Although the luxury single family home market ($1M+ homes) is better balanced this year than last in Sarasota County, it is still a strong buyer’s market. In Manatee County, it is even a stronger buyer’s market this year than last. 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 5% fewer luxury homes on the market this year than there was last year at this time. However, about 6% less luxury homes are selling each month then they were last year. You put those two facts together, and you have inventory slightly increasing from 12.8 months of sales last year to 13 months of sales this year. It isn’t a material change, 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 6% fewer luxury homes on the market this year than there was last year at this time. Also, 3% more luxury homes are selling each month then they were last year. You put those two facts together, and you have inventory reduced from 14 months of sales last year to 13 months of sales this year. It is an 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 more than a year.