Sarasota Real Estate Market sales transactions fell more than 40% in May when compared to prior year, but, were just 17.6% behind April closings. It is important to keep in mind that sales typically take 30-60 days from contract signing – meaning that May sales would reflect buyer activity in March and April, months where the globe was locked in shelter-at-home orders.
When analyzing contract signings in May (new pending sales) compared to prior month, activity grew 63% signaling strong interest from buyers in the marketplace. Those 1,222 homes and condos put into pending status were just 22 transactions off prior year activity.
Inventory continues to be a significant driver within the Sarasota Real Estate Market. Listings of existing single-family homes are almost 30% fewer than a year ago, and new listings in May dropped 6.6% compared to last year. Inventory of available condominiums for sale also fell from prior year – 21.1%, with new listings in May falling 15%. Prices are staying relatively stable as a result of the tight inventory for sale.
It has been very encouraging to have received a number of calls from potential sellers in June, and I am hearing similar sentiments from my colleagues. It is our hope that in the next two months inventory will begin to grow to better meet the demand, and result in a rise in sales through the summer and into fall when restrictions on our movement are expected to be relaxed.
For sellers who are on the fence about listing during the heightened importance of social distancing, there have been several technological advances brought to market in the last few months. One such tool is Matterport, which you can see an example of in my listing at 501 Halyard Lane in Country Club Shores. Click HERE for a look at how this photographic system allows 3D tours, scaling and measurement of even the most minute spaces, and gives a prospective buyer the ability to truly “walk-through” a home.
Buyers are motivated by both having to have put their search for new property on hold for the last few months, and, also the historically low interest rates. If you are considering selling your home or condo, now is an excellent time to come to market with your property – with limited inventory likely in your neighborhood, let’s have a conversation about when and how to get started with your listing.
Because existing property inventory is so low, there has been a rapid rise in new home sales. Development of new communities east of our waterfront neighborhoods is brisk and sales in some areas are well ahead of expectations. I believe that this trend is not only attributable to buyers wanting new construction, but also the low inventory in Sarasota’s most desirable Bay and Gulf Front areas.
When it comes to forecasting the trends to expect in the months ahead, it is virtually unanimous from the nation’s top economists and real estate experts that the housing market will be a leader in the economic recovery. With existing real estate inventory shortages across the country, interest rates expected to remain low and considerable pent-up demand, prices are projected to remain stable and increase slowly so real estate will continue to be considered a secure investment.
Whether interested in buying new construction or an existing home or condominium, or planning to sell your property, I am confident that my market experience and relationships will allow me to be your most valuable and effective resource to achieve your objectives, especially during these extraordinary times. Let’s talk!
And now for my statistical report on the Sarasota Real Estate Market activity:
Sales
- Total market dollar volume this past month was $296 million, which decreased by $263.9 million or 47% from a year ago.
- Broken down, single-family sales were $220.6 million behind last year, and condo sales were down $75.4 million from a year ago.
- The volume in single-family was down $174 million from last year and $54.7 from last month. Condo volume was down $90 million from last year and $29.2 compared to last month.
- The number of properties sold this past month was 804, or 604 less than a year ago and 142 fewer than in April 2020. The sales total includes 562 houses and 242 condos.
- Sarasota’s monthly sold properties average was 1,074 in 2019 and in 2018 it was 1,001.
- Florida’s single-family sales in May decreased 36.2% from last year, and condo sales were 50.3% below last year.
- U.S. single-family sales declined 24.8% and condos fell 41.4%.
- Of the closed sales the past month 28 were for over $1,000,000, 21 were houses and 7 were condominiums. In 2019 Sarasota averaged 32 house sales and 14 condo sales per month over a $1 million, a small portion of our overall sales.
- Homes sold in all of Florida over $1 million were down 43.4% compared to May 2019, and condos closed at over $1 million were off by 43%.
- Listings that went pending last month were 1,222 only a decrease of 22 transactions from a year ago. For 2019 the monthly average for pending sales was 1,121.
- Florida’s single-family pending sales narrowly increased by 2.3% and condo contracts declined 16.8% compared to last year.
- U.S. pending sales in May were 5.1% behind a year ago.
Prices
- Single-family homes in Sarasota were sold at a median price of $297,995. The 2019 monthly median price for houses sold was $288,325.
- In May, Florida median price for single-family homes was $270,000, in increase of 1.5% over last year.
- The national median price for existing homes grew 2.4% to $287,700.
- The condo median sale price was $241,750. The 2019 monthly median price was $236,797.
- Median price for a Florida condo last month was $201,472, an increase of 3.3% over May 2019.
- U.S. median condo prices fell slightly to $252,300, a 1.6% decrease.
- Sarasota houses sold on average for $392,471 where the 2019 monthly average was $393,418.
- Sarasota condos sold for an average price of $311,718 last month. The condo monthly average sale price in 2019 was $346,755.
Inventory
- Currently there are 3,772 properties for sale in Sarasota. This is a decrease of 393 listings from the month before. There were 4,086 listings at the end of 2019 and 5,401 listings at the end of 2018.
- Of the available inventory for sale, 577 properties are listed for over $1 million or only 15%. Of the active listings over $1,000,000, 409 are houses and 168 are condos.
- The Sarasota market had 1,078 new listings the past month. The market averaged 1,040 new listings per month in 2019. Of the new listings in May, 66 properties were listed over $1,000,000.
- Current inventory results in 3.2 months of single-family homes for sale in Sarasota and 4.5 month’s supply of condominiums.
- Florida currently has 3.3 months of single-family inventory and 6 month’s supply of condominiums. Inventory of Florida properties selling for over $1 million have decreased about 9% from last year.
- U.S. inventory of existing homes and condos has fallen to a 4.8-month supply, 18.8% less than a year ago.
Michael’s Featured Listing:
