Q3: 2020 Sarasota & Manatee County Market Update

Q3 : 2020 Sarasota & Manatee Counties

Market Update

317 Iris St $3,700,000

7147 La Lenaire Dr $2,275,000

Anna Maria Island

280 Golden Gate Pr #300

Aqua

Shelley Young

$4,980,000

Joel Schemmel

Jewfish Key

606 Crestwood Ln

Key Royale AMI

Kim Freiwald

$3,899,000

Laurie Mock

Market Update Q3 2020 Q3 2020 tells a tale of a major market rebound! An incredibly strong local market in the midst a global virus pandemic. As we now know, Covid-19 (Coronavirus) first impacted stock markets and consumer confidence in January 2020 over concerns of global supply chain shortages, but Sarasota area real estate remained incredibly strong throughout January and February until the public’s emotional shift in March.

Bradenton

Sarasota

March and April took a dramatic drop in real estate activity as the world came to grips with the situation. But the market began recovering in May and has strengthened at an incredible pace through the balance of the year.

The third quarter of 2020 was like no other third quarter in recent history with people leaving large urban centers for small to medium markets throughout the country. Florida demand was particularly strong, but Florida was not the only beneficiary as areas like western New Jersey and the Hamptons saw unprecedented demand. Our buyers were not just from the north. Local demand was equally strong as buyers and sellers repositioned within the region as the realization that low levels of inventory appears to be the norm for the future.

All of Florida benefited but none more than the Sarasota Bradenton area due to our desirable combination of great weather in a medium sized market with beautiful beaches and remarkable amenities. Buyers get big city benefits without big city drawbacks. We are well below the freeze line so winters are perfectly moderate. It doesn’t get any better and the recent demand proves it again.

No one knows what the future will hold, but history tells us that barring any major national or international event, odds are very good that the Sarasota Bradenton region will continue a strong real estate market for the foreseeable future.

May not be copied or reproduced without written approval from Premier Sotheby’s International Realty.

Data from Stellar MLS is deemed but not guaranteed to be 100% accurate.

SUPPLY Single Family Homes “For Sale” Sarasota and Manatee Counties as of 9/30/2020

Units For Sale

Months Supply

1377 Under $500,000

1.2 Incredibly low

567

$500,000 to $1 Mil

2.2 Very low

339

$1 Mil to $2.5 Mil

4.4 Low

135

Above $2.5 mil

2419

Combined totals

____

9 Balanced

____________

1.5 Extremely Low

The above chart evidences low inventory at all price points. This is not just a Covid-19 phenomenon. Local inventory has been on a downward path for the past couple years. Lower price points have long been in short supply, but this is the first time since the mid-2000s that we have seen this significant of an inventory shortage at the moderate and higher price points.

Provided by Premier Sotheby’s International Realty Data supplied is from the Stellar MLS is deemed but not guaranteed to be 100% accurate

DEMAND Single Family Homes

Q3 2019 vs Q3 2020

Sarasota and Manatee Counties

Went Under Contract in Q3 Q3:19

3041

Q3:20

3824

$500K to $1 Mil

Q3:19

470

Q3:20

875

$1 Mil to $2.5 Mil

Q3:19

96

Q3:20

296

Above $2.5 mi

Q3:19

18

Q3:20

63

Combined Totals

Q3:19

906

Q3:20

1265

Under $500,000

26%

Closed Transactions 3257 3696

86%

489

208%

112

250%

19

40%

969

827

260

48

1208

13% 69% 132% 153% 25%

The Single Family Home market continues incredibly strong demand at all price points, but unquestionably demand is strongest in the $1 Million plus market segments. Homes going under contract were even stronger in the Third Quarter than the Second, thus we anticipate continued strength in closings well into the forth quarter.

Provided by Premier Sotheby’s International Realty Data supplied is from the Stellar MLS is deemed but not guaranteed to be 100% accurate

Average Sale Price Single Family Homes Sarasota and Manatee Counties

Single Family Homes prices have seen a significant increase in demand and average price. Days on the Market have only reduced slightly but this is misleading because homes that are nearly new or recently updated are selling significantly faster than homes that require remodeling. We have even seen a substantial increase in the number of “multiple offer” situations on homes that fit the highest demand profile: good location, updated, good lot/view, excellent condition.

