahead will continue to see healthy conditions.

Inventory of both existing single-family homes and condos continues to tighten, which is keeping upward pressure on prices. Both segments saw more than 8% growth in median prices last month. New listings have consistently fallen below sales this year and left us with only a 3.9 month supply of single-family homes and 4.1 months of condominiums, both well below the 6-month supply level assumed to indicate a balanced market between buyers and sellers.

New construction in the Sarasota Real Estate Market has been consistently bringing outstanding product to market and is helping to ease strong demand for housing in our region. Both in the urban areas as well as to the east have added wonderful communities. The quality, detail, amenities and beauty our local builders are offering in their new homes is giving even the most discerning buyers the chance to check off all the “covets” on their wish lists.

Since moving with my wife Katie into a beautiful condominium to enjoy the “downtown” lifestyle five years ago, we have not only seen incredible growth of both condo and apartment options, but also extraordinary demand for urban living. My clients from the keys as well as newcomers to the area see that Sarasota’s downtown corridor has become extremely attractive with its year-round performing arts, amazing variety of fabulous restaurants, and wonderful boutiques. The projects underway and still in design and approval stages will add some spectacular new options to consider. It would be my pleasure to speak with you, your family and friends about the exciting new and existing choices.

And now for my monthly statistical information. As always, I have analyzed a number of local, regional and national resources and present a compilation of my findings.

Sales

  • Total Sarasota Real Estate Market dollar volume of $362.5 million in July increased by $7 million from the prior year and decreased $95 million from June, which was expected as we get away from sales in season.
    • Broken down, single-family sales were $249.5 million and condominium sales were $113 million.
    • Single family sales decreased $6 million compared to the prior year, and condo sales were up $13 million from the prior year. Total sales volume increase a little over 2%.
    • Florida’s single family sales volume grew 9.8% and condo volume was up 9.6%.
  • The number of properties sold in July was 1,045, which was 137 less than June yet 56 more than a year ago. The sales total included 683 houses and 306 condos.
    • Florida’s single-family sales increased 3.8% and condo sales were up 8.5% compared to prior year.
    • S. single-family sales declined 1.2% and condo sales fell 3.3%.
  • The 2018 monthly year-to-date average for sold properties is 1,094 whereas the 2017 monthly average was 966, a nice average monthly increase.
  • Of the closed sales in Sarasota last month 31 were for over $1,000,000, 3% of the total sales, 18 were houses and 13 were condominiums.
  • All cash sales in Sarasota continue to be strong with 33% of single-family and 57% of condo sales closed without a mortgage. By comparison, national all cash transactions were 20% of total sales.
  • Listings that went pending the past month were 998 and increased by 6 transactions from the same month last year.
    • Florida’s single-family pending sales were virtually equal to last year.
  • For the first seven months of 2018 we have averaged 1,176 pending sales. The monthly average of pending sales in 2017 was 1,043 and in 2016 it was 1,005. This trend is important to watch as it tends to forecast sales activity in the 30-90 days ahead.

Prices

  • In July, Sarasota’s single-family homes were sold at a median price of $280,750. The 2017 monthly median price average for houses sold in Sarasota was $267,043, about an 8% increase.
    • In July, Florida median price for single-family homes was $255,000, a 6.3% increase over last year.
    • The national median price for existing homes grew by 4.6% to $272,300 – this was the 77th consecutive month of year-over-year price appreciation.
    • New homes continue to sell for 20% or more over existing home prices.
  • The condominium median sale price was $232,000 in July vs. $215,500 a year ago. The 2017 monthly median average was $225,585.
    • Median price for a Florida condo last month was $180,000, a 5.3% increase over July 2017.
    • S. median condo price grew 3.2% in July to $248,100.
  • The average sale price for houses sold in Sarasota was $354,396. The past year’s monthly average price for houses sold was $370,708.
  • Sarasota’s condominiums sold for an average price in July of $331,241. The 2017 monthly average price for sold condominiums was $362,378.
  • Overall properties sold for 95% of the list price, a consistent ratio on a regular basis. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Inventory

  • Currently there is available inventory of 4,036 properties for sale in Sarasota County, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • Total available inventory in the Sarasota Real Estate Market has decreased by 137 listed properties from June and 136 less properties than a year ago.
  • Of the available inventory for sale 535 properties are listed for over $1 million or only 13%. 409 of the active listing are houses and 123 are condominiums.
  • Sarasota County had 1,134 new listed properties in July. The local market averaged 1,147 new listings per month in 2017. Of the total new listings the past month, 67 properties were listed over $1,000,000, a small amount of the overall available inventory for sale.
  • As mentioned previously in this report, inventories in The Sarasota Real Estate Market have fallen this year to just 3.9 months of single-family homes and 4.1 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.9 months of single-family inventory, close to the same as last year, and 5.3 months of condominiums, which is 2.2% below prior year levels.
    • S. inventory of all housing types is sitting at 4.3 months of supply, about the same level as last year at this time.

Wishing all of my readers a wonderful late summer!

As always, I look forward to serving you, your family and friends with their real estate needs.

Moulton Sarasota Real Estate Report – June 2018 – Price Appreciation Continues

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – June 2018

Sarasota Market Continues Price Appreciation

The Sarasota Real Estate Market has seen consistent price appreciation in the last several years. However, unlike some parts of the country that experience seasonal peaks and valleys, our region is one of the most stable of the high-demand communities that I keep an eye on. Seeing steady growth in home values, along with consistent inventory levels and sales growth has set our local real estate market on solid fundamentals, which will serve us well through the balance of our summer season.

Strong consumer confidence is driving steady demand from buyers for both existing and new homes. Home sellers are also feeling upbeat. A recent study found that many would-be sellers have decided to stay in place waiting to find just the right property, resulting in one of the longest average ownership periods in decades. The upside for sellers? Average return on investment has also grown – now said to be in excess of 30% for a home that has been owned eight years.

The most recent survey by the National Home Builder Association showed continued confidence from builders, despite some rising costs for materials and ever-present shortage of skilled labor. Median prices for new homes are averaging 15-20% higher than an existing home, which is a smaller gap than had been seen last year. The national supply of new homes is growing and is currently said to have 5.7 months of available inventory. However, it is important to note that the inventory count includes both completed and homes under construction.

The statistical information below is a compilation from a number of local, regional and national resources that I monitor every month to evaluate the market.

Sales

  • Total Sarasota Real Estate Market dollar volume of $457.5 million in June increased by $39.3 million from the prior year and decreased $10 million from May.
    • Broken down, single-family sales were $330 million and condominium sales were $127.5 million.
    • Single family sales increased $48 million or 17% compared to the prior year, and condo sales were down $6.6 million or 5% from the prior year.
    • Florida’s single family sales volume grew 6.3% and condo volume was up 10.9%.
  • The number of properties sold in June including both single family and condominiums was 1,182, which was 90 less than May and 27 more than a year ago. The sales total included 798 houses and 384 condos.
    • Florida’s single-family sales decreased 1.3% and condo sales were up 1.2% compared to prior year.
    • U.S. single-family sales declined 2.3% and condo sales fell 1.6%.
  • The 2018 monthly year-to-date average for sold properties is 1,102 whereas the 2017 monthly average was 966 and in 2016 the monthly average was 952.
  • Of the closed sales in Sarasota last month 56 were for over $1,000,000 or 4.7% of total sales, 42 were houses and 14 were condominiums.
  • All cash sales in Sarasota continue to be strong with 34% of single-family and 58% of condo sales closed without a mortgage. By comparison, national all cash transactions were 22% of total sales.
  • Total pending sales of 1,070 properties that went under contract during June decreased by 17 transactions from the same month last year.
    • Florida’s single-family pending sales fell 3.3% and pending condos sales were virtually equal to last year.
    • National pending sales fell 2.5% from prior year’s contract signing activity.
  • For the first six months of 2018 we have averaged 1,205 pending sales. The monthly average of new pending sales in the Sarasota Real Estate Market in 2017 was 1,043 and in 2016 it was 1,005. This trend is important to watch as it tends to forecast sales activity in the 30-90 days ahead.

