Author Archives: Scott Norris

About Scott Norris

Scott Norris’ meticulous attention to detail, innovative business strategies and genuine love for his hometown add up to success for local home buyers and sellers. As one of the area’s leading agents, he prides himself on using these skills to create the best approach to maximize his clients’ important investments.

Tax Appreciation Rates on Downtown Sarasota Condominiums

I have looked at appreciation by building a couple of times since starting my blog. In the past, I have calculated the average sales price in each building over the course of a couple of years and compared one year to the previous to get the appreciation level. The trouble with this approach is the limited number of sales in each building. There are not enough sales during a single year in most buildings to add a shred of validity to numbers.

So, this year, I am taking a shortcut that should make things a lot more interesting and, I believe, more accurate. I will use the Just Value figures from the Property Appraiser. The Just Value is supposed to be the market value of the property before any exemptions or Save Our Homes reductions. There aren’t many details about the process the Property Appraiser uses to calculate Just Value (read about it here), but the results can be no less accurate than auto-valuation models used by Zillow or other websites.

The biggest negative about using the Property Appraiser’s figures is timing. We pay our property taxes in arrears. The last tax bill we paid, sometime between November 2016 and March 2017, was for the calendar year 2016. The valuation date for that year’s tax bill was as of January 1, 2016. The comparison I am making here is between this 2016 valuation and the 2015 valuation. The appreciation I refer to is what occurred during calendar year 2015. This timing issue is also the biggest reason people think the tax valuations are always wrong. If you expect them to represent the current value of your home, they are always wrong. The tax values are always somewhere between 10 and 22 months stale.

Finally, in the interest of word economy,  I will refer to the change in the Just Value as appreciation. It may not reflect the real change in market value of the properties being discussed and would probably best be described as what it really is – the change in Just Value as published by the property appraiser.

Appreciation by Building and Area of Downtown

The chart below shows the buildings that account for most of the sales downtown. I have grouped the buildings by area of town. The one thing you can say about the numbers is that the property appraiser did not paint everyone with the same brush- The rates of appreciation varied considerably.

The hottest place to be in 2015 was almost anywhere on Golden Gate Pointe.  While the area tied the group (of 2) that was adjacent to Ritz Carlton Drive, Golden Gate was home to the seven buildings with the most appreciation. Every building with an appreciation rate above 15% was on Golden Gate Pointe. All but 5 buildings on Golden Gate experienced double digit appreciation.

Interestingly, the central downtown and North Trail buildings brought up the rear, with each area showing a 3% appreciation rate. Except for the Renaissance, the 8 buildings in these 2 groups are made up exclusively of buildings from the previous wave of new construction.

Waterfront/view was apparently not the sole driving force in the appreciation. In terms of quality views and the percentage of residences in each building with high-quality water view, I don’t know that many places can beat Condo on the Bay. The buildings are so close to the bay that on a sunny day the inside of every residence looks blue because of the water reflecting in through the sliders. Yet the appreciation rates were a fraction of most other Bayfront buildings like ones on Gulfstream or Golden Gate.

Apprecaition Based on Beginning of the Year Just Value

This one is interesting and explains a lot about the schedule above. Here, I went residence by residence, regardless of building, and sorted each residence into 4 groups based on the 2015 tax values (as of 1/1/2015). The schedule below shows you appreciation ranges grouped by the beginning of year Just Value. Properties that started 2015 with over a $1M Just Value appreciated 50% more, on average, than properties valued at under $1M.

I have done several posts on this subject, and the results are always the same. The higher the value (on average), the better the property appreciates, the lighter the hit it takes in a downturn (the only 1 I have ever witnessed anyway), and the faster it bounces back after a setback. So, if you are considering the purchase of a luxury property, you can write this chart in the “reason to buy” column. The million-dollar condo you considered but missed out on last year will have a neighbor on the market asking about $100k more this year.

People that put off upgrading also didn’t do themselves any favors. Consider people thinking about an upgrade from their existing home. Maybe they are just seasonal visitors, but are considering the sale of their homestead and getting something larger, nicer, or with a better view to live here full time. The chart below shows how prices moved against this group during 2015.

Let’s take two people, both wanting to move up from existing properties but at different price points. One person owns a condominium downtown valued at $750k and is looking to sell that and buy a different condominium in the $1.5M range for a permanent home. The second person is doing the same thing but at higher price points – going from a $1.5M property to a $2.5M property.

