Moulton Sarasota Real Estate Report – September Sales Sizzle

After a strong August, the September Sarasota Real Estate Market once again bested Florida and National sales by a considerable margin. Sales of existing homes and condominiums exceeded last year’s transactions by almost 25%. And while sales of luxury properties, those over $1 million, are a small percentage of our region’s total, the 32 transactions last month nearly doubled prior year activity.

Prices in the Sarasota Real Estate Market continue to grow, though at a moderate and sustainable pace. However, with inventory once again falling last month in both single-family and condominium segments, it is likely price escalation will remain well above inflation rates.

Pending sales are our best indicator for closings 30-60 days into the future. In September, homes and condos that went under contract grew by 12.5% over prior year, leading us to believe that our market will continue to see similar healthy activity in the months ahead.

There is no question that new tax laws and low mortgage rates are influencing our market. Those seeking to move their homestead to Florida to take advantage of our amazing amenities and beauty – as well as advantageous tax laws – are finding their options many. And, while my luxury clients typically pay cash for their properties, it is becoming difficult to resist our historically low interest rates. At the end of September, the 30-year fixed mortgage rate was just 3.64%.

Whether looking for new construction or existing, inventory is available to meet the growing demand. Earlier this year it appeared that The Sarasota Real Estate Market might be moving toward a balanced market where inventory and demand are more closely aligned, but recently we have seen inventory tightening again.

Builder confidence rose to its highest in 20 months, giving hope that the pace that we have seen in the last few years will continue and meet the strong interest new homes and condos. A recent report from Metrostudy indicated that construction in Lakewood Ranch, which reached 1,500 new home starts in the 3^rd quarter, exceeded all other top-selling communities in Florida, Las Vegas, Arizona and California.

There are hundreds of beautiful condominiums under construction in the City of Sarasota, which will result in considerable growth in that segment over the next year. I have seen great interest from Longboat residents moving to the mainland and opting for the “lock and leave” convenience of a condo. Demand for these many new residences from both existing residences of our region and newcomers is strong and expected to remain so.

Housing market analysts call the nation’s current condition “normalized.” And without a significant geopolitical or other impactful event causing a major disruption to the U.S. economy, experts are looking to the real estate market to help to maintain the country’s healthy consumer attitudes and investment in housing as a long-term asset strategy.

And now for my statistical report on the September Sarasota Real Estate Market activity:

Sales

• Total market dollar volume this past month was $351.7 million which increased by $76.4 million or 28% from a year ago.
• Broken down, single-family sales were $262.9 million and condominium sales were $88.8 million for the month. The volume in single-family was up $68 million over the prior year while condo volume was up $8.3 million.
• The number of properties sold this past month was 1,004, 198 more than a year ago. The sales total includes 689 houses and 315 condos. The year to date monthly sold properties average is 1,083, while in 2018 it was 1,001.
  • Florida’s single-family sales increased 11.5% from last year, and condo sales were up 6.1%.
    • Florida’s homes sold for in excess of $1 million were 13.3% higher than September 2018 and condos closed at over $1 million decreased 5.1%.
  • U.S. single-family sales increased 3.9% and condos grew 3.4% compared to last year.
• Of the closed sales the past month, 32 were for over $1,000,000, 25 were houses and 7 were condominiums.
• In 2018 Sarasota averaged 29 house sales and 17 condo sales per month over a $1 million.
• Listings that went pending last month were 947 an increase of 105 transactions from a year ago. For 2018 the monthly average for pending sales was 1,031.
  • Florida’s single-family pending sales increased 4.5% and condos fell .4% compared to last year.
  • U.S. pending sales in September grew 3.9% over prior year.

Prices

• Single-family homes were sold at a median price of $298,000. The 2018 monthly median price for houses sold was $281,662 and 2019 year to date it is $290,212. Sarasota houses sold on average for $381,521 where in 2018 it was $384,110.
  • In August, Florida median price for single-family homes was $265,000, a 5.3% increase over last year.
  • The national median price for existing homes grew 6.1% to $275,100.
• The condominium median sale price was $232,000. Year to date the monthly average is $233,836 and the 2018 monthly median average was $230,989. Condominiums sold for an average price of $282,037 last month and in 2018 it was $355,047.
  • Median price for a Florida condo last month was $193,000, a 5.8% increase over September 2018.
  • U.S. median condo price grew to $248,600, a 4.5% increase.

Inventory

• Currently there are 3,822 properties for sale in Sarasota. This is an increase of only 104 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, 517 properties are listed for over $1 million. Of the active listings over $1,000,000, 361 are houses and 156 are condominiums.
• The Sarasota market had 1,144 new listings the past month. The market averaged 1,289 new listings in 2018.
• Current inventory results in 3.4 months of single-family homes for sale in Sarasota and 4.4 month’s supply of condominiums.
  • Florida currently has 3.6 months of single-family inventory and 5.3 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased approximately 2% over last year.
  • U.S. inventory of existing single-family homes and condominiums has declined 2.7% to 4.1 months of supply.

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 37 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.

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