Welcome to 2022! We begin our 3rd decade of business delivering concierge-style real estate service and unmatched expertise in Sarasota Real Estate sales, purchases, and investments. This is our 13th year of producing the most informative and timely video updates with real statistics and analysis so that our clients can make informed, insightful choices.

“LIVE BETTER HERE”

With the scene of relaxed and sun-drenched beach-goers enjoying the sunset here on Lido Key, the maxim we have embraced for 2022 is “Live Better Here.”

Enthusiasm for being part of our community is soaring. Living here is a want- not a need. If you don’t have to find a job here or if you can work remotely, it is especially easy to want to make the transition. And if you do need a local source of income, Sarasota is a haven for entrepreneurial spirit and like-minded people.

2021 was a year of re-exploration both of geography and ourselves; as people contemplated where and how they want to live. Living here is clearly what many want as demand continues to outpace supply.
Here are the statistical highlights:

• Sales for 2021 are up 17.15% over 2020.
• Sales for the 4th quarter of 2021 increased 14.4% compared to Q4 2020.
• Median Price for the 4th quarter of 2021 is 22% higher than it was for the 4th quarter of 2020.
• There are under 800 properties for sale. This is about 20% of “normal” levels which is driving prices up. While inventory is low, we are not running out of properties as new ones get listed each week.
• The luxury market (properties listed for $1M or more) units sold decreased by 1.5% from the Q4 a year ago, however the percentage of sales in this segment has increased, meaning we are shifting to higher price points.

There are two types of buyers in our market:

1. Those that want to “Live Better Here” NOW.
2. Those who are looking at longer time horizon and have their sights on new construction options coming out of the ground.

For the latter, the wait is about 18-48 months for brand new condominium construction on the barrier islands and Downtown Sarasota. We are getting multiple calls a week with new clients eager to plant their stake in The Quay and other sexy new constructions projects such as The Rosewood Residences Lido Key and the St. Regis Longboat Key.

NOTE TO SELLERS: While a strategy of aspirational pricing has proved effective during some periods of 2021, there are also instances when coming out of the gate overpriced has led to significantly lower sales prices leading us to wonder if a slightly more conservative approach would have netted the seller a higher purchase price. If you may be a seller in locations where new construction is on the horizon, I do not recommend waiting too long as a lot of inventory will be added. As the wait time on new construction gets shorter and shorter, more buyers will be willing to have delayed gratification in exchange for shiny and new.

Sarasota’s future looks brighter and so does its real estate market. Our community is bustling with activity and the number of people interested in creating a home here is increasing. I expect that demand will remain strong.

When you are ready to navigate the many paths and options for selling and buying on your journey to “Live Better Here,” give me a call @ 941 587 0740.

On November 14, I brought several key professionals to share their first-hand experiences on what is happening in our Sarasota real estate market. There were a lot of great nuggets from that collaborative discussion. We have attached the highlights in the written portion of this newsletter.

BREAKING: Rosewood Residences Lido Key Now Taking Reservations

The Rosewood Residences at Lido Beach is just starting to go to reservations this week. This is very, very exciting news. If you or anyone you know is interested in this project, we now have the floor plans, range pricing, the reservation agreement, and an escrow agreement in hand.

You can’t put our Real Estate Market in just ONE bucket

Everyone wants to figure out this real estate market. There are lots of things that are going on and Sarasota’s real estate market does not just fit into one bucket that’s one-size-fits-all. There are so many dynamics to each scenario, location, and product. The big takeaway that I have is “to have success you need skilled representation.”

First let me give you three anecdotes to illustrate how wildly different any given situation can be in this market:

1. We listed a property last week on a Friday. By Monday we had 14 showings. In addition, we held an open house on that Saturday with over 30 people. We had multiple offers on this property GREATER than the listing price, and even after we went to contract potential buyers still wanted their offers presented.
2. On the flip side, we are currently working with one of our ultra-luxury buyers on a negotiation. (Ultra-Luxury properties are those that are listed for $3MM or more). In this situation, the property could sell for at least 10% LESS than the listing price.
3. Some properties are going to contract without coming to the open market first. I strongly feel this is a disadvantage to the seller because the “Market”- Active Buyers have not had the opportunity to offer their opinion of value. In this case, the buyer’s agent and the seller’s agent got together and the property sold. It then came back on the market 2 weeks later for a price that was about 33% higher – just under million dollars more. It is now being sold another time. That is a lot of money for a seller to leave on the table.

