Graphic courtesy SarasotasFinestProperties.com

Following several months of what seemed like a softening of demand from luxury buyers, the upturn in The Sarasota Real Estate Market since the start of 2023 has been tangible. A volatility in financial markets affected the urgency with which buyers felt the need to move, with many potential buyers of high-end properties hitting the pause button. However, since the start of the year buyer activity has grown markedly.

Buyers are still very much engaged and patiently waiting for my call with newly listed properties that check their boxes. Most of these clients will have all-cash transactions and are ready and able to make a quick decision and want swift closing times. And, though the number of multiple offers for best properties have lessened some, there is still competition when great homes come to market. I still advise my clients when they ask what I would recommend they offer, “What price would you not lose sleep over if you lost the property to a higher bidder?”

Fortunately, sellers are also beginning to ease back into The Sarasota Real Estate Market. As you will see in the chart, monthly listings have grown since early fall, and based on my prospective seller discussions and conversations with my peers who serve the upper-tier markets, it appears we will see steady new listing activity in the months ahead.

A balanced market is when available homes and condos for sale is estimated to be a 6-month supply, which we have not seen on a sustained basis since 2011. Continued tight inventory and strong buyer demand will keep monthly price increases or decreases modest.

Home price appreciation has moderated, so pricing a property has become a bit more complex than during their pandemic period of sharp price escalation. Because the luxury market tier is typically under 200 units sold per month, prices do fluctuate more due to the occasional ultra-luxury sale, or the opening of a new luxury condominium project where many closings occur in a single month.

During COVID homeowners saw their housing perspectives shift, generating buyers who are looking for a stronger emotional connection when purchasing a new property. A new alignment of priorities driven by lifestyle and family has emerged, and with remote work policies many more options to choose from. Especially in the luxury marketplace, buyers are more conscious of WHERE they live and WHY they live there.

Luxury buyers of new homes and condominiums are prepared to pay the premium for amenity and technology rich homes and communities…and location. The global (and local) success of hotel branded residences is a great example of upper tier demand. Research has shown that buyers are paying on average 30% more for this new genre luxury lifestyle.

Multiple Ritz Carlton branded buildings in Sarasota are already fully occupied and another is in pre-sale phase, The St. Regis Residences is expected to be complete by year-end, and a new Rosewood property is soon to be built. As well, the construction of extraordinary new homes along Sarasota’s waterfront cannot be missed. I expect the many seeking Sarasota’s unique way of life will boost our luxury market sales activity over the next few years.

Economists are calling for a slight year-over-year decline in total housing sales this year, followed by a 3-5% increase over the next four years. They believe that pace will allow the national housing market to enter a more balanced position. With so many potential buyers either priced out of the market or unable to find a property that meets their needs, a more balanced market will bring sustainability for years to come.

Michael Moulton is a certified residential specialist broker-associate with Michael Saunders and Company.

Graphic courtesy SarasotasFinestProperties.com

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