Prices

  • In June, Sarasota’s single-family homes were sold at a median price of $279,500 vs. $275,000 a year ago. The 2017 monthly median price average for houses sold in Sarasota was $267,043 and in 2016 $249,943.
    • In June, Florida median price for single-family homes was $260,000, a 6.3% increase over last year.
    • The national median price for existing homes grew by 5.2% to $279,300 – this was the 76th consecutive month of year-over-year price appreciation.
  • The condominium median sale price was $221,250 in June vs. $215,500 a year ago. The 2017 monthly condominium median average was $225,585 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $190,000, a 7.5% increase over June 2017.
    • U.S. median condo price grew 4.9% in June to $258,100.
  • The average sale price for houses sold in Sarasota was $413,500 in June vs. $359,226 a year ago. The past year’s monthly average price for houses sold was $370,708 vs. $346,232 in 2016.
  • Sarasota’s condominiums sold for an average price in June of $332,009 vs. $362,344 a year ago. The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
  • Overall properties sold for at 95% of the list price, a consistent ratio on a regular basis. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Inventory

  • Currently there is available inventory of 4,270 properties for sale in Sarasota County, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • Total available inventory in the Sarasota Real Estate Market has decreased by 174 properties from May, and 70 less properties than a year ago.
  • Of the available inventory for sale 561 properties are listed for over $1 million or only 13%. 436 of the active listing are houses and 125 are condominiums.
    • Inventory of single-family homes for sale in the Sarasota Real Estate Market listed over $1,000,000 has fallen 5.2% compared to last year.
    • Luxury condos in the price tier declined more than 23%. The drop in condominium inventory at the higher price points was reflective of considerably fewer new properties coming to market in the last few months when compared to prior year new listings.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 4.5 month’s supply of condominiums, both under the 6-month level considered a balanced market, and indicating that we are still in a seller’s market.
    • Florida currently has 3.9 months of single-family inventory, close to the same as last year, and 5.5 months of condominiums, which is 2.8% below prior year levels.
    • U.S. inventory of all housing types is sitting at 4.3 months of supply, about the same level as last year at this time.
  • Sarasota County had 1,134 new listed properties in June. The local market averaged 1,147 new listings per month in 2017 and in 2016 it was 1,005. Of the total new listings the past month, 74 properties were listed over $1,000,000 or only 6.5%.

Market experts continue to project housing market growth through the 2nd half of 2018. As noted earlier in this report, consumer confidence in the economy and strong employment numbers are fueling home buyer interest.

With the Sarasota Real Estate Market still well below the 6-month inventory level, presumed to be the sign of a balanced market, I expect our prices to continue their appreciation, albeit at a modest and sustainable pace. Our region remains fundamentally strong allowing for more growth in the months ahead.

Having assisted clients in the region for more than 35 years, I have the knowledge and experience to guide my customers through the complex process of searching for or marketing and selling a property in a relaxed and rewarding manner.

As always, I look forward to serving you, your family and friends with their real estate needs.

Michael’s Featured Listing:

Sarasota Real Estate

View All Michael’s Listings HERE

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Moulton Sarasota Real Estate Market Report – April 2018 Luxury Tier Maintains Growth

Longboat Key Condo

The Moulton Sarasota Real Estate Report – April 2018

Sarasota Real Estate Market’s Luxury Tier Maintains Growth Pattern

The whole of the Sarasota Real Estate Market continues to experience measured growth in sales, price appreciation and generally stable inventory conditions. But it is in the luxury tier – properties for sale over $1,000,000 – where activity has been consistently showing year-over-year growth of some significance. Subscribers to my newsletter are aware that the majority of my transactions are in this category, so I do watch and analyze it more than other price points. It has been some time since I focused one of my monthly reports on this segment, so in light of the unique aspects of this tier, I thought it was deserving of my April highlight.

What has been especially noteworthy in the Sarasota Real Estate Market this year is the completion of several spectacular new condominium projects, which have begun welcoming residents over the last six months. These developments, as well as other existing luxury condo residences had an increase in sales of more than 95% in the first four months of the year, when compared to the same period in 2017.  By comparison, single family homes in the over $1 million category increased 24% over prior year.

Another remarkable piece of data is in pending sales, those properties put under contract in the month but not yet closed. According to Trendgraphix, million dollar and above condominiums have shown consistently high growth over prior year with an average of 77% more pending contracts signed each month in 2018 compared to last year. Keeping an eye on pending contracts is key to being able to project sales activity in the 1-3 months ahead.

Also of note is inventory of available luxury condos in the Sarasota Real Estate Market. Again, using the first four months of the year, the area is averaging 27% less inventory of million dollar condo properties on the market. In contrast, inventory of luxury single-family homes is averaging 27% more monthly inventory when compared to last year.

The luxury condo market could be said to have been “disrupted” by the addition of the new buildings, but with others currently under construction and several more in various stages of design and development, I believe the trends that we have seen thus far in 2018 are likely to become the norm over the next couple of years. There has been great pent-up demand from both in-market and out-of-market buyers wanting to buy new construction, and with years of no new product coming to market, I believe there is great promise for luxury condo absorption.

In-market demand is especially interesting as I am finding a desire from current residents on the keys to want to relocate to downtown Sarasota and some new east County developments. In addition, there are many “baby-boomer” local clients looking for the lower-maintenance, privacy and security, and especially luxury-hotel-like services and amenities of today’s condominiums, instead of maintaining a large single-family home.

When looking at where the majority of our non-residents are coming from – the northeastern U.S., as well as Canada and the U.K., Sarasota Real Estate is a great value/investment in comparison to their home communities, with an incredible bonus of the extraordinary Sarasota lifestyle. Luxury buyers are no longer just seeking prime locations, lifestyle has become a primary factor in where to make their investments. The ultra-wealthy have also become increasingly mobile with easy global travel and tech advances allowing them to work remotely, allowing them to spend more time in their preferred location.

The Federal Reserve released a recent report identifying that there are 12.6 million U.S. households that rank in the nation’s top 10% level of wealth, defined as having more than $1.2 million in total assets. Market analysts used this information to assert that there are more potential wealthy buyers than ever before.

One challenge that exists for us in the Sarasota Real Estate Market is that buyers of premium properties typically have the benefit of time and money to wait to find the perfect home. On the other side of the coin, they are often not under pressure to have to sell another home before closing on a new one. So will these wealthy prospects wait for the yet to be completed new buildings to be developed, or will they want to take advantage of the excellent existing condos that have been put on the market during the last year but have not yet been sold, and choose to renovate so that they can move sooner rather than later?

For a snapshot of data from the Sarasota Real Estate Market as it compares to previous year and also state and national statistics, see below:

Sales

  • Total Sarasota Real Estate Market dollar volume of $465.3 million in April increased by $43.4 million from the prior year, and decreased $35.2 million from March.
    • Broken down, single-family dollar volume increased $23.7 million or 8% compared to the prior year and condo sales dollar volume was up $38.3 million or 32% from the prior year. A very healthy status of the market.
  • The number of properties sold in April including both single family and condominiums was 1,200, which was 20 less than March and 26 more than a year ago.
    • Florida’s single-family sales decreased 4.1% and condo sales were up 9.2% compared to prior year.
    • S. single-family sales declined 1.6% and condo sales increased 1.6%.
  • The 2018 monthly year to date average for sold properties is 1,040 whereas the 2017 monthly average was 978 for the year and in 2016 the monthly average was 952.
  • Of the closed sales in Sarasota last month 54 were for over $1,000,000 or 4.5% of total sales, 39 were houses and 15 were condominiums. Though only a small number of units in comparison to total, it is interesting to note that data that I reviewed showed that nearly 25% of total sales volume in the Sarasota Real Estate Market in April was from the luxury market.
  • All cash sales in Sarasota continue to be strong with 37% of single-family and 64% of condo sales closed without a mortgage. By comparison, national all cash transactions were 21% of total sales.
  • Total pending sales of 1,134 properties that went under contract during April decreased by 101 transactions from the same month last year.
    • As mentioned earlier in this report, the luxury market experienced a notably higher pending contract rate than previous year.
    • S. pended sales for all housing types fell by 2.1% compared to prior year.
    • Florida’s total pending increased by 2%.
  • For the first four months of 2018 we have averaged 1,257 pending contracts signed. The monthly average of new pending sales in the Sarasota Real Estate Market in 2017 was 1,043 vs. 1,005 in 2016.

