The Moulton Sarasota Real Estate Report March 2021
Surging Sales and Prices, Scant Inventory
The Sarasota Real Estate Market had 40.2% more existing single-family home and 62.6% more condominium sales in March than were recorded in March 2020. And inventory at the end of March was almost 75% lower – a loss of more than 3,000 properties for sale – than March of last year.
As last March was the start of our year of the many COVID related disruptions in our lives, certain of our data through the rest of this year will show some remarkable variations. However, sales transactions last year were more than 10% higher than those in 2019, indicating that this year’s growth is impressive.
Prices have also continued their record-breaking rise. The median price for an existing single-family home in the Sarasota Real Estate Market is now $379,695, and condos come in at $289,750, both at nearly a 20% leap from last year’s median.
Based on the number of contracts signed in March this year, closings over the next few months will reflect incredible growth over last year. The upsurge is not just a result of the market’s near shut-down during the early months of the pandemic, it was also triggered by the extraordinary demand that has been created from buyers seeking refuge from high-tax and densely populated cities and states, as well as those accelerating their future plans to relocate and/or retire to our highly desirable region. When compared to 2019 when our market had more “normal” conditions, pending sales in March 2021 were 26% higher.
While new listings in March were much greater than during last year’s market pause and 10% more than 2019, they were still well short of the pace of sales and pending sales that we have had these last six months. With an inventory of existing properties at a level equal to just one month’s buyer demand, the market conditions continue to strongly favor sellers.
Demand for travel to our region is expected to remain extremely strong into the traditionally softer shoulder and summer season, so I do not see the demand from those looking to relocate weakening anytime soon. As many of our residents are planning to return to their “summer” residences, I am finding some considering listing their properties during their leave to avoid the disturbance that showings can have when they are otherwise living in their homes.
I believe that this summer is going to be an excellent season of selling, and I encourage any home or condo owners considering a sale to think about this high-demand period as an ideal time to list their property. This extraordinary volume of buyers for Sarasota Real Estate will not last forever – so why wait!
On the other hand, as a buyer in this most unique market, it is crucial that you have an expert realtor at your side. Never before have we seen such heightened urgency in showings of our listings, number of “bids” at or above list price, contingency waivers to expedite closing, and other unusual conditions. The risks of rushed decisions are high, and knowing you have a representative to ensure your interests are being carefully managed cannot be overstated.
As you consider your real estate goals for the year ahead, having valuable insight and guidance from a highly skilled real estate professional is vital. With decades of experience managing hundreds of buying and selling transactions, analyzing and experiencing the Sarasota Real Estate Market’s variability, my knowledge throughout the region can help.
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.
And now for my statistical report on the March 2021 Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in March was $1,137,100,000 which increased by $620 million or 120% from a year ago.
- Broken down, single-family sales were $708.6 million and condo sales were $428.5 million for the month.
- The volume in single-family was up $363 million from last year while condo volume was up $257.7 million.
- The number of properties sold in March was 1,907, which was 619 more than a year ago. The sales total includes 1,169 houses (up 40.4%) and 738 condos (up 62.6%), both well above below last year. The monthly sold properties average was 1,179 in 2020 and 1,074 in 2019.
- Of the closed sales in March, 219 were for over $1,000,000 – 138 were houses and 81 were condominiums. Of note were the more than 30 closings in the new Sarasota Ritz Residences development with prices ranging from $2.7 million to $6 million. In 2020 Sarasota averaged 50 house sales and 23 condo sales per month over a $1 million.
- Florida’s single-family sales in March increased 23.3% from last year, and condo sales were 52.6% above last year. Homes sold for more than $1 million were up by more than 150% over prior year, and condos closed at over $1 million rose 136%. Not quite as much luxury tier growth as we experienced in Sarasota, but still impressive.
- U.S. single-family sales grew 10.4% in March and condos were up 29.1%. Not nearly the extraordinary increase the Sarasota region and state of Florida experienced.
- Last month 1,776 listings went pending, an increase of 880 transactions from a year ago. For 2020 the monthly average for pending sales was 1,264.
- Florida’s single-family pending sales increased 48.2% over last year and 14% over 2019, and condos rose 126.4% over March 2020 and were 47% higher than 2019.
- U.S. pending sales in July were up 23.3% compared to a year ago.
Prices
- Single-family homes were sold at a median price of $379,695. The 2020 monthly median price for houses sold was $321,000.
- In March, Florida median price for single-family homes was $327,000 an 18.9% increase over last year.
- The national median price for existing homes grew 18.4% to $334,500.
- Sarasota’s condo median sale price was $289,750 in March. The 2020 monthly median price was $255,000.
- Median price for a Florida condo in March was $242,000, a 15.2% increase over March 2020.
- U.S. median condo price grew 9.6% to $289,000.
- Sarasota houses sold on average for $606,126 where the 2020 monthly average was $455,000.
- Condos sold for an average price of $580,688 last month. The condo monthly average sale price in 2020 was $382,000. This large variation was likely affected by the large number of closings in the recently completed Ritz development mentioned previously.
Inventory
- Currently there are 1,157 properties for sale in Sarasota. This is a decrease of 216 listings from the month before. There were 2,272 listings at the end of 2020, 4,086 listings at the end of 2019 and 5,401 listings at the end of 2018. This extreme decline in available existing homes and condos explains the seller’s market we are in locally, as we have about half as many active listings now as we had at the beginning of the year.
- Of the available inventory for sale, 294 properties are listed for over $1 million or only 25%. Of the active listings over $1,000,000, 193 are houses (59% fewer than last year), and 101 are condos (45.4% less than last year).
- The Sarasota market had 1,638 new listings the past month. The market averaged 1,040 new listings in 2019. Of the new listings the past month 192 properties were listed over $1,000,000, which is below pace of monthly sales we have been experiencing.
- Current inventory results in 0.8 months of single-family homes for sale in Sarasota and 1.1 month’s supply of condominiums.
- Florida currently has 1.2 months of single-family inventory and 2.8 month’s supply of condominiums. Inventory of Florida properties selling for over $1 million have decreased almost 40% from last year.
- U.S. inventory of existing single-family homes fallen 28.2% to just 2.1 months of properties available for sale.
