Activity in the Sarasota Real Estate Market maintained a positive direction in November, when analyzing data on growth over prior year. With total sales and dollar volume exceeding prior year by 6% and 10.5% respectively, transactions in the luxury tier up by more than 40%, and prices remaining stable, all signs are pointing to closing out the year with solid gains across the board.
The only area with declines was inventory, which earlier this year was making progress toward a more balanced market where neither buyers and sellers are in an advantageous position. Inventory of existing homes and condos has fallen nearly 18% year-over-year. This would normally push prices higher, however, last month median prices remained relatively stable compared to prior year. With just 3.9 months of single-family home inventory and 4.2 months of condos on the market, if we don’t see either a surge in listings of existing homes or a strong pace of finished new product, prices will move higher in the months ahead.
The most recent survey of national home builders revealed that their confidence is at a 10-year high – the highest since June of 1999. New home building nationally is the strongest in 12 years with November sales growing 16.9% and permits increasing 11% over prior year.
Economists and analysts have begun to release their year-end projections and thoughts on 2020. For the first time in the post-World War II era both mortgage rates and unemployment are under 4%. Economists are expecting relatively little upward movement in rates in 2020 – potentially increasing to 3.8%. Compare that to 12.7% in 1980, 8.12% in 1990, 6.29% in 2000 and you see how remarkable the current rate is. Because of this, and the expectation of more job growth, the real estate market is expected to remain active here and across most of the country.
The Sarasota Real Estate Market is consistently cited as healthy with strong demand. Based on my own busy pace of buyer traffic, exciting new developments underway in the region, stable economic conditions, and consumer and home builder confidence, I feel certain that our market is poised to continue its steady expansion.
And now for my report on November Sarasota Real Estate Market activity:
Sales
- Total market dollar volume this past month was $364.6 million, which increased by $34.5 million.
- Broken down, single-family sales were $275.1 million and condominium sales were $89.5 million for the month.
- The number of properties sold this past month was 935, 51 more than a year ago. The sales total includes 707 houses, 135 ahead of last year and 228 condos, 84 below last year. The year to date the monthly average is 1,066 while in 2018 it was 1,001.
- Florida’s single-family sales increased 6.1% from last year, and condo sales were 6.3% below last year.
- U.S. single-family sales rose 3.5% and condos were down 3.4%.
- Of the closed sales the past month, 44 were for over $1,000,000, 23 were houses (10% more than prior year), and 21 were condominiums (almost double last November.)
- Florida’s homes sold for in excess of $1 million were 9.1% higher than November 2018 and condos closed at over $1 million fell 18.3%.
- In 2018 Sarasota averaged 29 house sales and 17 condo sales per month over a $1 million, a small portion of our overall sales. This year we are averaging 31 house sales and 13 condo sales per month for over $1 million.
- Listings that went pending last month were 1,055 an increase of 238 transactions from a year ago. For 2018 the monthly average for pending sales was 1,031.
- Florida’s single-family pending sales increased 14.4% and condos rose 8.6% compared to last year.
- U.S. pending sales in November were about 7% higher than last year.
Prices
- Single-family homes were sold at a median price of $280,000. The 2018 monthly median price for houses sold was $281,662 and 2019 year to date it is $288,810.
- In November, Florida median price for single-family homes was $265,000 a 3.9% increase over last year.
- The national median price for existing homes grew 5.4% to $274,000.
- The Sarasota condominium median sale price was $244,745. Year to date the monthly average is $233,602 and the 2018 monthly median average was $230,989.
- Median price for a Florida condo last month was $195,000, a 5.4% increase over November 2018.
- U.S. median condo price grew to $248,200, a 4.5% increase.
- Sarasota houses sold on average for $389,121, where the 2018 monthly average was $384,110.
- Condominiums sold for an average price of $392,575 last month and in 2018 the condominium monthly average was $355,047.
Inventory
- Currently there are 4,175 properties for sale in Sarasota. This is an increase of 149 listings from the month before, however well below where we started 2019. There were 5,401 listings at the end of 2018 and 4,401 listings at the end of 2017.
- Of the available inventory for sale, 629 properties are listed for over $1 million or only 15%. Of the active listings over $1,000,000, 449 are houses and 180 are condominiums.
- The Sarasota market had 1,378 new listings in November. The market averaged 1,289 new listings in 2018. Of the new listings last month 131 properties were listed over $1,000,000.
- Current inventory results in 3.9 months of single-family homes for sale in Sarasota and 4.2 month’s supply of condominiums.
- Florida currently has 3.6 months of single-family inventory and 5.5 month’s supply of condominiums. Inventory of properties selling for over $1 million have fallen slightly from last year.
- U.S. inventory of existing homes and condominiums for sale has dropped 5.7% year-over-year.
Having served clients in The Sarasota Real Estate Market for more than 35 years and carefully watching business conditions has provided me essential insight to aid both buyers and sellers in achieving their objectives in today’s environment. The value of a highly experienced, locally as well as globally connected agent/broker, and a skilled negotiator and advocate cannot be understated in this market. I look forward to working with you, your family and friends in realizing your goals in acquiring or selling your properties.
Wishing you a healthy, happy and prosperous New Year.
