After a robust Sarasota Real Estate Market for the first half of 2015, industry authorities were expecting moderation this last month. However, yet again the Sarasota area set a brisk sales pace, prices rose markedly, and inventory contracted even further.
In one recent survey of more than 100 national economists, their confidence in the market continuing to remain healthy was clear. One of the most predictive assertions is a cumulative appreciation in home values of more than 18% over the next five years. With the worrisome inventory drought in Sarasota, that projection is not at all hard to believe.
The persistent tight inventory and a housing pipeline that is not moving at a pace adequate to alleviate the divide between eager buyers and available properties, our region’s “seller’s market” is expected to continue for some time. Though home builder confidence is at one of its highest levels in history, there is just not enough product underway to offset the deficiency.
In today’s Sarasota Real Estate market, if a seller’s existing property is in a coveted location, is in good condition, and a fair price is set, they are in a healthy bargaining position.
It takes time to bring a property to market. If you are considering listing your home for the first time, preparing the home or condominium for sale, including making repairs and freshening, taking quality photography, and other pre-listing activities can easily take a month or more. With our peak selling season quickly coming back around, if you are a potential seller, it is time to begin meeting with your realtor. I recently published an article on preparing your home for sale. If you are thinking of selling, here’s the link.
The following data reflects reporting through the local, state and national realtor associations, as well as a number of other statistical providers nationwide. In the real estate industry, there is no shortage of analysts and resources to be sure! As one of the nation’s most important economic indicators, everyone like to keep their eye the housing market!
July Market Data
- Total sales in July in the Sarasota Real Estate Market increased an amazing 30% from last July.
- The national picture was also impressive with 10.3% more transactions than last year, the highest number since February 2007.
- In Florida, single-family homes saw a 21.8% increase in sales over the prior July, and condominium sales were almost 14% higher.
- Distressed sales (short sales and bank owned) as a percentage of total sales have continued to fall. In July those sales were 14% of total sales in Sarasota, considerably below the 50% mark at the bottom of our housing market, and 20% of sales a year ago. Most of the sales of distressed properties are in price points below $500,000.
- Distressed sales nationwide represented 7% of sales, a drop from 9% last July.
According to Trendgraphix, pending sales are continuing to grow over prior year, even in this traditionally “softer” selling season. With 23% more properties holding pending contracts, this forward looking statistic tells us that over the next few months as these properties close, we should continue to see records set in the Sarasota Real Estate Market. As a comparison, Florida’s pending sales index only rose about 5% over the same month last year.
- Median prices have been trending upwards each month this year. The price for single-family homes was $219,500, an increase of 9.2% over July 2014 of $201,000.
- Florida’s median single-family home price was $199,900 last month, an 8.1% increase over prior year.
- The nation’s median price for single-family sales was $237,700 and 6.6% over July 2014.
- Sarasota’s condominium median price was $190,000 vs. last year’s $205,000.
- In comparison, Florida’s median condo price is $150,000, a 9.1% increase.
- The median price of US condominiums last month was $226,500.
- The average sale price for houses in Sarasota was $308,356 in July vs. $302,394 a year ago, and they were sold at 95.3% of the list price.
- With condominiums, the average sale price was $275,900 vs. $315,677 a year ago and they sold at 93.3% of list price.
- 45% of the closed sales were paid in cash, broken down it was 60% of condos and 40% of single-family homes. According to a recent article in the Wall Street Journal, The Sarasota MSA had the 2nd highest number of cash sales of the nation’s 100 largest metropolitan areas.
The Sarasota Real Estate Market, especially in the most desirable locations nearest the coastline, is desperately low on listings. As noted earlier, we are in a seller’s market, meaning the advantage is currently making it more difficult for buyers to find their ideal property at their intended price. If you are one of those who has yet to put your property on the market and your goal is to buy something different for yourself, don’t forget that the longer you wait, the less chance you will find the property that meets your “wants” – and within the price range you are budgeting.
- In July, Sarasota Real Estate inventory fell 4% from month-end June, which is a 15% drop from the end of 2014.
- Total inventory in the area is currently at a 3.7 month supply, well below a balanced market, which is defined by a 6-month supply of inventory.
- Properties under $500,000 have just 2.5 month’s supply.
- In the category $500,000 – $1 million, inventory is 6 months.
- For properties over $1 million, there is a 12-month supply.
- On a national scale, supply fell 4.7% from July 2014.
- In Florida, single-family home inventory is 4.5 months of supply and condominiums are sitting at a 5.3 month supply.
- In the Sarasota Real Estate Market distressed inventory is only 4% of the total available inventory, compared to 17% last year and 50% in 2011.
The many critical data points that I monitor are going in the right direction, except inventory of course. There are always potential outside stimuli that may create headwinds – economic, political, foreign influences – however, it does not appear that with our many positive Sarasota Real Estate Market indices that our region will do anything but continue to fly high, as it did in July!
Summer is waning and we are inching closer to another peak selling season. Whether you, a neighbor, family member or friend are considering buying or selling Sarasota Real Estate, my more than 30 years of wisdom and experience, local knowledge and relationships can help to create the best results!
The following statistical data is provided through the Realtor Association of Sarasota and Manatee for properties throughout Sarasota County. The table summarizes what happened in each price segment. The Sold, Pending and Listed columns are sales and new listings for the month of the report, and the Pending Total and Listed Total are the current totals of each at the report’s month end.
SARASOTA COUNTY MARKET REVIEW July 2015