On November 14, I brought several key professionals to share their first-hand experiences on what is happening in our Sarasota real estate market. There were a lot of great nuggets from that collaborative discussion. We have attached the highlights in the written portion of this newsletter.
BREAKING: Rosewood Residences Lido Key Now Taking Reservations
The Rosewood Residences at Lido Beach is just starting to go to reservations this week. This is very, very exciting news. If you or anyone you know is interested in this project, we now have the floor plans, range pricing, the reservation agreement, and an escrow agreement in hand.
You can’t put our Real Estate Market in just ONE bucket
Everyone wants to figure out this real estate market. There are lots of things that are going on and Sarasota’s real estate market does not just fit into one bucket that’s one-size-fits-all. There are so many dynamics to each scenario, location, and product. The big takeaway that I have is “to have success you need skilled representation.”
First let me give you three anecdotes to illustrate how wildly different any given situation can be in this market:
- We listed a property last week on a Friday. By Monday we had 14 showings. In addition, we held an open house on that Saturday with over 30 people. We had multiple offers on this property GREATER than the listing price, and even after we went to contract potential buyers still wanted their offers presented.
- On the flip side, we are currently working with one of our ultra-luxury buyers on a negotiation. (Ultra-Luxury properties are those that are listed for $3MM or more). In this situation, the property could sell for at least 10% LESS than the listing price.
- Some properties are going to contract without coming to the open market first. I strongly feel this is a disadvantage to the seller because the “Market”- Active Buyers have not had the opportunity to offer their opinion of value. In this case, the buyer’s agent and the seller’s agent got together and the property sold. It then came back on the market 2 weeks later for a price that was about 33% higher – just under million dollars more. It is now being sold another time. That is a lot of money for a seller to leave on the table.
This can be a wild and confusing market. These examples illustrate how- just like you want to choose the best lawyer to represent you on important issues- you really need to have the most intelligent and experienced Real Estate Broker representation to protect your real estate interests.
SARASOTA LUXURY REAL ESTATE REPORT
The Forces Driving Sarasota’s Real Estate Future
On Nov 14th I facilitated a panel discussion to unpack the question: Is the real estate market about to go off a cliff, or are we approaching price parity with some other areas in Florida such as Palm Beach and Naples? Here are the key takeaways:
- Wealth Creation Outpaced Real Estate Price Growth. The median price on Longboat Key rose 33.86% from January 2018 to Oct 2021 relative to a 44.7% increase in the stock market over the same period. Our buyers’ wealth has grown at an exponentially higher rate than median prices. Those invested in certain individual stocks experienced exponentially higher gains. The buyer profile for our area has seen their financial position strengthen substantially, so they have much more money to invest in real estate.
- Florida Residences Have Game Changing Financial Benefits. Elizabeth Diaz, estate planning attorney for Williams Parker, stated “From my vantage point there is a mass exodus from other states. I am getting calls daily from new owners and potential buyers. As they learn all the tax & financial benefits and realize their overall costs can be reduced by establishing residency here, they can have their cake and eat it too.” Florida has no estate tax, income tax, gift tax and an easy probate system.
- Life is Short. Buyers Don’t Want to Wait to Live Their Dreams. The Post Covid buyer no longer wants to wait to purchase the house and location of their dreams. They are making more rapid decisions, and the ability to work remotely has accelerated their plans.
- Direct flights to Sarasota Quadruple. There is an expanded buyer pool because of the airport expansion. Three years ago there were 12 non-stop flights. Now there are 52 nonstops.
- Buyers are not Deterred by Rising Cost of Insurance. “While Insurance rates continue to rise and there is a tightening of underwriting guidelines, this cost has not yet impacted buyers’ decisions,” said Jeff DeJongh of Purmort & Martin. While they may be surprised at the premiums, buyers are still purchasing as the other tax, financial and lifestyle benefits are outweighing this cost factor.
- Demand in the Ultra-Luxury Market is Strong. Inquiries into the new ultra-luxury Rosewood Residences on Lido Beach surpassed 600 in just the first few days. These are all cash buyers that want the experience and enriched level of services and amenities that brands such as The Rosewood offer.
Sarasota Median Prices Still Below Comparable Florida Cities
The demand for Sarasota real estate is unrelenting and the median sales prices is still lower comparable communities in Florida. Our clients are knowingly and willingly paying higher prices. If there were to be a market softening it would be because of an increase in sellers. However, there are very few reasons to give up all that Sarasota has to offer.
We are committed to providing you with an extraordinary and unique level of servicing as you navigate your real estate decisions and transitions.