Sarasota Real Estate Market Update - 2014 Q1
The Sarasota Real Estate market continues to show strength in total units sold, average price per squ
are foot and average sale price. Market time is tightening for non-bank involved sales and the list price to sales price ratio is improving. Annual levels are at almost record levels and the shorter term is looking quite healthy as well.
Unit Sales – Q1 2013 vs. 2014
Overall unit sales were flat as compared to Q1 of 2013 but are showing a shift away from short sales. The underlying make up of total unit sales show significant improvement in non-bank sales which are making up the decrease in short sales. What we started to pick up in the 2013 end of year report was the almost two-thirds drop in closed short sales. We view this as a signal that distressed properties are having less impact in the overall market. We believe that sellers may be less inclined to short sale their homes due to the expiration of the deficiency waivers allowed for underwater home owners.
Foreclosure sales increased by 37% by units sold with no significant change in the average sales price. Foreclosures, by nature, will be with us for some time as the process from filing a foreclosure to the time the bank can bring the home to market can take several years.
 Sarasota Sales by Unit through March 2014 |
 Sale Distribution by Type through March 2014 |
Average Price
Overall Sarasota Real Estate prices increased in every category. The average price was up from $251,860 (2013 Q1) to $276,519 (2014 Q1) for a 9.7% average price increase. We also see an 
same increase in average sales price per square foot up from $137.31 to $147.37. The sales price to list price ratio also increased for all categories favoring sellers except for foreclosures category which saw a 2% drop favoring buyers.
While foreclosures account for less than 10% of the available inventory, we saw an increase in available foreclosure inventory. Final sales prices of foreclosures show a bit more flexibility by the banks. The foreclosure average price slipped slightly and we noticed an 2% drop in the sales price to list price ratio favoring of buyers.
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| Sarasota Avg Sales Price Monthly through 3/2014 | Sarasota Avg Price / Sq.Ft. Monthly through 3/2014 |
Days on Market
Consistent with a strengthening of the overall market, average days on market tightened for normal sales which represent 78% of all sales for 2014 Q1. Short sales and 
foreclosures showed a modest increase which is consistent with the lower sale price to list price averages. Buyers are showing slightly less interest in these types of sales properties.
Supply
Total average monthly sales are 894 sales for the quarter. Total inventory at the time of this writing are 4,586 homes and condos in
Sarasota County. An additional 437 “active with contract” listings for a total of 5,023. With 4,586 homes for sale and a sale rate of 894 sales per month, our supply of homes is at 5.1 months. Typical balanced markets will have 6 moths of supply meaning the market tilt is modestly towards sellers.
Opinion
The Sarasota Real Estate market has gone from a buyer’s haven several years ago to a modestly favorable market for sellers. Over the past several years, we have seen unit sales increase and prices bottom. We feel three years make a trend and as we stated in our 2013 Sarasota Market Report, we are in an upward trend.
Higher prices, fewer short sales, shorter marketing times, supply numbers less than six months, and higher sales to listing price ratios all point to a strong and steady market with appreciation that is sustainable. We also note an increased willingness on banks to negotiate their foreclosures as positive although foreclosure activity is a small fraction of the overall market. We also like the reduced number of short sales with the slack being picked up primarily with the sales of non-bank (or normal) sales.
John Woodward
Broker/Owner
Sarasota Real Estate Group
john@johnwoodward.com
Related Posts:
- Sarasota 2013 Annual Real Estate Report
- Sarasota December 2013 Market Wrap-up - Monthly
- The Best Time to Buy in Sarasota
- Calling the Bottom of the Market
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