Sarasota Real Estate Market’s Spirited Spring Selling Season

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – February 2018

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

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

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

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

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

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

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

Sales

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

Prices

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

Inventory

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

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

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

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

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

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

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

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

Michael’s Featured Listing:

Beach Walk Longboat Key

View All Michael’s Listings HERE

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

Sarasota Real Estate

The Moulton Sarasota Real Estate Report – January 2018

Sarasota Real Estate Market was Jumpin’ in January!      

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

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

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

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

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

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

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

Sales:

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

Prices:

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

Inventory:

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

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

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

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

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

Michael’s Featured Listing:

Longboat Key Waterfront HomeView all Michael’s listings HERE

 

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

sarasota real estate market

Moulton Sarasota Real Estate Report

December 2017 – Out Like a Lion

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

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

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

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

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

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

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

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

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

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

Sales:

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

Prices:

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

Inventory:

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

Distressed Sales:

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

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

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

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

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

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

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

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

Michael’s Featured Listings:

401 S Palm collage2

Elden Savoy collage2

View all Michael’s Listings HERE

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

2018 Sarasota Real Estate Market

The Moulton Sarasota Real Estate Report – November 2017

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

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

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

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

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

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

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

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

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

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

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

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

Sales:

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

Prices:

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

Inventory:

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

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

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

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

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

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

Michael’s Featured Listing:

Golf Links collage

View all of Michael’s Listings HERE

 

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SOLD – The VUE Sarasota Bay

 

TheVUE

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

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

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

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

The Vue 9fl

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

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

Sarasota Real Estate Market

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

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

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

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

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

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

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

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

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

Sales:

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

Prices:

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

Inventory:

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

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

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

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

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

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

Wishing all my subscribers the happiest of holiday seasons!

This Month’s Featured Listings

Elden Bayshore collage

Longboat Key Waterfront

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Moulton Sarasota Real Estate Market Report – September 2017

Sarasota marina

Hurricane Irma and Holiday Trigger Lean Sales Volume

The Sarasota Real Estate Market suffered a considerable impact from many fewer business days in September as a result of both Hurricane Irma and the Labor Day holiday.  Though September is typically a softer month than others throughout the year, when comparing sales to the same month last year, the area saw an 18.5% decline in closings.  The Realtor Association of Sarasota and Manatee calculated that the region had 20% fewer business days compared to other months this year.

Despite the substantial decrease in number of units sold in the Sarasota Real Estate Market, condo sales dollar volume was just 2% behind last year, and single-family was 13.5% behind prior year.  At the same time sales weakened, prices maintained their climb with single-family home prices growing 8.4% and condominiums up 11.2%.

With homeowners focused on hurricane preparations, evacuation plans, and eventual clean-up, significant business disruptions caused by loss of power and technology, need for re-inspections of homes under contract after the storm passed, and general angst not only caused sales to lag, but also new listings and pending contracts to be impacted.  Single-family listings were almost 37% fewer than previous year and condos saw 18% less units come to market.

Current inventories of single-family homes and condominiums in the Sarasota Real Estate market are at the lowest levels in more than a year.  Homeowners who were unable to get their properties listed in September will hopefully go forward with their plans to sell and help to restock our now tight supply.

Pending sales is one of our best forward looking indicators.  In September new contracts signed were almost 30% behind last year.  However, it is important to note that while this may affect sales in the next month or two, demand has not waned and those same buyers are still in the market for properties, so I do not expect future sales to fall measurably as a result of the hurricane.

Florida and Texas represent nearly 20% of all real estate sales each month, so with the states so severely impacted by Harvey and Irma, both August and September saw total U.S. sales slide.  The National Association of Realtors reported that September inventory and pending sales nationwide also declined, likely attributable to the storms.

