For the third consecutive month, sales of homes and condominiums in The Sarasota Real Estate Market has grown considerably over the prior year. In the luxury tier, properties selling for more than $1 million were 53% higher in the last 90-days than the same period in 2022. While there have been several months in 2023 where luxury property transactions had much more modest growth and even declined, the region appears to be on track to exceed 2022’s annual high-end sales by more than 10%. Recently Michael Saunders released the company’s 3rd quarter market update, and I thought my readers would find it informative. Click here to read this comprehensive report.
The chart here shows how the improving inventory levels are 
affecting sales and pending sales in the price points over $1 million.
Before the end of the year 149 condos in the new Bayso project in the Quay Commons district are being released for occupancy. The units are averaging around $1.5 million. 35 units closed in November, and many more will be reflected in December’s sales data. It shows what an extraordinary difference a single project can have on the Sarasota Real Estate Market. Additional projects underway in the downtown Sarasota core, as well as The St. Regis Residences on Longboat Key, will have further impact in the year to come.
The inventory of existing homes and condos remains well below the recognized point of equilibrium for available properties to meet buyer demand. The recent increase in the pace of new listings is a welcome event and I expect the growth as shown in the Trendgraphix data will continue, leading to the prospect of a strong spring season.
Buyers and sellers in most other price points are highly motivated by movement in mortgage interest rates, which will also likely lead to increased activity in both the existing and new homes markets. The vast majority of mortgage holders have rates at 5% or below, and experts believe that with an anticipated reduction of 1-2% over this next year, it is expected the housing markets across the country will see more growth.
The homebuilder sentiment, as surveyed by the National Home Builders Association each month, continues to grow. Builders, especially in highly desirable areas such as ours, are taking advantage of the lack of supply in the existing homes market. Further encouragement for homebuilders is seen in last month’s sales volume. 31% of the nation’s homes sold were new construction – this is a significant contrast to the historical average of 12%.
Recently Fannie Mae in partnership with Pulsenomics, LLC performed the Home Price Expectations Survey (HPES). The poll of more than 100 housing experts is used for forecasting national home price changes over the upcoming five years.
The Q4 2023 report noted that the mean expectations are for an annual growth of 3.8% over the next five years. The most optimistic quartile of the surveyed panelists is projecting an average of 5.7% annual growth. There have been many prospective buyers who have been waiting for a measurable drop in prices. If you are in that group, 2024 appears to be your time to take action, as the pace of appreciation is expected to increase in 2025 and beyond.
As we near the busy winter and spring selling seasons, those considering bringing their property to market need to begin the process of finding a seasoned real estate professional, have them give you an assessment of potential pricing and improvements to consider prior to listing, as this can take some time to accomplish.
Buying and selling homes this season will take some strategy, since inventory of existing homes and condos is still tight compared to historical levels. As new listings come on the market there are many eager buyers waiting to jump at a property that can meet most of their wish list. Buyers need to be prepared to communicate their “must haves”, “nice to have”, and “bonus haves” to their realtor so that they can alert you as soon as something lists that checks most of your boxes.
Please reach out if you are considering selling your home or buying another – it would be my pleasure to meet with you to discuss your goals. Having served clients in The Sarasota Real Estate Market for 40 years and carefully analyzing our business conditions, I have developed essential insight to assist both sellers and buyers in achieving their objectives. An understanding of the realities, the ability to evaluate and guide client expectations, and expert management in negotiating the purchase or sale of a home or condo, I ensure that your goals are realized.
Below is a snapshot of the Florida Association of Realtors data showing Sarasota’s existing homes
and condos activity selling for over $1 Million Year-to-Date as of November 30:
And now for my statistical report on the November Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in November was $606 million which increased by $211 million. A large part of this increase is attributed to the closings of the newly constructed Bayso condominium project in downtown Sarasota.
- The number of properties sold in November was 835, 197 more than a year ago. The monthly average of sold properties this year is 964. The monthly average in 2022 was 1,004 and in 2021 1,369.
- Florida’s single-family sales increased 4.2% from last year, and condo sales were 0.3% higher than last year.
- U.S. sales of single-family homes declined 7.3% and condo sales were down 6.8%.
- Of the closed sales in November 168 were for over $1,000,000, which was triple November 2022’s luxury sales. In 2022 Sarasota averaged 111 sales per month over $1 million and in 2021 the average was 128.
- In Florida, homes sold for more than $1 million were 24% higher than November 2022, and condos closed at over $1 million were up 38.5%.
- In November 772 listings went to a pending contract, an increase of 60 transactions from a year ago. Year to date there has been an average of 952 pending sales per month. There were 968 pending sales per month in 2022 and 1,347 in 2021.
- Florida’s single-family and condo pending sales fell 1.2% compared to last year.
Prices
- Single-family homes were sold at a median price of $500,000. The average monthly median price for houses sold is $509,000 this year. In 2022 $493,000 and in 2021 $394,000.
- In November, Florida median price for single-family homes was $413,000, a 3.3% increase over last year.
- The national median price for existing homes grew 3.5% to $392,100.
- The condominium median sale price was $548,000. The average monthly median price for condominiums sold is $380,000 this year. In 2022 $383,000 and in 2021 $317,000.
- The median price for a Florida condominium last month was $330,000, a 7.5% increase over November 2022.
- U.S. median condominium price grew 8.6% to $350,100.
- Sarasota houses sold on average for $660,500 in November. The year-to-date monthly average is $693,000. In 2022 $683,000 and 2021 $573,000.
- Condominiums sold for an average price of $845,000 last month. The year-to-date monthly average is $557,000. The 2022 monthly average was $563,000 and in 2021 it was $527,000.
Inventory
- Currently there are 4,270 properties for sale in Sarasota. At the beginning of this year there were 2,431 listings, 829 at the beginning of 2022 and 2,272 at the beginning of 2021.
The Sarasota market had 1,503 new listings in November. The market averaged 904 new listings monthly in 2022 and in 2021 it was 1,321. - Current inventory results in 4.3 months of single-family homes for sale in Sarasota and 4.9 months supply of condominiums. This is the first month in several years where the month’s supply of single family homes for sale has exceeded 4 months. As a perspective the first few months of 2022 the months of for sale inventory in both houses and condos was under one month.
- Florida currently has 3.7 months of single-family inventory and 5.0 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased about 30% over last year.
- U.S. inventory of existing single-family homes in November was equal to last year, and condo inventory is up 5.6%.
Michael’s Featured Listing:
