The Sarasota Real Estate Market – Truth Told

Lakewood Ranch Builders Model Piedmont Park Pool ViewChange in the Sarasota Real Estate market is as sure as the Tide on our lovely beaches. Market prices and availability ebb and flow with the changes in both regional and national factors. Additionally, change in this area is amplified by some unique aspects to our home market. Chief among them is “People Want to Move Here”.

Most Real Estate Markets across the country consist primarily of changes in family status. Change in these areas is driven by people moving up, downsizing, buying their first home and the like. The size of the market remains relatively static. This insulates the market from big swings in the price and availability equation.

Sarasota / Bradenton Area Real Estate and all of Florida in general are a little different.  We have the family change situation just like the rest of the country but we also have a growing market driven by the influx of people moving here. One of the Builders in the Lakewood Ranch Community reported 91 sales last month alone. 

Prices here are primarily dictated by the Builders. There are not enough existing homes to accommodate our new residents so the area Builders play a vital role. The Builders, after all, are in business to make a profit and they are in the position to adjust more quickly than the typical homeowner to changes in economic conditions. When market conditions are declining, the builders can cut costs and offer a different product in order to drop prices and provide the incentive to attract buyers. It is not so easy for existing homeowners to lower their asking price because the idea of giving away equity or accepting a loss is either unattractive or unacceptable.

On the other hand however, when economic conditions change and market conditions are on the rise it is much easier for existing homeowners to raise their asking price in lockstep with price increases from the Builders. This is the situation that the Sarasota Real Estate market currently finds itself. The Real Estate market here is Booming and the inventory of both new and pre-owned homes is shrinking at an alarming rate. Prices are accelerating upward.

For those of you who have been waiting for the Sarasota Real Estate to bottom out I have some sad news. Sorry…”You Missed It”. This area is now firmly in the grasp of a Sellers Market.

This is where Real Estate Agents like me really earn our keep. I talk to out-of-town buyers daily and very few of them have an accurate understanding of our current market conditions. This frequently results in frustration when they are unsuccessful in purchasing the home they wanted so badly. Buyers looking for Deals in this area can still find them but you might have to re-define your idea of just what a Deal is. Can you buy a home in this area for less than market value?…probably not. Can you invest in a fantastic home that has the potential for better than average appreciation over time in an area with an outstanding quality of life?…without a doubt!

If you are considering purchasing a home in the Sarasota Area, congratulations, this is an amazing place. In order to successfully purchase a home however, you will need to be thoroughly informed and be able to act swiftly. Homes in desirable areas and priced to the market will sell very quickly. I have seen as many as ten offers on a desirable property within 24 hours of Listing. The successful buyer will not delay and will be able to provide everything required for the offer to purchase contract including a bank pre-qualification or proof of funds.  I can help. Please feel free to contact me at sarasotahomesusa@gmail.com.   

 

Mike Justus Mike Justus (14 Posts)

Mike Justus Is A Real Estate Agent With Atchley International Realty. Mike Specializes In Residental Property Sales In The Sarasota / Bradenton Florida Area And Lives With His Wife of 45 Years Aboard Their Sailboat On Longboat Key.


Comments

  1. Good article, Mike! The market conditions are the same here in Southeast Florida, my new location, with Keyes REalty in Boynton Beach. In Palm Beach County, in the Boynton Beach, Boca Raton & Delray Beach areas, inventory is low, prices on the rise . . . more buyers than sellers . . . . multiple offers becoming more the norm.

Leave a Reply