If you are wondering how the real estate market is doing along Florida’s Gulf Coast, we are bringing you a look at all the big picture trends from the second quarter of 2017. Breaking it down for us and comparing the current market to that of our first quarter market report, Drayton Saunders, President of Michael Saunders & Company, reveals all the details in the below video. Then, read on for key takeaways by county, a luxury sales spotlight, and what we can expect for the rest of 2017.
For a comprehensive review of the market, click for PDF.
A Look at the Numbers
Inventory is up | New listings, only slightly
There are a plethora of active listings in the market – but looking at the six month average, not as many new listings to hit the market. Those searching for a home right now have inventory to choose from, but possibly not the right inventory to hit their wish list. Buyers need to move quickly if they find the property they like that has the right price, location or type of home. They should expect multiple offer situations for the highly sought after properties. Sellers with a less than optimal location or product will need to price aggressively to find the right buyer.
Pricing is critical
Price reductions have had a crucial role in pending sales which were up 4% overall. In the upper end, we saw pending sales jump 20% overall year over year and a staggering 97% rise this June compared to last June. Price reductions in this category pushed buyers to make offers.
Median sale price
Median sale price has risen nearly 7% but that number is a blend of resale and new construction. New construction is prevalent across the region and is sold at a higher average price than resale. Note that in the luxury space (see “A Look at Luxury” below), median sale price is down nearly 8%.
Days on market
Average days on market inched up for the year – however it will be interesting to watch this statistic based on lack of new inventory to hit the market and the large pending sale month in the upper end for June (see “A Look at Luxury” below). Bottom line – if it’s priced right you will get showings and possible offers. Those that are not priced right will linger on the market longer unless you upgrade the product or reduce the price.
A Look at the Numbers by County
A Look at Luxury
- 3-county wide, total inventory is up (11%)– yet new listings are off pace from last year, with it being negative 3% in Manatee County, flat in Sarasota, and negative 1% in Charlotte County.
- Pending sales are up 4% overall – with the biggest jump coming from Sarasota County at a 7% increase. This would indicate a strong buyer pool and buyer interest.
- Most notably, in the upper end, pending sales jumped 20% overall year over year – and a staggering 97% jump this June vs. last June for luxury pending sales. Those with aggressive pricing strategies have benefited the most.
- Pricing “gaps” were prevalent this year, with data showing us through end of June that price improvements were necessary to get the sale done – and even then you still had significant negotiating happening – making it a buyer’s market overall.
- In all price points: Average days on market went up slightly overall (3.3%) – but most dramatically in Sarasota which was up 6.58% – but down in Manatee County 5.26%. In luxury properties, the average days on market increased 7% overall – but most dramatically in Manatee county at 17.89%. Patience was important as the market was showing what it would bear with pricing and inventory.
What to expect in 2017
Our feeder markets (future buyers in our region who are coming from the Midwest and Northeast) are in their selling season. On the national level, buyer traffic is very strong overall with a constrained listing market. On the whole, it’s a seller’s market bringing benchmark prices to those who list their homes. Those sellers will bring optimistic attitudes as they arrive in season and search for Manatee, Charlotte and Sarasota real estate.
While all of this information is useful as a region, we know market trends are even more “local” when you narrow down to an area, neighborhood, and by price point. We encourage you to reach out to one of our experienced Realtors to gain more information about your specific situation.