Moulton Sarasota Real Estate Report – October 2018 – Early Fall Activity Moderates

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – October 2018

Early Fall Sales, Prices and Inventory Moderating

October marked the first month of the year in the Sarasota Real Estate Market in which most of the data reflected a moderation in activity. While total units sold increased, single-family existing home sales saw a decline and the condominium market increased over prior year by more than 10%.

Median prices saw a similar pattern with single-family homes sliding slightly and condominiums gaining 4.4% over prior year.

It is number of properties for sale where the most change occurred, with October registering the third highest volume of new listings this year. The growing inventory on the market will naturally begin to slow the pace of price appreciation. A growing number of properties coming to market is not unusual this time of year, as homeowners know that our peak selling season is getting underway. Many have spent the summer preparing their homes for sale, others believe that with rising interest rates and other factors, it is time for they themselves to get on with their next purchase.

Another of the Sarasota Real Estate Market indicators that I pay close attention to is the number of properties put under contract each month. Referred to as pending sales, this helps us to forecast what the activity may look like in the months ahead based on these contracts closing. October’s contract signing slipped from prior year. With a good deal of new product coming to market this year and last creating much of the activity, I do not see October’s slowing as an omen of softening sales in the months ahead, but more as a sign that conditions are becoming more balanced. I believe our market is healthy and will continue to grow, though at a moderate pace.

And now for my report on October Sarasota Real Estate Market activity:

Sales

  • Total Sarasota Real Estate Market dollar volume of $285.1 million in October decreased by $29.1 million from the prior year.
    • Broken down, single-family sales were $204.7 million and condominium sales were $80.4 million.
  • The number of properties sold in October was 866 which was 12 more than a year ago. The sales total included 598 houses and 268 condos.
    • Florida’s single-family sales increased 8.5% and condo sales were up 14% compared to prior year.
    • U.S. single-family sales declined 5.3% and condo sales fell 3.2%.
  • The 2018 monthly year-to-date average for sold properties in Sarasota County is 1,036 whereas the 2017 monthly average was 966, a nice average monthly increase.
  • Of the closed sales in Sarasota last month 21 were for over $1,000,000, 17 were houses and 4 were condominiums.
  • Listings that went pending the past month were 906 and decreased by 56 transactions from the same month last year.
    • Florida’s single-family pending sales showed a similar pace with 4.7% fewer single-family homes and 7.6% more condo contracts written compared to last year.
    • U.S. pending sales fell 6.7% compared to prior year.
  • For the first ten months of 2018 Sarasota has averaged 1,088 pending sales. The monthly average of pending sales in 2017 was 1,043 and in 2016 it was 1,005.

Prices

  • In October, Sarasota’s single-family homes were sold at a median price of $270,000. The 2017 monthly median price average for houses sold in Sarasota was $267,043, about a 5% increase.
    • In October, Florida median price for single-family homes was $253,853 a 7.6% increase over last year.
    • The national median price for existing homes grew by 4.3% to $257,900.
  • The condominium median sale price was $233,745 in October vs. $224,000 a year ago. The 2017 monthly median average was $225,585.
    • Median price for a Florida condo last month was $180,000, a 5.9% increase over October 2017.
    • U.S. median condo price dropped a slight .2% in October to $236,200.
  • The average sale price for houses sold was $342,247 vs. the past year’s monthly average price for houses sold of $370,708.
  • Sarasota’s condominiums sold for an average price in October of $300,172 vs. the 2017 monthly average price for sold condominiums was $362,378.
  • Overall properties sold for 95.7% 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 4,490 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.
  • Of the available inventory for sale, 568 properties are listed for over $1 million or only 12%. 422 of the active listings over $1,000,000 are houses and 146 are condominiums.
  • Sarasota County had 1,482 new listed properties in October. The local market averaged 1,245 new listings per month in 2017, and 1,304 year-to-date in 2018. Of the total new listings the past month, 116 properties were listed over $1,000,000, a small percentage of the overall available inventory for sale.
  • As mentioned in my reports through this year, inventories in The Sarasota Real Estate Market have fallen from a high of 5,015 properties for sale to the low of 4,020.
  • Current inventory is 4,490, resulting in just 4.3 months of single-family homes and 4.6 month’s supply of condominiums, both under the 6-month level considered a balanced market.
  • The single-family months of inventory has been consistent all year while the condominiums months of inventory continues to have a slight decrease each month.
    • Florida currently has 4.0 months of single-family inventory, up 9.8% compared to last year, and 5.5 month’s supply of condominiums, up 5.4% over last year and also close to a balanced market.
    • U.S. inventory of all housing types is sitting at 4.3 months of supply.