Prices

  • In April, Sarasota’s single-family homes were sold at a median price of $285,000 vs. $272,500 a year ago, a 5% increase.
  • The 2017 monthly median price average for houses sold in Sarasota was $267,043 and $249,943 in 2016.
    • In April, Florida median price for single-family homes was $253,895, an 8.1% increase over last year.
    • The national median price for existing homes grew by 5.5% to $259,900.
  • Condominium median sale price was $235,000 in April vs. $215,000 in April 2017.
  • The 2017 monthly condominium median average is $225,585 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $190,000 a 10.5% increase over April 2017.
    • S. median condo price grew 3.4% in April to $242,500.
  • The average sale price for houses in Sarasota was $410,122 in April vs. $382,073 a year ago.
  • The past year’s monthly average price for houses sold was $370,708 vs. $346,232 in 2016.
  • Sarasota’s condominiums sold for an average price in April of $350,311 vs. $312,361 a year ago.
  • The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
  • Overall properties sold for at 95% of the list price, a consistent ratio on a regular basis. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Inventory

  • Currently there is available inventory of 4,289 properties for sale in Sarasota County, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • Total available inventory in the Sarasota Real Estate Market has decreased by 70 properties from March, 484 less properties than in April 2017, and 112 than the end of 2017.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 4.6 month’s supply of condominiums, both under the 6-month level considered a balanced market, and indicating that we are still in a seller’s market.
    • Florida currently has 3.8 months of single-family inventory and 5.8 months of condominiums.
    • S. inventory of all housing types is sitting at just 4.0 months of supply.
  • Sarasota County had 1,236 new listed properties in April. The local market averaged 1,147 new listings per month in 2017, and in 2016 it was 1,005.
  • Of the total new listings the past month, 72 properties were listed over $1,000,000 or only 6%.

Statistics on new home construction in the Sarasota Real Estate Market is difficult to obtain, but one recent report noted that more than 900 new home starts in 2017 occurred in Lakewood Ranch alone. I drove through Lakewood Ranch this week to visit some of the new communities underway and continue to me amazed at the seemingly endless new home building. Add Palmer Ranch, The West Villages and other planned communities, along with homebuilder confidence being near an all-time high, and it appears that the new inventory stream will help to maintain a steady balance between supply and demand.

Sarasota has been dubbed a “lifestyle market” where beach, cultural arts and entertainment, culinary offerings, golf and other sports activities are strong influencers for buyers. While our region used to be known as a second home market, we are evolving to a more primary market, not only for the lifestyle aspects, but also for its relative value where buyers can enjoy more space and luxury design elements for their investment.

Consumer confidence remains quite high as a result of a strong jobs market and healthy economy. There appears to be buyer resiliency with little effect on demand from rising interest rates and the prospect of additional increases expected this year. Demand from buyers interested in the Sarasota Real Estate Market is still outpacing supply in virtually all price points and housing segments. All of these market fundamentals suggest that our region will continue its steady expansion.

Economists have estimated that more than 1,000 people move to Florida every day. With Sarasota’s unique lifestyle attributes and affordability when compared to many other coastal communities, it appears that without a significant global geopolitical or other unforeseeable disruption, our region is poised to maintain a healthy pace of sales and price growth, and also inventory balance for the year ahead.

Having assisted clients in the region for more than 35 years, I have the knowledge and experience to guide my customers through the labyrinth of searching for or marketing and selling a property in a relaxed and rewarding manner.

As always, I look forward to serving you, your family and friends with their real estate needs.

Sarasota’s Finest Properties April Featured Listing

Sarasota Real Estate

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Moulton Sarasota Real Estate Report – Market Scores with Solid Spring

Sarasota Waterfront

The Moulton Sarasota Real Estate Report – March 2018

Sarasota Real Estate Market Scores with Solid Spring

The Sarasota Real Estate Market’s spring selling season is winding down, but some of our strongest months are still ahead. Traditionally, May, June and July are when buyers who viewed properties in our peak season make their offers and close on their new properties. So far this year, sales have been 8.7% higher than 2017’s first quarter, and based on the traffic that I have seen, I believe our market will not only maintain its energy and continue to produce growth in sales and prices, but also retain our balanced conditions.

As stated in past reports, I keep a close eye on the luxury market, which is defined as properties above the $1 million mark. In March, the Sarasota Real Estate Market saw 42 single-family homes and 38 condos change hands in the luxury price tier. 67 homes and 26 condos at the price point came to market, essentially maintaining status quo as far as available properties are concerned. In the first quarter of 2018, million dollar transactions were about 6.7% of total sales in the Sarasota Real Estate Market. It is important to note that the luxury market tends to have less peaks and valleys of seasonal demand when compared to lower and mid-market tiers.

Much of the country is facing severe shortages of inventory, and despite last month’s slide in new listings in all price points in the Sarasota Real Estate Market, the region is still in a stable position with more than four-months of single-family homes and nearly five-months of condos available for sale. It is not entirely unusual to see a softening of new inventory coming to market at the end of season, as sellers often take their properties off the market to reassess pricing, make repairs that were obstacles to buyers, to hold through the summer and await the next peak tourist season, or because they themselves were not able to find the “move-up” or “move-on” property they were seeking.

Because the Sarasota Real Estate Market remains a seller’s market, meaning having less than six-months of available inventory which is the presumed balance point between buyers and sellers, prices continue to grow. Single-family prices increased 9.3% and condos 4.3% from prior year, and while that sounds like fairly hefty growth, prices are still within range of the pace of growth that Florida and the rest of country are experiencing. In addition, though we are closing in on pre-recession home price levels, there is no need for alarm. This region experienced such dramatic loss of housing values that I believe there is still plenty of room for prices to grow before any concern is warranted.

The pace of new pending contracts signed last month leveled off compared to prior year, but for the quarter is still nearly 5% ahead of 2017. This should help to keep the pace of sales in the next couple of months on track for market growth compared to prior year through the summer.

For a snapshot of data from the Sarasota Real Estate Market as it compares to previous year and also state and national statistics, see below:

Sales

  • Total Sarasota Real Estate Market dollar volume of $500.5 million in March increased by $85.1 million from the prior year, and increased $132.2 million over the prior month.
    • Broken down, single-family dollar volume increased $41.9 million or 15% compared to the prior year and condo sales dollar volume was up $43.2 million or 30% from the prior year.
  • The number of properties sold in March including both single family and condominiums was 1,220, which was 336 more than February and 23 more than a year ago, representing a modest 2% growth in number of closings in the month over last March.
    • Florida’s single-family sales decreased 3.5% and condo sales were down 1.8% compared to prior year.
    • U.S. single-family sales declined 1% and condo sales fell 3.2%.
  • The 2017 monthly average of total sales in Sarasota was 978 and in 2016 the monthly average was 952.
  • Of the closed sales in Sarasota last month 80 were for over $1,000,000 or 6.6% of total sales – 42 were houses and 38 were condominiums.
    • Florida and U.S. $1 million sales were about 3% of total sales in comparison.
  • All cash sales in Sarasota continue to be strong with 38% of single-family and 65% of condo sales closed without a mortgage. By comparison, national all cash transactions were 20% of total sales.
  • Total pending sales of 1,379 properties that went under contract during March increased by 8 transactions from the same month last year.
    • U.S. pended sales for all housing types fell by 3% compared to prior year.
    • Florida’s total pending also dropped about 3%.
  • The monthly average of new pending sales in the Sarasota Real Estate Market in 2017 was 1,043 vs. 1,005 in 2016. For the first three months of 2018 we have averaged 1,298 pending contracts signed.

Prices

  • In March, Sarasota’s single-family homes were sold at a median price of $287,053 vs. $262,621 a year ago, a 9% increase.
  • The 2017 monthly median price average for houses sold in Sarasota was $267,043 and $249,943 in 2016.
    • Florida median price for single-family homes was $250,800, an 8.2% increase over last year.
    • The national median price for existing homes grew by 5.8% to $250,400.
  • Condominium median sale price was $240,000 in March vs. $230,000 in March 2017.
  • The 2017 monthly condominium median average is $225,585 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $183,000 a 7% increase over March 2017.
    • U.S. median condo price grew 4.8% in March to $236,100.
  • The average sale price for houses in Sarasota was $412,904 in March vs. $350,055 a year ago.
  • The past year’s monthly average price for houses sold was $370,708 vs. $346,232 in 2016.
  • Sarasota’s condominiums sold for an average price in March of $405,745 vs. $341,458 a year ago.
  • The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
  • Overall properties sold for at 94.9% of the list price. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Inventory

  • Total available inventory in the Sarasota Real Estate Market has decreased by 646 properties from February, 778 less properties than in March 2017, and 968 more than the end of 2017.
  • Currently there is available inventory of 4,369 properties for sale in Sarasota County, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 4.8 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.8 months of single-family inventory and 5.9 months of condominiums.
    • U.S. inventory of all housing types is sitting at just 3.6 months of supply.
  • Sarasota County had 1,359 new listed properties in March, the local market averaged 1,147 new listings per month in 2017, and in 2016 it was 1,005.
  • Of the total new listings the past month, 93 properties were listed over $1,000,000.

