A Shift in the Market
There has been a significant shift in the market that is garnering the attention of investors and analysts. The June 2017 statistics reflect a rather healthy increase in available inventory as well as the median sales price and the median contract.
The data also shows that pending sales have increased and closed sales have decreased over the same time last year for the combined two county area, according to the My Florida Regional Multiple Listing Service. The longtime data gathering firm compiles data monthly and compares it to last year to better serve Realtors and potential buyers and sellers about the market.
Why is it important to know what’s happening in the industry on a local level? They give you a window into Sarasota real estate trends so you can make the most informed decision about your real estate needs.
Breakdown of the Data
Single family home sales have decreased, but only by 0.4 percent. The condominium market has had a robust increase of 1.5 percent over June 2017, however that has stayed mostly in the Sarasota area. This market makes an impression simply because it had a significant increase at 36.2 percent in pending sales. It also had a quick rise in new listings, but a decrease in the median prices. Pending sales, which can often be a strong gauge of future closed sales, increased by 7.9 percent for both condos and single-family homes in the combined two counties. If you compare the numbers year over year, the available inventory has shown a hearty jump. However, if you look at month to month, the numbers aren’t as healthy. Condo inventory has fallen by 6.2 percent just over last month while single family homes dropped at almost half that at 3.6 percent.
"With most sellers aware of the market being a sellers' market, they are testing the waters with higher listing prices," said Xena Vallone, 2017 RASM President. "And now we've been seeing a longer period of time between the listing and the contract."
New listings had a good month in late spring with improvement between April and May but a lag in June. Condos continued to decrease in new listings this month by 5.8 percent while single family homes also decreased, but at a slower rate of 3.4 percent.
The Sarasota real estate market came in with slightly longer days on market, 67 days from listing to close for condos and 61 days for single family homes compared to Manatte's DOM. Manatee’s condos spent 54 days on the market and single family homes came in at 47 days.
Median Sales Prices Rise
The healthy rise in median prices has been good for the market. The median price of a single family home in Sarasota, $275,000, rose 10.9 percent over last year. Manatee saw an increase of 4.5 percent for its single family home median price of $297,750. Condo prices pushed to almost 5 percent to $182,500. Sarasota County’s condos didn’t get that financial boon, taking a 2 percent decrease over last year and coming in at $215,000.
"An increase in median prices isn't always favorable for a seller," said Vallone. "While they are able to sell their home at a higher price, the challenge is finding a replacement home and at the right price."
What Does This Mean for Buyers and Sellers?
As we move closer and closer to a balanced Sarasota real estate market, buyers and sellers should consider their options. For sellers, a rise in median sales prices are great for the wallet, but an increase in inventory is causing Sarasota homes and condos to sit longer. As a buyer, price increases will obviously cost you more, but with an increase in inventory buyers have more Sarasota real estate to find their perfect home.
It's a great time to be in the market for a Sarasota home or condo for sale. If you'd like to find out more about the Sarasota-Manatee real estate market, contact the Key Solutions Real Estate team at (941) 894-1255 or send them a message today!