Sarasota Real Estate Market Healthier With Fewer Distressed Sales
August distressed property sales, composed of foreclosures and short sales, continued to fall across both Sarasota County and Manatee County. By comparison, distressed property sales fell an astounding 53.9 percent from August of last year. As a result, the total number of distressed property sales decreased to just 5.8 percent of all completed residential real estate transactions. In August 2015, sales of distressed properties accounted for 12.8 of all residential property sales.
Closed sales of single family homes and condos combined went up in August by 1.8 percent over August of last year. Traditional sales, however, which include only non-distressed properties, shows an improvement of 9.9 percent over August 2015. Clearly, as sales of distressed properties decrease and account for a smaller market share, prices of non-distressed properties will experience positive gain. Although there were fewer distressed property sales, which drives down the total number of all closed transactions, this is good news for the health of the market across both counties.
Sarasota and Manatee County Median Home Prices
In addition to falling distressed property sales, both Sarasota and Manatee counties experienced a rise in median home prices. Residential real estate median prices continue to increase from 2015 to 2016. During August, the median single family home price rose by 7 percent in Sarasota County, representing an increase from $237,000 last year to $253,000. Manatee County residential single family properties rose in median price more moderately, by 1.89 percent, an increase from $265,000 last year to $270,000.
Condo median prices experienced a different, mixed phenomenon in August between Sarasota and Manatee counties. The condo median price in Sarasota County fell by 1 percent from $220,000 to $217,750. However, the median condo price in Manatee County increased by 6.5 percent, from $155,000 to last year $165,000.
Pending Sales in Sarasota and Manatee Counties
Pending sales recorded an improvement in August over July in both Sarasota and Manatee counties. Single family home pending sales increased during August, reversing the downward trend which began in May across both counties. During the month of August, Sarasota County contracts for single family properties increased by 10 percent over July. In Manatee County, contracts for single family homes rose similarly by 9.3 percent.
“Pending sales are a good indicator of potential future closed sales. And while 2016 doesn’t compare with the record-breaking year in 2015, the increase, if continued through the end of this year, should bring more closed sales to both counties,” 2016 RASM President Linda Formella explains.
Top five luxury homes closed in August
- 2411&2413 Casey Key Rd, 4 bedrooms, 6 full baths, 1 half bath $5,500,000
- 265 Cedar Park Cir, 4 bedrooms, 6 full baths, 1 half bath $4,500,000
- 530 Harbor Gate Way, 4 bedrooms,4 full baths, 1 half bath $3,500,000
- 1301 Main St,4 bedrooms,3 full baths,1 half bath $3,299,000
- 99 Beach Rd, 3 bedrooms, 3 full baths, $3,000,000
While more homes went under contract in the single family residence category, the same did not hold true for condos in both counties. Pending condo sales stayed on a declining trend that began in April, after the departure of seasonal residents. Across both counties, pending condo sales fell by 3 percent from July.
Market Equilibrium and Available Inventory
Inventory rose well above the amount recorded last year this time, approximately 22 percent. In both Sarasota and Manatee counties, the number of single family homes made available increased inventory 17.6 percent. The number of available condos likewise rose in both counties with different totals. Sarasota County maintained its 5.1 months worth of supply, while Manatee recorded 3.8 months' condo supply.
Single family home inventory in Sarasota total 4.1 months' supply and Manatee has 4.2 months' supply. This indicates a seller's market because the months' supply of inventory is under six, which is considered a balanced market between buyers and sellers. When the supply of available homes increases above six months, it is considered to be a buyer's market. This figure is the number of months it will take to sell all available properties on the market at the current rate.