Enormous Buyer Demand Continues into Fall for the Sarasota-Manatee Housing Market

by

SARASOTA, Fla. (September 22, 2021) – Housing prices continue to rise in the Sarasota and Manatee market with August 2021 marking the 15th consecutive month of year-over-year price increases for single- family homes. According to data from Florida REALTORS® and compiled by the REALTOR® Association of Sarasota and Manatee (RASM), August reports fewer closed sales, while an increase in cash sales coupled with low supply indicates high demand and competition among buyers.

In August 2021, the combined closed sales of all property types in both counties decreased year-over-year by 7.5 percent to a total of 2,125 sales. August tends to be a slower month for home sales in the region, and while sales are down from the pandemic induced ‘frenzy’ in late 2020, closed sales for August 2021 improved by 8.4 percent when compared to August 2019.

For single-family homes, closed sales decreased year-over-year by 6 percent to 815 sales in Sarasota County and by 2.7 percent to 694 sales in Manatee. Condo sales decreased by 15.6 percent to 341 sales in Sarasota and decreased by 12.1 percent to 275 sales in Manatee.

“We’re just a few months out from our high season, and right now we have about half the number of available homes than we did this time last year. There is still enormous buyer demand—expect competition, and therefore prices, to continue to rise,” said 2021 RASM President Alex Krumm, Broker Owner of NextHome Excellence. “Inventory almost always creeps up in the late summer and this year is no exception. It will be interesting to see what happens as we enter season with one-third of the available homes we had last year.”

Single-family prices have increased year-over-year each month since June 2020 and continue to rise in August. In Manatee County, the median price for single-family homes was $430,000, a 19.4 percent increase from last year. The single-family home price in Sarasota was $390,093 in August, an increase of 18.2 percent. In the condo market, Sarasota condos reported a 26.3 percent increase to a median price of $315,000, and Manatee reported a 23.3 percent increase to $275,000.

Newly listed homes, combined between the two counties, grew year-over-year by 2.3 percent for single- family homes and decreased by 16.3 percent for condos. As for new pending sales, the combined data in August showed a 16.4 percent decrease for single-family homes and a 24.4 percent decrease for condos.

“High competition for the limited number of available homes is tempting buyers to make sacrifices in price or condition in order to purchase. Buyers should be patient in finding their home, aggressive when offering for a home, and above all, make sure that their offers allow them the opportunity to do their due diligence,” added Krumm.

August 2021 reported more cash sales than the same month last year. In the North Port-Sarasota- Bradenton MSA, cash sales increased by 46.4 percent for single-family homes and by 12.7 percent for condos.

The inventory of all property types in the two counties decreased by 61.9 percent to 1,836 active listings at the end of August. The month’s supply of inventory for single-family homes is 0.8 months in both counties, a 63.6 percent decrease in Sarasota and a 61.9 percent decrease in Manatee. Condo inventory decreased by 83.8 percent to a 0.6-month supply in Sarasota and dropped by 78.8 percent to 0.7 months in Manatee County.

The median time from listing date to contract date is hovering around one week in the two counties. For single-family homes, combined for both counties, the median time to contract was 5 days in August, an 83.3 percent decrease from the same time last year. For condos in the North Port-Sarasota-Bradenton MSA, the median time to contract decreased by 85.1 percent to 7 days.

Monthly reports are provided by Florida Realtors® with data compiled from Stellar MLS. For comprehensive statistics dating back to 2005, visit Myrasm.com/statistics

BRENT LEATHWOOD, MBA

LICENSED REAL ESTATE BROKER | BK 3300751

CROSS BORDER REALTY LLC | CQ1046895
2100 CONSTITUTION BLVD. #207
SARASOTA, FL, 34231
(941) 882-2995
Contact
3 Big Mistakes Buyers make:

  1. 1. NOT KNOWING THE NEIGHBORHOOD...ContinuedReal estate always has been and always will be a local business. Know your neighborhood is a cardinal rule in this business. A real estate professional knows what is going on in their local market area. Hire a knowledge, local professional. When we see folks wandering around with a notebook and a list of questions, we know they are the most likely to make a costly mistake. A PROFESSIONAL Realtor, (please note the word professional), can spend 15 minutes listening to your needs and wants, and probably rule out 90% of the local market options, and focus your attention, on the 3 or 4 or 5 communities that will meet your needs, and make sense from both a financial and lifestyle point of view. I am amazed at how many people from out of State, go it alone, end up buying in the wrong community, and come to regret it. I meet people like this everyday, and everyone single one of them will say to me: “I wish we had met you first.”
  2. 2. GETTING STUCK IN AN HOA NIGHTMARE...ContinuedHome owners association nightmares are the stuff of legend in our State. Do not buy the wrong property in the wrong community. A knowledgeable real estate professional can explain to you upfront, the ins and outs of the HOA regulations of the community you are considering, and help you avoid 99% of these potential pitfalls. This is another very costly mistake.
  3. 3. THINKING YOU DO NOT NEED A REALTOR WHEN BUYING A NEW HOME...ContinuedEverybody knows you need a Realtor to represent you, when buying a resale home. Many do not know, you also need a Realtor to represent you, when buying a new home. The new home sales person in the model home works for the Builder, not the Buyer. They are paid to look out for their employer’s interests, not yours. You will not save $1 by going it alone. You will lose money. A lot of money. One of our largest local builders reported 872 annual sales, of which, 762 were handled by Realtors representing the Buyer. That is 87% of the total. The Builder has already factored paying a finder’s fee into the price. The Builder will not rebate $1 of this money back to you. Builders laugh under their breath, when Buyers try this negotiating tactic, even though they will politely agree with you. Professional representation costs you $0, why would you fend for yourself, in a market you know almost nothing about? Buyers know less than 20% of what they actually need to know, to get a great deal. Having gone through the new home buying process hundreds of times with clients, we know all the pitfalls to avoid, and how to make the process go smoothly. Do not go it alone, get professional representation, it costs you $0. Not doing this is the most costly of the 3 mistakes. But everyone has heard the old saying, you can lead a horse to water. We are in the business of helping our customers solve a problem. Our ability to do that, is the sole reason we have a thriving business. We are here to help you through the entire process, and get a great deal.

4 Big Mistakes Investors make:
  1. INCOME... ContinuedThe rental income does not justify the $/sq. ft. purchase price.
  2. EXPENSES... Continued The monthly expenses are too high, relative to the property type and rental income produced.
  3. CAP RATE... Continued The capitalization rate is too low to justify the investment.
  4. HOA REGS... Continued The home owners association regulations are too restrictive, or do not permit the intended use. Frequently overlooked or glossed over by some sales people, the long run financial consequences are catastrophic if a mismatch occurs.
Avoid Costly $$$ Mistakes: Hire Brent. Costs you $0.