This can be a wild and confusing market. These examples illustrate how- just like you want to choose the best lawyer to represent you on important issues- you really need to have the most intelligent and experienced Real Estate Broker representation to protect your real estate interests.

When you are ready to navigate this market and/or are interested in being one of the first to learn the details of the Rosewood Residences at Lido Beach give me a call 941 587 0740.

If you are anywhere near Sarasota on Sunday, November 14th, I invite you to join me and this incredible panel of local experts as we delve into the diverse forces shaping the real estate market on Longboat Key and Sarasota in general.

Is the real estate market about to go off a cliff, or have we finally reached price parity with some other areas in Florida such as Palm Beach and Naples?
While there are no crystal balls, each of the panelist has their own superpowers:

• Elizabeth Diaz from Williams Parker Law Firm is the guru of estate planning in the State of Florida. She will be joining us to tell us about all the people that are bombarding her with relocations to Florida, and specifically Sarasota.
• Jeff DeJongh with Purmort & Martin is a risk assessment and insurance expert. He’s at the leading edge of understanding how insurance is going to affect our cost of ownership going forward. Are the impacts of hurricanes and other natural disasters affecting insurance costs and are we going to see premiums go way up or stay the same.
• Julia DeCastro, the preeminent expert on the Ultra Luxury buyer. She just spent several years with the Ritz-Carlton Residences in downtown Sarasota and is part of the team for an Ultra Luxury residential project on Lido Key. She has spent more time with the greatest number of ultra-luxury buyers than anyone in the state. Her firsthand insights into what they want and how they are thinking are extremely noteworthy.

This is the opening event for Temple Beth Israel Men’s Club Speaker Series. A traditional buffet of bagels & lox with all the fixings will be featured as well as fruits and cakes. This breakfast and panel discussion will be from 9:30-11am. Please call the TBI office to reserve your space.

Let’s Get Ready to Rumble!

It was just announced recently that tech company Rumble is coming to Longboat Key. For years I’ve wanted to see economic development with higher paying jobs and more diversity in terms of different companies and industries, and finally one has come to our shores. This is an incredible asset for our community.

Now I don’t want to take anything away from all the companies that are growing here organically or companies that have expanded here, but it’s very special that a tech company is making Longboat Key its home. They have promised that they’re going to have 41 jobs in management positions, the average salary is going to be about $170,000 a year. They also have about 124 non-management jobs that are going to average about $80,000 per year in salary. That is about 70% higher than the current average salary here in Sarasota.

Rumble (rumble.com) is a website for content creators that have about 31.9 million unique visitors each month. We expect them to not only grow here, but also attract other tech businesses. And if it’s good for the economy in Sarasota, it’s good for our real estate. Because the real estate market goes the way the economy does, anything that increases our diversification of businesses and raises our salaries is very healthy for our local economy.

Any questions, call Lee @ 941.587.0740.

If you’ve paid as close attention as I do to the Sarasota real estate market, you may have noticed the reappearance of an incredible phenomenon here in Sarasota – the open house. The amount of time that a property has been on the market has gone from maybe minutes or hours to at least a couple of days — allowing a slightly longer window for potential buyers to consider a property. And here on Longboat Key this Sunday, at this gulf front estate at 3475 Gulf of Mexico Drive, there will be just that, an open house!

I don’t know how long this phenomenon may last. The month of September, which is hot and humid, is typically a little quieter real estate-wise. There are still less than a thousand properties for sale currently in the entirety of Sarasota County. With car carriers and early snowbirds now returning, we definitely feel there’s more momentum back in the market as we transition from September to October. In fact, just yesterday a beachfront condo was listed on Lido, and we just received notice that it is the highest and best offer situation with all offers due today at 5 pm.

Our list of clients looking to buy property in Sarasota is robust and growing. Most Sarasota property owners are not transitioning to sellers as many haven’t found a suitable location outside Sarasota — because they like being here.

