The Sarasota Real Estate Market’s 2023 results returned to what experts call more “normalized” conditions. With the pandemic frenzy well behind us, the transition from historical lows of inventory and sky-high prices has now stabilized, and regional sales, prices, and inventory have settled into sustainable levels.
With the recent decrease in mortgage rates from nearly 8% to 6.82% in December, and despite a slight uptick in interest rates this week, economists are forecasting three more declines in 2024. This is resulting in more would-be sellers sitting on ultra-low mortgages beginning to consider listing their properties for sale. Many who have been priced out of mid-market purchases because of the mortgage rate costs are also re-entering the buyer marketplace.
The 4th quarter of 2023 gives a good look at why I feel 2024 will see continued strength in the luxury segment. Compared to 2022 when there was a noticeable slowdown in sales, data included in the attached chart clearly demonstrates a very positive trendline in the luxury market in Sarasota. Wealthy buyers are typically unaffected by mortgage rate fluctuations, as they are more inclined to purchase their properties with cash.
With inventory in the $1 Million and over price points up 63% over prior year, sales growth of 76%, and new contracts signed increasing 89% in the luxury segment, we are moving into the new year with positive momentum.
Even looking at the full range of price points in the Sarasota Real Estate Market the news is positive for the last quarter. Listings at year-end grew 82% over December 2022, sales increased 13% in the 4th quarter, and pending contracts signed were up nearly 21%. All signs of market strength.
Despite the annual growth in homes and condos for sale in Sarasota
, we have not yet reached market equilibrium with demand still well outpacing supply. Along with a new group of buyers motivated by lower interest rates, this will continue to put upper pressure on prices as we move into 2024. The graph here shows projections of U.S. housing price appreciation from eight analysts.
A recent poll of members of the U.S. Home Builders Association indicated strong confidence in the new homes market. New home sales ended the year 11% higher than 2022. The expectation is that with buyers still finding a lack of inventory of existing homes, and the added appeal of customizing the design instead of managing renovations, along with attractive amenities in new communities, new home demand and sales will continue to grow in 2024.
Based on a review of data, insights, and market expert forecasts, I believe The Sarasota Real Estate Market is poised for a promising year ahead.
Media attention on the housing market has focused on attention grabbing headlines and are often confusing to readers. The unique conditions in our hyper-local industry are important to understand. 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.
As we are in our busy winter and spring selling seasons, those considering bringing their property to market need a seasoned real estate professional to help with an assessment of your property, potential improvements to consider prior to listing, and right-pricing to ensure your property is primed to sell.
Buying homes this season will take some strategy, since inventory of existing homes is still tight. 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 “must haves”, “nice to have”, and “bonus haves” to their realtor so that they can alert you as soon as they hear of something that is coming on the market or has listed that checks most of your boxes.
Please reach out if you are considering selling your home or buying another – it would be my pleasure to meet with you to discuss your goals. 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 goals are realized.
Below is a snapshot of the Florida Association of Realtors data showing Sarasota’s existing homes
and condos activity selling for over $1 Million Year-to-Date as of December 2023:
And now for my statistical report on the December Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in December was $619.6 million which increased by $136 million over prior year.
- The number of properties sold was 836, 75 more than a year ago. The monthly average of sold properties this year was 953. The monthly average in 2022 was 1,004 and in 2021 1,369.
- Florida’s single-family sales decreased 3.8% from last year, and condo sales were 6.2% below last year.
- U.S. sales of single-family sales declined 6.1% and condos were down 7.3%.
- Of the closed sales in Sarasota in December, 172 were for over $1,000,000, which was nearly double December 2022. 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 24.9% higher than December 2022 and condos closed at over $1 million grew 36.3%.
- In December 678 listings went to a pending contract, an increase of 34 transactions from a year ago. There was an average of 929 monthly pending transactions in 2023, 968 per month in 2022 and 1,347 in 2021.
- Florida’s single-family pending sales decreased 3.3% and condominiums fell 5.5% compared to last year.
- U.S. pending sales in December were 1.3% ahead of a year ago.
Prices
- Single-family homes were sold at a median price of $519,000. The average monthly median price for houses sold this year was $510,000. In 2022 it was $493,000 and in 2021 $394,000.
- In December, Florida median price for single-family homes was $410,000, a 3.8% increase over last year.
- The national median price for existing homes grew 4% to $387,000.
- The condominium median sale price for December was $468,933. The average monthly median price for condominiums sold was $387,400 in 2023. In 2022 $383,000 and in 2021 $317,000.
- The median price for a Florida condominium was $330,000, a 6.5% increase over December 2022.
- U.S. median condominium price grew 8.2% to $343,800.
- Sarasota houses sold on average for $713,000 for the month. The annual monthly average was $695,000, in 2022 $683,000 and 2021 $573,000.
- Condominiums sold for an average price of $788,000 last month. The annual monthly average was $622,500, in 2022 $563,000 and in 2021 it was $527,000.
Inventory
- Currently there are 4,426 properties for sale in Sarasota. At the beginning of this year there were 2,431 listings for sale and 829 at the beginning of 2022.
- The Sarasota market had 1,107 new listings in the past month. The market averaged 904 new listings monthly in 2022 and in 2021 it was 1,321.
- Current inventory results in 4.4 months of single-family homes for sale in Sarasota and 5.2 month’s supply of condominiums. 2023 started with 2.5 months of inventory for houses and 2.2 months for condominiums.
- Florida currently has 3.6 months of single-family inventory and 5.1 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased about 35% over last year.
- U.S. inventory of existing single-family homes has grown 2.4% compared to last year and condo inventory grew 3.9%.