The Mortgage Bankers Association recently reported that the 30-year fixed mortgage rate was at its highest since August of 2013. However, even at 4.58% they said that mortgage applications were up 11% compared to last year at this time. The generally solid economic news, growth of homeowner equity resulting from prices rising across the country and steady investment growth, leads experts to opine that they do not anticipate the rising interest rates to diminish demand for housing.

Last month’s survey of home builders once again showed confidence in continuing a steady pace of both new multi-family and single-family development. With a steady in-flow of new product in the Sarasota Real Estate Market, price growth will remain moderate as demand still exceeds both existing available inventory and pace of new housing completions. In fact, the pace of home price increases is reported to be back on a similar track as was seen for the 15-year period preceding the financial crisis, when annual growth averaged 6.1%.

As the traffic and high-season pace of activity in the Sarasota area begins to ebb, I want to remind all of my non-resident readers that this area has so very much to offer in the “softer” shoulder and summer seasons. The wide variety of performing arts, stunning exhibits at our galleries and facilities such as Marie Selby Botanical Gardens’ Andy Warhol feature and the ever-thought provoking Embracing our Differences on the downtown Bayfront, endless activities on the water and at the beaches, beautiful golf courses and so much more make this one of my favorite times of year. Consider coming to see for yourself why investing in the lifestyle that is Sarasota is something truly like none other – every season of the year!

Having assisted clients in the region for more than 35 years, I have the knowledge and experience to guide my customers through the labyrinth of searching for or marketing and selling a property in a relaxed and rewarding manner.

As always, I look forward to serving you, your family and friends with their real estate needs.

This Month’s Featured Listing from Michael’s Portfolio:

Sarasota Real Estate

View all of Michael’s Listings HERE

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Sarasota Real Estate Market’s Spirited Spring Selling Season

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – February 2018

Sarasota Real Estate Market’s Spirited Start to Spring Selling Season

After strong pending sales in the Sarasota Real Estate Market in January, it came as little surprise that February activity was robust. Sales continued to escalate over prior year posting particularly strong numbers in the $1 million+ tier, where most of my business occurs.  The sales at this level tend to be low in numbers of transactions, nevertheless, the super-luxury condominiums just completed and ready for occupancy in several new downtown projects once again not only lifted numbers of units sold, but also contributed to total dollar volume of the condo market growing by more than 61% over prior year.

Across the rest of the U.S., sales in February were not nearly as spirited. Experts are leaning towards blaming it on an unseasonably cold January causing growth to flatten, especially in the Northeast and Midwest regions. It is likely that sales reports in the next few months on the national stage may stay restrained as a result of the major late-winter storms all across the nation.

Inventory of all types of units in The Sarasota Real Estate Market contracted a bit, and was especially noticeable in the luxury market where there are now 10.2% fewer million dollar homes and 30.6% less condos available. Granted, there are still almost 500 homes priced over $1 million and 134 condos, but the narrowing of supply here is good news for sellers who have seen long listing to sale periods. Recent changes in inventory are beginning to shorten the timing for a transaction to close.

February’s pending sales once again were well ahead of this time last year, setting us up for another month or two of excellent closing activity ahead, especially in the condominium market where pending sales grew more than 21% over prior year.

Homebuilders here and around the country are lamenting scarcity of buildable lots (regulations and lack of infrastructure two key issues), rising building costs (product, labor and municipality fees), and most importantly, a persistent shortage of qualified labor as key causes of not being able to keep up with new home demand. For the first two months of 2018 Sarasota’s builders have pulled 31% fewer new single-family home permits. The multi-family market is not seeing the same declines, but with demand staying strong for new homes, especially in the moderate price points, we will keep seeing increases in prices as inventory of new homes remains limited.

In reviewing local, state and national market statistics and analyst reports, the following are some of the highlights of the data:

Sales

  • Total Sarasota Real Estate Market dollar volume of $358.6 million in February increased $75.4 million from prior year, and increased $11 million over the prior month.
    • Broken down, single-family dollar volume increased 12% compared to prior year and condo sales dollar volume was up 62%, fueled by another month of new construction condo closings.
  • The number of properties sold in February including both single family and condominiums was 884, which was 29 more than January and 90 more than a year ago, representing a 11% overall growth in number of closings in the month over last February.
    • Florida’s single-family sales increased 3.3% and condo sales grew 6.4% over prior year.
    • S. single-family sales increased 1.8% and condo sales fell 4.9%.
  • The 2017 monthly average of total sales in Sarasota was 978 and in 2016 the monthly average was 952.
  • The majority of my sales occur in the $1 million and above category, so I watch this tier closely. Of the closed sales in Sarasota last month 62 were for over $1,000,000 or 7% of total sales – 34 were houses and 28 were condominiums. This represented 63% more sales over $1 million compared to the same month in 2017.
    • Florida’s $1 million sales were 3.1% of total sales.
  • All cash sales in Sarasota continue to be strong with 46% of single-family and 65% of condo sales closed without a mortgage. By comparison, national all cash transactions were 24% of total sales.
  • Total pending sales of 1,271 properties that went under contract during February increased by 108 from the same month last year, a 9% increase, with homes showing a 3.5% increase and condominiums up 21% from prior year.
    • S. pended sales for all housing types fell by 4.1% compared to prior year.
    • Florida’s total pending were just about the same as last year.
  • The monthly average of new pending sales in the Sarasota Real Estate Market in 2017 was 1,043 vs. 1,005 in 2016. For the first two months of 2018 we have averaged 1,257 pending contracts signed.

Prices

  • In February, Sarasota’s single-family homes were sold at a median price of $272,500 vs. $257,500 a year ago, 6% higher.
  • The 2017 monthly median price average for houses sold in Sarasota was $267,043 and $249,943 in 2016.
    • Florida median price for single-family homes was $246,500, a 9.6% increase over last year.
    • The national median price for existing homes grew by 5.9% to $243,400.
  • Condominium median sale price was $219,000 in February vs. $230,900 in February 2017.
  • The 2017 monthly condominium median average is $225,585 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $179,500 a 7.2% increase over February 2017.
    • S. median condo price grew 5.7% in February to $227,300.
  • The average sale price for houses in Sarasota was $398,148 in February vs. $389,011 a year ago.
  • The past year’s monthly average price for houses sold was $370,708 vs. $346,232 in 2016.
  • Sarasota’s condominiums sold for an average price in February of $419,299 vs. $296,029 a year ago, likely attributable to the recently completed new luxury buildings in downtown.
  • The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
  • Single-family homes sold at 95.5% of list price, and condominiums sold at 95% of the list price. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Inventory

  • Total available inventory in the Sarasota Real Estate Market has increased by 213 listed properties from January, but has 169 less properties than in February 2017 and 614 more than the end of 2017.
  • Currently there is available inventory of 5,105 properties for sale, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.7 months of single-family homes inventory and 5.7 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.9 months of single-family inventory and 5.9 months of condominiums.
    • S. inventory of single-family homes is at 3.4 months and condos reportedly at 3.7 months.
  • Sarasota County had 1,613 new listed properties in February, averaged 1,147 new listings per month in 2017, and in 2016 it was 1,005.
  • Of the total new listings the past month, 134 properties or 8% were listed over $1,000,000.
  • 380 or 23% of the new listings the past month were listed for between $400,000 and $600,000.

There is some concern that rising interest rates may slow sales and result in lower prices, KCM mortgage rate increase vs prices chartbut historically that has not been the case. In the graph to the right, Keeping Current Matters analyzed Freddie Mac data and found that in the last six times interest rates rose more than 1%, the results were actually very different than we would think intuitively.

Actually, the laws of supply and demand far outweigh small increases in interest rates. As I wrote in last month’s report, interest rates have been above 5% for 38 of the last 46 years, so I see no need to panic as we slowly move towards the 5% rate expected by early 2019.

