downtown real estate
A market update just for your neighborhood, downtown Sarasota, as of the end of May 2019.
May inventory down from last month.
May ACTIVE LISTINGS declined from April but were high for May year over year. There was an average of 269 active listings downtown on any given day in May 2019, and that is 41 more than May 2018. Closed sales slid from April to May after April had a 12 month high of 46 sales. May finished the month with 31 sales which is still the second highest 12-month number behind April. The year-over-year inventory count for May is 228 in 2018 vs. 269 this year, with 30 closed sales in 2018 vs. 31 for April 2019. Blending sales rates and inventory numbers, we estimate there is currently a 9-month supply of inventory downtown. That is down from 19 months of inventory in January this year but 3 months more than last month and one more than the estimated months of inventory we had in May 2018.
Price per square foot at year-to-date low.
Price per square foot is looked at two ways. First, we have the list price, or the price the seller is asking. Next, we have the actual sale price. Both are good to look at but the sold price per square foot is what really matters. For May, the sold dollars/square foot dropped from April (6 month high of $490/sq’) to $427/sq’ (year-to-date low). We also saw a decrease in sold price and $/sq’ relative to list price in May. With that said, sellers are still getting over 96% of their asking price - just not the 97% and 98% seen in the prior few months (interesting note, the sold price vs list price ratio was almost identical for May 2018 and May 2019). We still believe $/sq’ in downtown will increase with new luxury options like BLVD, The Mark, and Pearl all nearing completion. (Not to mention the whole host of additional luxury projects currently in the works!). Keep checking in here to see how things are going!
days on market rise; offers go lower
Downtown Sarasota properties took an average of 172 days to sell in May. That is up from 159 days in April and marks the highest average-days-on-market (ADOM) number in the past 12 months. The average-days-on-market for May 2018 was 130 days. Days on the market in 2019 have floated higher in 2019 overall relative to 2018, and hopefully we’ll see that number go down soon. The list-to-sale-price ratio fell from 98% in April to 96.2% in May. This means properties closed at an average of 96.2% of their list price in April. This is still slightly higher than the overall market in Sarasota, which generally hovers between 94% and 96%. The sale vs. list price average is about the same as it was during this time period last year but higher than the end of 2018, when sellers were getting less than 95% of their list price. In short, sellers are having to wait much longer than normal to sell but they are still able to retain most of their asking price at contract.
What does this mean for you?
Sarasota remains in demand. Sarasota is one of the fastest growing cities in the United States, as shown by the steep increase in development. The slow season is likely to be a signal that it will be a busy summer.
If you are anxious to sell right now, hang in there. Generally speaking, with every flow comes an ebb. We are in a flow of inventory right now. That does not mean there aren’t buyers, it just means they have more options. Prepare to price competitively, get the edge on your competition by clever staging, and make sure you’re working with us, your trusted downtown experts.
If you are interested in buying right now, you are flooded with options and probably anxious sellers as well. These are sellers recently off the high of a great seller’s market, so low-balling is still likely to be met with disdain from residents who don’t realize they’ve lost their advantage. We recommend taking the time to get to know some of the existing buildings first, where you are likely to find excellent selection and sellers willing to negotiate.