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

Sales:

  • Total sales in The Sarasota Real Estate Market in September decreased by 143 sales to 769 from prior year, and decreased 224 sales from August.
  • Total dollar volume decreased $30.8 million from prior year and fell $89.3 million behind the prior month.
  • Single-family home sales in September of 529 were 106 less than a year ago and decreased by 196 sales from August.
    • Florida’s single-family sales fell 20.4% compared to last year.
    • U.S. sales also fell and were 1.2% below prior year.
  • Total number of condominium units sold of 240 in Sarasota in September was 13% lower than a year ago, and decreased by 28 sold properties from the prior month.
    • Florida condo sales were 15.9% lower than September 2016.
    • Condo sales nationally declined 3.2% compared to last September.
  • The 2016 monthly average of single family sales was 672, and for this year the monthly average is 679, an almost identical pace.  For condos, the average monthly sales in 2016 were 308, and this year it is 325.
  • All cash sales in Sarasota continue to be strong with 40% of single-family and 56% of condo sales closed without a mortgage.  This percentage consistently exceeds Florida and national cash sales trends.
  • Pending sales of 452 homes that went under contract during September decreased by 25% from the same month last year, which as noted earlier is a direct result of the large September storm.
  • Condominium pending sales were also significantly down with a 39% decrease in properties going under contract in September compared to prior year.
  • The monthly average of pending sales this year is 732 for houses vs. 725 in 2016, and 348 for condos vs. 334 in 2016.
    • U.S. pended sales fell 3.5% compared to prior year.
    • Florida’s pending sales saw a 30% drop in properties going under contract in September when compared to prior year, similar to what we experienced in our region.

Prices:

  • In September, Sarasota’s single-family homes were sold at a median price of $269,900 vs. $249,000 a year ago, 8% higher.
    • Florida median price for single-family homes was $239,900, a 7.6% increase over last year.
    • The national median price for homes was $246,800.
    • The median price in September for a NEW home in the U.S. was $319,700.
  • The 2016 monthly median price average for houses sold in Sarasota was $248,167 vs. this year it is $262,836.
  • Condominium median sale price was $220,000 in September, the 2017 monthly average is $221,449 vs. $209,058 as the 2016 monthly average.
    • Median price for a Florida condo last month was $173,000 an 8.1% increase over September 2016.
    • U.S. median condo price in September was $231,300.
  • The average sale price for houses in Sarasota was $353,869 in September vs. $340,938 a year ago.
  • The year’s monthly average price for houses sold in 2016 is $350,914 vs. $363,363 year to date.
  • Sarasota’s condominiums sold for an average price in September of $314,206 vs. $277,738 a year ago.
  • The 2016 monthly average price for sold condominiums was $330,575 vs. $314,206 this year.
  • Single-family homes sold at 95.7% of list price, and condominiums sold at 94.2% of the list price.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market is close to the same from August and a year ago. Consistency of available inventory is a good indicator of a stable market.
  • Since January 1, 2017, inventory has fallen by 771 properties or 17%.
  • For single-family homes, Sarasota’s inventory has decreased by 521 properties since the beginning of 2017.
  • Condominium inventory in Sarasota has decreased by 250 properties since the beginning of the year.
  • The Realtor Association of Sarasota-Manatee reports that there are 3.7 months of single-family homes inventory and 4.5 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 5.5 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 4.2 months, 6.4% less than a year ago.
  • Sarasota County averaged 1,162 new listings per month in 2016 and this year the nine-month average is 1,227. In September only 759 listings came on the market, I am sure a direct result of the storm.
  • Currently there is available inventory of 3,824 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.

Homebuilders remain steadfast in their confidence that the market for newly built homes will continue to be strong.  Though material and labor shortages exist and costs are rising, a recent survey by the National Association of Homebuilders indicated developers believe they can maintain their pace of building and deliver much needed new inventory to market.

A recent survey of more than 100 real estate experts, economists and market strategists also reflected sentiments of a very healthy housing market.  They project a strong finish to 2017, sales increase in 2018 of more than 5%, and price increases of about 6% on the national stage.  Over the next five years the same group expects national average home value appreciation to grow 3.6% annually and cumulative appreciation for homes of 18.4%

  October activity in my business has been as strong as I can remember in recent years.  A high level of activity from eager buyers and many new sellers give me confidence that in the season ahead the Sarasota Real Estate Market will continue this year’s pattern of sales and price growth.

If this is your time to sell or buy a new home or condominium, give me a call and let me help you achieve your real estate objectives.