I can only hypothesize that there MAY be another natural wave of potential sellers when BAYSO the 149 residence condo currently under construction in The Quay in downtown Sarasota — is ready for occupancy in the 2nd half of 2023. I have to qualify this with sharing that we don’t actually know how many of those buying into this new construction project are locals vs how many are first time Sarasota property owners.

Let’s review the numbers for the 3rd quarter of 2021:

• Compared to the 3rd quarter of 2020 sales are down 8.8%. I attribute this to low inventory- there are just not enough of the right choices for the buyers circulating. And homeowners don’t want to become sellers because they don’t know where they could go.
• The luxury market (properties listed for 1M or above) saw an increase of 25% to the same period a year ago.
• The distressed market is negligible. This is because there is a tremendous amount of equity that’s been created in properties, as well as a lot of government programs due to the pandemic.
• 70% of our market is under $500k. This portion has shrunk over time.

Buying or Selling in this market takes a certain finesse. We are committed to providing you with an extraordinary and fully customized level of service to successfully navigate this unique real estate market, please give me a call @ 941.587.0740.

Today I’m on 2nd street, right next to the Selby Library in Downtown Sarasota with the boutique condo The Collection under construction right behind me.

We have a lot of clients who are itching to own in one of the many new construction projects underway or just completed in Downtown Sarasota. It is interesting to listen to the personal drivers for all this demand.

I want to share the top 5 reasons people continue to come to Downtown Sarasota to scoop up pre-construction opportunities:

5. Simplicity

People want to simplify their lives, and one way to do this is to lock in their housing 1-4 years in advance. By doing this they know exactly where they’re going to be in the near future and they’re going to have a place that allows them to have a turnkey experience – easy to turn the key to go in and easy to turn the key to leave.

4. Walkability

Downtown Sarasota continues to add more and more roundabouts and improve its crosswalk and pedestrian experience. Simultaneously shops, boutiques, restaurants, cafes, and bars continue to raise the bar on their level of quality and service. As such, the offerings to consumers continue to improve. This brings more vitality to Downtown Sarasota and a richer experience for all of us.

3. Concierge Services

People buying luxury condos want a full-service experience and this includes a 24 hour/7 days a week concierge. Epoch, which recently opened, was given feedback early-on in the process that this is what people wanted. And the developer pivoted and added this amenity so that people could have it and it accelerated the buying process.

2. Financial Gain

Everybody wants to have financial gains. And over the past couple of years buying pre-construction has offered a discount to what the actual market value has been on closing day. This proved out recently when somebody had to sell their Ritz-Carlton unit and they received a 35% gain over their pre-construction purchase price.

1. Shiny and New

It’s hard to resist things that are brand new. What we’re seeing with buyers in our market is that condominiums that are about 5 or 6 years old already feel a little dated – the design is a little behind the times in today’s HDTV-centric world. Why not buy the latest and greatest design features, smart automation, and technology and then you can have it all?

If you have an interest in getting a comprehensive education about the new construction projects in Downtown Sarasota, please give me a call @ 941.587.0740.

We are currently receiving more inquiries on our website on this topic than any other, so I want to highlight some of the specific benefits to calling Florida your primary residence.

But first, I would be remiss if I didn’t touch on our Sarasota real estate market here in mid-August:

• The market is still highly active with the best properties still being purchased in days.
• There is not quite the frenzy that there was 2-3 months ago. However, I would not say that our market has “slowed-down.” There is still a tremendous amount of activity.

Florida Taxes and Their Implications

While taxes are not the most exciting topic, having your primary residence in Florida could save you a lot of money. I have been advised to let you know that I am not a tax expert- please consult with an expert that is familiar with your situation. I provide the names for two outstanding local professionals below should you need a recommendation.

TOP 6 Florida Tax Facts:

1. There is no state income, estate, or gift tax in Florida.
2. Homestead exemption, which is available on your primary residence, reduces your assessed property values up to $50,000. It also limits annual increases (of your assessed value) to 3% or less.
3. If you sell your primary residence (where you have lived for 2 of the last 5 years); there is a $250,000 exclusion of the gain if single or MFS (married filing separately) and $500,000 exclusion of the gain if MFT (married filing together). There are exceptions and special situations so consult your CPA.
4. Rental Income is taxed at ordinary income rates. There are also exceptions.
5. Capital Gains rates depend on your income bracket. The highest rate is 20% and the lowest rate is either 0% or 15%. For a select few there is NIIT (Net Investment Income Tax).

