There is clearly a lot of activity in our Sarasota real estate market. This additional demand has increased prices and reduced total inventory. However, don’t let the headlines lead you to think that we are running out of properties.
While inventory levels will take some time to rise — there are new properties that come to market daily for the following three reasons:
1 Multiple Property Syndrome
Sarasota has a lot of people with MPS (Multiple Property Syndrome). Symptoms include owning three or more properties. Some owners have just a local collection, while others have a local collection and others in different parts of the US and in many cases other countries.
Historically, life stages have driven these choices, such as building a family, getting a vacation home, becoming an empty nester, retirement, etc. Yet as new paradigms for living, working, and retiring emerge buyers and sellers are rethinking what they want and where they want it.
For many with MPS after several years of acquisitions, the past 12 months has given pause to building collections and refocused energies of simplifying. One way to free up time and make life a bit easier is to have less real estate. This will bring more inventory.
2 The Transition to “Brand New”
Another phenomenon has been occurring in Sarasota heavily in the last 3-5 years. I often speak about the transition to “Brand New”, which has been a compelling impetus to change.
In their October 2020 development report, the City of Sarasota reported that there are
- 980 residential units in development
- 1231 units under construction and
- 163 units completed
in the last 12 months.
So literally “new” or pre-construction condo options have recently arrived in Sarasota and many more are on the way. The city report does not account for development projects in Sarasota County or in-fill redevelopment on a lot by lot basis, i.e., when a functionally obsolete house is torn down to build a new one.
It takes time to transition from current to new so there is a lag effect of when the “old” comes on the market but this too adds to our inventory.
3 “Aged Out” Properties
In our area, in particular, families started vacationing and owning here in the 50s and 60s. Two generations later there are other destinations and for some Sarasota no longer meets their needs (crazy). These underutilized properties, which have been passed on or could be passed on, add a substantial piece to our market. A segment of this group is called “aged-out.”
It is easy to understand, especially on a great winter weather day and with newer work and communication paradigms emerging, the very inexpensive cost of money, and the increase of net worth, why the demand is strong.
If you understand our market dynamics and more importantly what and why you are buying — jump in, the water is great. However, don’t just buy because of your FOMO because tomorrow, next week, and next month more options will become available.
Ready to sell, buy or engage in MPS therapy please give me a call @ 941.587.0740.