What The Latest Trends in Florida Housing Mean for Sarasota Buyers
Bev Murray
Real Estate
You may have not have noticed but the latest trends in housing for the Sarasota area show the market is continuing to show signs of improvement for sellers as new listings are up 15% month-over-month! Although inventory still remains comparatively low, more people are placing their homes on the market, giving you more options in your home search. Home prices have risen 1.5%, but even with that growth, supply is still too low to meet demand keeping upward pressure on prices. Since supply is too low for the number of buyers, houses are selling fast and getting multiple offers. The time houses spend on the market is also reduced and homes are now selling an average of 8 faster days month-over-month. More buyers than available homes on the market are making each new listing a hot commodity. What this means for you as a home buyer is that although you have more options, you still need to move quickly and make a strong offer. Price your house right and it may still get multiple offers and stand out.
Florida Housing Market Update: More Listings but Still Competitive
The February 2024 Florida housing market update shows an increase in new listings and pending sales, indicating an active start to the year for residential real estate. According to the Florida Realtors, new listings rose 7.8% from January to February. However, inventory levels remain low compared to historic norms. The shortage of available properties continues to put upward pressure on home prices, which climbed 1.5% year over year.
Despite more options coming onto the market, buyers in Florida should anticipate competition and be prepared to act quickly on homes that meet their needs. On average, houses are selling in just 61 days, down 8 days from the previous month. The pace of sales combined with limited choices means each new listing becomes highly sought after. Nearly 7% of homes sold above the asking price last month.
For those looking to buy in the Sarasota area, the latest indicators show it remains very much a seller’s market. You may find more properties to consider, but you will still need to submit a compelling offer to beat out rival buyers and secure your desired home. The reality is there are more shoppers than houses for them, so sellers retain significant leverage in pricing and negotiations.
The takeaway is that while the local housing market continues its steady recovery from the pandemic downturn, lack of inventory prevents it from becoming truly balanced. More listings may emerge in the coming months, but for now, buyers need to go in with realistic expectations about competition and be willing to pay asking price or possibly above to land their dream home. The sooner you find a property you want, the better your chances of success.
Sarasota Home Prices Up 1.5% Month-Over-Month
According to the latest housing data, Sarasota home prices increased substantially in February 2024, up 1.5% from January. The median price for homes in Sarasota was $650,000, reflecting a year-over-year increase of 4.0%. Sarasota home values also rose 1.3% to an average of $451,986.
Low Inventory but More Options
While inventory remains constrained, the number of new listings increased last month, providing homebuyers with more options to consider in their search. However, the supply of homes is still insufficient to meet demand. The lack of available housing continues to put upward pressure on home prices.
Homes Selling Quickly
The shortage of supply relative to the number of interested buyers means that properties are selling rapidly. On average, homes spent 8 fewer days on the market in February compared to January. Well-priced, move-in ready homes often receive multiple offers, demonstrating the intensity of competition in today’s market.
What This Means for Homebuyers
If you are looking to purchase a home in Sarasota, you may have a few more listings to evaluate but will still need to act decisively. Come prepared to submit a strong offer, potentially above the asking price, to maximize your chances of success. While home prices are appreciating and the market remains competitive, homeownership in Sarasota continues to be an attractive investment for many. By understanding the current trends in the local housing market, you can make an informed decision about if now is the right time for you to buy.
Inventory Rising but Still Low - Good News for Sellers
While inventory levels in Sarasota are rising compared to previous months, the supply of homes remains scarce relative to demand. According to recent data, single-family homes in Florida currently have a 1.0-month supply, indicating strong competition and leverage for sellers. Although the number of properties on the market increased 25.9% in February 2022, buyers still face limited options and urgency to act quickly on new listings.
For prospective Sarasota homebuyers, the modest uptick in inventory provides more choices but does not fundamentally change the competitive dynamics of the market. Homes that are appropriately priced are likely to receive multiple, compelling offers within days of listing. The speed of transactions and strength of offers reflect the ongoing supply-demand imbalance, with eager buyers chasing too few properties to meet their needs.
Sellers can capitalize on these conditions by listing homes at a competitive but fair price. While values have appreciated over the past year, increasing inventory may start to slow the rate of price growth if it continues rising in coming months. However, with inventory at just 1-2 months for single-family homes and condos, properties are still scarce enough that sellers maintain a strong negotiating position. For buyers, the message is to remain patient but ready to act aggressively when the right home comes to market. Monitor listings closely, prepare financing in advance, and submit strong initial offers to maximize the chance of success.
Although inventory relief may be on the horizon, the Sarasota housing market remains tilted in favor of sellers. For the foreseeable future, limited supply and excess demand will continue producing a fast-paced, competitive environment for buyers. By understanding the dynamics at play and taking appropriate action, both buyers and sellers can achieve their real estate goals despite inventory and affordability constraints.
Homes Selling 8 Days Faster Than Last Month
Increased Inventory and Demand
The number of homes for sale in Florida increased 15% from January to February. Although inventory remains low, the increase signifies that more homeowners are putting their properties on the market. For homebuyers in Sarasota, the additional inventory provides more options to choose from during their search. However, the demand for housing continues to outpace the supply. Home prices rose 1.5% over the same period, demonstrating that the influx of new listings has not yet stabilized costs.
Move Quickly in a Competitive Market
The lack of available housing and abundance of interested buyers means that homes are attracting attention and selling rapidly. Properties in Florida sold an average of 8 days faster in February compared to January. Each new listing becomes a sought-after commodity, often receiving multiple offers. As a homebuyer, you will need to act decisively to have the best chance of securing a property. Come prepared to make a strong offer, potentially above the asking price. Work closely with your real estate agent to determine a competitive bid based on the current market and specific attributes of the home.
Price Homes Appropriately
For homeowners looking to sell, the market conditions are ideal to get the best price. Price the property competitively based on recent comparable sales. A properly priced home should attract interest from several potential buyers. Be prepared for the possibility of receiving multiple offers, which can drive the final selling price above what comparable properties have recently sold for. Homeowners who price too high risk having their home sit on the market longer and potentially selling for less than the original asking price.
The Sarasota housing market remains competitive for both buyers and sellers. Although additional inventory provides more options, homes continue to sell quickly and at rising prices due to high demand. Acting decisively as a buyer and pricing property appropriately as a seller are key to achieving the best outcome. With strategic planning and realistic expectations, you can navigate the current housing market successfully.
Contact Bev Murray at Murray Homes in Sarasota Florida for the latest info for New Home in the Sarasota area
To find your dream home in Sarasota's competitive housing market, contact Bev Murray and Murray Homes. With an extensive portfolio of beautiful new home designs and communities, Murray Homes has helped many buyers in Sarasota and can help you too.