The Moulton Sarasota Real Estate Report – April 2017
Solid Spring Sales Momentum
The Sarasota Real Estate Market had yet another strong month of sales growth in April, along with adding more inventory of properties for sale and prices continuing to grow modestly. The region remains well positioned to allow for sustained growth into the summer months ahead.
Recent polls designed to test real estate market confidence reflect a general sense of optimism. Based on perception of the condition of the U.S. economy, sustained growth of investment portfolios, increased value of real estate holdings, accelerating home construction, and mortgage rates remaining at historic lows are all contributing factors to the positive consumer outlook.
A Gallup poll just taken showed that for the fourth year in a row real estate is considered the best long-term investment, ahead of stocks/bonds, gold and others. With builder confidence at its second highest reading since 2005, the stars indeed appear aligned for steady growth in the housing sector.
Looking at the whole of The Sarasota Real Estate Market and comparing to national and state data, the following are some of the key points that I assimilated from the many resources I review on a monthly basis:
- Total sales in The Sarasota Real Estate Market in April improved by 5% over prior year and decreased slightly from March, with total dollar volume rising by $7,000,000 over March and approximately $40,000,000 over April 2016, with the majority of growth occurring in the single family home segment.
- Single-family home sales in April of 793 were 61 more than a year ago, and increased slightly compared to March.
- Florida’s single-family sales declined 1.2% compared to last year.
- U.S. sales were up 1.6% from prior year.
- Total number of condominium units sold of 381 in Sarasota in April was only one sale different than year ago, and decreased by 32 sold properties from the prior month.
- Florida condo sales were 4% lower than April 2016.
- Condo sales nationally grew 1.6% over April 2016.
- The 2016 monthly average of single family sales was 631, and for this year the monthly average is 6422, and for condos the average monthly sales in 2016 were 309, and this year it is 330.
- All cash sales in Sarasota continue to be strong with 40% of single-family and 66% of condos sales were closed without a mortgage.
- All cash transactions in all of the U.S. were 21% of sales.
- Distressed sales in the Sarasota Real Estate Market in April were only 3.4% of total sales. Thank goodness this aspect of sales is in our rearview mirror.
- Pending sales of 823 homes that went under contract during April, decreased by 23 sales over the same month last year. Condominium pending sales of 412 increased by 15 sales from a year ago. This statistic is helpful in projecting sales growth in the 30-60 days ahead.
- Pending sales in Florida fell considerably, with single-family homes dropping 9.1% and condos down 5.8% when compared to April 2016.
- U.S. pending sales fell 3.3% below last year’s number of contract signings in April.
- In April, Sarasota’s single-family homes were sold at a median price of $272,500 vs. $250,000 a year ago.
- Florida median price for single-family homes was $234,900, a 10.1% increase over last year.
- The national median price for homes was $246,100, a 6.1% increase over prior year.
- The median price for a NEW home is currently $309,200 –25% more than an existing home.
- The 2016 monthly median price average for houses sold in Sarasota was $249,867 vs. this year it is $260,655.
- Condominium median sale price was $215,000 in April vs. $218,000 in April 2016.
- Median price for a Florida condo last month was $172,000, a 7.2% increase over April 2016.
- U.S. median condo price in April was $234,600, a 5.6% increase.
- The average sale price for houses in Sarasota was $382,073 in April vs. $356,767 a year ago.
- The year’s monthly average price for houses sold in 2016 is $368,412 vs. $351,965 this year to date, a 4% decrease.
- Sarasota’s condominiums sold for an average price in April 2017 of $312,361 vs. $376,033 a year ago.
- The 2016 monthly average price for sold condominiums was $325,928 vs. $347,390 this year.
- Sarasota properties sold at 95% of the list price, which mirrors the rest of the U.S.
- Total available inventory in the Sarasota Real Estate Market decreased by 374 properties from March and grew by 336 properties or 7% from a year ago and 4% since January 1st.
- Inventory fell slightly in Florida in April, and declined 9% across the U.S.
- For single-family homes, inventory has grown by 129 properties since the beginning of 2017.
- Condominium inventory in Sarasota has grown by 49 properties since the beginning of the year.
- The Realtor Association of Sarasota-Manatee reports that there are 4.7 months of single-family homes inventory and 5.5 month’s supply of condominiums, basically a balanced market.
- Sarasota County averaged 1,260 new listings per month in 2016, about the same monthly average as 2015, and this year the four-month average is 1,443. In April 1,112 listings came on the market.
- Currently there is available inventory of 4,773 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.
- The higher inventory in The Sarasota Real Estate Market has been affecting list-to-contract periods, further suggesting that we are moving closer to a market that favors neither sellers nor buyers.
With the consumer confidence in real estate at a high level, even with the slight increase expected in mortgage rates, I have confidence that The Sarasota Real Estate Market will be a beneficiary of the strong housing market sentiment. Our region continues to enhance its unique attributes such as performing arts, exhibitions, sports facilities, our beaches and waterways, and selection of exceptional restaurants and retail. I now find conversation with clients about other regions they might be considering that we have historically competed with falling from discussion.
As we approach June and July, often some of our strongest selling periods of the year, the signals reflected in the data reported from April supports continued Sarasota Real Estate Market growth, hence my sense that our region’s housing market has the momentum to allow us to maintain our pattern of sales and price growth.
Are you or someone you know looking to purchase or sell a property?
If you have interest in listing your property, please ask me for my proprietary “Comparative Market Analysis” which enables me to analyze your home or property along with recent area sales, other homes on the market, and current overall market performance for your neighborhood and price points. With this data I am able to help you to determine the current value of your home, what key factors might be most important to consider when pricing, and in what general time frame you can expect a sale based on today’s market conditions.
On the other hand, if your interest is in buying, I would be pleased to work with you in establishing the areas within the Sarasota region that most interest you, develop your key purchasing criteria, share with you my knowledge of the community that will be helpful in narrowing your focus, and help you find that dream home or condominium!
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