At the beginning of 2015, the parties above must come up with $750 and $1M, respectively, in addition to the sales proceeds from their existing homes (closing costs excluded). By the end of 2015, they would need $850k and $1,125k, respectively, to buy the same properties they were considering at the beginning of the year. The spread increased by $100k and $125k under these two scenarios, due to difference in appreciation rates between the properties.  This is a 13% increase in the amount of money each would need to raise to buy the same condo a year apart.

Again, the figures here are nearly 2-year-old tax valuations. If you have questions about the current market value of your property, call a real estate professional.

Pending Report as of August 12, 2017

Pending sale volume was mostly up last week compared to the same week last year with every area showing increased activity except condos on Longboat and single family homes in west Bradenton.

The past 4 weeks were mostly flat with last year with single family home sales in west Bradenton being the only significant exception. The problem here is lack of inventory. The level of unsold single family homes in west Bradenton dropped below 200 for only the 3rd time 3 years.

For the past 13 weeks every area showed increased activity other than the aforementioned west Bradenton market. Even areas with large amounts of new construction are having strong existing home sales growth. In downtown Sarasota, existing home sales were up 19% over last year while Lakewood Ranch was up 16%

Pending sales report for Sarasota, Bradenton, Lonboat Key

Pending sales as of 08/12/2017
Click image to enlarge. Click Here to download as pdf

 

Top 3 Ways the Internet Has Changed Real Estate Sales

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Many people expected the internet would dramatically change the real estate industry and significantly lower real estate commissions. So far, this has not happened, nor really shown any signs of doing so. Still, the real estate industry has experienced a revolution, just not what was predicted. Here’s what’s happened so far.

The Internet Empowered the Consumer

First, the internet took considerable power from the hands of the brokers/agents and gave it to consumers. In the old days (up to the early part the 21st Century), if you wanted to know what was for sale, you had to call a real estate agent. If you drove past a home with a “For Sale” sign in the yard, you had to call the real estate office just to find out the asking price. If you wanted to make an offer, the real estate agent provided you with recent sales. If you were a seller during this period, you faced the same wall. The real estate agent shared the active listings and recent sales with you.

In every case, you had to trust you had a capable and honest real estate agent. One hundred percent of the information you received about listing availability, pricing, recent sales, and valuations all came from the real estate professional, and virtually all of it was unverifiable. I am sure the vast majority of the time customers received fair and quality information but equally sure there were varying flavors of quality, like everything else in the world.

Those days are over. Most buyers and sellers are well-informed about the market before they even contact a real estate agent. Active listings and recent sales, with photos, video, and considerable home and neighborhood data, are available on multiple real estate websites. Today, real estate agents and their customers have access to the same information. This means both parties to a real estate transaction (buyers and sellers) are also looking at the same data. Each party (buyer, seller, and real estate agents) may evaluate the information differently, but all the data is available to everyone.

The Internet Sped Up the Sales Cycle

Prior to the internet, real estate agents depended on direct mail and print advertising to get the word out about their inventory. Print advertising often took 1-2 weeks just to get the property in the local newspaper and maybe a month or longer to get the home into a home magazine. From there, there was a lag as buyers poured over the all the ads and identified the ones that appealed to them. Further, the information available was so thin, about the only action a buyer could take was to call the real estate agent. Most print ads (then and now) just have one small photo and two lines of text.

Price changes went the same way.  It took months for the entire buyer pool to get notified about a new listing or a price change that might put an existing listing within their reach.

Now, consumers sign up for automated listing updates through their agent or on their own with third party sites. Listings matching the customer’s requirements are emailed to the customer within minutes of being posted on MLS.  The listing information includes dozens of high resolution photos, video, pages of statistics and ad copy about the property and more. The result is that, within a week of entering the listing, the entire buyer pool is notified and fully educated about the listing. To get one customer this far along in the buying process 10-15 years ago took months.

The median days on market for a home (time between listing date and contract date) was just 47 days in 2016 for Sarasota and Manatee counties combined.  46% of all homes that sold, only required 30 days or less of marketing time.

The Internet Made Obsolete All Other Forms of Mass Media Marketing

The 2016 National Association of Realtor’s 2016 report, “Profile of Home Buyers and Sellers”, states 85% of home buyers said they first learned about the home they purchased either from the internet (51%) or from their real estate agent (34%). The yard sign accounted for another 8%, with friend, relative, neighbor, or homebuilder making up another 6%. That leaves 1% for newspapers, home magazines, open houses, TV, and direct mail. A few years ago, this “1%” constituted the entire marketing plan for the typical Realtor®.

