May 2017 Real Estate Market Report for Sarasota County
Here's a look at the real estate market for May 2017 for Sarasota County, Florida.
The month of May for real estate sales in Sarasota saw a strong market, however, there are indications that a market shift is happening to favor the buyer. A shift to a buyer's market is indicated by the reduced number of contracts written and accepted as well as the increased number homes listed for sale.
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There were 1,277 total homes, condos, townhomes, and villas sold the month of May 2017 in Sarasota County. The majority of homes purchased were financed, mostly by conventional mortgages, but cash still did play a strong role in the method of payment.
Sarasota Sees a Shift to a Buyer's Market
Prices fell by 4% for single family homes for the month of May when compared to April 2017. In addition to the month to month decline, overall housing prices, when compared to May 2016 were down by 2% in Sarasota.
The price decline does not necessarily indicate a complete market shift, however, when you look at the number of accepted offers vs the number of homes still available for sale, a shift is noticeable. There were 966 pending sales in May, which is a decrease of 12% when compared to April 2017. Fewer sales equate to a higher level of inventory or homes still available for sale. This is defined as a contract ratio. If there is a lower contract ratio, buyers have a larger inventory to choose from and therefore may want to negotiate a lower price due to an increase in inventory.
See the article: What are Seller's Closing Costs in Florida
A Look at the Condo Market in Sarasota
There were 311 condos that closed the month of May 2017 in Sarasota County, which is an increase of 10% when compared to April's sales in 2017. However, when compared to same time last year, sales are down in the condo market by 9.8%. The average sales price of a condo in Sarasota is $235,000. The average days it takes to find a buyer is approximately 97 days.
The condo market in Sarasota saw an increase in the number of listings taken in May 2017, up by 13% from the previous month. Additionally, there were 1,282 condos listed for sale in Sarasota County with no accepted offers at the end of May 2017.
See the article: Top 9 Strategies for Making an Offer on a House
Real Estate Values for Single Family Homes in Sarasota
There were 933 single family homes and villas that sold in May 2017, which is an increase of 3.4% over last month. However, the median sales price of $250,000 is a decrease of 4% from April 2017. The average days it takes to sell a home in Sarasota is 65 days, which is still lower than the 5 year average of 74 days. 965 homes were listed for sale by the end of May in Sarasota and 966 went under contract.
Pending sales declined in Sarasota for the Month of May when compared to April's sale for 2017. A decline may be contributed to the fact that many buyers are seasonal and most leave in May. However, when looking at an increase in supply in May as well as less demand, it may mean that prices will retract or homes will remain on the market longer.
What Does It Mean For Sarasota Real Estate Buyers
Buying off season may be the best time to purchase a home in Sarasota. May 2017 saw an increase in housing inventory, combined with a slight decrease in price. As a buyer in Sarasota, you might not be facing multiple offer situations as more homes are available to buy. Therefore, housing may be a little for affordable than the past few months. However, one factor you will want to watch is the interest rate. Despite the increase in housing inventory in Sarasota, the homes may not be too much cheaper if the Federal Reserve continues to increase interest rates.
However, one factor you will want to watch is the interest rate. Despite the increase in housing inventory in Sarasota, the homes may not be too much cheaper if the Federal Reserve continues to increase interest rates.
Read the article: Buying a New Construction Home, Do I Need a Realtor?
New Construction Market for Sarasota
The month of May saw robust activity in the new construction of single-family homes in Sarasota County. There were 23 permits pulled the during the month of May for single family homes. Although most new homes are not listed for sale in the MLS, the new construction inventory should be taken into consideration with regards to housing inventory. Sarasota County, in the Lakewood Ranch area, has several new construction sites breaking ground in May and June 2017. Competition with new construction is a factor homeowners should look at if they are considering selling their home soon.
Selling Your Home in Sarasota
Although inventory has increased and prices have dipped slightly, selling your home is still a good proposition. Mortgage products and underwriting standards have continued to relax regarding buyer qualifications, which will allow more buyers to purchase.
One recommendation is to be sensitive to market adjustments and do not speculate the price of your home, hoping for someone to come along and pay over value. Despite the numerous cash buyers, most buyers are securing financing which must follow guidelines as it pertains to appraisal values. One tick up in the mortgage rates could put buyers out of your purchase price category.
You may be interested in the article: 6 Costliest Mistakes Sellers Make Pricing Their Home
Competition with new construction may increase days on the market for re-sale homes. In an effort to compete with a builder, you may want to consider getting your home inspected or doing cosmetic repairs.
Overall Market Condition in Sarasota
The Sarasota County real estate market is still strong. The inventory increases and slight price decline could be a result of the slower summer months when tourist season is not a busy. However, it would be wise to watch the interest rate movement and the overall demand in the area.