August is the last month of summer here in the northern hemisphere. But summer in Sarasota has changed a lot. It’s no longer your parents’ your grandparents’ Sarasota. As we’ve been out and about we’ve seen bustling restaurants and sold-out theater.
Today I want to share my views on both the short term and long term view of the Sarasota real estate market. The reason that I want to do this is that sometimes we’re a little too short-sighted in our outlook. I feel that the Sarasota real estate market is very strong whether we’re taking a shorter view or a longer view and I’m going share why.
Beachplace Condos: The Price Paradox
There’s a certain bifurcation (a fancy word meaning a division into two directions) occurring in our market right now. Let’s use Beachplace- a condominium on Longboat Key- as an example.
Today’s consumer is looking for either value or opportunity. For value they want location, setting, and condition. They seek the best locations for their preferred lifestyle experience- such as being walkable to the amenities they like. They seek the best settings- i.e., open water views as opposed to a closed-in canal. They prefer something that’s brand new or incredibly renovated, as opposed to something that hasn’t been touched since the 1950s or the 1970s.
At Beachplace – which is 11 buildings, 336 units, and over 1,200 linear feet of gulf frontage- you have both things occurring in the same complex. Those units that have a terrific full gulf front view and are really updated are selling for a premium. To illustrate this point, there is one unit that was purchased, gutted, renovated, and completely furnished with full Gulf views. It was made HGTV worthy. This unit sold in 10 days, and it resold for even more money a year later after being on the market 1 day. On the flip side, properties that don’t have much view and/or are still in their original condition are selling at a discounted price. There are units there that are selling for lower prices then they had sold for 2-3 years ago.
Job and Population Growth Driving Sarasota’s Long Term Health
Now let’s look at the longer perspective on the Sarasota Real Estate market – by this I mean from now until 2030. McKinsey Global Institute just published a report that is a great validator to what I have been sharing about Sarasota’s long-term health. They wrote about job growth and they predict Sarasota to have 10-15% job growth between now and 2030. This is important because economic growth and real estate growth are fueled by two things: population growth and job opportunity.
As I have shared in previous newsletters, it is well documented that Florida in general and Sarasota, in particular, will be experiencing strong population growth.
Sarasota is a niche market. It is classified as a Silver City because of all the retirees that come here and make it their home. The largest job opportunities for Sarasota lie in four sectors: healthcare, STEM, the creative arts, and business services.
As our community supports these four sectors and provides job training for jobs of the future we will continue to have economic stability. In addition, as we improve our amenities (whether it’s green spaces or infrastructure) and help people get better educated through our consortium of five local schools, our community is poised for great growth well into the next decade.
Looking at Sarasota wholistically – both the short term and long term view- I’m very excited about the future of Sarasota and her real estate market.
Have a terrific end of your summer!!