In today’s video, I am standing in one of Sarasota’s parks. There are more than 150 local parks in our community, which is almost three times more than the number of National Parks in the United States. This is just another reason why Sarasota so consistently garners national and international applause for its quality of life, most recently being named a “Dream Town” by Coastal Living magazine.
Sarasota’s High Season and High Life
Indeed, Sarasota’s highly regarded lifestyle and “dream town” qualities feed the Sarasota real estate market, and in particular the luxury real estate market. As we reach the middle of our high season – February through April – we see our hotels, beaches and restaurants are at their fullest, with people coming to enjoy that lifestyle, and of course, the splendid weather.
There is a long-standing perception that the high season also brings more real estate activity. But is this true in reality? I am trying to answer this question for the sellers and buyers I work with in the high-end luxury market (properties over $3M).
In this segment, there are currently about 140 properties for sale. During the past 12 months we have averaged about 4 sales each month. This means there is close to three years of inventory in this segment. It makes this segment one of the most opportunity-rich for buyers.
How the Sarasota Luxury Market Behaves
Here are a few observations which define how this part of the market performs regardless of season:
- Buyers in this segment do not need the property but sellers may need to sell the property
- Buyers are looking for value in their purchase
- Buyers prefer new construction and are willing to pay a premium
- Some of the pricing is indiscriminate.
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The Luxury Market Performs Solidly All Year
When I looked at month-to-month sales in this segment of the market, they are actually spread throughout the year. Despite perception, during the last 12 months the highest month for closings was September, the month when many places close because it is low season.
So while there may be more activity (e.g. showings) in the busy high season months, I am not seeing a real correlation in an increase in sales. Savvy Sarasota investors take their time and buy throughout the year it seems.
Savvy Sarasota Luxury Buyers Don’t Buy in Haste
Unlike the equities markets where there is an investment in future potential, luxury real estate buyers and sellers have to agree on a price that makes sense in the present market. And buyers looking for value and specific features or lifestyle are prepared to wait it out until the price and the property is right. This means in the luxury market properties can sit – sometimes for years – if they don’t tick all the boxes.
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