The information in this post pertains to Downtown Sarasota Condominium sales for the 12 months ending 9/30/16 (current year/ period) and 9/30/15 (previous year/period). All data is from the My Florida Regional MLS for the time periods mentioned, ZIP code 34228 (Downtown Sarasota), and condo property style.
Demand for Downtown Sarasota Condos is increasing
The raw numbers show sales over the past year were down 1%, compared to the previous year (329 TY vs 332 LY). As mentioned in other updates, delayed closings on new construction sales more than account for this shortfall. As of 9/30/16, there were 36 pending sales on new construction residences, where the contract date was in the current year.
While these properties were placed under contract during the current period, they will not close nor be reported as a sale until the building is ready for occupancy. The contracts, however, represent true demand during the period, even though they are not reflected in the sales figures. There are also 28 pending sales from the prior period, which understated demand during that year. If pending sales were added into total sales for both years, then 2016 sales would be higher than 2015 by 1% (365 TY vs 360 LY).
Click box to see current Downtown Sarasota Condominiums listed for sale by price point
Under $500k $500k-$1,000k $1,000k-$2,000k over $2,000k
The Median Sale Price of a Downtown Sarasota Condo is increasing
The median sale price of a downtown Sarasota condominium increased 14% from $442k last year to $505k this year. Across Sarasota County, the median price of a condo only increased 8% from $190k ly to $205k ty. Clearly, “buy low / sell high” works but not as well as “buy high/ sell higher.”
If nothing else, this shows not every property gets painted with the same brush as prices move up or down. Properties in the most desirable areas do better in both types of markets. When prices are appreciating, markets like downtown and the barrier islands will increase more than other areas. When prices are falling, they will take less of a hit.
Click to Download Recent Downtown Sarasota Condominium Sales Addresses/Prices
Downtown Sarasota Condos are Selling More Quickly
Another sign the market is heating up is the speed at which listings sell. Last year, 33% of all sales went to contract in 30 days or less. This year, 42% of all sales took 30 days or less to get a contract. Median days to contract for all sold listings dropped accordingly from 66 days last year to just 51 days this year (down 23%).
The Average Listing Sells Very Near the List Price
Last year, the average downtown condo sold for 95% of final listing price, which is great. However, in the prior 12 months, that figure has bounced up another point to 96%, which is phenomenal.
Most Downtown Sarasota Condos sell for Cash
Two thirds of all sales in both periods sold for cash (no financing). This is another attribute of the downtown market that supports property values. When the market crashes or interest rates rise, the owners in the downtown market will feel less pressure than those areas where more homes are mortgaged.