I get this question a lot. Unlike the real estate crash that occurred from 2007-2009, where the thriving market was built on speculation and buyers getting sub-prime mortgages, this market is much more sound from the perspective that it hasn’t been investor driven, and most buyers have either paid cash or taken out a smaller percentage of financing. As I’ve mentioned in previous newsletters, people found they could work remotely, and having sold homes up north at significantly higher prices, decided there was no reason to wait until their retirement years to move to Florida. However, with prices having risen due to high demand and low inventory levels it would appear more likely that the meteoric rise may become more gradual and that buyers will become more patient, waiting for there to become more of a balance in the market than the buying frenzy that has occurred the past two years. Where I do see signs that inventory levels could remain low stem from sellers who would like to take advantage of the market, but don’t want to jump into the pond of other buyers desperately looking for a home. The feeling the profits attained could be offset by the increased price they would be paying for their next home, may not be worth putting their home on the market for sale. Could that limit new listings coming on the market, resulting in fewer homes available for sale? Possibly, but natural disasters, epidemics and the loss of loved ones can put what is important in life in a different perspective. The desire to downsize, travel more, or moving back closer to family will continue to bring new inventory on the market and the willingness we are seeing from buyers looking for a better quality of life I feel bodes well for the market to remain strong this new year.
Since we cover a large area people are always asking, “How are things selling in Sarasota (City) and Venice (City) as well as our area?” Well, here is what is going on in those markets as well as ours.
Sarasota saw a 2.8% increase in the number of homes that sold from January 1st through August 31st this year compared to the same time period last year. Home prices were also on the rise increasing 6.9%.
Condos sales were up 9.1% with the average price increasing 15.8%. This jump was greatly influenced by the condo sales closest to the water and downtown areas where prices have risen dramatically.
Venice saw a 2.3% increase in home sales with the average selling price increasing by almost 7%. Condominiums outpaced homes sales posting a 7.6% increase with the average selling price rising by 4.3%.
Charlotte County homes saw a robust 11.2% increase in sales with the average home selling for almost 8.5% higher than the previous year. Condominium sales increased by 15.6% with the average selling price increasing by almost 5.5%.
The boating communities of Punta Gorda Isles and Burnt Store Isles always are of interest to our readers. Home sales rose in these developments by over 17.7% with the average selling price increasing by 3.4%. Condominium sales were even with last year increasing slightly in price by just under 2%.
And as always if you want to know specifically about your home, feel free to email/call us anytime!
*Sales figures pulled from MLS data.