The local market for condos and townhomes above $400,000 currently favors buyers. When compared to last year at this time, there has been a significant shift towards a buyer’s market for luxury condos in Sarasota county. While Manatee county hasn’t shifted towards a buyer’s market for luxury condos, the only reason why is that it was already a buyer’s market at this time last year.
Markets are generally considered in “balance” when there is about six months of inventory for sale at the current pace of sales. When the inventory gets greater than that, buyers tend to have more leverage than sellers in negotiations. When the table below shows a “buyer’s market,” it means there is more than seven months of inventory in the market. If it shows “seller’s market,” it means there is less than five months of inventory. In that situation, sellers should have at least some level of negotiating power in condo and townhome sales. The table below shows a snapshot for market conditions by price point in both counties.
When I look at the top end of the market, or condos & townhomes above $1M, both counties are slowing down significantly. In fact, Manatee County luxury condo sales have pretty much stopped, with only 1 sale per month over the last three months. That number implies a whopping 23 months of available inventory. Earlier in 2018, Sarasota County was balanced for condos above $1M. However, it joined Manatee County around four months by moving well into Buyer’s market territory. Currently Sarasota county has over 20 months of inventory of condos above $1 million.
I should note that none of this should discourage you from listing your luxury condo. You just have to make sure that you have the right realtor and the right marketing approach to get the best odds of success. If you want more specific details for your condo or townhome, or if you are looking for information on potential places to move, just let me know.