The reason for print media’s disappearance is obvious. Relative to the internet, it has the following disadvantages:

  • Print media is not searchable. You can’t ask the newspaper only to show you homes under $500,000, for example.
  • It’s not complete. The Sunday ads only show a tiny percentage of all homes on the market.
  • The images are limited and poor (usually one in a print ad compared to 25 or more online, with video).
  • Print media is stale. Newspaper deadlines are close to a week and magazines may be over a month out.
  • Your only option to find out more about the listing is to call the agent. Online listings will contain most of the information the average person needs.

Implications for Sellers

If you are trying or about to try to sell your home soon, here is how these changes will affect you:

  • The amount and level of information available online is ideal for people that like to research a major purchase (that’s just about everyone). Most buyers are students of the market and often better informed than sellers. Today’s buyer is unlikely to pay you more than your home is worth. Pricing your home at more than it is worth will fool no one.
  • Plan on going to contract in 30 days or less. This is the new normal for the typical home because by 30 days, everyone in the market for your home will have a chance to see it. Many listings will literally receive thousands of online views during this period. After the initial 30 days, however, everything slows down exponentially. Now, you are only receiving views from new people entering the market, which is usually a fraction of the existing pool of buyers (everything comes in 1’s and 2’s). If your home hasn’t received at least 1 offer in 30 days, you need to take action, most likely, a price reduction.
  • Pricing your home has always been important, but now, it’s critical. And you don’t have to price your home high to get a good price. During 2016, 32% of all residential real estate that sold through MLS in Sarasota and Manatee counties did so at a price equal to or above the listing price. This also means pricing your home above market will make you look overpriced (or a poor value) compared to one third of your competition. Pricing your home at or just a few dollars above the market makes many people believe they are potentially “leaving something on the table”, a feeling amplified when they go to contract quickly. However, selling quickly no longer means you gave away your home. It means you sold into the largest audience you would ever have. It has to mean that you received the best price. If this initial pool of buyers didn’t like the value you were offering, what are the chances the next buyer entering the market will see it?
  • Internet marketing is much more passive than print advertising. Sellers often complain their agent is “doing nothing” because they don’t see the home in a print ad every Sunday or the agent is not holding an open house twice per month. Just know that, if all it took was two print ads or an open house to move a home, there wouldn’t be enough paper to print all the ads. Real estate professionals don’t favor these methods anymore because they don’t work (not for selling homes- building real estate brands, maybe). Same for open houses.

[CLICK HERE TO DOWNLOAD “Expired Listings- Don’t Become a Statistic“]

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About Scott

For 45 years, Scott Norris has lived in the Sarasota/Manatee area and has watched it flourish into one of Florida’s most highly sought-after residential real estate markets. Through his myriad of business experiences, including being a licensed CPA, working for a Big 4 accounting firm and a large national retailer, and selling real estate in the area for over 16 years, Scott has accrued a unique cache of knowledge and experience that enables him to serve as a dependable, invaluable resource for his clients. His understanding of business and finance, his knowledge of the local marketplace, with his professionalism and relationship building skills provide Scott with the foresight to address issues proactively before they become a problem and provide him with the ability to take a multidisciplinary approach to navigating today’s complex real estate environment.

 

Scott Norris
Broker/Associate
Coldwell Banker Residential Real Estate
201 Gulf of Mexico Dr. Ste. 1
Longboat Key, FL 34228
941-545-8706
Scott@ScottNorris.com

Downtown Sarasota Pending Sales Up 40% Last 13 Weeks

Downtown Sarasota pending condominium sales are up 40% over last year for the past 13 week period. Existing home sales accounted for most of the increase, up some 36% over last year. New constructions sales for the past 13 week period were less than 10% of total sales

Longboat Key pending condo sales were up 13% over the past 4 weeks and 26% over the past 13 weels. Pending sales were down most of the season and worked their way back to even with last year by the end of April. Most of the increase came during June.

In the Lakewood Ranch area (not all homes in the 2 zip code area are in Lakewood Ranch) pending home sales were up 14% over last year for the past 13 week period. New home sales were flat  during this period so the entire increase came from resales. New construction pending sales are a much larger component of total sales than in Downtown Sarasota. For both 2017 and 2016, the last 13 weeks had 62 pending new construction sales or about a quarter of all home sales in the area.

 

Pending Report as of June 24, 2017

A strong May and June is making for a huge second quarter.