Days on Market Single Family Homes —All Prices Combined Q3:19

Q3:20

85

77

1%

Nominal Change

Provided by Premier Sotheby’s International Realty Data supplied is from the Stellar MLS is deemed but not guaranteed to be 100% accurate

SUPPLY Condominiums & Townhomes “For Sale” Sarasota and Manatee Counties as of 9/30/2020

Units For Sale

Months Supply

1136 Under $500,000

3.0 Very low

301

$500,000 to $1 Mil

4.1 Low

106

$1 Mil to $2.5 Mil

3.4 Very Low

55

Above $2.5 mil

1598

Combined totals

____

18.3 High

____________

3.3 Very Low

The above chart evidences low inventory under $2.5 Million. This is not just a Covid-19 phenomenon. Local inventory has been on a downward path for the past couple years. Lower price points have long been in short supply, but Condominiums in the $1 Mil to $2.5 Mil range are uncharacteristically undersupplied at this time. The primary reason is a shortage of New Construction projects.

“Bayso” in the Quay is currently one of the few projects that fits this niche.

Provided by Premier Sotheby’s International Realty Data supplied is from the Stellar MLS is deemed but not guaranteed to be 100% accurate

DEMAND Condominiums & Townhomes Q3 2019 vs Q3 2020 Sarasota and Manatee Counties

Closed Transactions

Went Under Contract in Q3 Q3:19

1275

Q3:20

1206

$500K to $1 Mil

Q3:19

162

Q3:20

224

$1 Mil to $2.5 Mil

Q3:19

45

Q3:20

93

Above $2.5 mi

Q3:19

11

Q3:20

12

Combined Totals

Q3:19

1493

Q3:20

1535

Under $500,000

-5%

926 1152

38%

120

107%

32

9%

7

3%

1085

218

93

9

1472

24% 82% 191% 29% 36%

The Condominium / Townhome market continues steady demand but has not surged as much as the Single Family Home market. Demand is strongest in the $1 Million to $2.5 Million market segments. Homes going under contract were even stronger in the Third Quarter than the Second, thus we anticipate continued strength in closings well into the forth quarter.

Provided by Premier Sotheby’s International Realty Data supplied is from the Stellar MLS is deemed but not guaranteed to be 100% accurate

Average Sale Price Condominiums & Townhomes” Sarasota and Manatee Counties

Average Sold prices have risen substantially when comparing Q3 2019 versus Q3 2020. Perhaps more important is the price surge in Q1 2020 indicating unprecedented price growth for Condominiums. The subsequent drop in Q2 2020 is a direct result of Covid-19. Overall the post Covid-19 condo rebound has been less significant than single family, but the undeniable Pre-Covid numbers indicate a continued condo rebound in the coming months.

Days on Market Condominiums & Townhomes—All Prices Combined Q3 : 19

Q3 : 20

105

98

.7%

Insignificant Change

Provided by Premier Sotheby’s International Realty Data supplied is from the Stellar MLS is deemed but not guaranteed to be 100% accurate

Sarasota and Bradenton Looking Forward The fate of the real estate market is largely tied to consumer confidence, so the recovery is highly dependent on how well our economy rebounds from the Coronavirus impact and the Presidential Election. But confidence is not the only driver. Baby boomers will continue to retire at an unprecedented rate for several years to come. They are financially stable regardless of recent market turmoil. And they still want to move to Florida.

Though we cannot predict the future, we can say with confidence that the data shows strong, increasing demand in Florida and specifically our region of Florida. We can also say confidently that as a whole inventory has been under supplied for the past couple of years and this is expected to continue going forward.

Remember the old adage: “real estate is LOCAL”. It is truer than most people realize. It is next to impossible to extract logical assumptions from broad statistics that report on a large geographic areas or combined price groupings. The more specific the analysis the more valuable the information.

If you are thinking of buying or selling, you have to analyze each opportunity on its own merit. Don’t use high level stats or you risk invalid value estimates. You need an apples to apples comparison by zip code, neighborhood, street, price, product, age, quality and condition.

Zillow can’t give you that. The best way to accurately assess the value of a home is to work with an experienced realtor who knows your neighborhood and has the tools and knowledge behind them to provide you with valuable guidance.

To learn about specific trends in your neighborhood speak with a Realtor at Premier Sotheby’s International Realty.

Sarasota 50 Central Ave, Suite 110 Sarasota FL 34236 941-364-4000

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Everyone deserves the extraordinary, because luxury is not about price — rather it’s about an experience. And when it comes to real estate, experience matters.

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This material is based upon information from the Stellar MLS, which we consider to be reliable but not guaranteed to be accurate.

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