New construction continues to be a popular choice in Southwest Florida, and while the first quarter of 2019 experienced a slowing of new home starts, the overall growth of this category remains on a stable upward trajectory.
And what’s not to love? Depending on the neighborhood and builder, buyers are able to customize nearly everything to suit their lifestyle and today’s design trends – from floorplan to finishes. Additionally, advances in engineering have made homes more efficient and safe, ensuring buyers need only move-in and enjoy their new abode. For condominium seekers, buildings are seemingly in an amenities arms race, promising prospective residents the perfect balance of wellness and low-maintenance living through state-of-the-art fitness centers and spaces for recharging, playing with and grooming your pup, and getting down to business.
Beyond the bells and whistles, here’s our Q2 breakdown of the lastest in new, so that you’re able to stay current on what’s in the market, how fast product is moving and some important numbers that may help in your residential purchase journey now or in the future.
New Homes Starts
As the industry monitor of “housing starts” (a key indicator of new construction in markets), Metrostudy is a great resource for getting a general gauge on the confidence in the market. As reported in its 2Q19 Executive Summary for the Sarasota/Bradenton area (including Charlotte County):
Quarterly Starts Rate:
Increased 28% over Q1 2019
Remained FLAT to Q2 2018
Annual Starts Pace:
Remained FLAT to Q1 2019
Increased 5% over Q2 2018
Reflects single-family detached and single-family attached homes
“The current annual starts pace has been the same for the past three quarters, and this level of activity is the highest since the fourth quarter of 2006. The current starts pace is 130% of the 18-year average, but only 67% of the peak which occurred in the third quarter of 2005” – Metrostudy
Inventory & Closed Sales
Inclusive of the condominium market, TrendGraphix reports that new construction inventory and closed sales for Sarasota, Manatee and Charlotte County are up, with inventory 15.5% higher and closed sales 25% higher than the second quarter of 2018. With more new construction expected to close in the fall, specifically in Sarasota’s condominium market, Q3 closing numbers are anticipated to be equally as strong. Months of supply (MOS) is up 10% over the first half of 2018 – with an average of 5.5 MOS (Sarasota – 4.7 MOS; Manatee – 3.25 MOS; Charlotte – 6.75 MOS)
Isolating single-family attached and detached homes, Metrostudy reports:
Increased 24% from Q1 2019
Increased 2% from Q2 2018
Remained flat to Q1 2019
Increased 11% from Q2 2018
Months of Supply:
Charlotte County – 0.5 months
Manatee County – 1.1 months
Sarasota County – 1.2 months
Metrostudy has observed over the years that when the MOS number rises to over 3.0 MOS in the single-family category and stays there, builders tend to reduce prices or make concessions.
Notable Updates on Local New Construction
What’s going on with some of the new construction in the area? We touched base with Michael Saunders & Company New Homes & Condominiums Director, Nancy Arbuckle to get the lastest.
Set for occupancy late fall 2019, Mark Sarasota surrounds you with all the world-class attractions Sarasota, Florida has to offer – from beaches and boating to arts and culture.
What’s Been In the News?
Following a momentous groundbreaking last Fall, the Ritz-Carlton Residences, Sarasota construction is underway. Currently, the building is 60% sold with high levels of interest from both local and out-of-town buyers familiar with the brand’s “white-glove” service and attention to detail.
What’s Been In the News?
Now open, Sandhill Lake has had several major announcements from preeminent luxury home builders Heritage Builders. Among them are the new Residents’ Club at the heart of the community and a new floorplan, the Hibiscus.
Overlooking Sarasota Bay, in the heart of downtown’s new walkable waterfront cultural district, Auteur luxury condominium homes feature expansive interiors with continuous walls of glass creating panoramic bay views from every residence. The sales center is currently taking reservations and has received a strong market acceptance with prospective buyers appreciating the larger floorplans and expansive views.
Auteur is extremely active on Instagram, posting new updates on building features and progress throughout the week. Follow them for updates – @auteursarasota.
What’s Been In the News?
Palma Sola Bay Club is a luxury condominium community located near Anna Maria Island. Described as condominiums that feel like single-family homes, these move-in ready residences are available with a variety of views of tropical greenery or pristine waterfront. Currently, buildings 3, 8, and 18 are under construction.
Conveniently located between the downtown delights of Sarasota and beautiful beaches of Venice, this brand new bayfront community consists of spacious 3-bedroom condominiums and a host of amenities. The second building was completed last spring.
Stay tuned for our next new construction market update in December to check in on progress, demand and sales.
If you liked this blog, you may also enjoy: