The list of interested buyers in all price points in the Sarasota Real Estate Market continues to grow. Inventory and interest rates create the heaviest headwind in meeting the demand. However, for those prepared to strike when they find the property that ticks all their “wants” including location, condition, renovation or rebuild required, closing timeframe, etc. they are ready to make a move as soon as new properties come on the market. The majority of these are cash buyers in the high-end market, so in the low- and mid-market price point where most buyers require mortgages, things are moving a little more slowly due to high rates.
Buyers are back in the driver seat now that the go-go days during the pandemic have passed. In the luxury and ultra-luxury class of properties, inventory has returned to pre-pandemic levels. That means that sellers need to get back to making necessary repairs before listing and be prepared for contingencies in contracts again.
Despite the growing listings pace, the months 
of supply of luxury inventory is 4.5 months, which is still below the threshold of at least 6 months of properties for sale to reach a balanced market. The pipeline of buyers for me and my other brokers who operate in the upper tier of the market has many ready, willing, and able clients. I see our market maintaining steady sales and moderate price appreciation in the months ahead.
The seasonality of sales has been somewhat disrupted as so many would-be buyers haven’t yet found their new property in Sarasota and are staying active in their search. Though there were more buyers in the area during the traditionally busier spring season, eager buyers with cash offers are still looking for their ideal home. The pace of properties going under contract in the luxury tier since the start of 2023 is 225% higher than same period in 2019 and nearly twice the total year-to-date in 2021. This data leads me to believe that we will continue to see steady sales ahead.
Sale prices have been holding steady this year
with a decelerated appreciation pace. A recent Wall Street Journal said, “High-end home sales have fallen back to earth” after the COVID fueled fervor around the country. However, while some parts of the country are experiencing price declines, in Sarasota luxury prices remain elevated by more than 4% year-over-year, and up 23% from 2019.
The National Association of Realtors is projecting US prices to remain flat or lower in some areas of the country through the balance of this year, and growth of 2.6% in 2024. Most economic experts believe interest rates will fall to 5.5% by the end of 2023, which many hope will spur activity in the entry and mid-level markets, as well as new listings of existing homes from those sitting with 3-5% mortgages.
Limited resale inventory continues to bolster Home Builder confidence. Over the last year builders had to resort to offering incentives and lowering prices when the pace of sales slowed as interest rates increased so significantly. But that has nearly stopped because of the supply vacuum in existing homes, forcing more buyers into the new homes market. Unfortunately, due to cost, supply, labor, interest rates, and lack of affordable land for development, entry level new home construction will continue to lag well behind demand leaving an ever-growing lack of options for first-time homebuyers.
As we return to a more typical level of inventory offering buyers more choices, our region will be closer to what market experts call normalized conditions. This should bring a closing of the gap between seller and buyer expectations and keep price appreciation in check. If you are a potential seller, I strongly recommend that you review what you will need to do to prepare your property for sale and consider listing now – before we begin to see a slowing of the list-to-sale periods, as well as more buyer demands as options become more widely available.
With plenty of active buyers seeking properties in the Sarasota Real Estate Market, I remain confident that demand for high quality and well-located Sarasota homes and condominiums will keep our sales on a similar course for the foreseeable future.
It would be my privilege to work with you, your family, and friends in selling or acquiring your property. Partnering with an agent who understands our nuanced local market, what that means for you and how it impacts your goals is critical. It is more important than ever to work with a highly experience, locally as well as globally connected agent/broker, skilled negotiator, and client advocate.
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 buyers and sellers 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 June 2023 compared to June 2022: 
And now for my statistical report on the June Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in June was $778 million which decreased by $15 million from a year ago.
- The number of properties sold in June was 1,150, which is 28 less than a year ago. With a slight decrease in single-family home sales and an increase in condo sales.
- The monthly average of sold properties this year is 1,038. The monthly average in 2022 was 1,004 and in 2021 1,369.
- Florida’s single-family sales fell 7.9% from last year, and condo sales were down 11%.
- U.S. sales of single-family homes fell 18.8% and condo sales were down 20%.
- Of the closed sales in June 139 were for over $1,000,000. In 2022 Sarasota averaged 111 sales per month over $1 million and in 2021 the average was 128.
- Florida homes sold for more than $1 million were 2% higher than June 2022 and condos closed at over $1 million fell 9.7%.
- In June 887 listings went to a pending contract, a decrease of only 36 transactions from a year ago. Year to date there has been an average of 1,087 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 3.2% and condos fell 11.8% compared to last year.
- U.S. pending sales in June were 15.6% behind a year ago.
Prices
- Single-family homes were sold at a median price of $522,500. The average monthly median price for houses sold this year is $506,000. In 2022 it was $493,000 and in 2021 $394,000.
- In June, Florida median price for single-family homes was $420,000, virtually equal to last year.
- The national median price for existing homes fell 1.2% to $416,000.
- The Sarasota condo median sale price was $390,000. In 2022 $383,000 and in 2021 $317,000.
- Median price for a Florida condo last month was $325,000, almost the same as last June.
- U.S. median condo price grew 1.9% to $361,600.
- Sarasota houses sold on average for $738,617 for the month. The year-to-date monthly average is $691,343. In 2022 $683,000 and 2021 $573,000.
- Condos sold for an average price of $551,937 in June. The year-to-date monthly average is $603,592. The 2022 monthly average was $563,000 and in 2021 it was $527,000.
Inventory
- Currently there are 3,012 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 1,215 new listings in June. The market averaged 904 new listings monthly in 2022, and in 2021 it was 1,321.
- Inventory of single-family homes over $1 Million grew 39% over prior year and condos were up over 50% from June 2022.
- Current inventory results in 3.2 months of single-family homes for sale in Sarasota and 3.5 month’s supply of condominiums.
- Florida currently has 2.8 months of single-family inventory, up 13.8% over past year, and 3.6 month’s supply of condominiums, which is 40% higher than June 2022.
- U.S. inventory of existing single-family homes fell 13.5% compared to last year and condo inventory is down 10%.