Read more about the benefits of being a “Snow Bird:” Sarasota’s Most Populous Bird Brings Millions to the Economy.

2020 Long-Term Capital Gains Tax Rates

Living in Sarasota continues to be beautiful, vibrant and can save you a lot of money. For great advice in these topics, you can reach out to Liz Cottom, a board-certified wills, trust, and estate attorney at Williams Parker, and Shelly Parmet-Evans, a CPA at Piper Hawkins.

We are here to expertly guide you on your real estate needs when you are ready. Feel free to give us a call @ 941.587.0740.

Today I’m standing at a horse jump course as I feel it is an apt visual for buyers and sellers in our Sarasota real estate market. It is critical to determine your personal threshold for how high you want to go when buying or selling your property here in Sarasota.

The financial markets are very turbulent, the world is turbulent, and each month I work very hard to provide the statistics, anecdotes, and data to help all of us understand both Sarasota proper and Sarasota’s real estate market. Two of the most interesting data points that I’ve seen over the last couple of days that I feel are highly relevant to our long term forecast:

1. $35 to $60 TRILLION dollars is going to pass intergenerationally. A lot of that money needs to be invested, and Sarasota is right for that lifestyle real estate investment, which I think is going to be positive for our market.
2. Two non-stop flights have recently been added to our SRQ Airport. One is Austin, Texas which is a tremendous innovative tech community. This route is going to bring people from inland Texas to our beaches. The second is Denver, Colorado. There’s now a non-stop from the beaches of Siesta Key and Longboat Key to the mountains of Colorado for those who love to play in both!

Q2 Sarasota Sales Numbers: Luxury Segment Leaps Ahead

The second quarter of 2021 (April, May, and June) has been very interesting as we typically compare it to a year earlier. It’s really not very fair to compare it to a year ago because sales were way down then due to the global shutdown. In fact, they were at the lowest point since 2011. But it does give you a sense of the about-face we experienced as people evaluated their priorities and thus their real estate needs.

Overall sales were up 75%, but what’s more interesting to me is that the luxury market (those properties that are selling for $1M or more) – was up 260%!! This is now 10% of the total market in Sarasota. Just a couple of years ago it was just 3%. The average sale in the luxury market is now about $2.27 million – up 20% from the same period a year ago.

While new inventory is constantly being added to the market, we’re also seeing that the buyer demand is actually still increasing. Anecdotally, we’ve received calls even just this week from new buyers entering the market. More and more buyers want to be here as they are following their friends and family. This is actually quite normal- most especially in these turbulent times. People want to be close to the people that they know, like, and love.

All of these factors are going to contribute to increased demand in Sarasota. This is going to raise prices and is also going to put demands on making sure that Sarasota’s government and institutions deliver a better quality of life here — which is good for all of us.

For more information or to chart your personal course, feel free to give me a call @ 941.587.0740.

This month we are filming from the southern tip of Lido Key, where behind me are the kayak and paddleboard trails in and around the mangrove tunnels.

So as more new buyers come to our community, and many more people try to make Sarasota home, there is a question out there — is Sarasota “Paradise Found” or is our market “Fools Gold”?

The first question is of course a personal one, how do you define Paradise? If your definition is snow — capped mountains, redwood forests, or volcanoes, or you prefer man made marvels such as the Eifel Tower, Statue of Liberty, Golden Gate Bridge, then of course Sarasota is not for you.

Yet when a client who really wants to be here asked me last week if he is crazy for paying 15% more than the asking price, my response was a resounding NO.

So why is this? Why did I say no? And why do we anchor on a listing price? A listing price is merely a starting point or opening bid — like at an auction. The value can go up or down depending on the interest in the item or property. In fact, this week on Siesta Key a property that had been listed for $5,975,000 closed for $6,600,000. We should focus our attention on the selling price. And then compare that to other selling prices.

Which brings me to Fools Gold. Was it this buyer on Siesta Key? Or was it fifteen years ago in another tremendous Seller market, when a couple purchased a waterfront property on Longboat Key and just four years later our clients purchased the same property for 53 cents on the dollar?