The West Bradenton condo market was down for the week and only up 1% for the past 13 weeks largely due to the lack of inventory. May ended with just 257 condominiums on the market, not world record but low none the less. Worse, however was the lack of new listings during May. Only 51 condos were listed during May in West Bradenton, the least amount in any month over the past 10 years.

The big quarter in Downtown Sarasota is being powered by resales. While new construction pendings were up big (10 this year vs only 1 LY), existing home sales were up 35% with huge increases in the over $1M price points.

Click here to download pdf of report.

PENDING REPORT JUNE 10, 2017

Pending sales (new contracts executed) are the best indication of current demand. The pending report provides a current week, 4-week, and 13-week view of this important statistic across 6 markets by price point range. The biggest difference between pendings and actual sales is timing. The contract or pending date is the date the contract was executed. The contract is not considered a “Sale” until it closes, on average, about 30 days after the contract date. Another difference is that not all pending sales close.

 

Pendings for the week ended June 10, 2017

Pendings (New Contracts) for Lonboat Key, Downtown Sarasota, Lakewood Ranch, and West Bradenton ~ June 10, 2017

Pendings (New Contracts) for Lonboat Key, Downtown Sarasota, Lakewood Ranch, and West Bradenton ~ June 10, 2017

This was another solid week, compared to last year, in nearly every area followed. Bad weather must have sent people shopping, rather than beaching.

The “over a million” price point in downtown continues to grow. For the past 13 weeks, pendings with prices over a million dollars amounted to 20% of the total. Last year, they accounted for only 16% of all pendings. For the past 4 weeks, the top of the market listings has accounted for 27% of all pendings Downtown, compared with only 8% last year.

Next Quarter

If you have your home on the market or are thinking about putting it on the market, it’s always interesting to look ahead at what the next few weeks may bring.  The consensus is that the third quarter is slow, but that’s not the case everywhere.

 

The chart shows last year’s percentage of pending sales by quarter.  There is surprisingly little seasonality in any of the markets, other than Longboat Key.  Even the Longboat Key condo market is not horrible. Last year, 66 condos went to contract in the 3rd quarter, compared to 91 in the 2nd quarter. That works out to about 22 per month in the third quarter, compared to 30 per month in the second quarter.  Next quarter should provide plenty of opportunity for a well- priced listing to find a buyer.

 

May 2017 Market Snapshots for Downtown Sarasota, Longboat Key, Lakewood Ranch and West Bradenton

Downtown Sarasota Condominium Market

Downtown Sarasota Condominium Market Stats ~ May 2017

Downtown Sarasota Condominium Market Stats ~ May 2017

Sales are up about 15% year-to-date with inventory down about 7%. Still, using the average monthly sales so far this year, there are almost 8 months of inventory on hand which would generally be considered a buyer’s market.

It has taken longer to sell a condo downtown this year with the median marketing time coming in at 73 days compared to 53 during this period last year. While there are not stats available on the median age of an active listing this time last year, the 134 day median age this year seems old, especially compared to the 73 day median marketing time.

As I mention every time I discuss the Downtown market, the new construction market is disguising the strength of the downtown market. New construction projects are taking contracts and reservations on new condominiums that will not close (nor considered a sale) until later this year and into 2018 and 2019.

Longboat Key Single Condominium Market

Longboat Key Condominium Market Stats ~May 2017

Longboat Key Condominium Market Stats ~May 2017

During May, condo sales on Longboat surpassed last year for the first time this year.  On paper, sales for the year are still down 21%. However if you remove the 16 new construction sales last year (as most were contracted during 2015), sales on existing homes are down about 14% year-to-date.

The good sales month along with lower amounts of new listings, large numbers of withdrawn and expired listings coming off the market improved inventory dramatically over last month.  At the end of May the market had about 7.7 months of supply.

LONGBOAT SINGLE FAMILY HOME MARKET

Longboat Key Single Family Home Market Stats ~May 2017

Longboat Key Single Family Home Market Stats ~May 2017

While sales here are up 20% year-to-date and inventory down about 12%, there is still a large amount of unsold inventory for the current rate of sales. Additionally median days to contract has ballooned from 89 days last year to 128 this year. The median marketing time for an unsold listing is currently 183 days.

