August sales of existing homes and condominiums in the Sarasota Real Estate Market were considerably higher than the same month last year. Florida and U.S. total sales were narrowly ahead of prior year.
As we moved closer to the proverbial balanced market, where months of supply is nearer market demand, prices showed minimal growth. However, inventory is beginning to fall again in the mid- and upper-markets, which will help prices to maintain their moderate growth year-over-year in the months ahead. In the segments over $1 million, especially in the condominium category, inventory is continuing to grow.
As noted in the last several of my monthly reports, my current and prospective clients looking to transition out of their current residences need to be thoughtful when pricing their properties to sell. The adage of “pricing to sell and move on” versus setting unrealistic expectations is key in today’s market. Selecting a highly knowledgeable real estate professional who can walk you through the micro and macro comps, as well as other area indicators, will help you right-price your condominium or home and yield you the best outcome.
Pending sales in the Sarasota Real Estate Market also showed strong activity. With interest rates continuing to remain at historic lows and overall consumer confidence sound, this solid growth in contracts signed last month should result in sales improvements in the next 30-90 days.
National home builders surveyed this month revealed the strongest optimism in a year. HUD released a recent report noting that total housing starts are now at their highest pace since May 2007, growing 6.6% over last year’s rate. HUD and the Census Bureau also released their estimates for August new home sales – 18% ahead of last year.
With soaring buyer demand for new construction in all price points and types of housing, and despite the increase in building material and wage costs, it is expected that home builders will continue their strong rate of both single-family and multi-family construction. The added inventory will help The Sarasota Real Estate Market maintain a balanced market and allow prices to grow at a moderate pace.
And now for my statistical report on the August Sarasota Real Estate Market activity:
Sales
- Total market dollar volume this past month was $401 million, which increased by $24.5 million or 6.5% from a year ago. Broken down, single-family sales were $279.6 million and condominium sales were $121.4 million for the month. The volume in single-family was up 2% to the prior year while condo volume was up almost 20%.
- The number of properties sold this past month was 1,104, 73 more than a year ago. The sales total includes 769 houses, 53 (or 7.4%) ahead of last year and 335 condos, 20 (or 6.3%) above last year. The year to date the monthly sold properties average is 1,093 while in 2018 it was 1,001.
- Florida’s single-family sales increased 3.2% from last year, and condo sales fell 2.9%.
- Homes sold for in excess of $1 million were 8% higher than August 2018 and condos closed at over $1 million increased 1.4%.
- U.S. single-family sales increased 2.9% and condos were virtually equal to last year.
- Florida’s single-family sales increased 3.2% from last year, and condo sales fell 2.9%.
- Of the closed sales the past month, 35 were for over $1,000,000, 24 were houses and 11 were condominiums.
- In 2018 Sarasota averaged 29 house sales and 17 condo sales per month over a $1 million, a small portion of our overall sales.
- Listings that went pending last month were 1,124, an increase of 224 transactions from a year ago, a healthy 25% increase to help to establish a baseline for the next 30-60 days. For 2018 the monthly average for pending sales was 1,031.
- Florida’s single-family pending sales increased just 1.3% and condos fell 1.4% compared to last year.
- U.S. pending sales in July were grew 2.5% over prior year.
Prices
- Single-family homes were sold at a median price of $280,000. The 2018 monthly median price for houses sold was $281,662 and 2019 year to date it is $289,238.
- In August, Florida median price for single-family homes was $265,000, a 4.2% increase over last year.
- The national median price for existing homes grew 4.7% to $280.700.
- The condominium median sale price was $231,000. Year to date the monthly average is $234,066 and the 2018 monthly median average was $230,989.
- Median price for a Florida condo last month was $190,000, a 2.7% increase over August 2018.
- U.S. median condo price grew to $257,600, a 5.2% increase.
- Sarasota houses sold on average for $363,534, where the 2018 monthly average was $384,110.
- Condominiums sold for an average price of $362,419 last month. The condominium monthly average sale price in 2018 was $355,047.
Inventory
- Currently there are 3,778 properties for sale in Sarasota. This is a decrease of 329 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, 520 properties are listed for over $1 million or only 14%. Of the active listings over $1,000,000, 369 are houses and 151 are condominiums.
- The Sarasota market had 1,154 new listings the past month. The market averaged 1,289 new listings in 2018.
- Current inventory results in 3.5 months of single-family homes for sale in Sarasota, a decline of 8.9% from a year ago, and 4.4 month’s supply of condominiums, nearly equal to last year.
- Florida currently has 3.6 months of single-family inventory and 5.4 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased approximately 3% over last year.
- U.S. inventory of existing single-family homes and condominiums has declined 2.6% 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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