Although the luxury single family home market ($1M+ homes) is much better balanced this year than last, it is still a strong buyer’s market in both Manatee and Sarasota counties. Markets are generally considered in “balance” when there is about six months of inventory for sale at the current pace of home sales. When the inventory gets greater than that, buyers tend to have more leverage than sellers in negotiations.
Manatee County
In Manatee, there are almost 19% fewer luxury homes on the market this year than there was last year at this time. Also, almost 39% more luxury homes are selling each month then they were last year. You put those two facts together, and you have inventory reduced from 17 months of sales last year to 10 months of sales this year. It is a major improvement, but it still significantly higher than the six months of inventory required to be in balance. The video below illustrates the points above.
Sarasota County
In Sarasota, there are 15% fewer luxury homes on the market this year than there was last year at this time. Also, 25% more luxury homes are selling each month then they were last year. You put those two facts together, and you have inventory reduced from 16 months of sales last year to 11 months of sales this year. Again, it is a major improvement, but it still significantly higher than the six months of inventory required to be in balance. The video below illustrates the points above.
The bottom line is that it remains a very good time to buy a luxury single family home in our area. If you are in the market to sell, you must ensure you position your property to stand out from the competition or there is a very good chance that you will be listing it for up to a year.