2024 Sarasota and Manatee Real Estate Market Analysis
The 2024 Real Estate market in Sarasota and Manatee counties is witnessing significant transformations. These changes are influenced by various economic factors and shifting buyer and seller behaviors. This detailed analysis, based on the latest data from Florida RealtorsĀ®, explores the key trends observed in the first quarter of 2024 and their implications for the future. Read this post if you are wondering if it’s a good time to sell your house or buy a house.
Table of Contents
Key Trends in the First Quarter of 2024
Increased Inventory
One of the most notable changes in the Sarasota and Manatee real estate markets is the substantial increase in inventory levels. Compared to the first quarter of 2023, there has been a 64.6% rise in available single-family homes and a remarkable 90.9% increase in townhomes and condos. This surge in listings is shifting market dynamics significantly.
Extended Time on Market
Properties in these counties are now taking longer to sell. The median time to contract has increased to an average of 43 days for single-family homes and condos in Sarasota County and 51 days in Manatee County during the first quarter of 2024. This extended time on market indicates a more deliberate buying process and possibly a more cautious approach from buyers.
Price Adjustments
Price trends have also seen adjustments. The median sales price for single-family homes has decreased slightly by 0.6%, while townhouses and condos have seen a more significant drop of 6.1% across Sarasota and Manatee counties compared to the previous year. These price changes suggest a market that is becoming more favorable for buyers, who now have more negotiating power.
High Cash Sales
An interesting trend in the first quarter of 2024 is the increase in cash sales, which rose by 5.9% for both single-family homes and condo transactions across Sarasota and Manatee counties. This indicates a substantial portion of the market comprising buyers who can bypass traditional financing routes, often giving them a competitive edge over those reliant on mortgages.
These trends suggest a transition towards a buyer’s market, where increased supply and adjusted prices provide more opportunities for negotiation. However, the prevalence of cash sales continues to influence market dynamics, potentially disadvantaging first-time homebuyers and those dependent on financing.
Inventory Surge
In March 2024, the inventory levels for both single-family homes and condos more than doubled compared to March 2023. Specifically, Sarasota County saw a 76.6% increase in single-family home listings, reaching 3,374, and a 100.3% increase in condo listings, totaling 2,153. Manatee County experienced a 51.3% rise in single-family home inventory, bringing it to 2,581, and a 78.9% increase in condo listings, amounting to 1,519.
Months Supply of Inventory
The months supply of inventory (MSI), a crucial indicator of market balance, also showed significant increases. For single-family homes, the MSI reached 5.3 months in Sarasota County and 4.1 months in Manatee County. For townhomes and condos, the MSI rose to 6.8 months in Sarasota County and 6.4 months in Manatee County. According to Florida RealtorsĀ®, a balanced market is characterized by an MSI of around 5.5 months, indicating that Sarasota’s single-family home market has entered a balanced state, while other segments are approaching it.
Time to Contract
The median time to contract, another key metric, has seen substantial increases. In Sarasota County, the median time for single-family homes is now 40 days, a 60% year-over-year increase, and 51 days for condos, a dramatic 183.3% rise. In Manatee County, the median time to contract for single-family homes increased by 10.9% to 51 days, while for townhomes and condos, it surged by 134.8% to 54 days. These figures underscore a slowing market where properties are taking longer to sell.
Sales Prices
The median sales prices also reflect changing market conditions. In Sarasota County, the median price for single-family homes decreased by 2.5% to $515,000, while the median price for townhomes and condos dropped by 8.9% to $385,775. In Manatee County, single-family home prices saw a slight increase of 1.4% to $498,805, whereas condo prices decreased by 2.8% to $342,988. These adjustments indicate a correction in the market, with prices stabilizing or slightly declining after previous periods of rapid growth.
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Cash Sales
The proportion of cash sales remains high, highlighting a market segment dominated by buyers with substantial capital. In Sarasota County, 44.5% of single-family home sales and 70.3% of townhome and condo sales were completed in cash. Manatee County reported 33.4% of single-family home sales and 51.8% of townhome and condo sales paid in cash. This trend emphasizes the competitive nature of the market, where cash buyers often have an advantage.
Closed Sales
The total number of closed sales has seen a decline. For single-family homes, there were 1,453 closed sales in Sarasota and Manatee counties combined, representing an 8.2% decrease from the same period last year. Closed sales for condos decreased by less than one percent to 686 sales. This drop in closed transactions further highlights the market’s shift towards a more cautious and competitive environment.
Implications for Buyers and Sellers
The current trends in Sarasota and Manatee counties’ real estate markets offer distinct opportunities and challenges for both buyers and sellers.
For Buyers:
- Increased Inventory: With more properties available, buyers have a wider selection to choose from. This increased supply also enhances their negotiating power, allowing for better deals and more favorable terms.
- Longer Time on Market: Properties taking longer to sell means buyers can avoid rushing their decisions. They have more time to conduct thorough inspections and consider their options.
- Price Adjustments: The slight decrease in median sales prices can be beneficial for buyers, especially those who were previously priced out of the market.
For Sellers:
- Competitive Market: Sellers need to be more strategic in their approach. Pricing properties competitively and ensuring they are in top condition can help attract buyers in a market with increased inventory.
- Longer Selling Period: With properties taking longer to sell, sellers must be patient and prepared for extended marketing periods.
- Impact of Cash Sales: Sellers should consider the advantages of cash offers, which often result in quicker and more straightforward transactions.
Looking Ahead
As we move further into 2024, it is essential for both buyers and sellers to stay informed about the ongoing trends in the Sarasota and Manatee real estate markets. The increase in inventory, extended time on market, price adjustments, and high cash sales are all indicators of a market in transition.
For buyers, this period presents an excellent opportunity to explore a broader range of options and potentially secure better deals. For sellers, it necessitates a more strategic approach, focusing on competitive pricing and property condition to attract buyers in a more discerning market.
Overall, the real estate market in Sarasota and Manatee counties is evolving towards a more balanced state, where neither buyers nor sellers have a distinct advantage. This shift requires all parties to be well-informed and adaptable, ensuring they can make the most of the current market conditions.
Increased inventory, extended time on market, price adjustments, and a high rate of cash sales are key trends that will influence the market dynamics throughout the year. By staying informed and strategic, both buyers and sellers can navigate this real estate market effectively, making the most of the opportunities it presents.
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Get In Touch
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Tetyana Hanna, Lakewood Ranch - Sarasota Real Estate Agent
Keller Williams Realty Select
#SL3524256 - Email: tetyana.soldit@gmail.com
- Phone: 970-765-5107
- Address: 8210 Lakewood Ranch Blvd, Lakewood Ranch, FL 34202