February chalked up another month in which sales and contracts signed exceeded the number of new listings. A recent report from Trendgraphix showed the Sarasota Real Estate Market had less than 500 existing homes and condos available for sale.
In the chart shown here you will see the dramatic decline in available inventory over the last five years. Also of noteis that for the last nearly 18 months, new listings have been nearly equal to the number of properties going under contract each month.
With the staggering surge in our area’s demand after the onset of the pandemic, these new residents and our locals seeking more space for their new remote-work lifestyles, chipped away at the remaining available properties leaving us with the lowest inventory on record.
I would typically be seeing a swell in new listings between December and February, as sellers look to take advantage of our active peak spring season. This year is anything but normal. While there are a few rare new listings that would meet the interest of my pool of eager buyers, we are still facing feverish bidding wars and properties going under contract in as little as a few hours after hitting MLS.
As evidence, my recent listing had 15 showings in the first 24 hours after listing, had several attractive offers, and was under contract in 48 hours.
When trying to compare February 2021 to 2022, it is important to remember the incredible spike in demand that began in late fall 2020 and peaked last spring. Sales this February, though less than 2021, were still greater than the pre-pandemic previous four years, and list-to-sale periods continue to contract.
As a result of the deficiency of inventory, prices continued to rise in February. Single-family homes traded at 25% higher prices than previous year, and condos rose nearly 30%. The escalation is not expected to continue at this fast a pace but will remain above historical growth rate. As properties remain scarce, prices have no where to go but up – the market simply cannot satisfy the unmet demand for many months.
New home builders are facing production delays because of supply chain issues – and it’s not just lumber anymore – garage doors, windows, siding, roofing material, drywall, appliances, and more are not only delayed in delivery, but costs are also rising markedly. However, recent polls from the Home Builder Association indicates confidence is still very high that demand will not wane for the foreseeable future, and permitting for new single-family and multi-family developments remains solid.
As you consider your real estate goals for the year ahead, whether buying or selling, seeking property to build, an existing home or condo, or new development, having a professional with a critical understanding of the market’s current extraordinarily unconventional realities, and able to set expectations based on pragmatic and practiced conclusions will ensure your goals are achieved.
With decades of experience managing hundreds of transactions, and experiencing the Sarasota Real Estate Market’s variability, my knowledge throughout the region can help. Close relationships with my other top-performing agents in the region allows me to bring qualified buyers and sellers together rapidly and successfully in these unusual market conditions.
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 so that when the right opportunity comes along, you will be first to know!
And now for my Real Estate Market statistical report for February 2022:
- Total market dollar volume in February was $610 million which increased by $55 million from January, and $127 million from a year ago.
- Broken down, single-family sales were $436.8 million, and condo sales were $173.2 million for the month.
- The number of properties sold in February was 1,005, which was 344 less than a year ago. The sales total includes 691 houses and 314 condos. The monthly sold properties average was 1,369 last year, 1,179 in 2020 and 1,074 in 2019.
- Florida’s single-family sales decreased 1.2% from last year, and condo sales were 3.6% below last year.
- U.S. sales of single-family homes rose 15.5% and condos were up 10.9%.
- Of the closed sales in February, 87 were for over $1,000,000 – 60 were houses and 27 were condominiums.
- In 2021 Sarasota averaged 128 sales per month over a $1 million.
- Florida’s homes sold for more than $1 million were 21.1% higher than February 2021, and condos closed at over $1 million rose 8.2%.
- In February 1,210 listings went to a pending contract, a decrease of 521 transactions from a year ago. For 2021 the monthly average for pending sales was 1,122 and in 2020 it was 1,264.
- Florida’s single-family pending sales decreased 12.6% and condos fell 17.1% compared to last year.
- U.S. pending sales in July were down 5.4% compared to a year ago.
- Single-family homes were sold at a median price of $449,900 – 25% above February 2021. The 2021 monthly median price for houses sold was $394,000.
- In February, Florida median price for single-family homes was $381,481, a 21.1% increase over last year.
- The national median price for existing homes grew 15.5% to $363,800.
- The condo median sale price was $368,630. The 2021 monthly median price was $360,000.
- Median price for a Florida condo was $290,000, an increase of 24.3% over February 2021.
- U.S. median condo price grew to $305,400, a 10.9% increase.
- Sarasota houses sold on average for $632,075 where the 2021 monthly average was $573,000 and in 2020 it was $321,000.
- Condos sold for an average price of $551,588 in February. The condo monthly average sale price in 2021 was $527,000 and in 2020 it was $382,000.
- Currently there are 718 properties for sale in Sarasota. This is a decrease of 64 listings from the month before. There were 829 listings at the end of 2021, 2,272 at the end of 2020, 4,086 at the end of 2019 and 5,401 at the end of 2018.
- Of the available inventory for sale, 234 properties are listed for over $1 million. Of the active listings over $1,000,000, 157 are houses and 77 are condos.
- In February, The Sarasota market had 1,247 new listings. The market averaged 1,321 new listings monthly in 2021.
- Current inventory results in 0.6 months of single-family homes for sale in Sarasota and 0.5 month’s supply of condominiums.
- Florida currently has .9 months of single-family inventory and 1.2 month’s supply of condominiums. Inventory of single-family homes selling for over $1 million fell 24.1% and condos for sale were 33.7% fewer than last year.
- U.S. inventory of all housing types fell 15.5% to 1.7 months of inventory.