As always, I look forward to serving you, your family and friends with their real estate needs. It would be my pleasure to assist in reviewing your buying or selling needs and help to guide you to the best plan to achieve your goals.

I wish you a warm and wonderful Holiday Season!


My wife Katie and I regret the late delivery of the reporting of the Sarasota Real Estate Market results for the month of October 2018. As many of my subscribers know, Katie is the daughter of Murray (Murf) Klauber, the well-known founder of The Colony Beach & Tennis Resort on Longboat Key, visionary, innovator and community advocate, accomplished developer, and colorful and treasured friend to so many around the globe. Murf passed away on Thanksgiving evening after a day surrounded by his beloved family. In the weeks following we have been taking time to reflect on our great loss, and at the same time remember and celebrate his wonderful and full life, generosity and kindness, laughter and love. For those who did not know Murf, here is just one of many beautiful tributes, this one published in the Sarasota Herald Tribune.  Please also see The Longboat ObserverWall Street Journal and Longboat Key News for additional articles.


Michael’s Featured Listings:

Sarasota Real Estate

 

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Sarasota Real Estate Market Report – September 2018

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – September 2018

Summer Sales Maintain Momentum

The Sarasota Real Estate Market turned in another month of increased sales and prices, inventory expansion and considerable growth over prior year in pending sales in the month of September. Remembering that September 2017 had a major disruption with Hurricane Irma tracking through the state, we expected improvement over prior year. What we saw was not an extreme expansion, but rather a modest lift in sales and prices, yet again setting our regional market on a steady and sustainable course as we move into our busier selling season.

Last year’s hurricane event caused a double-digit drop in contract signings, so not surprisingly that statistic in September 2018 grew to a pace that, as you’ll see in the statistics below, was substantial.

New construction remains robust and is helping to meet demand in that segment, however existing homes and condominiums are still showing slim inventory for buyers in the market for established neighborhoods and buildings. A six-month supply of properties for sale is considered a “normal” market, in which home prices would be expected to rise at the same pace as GDP. With our inventories well below that standard, the Sarasota Real Estate Market has and will continue to have prices grow at a greater pace in the months ahead.

National economists are confident that sales and price growth will continue through 2019, though at a slower rate than we experienced in 2018. The Sarasota Real Estate Market is expected to maintain its rate of growth that typically beats data reported across the rest of the country.

Buyers who are planning to use a mortgage have seen an increase in rates this year, as has been well reported. In the luxury market where most of my transactions take place, the majority are paid in cash. However, in the last few years with historically low interest rates many couldn’t help but take advantage of the cost of money.

Buyers in other price tiers may feel that borrowing bSarasota Real Estateelow or near 5% is objectionable, but if you take a look at the chart here (provided by Keeping Current Matters using data from Freddie Mac,) you’ll see that though you may have missed the lowest mortgage rates in modern history, you’re still experiencing very favorable borrowing conditions. Add to the attractive rates the easing of banking regulations for borrowing, conditions are still good for buyers wanting to use a mortgage for their purchase.

