The Sarasota Real Estate Market managed to outpace both national and state sales again last month. The number of transactions expanded well into double digits in both existing single-family homes and condominiums when compared to prior year, strong growth in the luxury market, and moderate price appreciation was driven by falling inventory.
Our most effective forward-looking trend indicator, pending contracts signed in the month, grew at a very healthy pace in both housing categories signifying the next few months should have similar closings patterns.
Home builder confidence as measured by the National Home Builders Association is close to an 18-month high. Though labor is still tight and material, land and regulatory costs are rising, there seems to be a steady pace of new construction in both multi-family and single-family homes.
Nationally new home sales increased over 30% in October compared to last year. Developers who market and sell their own product don’t normally record their transactions in MLS, so it is often hard to have an accurate record of transactions. But, according to the Census Bureau, it is estimated that year-to-date sales have grown approximately 10% over same period 2018. New homes are selling for an average of 20% more than existing homes and condos.
In The Sarasota Real Estate Market, there have been several large luxury condominium projects under construction. One, The Mark, has already started its closings and residents will be occupying this beautiful project in the heart of Sarasota soon. This project’s 157 residences will boost the number of condo transactions through the end of the year and into the 1st quarter 2020. Close on its heels are several other developments, which will allow for a strong sales and total volume pace in the next 12-18 months.
In general, lower mortgage rates (last month at 3.66 for 30-year fixed), a steady economy, and rising wages and household wealth are encouraging buyers to add to or upgrade their real estate holdings. It is especially appealing to those in the lower and mid-price tiers as, though prices are rising moderately, they appear more palatable to buyers in the current economic environment.
As 2019 entered the 4th quarter, it appears that The Sarasota Real Estate Market is on pace to maintain consistent growth through the end of the year.
And now for my statistical report on the October Sarasota Real Estate Market activity:
- Total market dollar volume this past month was $373.1 million which increased by $88.6 million from a year ago.
- Broken down, single-family sales were $280 million and condominium sales were $93.7 million for the month.
- The volume in single-family was up $75.3 million compared to last year while condo volume was up $13.3 million.
- The number of properties sold this past month was 1,042 – 176 more than a year ago. The sales total includes 727 houses, 129 ahead of last year – an increase of 21.6%, and 315 condos, 47 above last year or 17.5% more. Year to date the monthly sold properties average is 1,079 while in 2018 it was 1,001.
- Florida’s single-family sales increased 5.2% from last year, and condo sales were just slightly below last year.
- U.S. single-family sales rose 5.4% and condos down 1.7%.
- Of the closed sales in October, 34 were for over $1,000,000, 27 were houses and 7 were condominiums. Sales of properties in this price tier more than doubled prior year transactions.
- Florida homes sold for in excess of $1 million were 3.8% higher than October 2018 and condos closed at over $1 million fell 17.6%.
- In 2018 Sarasota averaged 29 house sales and 17 condo sales per month over a $1 million, a small portion of our overall sales, while this year we are averaging 32 house sales and 12 condo sales per month for over $1 million.
- Listings that went pending last month were 1,019 an increase of 113 transactions from a year ago. For 2018 the monthly average for pending sales was 1,031.
- Florida’s single-family pending sales increased 13.3% and condos rose 4.2% compared to last year.
- U.S. pending sales in October were 4.4% ahead of a year ago.
- Single-family homes in The Sarasota Real Estate Market were sold at a median price of $285,000, an increase of 5.6% over last year. The 2018 monthly median price for houses sold was $281,662 and 2019 year to date it is $289,691.
- In October, Florida median price for single-family homes was $263,000 a 3.6% increase over last year.
- The national median price for existing homes grew 6.2% to $273,600.
- The condominium median sale price was $220,352. Year to date the monthly average is $232,488 and the 2018 monthly median average was $230,989.
- Median price for a Florida condo last month was $190,500, a 5.8% increase over October 2018.
- U.S. median condo price grew $248,500, a 5.6% increase.
- Sarasota houses sold on average for $385,131, where the 2018 monthly average was $384,110.
- Condominiums sold for an average price of $297,501 last month. The condominium monthly average sale price in 2018 was $355,047.
- Currently there are 4,026 properties for sale in Sarasota. This is an increase of 204 listings from the month before. There were 5,401 listings at the end of 2018 and 4,401 listings at the end of 2017.
- Of the available inventory for sale, 586 properties are listed for over $1 million or only 15%. Of the active listings over $1,000,000, 409 are houses and 177 are condominiums.
- The Sarasota market had 1,416 new listings the past month. The market averaged 1,289 new listings in 2018. Of the new listings the past month, 127 properties were listed over $1,000,000.
- Current inventory results in 3.8 months of single-family homes for sale in Sarasota and 4.1 month’s supply of condominiums.
- Florida currently has 3.7 months of single-family inventory and 5.4 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased about 2% over last year.
- U.S. inventory of all property types has fallen 4.3% from prior year, with 3.9 months of inventory available.
In today’s ever-fluid real estate market, the value of partnering with a highly experienced, locally as well as globally connected agent/broker, and a skilled negotiator and advocate cannot be understated.
Having served clients in The Sarasota Real Estate Market for more than 38 years and carefully analyzing our business conditions, I have developed essential insight to assist both buyers and sellers in achieving their objectives.
It would be my privilege to work with you, your family and friends in realizing your goals in acquiring or selling your property.
I hope that you all had a warm and wonderful Thanksgiving Holiday and enjoy the festive season ahead!