View Michael’s Newest Listing!

Renaissance PH collage 431 N Shore collage
2525 Bayshore collage Elden Bayshore collage

View all of Michael’s Listings HERE

Moulton Sarasota Real Estate Market Report – July Shows Continued Growth

Sarasota waterfront

The Moulton Sarasota Real Estate Report – July 2017

Summer Sales Show Further Market Growth

The Sarasota Real Estate Market managed to continue its growth pattern. July data exhibited that demand remains strong for the region, and it appears that the healthy conditions should allow for sustained growth in the months to come.

While many expect our summer selling season to be softer when compared to the peak tourist/part-time resident months, July closed sales are typically active, this year topping sales in the October 2016 thru February 2017 months. Properties that went under contract in July 2017 exceeded those of July 2016 by approximately 4%, so expectations are that the moderate sales growth over prior year will continue in the Sarasota Real Estate Market.

Inventory once again remained in the 4.5-month supply range, well enough below what economists view as a healthy balance of 6-month’s supply, so we are left with conditions that will continue to keep upward pressure on prices. Despite a steady flow of new listings in July, both single-family and condominium units for sale grew at their slowest pace for the year, and just barely replaced sold inventory for the month.

Median price growth in the Sarasota Real Estate Market is considered “sustainable” by market experts. Though prices have fluctuated month-to-month, escalation year-over-year has been moderate and appears to be at a pace that reflects soundness in the housing market here.

The “affordable” tier of our regional market still shows few signs of easing inventory scarcity, making it difficult for our young families and workforce to achieve homeownership. With new homes coming to market generally priced more than 30% above existing homes, it doesn’t appear these conditions will improve in the short-term.

At the other end of the Sarasota Real Estate Market where most of my business is done, above $1 million, new listings fell just short of sales for the month, though still leaving us with a fair inventory of luxury properties for sale. I am aware of a number of prospective existing home and condominium owners contemplating bringing their luxury properties to market this fall. As a result, expect to see supply expand in the next few months, creating some competition for inventory that has been on the market for a while.

July sales of luxury properties in the Sarasota Real Estate Market grew considerably over 2016 – well in excess of 80%, but it is also important to note that total number of $1 million and above units sold last month was only 50. There are currently 571 $1 million+ properties for sale in the Sarasota Real Estate Market. The Sarasota media helps us celebrate when one of these prized properties changes hands by featuring them in their publications and broadcasts, but showing you this variance between inventory and number of sales highlights just how exceptional – and rare – each one of these transactions is.

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

Sales:

  • Total sales in The Sarasota Real Estate Market in July increased by 54 sales to 989 from prior year, and decreased 14% from June.
  • Total dollar volume increased $44.6 million over prior year and fell $60.4 million behind last month.
  • Single-family home sales in July of 683 were 3 sales more than a year ago and decreased by 102 sales from June.
    • Florida’s single-family sales grew 3.3% compared to last year.
    • U.S. sales were up just 1.7% from prior year.
  • Total number of condominium units sold of 306 in Sarasota in July was 20% higher than a year ago, and decreased by 64 sold properties from the prior month.
    • Florida condo sales were 3.6% higher than July 2016.
    • Condo sales nationally grew 5.3% over last July.
  • The 2016 monthly average of single family sales was 653, and for this year the monthly average is 694.  For condos, the average monthly sales in 2016 were 301, and this year it is 346.
  • All cash sales in Sarasota continue to be strong with 33% of single-family and 60% of condos sales closed without a mortgage.  This percentage consistently exceeds Florida and national cash sales trends.
  • Pending sales of 703 homes that went under contract during July increased by 7% over the same month last year.
  • Condominium pending sales were impressive with a 20% increase in properties going under contract in July over prior year, racking up a total of 306 units.  This statistic is very helpful in projecting sales growth in the 30-60 days ahead.
  • The monthly average of pending sales this year is 774 for houses vs. 649 in 2016, and 377 for condos vs. 298 in 2016.
    • U.S. pended sales fell 1.3% compared to prior year.
    • Florida’s pending sales saw an approximately 3% increase in properties going under contract in July when compared to prior year.

Prices:

  • In July, Sarasota’s single-family homes were sold at a median price of $260,000 vs. $242,500 a year ago, 7% higher.
    • Florida median price for single-family homes was $240,000, a 7.1% increase over last year.
    • The national median price for homes was $260,600, a 6.3% increase over prior year.
    • The median price in July for a NEW home in the U.S. was $313,700, 6.3% higher than a year ago.
  • The 2016 monthly median price average for houses sold in Sarasota was $249,867 vs. this year it is $262,937.
  • Condominium median sale price was $214,175 in July, the 2017 monthly average is $222,789  vs. $207,892 as the 2016 monthly average.
    • Median price for a Florida condo last month was $170,950 a 6.8% increase over July 2016.
    • U.S. median condo price in July was $239,800, a 5.3% increase.
  • The average sale price for houses in Sarasota was $373,959 in July vs. $335,617 a year ago.
  • The year’s monthly average price for houses sold in 2016 is $346,008 vs. $364,667 year to date.
  • Sarasota’s condominiums sold for an average price in July of $327,912 vs. $325,238 a year ago.
  • The 2016 monthly average price for sold condominiums was $325,549 vs. $345,475 this year.
  • Single-family homes sold at 95.2% of list price, and condominiums sold at 94.1% of the list price.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market decreased by 168 properties from June and grew by 242 properties or 6% from a year ago.
  • Since January 1, 2017, inventory has fallen 9.2%.
  • For single-family homes, Sarasota’s inventory has decreased by 227 properties since the beginning of 2017.
  • Condominium inventory in Sarasota has decreased by 196 properties since the beginning of the year.
  • 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, basically a balanced market.
    • Florida currently has 4.1 months of single-family inventory and 5.8 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 4.2 months, 9% less than a year ago.
  • Sarasota County averaged 1,260 new listings per month in 2016 and this year the seven-month average is 1,312. In July 1,067 listings came on the market.
  • Currently there is available inventory of 4,172 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.

As we look back at the July 2017 data, I maintain my confidence that the Sarasota Real Estate Market is positioned well to extend its stretch of healthy balanced conditions and sustained growth.

This Month’s Featured Listing

Siesta Key Waterfront

Moulton Sarasota Real Estate Market Report – June Continued Upward Course

Sarasota Real Estate Market

The Moulton Sarasota Real Estate Report – June 2017

Housing Market Continued Upward Course

The Sarasota Real Estate Market marked yet another month of growth in June 2017. Though moderate, our region has been able to sustain its momentum while other markets in Florida and nationally are tending to less constancy in sales, prices and inventory.  Last year’s inventory replenishment set Sarasota’s housing market on a course that has allowed for sustained equilibrium, which has contributed to prolonged growth.

April and May’s improvement in pending sales, compared to the same months in 2016, led us to expect a rise in closed transactions in June.  The most notable increase was in the Sarasota condominium segment, with a nearly 5% increase in sales in the month compared to last year. Interestingly, as inventory inched up over the last few months, prices for condominiums have been stabilizing, and the gap between list and sale price has widened slightly, from a high of 95.5% of list price at 12/31/16 to 93.2% last month.

Closed sales of Sarasota Real Estate in June saw the largest growth in the price tiers greater than $600,000.  Single-family homes in the higher price points grew 33% and condominiums approximately 19%.  This is likely due to the fact that lower priced inventory is so thin, that buyers in those segments simply cannot find properties in their preferred locations and within their budgets.

June’s new listings in the Sarasota Real Estate Market’s single-family segment fell slightly when compared to 2016, while condominium new listings increased more significantly.  With an average of around 660 homes sold each month, the growth in inventory that we saw in June is still not equaling the number of sold properties.  New listings of condominiums grew by 50 more units compared to last year’s new listings for the month, but that is not quite keeping up with the region’s average monthly condo sales.  With current inventory at about 4.3 months for single-family homes and condominiums at a 4.8 month supply, we seem to have inched back away from the near-equilibrium that we saw a few months ago.

