It is absolutely beautiful here in November in Sarasota with temperatures in the upper seventies, and you see incredibly sunny and bright skies — if that’s your thing!☀️

This month I want to talk about the increased inventory in the Sarasota real estate market. It should come as no surprise that the amount of inventory has been increasing over the past 16 to 18 months. While sellers are continuing to add new listings (for the typical reasons related to age, health or wanting to be near family) to the market at the same pace that we have experienced historically, we are seeing that buyers have not been purchasing as aggressively as they were 18 months ago.

There are about a third less sales each month over the last 18-month period which translates to rising inventory. This is good for our market. It creates a more balanced situation. It also puts a little downward pressure on pricing. There are now more options and an overall better buying experience since buyers can take a bit more time to assess their wants and needs and find the best match.

There is not an abundance of options, however. This past week, we were preparing for our buyer coming in for the holiday week, and out of the five properties we had identified to visit, three were no longer available. So, if people find something that they want, they need to still act quickly.

Here is a snapshot of the relative inventory levels today vs a year and a half ago in representative areas:

• On Longboat Key there were about 60 for sale 16-18 months ago. Now there are just over 200.
• On Siesta Key there were about 80ish properties for sale 18 months ago. Now there are around 250.

So clearly on the islands there are more options, but we can’t make a blanket statement about the entire real estate market:

• For example, at the Ritz-Carlton Residences in The Quay, two corner Fairchild units have sold at a premium relative to their unbranded older counterparts.

We continue to see tremendous buyer interest in Sarasota, however buyers are contemplating the right timing for their purchase as they see price adjustments in our market.

If you want to be an astute seller or an astute buyer, let’s set up a video call in the next few days to develop a plan.

This month I am recording from South Lido Beach. October is the last month of turtle nesting season on our beaches here in Sarasota. Turtles came ashore here during July and August to create nests and lay their eggs. Those hatchlings are going back out to sea during this month of October.

It’s the end of the third quarter, July through September of 2023. Many of us always joke that we live in a bubble known as paradise here in Sarasota. However, the tumult of the world is always around us and sometimes we’re not impervious to it. How does this relate to our local real estate market?

I want to reflect back to 2021. Sales were very healthy that year on a month to month basis. In 2022, sales were actually lower compared to the corresponding month in 2021. This has happened once again here in 2023. Sales were lower month to month than in 2022 and 2021. Real estate sales this third quarter of 2023 have been kind of low and anemic- with one bright spot. That’s been the most recent month, September.

Let’s talk specifically about the numbers:

• Sales were up 2.7% from the third quarter of 2023 compared to the third quarter of 2022. This was buoyed extremely well by September of 2023, whereas July and August were not as strong.
• The luxury market (those properties selling for a 1.5M dollars or more) is basically flat. It represents about 5.5% of our market. It hasn’t changed since last year.
• 81% of our total market is less than $750,000. This segment too is pretty flat. The most interesting thing is that despite all the changes, inventory has gone up about 10% in the last couple of months, and yet buyers in certain geographies and price point still can’t find anything.

What’s this going to do for our market going forward? I think it’s going to continue to be a little bit more tumultuous and it’s going to be challenging for both buyers and sellers over the next six months depending upon the geography and/or price point. What this means going forward is we expect to see storm clouds. Whether those clouds pass over us or we end up with an isolated or scattered thunderstorm, we just don’t know.

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For a private consultation on your own specific situation, please give me a call @ 941.587.0740.

The beaches, restaurants, and traffic have been quieter than usual here in Sarasota this summer as residents and visitors have spent their time in other places.

What you may have missed while you’ve been away- or while you’re still away. I think one of the most significant things that’s going on is the airport expansion. It’s going from 13 to 18 gates. That’s an expansion of about 40% and will enable the airport to have even more direct flights than the 55 currently going in and out of Sarasota.

What’s been happening on the real estate development front?

• Golden Gate Point has five active construction projects. I want to touch on two. Evolution is back underway. They’ve switched builders and they’re moving towards completion hopefully late this year or maybe early next year. The Peninsula has come out of the ground. There are going to be 23 residences between two different buildings.
• The Quay. Over at the Quay, which is our densest development, I want to highlight two projects in particular. The much anticipated Bayso is going to begin closings in October and they expect to finish those closings before the end of the year. Lennar has a multifamily project with 240 residences and 13,000 sq ft of retail going up. It is about halfway out of the ground with roughly 6 of its 12 story limit constructed.
• The Rosemary District. Over in the Rosemary District, which is eclectic and full of little boutique opportunities, Villa Ballada — brought to you by the same developers who did Zahrada and Zahrada 2 — has come out of the ground. They expect to be finished about a year from now.

