Sarasota Market Stays Hot

On Real Estate

BY MICHAEL MOULTON SRQ DAILY SATURDAY PERSPECTIVES EDITION SATURDAY JUN 6, 2015

Though it comes as no surprise for those of us working in the Sarasota Real Estate Market, according to just released data, April was another month of sizzling activity.  As predicted after robust contract signing activity in February and March, real estate closings in April were very impressive.

We usually expect temps to start to rise in April and the real estate market begin its cooling as it enters the "shoulder season." However, in addition to April recording some of the highest daily average temperatures on record, the Sarasota Real Estate Market remained "peak-season" Hot!

  • Hot sales - Total sales in Sarasota during the month of April were the highest recorded in history!
  • Hot contract signings - Pending sales grew 8 percent  over April 2014.
  • Hot price growth - Median prices for properties closed in April rose impressively for both single-family homes and condominiums.

With additional price movement upwards, but at a moderated pace, and all other Sarasota Real Estate Market indices continuing their positive growth, it appears we are on pace for a healthy summer. 

For those of us whose business tends to be in the $1 million and above category, recent reports of Sarasota-Manatee recording the highest percentage of all-cash sales in the country is not unexpected.  Between the international market believing that investing in luxury properties is a "safe place" to park their cash, to boomers and soon-to-be retirees making property investment a key to their long-term financial strategies, along with Sarasota's overall health and quality of life, and expectation for continued growth, we seem to be well positioned for more strong monthly results throughout our softer "shoulder" and summer seasons ahead, and more all-cash transactions.

I watch a variety of Sarasota Real Estate Market key market indicators, and some of those that are most meaningful in projecting the region's future prognoses are below.

In April 2014, we celebrated that the region recorded its 2nd highest number of sales in history. This year we surpassed even that! Total sales in April in the Sarasota Real Estate Market increased 2.4 percent from April 2014, the highest monthly sales amount ever, surpassing the previous high in April 2004 by a narrow margin of just a single sale.  April sales were also 2 percent  higher than last month.

Nationally sales fell 3.3 percent from prior month but grew 6.1 percent from prior year. Florida sales were strong, recording a nearly 15 percent increase over last year. Distressed sales (short sales and bank owned) as a percentage of total sales have continued to fall.  In April those sales were 15.6 percent of total sales in Sarasota, considerably below the 50 percent mark at the bottom of our housing market. Most of the sales of distressed properties are in price points below $500,000.

Michael Moulton is a certified residential specialist broker-associate with Michael Saunders and Company

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