The Sarasota Real Estate Market managed to continue its growth pattern. July data exhibited that demand remains strong for the region and it appears that the healthy conditions should allow for sustained growth in the months to come.

While many expect our summer selling season to be softer when compared to the peak tourist/part-time resident months, July closed sales are typically active, this year topping sales in the October 2016 thru February 2017 months. Properties that went under contract in July 2017 exceeded those of July 2016 by approximately 4 percent, so expectations are that the moderate sales growth over prior year will continue in the Sarasota Real Estate Market.

Inventory once again remained in the 4.5-month supply range, well enough below what economists view as a healthy balance of 6-month’s supply, so we are left with conditions that will continue to keep upward pressure on prices. Despite a steady flow of new listings in July, both single-family and condominium units for sale grew at their slowest pace for the year and just barely replaced sold inventory for the month.

Median price growth in the Sarasota Real Estate Market is considered “sustainable” by market experts. Though prices have fluctuated month-to-month, escalation year-over-year has been moderate and appears to be at a pace that reflects soundness in the housing market here.

The “affordable” tier of our regional market still shows few signs of easing inventory scarcity, making it difficult for our young families and workforce to achieve homeownership. With new homes coming to market generally priced more than 30 percent above existing homes, it doesn’t appear these conditions will improve in the short-term.

At the other end of the Sarasota Real Estate Market where most of my business is done, above $1 million, new listings fell just short of sales for the month, though still leaving us with a fair inventory of luxury properties for sale. I am aware of a number of prospective existing home and condominium owners contemplating bringing their luxury properties to market this fall. As a result, expect to see supply expand in the next few months, creating some competition for inventory that has been on the market for a while.

July sales of luxury properties in the Sarasota Real Estate Market grew considerably over 2016—well in excess of 80 percent, but it is also important to note that total number of $1 million and above units sold last month was only 50. There are currently 571 $1 million-plus properties for sale in the Sarasota Real Estate Market. The Sarasota media helps us celebrate when one of these prized properties changes hands by featuring them in their publications and broadcasts, but showing you this variance between inventory and number of sales highlights just how exceptional—and rare—each one of these transactions is.

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