💡 Pro Tip
Today’s Sellers market is distinctly different because most people are paying with their own money not taking out loans

Because of these experiences, I tend to be more conservative in valuing the market. However, I do not set the market. Yes, it is possible that something unforeseen could change market demand or pricing such as another pandemic or some other 100-year event. And yes, you could wait another 4 to 10 years to see if there will be a downward repricing of the market, but to what end?

Alternatively, one can just go on with life. 15 years ago we had a client who “overpaid” for a downtown Sarasota property compared to what it had been priced at 1-2 years earlier. But he really wanted the property and the lifestyle — so he bought it and thoroughly loved his time there. Sadly, he was diagnosed with a grave illness and passed away. Just before he did, we sold his property for more than he paid and he moved back to be with family in his last days.

The important thing to understand is… what is your paradise? Is it a community that celebrates the beaches, the water, the arts, its people? Does that bring you JOY? Or are you better off going somewhere else? Or Settling? Perhaps getting a better deal? Or waiting? Or could that be Fools Gold?

My point is that if Sarasota is your Paradise Found; if the beaches, arts, people and community bring you joy, then start living here… because buying somewhere else or settling for the status quo may be your version of Fools Gold.

Greetings from the Quay’s central park located in the Quay waterfront district. The Sarasota Quay is a 14-acre development in the heart of downtown on Sarasota Bay. This district is going to have upscale shopping, gourmet dining, multiple luxury residences, along with hotel and office space.

Right behind me is the now completed 73-unit Ritz-Carlton managed residences. Just east of that is the Bayso also developed by Kolter, where they just broke ground this week and will add 149 units. The next project to break ground is a Lennar project on the east side of the property, and that’s going to be about 240 multi-family units in a 12-story building.

Sarasota Real Estate: Your Up-to-the-Minute Update

Sarasota’s real estate market is as active as ever and I encourage everyone to be extremely well prepared as they enter this real estate market — whether as a buyer or a seller.
What’s contributing to the continued demand and market frenzy?

• Interest rates are still very, very low; they’re hovering just above 3%.
• The stock market continues to perform extremely well. Year-to-date in 2021 the market has been up about 12%. It was up 17% in 2020 (about 29% in the last 16+ months). I want to contrast that to a property that sold recently on Boyce Street in the West of Trail neighborhood. From 2017 when it was newly built to when it resold in 2021, the appreciation was about 17%. There’s a lot of money working in the stock market. Sarasota buyers are able to take large gains, and no matter what the appreciation has been here in Sarasota, their stock market profits are well beyond that, allowing them to buy Sarasota real estate with their large profits and still have profit leftover.
• The other big driver here in Sarasota is that there is NO state income tax, NOR any state-assessed taxes on estates or inheritance.

With all this market demand properties are going very, very quickly — yet every day dozens and dozens of properties are coming onto the market.

I want to give you a few words of caution to be a savvy buyer in this market:

1. It is more critical than ever to have the best representation, to know what you’re looking for, and be prepared and ready to act. The precise property that you are focused on getting doesn’t come on the market very often. You really need to act when it does because it might be a long time before it or something similar comes on the market again. And be aware that right now it’s going to be a little bit more competitive.
2. Look out for properties that don’t feel right in terms of value. Here’s an example: there’s a property on Brywill Circle near the Ringling Museum that was last on the market for $1,985,000 in January of 2021. Three months later, after it had not sold for several months, it’s back on the market for $3.2M. That’s not a good value.
3. Be careful of flippers. There are a lot of people that are adding paint to a house and then escalating those prices from the end of 2020 to now by 30-40%. Also not a good value.

The market is active, but it’s not super crazy. The longest property on the market right now has been on the market for over 1800 days- that’s nearly five years! It’s at the Beach Residences managed by the Ritz-Carlton on Lido Beach. Yes, most things are selling in days, weeks, or in a couple of months, but not everything is. There is plenty of opportunity here on the ground in Sarasota. And when you’re ready to act — be it as a seller or buyer — we’ll be with you every step of the way. I encourage you to call me @ 941 587 0740 with any questions.