downtown real estate
A market update just for your neighborhood, downtown Sarasota, as of the end of February 2019.
Inventory remains high.
While our inventory decreased about 6% from the sky-high February, we are still about 10% higher than this time last year. Sales and pending sales both increased in March, rebounding from a very slow beginning of 2019, but still remain below last year’s average. Pending sales are down 11% from last year and sales are nearly 40% lower than last year.
Price per square foot continued to fall.
Well, last month looked pretty dismal and this month, we got even lower. Price per square foot is down both from last month (-12%) and from last year (-30%). We expect this number to recover as the same happens over the next 6 months 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!)
days on market is nearing average again.
Last month’s very high average of nearly 6 months on market has come down to a more average 129 days in March. This is still up 34% from last year, but is close to the 2018 annual average of 112 days. The list-to-sale-price ratio is down to 88%, meaning that sellers are getting about 88% of their asking price at time of sale. This is down over 7% from last year and down 3% from last month. The sheer volume of options available means buyers have a slight edge when it comes to negotiating.
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.