The Moulton Sarasota Real Estate Report – January 2019
Sales Activity Shrinks Again
For a second month in a row the Sarasota Real Estate Market saw a dip in number of transactions. For those that read my report last month, much of the same applies – there were several newly built luxury condominium projects that were completed in the late fall 2017 and early winter 2018. The closings and buyer move-ins occurred mostly through the first quarter of 2018. January 2018 condominium sales grew by more than 60% over prior year. For condos over $1 million in price there were 35 units sold in January 2018 compared to this year’s 11, which is more typical of this month’s activity in past years.
When reviewing total dollar volume of transactions in January, single-family sales was nearly equal to last year, while condominium sales volume fell by 50% this year. I see this as more evidence of the effect that the new buildings had on the overall market. With a number of new luxury condominiums already under construction, I expect this same upshot when the time comes to occupy them over the next two-three years.
The Sarasota Real Estate Market has maintained a healthy price appreciation, though it is showing signs of deceleration. The softening of price appreciation is most likely a result of the activity in new listings. Inventory is nearing the theoretical balanced market when neither buyers or sellers are favored, which is encouraging sellers to take a closer (and more realistic) look at comps to price their properties to sell.
In reviewing our regional, state and national real estate market reports, it is my opinion that the Sarasota Real Estate Market remains extremely well positioned to continue a steady growth trajectory through the year ahead. I have seen incredible growth in buyer interest so far this season, and believe that with consumer confidence remaining high, increased demand from states being affected adversely by the new taxation policies, interest rates staying low, and a stabilized market locally are all reasons to be optimistic.
And now for my statistical report on the January Sarasota Real Estate Market activity:
- Total Sarasota Real Estate Market dollar volume of $264.7 million in January decreased by $82.9 million from the same month a month ago, a 24% decrease.
- Broken down, single-family sales were $189.7 million and condominium sales were $75 million.
- The number of properties sold in January was 678 which was 177 less than a year ago, a 21% decrease The sales total includes 460 houses and 218 condos.
- Florida’s single-family sales decreased 6.2% and condo sales were down 10.9% compared to prior year.
- S. sales fell to a three-year low with single-family sales declining 8.4% and condo sales fell 9.5%.
- The 2018 monthly average for sold properties in Sarasota was 1,001.
- Of the closed sales in Sarasota last month, 40 were for over $1,000,000, 29 were houses and 11 were condominiums.
- In 2018 Sarasota averaged 29 house sales a month for over $1 million and 17 condo sales over $1 million, a small portion of our overall sales.
- Listings that went pending the past month were 1,124 and decreased by 393 transactions from the same month last year, though were 116 more than December.
- Florida’s single-family pending sales also fell with 2.4% fewer single-family homes and 10.3% fewer condo contracts written compared to last year.
- U.S. pending sales have fallen the last 12 months, in January down 2.3% compared to prior year.
- For 2018 the monthly average for pending sales was 1,031.
- In January, Sarasota’s single-family homes were sold at a median price of $286,600, an increase of nearly 4%. The 2018 monthly median price for houses sold was $281,662.
- In January, Florida median price for single-family homes was $249,900 a 4.1% increase over last year.
- The national median price for existing homes grew by 3.1% to $249,400.
- The condominium median sale price was $240,000 in January, nearly equal to last year. The 2018 monthly median average was $230,989.
- Median price for a Florida condo last month was $182,500, a 2.8% increase over January 2018.
- U.S. median condo price was up nearly equal to last January, $233,000.
- Houses sold for $412,457 in January and the monthly average sale price for houses sold in 2018 was $384,110.
- Condominiums sold for an average price in January of $344,209. The condominium monthly average sale price sold in 2018 was $355,047.
- Currently there is available inventory of 5,612 properties for sale in Sarasota County. There were 5,401 at the end of 2018 and 4,401 at the end of 2017. We are heading towards a buyer’s market with the rising inventory. This will give buyers more choices and puts pressure on a seller to be conscious of not overpricing their property relative to market values.
- Of the available inventory for sale, 696 properties are listed for over $1 million or only 12%. 516 of the active listings over $1,000,000 are houses and 180 are condominiums. Based on the past months 40 sales over $1 million this amounts to 17 months of inventory.
- Sarasota County had 1,926 new listed properties in December, a significantly higher number than any month in the past couple years. The local market averaged 1,289 new listings in 2018. Of the new listings the past month 156 properties were listed over $1,000,000.
- Current inventory results in 5.4 months of single-family homes for sale and 6.1 month’s supply of condominiums. Each month lately has seen this number close in on becoming a balanced market, favoring neither buyers or sellers.
- Florida currently has 4.3 months of single-family inventory and 6.3 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased more than 9% over last year.
- U.S. inventory of all housing types is sitting at 3.9 months of supply.
In today’s somewhat confusing and often volatile economic environment it is easy to become a bit anxious. Having served clients in The Sarasota Real Estate Market for more than 37 years and carefully watching and examining business conditions, I have developed essential insight to aid both buyers and sellers in achieving their objectives in today’s shifting 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 understated. I look forward to working with you, your family and friends in achieving your goals in acquiring or selling your property.
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