Sarasota Real Estate Market Update

What is the state of the real estate market in Sarasota? If you read the papers you would think we are in the midst of a full scale market decline. Is it really true?

In my opinion, we are certainly in transition and we moved there very quickly. However, the transition is back to the “normal” type of market that we had two plus years ago. It was not that long ago when it took six months to a year to sell a million dollar property.

Are there fewer people buying? That is a tough question to answer.

There are probably fewer “investor” buyers than there have been over the last two years.

Why? Certainly one reason is the increase in interest rates. Another reason is just the slowdown in real estate appreciation. In many cases, investors needed 20% plus appreciation per year to make their investment equation work. Those levels just cannot be sustained.

However, I would argue that there are just as many, if not more, people interested and buying into the Florida lifestyle. They are the “end user” buyers and these are the individuals that are still out there buying right now. For them it is a Buyer’s market.

I would encourage anyone who is thinking about buying to get out there and take advantage of this transition. As the inventory of homes available for sale stabilizes, you will slowly see this advantage dissipate.

Here are some interesting statistics for residential properties over $750,000. These statistics come from the Sarasota Association of Realtors.
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Are sales really off year to year? I would say new sales are slightly down and/or relatively consistent from year to year but the inventory of homes available for sale has increased drastically. The excess inventory is what is affecting the market.

For more information on the specific markets related to our Featured Communities please click on the individual community. You are also able to see what is currently listed for sale in each of those areas.

Please check back for future Newsletters which will include a market update as well as other interesting topics.

I always welcome your comments.

Contact
Joel Schemmel
50 Central Avenue, Suite 110
Sarasota, FL 34236
Phone: (941) 308-6497