The Moulton Sarasota Real Estate Report – May 2018
Sarasota Housing Market Maintains Momentum
In reviewing the May Sarasota Real Estate Market data, though traditionally a “softer” sales season, momentum of sales, increase in prices and tightening of inventory appears to be carrying on its spring season patterns. The continued growth in median prices has brought total sales volume up nearly 10% for single-family homes and almost 8% in the condominium segment.
Pending sales also pushed forward indicating that our June and July sales activity may also exceed last year’s transaction pace. Recent surveys indicated consumer confidence continues to rise, further fueling the demand for buying a home, and ultimately helping to keep our all-important regional economic engines of real estate and construction on the upward trend.
Analyses of the homebuilder market also reflects their confidence in the market’s demand and ability to absorb new homes and multi-family development. However, costs of lumber and steel, and the ever-present scarcity of skilled workers, worries builders that they may not be able to maintain pricing and pace of construction to meet demand for new homes.
In the Sarasota luxury market, over $1 million listing price, single-family home sales were 26.7% higher than May 2017 and condos saw growth of 17.6%. Inventory has fallen 10.2% and 9.4% respectively, bringing this tier a little closer to a balanced market, and hopefully toward reducing the length of time these prized properties take to find a buyer.
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 on a monthly basis:
- Total Sarasota Real Estate Market dollar volume of $467.5 million in May increased by $39.3 million from the prior year, and increased $2.2 million from April.
- Broken down, single-family sales were $312.5 million and condominium sales were $155 million.
- Single family sales increased $28.2 million or 10% compared to the prior year, and condo sales were up $11.1 million or 7.7% from the prior year. A very healthy status of the market.
- The number of properties sold in May including both single family and condominiums was 1,272, which was 72 more than April and 25 more than a year ago. The sales total included 820 houses and 452 condos.
- Florida’s single-family sales increased slightly 0.8% and condo sales were up 4.1% compared to prior year.
- U.S. single-family sales declined 3% and condo sales increased 3.1%.
- The 2018 monthly year-to-date average for sold properties is 1,086 whereas the 2017 monthly average was 978 and in 2016 the monthly average was 952.
- Of the closed sales in Sarasota last month 58 were for over $1,000,000 or 4.6% of total sales, 38 were houses and 20 were condominiums.
- All cash sales in Sarasota continue to be strong with 36% of single-family and 56% of condo sales closed without a mortgage. By comparison, national all cash transactions were around 20% of total sales.
- Total pending sales of 1,134 properties that went under contract during May increased by 31 transactions from the same month last year.
- Florida’s single-family pending sales fell 0.1% and condos grew 2.2%.
- National pending sales fell 2.2% year-over-year.
- For the first five months of 2018 we have averaged 1,232 pending contracts signed. The monthly average of new pending sales in the Sarasota Real Estate Market in 2017 was 1,043 and in 2016 it was 1,005. This trend is important to watch as it tends to forecast sales activity in the 30-90 days ahead.
- In May, Sarasota’s single-family homes were sold at a median price of $280,750 vs. $260,000 a year ago, an 8% increase. The 2017 monthly median price average for houses sold in Sarasota was $267,043 and in 2016 $249,943.
- In May, Florida median price for single-family homes was $255,000, a 6.7% increase over last year.
- The national median price for existing homes grew by 5.2% to $267,500.
- The condominium median sale price was $234,675 in May vs. $225,700 a year ago.
- The 2017 monthly condominium median average was $225,585 vs. $208,539 in 2016.
- Median price for a Florida condo last month was $188,688 a 6% increase over May 2017.
- U.S. median condo price grew 2.5% in May to $244,100.
- The average sale price for houses sold in Sarasota was $381,076 in May vs. $345,835 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 May of $342,853 vs. $338,511 a year ago. The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
- Of the available inventory for sale 570 properties are listed for over $1 million or only 12.8%.
- Overall properties sold for at 95% of the list price, a consistent ratio on a regular basis. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.
- Currently there is available inventory of 4,444 properties for sale in Sarasota County, there were 4,401 at the end of 2017, 4,595 at the end of 2016 and 3,598 at the end of 2015.
- Total available inventory in the Sarasota Real Estate Market has increased by 155 properties from April, 155 less properties than in May 2017 and basically even with the end of 2017.
- The Realtor Association of Sarasota-Manatee reports that there are 4.2 months of single-family homes inventory and 4.8 month’s supply of condominiums, both under the 6-month level considered a balanced market, and indicating that we are still in a seller’s market.
- Florida currently has 4.0 months of single-family inventory, close to the same as last year, and 5.7 months of condominiums, which is 5% below prior year levels.
- U.S. inventory of all housing types is sitting at just 4.0 months of supply.
- Sarasota County had 1,176 new listed properties in May. The local market averaged 1,147 new listings per month in 2017 and in 2016 it was 1,005.
- Of the total new listings the past month, 72 properties were listed over $1,000,000 or only 6%.
Based on my analysis of the Sarasota Real Estate Market conditions, it appears to me that with the sales and price growth, narrowing of the gap between a buyer and seller’s market, and the consistent addition of new construction, the summer will see the momentum of market growth continue.
Having assisted clients in the region for more than 35 years, I have the knowledge and experience to guide my customers through the labyrinth of searching for or marketing and selling a property in a relaxed and rewarding manner.
As always, I look forward to serving you, your family and friends with their real estate needs.
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