Today I’m standing on the Lido Beach side of Big Pass- that incredible body of water that comes from the Gulf of Mexico and feeds Sarasota Bay. The heron behind me has been uber focused on the favorable fishing conditions today.
Sarasota is alive and vibrant this time of year, and here at the beach is no exception. We’re seeing people returning to their favorite venues around town. They’re out laughing, eating, and reconnecting with old friends and making new ones.
This activity has also triggered tremendous growth in our real estate market. Fortunately, there are many property owners who have chosen to become Sellers because they no longer need, want, or use some of their properties here in Sarasota. This has contributed to a record first quarter.
Here are the quarterly highlights:
- Q1 SALES AND MEDIAN PRICE UP. Unfortunately, there are still more buyers than sellers resulting in a dearth of good inventory. This has caused our median price here in Sarasota to go to about $335,000 during the first quarter of 2021. In fact, sales are up 38% from the first quarter of 2020 to the first quarter of 2021, which is a ginormous leap.
- AFFORDABLE MARKET SIZE SHRINKS. Our affordability segment, which are those properties listed for under $200,000, has decreased as properties have gotten more expensive; this is down by 30%. During the first quarter of 2020 about 1 in 4 properties fell within the affordable segment, now it’s about 1 in 6.
- DISTRESSED SALES WAY DOWN. The distressed segment is pretty negligible at this point. Part of that is attributable to a lot more equity in people’s properties. They don’t need to have a short sale or go to foreclosure in today’s market, they can sell and have some money left over.
- LUXURY MARKET GOING BONKERS. Our luxury market ($1M and more) is up 119% from the same period a year ago. We’re seeing tremendous growth in the luxury segment.
Market and Buyer Profiles Signal Stable Real Estate Market Going Forward
Sarasota has become a lot more established, mature, and affluent since the last demand surge at the early part of this century. As a result, 22% of the properties that are being sold in this quarter didn’t even exist prior to 2008. Sales and prices are increasing, however, today’s buyer is financially very secure. Many, if not most, are paying cash and they are factoring in future economic changes in their decision process before investing in our community. Even those buyers that are financing have very strong personal balance sheets. I feel really good about today’s buyers in our marketplace and the stability of our residential real estate market.
I think the demand for Sarasota is going to last for quite some time and for those people that want to enjoy our incredible lifestyle there’s never been a better time to jump in.
Sellers Alert: Once in a Decade Opportunity
We are in an active Seller’s market and now may be a once in a decade opportunity. If you are a potential seller, I encourage you to call me to discuss your plans and learn how we will get you positioned to maximize your returns at this opportune time (941.587.0740).