All price points in the Sarasota Real Estate Market experienced increased sales of 11% over the prior year in the month of April. Interestingly, all four regions of the U.S. reported a decline in transactions in the month. The greatest number of properties changing hands in Sarasota were in the $200-400,000 range, which is where many first time homebuyers and young professionals are purchasing, and also the price point where the largest growth in inventory for sale was.
In the million dollar and higher tier, sales growth was more than 80% year-over-year, along with nearly 10% more pending sales inked in the month of April. The pending sales data (contracts closing in the next 30-60 days typically) indicates the luxury market will likely continue to outpace prior year – at least for the near future. Looking at year-to-date data, the higher-end homes and condos appear to be tracking consistently above the same period in 2023 with sales up 33% and pending sales growth of 19.4%.
Despite a considerable increase in available properties for sale, it appears that many buyers in the more modestly priced homes segment are hampered by mortgage rates. Now hovering in the 7% range, with economists projecting relatively little movement before 4th quarter 2024, many are still unable to make a purchase. There is a great deal of pent-up demand in the mid-market price tiers, which is unlikely to be unleashed until rates fall to 6% or below.
Generally, the mid-price points sales trends are tied to rising or declining mortgage rates, whereas luxury market fluctuations tend to be more sensitive to stock market gains or losses. With strong financial markets in the 4th quarter 2023 and 1st quarter 2024, it is believed to have prompted more buying at the top of the real estate market. And when they do buy, the majority are paying cash in Sarasota – 56% of all sales last month – compared to the national average of 28%.
With the inventory of homes and condos returning to a normalized level, buyers appear to be responding to the increase in choices, as evidenced by the growth in sales and contracts signed. Having more properties for sale is also putting pressure on price escalation, forcing many sellers to reprice their listings to remain appealing as competition intensifies for similar properties. I believe that our market has a sizeable pipeline of would-be buyers, leading me to project continued modest increases in year-over-year market performance.
In today’s ever-changing real estate market, the value of partnering with a highly experienced, locally as well as globally connected agent/broker, and a skilled negotiator and advocate cannot be overstated. Having served clients in The Sarasota Real Estate Market for 40 years and carefully analyzing our business conditions, I have developed essential insight to assist both sellers and buyers in achieving their objectives.
Buying homes takes a good bit of strategy. As new listings come on the market there are many eager buyers waiting to jump at a property that can meet most of their wish list. Buyers need to be prepared to communicate their primary goals to their realtor so that we can alert you as soon as we hear of something that is coming on the market or has listed and checks most of your boxes.
Please reach out if you are considering selling your property or buying another – it would be my pleasure to meet with you to discuss your plans. An understanding of the realities, the ability to evaluate and guide client expectations, and expert management in negotiating the purchase or sale of a home or condo, I ensure that your objectives are realized.
And now for my statistical report on the April Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in April was $935 million, which increased by $233 million from a year ago.
- The number of properties sold was 1,252, 122 more than a year ago. The monthly average of sold properties this year is 981. The monthly average in 2023 was 953, in 2022 it was 1,004 and in 2021 1,369.
- Florida’s single-family sales increased 5.8% from last year, and condo sales were 1.9% above last year.
- U.S. sales of single-family homes declined 1.3% and condos were down 7%.
- Of the closed sales in April, 195 were for over $1,000,000. In 2023 Sarasota averaged 126 sales per month over $1 million, in 2022 the average was 111, and in 2021 128.
- Florida homes sold for more than $1 million were 32% higher than April 2023 and condos closed at over $1 million rose 28%.
- In April 1,157 listings of all properties entered into a pending contract, a nominal decrease from a year ago. Year to date there has been an average of 1,144 pending sales per month. There was an average of 1,159 monthly pending transactions in 2023, 968 per month in 2022 and 1,347 in 2021.
- Florida’s single-family pending sales grew less than 1% and condominiums fell 4.3% compared to last year.
- U.S. pending sales in April were 7.4% behind a year ago.
Prices
- Single-family homes were sold at a median price of $540,000. The average monthly median price for houses sold is $524,500 this year. The average monthly median price for 2023 was $510,000, in 2022 it was $493,000, and in 2021 $394,000.
- In April, Florida median price for single-family homes was $429,900, an increase of 4.9% over last year.
- The national median price for existing homes grew 5.6% to $412,100.
- The condominium median sale price in April was $399,000. The average monthly median price for condominiums sold in 2023 was $387,400, in 2022 $383,000 and in 2021 $317,000.
- The median price for a Florida condominium last month was $335,000, a 3.1% increase over April 2023.
- U.S. median condominium price grew 5.4% to $365,300.
- Sarasota houses sold on average for $781,000 in April. The year-to-date monthly average is $769,000. The annual monthly average was $695,000 in 2023, in 2022 $683,000 and 2021 $573,000.
- Condominiums sold for an average price of $700,000 in April. The year-to-date monthly average is $662,000. The annual monthly average was $622,500 in 2023, in 2022 $563,000 and in 2021 it was $527,000.
Inventory
- Currently there are 5,429 properties for sale in Sarasota. At the beginning of this year there were 4,426 listings for sale, 2,431 in 2023 and 829 in 2022.
- The Sarasota market had 1,487 new listings in April. The market averaged 1,318 new listings monthly in 2023, 904 in 2022 and in 2021 it was 1,321.
- Current inventory results in 5.1 months of single-family homes for sale in Sarasota and 6.7 months’ supply of condominiums.
- Florida currently has 4.2 months of single-family inventory and 6.9 month’s supply of condominiums. Inventory of properties selling in Florida for over $1 million has increased approximately 50% over last year.
- U.S. inventory of existing single-family homes has grown 15.4% and condo inventory has grown 23%.