The stream of international buyers, demand coming from states facing harsh tax environments, and the large number of baby-boomers beginning their search for retirement properties, all lead to confidence in the Sarasota Real Estate Market’s potential to keep expanding. Based on my own buyer traffic and recent number of clients looking to list their properties, I am convinced that our peak selling season ahead will maintain the momentum that we have seen throughout 2018.

Many of my subscribers are outside the Sarasota area. With decades of experience assisting clients from across North America, I have developed a great network of some of the best realtors. Let me know if you’re contemplating selling and I’ll help you find a professional to work with in your community.

And now for my report on September Sarasota Real Estate Market activity:

Sales

  • Total Sarasota Real Estate Market dollar volume of $275.3 million in September increased by $12.7 million from the prior year.
    • Broken down, single-family sales were $194.8 million and condominium sales were $80.5 million.
    • The effects of Hurricane Irma on sales last year are remarkable when you see the year-over-year data for the entire state of Florida – single family sales volume grew 23.5% and condo volume was up 23.3%.
  • The number of properties sold in September was 806 which was 37 more than a year ago. The sales total included 548 houses and 258 condos.
    • Florida’s single-family sales increased 17% and condo sales were up 14.6% compared to prior year.
    • U.S. single-family sales declined 4.0% and condo sales fell 5%.
  • The 2018 monthly year-to-date average for sold properties in Sarasota County is 1,055 whereas the 2017 monthly average was 966, a nice average monthly increase.
  • Of the closed sales in Sarasota last month 19 were for over $1,000,000, 4% of the total sales, 11 were houses and 8 were condominiums.
  • All cash sales in Sarasota continue to be strong with 36% of single-family and 54% of condo sales closed without a mortgage. By comparison, national all cash transactions were about 20% of total sales.
  • Listings that went pending the past month were 842 and increased by 205 transactions from the same month last year, with single-family growing 28.8% and condominiums up 17.8%.
    • Florida’s single-family pending sales also showed an incredible increase over Hurricane Irma affected September 2017 with 37.9% more single-family homes and 44.1% more condo contracts written compared to last year.
    • U.S. pending sales fell 1% compared to prior year.
  • For the first nine months of 2018 Sarasota has averaged 1,108 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 September, Sarasota’s single-family homes were sold at a median price of $280,000. The 2017 monthly median price average for houses sold in Sarasota was $267,043, about a 5% increase.
    • In September, Florida median price for single-family homes was $251,610, a 4.9% increase over last year.
    • The national median price for existing homes grew by 4.6% to $266,500.
  • The condominium median sale price was $236,248 in September vs. $220,000 a year ago. The 2017 monthly median average was $225,585.
    • Median price for a Florida condo last month was $182,500, a 5.5% increase over September 2017.
    • U.S. median condo price grew 1.5% in September to $239,200.
  • The average sale price for houses sold was $355,485 vs. the past year’s monthly average price for houses sold of $370,708.
  • Sarasota’s condominiums sold for an average price in September of $311,829 vs. the 2017 monthly average price for sold condominiums was $362,378.
  • Overall properties sold for 95.3% 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 4,046 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.
  • Of the available inventory for sale, 508 properties are listed for over $1 million or only 12%. 379 of the active $1m+ listings are houses and 129 are condominiums.
  • Sarasota County had 1,083 new listed properties in September. The local market averaged 1,147 new listings per month in 2017. Of the total new listings the past month, 63 properties were listed over $1,000,000, a small amount of the overall available inventory for sale.
  • As mentioned, inventories in The Sarasota Real Estate Market have fallen this year and are now just 3.8 months of single-family homes and 4.2 month’s supply of condominiums, both under the 6-month level considered a balanced market. The single-family months of inventory has been consistent all year while the condominiums months of inventory continues to have a slight decrease each month.
    • Florida currently has 3.9 months of single-family inventory, up 6.5% compared to last year, and 5.3 month’s supply of condominiums, up about 3% over last year and also close to a balanced market.
    • U.S. inventory of all housing types is sitting at 4.4 months of supply, up 4% from this time last year.