Real Estate analysts and economists believe that the national housing market is still in a growth phase, likely resulting from consumer confidence related to job and wage growth, the increase in GDP, continued stabilization of mortgage rates, and especially homeowner equity gains.  Experts are projecting these conditions to remain stable, and in turn see ongoing market strength through the months ahead.

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

Sales:

  • Total sales in The Sarasota Real Estate Market in June decreased by just 11 sales from prior year, and decreased 7% from May.
  • Total dollar volume increased $17 million over prior year and fell $12 million behind last month.
  • Single-family home sales in June of 785 were 6 sales less than a year ago and decreased by 37 sales from May.
    • Florida’s single-family sales grew 4.3% compared to last year.
    • U.S. sales were up just 0.6% from prior year.
  • Total number of condominium units sold of 370 in Sarasota in June was almost 5% higher than a year ago, and decreased by 55 sold properties from the prior month.
    • Florida condo sales were 4.9% higher than June 2016.
    • Condo sales nationally grew only 1.6% over last June.
  • The 2016 monthly average of single family sales was 653, and for this year the monthly average is 696.  For condos, the average monthly sales in 2016 were 301, and this year it is 352.
  • All cash sales in Sarasota continue to be strong with 38% of single-family and 64% of condos sales were closed without a mortgage.  This percentage consistently exceeds Florida and national cash sales trends.
  • Pending sales of 741 homes that went under contract during June increased by 6.2% over the same month last year.
  • Condominium pending sales were impressive with a 36% increase in properties going under contract in June over prior year, racking up a total of 346 units.  This statistic is very helpful in projecting sales growth in the 30-60 days ahead.
  • The monthly average of pending sales this year is 786 for houses vs. 760 in 2016, and 392 for condos vs. 353 in 2016.
    • U.S. pending sales were up just 0.5% compared to prior year.
    • Florida’s pending sales saw an approximately 3.5% increase in properties going under contract in June when compared to prior year.
  • Median time from listing to sale has inched higher in the last several months, now nearly 10% longer than last year at this time.

Prices:

  • In June, Sarasota’s single-family homes were sold at a median price of $275,000 vs. $248,000 a year ago, nearly 11% higher.
    • Florida median price for single-family homes was $245,000, an 8.9% increase over last year.
    • The national median price for homes was $266,200, a 6.6% increase over prior year.
    • The median price in June for a NEW home in the U.S. was $310,800 – 17% more than an existing home.
  • The 2016 monthly median price average for houses sold in Sarasota was $249,867 vs. this year it is $262,937.
  • Condominium median sale price was $215,500 in June, the 2017 monthly average is $224,224  vs. $209,429 as the 2016 monthly average.
    • Median price for a Florida condo last month was $176,820, a 7.2% increase over June 2016.
    • U.S. median condo price in June was $245,900, a 6.5% increase.
  • The average sale price for houses in Sarasota was $359,226 in June vs. $334,481 a year ago.
  • The year’s monthly average price for houses sold in 2016 is $346,008 vs. $363,118 year to date.
  • Sarasota’s condominiums sold for an average price in June of $362,344 vs. $379,877 a year ago.
  • The 2016 monthly average price for sold condominiums was $325,549 vs. $348,402 this year.
  • Single-family homes sold at 95% of list price, and condominiums sold at 93.2% of the list price.

Inventory:

  • Total available inventory in the Sarasota Real Estate Market decreased by approximately 130 properties from May and grew by 330 properties or 11% from a year ago.
  • Since January 1, 2017, inventory has fallen 5.5%.
  • For single-family homes, Sarasota’s inventory has decreased by 100 properties since the beginning of 2017.
  • Condominium inventory in Sarasota has decreased by 155 properties since the beginning of the year.
  • The Realtor Association of Sarasota-Manatee reports that there are 4.3 months of single-family homes inventory and 4.8 month’s supply of condominiums, basically a balanced market.
    • Florida currently has 4.9 months of single-family inventory and 5.8 months of condominiums.
    • U.S. inventory of all housing types is reported to be at 4.3 months, and has decreased now for 25 months in a row.
  • Sarasota County averaged 1,260 new listings per month in 2016, about the same monthly average as 2015, and this year the six-month average is 1,353. In June 1,132 listings came on the market.
  • Currently there is available inventory of 4,340 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.
  • New home building nationally is still lagging behind historical trends when compared to population growth.  Lack of skilled labor and increased costs of development – both related to supplies and regulations – has kept construction well below demand, and below what is needed to help the country’s housing inventory reach a better inventory equilibrium.

