While the luxury single family home markets ($1M+ homes) in both Sarasota and Manatee counties are strong buyer’s markets, they are moving in different directions. In Sarasota, the market has improved for sellers over last year. However, in Manatee, it looks even better for buyers.
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 about 5% less luxury homes are on the market this year than last year at this time. However, 25% less luxury homes are selling each month this year. You put those two facts together, and you have inventory increasing from 12.2 months of sales to 15.6 months of sales. It remains 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 13% fewer luxury homes on the market this year than there were last year at this time. However, about 9% more luxury homes are selling each month when compared to last year. You put those two facts together, and you have inventory dropping to 12.7 months of sales this year from 15.9 months of sales last 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.