The Moulton Sarasota Real Estate Report – June 2018
Sarasota Market Continues Price Appreciation
The Sarasota Real Estate Market has seen consistent price appreciation in the last several years. However, unlike some parts of the country that experience seasonal peaks and valleys, our region is one of the most stable of the high-demand communities that I keep an eye on. Seeing steady growth in home values, along with consistent inventory levels and sales growth has set our local real estate market on solid fundamentals, which will serve us well through the balance of our summer season.
Strong consumer confidence is driving steady demand from buyers for both existing and new homes. Home sellers are also feeling upbeat. A recent study found that many would-be sellers have decided to stay in place waiting to find just the right property, resulting in one of the longest average ownership periods in decades. The upside for sellers? Average return on investment has also grown – now said to be in excess of 30% for a home that has been owned eight years.
The most recent survey by the National Home Builder Association showed continued confidence from builders, despite some rising costs for materials and ever-present shortage of skilled labor. Median prices for new homes are averaging 15-20% higher than an existing home, which is a smaller gap than had been seen last year. The national supply of new homes is growing and is currently said to have 5.7 months of available inventory. However, it is important to note that the inventory count includes both completed and homes under construction.
The statistical information below is a compilation from a number of local, regional and national resources that I monitor every month to evaluate the market.
Sales
- Total Sarasota Real Estate Market dollar volume of $457.5 million in June increased by $39.3 million from the prior year and decreased $10 million from May.
- Broken down, single-family sales were $330 million and condominium sales were $127.5 million.
- Single family sales increased $48 million or 17% compared to the prior year, and condo sales were down $6.6 million or 5% from the prior year.
- Florida’s single family sales volume grew 6.3% and condo volume was up 10.9%.
- The number of properties sold in June including both single family and condominiums was 1,182, which was 90 less than May and 27 more than a year ago. The sales total included 798 houses and 384 condos.
- Florida’s single-family sales decreased 1.3% and condo sales were up 1.2% compared to prior year.
- U.S. single-family sales declined 2.3% and condo sales fell 1.6%.
- The 2018 monthly year-to-date average for sold properties is 1,102 whereas the 2017 monthly average was 966 and in 2016 the monthly average was 952.
- Of the closed sales in Sarasota last month 56 were for over $1,000,000 or 4.7% of total sales, 42 were houses and 14 were condominiums.
- All cash sales in Sarasota continue to be strong with 34% of single-family and 58% of condo sales closed without a mortgage. By comparison, national all cash transactions were 22% of total sales.
- Total pending sales of 1,070 properties that went under contract during June decreased by 17 transactions from the same month last year.
- Florida’s single-family pending sales fell 3.3% and pending condos sales were virtually equal to last year.
- National pending sales fell 2.5% from prior year’s contract signing activity.
- For the first six months of 2018 we have averaged 1,205 pending sales. 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.
Prices
- In June, Sarasota’s single-family homes were sold at a median price of $279,500 vs. $275,000 a year ago. The 2017 monthly median price average for houses sold in Sarasota was $267,043 and in 2016 $249,943.
- In June, Florida median price for single-family homes was $260,000, a 6.3% increase over last year.
- The national median price for existing homes grew by 5.2% to $279,300 – this was the 76th consecutive month of year-over-year price appreciation.
- The condominium median sale price was $221,250 in June vs. $215,500 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 $190,000, a 7.5% increase over June 2017.
- U.S. median condo price grew 4.9% in June to $258,100.
- The average sale price for houses sold in Sarasota was $413,500 in June vs. $359,226 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 June of $332,009 vs. $362,344 a year ago. The 2017 monthly average price for sold condominiums is $362,378 vs. $325,802 in 2016.
- 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.
Inventory
- Currently there is available inventory of 4,270 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 decreased by 174 properties from May, and 70 less properties than a year ago.
- Of the available inventory for sale 561 properties are listed for over $1 million or only 13%. 436 of the active listing are houses and 125 are condominiums.
- Inventory of single-family homes for sale in the Sarasota Real Estate Market listed over $1,000,000 has fallen 5.2% compared to last year.
- Luxury condos in the price tier declined more than 23%. The drop in condominium inventory at the higher price points was reflective of considerably fewer new properties coming to market in the last few months when compared to prior year new listings.
- The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 4.5 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 3.9 months of single-family inventory, close to the same as last year, and 5.5 months of condominiums, which is 2.8% below prior year levels.
- U.S. inventory of all housing types is sitting at 4.3 months of supply, about the same level as last year at this time.
- Sarasota County had 1,134 new listed properties in June. 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, 74 properties were listed over $1,000,000 or only 6.5%.
Market experts continue to project housing market growth through the 2nd half of 2018. As noted earlier in this report, consumer confidence in the economy and strong employment numbers are fueling home buyer interest.
With the Sarasota Real Estate Market still well below the 6-month inventory level, presumed to be the sign of a balanced market, I expect our prices to continue their appreciation, albeit at a modest and sustainable pace. Our region remains fundamentally strong allowing for more growth in the months ahead.
Having assisted clients in the region for more than 35 years, I have the knowledge and experience to guide my customers through the complex process 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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