While it is not always easy to know how to time the real estate market for a sale, there are some key indicators that listing now may be a good choice.
There have been a lot of articles talking about appreciation from year to year in the Sarasota property market. While the growth and development we see locally is going to continue, the rate of appreciation is going to slow down. I believe the amount a Seller will get for their property will not be that much higher (if at all) in 2019/2020 compared to selling prices in 2018/2019.
Life Transitions that Drive the Desire to Sell
Our experience working with home Sellers has taught us the 3 primary life transitions that drive the decision to sell:
- Shifting from Secondary to Primary residence. After owning a secondary/part-time residence in Sarasota, this Seller chooses to make Sarasota their primary home and therefore is looking to upsize – enabling more spacious day-to-day living and the ability to have family and guests visit comfortably.
- Seeking a Different Lifestyle Experience. After experiencing a specific location within Sarasota for a period of time, this Seller wants a different lifestyle. A common scenario is moving from one of our barrier islands to a new downtown Sarasota condominium. This is a change in location but typically a lateral move in terms of space.
- Transitioning to Assisted Living or to have Closer Support Systems. At a certain stage Sellers choose to move from their current residence to an assisted living facility – or move away entirely to be closer to family up north. This is usually for health and social reasons.
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Dynamics that May Shift Sarasota Away From Seller’s Market
Whatever the driving force behind the decision to sell, it is never easy to time the market relative to what is going on in our personal lives. However, if you are in the midst of a change, here are two key indices as to why I believe that now (meaning this fall/winter/spring of 2018/2019) is a good time to sell:
(1) Stock Market
While the stock market is strong and may stay that way for the rest of the retail season and through the Q1 of 2019, I don’t feel it will continue much beyond that. When the stock market dipped during the 1st quarter of this year, it took a lot of people out of the real estate market. A volatile financial market shakes consumer confidence, makes people feel poorer, and real estate purchases typically are postponed.
(2) Construction
We have just completed the first wave of new construction in and around downtown Sarasota. The second wave will be completed in 12-24 months. Two things will happen when the next batch of inventory is ready:
- There is already a steady and consistent movement away from pre-owned residences into new or dramatically improved inventory. The availability of more new buildings will accelerate this process.
- When this next set of buyers transition to their new their properties, they list their former residences, creating fresh inventory and therefore increasing competition.
There are many other indices at play, but these are the primary reasons why I believe the strong sellers market will fade.
Life’s transitions are inevitably full of emotional stress and anxiety. The real estate process doesn’t have to be. While you focus on making the right choices for your needs, our real estate brokerage is here to steward all aspects of the changes in real estate to ensure the most elegant transition for you and your family.
Call Lee with any questions @ 941.587.0740