Market analysts are expecting overall sales to increase 4.8% in 2018 and prices to grow 5%, though in The Sarasota Real Estate Market I see exceeding these projections due to the vigorous development of new homes and multi-family projects along with the strong demand.  For nearly 10 years this region saw only minimal new construction. Today’s robust building activity around the region is not able to catch up with the scarcity of development since the market collapse in 2008. There is still room to add new product based on builder reports on buyer traffic at their new development and, as long as demand outpaces supply we will see increased growth in prices.

With the region’s strong jobs market, rising wages and household wealth, attractiveness to buyers from communities around the country that are suffering from unfavorable tax conditions, our strong appeal to the international home buyer market, and the many quality of life benefits that Sarasota offers, I believe that our housing market will continue its spirited activity in the months ahead.

If you have been considering listing your property, I cannot tell you how strongly I feel that entering the marketplace at this time of year is most advantageous in that you’re capturing the greatest number of eyes during peak season.

At the same time, if you are a buyer, with prices expected to maintain a healthy pace of appreciation, interest rates set to increase and inventories anticipated to grow only gradually, now is a prime time to select something from the beautiful properties we currently have available in the region.

Seller or buyer, I am eager to assist you in achieving your desired outcomes!  Don’t hesitate to call to share your goals and I will help you to determine the best plan for your unique needs.

Michael’s Featured Listing:

Beach Walk Longboat Key

View All Michael’s Listings HERE

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Sarasota, FL Real Estate Market was Jumpin’ in January 2018

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – January 2018

Sarasota Real Estate Market was Jumpin’ in January!      

While the rest of the country saw fewer sales in January, moderate price escalation and not much movement in inventory, The Sarasota Real Estate Market was jumping with activity. A very active December that had strong pending contracts ready in the hopper, resulted in another positive month for our region with total sales rising more than 18% from last January. The U.S. on the other hand saw the largest dip in sales, 4.8% compared to prior year, in more than three years according to the National Association of Realtors.

The Sarasota Real Estate Market once again also recorded a more than 12% increase in pending contracts signed in January compared to prior year, compared to a statewide increase of only 2%. Nationally, pending sales experienced a considerable drop of 3.8% compared to January 2017. Market experts believe the decline may have been related to severe cold in northern markets last month.

As my subscribers know, monitoring pending contracts is one of the best ways to forecast sales in the month or two ahead. There has been a great deal of product under construction, especially in the Sarasota city core, so I believe the upward trend will continue for several more months before tapering off. And based on my own buyer activity, I am confident these new offerings in the Sarasota Real Estate Market will have plenty of qualified purchasers to absorb the new inventory.

Home builder confidence remains very high in the Sarasota Real Estate Market and nationally. With substantial new building activity, it is expected that sales nationally will begin to return to a growth pattern. In fact, 2017’s new home permits in the U.S. increased 9.7% over 2016, Florida’s new single-family home permits grew 12.9%, and the Sarasota County Economic Report indicated that in 2017 building permits increased 23%.

Inventory in the Sarasota Real Estate Market and across the U.S. remains tight in the lower price points, which is affecting overall growth in sales. However, in the upper and luxury price ranges – above $600,000 – inventory is stable with new listings in premier locations and in excellent condition coming to market at a steady pace this season. With active buyers in the marketplace seeking luxury and ultra-luxury properties (above $1 million), where most of my transactions occur, business is strong and we are beginning to see shortening of list to sale periods, narrower negotiations on price and more showing activity on prime properties.

The Sarasota Real Estate Market continues to have a large number of transactions closed without a mortgage. Compared to national all-cash sales of 22% of total, our region hit 50% in January. Most of this is at the luxury end of the market where buyers have seen considerable growth in personal wealth in both home equity and stock and bond market gains, providing them the advantage of being able to move to closing on their prized property more quickly.

Following are local, regional and national statistics for January 2018:

Sales:

  • Total Sarasota Real Estate Market dollar volume of $347.6 million in January increased $71.5 million from prior year and increased $48.9 million over the prior month of December 2017. This Increase is mainly attributable to significant new condominium construction completions and closings in January.
    • Broken down, single-family dollar volume increased 13% compared to prior year and condo sales dollar volume was up 64% mainly due to the closings of sales of the new condominium projects.
  • The number of properties sold in January including both single family and condominiums was 855 which was 121 less than December and 133 more than a year ago, representing a 18% overall growth in number of closings in the month over last January.
    • Florida’s single-family sales decreased 1.3% and condo sales grew 5.9% over prior year.
    • U.S. single-family sales decreased 4.8% and condo sales fell 4.6%.
  • The 2017 monthly average of total sales was 978 and in 2016 the monthly average was 952.
  • The majority of my sales occur in the $1 million and above category, so I watch this tier closely.  Of the total closed sales in Sarasota last month 57 were for over $1,000,000 or 9%, 22 were houses and 35 were condominiums.
    • Florida’s $1 million sales were 3.5% of total sales.
    • Sales of over $1 million nationally represented only 2.5% of the market.
  • All cash sales in Sarasota continue to be strong with 43% of single-family and 60% of condo sales closed without a mortgage.  By comparison, national all cash transactions were 22% of total sales.
  • Total pending sales of 1,243 properties that went under contract during January increased by 135 from the same month last year, a 12% increase, with homes showing a 4.7% increase and condominiums up a remarkable 27% from prior year.
    • U.S. pended sales for all housing types fell by 3.8% compared to prior year.
    • Florida’s total pending sales grew just 2% higher over last year.
  • The monthly average of new pending sales in the Sarasota Real Estate Market in 2017 was 1,043 vs. 1,005 in 2016.

Prices:

  • In January, Sarasota’s single-family homes were sold at a median price of $275,900 vs. $250,000 a year ago, 10.6% higher.
    • The 2017 monthly median price average for houses sold in Sarasota was $267,043 and $249,943 in 2016.
    • Florida median price for single-family homes was $240,000, a 9% increase over last year.
    • The national median price for existing homes grew by 5.7% to $241,700.
  • Condominium median sale price was $238,000 in January vs. $239,900 in January 2017.
    • The 2017 monthly condominium median average is $225,585 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $179,900 an 11.7% increase over January 2016.
    • U.S. median condo price grew 7.1% in January to $231,600.
  • The average sale price for houses in Sarasota was $365,593 in January vs. $352,507 a year ago.
    • The past year’s monthly average price for houses sold was $370,708 vs. $346,232 in 2016.
  • Sarasota’s condominiums sold for an average price in January of $484,342 vs. $321,329 a year ago.
    • The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
  • Single-family homes sold at 95% of list price, and condominiums sold at 96.3% of the list price. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market has increased by 401 listed properties from December, but has 246 less properties than in January 2017.
    • Currently there is available inventory of 4,802 properties for sale, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.5 months of single-family homes inventory and 5.5 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.9 months of single-family inventory and 5.9 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 3.4 months.
  • Sarasota County had 1,790 new listed properties in January and averaged 1,147 new listings per month in 2017 and in 2016 it was 1,005.
  • Of the total new listings the past month 144 properties or 8% were listed over $1,000,000.
  • 456 or 25% of the new listings the past month were listed for between $400,000 and $600,000.
  • 1,190 or 67% of the month’s new listings were listed for under $400,000.

A recent report from The Conference Board stated that consumer confidence in February was the highest that it has been since February 2000. Despite the recent fluctuations in the stock market, Americans believe the strong jobs market and encouraging business climate will allow their personal wealth to grow this year.

With January’s 30-year conventional fixed rate mortgage rate of 4.03%, mortgage rates are still at historically low levels and many buyers continue to take advantage of the favorable conditions. Though rate increases are expected in 2018, economists are projecting only a modest increase of up to 5% by year-end. For comparison’s sake, mortgage rates have been above 5% for 38 of the last 46 years.

The Sarasota Real Estate Market has a nearly balanced market favoring neither a buyers or sellers, high-quality new homes and condominiums are being completed and available for occupancy, attractive and well located existing inventory is coming to market, there is strong household equity growth and moderate increases in interest rates, there is room to increase sales and median prices and inventory to continue the sustained growth that our market has seen these last few years.

Based on my reading of the Sarasota Real Estate Market conditions, as well as the general confidence of U.S. consumers, I continue to believe that the region will maintain its positive momentum and activity will be “jumpin’” for the months ahead.

