The luxury single family home market ($1M+ homes) is more of a buyer’s market in both Manatee and Sarasota County 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 about 7% more luxury homes on the market this year than last year at this time. However, about 12% fewer luxury homes are selling each month this year. You put those two facts together, and you have inventory increasing from around 11 months of sales to 13 months of sales. It is 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 about 15% more luxury homes on the market this year as there were last year at this time. However, only 8% more luxury homes are selling each month when compared to last year. You put those two facts together, and you have inventory increasing from 11 months of sales last year to 11.6 months of sales this year. It is also 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.