Lakewood Ranch Single Family Homes

Lakewood Ranch Single Family Home Market Stats ~May 2017

Lakewood Ranch Single Family Home Market Stats ~May 2017

The first neighborhoods in the new Waterside Village are now taking lot reservations. Waterside is going to be huge with over 5000 homes. The property is about 5,500 acres with 80% left as open areas or lakes (mostly lakes). It is going to be hugely popular.  Initial home builders will include Arthur Rutenberg, Lee Wetherington, Homes by Towne, and Pulte.

 

West Bradenton Single Family Homes

West Bradenton Single Family Home Market Stats ~May 2017

West Bradenton Single Family Home Market Stats ~May 2017

One big month and everything looks rosy. May this year beat last year by almost 50%. Year-to-date sales are up by 7%. Unsold inventory dropped to just 216 listings or only about a 4 months supply.

 

West Bradenton Condominiums

West Bradenton Condominium Market Stats ~May 2017

West Bradenton Condominium Market Stats ~May 2017

Sales here are down about 12% from last year but mostly do to the lack of inventory, which now represents just over a 3 month supply. The median selling price of 158k is still a great value for winter visitors or small families.

 

PENDING REPORT MAY 27, 2017

Pending sales ( new contracts executed) are the best indication of current demand. The pending report provides a current week, 4 week, and 13 week view of this important statistic across 6 different markets by price point range. The biggest difference between pendings and actual sales is timing. The contract or pending date is the date that the contract was executed. The contract is not considered a “Sale” until it closes which is, on average, about 30 days after the contract date. Of course, another difference is that not all pendings sales actually close.

This Week’s Results

Pendings were choppy across the both counties last week. Downtown Sarasota finally slowed, decreasing 1 contract or 10% compared to the same week last year. The past 4 weeks and 13 weeks are both up over 20%. One interesting trend over the past 13 weeks is that the higher the price, the larger increase in contracts over the past year.

Weekly Longboat condominium pendings doubled last year, pushing the last 4 weeks up by 1 contract. Over the last 13 weeks, however, new contracts are down 20%. Performance by price point is nearly the opposite of downtown –  with the exception of the $500k-$1million range, the higher the price point the fewer the  number of contracts signed compared to last year.

Lakewood Ranch was up 30% for the week and 8% for the month. Pendings over the past 13 weeks are down 24%. Note that not all new construction contracts show up in MLS and hardly any new construction, single family homes ever show up as pendings. As far as pendings in the single family home market are concerned,  MLS (and the Pending Report) essentially reflect only the resale market.

In areas outside of Lakewood Ranch, this isn’t such a big deal as new construction of single family homes is not significant compared to the resale market. But in Lakewood Ranch, new construction sales are larger than the resale market.  When big, new communities open for sales within Lakewood Ranch (ie like the new and huge Waterside section about to open), the resale market stalls as the new communite sucks up all of the business. Pendings will appear to plummet as the resale market loses out to the new community and contracts in the new community don’t get entered into MLS (as pendings anyway – many get entered as a sale at time of closing).

The West Bradenton single family and condominium markets both had a good 4 week run but condominium pendings are still down 24% over the past 13 weeks while single family home sales are up 8%.

 

Market Snapshots – Longboat Key, Downtown Sarasota, Lakewood Ranch, and West Bradenton

Downtown Sarasota Condominium Market

 

downtown sarasota condiminium sales

Median prices are expressed in thousands of dollars

Sales are up about 14% year-to-date with inventory only up about 4%. Still, using the average monthly sales so far this year, there are almost 9 months of inventory on hand which would generally be considered a buyer’s market.

It has taken longer to sell a condo downtown this year with the median marketing time coming in at 73 days compared to 47 during this period last year. While there are not stats available on the median age of an active listing this time last year, the 114 day median age this year seems old, especially compared to the 73 day median marketing time.

Longboat Key Single Condominium Market

Longboat Key Condominium Sales

Median prices are expressed in thousands of dollars

The sales slump continues with a 42% fall off this month compared to April 2016. However, sales last April included the closings on 16 new construction residences. Sales on existing homes fell 24%. Year-to-date, sales are off a third compared to last-year.

With only a slight drop in new listings, expired listings have tripled this year, although on small numbers. Ending April unsold inventory (Active listings) was up 26%.  Using the 26 average monthly sales over the past 4 months, there is almost a year’s supply of unsold condo inventory on the market, twice the 6 months of supply this time last year.

LONGBOAT SINGLE FAMILY HOME MARKET

Longboat Key Single Family Home Sales

Median prices are expressed in thousands of dollars

Completely unaffected by whatever bug has infected the condo market on Longboat, single family homes sales are on their way to a record high year. Sales are up a third over last year while the end-of-season active listing inventory is down 8%. However, the relationship between sales in unsold inventory is still high with just over 11 months of unsold inventory on the market.

