Our Judy Kepecz-Hays team could feel the vibrant path that the local real estate market is tracking just barely two months in 2020. Moving into mid-February, our team has already notched five pending sales.
What’s even more remarkable, three of our pending sales are priced over the $1 million level. This roster of ours demonstrates the sustained vitality of the luxury real estate market that we’ve seen toward the end of 2019. Sales of residences priced at over $1 million in Sarasota saw sustained gains during the fourth quarter last year, statistics compiled by the Realtors Association of Sarasota and Manatee (RASM) indicate.
4Q 2019 Sarasota Sales of Residences Priced Over $1M
The consecutive three-month sales increase, as shown in the table above, indicate market confidence of wealthy house hunters which has been observed throughout the U.S. at the latter months of 2019. Real estate analysts attributed this buoyant mood to a decline in U.S. mortgage rates and stronger global economic indicators.
In our Sarasota market, buyers’ enthusiasm on luxury residences is evident in the significant decline in the median time to contract in December. During the month, the number of days between the market listing and eventual sales closing of a high-end single family house in Sarasota dropped 48.1 percent to 67 days compared with a year earlier. Sarasota luxury condos’ median time to contract dropped as well, with a 65.9 percent to 43 days.
Tailwinds for Luxury Sales
Opportunities on value-for-money purchases appear prodding upscale residential buyers to move in quicker on available luxury residential properties in Sarasota. Recent industry reports indicate that the price appreciation in this local market segment has been milder, in contrast with the steep rise in other U.S. urban centers.
Relatively limited choices on upscale listings and competition among prospective buyers also help bring about faster turnover of available residences for sale. Last December, the stock of single family houses with price tags of over $1 million was down 3.2 percent, as new listings failed to keep up with residences that went off-market during the month.
Overall supply was tight on the Sarasota real estate market, RASM December figures show. During the month, the inventory of single family houses in the county decreased by 11.4 percent and that for condos by 31.5 percent.
Measured in terms of months’ supply, Sarasota is in a sellers’ market territory for both residential types. The stock of single family houses in the county stood at 3.7 months’ supply and that for condos at 3.9 months. Both are notably well below the 5.5-month equilibrium wherein neither seller nor buyer has an edge in pricing.
This supply scenario is reason enough for prospective sellers of residential properties in Sarasota to be optimistic about engaging the market now. Doing so, however, needs to consider other factors, such as the right marketing approach, in order to draw top dollars to a sales listing. Contact our Judy Kepecz-Hays team to maximize your chances of getting the best offer or the best purchase choice. Clients are our priority, whether they want to buy or sell.