The definition of a Seller’s market in real estate is when there is less than 6 months of inventory available to be purchased. Based on the laws of supply and demand, a lower supply and higher demand would cause prices to rise.
This is definitely not the case in our local Sarasota luxury market (properties listed at 1M and above) at this time. In fact, this market is a Buyer’s market. There is at least 15 months of inventory available.
However, there is good news for the Seller. Higher inventories do not mean that it is a “name your price” marketplace.
Sarasota’s Many Lifestyle Choices Narrow the Options
There are currently a healthy number of luxury properties for sale, but as Buyers hone in on what is really important those options dwindle.
For example, if it is important to live near the beach, to be within walking distance of shops and restaurants, or to have a boat in the backyard, the number of choices drops dramatically.
Downtown Luxury Condo Construction Going Bonkers!
This is where my concern lies for current sellers and those who are contemplating a sale. A lot of new condominiums are coming to market, and while some are being sold to new residents, there are a number of people choosing to simplify by selling their local single family home and move into a new, spacious, condo downtown. I predict many are going to put their existing properties on the market soon as they get ready to migrate.
Based on my estimates there will be an additional 200-300 luxury-priced condominiums coming to downtown Sarasota in the next 6-24 months. If all of these owners were to move from one luxury property to another, it would add 5-7 months of inventory to the already imbalanced market against the Seller.
Get Off of the Fence and Sell Now
Again, if you own a luxury property and are planning to make a change, I would encourage you to do it sooner rather than later.
It is not enough to just list a property for sale in the MLS, the real estate market in Sarasota is now global. It operates 24 hours a day and transcends languages and cultures. Last week we had an internet chat session through our website initiated from Colombia. Within five days the prospect was on a plane and preparing to buy a luxury property here in Florida.
Read more about five key real estate strategies that you as a savvy seller must take to heart.
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The World is Moving to Story-Telling through Video
The goal in marketing high-end luxury properties (3M and above) is to be able to articulate to the next buyer what makes the property special? What lifestyle experience does it afford? What’s the unique story?
Our real estate agency here in Sarasota is blazing the trail in digital and video marketing. One of our key differentiators is our ability to produce full-motion, narrated property trailers that attract potential Buyers – no matter where they sit in the world – to your property.
View our latest “Blockbuster” feature of the St Armand’s Lifestyle:
Call us if we can help you with any of your real estate needs at 941.587.0740.
