Sarasota Real Estate Market Forecast

Are you considering the scenic, attraction filled and exciting Sarasota area for a home purchase in the near future? Millions of visitors flock to Florida each year to enjoy the sunshine and fun, and a large number of them have decided to move to Sarasota in recent months, being drawn in by the warm weather, beaches, thrilling ocean sports, active nightlife, quality restaurants and much more.

Current market trends suggest that the Sarasota area will remain one of the top places in Florida to purchase a home, as property values are expected to continue to rise in the next few years. Industry experts predict that home demand in Sarasota will continue to be strong in 2017, similar to the past few years in which there have been several months with record breaking sales numbers.

November 2016 reports suggest a healthy market

Statistics published by the Realtor Association of Sarasota and Manatee show that sales for condos and single family homes in the Manatee and Sarasota area were up 8.7 percent in November 2016 compared to November 2015.

Many homeowners have come close to recovering their pre-2008 recession home values or have already fully recovered their values. Housing prices are estimated to rise 4.6% nationally in 2017 with Sarasota home prices expected to reach up to 4% growth or higher and 2% growth at minimum.
Zillow statistics show that median home values have increased 7.7% in Sarasota from November 2015 to November 2016 with 2.4% growth estimated in the next year.

Inventory shortages may decline in 2017 in Sarasota

Inventory shortages have been a problem all throughout the country in 2016, and the Sarasota area was no exception. In November of 2016, single family home inventory increased in the Sarasota area by 10 percent compared to November 2015, signifying that there may be a slight shift from a seller’s market to a buyer’s market.

As demand continues to rise, inventory problems may continue throughout 2017, but an increase in new construction will offer more opportunities for those who are looking to purchase a home or relocate. Downtown condominium projects are currently underway with many of them expected to be completed in 2017 along with several new home constructions in surrounding communities like Lakewood Ranch and Venice.

Sarasota housing demand is expected to rise in 2017

The Sarasota area remains one of the nation’s top retirement destinations, and as Baby Boomers continue to retire, many of them will be looking to relocate Florida and the Sarasota region or purchase a second home/vacation home in the area. Realtor.com estimates that 30 percent of buyers in 2017 will be Baby Boomers, so a significant amount of the available inventory is expected to be sold to that group.

At the same time, Millennials are now benefitting from the economic stability of the past several years and are purchasing their first homes to establish and build their wealth. Sarasota remains an attractive destination for this group with its plentiful job opportunities and attractions, and thus the market will be further strengthened by their presence and demand. Home prices will likely increase as a result of these two demographic forces along with a desire for buyers to lock in low interest rates.

There are plenty of good reasons to move to Sarasota and invest in a home in the near future, as prices continue to rise and it remains one of the most sought after places to live in the country. Contact us at (941) 308-6497 if you have any questions at all about the Sarasota real estate market and to discuss its pros and cons for your next purchase.

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