The housing market in Sarasota is a topic of interest for many prospective homebuyers and real estate enthusiasts. Understanding the current state of the market can help individuals make informed decisions when it comes to buying or selling properties. In this blog post, we will explore the key aspects of the housing market in Sarasota, including median sale prices, average days on the market, competitiveness, migration trends, and environmental risks. Let's dive in and discover what the housing market in Sarasota looks like today.
Current Sarasota Housing Market Update
According to data by Redfin, as of October 2023, the Sarasota housing market has experienced a 2.0% decrease in home prices compared to the previous year, with the median sale price standing at $493,000. Homes in Sarasota now spend an average of 32 days on the market, a notable increase from 23 days the previous year. The competitive nature of the market is reflected in the Redfin Compete Score™, indicating that Sarasota is somewhat competitive, with some homes receiving multiple offers.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Sarasota is 96.7%, emphasizing the negotiation dynamics between buyers and sellers. Understanding these ratios provides valuable insights for both parties involved in real estate transactions, as Sarasota's market shows a variance from 80.0% in 2021 to the current 96.7% in 2023.
Sarasota Migration & Relocation Trends
Sarasota's appeal extends beyond its housing market, with 1% of homebuyers searching to move into Sarasota from outside metros. New York leads the list of metros contributing to Sarasota's inbound migration, followed by Chicago and Boston. On the outbound front, Asheville, NC, is the most popular destination for Sarasota residents leaving the area.
Factors Driving the Market
A number of factors are driving the Sarasota housing market, including:
- Strong demand: Sarasota is a popular destination for retirees and second homeowners, and demand for housing remains strong.
- Limited supply: The supply of homes for sale in Sarasota is limited, which is helping to keep prices high.
- Rising interest rates: Rising interest rates are making it more expensive to borrow money to buy a home, which could cool the market somewhat in the coming months.
The Sarasota housing market is expected to remain competitive in 2023, with median home prices continuing to rise. However, the pace of growth is expected to slow from previous years.
Sarasota Housing Market Forecast for 2023 & 2024: What to Expect
According to Zillow, the average home value in Sarasota stands at $462,176, reflecting a modest increase of 0.4% over the past year. As of October 31, 2023, homes in Sarasota are spending an average of 22 days on the market before going pending.
Key Metrics and Statistics
- For Sale Inventory: As of October 31, 2023, Sarasota has 1424 homes listed for sale.
- New Listings: In the same period, 461 new listings have entered the market.
- Median Sale to List Ratio: The ratio as of September 30, 2023, stands at 0.973.
- Median Sale Price: The median sale price for homes in Sarasota, recorded on September 30, 2023, is $462,190.
- Median List Price: As of October 31, 2023, the median list price is $541,667.
- Percent of Sales Over List Price: 11.1% of sales, as of September 30, 2023, were over the list price.
- Percent of Sales Under List Price: Conversely, 74.6% of sales during the same period were under the list price.
Insights and Analysis
Zillow's data suggests a stable yet dynamic real estate market in Sarasota. The moderate increase in average home value indicates a balanced demand and supply scenario. The quick turnaround with an average of 22 days on the market signifies a market where properties are swiftly garnering interest.
The median sale price and list price provide valuable benchmarks for both buyers and sellers, offering insights into the prevailing market trends. The median sale to list ratio of 0.973 indicates a market where homes are generally selling close to their listed prices.
Notably, the percentages of sales over and under the list price shed light on the negotiation dynamics in Sarasota. With 11.1% of sales surpassing the list price and 74.6% occurring below it, buyers and sellers alike should be mindful of these trends when engaging in real estate transactions.
Are Home Prices Dropping?
As of the latest data available through October 31, 2023, the Sarasota housing market shows a modest increase in the average home value—up 0.4% over the past year. This suggests that, currently, home prices in Sarasota are not experiencing a significant drop. However, real estate markets are dynamic, and conditions may vary, so it's essential to stay informed about the latest trends and updates.
Is it a Buyer's or Seller's Housing Market?
The current dynamics of the Sarasota housing market indicate a nuanced situation. With an average home value increase and a median list price of $541,667 as of October 31, 2023, it suggests a market that may lean towards sellers. However, the percentages of sales over and under the list price—11.1% over and 74.6% under as of September 30, 2023—indicate elements of negotiation. Buyers and sellers should consider these factors when assessing whether it's more favorable for buyers or sellers.
Will Sarasota Housing Market Crash?
While predicting the future of a housing market with absolute certainty is challenging, the current data does not suggest an imminent market crash in Sarasota. The moderate increase in average home value, coupled with reasonable median sale to list ratio and market activity, indicates a level of stability. However, economic and external factors can influence real estate, so ongoing monitoring of market trends is advisable.
North Port-Sarasota-Bradenton MSA Forecast
Sarasota is situated within the larger North Port-Sarasota-Bradenton Metropolitan Statistical Area (MSA). The housing market forecast for this region provides further insights into the future performance of the Sarasota housing market.
In the broader North Port-Sarasota-Bradenton area, the average home value stands at $458,587, reflecting a 1.4% decrease over the past year. Homes in this MSA are taking an average of 25 days to go pending, indicating a moderate pace of market activity.
One-Year Market Forecast
Zillow's forecast for the North Port-Sarasota-Bradenton MSA projects a 0.9% increase in home values over the next year, providing insights into the anticipated direction of the real estate market as of October 31, 2023.
Key Metrics and Predictions
- For Sale Inventory: As of October 31, 2023, the MSA has 5877 homes listed for sale.
- New Listings: In the same period, 1726 new listings have entered the market.
- Median Sale to List Ratio: The ratio as of September 30, 2023, stands at 0.974.
- Median Sale Price: The median sale price for homes in the MSA, recorded on September 30, 2023, is $439,833.
- Median List Price: As of October 31, 2023, the median list price is $522,333.
- Percent of Sales Over List Price: 10.1% of sales, as of September 30, 2023, were over the list price.
- Percent of Sales Under List Price: Conversely, 74.3% of sales during the same period were under the list price.
Interpreting the Forecast
The North Port-Sarasota-Bradenton MSA exhibits a recent decrease in average home value, but the one-year forecast suggests a potential reversal with a modest increase of 0.9%. This forecast, along with the key metrics, provides valuable insights for both buyers and sellers navigating the real estate landscape in this MSA.
With a substantial inventory of homes available and a notable percentage of sales occurring under the list price, buyers may find opportunities in this market. Sellers, on the other hand, should carefully consider pricing strategies in light of the median sale price and list price metrics, ensuring competitiveness in the market.
Sources:
- https://www.realtor.com/realestateandhomes-search/Sarasota_FL/overview
- https://www.redfin.com/city/16463/FL/Sarasota/housing-market
- https://www.zillow.com/home-values/20362/sarasota-fl/
- https://www.corelogic.com/category/intelligence/reports/home-price-insights/