Michael’s Featured Listing:

Longboat Key Waterfront HomeView all Michael’s listings HERE

 

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Moulton Sarasota Real Estate Report – December 2017 – Out Like a Lion

sarasota real estate market

Moulton Sarasota Real Estate Report

December 2017 – Out Like a Lion

Still deep in the middle of winter, this weather idiom seemed appropriate to describe the Sarasota Real Estate Market’s December performance. With strong growth in sales, prices and pending sales, we did not gently ease into 2018 – we came roaring in!

Recent reports from the Sarasota County Finance Department helped to support my opinion that 2018 will continue to show strong activity in the real estate market. Two highlights were that unemployment fell 15% last year and building permits pulled in December were 50% greater than the same month last year. Much of the new employment occurred in the construction industry. Schools are making every effort to help to train young people in the building trades, but challenged to keep up with demand.

The new tax code is expected to incent small business formation, which the local home building community hopes will grow the talent pool available to meet the ever-rising demand for new construction and renovations.

Michael Saunders recently spoke to a group of luxury realtors previewing a stunning new property. She said buyers, especially at the high-end where the majority of my activity takes place, are seeking “perfection,” and they’re willing to wait for it. Most buyers of premium properties close their transactions without a mortgage and have funds immediately available when the time comes to purchase their “perfect” property.

As new listings of existing homes continue to fall short of demand for high quality construction and finishes in the most coveted locations, more luxury buyers are looking to new construction – whether in a new community or razing an older home so that they can build exactly what they want, where they want it. However, they are having to wait longer for construction to take place and finish due to the lack of available tradespeople in our area.

The other strong dynamic driving much of the demand is the new-family formation in the millennium population. While many would say that Sarasota is an “older” community, recent census reports revealed that Sarasota saw the 9th largest growth in percentage of millennial population in the country, just barely behind expected cities like Austin and San Diego. Millennials now represent nearly 16% of our MSA’s population, and many if not most, were born and raised here.

This group, ages 21-37, is eclipsing the baby-boomers and now represents two-fifths of the working population in the US. These 75 million Americans are now of age and at a point in their professional careers where they are ready to purchase homes. They tend to prefer urban settings and short commutes to work and schools, helping to explain the considerable multi-family infill by developers and renovation of older cottages that we are seeing in the city of Sarasota.

Lest those who prefer not to see any new growth should be alarmed by the strong Sarasota Real Estate Market, that Sarasota County report that I mentioned earlier showed that in 2017 the area saw just a 2% increase in population. The traffic, including increased commercial vehicles on the roads, is in part due to an increase in part-time residents, but is more a result of a strong economy and appears less to be blamed on swelling population.

With the robust economy, increase in household wealth via greater home values and stock market investments, our residents are spending more – on household items, home improvement, dining out, shopping and entertainment. This spending is creating those jobs that brought our unemployment to historic lows, has encouraged fantastic new restaurants and amazing food markets, some of the best healthcare in the country, new retail options and year-round exceptional quality performing and visual arts…further enhancing the region’s quality of life.

Below is a collection of data gathered from a number of local, state and national reports that I monitor.

Sales:

  • Total Sarasota Real Estate Market dollar volume of $401.5 million in December increased $89.7 million from prior year and increased $13.7 million over the prior month.
    • Broken down, single-family dollar volume increased 13% compared to prior year and condos sales dollar volume was up 64%, as with last month, mainly due to the closings of sales of the new large condominium building, The Vue, in downtown Sarasota.
  • The number of properties sold in December including both single family and condominiums was 966 which was 92 more than November and 51 more than a year ago.
    • Florida’s single-family sales increased 2.6% and condo sales grew 6% over prior year.
    • U.S. single-family sales decreased 2.6% and condo sales were up only 1.7%.
  • The 2017 monthly average of total sales is 978 vs last year the monthly average was 952, a similar monthly pace.
  • Of the closed sales 87 were for over $1,000,000 or 9%. 30 were houses and 47 were condominiums.
    • The increase over prior year for homes sold over $1 million was 36.4% and condos were a remarkable 327% greater (again likely the result of completion of The Vue.)
  • All cash sales in Sarasota continue to be strong with 40% of single-family and 63% of condo sales closed without a mortgage.  This percentage consistently exceeds trends for Florida and national cash sales (20% in December.)
  • Total pending sales of 895 properties that went under contract during December increased by 88 from the same month last year, an 11% increase.
    • U.S. pended sales for all housing types grew by just .5% compared to prior year.
    • Florida’s total pending sales were less than 1% higher than last year.
  • The monthly average of new pending sales in the Sarasota Real Estate Market this year is 1,043 vs. 1,005 in 2016.

Prices:

  • In December, Sarasota’s single-family homes were sold at a median price of $285,000 vs. $264,500 a year ago, 7.8% higher.
    • The 2017 monthly median price average for houses sold in Sarasota was $267,043 vs. $249,943 last year.
    • Florida median price for single-family homes was $244,185, an 8% increase over last year.
    • The national median price for existing homes grew by 5.8% to $248,100.
  • Condominium median sale price was $250,000 in December vs. $217,000 in 2016.
    • The 2017 monthly condominium median average is $225,585 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $180,000 a 7.8% increase over December 2016.
    • U.S. median condo price grew 6.4% in December to $236,500.
  • The average sale price for houses in Sarasota was $382,597 in December vs. $350,103 a year ago.
    • The year’s monthly average price for houses sold is $370,708 vs. $346,232 last year.
  • Sarasota’s condominiums sold for an average price in December of $480,239 vs. $321,329 a year ago, again attributable to new The Vue luxury condominium building closings.
    • The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 last year.
  • Single-family homes sold at 95.5% of list price, and condominiums sold at 95.7% of the list price. The year to date average for all properties sold is 95.6% of list price at the time of contract vs. the original list price.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market has increased by 55 listed properties from November, as there typically is an increase as peak season approaches.
    • Since January 1st, inventory has fallen by 194 properties or 4%.
    • Currently there is available inventory of 4,401 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 5.3 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.6 months of single-family inventory and 5.6 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 3.2 months, 10.3% less than a year ago and the lowest since tracking of the data began in 1999.
  • Sarasota County is averaging 1,147 new listings per month and in 2016 it was 1,259.
  • Of the total new listings the past month 11% or 122 properties were listed over $1,000,000.
  • 24% or 276 new listings the past month were listed for between $400,000 and $600,000.
  • 65% of the month’s new listings were listed for under $400,000.

Distressed Sales:

These are sales that are short sales, selling below the underlying mortgage amount, or foreclosed properties, those selling by the lender. This part of the market is becoming so insignificant that I no longer plan on reporting about it in the future.

  • For 2017 of the 11,734 properties sold only 453 or 4% were of a distressed sale nature.
  • 368 sales were houses and 85 were condominiums.
  • 289 houses and 73 condominiums were foreclosed properties.
  • 79 houses and 12 condominiums were short sales. Fortunately for the overall economy this process is finally in the country rear view mirror.
  • For the most part the prices of these transactions are on the very low end of our overall local market.

Bloomberg News recently reported, “America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.” This seems to be the mantra throughout the real estate expert and economic analyst spheres, as nearly every report released in the last month has said the same.

The dollar has weakened some against key international markets, which is expected to keep our foreign buyers investing in the Sarasota Real Estate Market. It helps our buyers and sellers to have the powerful global relationships that Michael Saunders & Company has forged.

The robust and growing US economy, strong demand from buyers and somewhat weak supply will shape the Sarasota Real Estate Market in the year ahead. High consumer confidence as we have now tends to translate to a strong real estate market.

If you have been considering listing your property, I cannot express how strongly I feel that entering the marketplace at this time of year is most advantageous in that you’re capturing the greatest number of eyes during peak season.

At the same time, if you are a buyer, with prices expected to maintain a healthy pace of appreciation, interest rates set to increase and inventories anticipated to grow only gradually, now is a prime time to select something from the beautiful properties we currently have available in the region.

Seller or buyer, I am eager to assist you in achieving your desired outcomes!  Don’t hesitate to call to share your goals and I will help you to determine the best plan for your unique needs.

Michael’s Featured Listings:

401 S Palm collage2

Elden Savoy collage2

View all Michael’s Listings HERE

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Moulton Sarasota Real Estate Report – What Might a 2018 Crystal Ball Tell Us?

2018 Sarasota Real Estate Market

The Moulton Sarasota Real Estate Report – November 2017

If We Had a 2018 Crystal Ball What Might it Tell Us?

