The Moulton Sarasota Real Estate Report – July 2017
Summer Sales Show Further Market Growth
The Sarasota Real Estate Market managed to continue its growth pattern. July data exhibited that demand remains strong for the region, and it appears that the healthy conditions should allow for sustained growth in the months to come.
While many expect our summer selling season to be softer when compared to the peak tourist/part-time resident months, July closed sales are typically active, this year topping sales in the October 2016 thru February 2017 months. Properties that went under contract in July 2017 exceeded those of July 2016 by approximately 4%, so expectations are that the moderate sales growth over prior year will continue in the Sarasota Real Estate Market.
Inventory once again remained in the 4.5-month supply range, well enough below what economists view as a healthy balance of 6-month’s supply, so we are left with conditions that will continue to keep upward pressure on prices. Despite a steady flow of new listings in July, both single-family and condominium units for sale grew at their slowest pace for the year, and just barely replaced sold inventory for the month.
Median price growth in the Sarasota Real Estate Market is considered “sustainable” by market experts. Though prices have fluctuated month-to-month, escalation year-over-year has been moderate and appears to be at a pace that reflects soundness in the housing market here.
The “affordable” tier of our regional market still shows few signs of easing inventory scarcity, making it difficult for our young families and workforce to achieve homeownership. With new homes coming to market generally priced more than 30% above existing homes, it doesn’t appear these conditions will improve in the short-term.
At the other end of the Sarasota Real Estate Market where most of my business is done, above $1 million, new listings fell just short of sales for the month, though still leaving us with a fair inventory of luxury properties for sale. I am aware of a number of prospective existing home and condominium owners contemplating bringing their luxury properties to market this fall. As a result, expect to see supply expand in the next few months, creating some competition for inventory that has been on the market for a while.
July sales of luxury properties in the Sarasota Real Estate Market grew considerably over 2016 – well in excess of 80%, but it is also important to note that total number of $1 million and above units sold last month was only 50. There are currently 571 $1 million+ properties for sale in the Sarasota Real Estate Market. The Sarasota media helps us celebrate when one of these prized properties changes hands by featuring them in their publications and broadcasts, but showing you this variance between inventory and number of sales highlights just how exceptional – and rare – each one of these transactions is.
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 monthly:
- Total sales in The Sarasota Real Estate Market in July increased by 54 sales to 989 from prior year, and decreased 14% from June.
- Total dollar volume increased $44.6 million over prior year and fell $60.4 million behind last month.
- Single-family home sales in July of 683 were 3 sales more than a year ago and decreased by 102 sales from June.
- Florida’s single-family sales grew 3.3% compared to last year.
- U.S. sales were up just 1.7% from prior year.
- Total number of condominium units sold of 306 in Sarasota in July was 20% higher than a year ago, and decreased by 64 sold properties from the prior month.
- Florida condo sales were 3.6% higher than July 2016.
- Condo sales nationally grew 5.3% over last July.
- The 2016 monthly average of single family sales was 653, and for this year the monthly average is 694. For condos, the average monthly sales in 2016 were 301, and this year it is 346.
- All cash sales in Sarasota continue to be strong with 33% of single-family and 60% of condos sales closed without a mortgage. This percentage consistently exceeds Florida and national cash sales trends.
- Pending sales of 703 homes that went under contract during July increased by 7% over the same month last year.
- Condominium pending sales were impressive with a 20% increase in properties going under contract in July over prior year, racking up a total of 306 units. This statistic is very helpful in projecting sales growth in the 30-60 days ahead.
- The monthly average of pending sales this year is 774 for houses vs. 649 in 2016, and 377 for condos vs. 298 in 2016.
- U.S. pended sales fell 1.3% compared to prior year.
- Florida’s pending sales saw an approximately 3% increase in properties going under contract in July when compared to prior year.
- In July, Sarasota’s single-family homes were sold at a median price of $260,000 vs. $242,500 a year ago, 7% higher.
- Florida median price for single-family homes was $240,000, a 7.1% increase over last year.
- The national median price for homes was $260,600, a 6.3% increase over prior year.
- The median price in July for a NEW home in the U.S. was $313,700, 6.3% higher than a year ago.
- The 2016 monthly median price average for houses sold in Sarasota was $249,867 vs. this year it is $262,937.
- Condominium median sale price was $214,175 in July, the 2017 monthly average is $222,789 vs. $207,892 as the 2016 monthly average.
- Median price for a Florida condo last month was $170,950 a 6.8% increase over July 2016.
- U.S. median condo price in July was $239,800, a 5.3% increase.
- The average sale price for houses in Sarasota was $373,959 in July vs. $335,617 a year ago.
- The year’s monthly average price for houses sold in 2016 is $346,008 vs. $364,667 year to date.
- Sarasota’s condominiums sold for an average price in July of $327,912 vs. $325,238 a year ago.
- The 2016 monthly average price for sold condominiums was $325,549 vs. $345,475 this year.
- Single-family homes sold at 95.2% of list price, and condominiums sold at 94.1% of the list price.
- Total available inventory in the Sarasota Real Estate Market decreased by 168 properties from June and grew by 242 properties or 6% from a year ago.
- Since January 1, 2017, inventory has fallen 9.2%.
- For single-family homes, Sarasota’s inventory has decreased by 227 properties since the beginning of 2017.
- Condominium inventory in Sarasota has decreased by 196 properties since the beginning of the year.
- The Realtor Association of Sarasota-Manatee reports that there are 4.1 months of single-family homes inventory and 4.6 month’s supply of condominiums, basically a balanced market.
- Florida currently has 4.1 months of single-family inventory and 5.8 months of condominiums.
- U.S. inventory of all housing types is reported to be at 4.2 months, 9% less than a year ago.
- Sarasota County averaged 1,260 new listings per month in 2016 and this year the seven-month average is 1,312. In July 1,067 listings came on the market.
- Currently there is available inventory of 4,172 properties for sale vs. 4,595 at the end of 2016 and 3,598 at the end of 2015.
As we look back at the July 2017 data, I maintain my confidence that the Sarasota Real Estate Market is positioned well to extend its stretch of healthy balanced conditions and sustained growth.
This Month’s Featured Listing