Summer has begun! Typically, the summer shows a slow in our real estate market, and this year looks to be similar. Let's take a look at what is happening in the downtown Sarasota condo market right now:
New construction is cutting into the resale market.
25% of all the homes that went to contract in the last month were new construction condos. With new buildings popping up all over downtown, it's no wonder this is sending shockwaves through the resale market. Especially hard-hit? The luxury market; with almost all the new buildings having starting price points in the high-hundred-thousands or more, buyers with that budget have a lot of brand-new options with more modern aesthetics and amenities than many of our "older" buildings.
New construction price point is more than twice as high as resale.
This means that if you have a million-dollar condo in an older building, you've got some stiff competition. With modern-day finishes, such as large walk-in closets, sleek kitchens, and floor-to-ceiling hurricane-grade windows in the new buildings, it can be hard for older residences to keep up! Couple that with the fact that developers have noted the desire of their residents to have an active life and are providing more in-building amenities, such as state-of-the-art fitness centers, indoor dog parks, and rooftop lounging space, and you've got a recipe for new construction luxury success.
Keep your eye on the rising skyline of Sarasota: Epoch, 7-One-One Palm, The Mark, The Collection, Aqua, and the new Ritz Carlton Residences (to be built on the old Quay Sarasota site) are all set to spring up in the foreseeable future.
Don't lose heart if you are trying to sell.
Despite the effect that all the construction growth is having on our market, 2018 is off to a strong start. May's closed sales in units were above last year's by 6%, and the average sold price was above last year's by 4% for resale condos downtown. As always, if you are trying to sell in the summer, patience is necessary. Inventory is lower than other times of the year, but so is the number of potential buyers. If you are not in a hurry to sell, the summer might provide a good time to spruce up outdated fixtures, get grout cleaned, and replace anything broken. If time is of the essence, be prepared to price appropriately for sale.
Let us help.
We are downtown experts. We're here to guide you through the process of buying or selling in Sarasota. Give us a call today if we can assist you in valuing your property, listing it for sale, or helping you find a new home to fit your life.