The Sarasota Real Estate Market saw yet another month of double-digit, year-over-year median price growth. Repeating a statement made in my last month's market report, the median sale prices in Sarasota fell 60-percent at the floor of the market collapse. Since the lowest median prices were recorded in 2009, Sarasota has regained about 40-percent of that dip. 

Also important is that for the last several months, despite the significant increase in median price over prior year, the month-to-month growth is relatively steady and showing no signs of being frenzied or adverse. So, in answer to the question posed in this month's title—YES, in my opinion the Sarasota Real Estate Market is growing at a healthy pace and YES, there is adequate room for median prices to continue to rise at the moderate pace we have been seeing in recent months.

It would have been hard to miss the many recent articles reporting that February 2016 had fewer transactions that last year. The Realtors Association of Sarasota and Manatee reported that the number of sales in the Sarasota Real Estate Market fell 6-percent in February compared to the same month last year, and 3.6-percent for the first two months of the sales year compared to 2015. However, it helps to also review the Sarasota Real Estate Market in more detail to truly understand the impact of a calmed sales pace. 

• First, last year was a record year for transactions, and continuing at that rapid pace would create instability in the market - we simply do not have the inventory to support the activity rising at double-digit growth month to month. While new inventory is coming into the market, it is barely keeping pace with the void left from the sales activity as it is.
• With the significant drop in distressed properties on the market, actual number of transactions may be under last year's, but the dollar volume of the transactions has grown exponentially in the last year. 
• As a result of the plunge in distressed properties, numbers of transactions under $200,000 have fallen more than 50-percent in the last year, which made a great impact on total sales statistics.
• In contrast, in the luxury market where the majority of my work is done ($1 million and above), the number of properties sold in February was 43-percent higher than last year, with pending sales expected to close in the next couple of months also seeing growth over prior year.

With our sales activity holding relatively steady to last year, I believe the Sarasota Real Estate Market is an example of health and sustainability, and ripe to meet market projections of 5-percent increase in sales by year-end and price appreciation in the 10- to 12-percent range for all types and price points combined.

Looking at the real estate market on a more macro level, The Conference Board released its March consumer sentiment survey this week. According to their report, Americans are very optimistic of the business market conditions going into the next six months. This sentiment is important as there is a proven strong relationship between the financial market performance and sales of luxury properties. For the mid-market, a strong jobs picture and growing manufacturing affects housing decisions, and those are both also showing positive consumer attitudes.  

In our microclimate here in Sarasota, add the years of underproduction of new homes and condominiums that caused tightened inventories, attractive interest rates, a steady flow of new listings coming online, and recovered home equity for would-be buyers, and I anticipate that the Sarasota Real Estate Market has the foundation it needs to stay on its steady upward trajectory.

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