Lakewood Ranch Single Family Homes

Lakewood Ranch Single Family Home Sales

Median prices are expressed in thousands of dollars

Sales are up about 7% over last year in Lakewood Ranch. MLS unsold listings are up about 5%. I say MLS here because new construction sales will likely he higher than resales and there is no way to evaluate the amount of new construction product on the market. When there is about a 100% chance that anyone and everyone that wants to build a home in Lakewood Ranch could be accommodated, how to count inventory?

One thing to watch, especially if you are or about to be selling a home in Lakewood Ranch in the near future, will be the effect of the new Waterside Village on sales, specifically the effect on resales and new construction in the other villages. Waterside has lots of water and has been receiving loads of hype. It is also the first LWR village in Sarasota County.

West Bradenton Single Family Homes

West Bradenton Single Family Home Sales

Median prices are expressed in thousands of dollars

Sales are down about 5% with unsold inventory down about 10%. This represents about 8 months of supply, a slight advantage to buyers.

The a $300k median sales price and large lot sizes that are just a couple of miles from the beach make west Bradenton a great value. The development of 75th street south of Cortez Road could give prices in the rest of the area a boost as little to none of the new construction will be priced below $300k.

West Bradenton Condominiums

West Bradenton Condominium Sales

Median prices are expressed in thousands of dollars

Low prices/great values make west Bradenton condos about some of the fastest moving properties in the area. While sales have fallen 10% from last year on about the same about of inventory, there is still only slightly more than a 4 month supply of unsold inventory. The median time on market is just 35 days.

Existing Home Sales Push Downtown Sarasota Condo Sales to 10 year New High

All data is from the My Florida Regional MLS for property type 
Condominium, ZIP code 34239 and for the time period indicated

First Quarter Downtown Sarasota Condo Sales

First quarter 2017 condo sales in downtown Sarasota of 110 where the highest since 2007 when 252 closed. The closing in 2007 included sales of 105 new construction residences that were completed during that month (and contracted for over the previous 12-24 months). Even without the new construction sales, however, 2007 was a barn burner with resales totaling 147. If only we knew that this would be the end for a while. The next 4 years sales in total would barely equal the 252 total in 2007. It would take about 2 and a half years just match the 147 resales.

Downtown Sarasota 1st Quarter Condo Sales Condo 2007-2017

Downtown Sarasota 1st Quarter Condo Sales Condo 2007-2017

Back to 2017, the 110 sales did include 8 new construction sales. However even 102 existing home sales would be the most total sales since 2007. When you consider all of the competition from new construction, this becomes even more amazing. Remember, when someone goes to contract on a new construction condo, the sale isn’t recorded until the unit closes. Closing doesn’t occur until the building is completed.

Downtown Sarasota Condo Sales by Price Range

The chart below shows the progression of sales by price over the past 10 years. 2008 was the first year of the crash and sales were the lowest of any year during the period by almost 50%. This probably distorted the figures some. However, over the past 5 years, about 9% of the total sales has been pushed out of the lowest bottom, “$0-$500k” range and into the top two price ranges.

Downtown Sarasota Condominium Invnetory

The next chart show that all categories have less inventory relative to sales than last year (Lower months of supply) with the exception of the $500k-$1M range, which increased slightly. We generally refer to markets with more than 6 months of supply as being buyers markets. In this case, the overall market is a just over 9 months of supply. Again, this is somewhat distorted because new construction is syphoning off sales – sales that wont show up until the buidling is completed months from now. Or anther way of saying this is that demand is greater than sales indicate.

Downtown Sarasota 1st Quarter 2017 Condo Sales

Downtown Sarasota 1st Quarter 2017 Condo Sales by price range

The final chart shows inventory and sales plotted on the same chart. There is a healthy relationship here with sales and inventory levels both moving up meaning that the market selling the higher levels of inventory. Furthermore there are huge chunks of pending sales waiting on the completion of buildings. If those sales had closed within say 60 days as most resales do, then the sales figures for the past 3 years would have been considerably higher. As it stands, a big chunk of those sales will likely close near the end of this year making 2017 one of the biggest years ever for condo closings in Sarasota.

Downtown Sarasota First Quarter Sales and Average Inventory 2008-2017

Downtown Sarasota First Quarter Sales and Average Inventory 2008-2017