I want to share some of the messages that we’ve been receiving here in our local real estate market as we embark on our summer buying season.
Here are the top-level points we feel it important our clients know:
- Some Buyers are being outbid on properties. We have buyers who have held back on offers thinking that with time sellers may soften their pricing, however in at least two cases another offer came in higher than they were either prepared or thought necessary to pay.
- Sellers are receiving multiple offers. One of the most recent examples was a listing that was on its 58th day on the market and multiple buyers presented offers in same weekend.
- Median prices are up from the same time a year ago. For May 2023, they may be slightly lower than 2022, but it’s still too early to know.
The Inventory Paradox
Our real estate inventory is greater than it was a year ago. However, it is important to put this into context. It may or may not be true for any specific property or location. I took a look at some downtown condominiums each with their own distinct architectures, lifestyles, and amenities. In Sarabande there is nothing for sale. Tessera, nothing for sale. Marina Tower, just one residence. However, just down the street at The Mark there are six residences for sale. At Bay Plaza, there are eight residences for sale. And 1350 Main St has nine residences for sale.
Crossing the bridge to the Lido Beach, the Beach Residences managed by the Ritz-Carlton has one unit on the market. Same holds true for Orchid Beach Resort. And finally, L’Elegance has nothing for sale.
So, what does this tell us? It tells us that sellers need to be patient for the right buyer and buyers need to know that there’s competition in the market.
New Construction Update
The new construction segment is active as can be witnessed by the multiple construction sites under way. This space is unique as some buildings are sold out, some are taking contracts, others are still in the reservation phase. Occasionally sold-out projects have residences that come back to market since much can happen over the course of years that new owners have to wait. Case in point is one residence at the St. Regis that recently returned to the market, though at a much higher price than when it previously sold.
Next up for completion in downtown Sarasota will be Kolter Urban’s 149 residence project @ Quay Sarasota named BAYSO. The new owners will be taking occupancy beginning in the 3rd quarter of this year (2023). Most other new construction is still 18-24 months out. For those in the per-construction phase you can calculate taking occupancy about 24 months from ground-breaking.
When you are navigating buying or selling real estate assets it is critical to have a professional to help you through the process so that you are well-informed and protected.
No matter where you may be in the process, I welcome you to call 941.587.0740 for advice whenever you need.