The Moulton Sarasota Real Estate Report December 2019
Year Ends as Seller’s Market
Activity in the Sarasota Real Estate Market ended 2019 on a high note with sales transactions exceeding last December by nearly 52% and total dollar volume increasing almost 63% over prior year.
The completion of The Mark, the first of many new luxury condominium developments underway in Sarasota, made a significant impact on sales last month. Of the increase of 60 condominium units sold in December compared to prior year, 48 of those transactions were in The Mark. It is always interesting to see the effect of just one project on the marketplace.
Inventory remained a challenge as we closed out the year. Total inventory was nearly 20% below last year. Earlier this year the Sarasota Real Estate Market was trending toward a balanced level in which neither buyers or sellers positions as favored, however available homes and condos has eroded leaving just 3.7 months of single-family properties and 3.9 months of condominiums available at year end – both a considerable gap from the theoretical balanced 6-month level.
The most recent survey of national home builders revealed that their confidence is at a 20-year high – the highest since June of 1999. And a survey of home remodelers reflected a similar sentiment, reaching its highest in 6 years. They noted a strong increase in homeowner interest in major additions and alterations.
Interestingly, this ties closely to another unique market influencer – the length of time homeowners remained in their homes. Compared to 2009 when it was calculated that the average number of years a homeowner stayed in place was 5 years, today’s owners are averaging 13 years. Data has shown that the average homeowner equity has increased 34% over their original purchase price, so it is not a surprise that when you add a shortage of available homes to the mix, fewer people are moving.
New home building nationally is the strongest in more than 10 years, but it is not nearly adequate to keep up with population growth and demand from first-time home buyers. In the decade of the 2010’s, new home building was 50% less than the volume in the decade before, creating a considerable shortage to meet the market needs.
Economists and analysts are expecting 30-year fixed rate mortgages to average a very attractive 3.8% interest rate over the next two years. Along with record-low unemployment, strong equity growth and economic confidence, and a significant increase in household formation, the Sarasota Real Estate Market appears poised for another positive stretch ahead.
And now for my statistical report on the December Sarasota Real Estate Market activity:
Sales
- Total market dollar volume the past month was $469.2 million which increased by $181 million or 37% from a year ago. Total sales for the year were $4.9 billion compared to $4.5 billion in 2018, an approximate 10% increase.
- Broken down, single-family sales were $326.9 million and condominium sales were $142.3 million for the month.
- The volume in single-family was up over 53% compared to prior year and condo volume was up more than 90%.
- The number of properties sold this past month was 1,163, 396 more than a year ago. The sales total includes 853 houses and 310 condos. The past year monthly sold properties average was 1,074 while in 2018 it was 1,001. In all of 2019 total property sales were 12,888 vs. 12,012 in 2018, an 876 sales increase.
- Florida’s single-family sales increased 23.8% from last year, and condo sales were 17.7% higher than last year. Homes sold for in excess of $1 million were 46.5 higher than December 2018 and condos closed at over $1 million rose 24.7%.
- U.S. single-family sales were up 10.6% and condos up 12.7% in December.
- Of the closed sales the past month, 61 were for over $1,000,000, 37 were houses and 24 were condominiums. This year we are averaging 46 sales per month for over $1 million. On a monthly average it is 32 houses and 14 condominiums.
- Listings that went pending last month were 1,265, a 32% increase compared to December 2018. The monthly average for this past year was 1,121 and for 2018 the monthly average was 1,031, a nice monthly increase.
- Florida’s single-family pending sales grew 11.9% and condos going under contract in December rose 8.3% compared to last year.
- U.S. pending sales in July were up just 4.6% in comparison.
Prices
- Single-family homes were sold at a median price of $283,000 in November. The 2019 monthly median price for houses sold was $288,325 vs $281,662 in 2018.
- Florida’s median price for single-family homes in November was $270,000, a 5.9% increase over last year.
- The national median price for existing homes 8.0% to $276,900.
- The condominium median sold price was $271,945, a spike of more than 20% over prior year. This anomaly could be the result of the large number of luxury units sold in The Mark, mentioned earlier. For the year the monthly average was $236,797 vs. $230,989 in 2018.
- Median price for a Florida condo last month was $200,000, an 8.1% increase over December 2018.
- U.S. median condo price grew to $255,400, a 6% increase.
- Sarasota houses sold on average for $383,228. Condominiums sold for an average price of $459,185 last month.
Inventory
- Currently there are 4,086 properties for sale in Sarasota. This is a decrease of 89 listings from the month before. There are 4,086 active listings heading into 2020, where there were 5,401 at the end of 2018 and 4,401 listings to end 2017.
- Of the available inventory for sale, 630 properties are listed for over $1 million or only 15%. Of the active listings over $1,000,000, 448 are houses and 182 are condominiums.
- The Sarasota market had 1,378 new listings the past month. The market averaged 890 new listings per month the past year and 1,008 in 2018.
- Current listing inventory results in 3.7 months of single-family homes for sale in Sarasota and 3.9 month’s supply of condominiums based on December closings.
- Florida currently 4 months of single-family inventory and 5.2 month’s supply of condominiums. Inventory of properties selling for over $1 million have decreased slightly from last year.
- U.S. inventory of all existing properties for sale is at just 3 months of supply, down from 3.7 last year.
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.
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