The 2017 Sarasota Real Estate Market appears to be on track to exceed prior year sales by as much as 10% if pending sales in October and November close as expected.  With another leap in contracts signed but not yet closed in December, it seems the region is well positioned to maintain its healthy expansion into 2018.

A stabilized market for an extended period signals that we are no longer in a market recovery.  Instead the Sarasota Real Estate Market is vibrant yet controlled, vigorous but without signs of fragility, and flourishing due to a number of hyper-local as well as national and global effects.  Completely different from the ride up to the market crash, consistent improvement without the toxic market volatility has placed us in a position to allow for steady growth.

Economists and market experts are in agreement that sales, prices and new construction are all expected to grow in the coming year.  What is influencing the positive outlooks?  Nothing that we haven’t reported in this monthly report throughout the year…but all worth mentioning again as we prepare to enter a New Year.

  • Interest rates are expected to remain at historically low levels. There are conflicting opinions on whether there will be three or four fed rate hikes, but none believe rates will reach 5% at least before the end of next year.
  • Unemployment rates are at a 17-year low and wages are rising giving eager homebuyers the confidence to take the plunge.
  • The country’s economic growth is spurring consumer confidence, which in turn fuels the real estate market.
  • Household wealth has expanded in part due to the healthy real estate market, but also the surging stock market and personal investments, building homeowner equity and available funds for real estate investment.
  • A large new generation of millennials is moving from rental to homeownership. They are expected to absorb considerable inventory of new and existing homes.
  • Reticent sellers afraid they couldn’t find their “move-up” dream are expected to finally list their properties, as a vast number of new homes will become available and recently updated and modernized existing homes come to market.

A recent survey by the National Association of Realtors found that the number of homeowners believing that now is a good time to sell is 14% higher than this time last year.  Though we hoped the Sarasota Real Estate Market would have seen more easing of tight inventories in certain prized locations and price-points, the listings activity did not yet bring us to six-month supply, which is considered a well-balanced market.

Despite still being in a seller’s market (and expected to stay that way at least for the first half of the year,) and with an average sale at 95% of list price, buyers are optimistic.  The volume of calls that I am receiving from sellers who had hesitated listing their properties is high, so I see improving inventory conditions ahead.

Prices this year across the country have grown 5-6%.  In the Sarasota Real Estate Market we have seen several months of double-digit year-over-year growth, mostly a result of tight inventories.  As our listings grow, price appreciation is likely to soften a bit, further reinforcing market stability.

Homebuilders learned some tough lessons in the real estate market crash as they were left with loads of excess inventory and undeveloped land.  Though homebuilder confidence is nearly at an all-time high, the business model has turned from who can have the biggest market share, to profitability and balance sheet fortitude.

While builders have yet to meet demand, the pipeline is encouraging and pacing ahead of prior year production.  Concerns for too few “starter homes” and affordable options are expected to persist, as there is just too much demand for builders in the mid-market and luxury new homes.

My crystal ball is obviously telling me that, without considerable unforeseen disruptive events, we are headed for another stellar year in the Sarasota Real Estate Market!

But 2017 isn’t over yet!  Following are the results of the busy November Sarasota Real Estate Market and comps to some state and national data.  Based on the strong activity in November and continuing growth in pending contracts signed in the month, I see this year ending with healthy growth of sales and median prices, along with moderate volume of new listings and a local market primed for a Happy New Year!

Sales:

  • Total Sarasota Real Estate Market dollar volume of $387.8 million in November increased $118.8 million from prior year and increased $73.6 million over the prior month.
    • Broken down, single-family dollar volume increased 45% compared to prior year and condos sales dollar volume was up 92.7%.
  • The number of properties sold in November including both single family and condominiums was 874 which was 20 more than October and 48 more than a year ago.
  • Single-family home sales fell by 3.3% in November, but condo sales saw a remarkable 26% growth, much as a result of the new bayfront The Vue project completion.
    • Florida’s single-family grew by 1.3% and condos were 5.8% higher than November 2016.
    • U.S. sales were at the highest sales pace since December of 2006.  Single-family grew by 3.2% and condos by 7.5%.
  • The 2017 monthly average of total sales is 979 vs last year the monthly average was 952, a similar monthly pace.
  • Of the closed sales 84 were for over $1,000,000 or 10%. 34 were houses and 50 were condominiums.
    • In the $600,000 and higher price point, single-family sales grew 40% and condos priced over $600,000 were 335% greater than prior year!
  • 165 closed sales were sold between $400,000 and $1,000,000 or 19%.
  • 71% of the closed sales were under $400,000.
  • All cash sales in Sarasota continue to be strong with 36% of single-family and 68% of condo sales closed without a mortgage.  This percentage consistently exceeds trends for Florida and national cash sales (22% in November.)
  • Total pending sales of 940 properties that went under contract during November increased by 133 from the same month last year, a 16.5% increase.  The largest segment of growth was condominiums, which may also be attributed to pending closings in the large nearly sold-out Vue project.
    • U.S. pended sales for all housing types grew by just .8% compared to prior year.
    • Florida’s total pending sales were 6.6% higher than last year.
  • The monthly average of total pending sales this year is 1,545 vs. 1,540 in 2016.

Prices:

  • In November, Sarasota’s single-family homes were sold at a median price of $285,000 vs. $265,000 a year ago, 7.5% higher.
    • Florida median price for single-family homes was $240,000, a 9.1% increase over last year.
    • The national median price for existing homes grew by 5.4% to $248,800.
    • The median price in November for a NEW home in the U.S. was $318,700.
  • The 2017 monthly median price average for houses sold in Sarasota was $266,320 vs. $249,943 last year.
  • Condominium median sale price was $240,000 in November vs. $207,770 in 2016.
  • The 2017 monthly median average is $223,365 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $176,000 an 8.6% increase over November 2016.
    • U.S. median condo price grew 8.8% in November to $242,500.
  • The average sale price for houses in Sarasota was $414,368 in November vs. $350,103 a year ago.
  • The year’s monthly average price for houses sold is $369,627 vs. $346,232 last year.
  • Sarasota’s condominiums sold for an average price in November of $493,125 vs. $322,414 a year ago. A contributing factor to this growth is the closing of numerous new construction luxury residences at The Vue.  In fact, condo sales for units above $600,000 were 335% higher than prior year, strongly impacted by the same project.
  • The 2017 monthly average price for sold condominiums is $351,663 vs. $325,802 last year.
  • Single-family homes sold at 95.3% of list price, and condominiums sold at 95.7% of the list price. The year to date average for all properties sold is 94.8%.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market has increased by 287 listed properties from October, as there typically is an increase as fall approaches.
  • Since January 1, 2017, inventory has fallen by 249 properties or 5%.
  • Currently there is available inventory of 4,356 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • There are currently 7.3% fewer single-family homes on the market in the over $1 Million price point than there were in November 2016, and condos in the same luxury level have 12% fewer units to choose from than last year.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 5.2 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.8 months of single-family inventory and 5.7 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 3.4 months, 9.7% less than a year ago.
  • Sarasota County is averaging 1,254 new listings per month and in 2016 it was 1,259, virtually identical.
  • Of the total new listings the past month 9.6% or 133 properties were listed over $1,000,000.
  • 25% or 349 new listings the past month were listed for between $400,000 and $600,000.
  • 65% of the month’s new listings were listed for under $400,000.

As we near the end of 2017, I continue to be bullish on the outlook for the Sarasota Real Estate Market.  The active buyers looking at our spectacular region, growing availability of inventory in desirable locales and price points, along with the great stability of our market conditions support the confidence that I have.

If you have been considering listing your property, I cannot express how strongly I feel that entering the marketplace at this time of year is most advantageous in that you’re capturing the greatest number of eyes during peak season.

At the same time, if you are a buyer, with prices expected to maintain a healthy pace of appreciation, interest rates set to increase and inventories anticipated to grown only gradually, now is a prime time to select something from the beautiful properties we currently have available in the region.

Seller or buyer, I am eager to assist you in achieving your desired outcomes!  Don’t hesitate to call to share your goals and I will help you to determine the best plan for your unique needs.

Wishing you good health, abundant happiness, peace and prosperity in 2018!

