High Demand, Low Supply Fuels Rising Home Prices In Region

SARASOTA COUNTY, FL — Record-low inventory brings record-high prices in the Sarasota and Manatee housing market.

May saw an increase in sales over the same time last year, with single-family homes closing within a median of just six days, according to data from Florida Realtors and compiled by the Realtor Association of Sarasota and Manatee (RASM). Buyers should be prepared to move quickly to snag their dream home this summer, RASM said in a news release.

Realtors in Sarasota and Manatee counties represented a total of 2,584 closed sales in May, a nearly 85 percent increase from the same month last year, and 100 percent of properties closing at or above the original list price, RASM said.

In Manatee County, single-family sales increased by about 66 percent to 739 sales, and condo sales increased by nearly 113 percent to 319 sales. Meanwhile, Sarasota County’s single-family sales increased by about 75 percent to 985 sales, and condo sales increased by nearly 124 percent to 541 sales, RASM said.

“The numbers continue to demonstrate that we're in a historically strong seller's market. However, the current sales growth won't last forever. Owners waiting for top dollar may be disappointed when the number of properties available for sale eventually start to rise. With more options available, buyers will be less willing to meet a sellers' terms,” Alex Krumm, RASM president and broker-owner of NextHome Excellence, said.

With increased buyer demand, it is more likely to see a rise in cash sales, especially when cash offers are typically the winning bid in multiple offer situations, RASM said. Condo cash sales increased by 250 percent in Manatee County and by nearly 153 percent in Sarasota. For single-family homes, cash sales increased by nearly 169 percent in Manatee and by 154 percent in Sarasota.

Prices are rising in the two-county area because supply remains limited. The Sarasota County median sales price for single-family homes reached a new record with a median price of $407,000 in May, a nearly 37 percent increase from last year. As for Manatee County, the median price for single-family homes was $400,000 in May, a year-over-year increase of about 23 percent.

In the condo market, Sarasota condos reported a median sales price of $312,500 and Manatee reported a median price of $243,595.

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“Regardless of the recent price surge, Florida real estate remains on par or less expensive than the markets from which people are moving — giving those buyers the flexibility to pay more for a home while remaining relatively inexpensive compared to their previous place of residence,” Krumm said. “The last 10 years have proven — and decisively so — that real estate is one of the best investments in the world. Even buyers who bought at the highest point before the Great Recession have been made whole again, and in most cases are turning in a profit.”

The inventory of all property types actively for sale in the two counties decreased by nearly 75 percent, amounting to 4,755 fewer properties for sale than there were in May 2020, RASM said. Newly listed homes totaled between the two counties grew year-over-year by about 27 percent for single-family homes and by about 22 percent for condos.

The month’s supply of inventory — the estimated number of months it will take to deplete the current inventory — stayed below one month in May, RASM said. The month’s supply for single-family homes decreased by about 78 percent to .7 months in Sarasota and decreased by 80 percent to .6 months in Manatee. Condo inventory decreased by about 84 percent to a .7-month supply in Sarasota and dropped by about 86 percent to .6 months in Manatee County.

Homes are selling quickly, as indicated by the median time from listing date to contract date. In the North Port-Sarasota-Bradenton MSA, the median time to contract was only six days for single-family homes, 29 days faster than this time last year. Condos went under contract in a median of 9 days, 34 days faster than the same month last year, RASM said.

The total number of pending sales across the two-county market increased year-over-year by about 12 percent. For single-family homes, pending sales decreased by .7 percent in Manatee and increased by about 8 percent in Sarasota. In the condo market, pending sales increased by nearly 43 percent in Sarasota, and by nearly 19 percent in Manatee.