Assessing the current dynamics, the Sarasota housing market teeters on the edge between a buyer's and seller's market. With homes selling relatively quickly and a significant percentage selling above the list price, sellers have opportunities to capitalize on the demand. On the other hand, buyers can navigate the market with confidence, given the options available and the average homes selling slightly below the list price.
How is the Sarasota housing market doing currently?
How is the Housing Market Doing Currently?
In January 2024, the Sarasota housing market experienced a slight downturn, with home prices decreasing by 2.7% compared to the previous year. According to data by Redfin, the median home price stands at $535K, showcasing a nuanced picture of the local real estate scenario. However, the market remains somewhat competitive, with homes typically selling in 26 days, a modest increase from the previous year's 27 days.
It's noteworthy that the median sale price in Sarasota is 15% higher than the national average, indicating the area's desirability and value. Despite the dip in prices, the market maintains its allure, attracting both buyers and sellers seeking opportunities in this vibrant community.
How Competitive is the Sarasota Housing Market?
Sarasota's real estate market presents a mix of competitiveness and opportunity. The average homes sell for approximately 4% below the list price, and they go pending in around 26 days, emphasizing the active nature of the market. Moreover, some homes receive multiple offers, underscoring the demand for quality properties in the area.
The Sale-to-List Price ratio currently stands at 95.4%, reflecting a slight decrease of 0.93 percentage points year-over-year. Additionally, there has been a noteworthy increase in homes sold above the list price, rising by 2.7 percentage points year-over-year to reach 11.4%. This trend suggests a willingness among buyers to pay a premium for desirable properties in the Sarasota market.
Are There Enough Homes for Sale in Sarasota to Meet Buyer Demand?
Despite the competitive nature of the market, there are indications of a balanced supply and demand dynamic. Homes in Sarasota spend an average of 26 days on the market, and hot properties can sell at or near the list price, going pending in a remarkable 5 days. This points to a market where sellers can find buyers relatively quickly, contributing to a healthy real estate ecosystem.
However, there is a notable uptick in homes with price drops, standing at 33.0%, representing a 6.3 percentage point increase year-over-year. This data suggests that while demand remains strong, sellers may need to be strategic in pricing their homes to attract buyers in this evolving market.
What is the Future Market Outlook for Sarasota?
Looking ahead, the Sarasota housing market's future is poised for continued activity. The migration and relocation trends from December '23 to February '24 indicate that 33% of Sarasota homebuyers considered moving out of the area, while 67% explored staying within the metropolitan region. This flux in movement signifies both the attractiveness of Sarasota and the evolving preferences of its residents.
Interestingly, only 1% of homebuyers from across the nation searched to move into Sarasota from outside metros. Chicago, New York, and Washington emerge as the top cities contributing to the influx, showcasing Sarasota's appeal to a diverse range of individuals seeking a change in scenery.
Sarasota Housing Market Forecast for 2024 and 2025
With the average Sarasota home value standing at $451,986, reflecting a 1.3% increase over the past year, and a swift pending time of approximately 34 days, the market dynamics are worth exploring in detail.
1. For Sale Inventory (As of January 31, 2024):
1,852 homes are currently available for sale in Sarasota. This inventory plays a pivotal role in shaping the choices available to potential buyers, influencing the overall market activity.
2. New Listings (As of January 31, 2024):
515 new listings in January 2024 indicate a continuous influx of properties into the market. This contributes to the overall supply, potentially impacting buyer options and market trends.
3. Median Sale to List Ratio (As of December 31, 2023):
The median sale to list ratio stands at 0.969 as of December 2023. This ratio serves as a crucial indicator of market competitiveness, representing the percentage at which homes are sold concerning their listed prices.
4. Median Sale Price (As of December 31, 2023):
The median sale price in Sarasota, as of December 2023, is $454,450. This figure provides a benchmark for understanding the average cost of homes that have successfully closed transactions in the recent past.
5. Median List Price (As of January 31, 2024):
The median list price for homes in Sarasota is currently $537,667 as of January 31, 2024. This metric offers insights into the expectations of sellers and the overall pricing trends in the market.
6. Percent of Sales Over List Price (As of December 31, 2023):
Notably, 8.1% of sales in December 2023 occurred over the list price, signifying a competitive market where buyers may need to be prepared for potential bidding scenarios.
7. Percent of Sales Under List Price (As of December 31, 2023):
78.1% of sales in December 2023 were under the list price. Understanding this percentage is crucial for both buyers and sellers to gauge negotiation dynamics and market trends.
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.
The average home value in the North Port-Sarasota-Bradenton area stands at $449,647, experiencing a marginal 0.5% decrease over the past year. This metric reflects the current market conditions and sets the stage for further analysis. According to Zillow, the North Port-Sarasota-Bradenton housing market is poised for growth with a +5.7% forecast for the upcoming year (as of January 31, 2024). This positive outlook suggests opportunities for both buyers and sellers.
This region encompasses a dynamic real estate market, comprising Sarasota and Manatee counties. With a diverse housing inventory and competitive pricing, it attracts both local and potential residents. Sarasota and Manatee counties contribute to the vibrancy of this housing market, offering a mix of urban and suburban living options. The North Port-Sarasota-Bradenton housing market is substantial, characterized by thousands of available properties and a consistent influx of new listings, reflecting the region's prominence in the real estate landscape.
Is Sarasota a Buyer's or Seller's Housing Market?
With 1,852 homes available for sale, the market provides a substantial inventory, suggesting a favorable landscape for buyers. However, factors such as the 8.1% of sales occurring over the list price indicate competitiveness, potentially influencing the overall dynamics. It is advisable for prospective buyers to carefully analyze market trends and work with experienced real estate professionals to make well-informed decisions.
Are Home Prices Dropping in Sarasota?
As of December 31, 2023, the median sale price stood at $454,450, indicating a baseline for recent transactions. However, the median list price as of January 31, 2024, is $537,667, showcasing a potential upward trend in seller expectations. While the market remains dynamic, the data suggests that home prices may be experiencing an upward trajectory, influencing buyer considerations.
Will the Sarasota Housing Market Crash?
The concern of a housing market crash is always on the minds of both buyers and sellers. With a median sale to list ratio of 0.969 as of December 31, 2023, the market reflects a balance between listed and sold prices. However, it is essential to monitor key indicators such as inventory levels, pricing trends, and external economic factors to make informed predictions about the potential for a housing market crash. Consulting with real estate experts and staying updated on market developments can aid in navigating uncertainties.
Is Now a Good Time to Buy a House?
While the inventory of 1,852 homes provides options for buyers, the competitive nature of the market, with 8.1% of sales occurring over the list price, indicates a need for strategic planning. Additionally, the median list price of $537,667 as of January 31, 2024, may influence buyer decisions. Collaborating with real estate professionals and closely monitoring market trends can help potential buyers determine if the current conditions align with their goals and preferences.
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/