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

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