The Moulton Sarasota Real Estate Report – June 2019 – Market Balance Boosts Sustainability

Sarasota Downtown

The number of transactions in the Sarasota Real Estate Market last month continued to show that the region has moved to more balanced conditions than have been seen over the last several years. Sales in the Sarasota market were nearly equal to last year. Prices grew at a healthy pace and inventory of both single-family homes and condominiums also moved higher. Pending contracts signed in June increased signaling that in the months ahead we will likely see sustained market conditions.

Condominium sales are still lagging well behind last year when there was a burst of new projects coming to market. It is in this segment where the greatest decrease in volume has occurred in the first-half of 2019. Several projects are under construction with the largest expected to begin welcoming new residents toward the end of the year and several others coming to market in 2020. Existing home inventory is still leaning towards a seller’s market, but the condo segment at 5.3 months of inventory is in the range of favoring neither buyers nor sellers.

I have been encouraging my sellers in the condominium segment to meet with me to discuss pricing and sales strategies to ensure we are staying competitive. Especially in the sector over $1 million, where inventory is nearly 40% more dense than last year at this time, purposeful and tactical approaches are needed to make sure our listings are set to sell.

Home builders in July once again responded to NAHB’s monthly survey that they continue to have strong confidence in the market. As has been well reported in our region, new communities in the eastern portions of our counties are fulfilling strong demand for modern construction and amenities. For existing home sellers, they also need to be sensible about expectations as inventory in their sector grows.

As has been mentioned in my recent reports, I remain bullish on the Sarasota Real Estate Market. With the flow of “tax refugee” relocations to our area expected to continue, excellent economic conditions – including the longest stretch of mortgage rates below 5% in more than 60 years, low unemployment, as well as significant strength in our condominium and home building regionally, there is plenty of supporting evidence that our market balance and steady conditions suggest a solidly sustainable environment.

And now for my statistical report on the June Sarasota Real Estate Market activity:

Sales

  • Total Sarasota Real Estate Market dollar volume of $431.6 million in June decreased by $25.9 million, or 6% from the same month a year ago.
  • Broken down, single-family sales were $326.1 million and condominium sales were $105.5 million for the month.
    • The volume in single-family was nearly equal to prior year while condo volume was down over 17%.
  • The number of properties sold in June was 1,165, 17 less than a year ago. The sales total includes 821 houses (2.9% ahead of last year) and 344 condos (10.4% below 2018.) The 2018 monthly average for sold properties in Sarasota was 1,001.
    • Florida’s single-family sales decreased 1.9% from last year, and condo sales were 9.4% below prior year. Homes sold for in excess of $1 million were 5.5% lower than June 2018 and condos closed at over $1 million fell 25%.
    • U.S. sales fell with single-family sales declining 1.7% and condos down 6.5%.
  • Of the closed sales in Sarasota last month, 44 were for over $1,000,000, 38 were houses and 6 were condominiums.
  • In 2018 Sarasota averaged 29 house sales and 17 condo sales per month for over a $1 million sale price, a small portion of our overall sales.
  • Listings that went pending in June were 1,091, an increase of 21 transactions from the same month last year. For 2018 the monthly average for pending sales was 1,031.
    • Florida’s single-family pending sales increased 4.9% and condos fell 1.5% compared to last year.
    • U.S. pended sales in June were 1.6% ahead of a year ago.

Prices

  • In June, Sarasota’s single-family homes were sold at a median price of $290,000. The 2018 monthly median price for houses sold was $281,662.
    • In June, Florida median price for single-family homes was $270,000 a 3.8% increase over last year.
    • The national median price for existing homes grew 4.5% to $288,900.
  • The condominium median sale price in Sarasota was $234,000 in June. The 2018 monthly median average was $230,989.
    • Median price for a Florida condo last month was $194,900, a 2.6% increase over June 2018.
    • U.S. median condo price grew to $260,100, a 2.8% increase.
  • Sarasota houses sold on average for $397,227 in June, where the 2018 monthly average was $384,110.
  • Condominiums sold for an average price in June of $306,559. The condominium monthly average sale price in 2018 was $355,047.

Inventory

  • Currently there is available inventory of 4,514 properties for sale in Sarasota. This is a decrease of 360 listings from May. There were 5,401 at the end of 2018 and 4,401 at the end of 2017.
  • Of the available inventory for sale, 642 properties are listed for over $1 million or only 14%. 471 of the active listings over $1,000,000 are houses and 171 are condominiums.
  • Sarasota County had 1,028 new listings in June. The local market averaged 1,289 new listings in 2018. Of the new listings the past month 55 properties were listed over $1,000,000.
  • Current inventory results in 4.2 months of single-family homes for sale in Sarasota and 5.3 month’s supply of condominiums.
    • Florida currently has 3.9 months of single-family inventory and 5.7 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased about 6% over last year.
    • U.S. inventory of existing single-family homes is virtually equal to last year and condo inventory has grown 4.6%.

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 more than 37 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.

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