Local inventory of properties for sale remains well below buyer demand. The Sarasota Real Estate Market is still well in the “seller’s market” territory. In fact, total existing properties for sale remain at historical lows in all price categories. Current months of inventory for sale (the measure we use to determine how long it would take to sell available inventory) is just 3.2 months. A balanced market is considered one with at least 6 months of inventory, which we last saw between December 2018-March 2019.
The frenzy in the real estate over the last few years is still fresh in our minds, but the slowed market is not cause for alarm. When comparing to the last “normal” years of 2017, 2018, and 2019, the luxury sector is outperforming those years quite measurably. Current inventory of properties over $1 Million is about 6.3 months, but as shown in the chart here, is well below historical norms. Also notable is the comparison of sales and days on market when looking at previous more typical years.
As evidenced by the diminished days between listing and contract, higher pace of closings, and considerable fall in months of inventory in the luxury market, it is clear that there are still plenty of buyers. Prices in the tier over $1 Million also continues to look strong with an average sale price in 2023 $2,011,000 year-to-date, just 7% under the same period in 2022 and 7% higher than 2019. The average number of Million dollar+ sales year-to-date are 125 per month. With such a small number of transactions in that price tier, even just a few ultra-high-priced properties can shift the data.
For example, there have been no major condominium projects finished in 2023. However, before the end of the year both Bayso with 149 residences and potentially also the Demarcay with 39 units are expected to be ready for occupancy. So, while million dollar condo sales fell 30% from last July, the volume generated from these large projects by year-end should bring it back into line with prior years. Right now, luxury condo transactions are dependent on resale inventory.
The continuing existing housing deficit is fueling new home construction and sales. Last month’s report from the Census Bureau notes that new home sales are up 31.5% over last year with 7.3 months of supply. Home builder sentiment is high, with announcements of new developments in the Sarasota-Manatee region regularly making headlines.
Existing homes are still very much in demand. As a would-be seller, you can be guaranteed a new listing will gain a lot of attention from the many buyers waiting for the next great property to come to market.
As we near the busy fall selling season, those considering bringing their property to market need to begin the process of finding a seasoned real estate professional, have them give you an assessment of potential pricing and improvements to consider prior to listing, as this can take several months to accomplish. Please reach out if you are considering selling your home – it would be my pleasure to meet with you to discuss your goals.
Having served clients in The Sarasota Real Estate Market for 40 years and carefully analyzing our business conditions, I have developed essential insight to assist both sellers and buyers in achieving their objectives. An understanding of the realities, the ability to evaluate and guide client expectations, and expert management in negotiating the purchase or sale of a home or condo, I ensure that your goals are realized.
Below is a snapshot of the Florida Association of Realtors data showing Sarasota’s existing homes and condos activity in the price tier above $1 Million in July 2023 compared to July 2022:
And now for my statistical report on the July Sarasota Real Estate Market activity:
- Total market dollar volume in July was $578.2 million, which decreased by $63 million from a year ago.
- The number of properties sold was 899, 68 less than a year ago. The monthly average of sold properties this year is 1,018. The monthly average in 2022 was 1,004 and in 2021 1,369.
- Florida’s single-family sales decreased 6.4% from last year, and condo sales were 9.4% below last year. Homes sold for more than $1 million were up 1.5% from July 2023 and condos closed at over $1 million fell 4.6%.
- U.S. single-family sales fell 16.3% and condos were down 19.2%.
- Of the closed sales in July, 102 were for over $1,000,000. In 2022 Sarasota averaged 111 sales per month over $1 million and in 2021 the average was 128.
- In July 892 listings went to a pending contract, a decrease of 29 transactions from a year ago. Year to date there has been an average of 1,059 pending sales per month. There were 968 pending sales per month in 2022 and 1,347 in 2021.
- Florida’s single-family pending sales decreased 0.8% and condos fell 4.8% compared to last year.
- U.S. pending sales in July were 14% behind a year ago.
- Single-family homes were sold at a median price of $535,000. The average monthly median price for houses sold is $510,00 this year. In 2022 it was $493,000 and in 2021 $394,000.
- In July, Florida median price for single-family homes was $415,000, a 0.7% increase over last year.
- The national median price for existing homes grew 1.6% to $412,300.
- Sarasota’s condo median sale price was $389,500. The average monthly median price for condos sold is $346,00 this year. In 2022 $383,000 and in 2021 $317,000.
- Median price for a Florida condo in July was $305,000, a 4.6% increase over July 2022.
- U.S. median condo price grew 4.5% to 357,600.
- Sarasota houses sold on average for $693,000 in July. The year-to-date monthly average is $691,000. In 2022 $683,000 and 2021 $573,000.
- Condos sold for an average price of $524,000. The year-to-date monthly average is $592,000. The 2022 monthly average was $563,000 and in 2021 it was $527,000.
- Currently there are 2,956 properties for sale in Sarasota. At the beginning of this year there were 2,431 listings, 829 at the beginning of 2022 and 2,272 at the beginning of 2021.
- The Sarasota market had 1,069 new listings in July. The market averaged 904 new listings monthly in 2022 and in 2021 it was 1,321.
- Current inventory results in 3.2 months of single-family homes for sale in Sarasota and 3.4 month’s supply of condominiums.
- Florida currently has 2.8 months of single-family inventory and 3.6 month’s supply of condominiums. Florida’s inventory of properties selling for over $1 million has decreased approximately 2% from a year ago.
- U.S. inventory of existing single-family homes has fallen 15.5% and condo inventory is down 12.6% compared to July 2022.