The Sarasota Real Estate Market has certainly shifted in the last six months. The attached charts show 10 years of activity in April in the over $1 Million price tier. Available inventory is returning to a more normalized level, at the same time sales have relaxed from their peak in 2021.

While sales slowed starting in the second half of 2022, there has been considerable activity in the luxury market since the first of the year bringing closings in line with historical averages in a healthy market. Pending sales in April fell by double-digits across Florida and the U.S., but in Sarasota the year-over-year decrease was just 6%. With busy spring showings traffic, I am optimistic we will see sales remain steady in the next few months.

New construction continues to fill a void left by fewer existing homes and condos entering the for-sale inventory, and home builders’ confidence that demand will remain strong is at its strongest in six months. However, they are still facing supply and labor challenges, along with newly tightened conditions and increases in costs of construction and development loans.

Would-be sellers of existing homes have been slow to list for several reasons, including wanting to hang onto their low-rate mortgages, fear of not finding a suitable place to move, their speculation prices will start to fall, and more. Experts believe if rates fall to near 5%, those sitting on low interest rate mortgages will begin to list their homes. And while prices are appreciating more slowly than they have over the last two years, they will continue to rise due to the still limited inventory to meet demand.

New luxury listings year-to-date are up 18.8% compared to the same period last year. Even with more inventory, our listings in the upper price points are selling at near list price, multiple offers are not unusual, and properties in good condition and well-located are moving quickly.

I expect the summer months will continue to see strong buyer interest, making now an excellent time to consider bringing a property to market. However, I am seeing a shift away from buyers accepting of some defects because of the urgency needed to “win” a home during the pandemic period. Buyers now are a bit more thorough in their inspections and insistent on repairs or credits for repairs, so sellers will need more time to prepare their properties for sale than in the last few years.

As the Sarasota Real Estate Market continues to show positive signs, conditions are unpredictable due to ever-changing financial, political and global influences. Partnering with an agent who understands the fluid market, what that means for you and how it impacts your goals is critical. It is more important than ever to work with a highly experienced, locally as well as globally connected agent/broker, skilled negotiator and advocate.

Michael Moulton is a Realtor with Michael Saunders and Company.

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