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My predictions about the real estate market going into the fall?

I think there are going to be more options for buyers in certain neighborhoods. We are actually seeing inventory beginning to increase and that’s good for buyers. So those that are willing to pull the trigger may have more options and some negotiating power.

One final tidbit for foodies — I think it’s exciting that there are rumors that Sarasota is going to potentially get its first Michelin star restaurant in the not-too-distant future.
Sarasota continues to be at the top or near the top of multiple lists as “A Great Place to Live.” When you’re ready to discuss your sale or purchase please give me a call @ 941.587.0740.

Now that we have half the year on the books, the question of how the Sarasota real market is fairing has become as ubiquitous as “How is the weather?”. The answer depends on your vantage point. The current market can seem confusing, and headlines are often contradictory.

Here are a few “on the ground” scenarios to illustrate this point:

1. For buyers in the market that are looking at new construction in Sarasota within the $900,000 to $1,100,000 range, it can be very frustrating as there is a lot of competition with other buyers in this price range.
2. For sellers who have properties that are listed for $6 million or more, it could be very frustrating because there’s a dearth of showings in that segment.
3. And for the buyer looking for a waterfront condominium that’s brand new in downtown Sarasota, there are no choices.

So what is going on?

• The second quarter of 2023 (April, May, and June) outperformed the third and fourth quarter of 2022 and the first quarter of 2023, so we’ve had a bit of a market rebound. However, sales are down 10% from this same period a year ago.
• The luxury market (the segment that is $1.5 million and up) is down 15% from the second quarter of 2022.
• The ultra-luxury market (those properties listed for $6 million or more) is down 26% from the same period.

We have seen an uptick in inventory over the past several months- so there are more choices- but there are still not enough choices that are enabling buyers to purchase. They are simply not finding what they are looking for. In fact, new listings are down in the second quarter of 2023 compared to the same period a year ago, so there are fewer properties coming on the market, because where are you going to go once you leave Sarasota?

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This is a great conundrum. There are people that want to buy, but most people don’t want to sell. So, overall, the market is quite healthy. We don’t have enough supply for the people that are looking to buy, but we have people that are willing to stay, and I think that’s great validation for our real estate market here in Sarasota.

If you are considering a real estate move this year, please give me a call @ 941.587.0740. I can translate for you how the market is doing for your specific situation and lay out a strategy for your personal goals- whether you are a buyer or seller on our market.

I want to share some of the messages that we’ve been receiving here in our local real estate market as we embark on our summer buying season.

Here are the top-level points we feel it important our clients know:

1. Some Buyers are being outbid on properties. We have buyers who have held back on offers thinking that with time sellers may soften their pricing, however in at least two cases another offer came in higher than they were either prepared or thought necessary to pay.
2. Sellers are receiving multiple offers. One of the most recent examples was a listing that was on its 58th day on the market and multiple buyers presented offers in same weekend.
3. Median prices are up from the same time a year ago. For May 2023, they may be slightly lower than 2022, but it’s still too early to know.

The Inventory Paradox

Our real estate inventory is greater than it was a year ago. However, it is important to put this into context. It may or may not be true for any specific property or location. I took a look at some downtown condominiums each with their own distinct architectures, lifestyles, and amenities. In Sarabande there is nothing for sale. Tessera, nothing for sale. Marina Tower, just one residence. However, just down the street at The Mark there are six residences for sale. At Bay Plaza, there are eight residences for sale. And 1350 Main St has nine residences for sale.

Crossing the bridge to the Lido Beach, the Beach Residences managed by the Ritz-Carlton has one unit on the market. Same holds true for Orchid Beach Resort. And finally, L’Elegance has nothing for sale.

So, what does this tell us? It tells us that sellers need to be patient for the right buyer and buyers need to know that there’s competition in the market.

New Construction Update

The new construction segment is active as can be witnessed by the multiple construction sites under way. This space is unique as some buildings are sold out, some are taking contracts, others are still in the reservation phase. Occasionally sold-out projects have residences that come back to market since much can happen over the course of years that new owners have to wait. Case in point is one residence at the St. Regis on Longboat Key that recently returned to the market, though at a much higher price than when it previously sold.

Next up for completion in downtown Sarasota will be Kolter Urban’s 149 residence project at Quay Sarasota named BAYSO. The new owners will be taking occupancy beginning in the 3rd quarter of this year (2023). Most other new construction is still 18-24 months out. For those in the per-construction phase you can calculate taking occupancy about 24 months from ground-breaking.