It comes as no surprise to my readers that The Sarasota Real Estate Market is heavily influenced by foreign market interest.  And on a national scale, Florida continues to be in the top spot for foreign buyer interest, with nearly 25% of all transactions taking place in our fine state.  Canadian buyers are the leading source of foreign buyers in Florida.

Though the value of the dollar my make some take pause, the fact that real estate prices have escalated at such explosive rates in certain areas of Canada, buyers are feeling they have the equity in their primary residence to consider investing in U.S. real estate.  In general, our key international feeder markets still consider the U.S. and especially Florida, a secure place to invest, despite political and economic factors here and abroad.

The National Association of Realtors just released a report showing that in the 12-months ended March 30, more than $153 Billion of properties were acquired by foreign nationals and recent immigrants, a 49% increase over the year prior.  Also noted in the report was that the median price paid by a foreign buyer is 28% higher than a U.S. buyer.

Michael Saunders & Co. has been at the forefront of establishing international affiliations, and this serves our clients well.  Michael Saunders herself travels many months of the year nurturing these relationships, while at the same time building our brand visibility through speaking engagements and event sponsorships.  Having the depth and breadth of relationships around the globe is one of the most valuable resources we luxury Sarasota Real Estate agents have at Michael Saunders.

Summer selling season in the Sarasota Real Estate Market is powered in part by the broad appeal our region has to the international buyer.  With the reach that Michael Saunders & Co. has, our sellers often have a considerable advantage in marketing their properties.  For example, one of my listings was featured this month on the home page of Luxury Portfolio International’s website.  Properties appearing on their site are said to reach 10 times more qualified buyers, as they have 250,000 visitors to their site from more than 200 countries/territories around the world each month.

As we are at the height of our international visitor season here in Sarasota, and with the pace of pending contracts continuing to grow over prior year each month, I am projecting that in the months ahead The Sarasota Real Estate Market will maintain its steady upward course.

It is always my pleasure to work with friends and family of my valued newsletter readers.  Please let me know if you hear of someone seeking to buy or sell a property in our community – you know you can count on me!

This Month’s Featured Listing:

Longboat Key Waterfront

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JUST LISTED – The Landings Sarasota 5BR Home

5121 Kestral Park

This meticulously maintained 3,700 square foot five-bedroom split floor plan residence in the coveted neighborhood of The Landings, is perfect for family living.

The high vaulted ceiling in the open living room offers ample space for family and friends. dsc_4203-srq360-2250x1500The open kitchen with gas appliances and family room with wood-burning fireplace offer wonderful views of the expansive open pool and outdoor entertainment areas, with easy access for true indoor-outdoor living.

Family dining is set at large windows overlooking the pool and lush landscaping and the formal dining room is enhanced by private gardens outside a wall of windows.dsc_4209-srq360-2250x1500

The owner has added a separate in-law suite to the home with a large living room and separate bedroom. The property has a buried propane gas tank and a generator that will power the kitchen and a/c units.

This spacious family home is in the only gated residential community west of Tamiami Trail in northern Sarasota. The Landings is known for its elegant oak trees and mature landscaping throughout the community with beautifully manicured winding roads, lakes, park, nature trails and fishing pier.

The Landings neighborhood is a collection of single family homes, townhouses, villas and condominiums and is a short drive to the Southside shopping district, downtown Sarasota and the world famous sand beaches of Siesta Key.

Just outside the gates of this community is the very private Field Club and within the Landings community is the Landings Racquet Club with 8 Har-Tru tennis courts, pro shop, library, pool and spa. The nearby A+ rated schools make this the perfect location to raise your family. The sellers have had a pre-selling home inspection done and made all the suggested repairs.

Priced at $929,000

the landings

View the full listing HERE