The Moulton Sarasota Real Estate Report – June 2015
Brisk sales, consistently rising prices and limited inventory all contributed to another robust month in the Sarasota Real Estate Market. June activity created quite a “splash” of positive energy to kick off our summer selling season. With the first-half of the year now behind us, the region has shown its strength, stability and sustainability, and pace that is tracking towards a record-setting year.
Results recorded in June bested records set between 2004 and 2006, when the market was fueled by speculation. The vast majority of today’s buyers are a healthy mix of second-home buyers, new residents moving to the region, first-time home buyers, with a minority now institutional investors, in contrast to the pre-bust and immediate post-downturn market.
The Sarasota Real Estate Market faces one key challenge – inventory. Once again this last month the region saw a tightening of supply. With demand expected to remain strong through the balance of the year, this is the only impediment standing in our way of keeping price increases modest or losing our buyers to other markets. There are many potential sellers still fearful that they will not be able to find a prime property to move to if they list their property for sale, creating a virtual Catch-22 for our inventory issue.
According to the National Homebuilders Association, homebuilder confidence is at its highest since 2005, but skilled labor shortages and rising cost of materials are keeping production at a level well below demand.
In the Sarasota Real Estate Market well-located, prime location and condition properties are being snapped up sometimes before listings are fully active in MLS, good properties are receiving multiple offers, and back-up offers for listings under contract are becoming common. I continue to urge sellers hesitating to put their homes on the market that waiting will only force them to have to increase their own new home purchase budget as housing prices continue upwards, there is little doubt that interest rates will rise in the year ahead, and waiting for some magic just-right moment to enter the market will only place them behind the many other buyers currently on the hunt.
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 are no shortage of analysts and resources to be sure! As one of the nation’s most important economic drivers, everyone is watching the housing market!
June Market Data
- Total sales in May in the Sarasota Real Estate Market increased 12.9% from last June.
- The national picture set a pace not seen since 2005, with an increase in sales of 9.6% over prior year.
- The Florida market saw sales increase more than 19% over June 2014.
- Distressed sales (short sales and bank owned) as a percentage of total sales have continued to fall. In June those sales were 13.7% of total sales in Sarasota, considerably below the 50% mark at the bottom of our housing market, and more than 30% better than last year at this time. Most of the sales of distressed properties are in price points below $500,000.
- Distressed sales nationwide represented 8% of sales, a drop of 11% from last June.
According to Trendgraphix, pending sales are continuing to grow over prior year, even in this traditionally “softer” selling season. This data is one of our best tools to project future sales activity, and to have robust buying activity during the summer months supports the notion that we are on pace for a record-setting year in the Sarasota Real Estate Market.
- Median price for single-family homes was $230,000 a significant increase of 17.9% over June 2014.
- Florida’s median home price was $203,500 last month, a 10% increase over prior year.
- The nation’s median price for June property sales in all categories and types increased 9.6% over June 2014, the highest since February 2007.
- Sarasota’s condominium median price was $210,000 vs. last year’s $175,000 a 4.9% increase year-over-year.
- In comparison, Florida’s median condo price is $152,076, a 7.9% increase.
- The average sale price for houses In Sarasota was $326,134 in June vs. $310,929 a year ago, and they were sold at 94.5% of the list price.
- With condominiums, the average sale price was $306,859 vs. $286,132 a year ago and sold at 93.8% of list price.
- 52% of the closed sales were paid in cash. Broken down cash sales were 60% of condos and 46.3% of single-family homes.
Inventory…inventory…inventory – yes, I said it last month, and the month before that, and the one before that – we need more inventory! The Sarasota Real Estate Market, especially in the most desirable locations nearest the coastline, is desperately low on listings. 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 June, Sarasota Real Estate inventory fell 7% from month-end May, which is a 12% drop from the end of 2014.
- Total inventory in the area is currently at a 3.3 month supply, well below a balanced market, which is defined by a 6-month supply of inventory.
- Properties under $500,000 have just 2.6 month’s supply.
- In the category $500,000 – $1 million, inventory is 7 months.
- For properties over $1 million, there is a 12-month supply.
- On a national scale, supply is hovering around 5-months of inventory.
- The distressed inventory is only 4.3% of the total available inventory, compared to 17% last year and 50% in 2011.
The Sarasota area’s economy is heavily influenced by international visitors during these summer months, and though the dollar has regained strength in our feeder markets outside the U.S., demand is still extremely strong. In fact, research by the National Association of Realtors determined that international home purchases increased 13% over last year, and the price paid for those properties was double that of domestic home buyers. Also, as noted in previous newsletters, the baby-boomer population is a considerable market stimulus, and Sarasota continues to attract new business and industry with high-wage professionals who are seeking new homes.
As you enjoy the myriad fun and fabulous summer activities in Sarasota and wherever you may travel, and hear of individuals and families considering a new purchase in our area, you can count on my more than 30 years in the Sarasota Real Estate Market to help these eager buyers find their slice of Sarasota paradise!
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 June 2015