Michael’s Featured Listing:

Golf Links collage

View all of Michael’s Listings HERE

 

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SOLD – The VUE Sarasota Bay

 

TheVUE

The VUE Sarasota Bay is now welcoming residents to the wonderful new condominium community.  Two of my clients have just closed on their beautiful new homes!  Unit #902 sold for $1,120,000 and Unit #1102 for $1,257,871.  Both condominiums have stunning Sarasota Bay, Marina and city views, two bedrooms and two-and-a-half baths.  Total square footage of the residences are 2.040.

The VUE, a stunning 18-floor architectural work of art, masterfully links its residents to all that Sarasota has to offer from the shimmering waters just beyond the floor-to-ceiling windows in the condominiums, to the nearby myriad theater, galleries, world-class restaurants and shopping all within moments from the gracious building.

Each of The VUE condominiums is designed with open floor plans with expansive windows and wide terraces with glass panel balcony enclosures to take advantage of both the endless water views and cityscapes. With only 144 residences ranging from two – to four-bedrooms and stylishly appointed amenities including state-of-the-art fitness facilities, board room, club lounge, and sweeping terrace surrounding the pool and spa, along with private elevator lobbies for each residence, under-building parking and secure storage, every luxury has been planned for.

The interiors of each of The VUE condominiums exude sophistication with a contemporary stylishness.  Residents had their choice of elegant designer finish packages, including rich porcelain flooring and premium carpeting.  Gourmet kitchens with “social islands” allow for efficient function and ample space for entertaining.  Over-sized solid core doors, 10 foot windows, and progressive energy efficient elements make The VUE, a spectacular choice.

The Vue 9fl

There are just two developer units remaining and several resales are now listed.  Please contact me for information on residences available! 941.928.3559 or by email – michaelmoulton@michaelsaunders.com.

Moulton Sarasota Real Estate Report – October 2017 – Market Gains in Pending Sales and Inventory

Sarasota Real Estate Market

October’s Sarasota Real Estate Market and most of Florida recovered from the remaining effects of September’s Hurricane Irma.  Most notable were the growth of new pending contracts written in the month and inventory added.  Both areas that had experienced significant declines in September.

New contracts signed for all property types in Sarasota were more than 50% higher than September.  New listings rose nearly 90% when compared to September.

As I wrote about in last month’s Sarasota Real Estate Report, sales lagged in September both as a result of the storm disruption, as well as it being a naturally slow time in our market here.  Total sales in October were more than 11% higher than they were in September.

I have seen no lingering negative effects of September’s business interruption and feel confident that our region has returned to “normal.”  This past month saw exceptional activity in buyer interest and homeowners seeking to list their properties, and with reported high consumer confidence in the economy, I believe that in the months ahead the Sarasota Real Estate Market will continue its upward track.

Home builder confidence as reported by the National Homebuilder Association was at its second highest level since July of 2005.  A variety of financial industry and government reports released these last few weeks have shown that consumers believe that the country’s steady job growth, wage increases, continuing historically low interest rates, and especially gains in home equity will allow the housing market to continue its positive path.

One of the challenges that will keep the growth in our area on a slightly less robust sales pace when compared to prior year is undersupply of properties in certain popular locations, and most especially in specific price points such as single-family homes priced under $250,000 and condominiums over $600,000.  Both categories have seen little growth in available properties for sale.

On the other hand, as noted earlier, home builder confidence remains strong, and as long as issues of limited workforce and rising prices for construction materials do not become even greater burdens than they are now, experts are projecting the delivery of new homes to market to remain strong.

The Sarasota County Office of Financial Management has reported that permits for new homes have grown 12.7% year-to-date compared to 2016.  These new homes are helping our region maintain stability, as it allows for current homeowners who have enjoyed home equity growth to trade-up to a new home.  In turn, additional existing homes will be added to our available inventory.  Many would-be homeowners had been holding back on buying a new home due to concern they may not find something suitable.

Looking at the whole of The Sarasota Real Estate Market and comparing to national and state data, the following are some of the key points that I assimilated from the many resources I review monthly.

Sales:

  • Total dollar volume of $314.2 million in October increased $45.4 million from prior year and increased $51.6 million over the prior month.
  • Single-family home sales in October of 611 were 19 more than a year ago and increased by 82 sales from September.
    • Florida’s single-family sales rose 2% compared to last year.
    • U.S. sales were 1% below prior year.
  • Total number of condominium sold of 243 in Sarasota in October was 33 lower than a year ago, and increased by only 3 sold properties from the prior month.
    • Florida condo sales were 2.2% greater than October 2016.
    • Condo sales nationally were virtually equal to the same month last year.
  • The 2017 monthly average of single family sales is 672 vs last year the monthly average was 664, a similar monthly pace.  For condos, the average monthly sales are 317 vs. 305 in 2016.
  • All cash sales in Sarasota continue to be strong with 37% of single-family and 52% of condo sales closed without a mortgage.  This percentage consistently exceeds Florida and national cash sales trends.
  • Pending sales of 646 homes that went under contract during October increased by 19 from the same month last year.
  • Condominium pending sales were down by 31 sales going under contract in October compared to prior year.
    • U.S. pended sales for all housing types fell .6% compared to prior year.
    • Florida’s total pending sales were 11% higher than last year.
  • The monthly average of pending sales this year is 672 for houses vs. 664 in 2016, and 317 for condos vs. 305 in 2016.

Prices:

  • In October, Sarasota’s single-family homes were sold at a median price of $279,000 vs. $236,313 a year ago, 18% higher.
    • Florida median price for single-family homes was $235,558, a 7.1% increase over last year.
    • The national median price for homes grew by 5.4% to $248,300.
    • The median price in October for a NEW home in the U.S. was $312,800.
  • The 2017 monthly median price average for houses sold in Sarasota was $264,452 vs. $249,943 last year.
  • Condominium median sale price was $224.000 in October and the 2017 monthly average is $221,702 vs. $208,539 in 2016.
    • Median price for a Florida condo last month was $170,000 an 5.2% increase over October 2016.
    • U.S. median condo price grew 6.9% in October to $236,800.
  • The average sale price for houses in Sarasota was $381,268 in October vs. $319,350 a year ago.
    • U.S. average sale price for a NEW home topped $400,000 in October.
  • The year’s monthly average price for houses sold is $365,153 vs. $346,232 last year.
  • Sarasota’s condominiums sold for an average price in October of $314,206 vs. $290,697 a year ago.
  • The 2017 monthly average price for sold condominiums is $337,517 vs. $325,802 last year.
  • Single-family homes sold at 95.4% of list price, and condominiums sold at 95.1% of the list price. The year to date average for all properties sold is 94.7%.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market has increased by 235 listed properties from September, as there typically is an increase as fall approaches, and as a result of come delayed listings from the September storm.
  • Since January 1, 2017, inventory has fallen by 536 properties or 12%.
  • The Realtor Association of Sarasota-Manatee reports that there are 3.9 months of single-family homes inventory and 4.9 month’s supply of condominiums, both under the 6-month level considered a balanced market.
    • Florida currently has 3.8 months of single-family inventory and 5.6 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 3.9 months, 10.4% less than a year ago.
  • Sarasota County is averaging 1,241 new listings per month and in 2016 it was 1,259.
  • Currently there is available inventory of 4,059 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.

A bright spot in the Sarasota Real Estate Market is the attractiveness of our region to international buyers.  Michael Saunders & Company has forged extraordinary partnerships with the world’s leading luxury real estate consortiums, and those relationships will continue to benefit our clients.

A recent report from the Florida Association of Realtors stated that Florida is the #1 state in the country for foreign investment in real estate.  21% of all Florida’s residential sales in the last year were to foreign buyers, compared to just 10% of sales nationally.  The median price paid by international buyers is 18% above that paid by US buyers, and 72% of all foreign purchases were all cash transactions.

Canada continues to be the Sarasota Real Estate Market’s primary source of international buyers.  With the Canadian dollar stabilizing against the US dollar, and skyrocketing average prices for real estate in our key feeder cities in Canada compared to our modest price growth, I am of the belief our friends to the north will remain active in our market.

The U.K., our other top feeder market, has faced considerable economic change this past year.  Despite the potential challenges ahead, experts believe that the thirst for properties in Florida will keep investment in Florida strong in the year ahead.

The Sarasota Real Estate Market is positioned well for an active peak season and I eagerly look forward to assisting clients either looking to list or purchase a prized property refine their goals and achieve their objectives!

Wishing all my subscribers the happiest of holiday seasons!

This Month’s Featured Listings

Elden Bayshore collage

Longboat Key Waterfront

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