Tourism and Real Estate - a Great Pairing

Real Estate

BY SRQ DAILY SATURDAY PERSPECTIVES EDITION SATURDAY DEC 5, 2015

The Sarasota Real Estate Market activity has long been known to swell with the arrival of our tourist season. 2015 is reported to be a banner year for tourism —more than 67 million domestic visitors and nearly 12 million from other nations journeyed to Florida, with more than 1 million coming to the Sarasota area. And it should come as no surprise that a large number of those made a decision to find a new home. Tourism continues to be one of the largest industries in Florida and the key driver of our new residents. 

The peak tourist season is just beginning and we are thankful to be one of the most desirable destinations in the state to visit, and better yet… to live! Sarasota is not only a magnificent city brimming with fine cultural activities, abundant award-winning dining and shopping, beautiful beaches and myriad other recreational offerings, it also still provides one of the best real estate values compared to other waterfront communities in the state. 

Sarasota Real Estate median values hover in the $215,000 range, and average housing prices are under $300,000. The Naples area, our closest rival in the state, has a median price in excess of $300,000 and average prices at $425,000.  Our competitors on the east coast of Florida have median prices ranging from the $265,000-300,000.  With our regional tourist boards projecting that hotel booking pace and new properties coming on line will push the number of visitors well above this year's record numbers, our Sarasota Real Estate Market will be affected in many ways—most notably, demand will remain above supply and prices will continue to be pushed higher. 

Though inventory climbed some in October, in the luxury market where the majority of my transactions take place, prime Sarasota Real Estate is still very limited, which will keep upward pressure on prices. Home prices have been reported to be growing at twice the pace of inflation. October's median price of a single-family home in Sarasota rose 18 percent over prior year, and condos increased almost 6 percent.  

The following data reflects reporting through the local, state and national Realtor associations, as well as a number of other statistical providers nationwide. In the real estate industry, there is no shortage of analysts and resources to be sure!. As one of the nation's most important economic indicators, everyone like to keep their eye the housing market.

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

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