The Moulton Sarasota Real Estate Report February 2021
Sales Remain Strong Despite Scarce Inventory
With inventory of existing homes and condominiums for sale hitting record lows, The Sarasota Real Estate Market still had nearly 40% more sales last month than February 2020.
Inventory of existing homes and condominiums at the end of February 2021 fell almost 70% from prior year. At the luxury price point where most of my transactions take place, there are now just 324 properties available to choose from in the entire Sarasota area, compared to 665 last year.
In the last several months the market has changed so dramatically. From simply being a market with moderately low inventory for sale, to a frenzied one in which my listings receiving multiple “bids” even before we are able to complete photography of the property, and my buyer clients who hesitate even overnight are losing out on fabulous properties. Note I used the word “bids” – yes, traditionally it is an “offer” but in this market that is too gentle a word!
If you are ready to buy and you find something that checks all your boxes, this is not an environment that allows for indecision. My advice to buyers today is to set your bid at the highest price you are willing to pay for the property – at least if you are not successful you won’t be disappointed that “you” lost the opportunity…there was just someone willing to pay more.
This year is very different with median time to contract cut in half, and list-to-close times narrowing significantly because of the low inventory. But it is also a result of the pandemic driving more purchasers to our area from high-tax/high-density locations, and because many had already made plans to buy before the COVID crisis hit, they just couldn’t make that happen in 2020.
Owners considering selling their properties are absolutely in the driver’s seat. When inventory is plentiful, our job as realtors is to know each property in your comp set and advise you on improvements and possible alterations you would require to find a buyer. Today with our low inventory, while your property still needs to be in good condition, clean and ready for showings, the pressure is not as great on sellers to make investments in their homes before listing.
These conditions will not last forever, though. As new home and condo construction continues to boom in the Sarasota area, inventory conditions in the existing home market will not be as critical. Home builders continue to have confidence that demand for new homes will persist. The National Association of Home Builders and Census Bureau estimate that at the current pace of home sales, there is 4.5 months of inventory of new homes for sale, well above the less than 1 month of supply of existing homes in the Sarasota Real Estate Market.
I encourage those that are still hesitating to list their property to at least explore the opportunities for selling your home and finding your next one. It would be my pleasure to discuss your goals for both and to help you to maneuver this unusual real estate market.
While this last year has created unimaginable disruption in our lives, as vaccination rates increase and economies begin to open again, strong demand for housing in our region is expected to continue.
As you consider your real estate goals for the year ahead, having valuable insight and guidance from a highly skilled real estate professional is vital. With decades of experience managing hundreds of buying and selling transactions, analyzing and experiencing the Sarasota Real Estate Market’s variability, my knowledge throughout the region can help.
Whether looking to relocate to a new neighborhood, considering upsizing or downsizing, or adding to your real estate portfolio, I would be happy to discuss your next steps with you.
And now for my statistical report on the February 2021 Sarasota Real Estate Market activity:
- Total market dollar volume in February was $737.2 million which increased by $164.5 million from January and $314.1 million for a year ago.
- Broken down, single-family sales were $447.8 million and condo sales were $289.4 million for the month.
- The volume in single-family was up $187.8 million from last year while condo volume was up $126.4 million.
- The number of Sarasota homes and condos sold in February was 1,349, which is 355 more than a year ago (up 36%). The monthly sold properties average was 1,179 in 2020 and 1,074 in 2019.
- Florida’s single-family sales increased 15.7 from last year, and condo sales were 28.7% above last year. Homes and condos sold for in excess of $1 million were more than double prior year.
- U.S. single-family sales rose 8% and condos were up 18.6%, a pace well below what we are experiencing in the Sarasota Real Estate Market.
- Of the $1 million+ closed sales in February, 67 were houses and 53 condominiums.
- In 2020 Sarasota averaged 50 house sales and 23 condo sales per month over a $1 million.
- In February 1,731 listings went pending, an increase of 285 transactions from a year ago. For 2020 the monthly average for pending sales was 1,264.
- Florida’s single-family pending sales were up 10.9% and condos properties going under contract in February rose 35.4% compared to last year.
- U.S. pending sales of homes and condos fell .5% in February from prior year.
- Single-family homes were sold at a median price of $359,900 and in 2020 the monthly median price for houses sold was $321,000.
- In February, Florida median price for single-family homes was $314,900, which is a 16.6% increase over last year.
- The national median price for existing homes grew 16.2% to $317,100.
- Sarasota’s condo median sale price was $283,750 in February. The 2020 monthly median price was $255,000.
- Median price for a Florida condo last month was $233,240, a 16.6% increase over February 2020.
- U.S. median condo price was $280,500 in February, a 12.3% increase.
- Sarasota houses sold on average for $538,892, compared to the 2020 monthly average of $455,000.
- Condos sold for an average price of $558,681 last month. The condo monthly average sale price in 2020 was $382,000.
- Currently there are 1,373 properties for sale in Sarasota. This is a decrease of 463 listings from the month before. There were 2,272 at the end of 2020, 4,086 listings at the end of 2019 and 5,401 listings at the end of 2018. This explains the seller’s market we are in locally.
- Of the available inventory for sale, 324 properties are listed for over $1 million. Of the active listings over $1,000,000, 206 are houses and 118 are condos. Availability of inventory in this tier of the market has fallen 50% from prior year levels.
- The Sarasota market had 1,355 new listings the past month. The market averaged 1,040 new listings per month in 2019.
- Current inventory results in 0.9 months of single-family homes for sale in Sarasota and 1.5 month’s supply of condominiums.
- Florida currently has 1.3 months of single-family inventory and 3.4 month’s supply of condominiums. Inventory of properties selling for over $1 million have decreased over 40% compared to last year.
- U.S. inventory of existing single-family homes and condos has fallen 29.5% to just 2.0 months of supply.