Moderation is defined as a lessened intensity or extremeness; less violent, severe, excessive or intense. The Sarasota Real Estate Market has established a position of moderation in nearly every category of data used to analyze the health of housing. The tempering of the extremes that were seen in 2013 of wildly rising prices and volume of sales has been opined to be the result of cash inventors, government incentives and other unique events. The trends we have experienced year-to-date in 2014 have led to well-balanced and sustainable conditions.
The National Association of Realtor’s reports for the month of August 2014 have analysts somewhat perplexed, many even discouraged, and even others calling data “troublesome” with statistics pointing to falling prices and fewer sales. As is typical, Sarasota’s Real Estate Market reflects a different picture than when looking at a more global perspective. Real estate markets in regions such as ours are very often their own microclimates, reflective of the distinctive factors, and even the extreme effects of the market tumult that we experienced the Money Star spins over the last decade.
There are a variety of resources that I tap to monitor our Sarasota Real Estate Market health. Each one has shown impressive data:
- Sarasota real estate transactions in August 2014 were almost equal to last year, but still increasing another nearly 2%.
- Median prices in Sarasota climbed just ½% from last year.
- Available inventory is also stable, falling just over 1% from August 2013.
- Pending contracts signed in August were also very close to the same period last year, increasing 2%.
Here are some additional local statistics with state and national comparison included to give my readers a greater graphic of how well the hyper-local elements of the Sarasota Real Estate Market are performing.
Sales:
- According to the Sarasota Association of Realtors data, August was the 6th month in a row sales hovered around the 1,000 unit mark, reaching 968 properties changing hands.
- Sarasota sales were up 5% from July and up 1.8% last year.
- For the first eight months of 2014, closed sales are slightly ahead of last year’s pace by less than 100 sales. 2013 was the second highest in the 91-year history of the Sarasota Association of Realtors.
- Total sales as reported by the National Association of Realtors fell 5.3% from prior year.
- In Florida, single-family home sales rose 4.2% compared to August 2013, and condo sales fell 8.8%.
- Sarasota’s distressed sales (short sales and bank owned) as a percentage of total sales were 22% in August 2014 which was virtually the same in August 2013 more than 35% less than two years ago.
- U.S. distressed sales were 13.5% of the total sales, down 14.3% compared to last year.
- Florida’s distressed sales made up 26% of sales.
Prices:
- The median sale price for single family homes in Sarasota was $195,750 in August, down slightly from the July figure of $201,000, yet almost the same figure in August 2013.
- In Florida, prices for single-family homes increased 2.9% compared to last year.
- For condominiums, the median sale price was $177,000, down 16% from the July figure of $205,000 but 10% higher than last August.
- It has been common in the past few years for the condominium median sales price to have a greater monthly fluctuation compared to a more steady number for single family homes. The lack of available condo inventory is putting price pressure on remaining properties.
- Condo median prices in Florida increased 5.7% in comparison to August 2013.
- It has been common in the past few years for the condominium median sales price to have a greater monthly fluctuation compared to a more steady number for single family homes. The lack of available condo inventory is putting price pressure on remaining properties.
- In a 12-month look at our Sarasota median prices, which moderates the monthly swings, single-family homes have increased 10% over the previous 12-month cycle to $192,500 and condos have risen 11.5% to $160,000.
- Nationally, August median sale prices for all categories of properties increased 4.8% over previous year.
Pending sales:
- Pending sales continued to reflect this summer’s robust buyer activity with 880 pending contracts, comparable to last August of 864, an increase of about 2%.
- Total U.S. pending sales in August fell 2.1% year-over-year.
Inventory:
- Based on the monthly average of sold properties during 2014, the Sarasota Real Estate Market has a supply of inventory of just 3.4 months of available properties for sale, well below the recognized market stability point of 6 months of supply.
- Properties listed under $500,000 have only 3 months of inventory.
- In the $500,000 to $1,000,000 price range there is 6.6 months of inventory.
- $1,000,000 and above properties have 13.8 months of inventory.
- In comparison to Sarasota’s low inventory, nationally and throughout Florida inventory is at a 5.5 month supply, much closer to the level considered to be neither a buyer or seller market.
The stable and consistent trends in the Sarasota Real Estate Market aided by low interest rates, consumer and builder confidence, home equity gains throughout the nation, and especially the promise of exciting new inventory entering our market in the next 12-24 months, gives me confidence that Sarasota’s Real Estate Market growth will continue. The balance of this year should see steady increases in sales, prices and inventory, which will lead to impressive results during our peak winter and spring sales seasons.
With the tourism season expected to reach record levels and the volume of inquiries I am receiving already showing signs of surpassing last year’s high-level of activity, for those property owners considering selling, this is the time for us to be discussing a listing. The process of getting a property on the market can take a few weeks so the sooner you start the more chance we have of introducing your listing to the real estate community in time for season. In addition to the adage “location, location, location,” timing is everything!
