Increased inventory levels offer greater options for Sarasota homebuyers | Home Front

Make no mistake: Florida is still the top relocation destination in the nation for personal moves. Additionally, companies that are often in search of a skilled labor force and more attractive tax options are also choosing Florida. According to fDi Markets, from 2019-23, Florida ranked second in the nation behind only Texas for the most companies relocating to the state.

With the frenzied levels of residential real estate sales slowly reverting to pre-pandemic levels over the last year, this then affects inventory levels. Certain pockets of Florida are seeing higher inventory levels than others, including the metropolitan Sarasota region.

Let’s compare data from Florida Realtors for Sarasota County from May 2019 and May 2024. Both have comparable inventory levels for single family homes (4.5 months and 5 months, respectively) and a similar median percent of the original list price received (94.5% to 94.2%). For condos and townhomes, inventory is slightly higher than single family homes, with 6.3 months’ inventory (compared to 5.7 months for May 2019).

One surprising area when comparing data from these two months was just how much median sales prices had increased in that four-year time period. The data shows home prices have nearly doubled, with single family prices going from $305,305 to $530,000 while condos/townhomes had a substantial increase from $238,000 to $368,000. That’s amazing news if you bought a home or condo in the last four years!

The Sarasota-Manatee region still has a great deal of interest as well as many new construction projects underway. Cash buyers are taking advantage of the opportunity to purchase in all price points, but particularly at the luxury price point.

“We still have an active and robust market, with many buyers focusing on value purchases whatever their price range,” noted Matthew Day, Coldwell Banker Realty Managing Broker of the Sarasota Downtown and Central offices. “Movement in the single family residential real estate market, for both resale and new construction, has been good, with business similar to 2019 levels (pre-pandemic).”

And while inventory levels are higher in Sarasota and South Florida in general, having more options could be enticing buyers from other parts of Florida. Potential homebuyers in places like Tampa and St. Petersburg may find driving down the Gulf coast a short way will provide more alternatives for finding their ideal homes.

Conversely, for those wanting a better price point along with more homes on the market, it’s very possible homebuyers originally looking in places like Naples, Miami and Boca Raton are giving Sarasota a look. Such data would be almost impossible to track, but these scenarios are certainly conceivable.

Getting word out about increased inventory levels may very well serve to get some homebuyers off the sidelines. Those buying second homes often didn’t like the crazy pace of homes quickly going under contract or having very limited choices. Buyers who were not in a crunch to move sometimes got frustrated at having offers repeatedly turned down as they lost out to higher bidders.

And as the data above demonstrates, Sarasota residential real estate remains a sound investment while, at the same time, being an amazing place to live.

Duff Rubin is Southeast Regional President of Coldwell Banker Realty.