Let’s talk about what’s been going on here in Sarasota’s real estate market during the first quarter of 2023. Before we get into that, I want to let you know that we’ve reset the parameters for how we classify our market segments:
- Affordable properties are listed for $350,000 or less.
- Mid-segment is from $350,000 to $750,000.
- Luxury has been moved up to those properties for $1.5M and more.
Now let’s hit on the benchmarks we use to measure the market performance:
- Sales in this first quarter of 2023 are down 19% from the same period a year ago.
- The affordable segment continues to shrink even though I’ve moved the bar up. Currently, the mid-market segment represents about 50% of our market. An increase or decrease in this segment will be a great indicator of whether our area is going up or down in price.
- All told, 80% of sales here in Sarasota are for properties listed for $750,000 and less.
- The luxury real estate market, which is now $1,500,000.00 and more, is about 4.5% of our total market. It also shrank by about 4.5% from the same period a year ago.
What’s Happening in Specific Neighborhoods?
In Bird Key, we’re seeing an increase in inventory. This may give somebody one or two more choices, but at the same time, a couple of high-ticket properties just went pending. One that was listed at $9.95M and another at $12M. Both went under contract in less than 30 days.
Lido Beach has very little inventory and not much new inventory seems to be on the horizon. People are really enjoying that lifestyle. And a lack of new inventory is indicative that people are staying and not selling even with the appreciation during the past few years.
Marina Bay, a condominium community on Longboat Key has nothing for sale, therefore it was a reality to have multiple buyer situations such as we experienced during the first quarter of our listing there.
Post Pandemic Sellers
I’ve also watched a different type of seller. We’re seeing some of what I call post-pandemic sellers in the market right now. In the upper tier of the ultra-luxury segment, 40% of the sales are for properties that have been owned for three years or less. I don’t know if this is a trend that’s going to continue or just something that’s happened in the first quarter, but we’ll keep our eyes on it. It also reinforces our commitment to working with buyers to find the match trifecta, “location, setting, home.”
The economy and the media are giving us all sorts of mixed messages and signals, some of it causing frustration and some reason for great optimism. Don’t concern yourself with what your neighbors, your friends, or your loved ones are doing. Focus on yourself.
I think that the best course is to chart your own.
If you’re looking for an ethical, honest, and transparent real estate experience, please give me a call @ 941.587.0740.