Local inventory of properties for sale remains well below buyer demand. The Sarasota Real Estate Market is still well in the “seller’s market” territory. In fact, total existing properties for sale remain at historical lows in all price categories. Current months of inventory for sale (the measure we use to determine how long it would take to sell available inventory) is just 3.2 months. A balanced market is considered one with at least 6 months of inventory, which we last saw between December 2018-March 2019.

The frenzy in the real estate over the last few years is still fresh in our minds, but the slowed market is not cause for alarm. When comparing to the last “normal” years of 2017, 2018 and 2019, the luxury sector is outperforming those years quite measurably. Current inventory of properties over $1 million is about 6.3 months, but as shown in the chart here, is well below historical norms. Also notable is the comparison of sales and days on market when looking at previous more typical years.

As evidenced by the diminished days between listing and contract, higher pace of closings, and considerable fall in months of inventory in the luxury market, it is clear there are still plenty of buyers. Prices in the tier over $1 million also continues to look strong with an average sale price in 2023 of $2,011,000 year-to-date, just 7% under the same period in 2022 and 7% higher than 2019. The average number of million-dollar-plus sales year-to-date are 125 per month. With such a small number of transactions in that price tier, even just a few ultra-high-priced properties can shift the data.

For example, there have been no major condominium projects finished in 2023. However, before the end of the year both Bayso with 149 residences and potentially also the Demarcay with 39 units are expected to be ready for occupancy. So, while million-dollar condo sales fell 30% from last July, the volume generated from these large projects by year-end should bring it back into line with prior years. Right now, luxury condo transactions are dependent on resale inventory.

The continuing existing housing deficit is fueling new home construction and sales. Last month’s report from the Census Bureau notes that new home sales are up 31.5% over last year with 7.3 months of supply. Home builder sentiment is high, with announcements of new developments in the Sarasota-Manatee region regularly making headlines.

Existing homes are still very much in demand. As a would-be seller, you can be guaranteed a new listing will gain a lot of attention from the many buyers waiting for the next great property to come to market.

As we near the busy fall selling season, those considering bringing their property to market need to begin the process of finding a seasoned real estate professional, have them give you an assessment of potential pricing and improvements to consider prior to listing, as this can take several months to accomplish. Please reach out if you are considering selling your home – it would be my pleasure to meet with you to discuss your goals.

Michael Moulton is a Realtor with Michael Saunders and Company.

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