As always, I look forward to serving you, your family and friends with their real estate needs. It would be my pleasure to assist in reviewing your buying or selling needs and help to guide you to the best plan to achieve your goals.

Michael’s Featured Listing:

Longboat Key Waterfront

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Moulton Sarasota Real Estate Market Report – August 2018 – It’s a Seller’s Market

Longboat Key

The Moulton Sarasota Real Estate Report – August 2018

It’s Still a Seller’s Market – Get in on it!

For months now the Sarasota Real Estate Market has favored sellers. What does this mean and why is it important to bring into focus for my readers? As we near the start of our busier season – both from regional and out-of-town buyer prospects – the market is favoring sellers. With property sellers in the driver seat, especially in the luxury market, unless there is a considerable increase in listings, we expect to see a narrowing of list-to-sale price gaps, and also likely buyers who have been looking for some time move more swiftly on the best new listings that come online.

If you are a would-be seller, now is the time to get started. It can take weeks and even months to bring a property to market, as often some repairs and refreshing may be necessary, and with tight labor conditions there may be a delay in preparing your home to show at its very best. Our busiest showing months coincide with higher tourist seasons. And it is very common in the early fall months to have all-cash buyers in the market looking to make a purchase and close before the end of the year.

In reviewing last month’s Sarasota Real Estate sales reports, condominiums once again showed strong growth. However, for the first month in some time, pending sales (contracts signed but not closed) fell slightly against contracts signed the same month last year. In the single-family segment, pending sales fell more significantly. I would be remiss if I didn’t mention red tide and its possible effect on recent contract signing activity. Though red tide is not new, the media attention during this year’s event has reached the global marketplace, and may have a softening effect on our market for a few months.

Inventory, regardless of outside influencers such as red tide, the economy and politics, needs to grow to maintain our longtime growth trend. Unless our region sees meaningful increases in properties for sale, buyers may find little to choose from during our busiest time of year. There are ample ready, willing and able buyers seeking properties to absorb an increased inventory of homes for sale, and certainly strong consumer confidence that real estate is the best investment in the years ahead. Again, I remind any of my readers considering putting their properties on the market, now is a prime time to make this important decision.

Many of my subscribers are outside the Sarasota area. With decades of experience assisting clients from across North America, I have developed a great network of some of the best realtors. Let me know if you’re contemplating selling and I’ll help you find a professional to work with in your community.

And now for my report on August Sarasota Real Estate Market activity:

Sales

While single-family home sales softened in comparison to last year, condominium activity remained robust. With the addition of a number of high quality projects brought to market this year and selling at quick pace, it is clear that this segment has strong demand. My experience is that the buyers are in many cases moving from the keys, and also snowbirds making their first foray into semi-retirement with an eye on permanent residency here in the nest 5-10 years. The new 73-unit ultra-luxury Ritz Carlton Residences has just broken ground. I expect these stunning condominiums to sell quickly – should you have an interest in taking a look at the project before it is fully reserved/sold out, please let me know.

  • Total Sarasota Real Estate Market dollar volume of $376.4 million in August increased by $24.5 million from the prior year and increased $14 million from July.
    • Broken down, single-family sales were $274.5 million and condominium sales were $102 million.
    • Single family sales increased $11 million compared to the prior year, and condo sales were up $13.6 million from the prior year.
    • Florida’s single family sales volume grew 8.9% and condo volume was up 17.4%.
  • The number of properties sold in August was 1,031, which was 14 less than July and 38 more than a year ago. The sales total included 716 houses and 315 condos.
    • Florida’s single-family sales increased 4.2% and condo sales were up 6.6% compared to prior year.
    • U.S. single-family sales declined 1.0% and condo sales fell 4.8%.
  • The 2018 monthly year-to-date average for sold properties is 1,086 whereas the 2017 monthly average was 966, a nice average monthly increase.
  • Of the closed sales in Sarasota last month 42 were for over $1,000,000, 4% of the total sales, 31 were houses and 11 were condominiums.
  • All cash sales in Sarasota continue to be strong with 34% of single-family and 53% of condo sales closed without a mortgage. By comparison, national all cash transactions were about 20% of total sales.
  • Listings that went pending the past month were 899 and decreased by 122 transactions from the same month last year. The majority of reduction occurred in the single-family segment, with just six fewer condo contracts signed.
    • Florida’s single-family pending sales fell 2.6% and condo contracts written dropped 8.9% compared to last year.
  • For the first eight months of 2018 Sarasota has averaged 1,141 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

