The Moulton Sarasota Real Estate Report November 2020
Housing Market Continues Remarkable Strength
While Sarasota experienced one of the warmest Novembers in history, its housing market was downright HOT!
The Sarasota Real Estate Market had considerable growth in sales over 2019 in eight of our 11 months this year, with only April, May and June showing declines, of course due to the pandemic. With pending sales recorded each month also showing remarkable increases, the robust pace of sales activity is expected to continue over the next few months.
Total existing homes and condominium sales year-to-date have risen 7.5% compared to last year. And another remarkable statistic is that total existing inventory for sale has fallen 77% since January of 2020, creating one of the greatest inventory vs demand imbalances I can remember in my 38 years in the Sarasota Real Estate Market.
These extraordinary sales, pending sales and inventory conditions are causing a narrowing of list-to-sale prices. And list-to-contract periods for single-family homes has also fallen by more than 60% compared to prior year. As new listings and newly built homes cannot meet the incredible demand, The Sarasota Real Estate Market remains a solid seller’s market.
Florida is clearly one of the beneficiaries of the COVID-19 effects on American’s pick of where to live. Where choosing a residence was largely determined by location of workplace prior to the pandemic, lifestyle has now become the priority. A new term has been coined for what were known as “snowbirds” in Florida – now called “summer birds” for their choice to make our state the primary residence and only leave for the mid-summer heat.
Aside from the obvious warmer year-round temperatures for most of the new residents, allowing for more outdoor activities including recreation and dining, more spacious homes and condos for those relocating from urban areas, and certainly Florida’s income tax benefits are weighing on moves as well.
Builder confidence remains at its 2nd highest level in 35-year recorded history, however they report struggles to meet demand in delivery of those new homes due to availability of building supplies and skilled labor. November’s sales of newly built homes in the U.S. rose nearly 21% over last year, and the median price is now $335,300. The cost differential in 2019 of newly built vs. existing single-family homes was more than 20% – this year that margin has narrowed considerably, again a result of limited existing home inventory for sale.
Finally, the luxury tier of the Sarasota Real Estate Market can also be referred to as remarkable in 2020. Sales in this segment of pricing (over $1 million) has grown 54.2% over prior year, and inventory has fallen 47% year-over-year.
As affluent Americans are taking advantage of their increase in home equity and gains in the stock market, along with the flexibility of working from anywhere and appeal of the stability of the home-asset in our volatile economy, it is difficult to be anything but bullish on the ability of the Sarasota Real Estate Market remaining strong as we enter 2021.
And now for my statistical report on the November 2020 Sarasota Real Estate Market activity:
- Total market dollar volume this past month was $632 million, which increased by $267.4 million or 73% from a year ago.
- Broken down, single-family sales were $460.1 million (up 80.5%), and condo sales were $171.9 million (up 56.6%) for the month.
- The number of properties sold this past month was 1,272, which is 337 more than a year ago. The sales total includes 850 houses, 228 ahead of last year; and 422 condos, 109 above last year. The monthly sold properties average year to date is 1,146 and in 2019 it was 1,074 and in 2018 it was 1,001.
- Florida’s single-family sales increased 22.9% from last year, and condo sales were 30.2% above last year.
- U.S. single-family sales rose 25.6% and condos were up 26.8%.
- Of the closed sales the past month 96 were for over $1,000,000, 71 were houses (more than double prior year) and 25 (19% more than 2019) were condominiums.
- Florida’s existing single-family homes sold for over $1 million were 125% higher than November 2019 and condos rose 111.8%.
- In 2019 Sarasota averaged 32 house sales and 14 condo sales per month over a $1 million. 2020 year-to-date we have averaged 46 homes and 23 condos priced at over $1 million sold each month.
- Listings that went pending last month were 1,319, which is an increase of 264 transactions from a year ago. For 2019 the monthly average for pending sales was 1,121. Contracts signed for single-family homes were 28% higher and condos $19.8% higher than last year.
- Florida’s single-family pending sales increased 16.7% and condos rose 22.4% compared to last year.
- U.S. pending sales in November for all housing types increased 16.4%.
- Single-family homes were sold at a median price of $349,695. The 2019 monthly median price for houses sold was $288,325; year-to-date it is $318,335.
- In November, Florida’s median price for single-family homes was $305,000, a 14.1% increase over last year.
- The national median price for existing homes grew 15.1% to $315,500.
- Sarasota’s condo median sale price was $271,999 in November. The 2019 monthly median price was $236,797 and year to date it is $253,121.
- Median price for a Florida condo last month was $228,000, a 16.9% increase from November 2019.
- U.S. median condo price grew 9.5% to $271,400.
- Sarasota houses sold on average for $541,339 where the 2019 monthly average was $393,418.
- Condos sold for an average price of $407,343 last month. The condo monthly average sale price in 2019 was $346,755.
- Currently there are 2,467 properties for sale in Sarasota. This is a decrease of 213 listings from the month before. By comparison, there were 4,086 listings at the end of 2019 and 5,401 listings at the end of 2018.
- The Sarasota market had 1,253 new listings the past month. The market averaged 1,040 monthly new listings in 2019.
- Current inventory results in 1.8 months of single-family homes for sale in Sarasota and 2.9 month’s supply of condominiums.
- Florida currently has 2 months of single-family inventory and 4.7 month’s supply of condominiums.
- U.S. inventory of existing single-family homes and condos has declined 22% to 2.3 months of supply.
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 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.
Wishing you an enjoyable New Year’s Eve “wringing” out 2020 and ringing in a HEALTHY, Happy and Prosperous 2021!