Today I’m standing at a horse jump course as I feel it is an apt visual for buyers and sellers in our Sarasota real estate market. It is critical to determine your personal threshold for how high you want to go when buying or selling your property here in Sarasota.
The financial markets are very turbulent, the world is turbulent, and each month I work very hard to provide the statistics, anecdotes, and data to help all of us understand both Sarasota and her real estate market. Two of the most interesting data points that I’ve seen over the last couple of days that I feel are highly relevant to our long term forecast:
- $35 to $60 TRILLION dollars is going to pass intergenerationally. A lot of that money needs to be invested, and Sarasota is right for that lifestyle real estate investment, which I think is going to be positive for our market.
- Two non-stop flights have recently been added to our SRQ Airport. One is Austin, Texas which is a tremendous innovative tech community. This route is going to bring people from inland Texas to our beaches. The second is Denver, Colorado. There’s now a non-stop from the beaches of Siesta Key and Longboat Key to the mountains of Colorado for those who love to play in both!
Q2 Sarasota Sales Numbers: Luxury Segment Leaps Ahead
The second quarter of 2021 (April, May, and June) has been very interesting as we typically compare it to a year earlier. It’s really not very fair to compare it to a year ago because sales were way down then due to the global shutdown. In fact, they were at the lowest point since 2011. But it does give you a sense of the about-face we experienced as people evaluated their priorities and thus their real estate needs.
Overall sales were up 75%, but what’s more interesting to me is that the luxury market (those properties that are selling for $1M or more) – was up 260%!! This is now 10% of the total market in Sarasota. Just a couple of years ago it was just 3%. The average sale in the luxury market is now about $2.27 million – up 20% from the same period a year ago.
While new inventory is constantly being added to the market, we’re also seeing that the buyer demand is actually still increasing. Anecdotally, we’ve received calls even just this week from new buyers entering the market. More and more buyers want to be here as they are following their friends and family. This is actually quite normal- most especially in these turbulent times. People want to be close to the people that they know, like, and love.
All of these factors are going to contribute to increased demand in Sarasota. This is going to raise prices and is also going to put demands on making sure that Sarasota’s government and institutions deliver a better quality of life here- which is good for all of us.
For more information or to chart your personal course, feel free to give me a call @ 941.587.0740.