Median prices for all segments have grown near 10% over prior year and average prices are up more than 5% in the Sarasota Real Estate Market. With inventory remaining tight, this trend is expected to continue.

  • In August, Sarasota’s single-family homes were sold at a median price of $283,488. The 2017 monthly median price average for houses sold in Sarasota was $267,043, about a 6% increase.
    • In August, Florida median price for single-family homes was $254,290, a 6% increase over last year.
    • The national median price for existing homes grew by 4.9% to $267,300 – this was the 78th consecutive month of year-over-year price appreciation.
  • The condominium median sale price was $232,950 in August vs. $213,500 a year ago. The 2017 monthly median average was $225,585.
    • Median price for a Florida condo last month was $185,000, an 8.8% increase over August 2017.
    • U.S. median condo price grew 2% in August to $244,500.
  • The average sale price for houses sold in Sarasota was $383,488. The past year’s monthly average price for houses sold was $370,708.
  • Sarasota’s condominiums sold for an average price in August of $323,255. 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

As noted earlier in this report, we remain in a seller’s market. Inventory is just above last year’s level in both single-family and condominium segments. However in the luxury tier (above $1 million,) where the majority of my activity is, inventory is near its lowest level recorded in the last five years, dropping from a high of 30-months of inventory to today’s just 10-months, according to data tracker Trendgraphics. Again, this statistic should be an encouragement to would-be sellers as we enter our busier seasons ahead.

  • Currently there is available inventory of 4,020 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 16 listed properties from August and 149 more properties than a year ago.
  • Of the available inventory for sale, 499 properties are listed for over $1 million or only 12%. 376 of the active listing are houses and 123 are condominiums.
  • Sarasota County had 1,141 new listed properties in August. The local market averaged 1,147 new listings per month in 2017. Of the total new listings the past month, 45 properties were listed over $1,000,000, a small amount of the overall available inventory for sale.
  • Inventory of properties over $1 million has fallen in the last year with 6.5% fewer single-family homes and 12.1% less condos on the market.
  • As mentioned, inventories in The Sarasota Real Estate Market have fallen this year and are now 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. The single-family months of inventory has been consistent all year while the condominiums months of inventory continues to have a slight decrease each month.
    • Florida currently has 4.0 months of single-family inventory, up 4.5% compared to last year, and 5.3 month’s supply of condominiums, close to the same as last year and also close to a balanced market.
    • U.S. inventory of all housing types is sitting at 4.3 months of supply, up from 4.1 months at this time last year.

The Sarasota Real Estate Market is on track for another healthy selling season. New building continues to help to ease the inventory shortage of high quality well-located existing homes and condominiums. Surveys of home builders suggest that their confidence in the market is strong and that the pace of new product that we’ve seen over the last year will continue.

In general, it’s hard to ignore the creeping up of interest rates and expectation of an acrimonious mid-term election ahead, which could cause some national real estate and investment market disruptions, but I feel that neither will have much effect on our local area’s housing industry. The positive GDP growth, low unemployment, small business optimism, consumer confidence and rise in household net worth all create a confluence of healthy factors allowing for real estate market stability in the months ahead.

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

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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

View all Michael’s Listings Here

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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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