The May 2024 Sarasota Real Estate Market data had mixed activity with growth in the existing single-family segment and a slight dip in sales of condominiums. When combined however, sales were still stronger when compared to prior year. Across the U.S., according to the National Association of Realtors, May sales dipped almost 3% with the southern region reporting a 5% decline in sales.
In the Sarasota luxury segment, where my transactions are concentrated, May sales activity over the last four years has been remarkably stable. When compared to pre-pandemic years, May sales this year were more than double what was typical in what were considered “normal” years. Since the end of 2020, seasonality in our real estate market has been far less cyclical, with shoulder and summer months often seeing activity similar to early winter.
With pending sales (contracts signed and typically closing in 30-60 days) still exceeding 2019 and earlier years, I believe we will see year-over-year growth continuing in the luxury market, or at least remaining comparable to sales activity during the post-2020 years.
With the country entering a presidential election cycle, I have been asked how it might affect the housing market. According to my research and insight from market experts and economists, it is very common to see a slowdown of sales in the fall of presidential election years, with recovery coming after the new year.
Median and average sale prices in the luxury segment have remained relatively steady for the last several years. While lower prices points have been seeing appreciation of 5% or more year-over-year, transactions in the upper tiers are fewer so typically reflect events such as new developments coming to market, or the one-off ultra luxury home or condo sale in the month.
Inventory in all categories continues to increase, and as you can see in the attached chart, quite visibly in the luxury tier. This increase in inventory is helping to tame price appreciation. While the change on the chart appears quite large, homes available in the luxury tier are still just about 6 months of inventory. In the years pre-2020, the luxury tier rarely dipped below 10 months of inventory and often exceeded 24 months.
Across all price points, 5-6 months of supply typically signals a balanced market where neither buyers or sellers have an advantage. However, economists and real estate experts still point to every market being local, and what may be balanced in one city may tip the scales at differing levels of inventory for sale in others.
All signs in the Sarasota Real Estate Market suggest that our foundation is strong, and whether we see interest rates fall (or not) and/or a decline in sales activity driven by the election (or not), the months ahead should remain stable if not continue to experience moderate growth in prices and sales, and inventory of available properties continue to rise. I remain confident that demand for high quality and well-located Sarasota homes and condominiums will keep our market on course for the foreseeable future.
It would be my privilege to work with you, your family, and friends in acquiring or selling 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 experienced, 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 May 2024 data showing
Sarasota’s homes and condos selling for over $1 Million:
And now for my statistical report on the May Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in May was $862.8 million which increased by $31.4 million from a year ago.
- The number of properties sold was 1,273, 30 more than a year ago. The monthly average of sold properties this year is 1,039. The monthly average in 2023 was 953, in 2022 it was 1,004 and in 2021 1,369.
- Florida’s single-family sales decreased slightly from last year, and condo sales were 8.6% below last year.
- U.S. sales of single-family homes declined 2.1% and condos were down 9.1%.
- Of the closed sales in Sarasota in May, 161 were for over $1,000,000. In 2023 Sarasota averaged 126 sales per month over $1 million, in 2022 the average was 111 and in 2021 128.
- Florida homes sold for more than $1 million had a 14% increase over May 2023, and condos closed at over $1 million fell 1.6%.
- Last month 981 listings went to a pending contract. Year to date there has been an average of 1,112 pending sales per month. There was an average of 1,159 monthly pending transactions in 2023, 968 per month in 2022, and 1,347 in 2021.
- Florida’s single-family pending sales decreased 1.8% and condominiums fell 13.8% compared to last year.
- U.S. pending sales in May were 7.4% behind of a year ago.
Prices
- Single-family homes were sold at a median price of $530,000. The average monthly median price for houses sold is $525,600 this year. The average monthly median price for 2023 was $510,000, in 2022 it was $493,000 and in 2021 $394,000.
- In May, Florida median price for single-family homes was $427,000, an increase of 1.6% over last year.
- The national median price for existing homes grew 5.7% to $424,500.
- The condominium median sale price was $368,000. The average monthly median price for condos sold is $392,500 this year. The average monthly median price for condominiums sold in 2023 was $387,400, in 2022 $383,000 and in 2021 $317,000.
- The median price for a Florida condominium in May was $330,000, a 1.5% increase over 2023.
- U.S. median condominium price grew 5.1% to $371,300.
- Sarasota houses sold on average for $743,000 for the month. The year-to-date monthly average is $766,000. The annual monthly average was $695,000 in 2023, in 2022 $683,000 and 2021 $573,000.
- Condominiums sold for an average price of $546,000 last month. The year-to-date monthly average is $639,000. The annual monthly average was $622,500 in 2023, in 2022 $563,000 and in 2021 it was $527,000.
Inventory
- Currently there are 5,249 properties for sale in Sarasota. At the beginning of this year there were 4,426 listings for sale, 2,431 in 2023 and 829 in 2022.
- The Sarasota market had 981 new listings in May. The market averaged 1,318 new listings monthly in 2023, 904 in 2022 and in 2021 it was 1,321.
- Current inventory results in 5 months of single-family homes for sale in Sarasota and 6.3 month’s supply of condominiums.
- Florida currently has 4.4 months of single-family inventory, an increase of 60.5%, and 7.2 month’s supply of condominiums, which grew 91.3% over May 2023.
- U.S. inventory of existing single-family homes has grown 17.9% and condo inventory is up 22.7% over prior year.