When you are navigating buying or selling real estate assets it is critical to have a professional to help you through the process so that you are well-informed and protected.

No matter where you may be in the process, I welcome you to call 941.587.0740 for advice whenever you need.

Let’s talk about what’s been going on here in Sarasota’s real estate market during the first quarter of 2023. Before we get into that, I want to let you know that we’ve reset the parameters for how we classify our market segments:

• Affordable properties are listed for $350,000 or less.
• Mid-segment is from $350,000 to $750,000.
• Luxury has been moved up to those properties for $1.5M and more.

Now let’s hit on the benchmarks we use to measure the market performance:

1. Sales in this first quarter of 2023 are down 19% from the same period a year ago.
2. The affordable segment continues to shrink even though I’ve moved the bar up. Currently, the mid-market segment represents about 50% of our market. An increase or decrease in this segment will be a great indicator of whether our area is going up or down in price.
3. All told, 80% of sales here in Sarasota are for properties listed for $750,000 and less.
4. The luxury real estate market, which is now $1,500,000.00 and more, is about 4.5% of our total market. It also shrank by about 4.5% from the same period a year ago.

What’s Happening in Specific Neighborhoods?

In Bird Key, we’re seeing an increase in inventory. This may give somebody one or two more choices, but at the same time, a couple of high-ticket properties just went pending. One that was listed at $9.95M and another at $12M. Both went under contract in less than 30 days.

Lido Beach has very little inventory and not much new inventory seems to be on the horizon. People are really enjoying that lifestyle. And a lack of new inventory is indicative that people are staying and not selling even with the appreciation during the past few years.

Marina Bay, a condominium community on Longboat Key has nothing for sale, therefore it was a reality to have multiple buyer situations such as we experienced during the first quarter of our listing there.

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Post Pandemic Sellers

I’ve also watched a different type of seller. We’re seeing some of what I call post-pandemic sellers in the market right now. In the upper tier of the ultra-luxury segment, 40% of the sales are for properties that have been owned for three years or less. I don’t know if this is a trend that’s going to continue or just something that’s happened in the first quarter, but we’ll keep our eyes on it. It also reinforces our commitment to working with buyers to find the match trifecta, “location, setting, home.”

The economy and the media are giving us all sorts of mixed messages and signals, some of it causing frustration and some reason for great optimism. Don’t concern yourself with what your neighbors, your friends, or your loved ones are doing. Focus on yourself.

I think that the best course is to chart your own.

If you’re looking for an ethical, honest, and transparent real estate experience, please give me a call @ 941.587.0740.

It appears that the banking situation is not affecting the Sarasota real estate market. In fact, the level of activity in our business this month may be indicative of how real estate holdings may be considered a safer bet than other investment options. It is also undeniable that owning a place on the water and in the sun creates a happiness factor that is impossible to quantify.

Just this past week there have been multiple showings on our listings, and we have received offers and negotiated contracts on listings in the luxury segment. We have also written contracts for buyers and encountered multiple offer situations.

Today I want to focus on the upper tier of the ultra-luxury real estate market here in Sarasota. These are properties that are listed for $5M or more. They are currently 56 active listings in the ultra-luxury segment. This number does NOT include new or preconstruction, just existing homes. There are nine properties in this segment that are currently under contract. Within the last three months, nine properties have sold.

Some people are calculating that there are about 30 months of inventory in this segment. If you are a Seller, you need to be patient. If you are contemplating selling, it is imperative that you do all you can to prepare your home to make it easy for buyers to purchase.

If you are a buyer, it’s an interesting time. The ultra-luxury segment is under pressure. There is more inventory here locally, and it’s competing with other communities around the globe. However, buyers should not be naive that they are the only ones looking. People want to own homes and great estates in neighborhoods such as this.

While there is more inventory available to look at, buyers should not be fooled into thinking that it will be easy to find the right match for your needs.

Currently, we are seeing high-net-worth individuals and families move their money among asset classes. Some no longer want to have all their eggs on the equities roller coaster. The venture capital market has slowed down, and debt (bonds) continues to be hotly speculated. The real estate market in Sarasota continues to appreciate both in value and desirability.

We always assert that when you invest in the right property here, you are also investing in a lifestyle- a quality of life that is priceless. If you’re interested in participating, get off the fence and give me a call @ 941.587.0740.

It’s mid-January and here on the beach there’s nothing but blue skies, warm temperatures, and it’s our happy season!! In fact, we are going stay quite busy for the next several months and likely even well into July, our second busiest month here in Sarasota.

The real estate market here in Sarasota has lots of activity. From our experience, as we turned the leaf on a new year, we have lots of active buyers, sellers, properties going under contract, multiple offer situations, and plenty of enthusiasm for our community here in Sarasota.

The 2022 Sales Numbers

First, let’s look at the numbers. How did our market perform in 2022?

• Sales were down in 2022 compared to 2021 by 26%. This is in large part a function of the fact that there has been very, very limited inventory. In the fourth quarter alone, sales were down 38% compared to the same period in 2021.
  • This lack of inventory has caused a lot of strain. It has caused prices to go higher and has caused buyers to enter into multiple offer situations. We are seeing that loosen a little bit in the past few months. In fact, our current inventory levels are about three to four months based upon our current sales figures. It would actually be great to have a little bit more inventory because this inventory is not spread evenly throughout our marketplace.
• Our affordable segment (property under $500k) continues to get smaller and smaller. It now comprises about 50% of our total market. Less than 6% of our market is under $200k a dramatic change over the last 5 years.
• The luxury market (property above $1M) is 11% of our total market and it’s been very stable over the past few quarters.
• The super luxury market (properties listed for $5M or more) has been very slow. The bright spot in this segment has been new construction condominiums, which will not be completed for two to four years from now. We are seeing resales having a very slow moment. This probably won’t last, but it has been that way for the past couple of months.

What are Buyers Thinking and Feeling?

Well, there’s a huge trough of information that our buyers feed from. Some of them are stepping into the market and finding multiple offer situations. With our own real estate listings, certain listings are getting more attention than others and going under contract, if not in days, in weeks. We are seeing a lot of competition.

Certain buyers are taking a step back because what they are finding in the trough is giving them pause. Other buyers think that the market is a little too strong for them, not by much, but a little bit and they are waiting for some event in the future. I am not quite sure which is the right way. Yes, there are multiple offer situations, however we’re still seeing prices come down about 1-3%. We are seeing inspections and other contingencies return, and yet it is still a very competitive market.

I obviously do not have a crystal ball and there are people on both sides of that fence. What I am seeing is that people continue to move to Sarasota and want to call it home. We have a wonderful lifestyle here and people are investing. As I’ve said before, there may be a hiccup or two in the real estate market, but long term the quality of life in Sarasota only gets better and better.

For any information on ANYTHING related to real estate here in Sarasota, give me a call @ 941.587.0740.

First let me take a moment to acknowledge the “Season of Sharing” in Sarasota, our community safety net. More than $34,000,000 has been distributed to 44,000 households as a hand-up. At Investments In Sarasota, our giving occurs year-round with a donation in the name of our clients to the charity of their choice. Philanthropy remains one of the pillars of our community.

This month, I want to use 5 words that describe Sarasota’s real estate for me at the moment:

1. HOT. The Rosewood Residences on Lido Key are beginning to pick up momentum. With permits in hand, they are getting very close to breaking ground and starting construction. I do believe this is going to set the bar even higher in terms of the most luxurious branded residence in our community.
2. NEW. The second, next-generation Ritz Carlton Residences Sarasota Bay has been announced in The Quay. There will be 78 residences and three categories of living: Ultra Luxury, The Estates, and the Penthouse Collection. Not your parents Ritz Carlton, these residences are in the reservation phase and will probably start construction late spring 2023.
3. POPULAR. Bird Key, the exclusive residential island between mainland Sarasota and Coon key, continues to hold its financial and lifestyle value as there are only 2 properties for sale in a community of 511 residences.
4. SURPRISING. The real estate market on Longboat Key continues to amaze. Properties that are well-priced are selling under 30 days and many for full-price or over asking. Last week we were involved in a multiple offer situation. The Town of Longboat Key is not resting on their laurels as the Town continues to work arduously to raise the bar on the quality of life for their residents. I think the arrival of the St. Regis is going to put even more upward pressure on pricing as it moves closer and closer to completion.
5. VIBRANT. Sarasota is rocking. Downtown is vibrant with the arts and restaurants bustling even on the weekdays. There is lots of live music and culture. It is fun to see all of the people out having a good time.

All of this energy trickles down to our real estate market which continues to be stable — yes there will be hiccups — but over the long term I am very bullish on Sarasota and our community. It is a great place to find your happy.

For any information on ANYTHING related to real estate here in Sarasota, give me a call @ 941.587.0740.