For the first time since I started tracking local market data by price point every month several years ago, the luxury single family home market is balanced in both Manatee and Sarasota counties. Usually, the higher end of the market tends to favor buyers, with over seven months of available inventory for sale at any point in time.
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 11% fewer luxury homes are on the market this year than last year at this time. However, almost twice as many luxury homes are selling each month this year. You put those two facts together, and you have inventory decreasing from 12 months of sales to 5.5 months of sales. The video below illustrates the points above.
Sarasota County
In Sarasota, there are about 22% fewer luxury homes on the market this year than there were last year at this time. However, about 60% more luxury homes are selling each month when compared to last year. You put those two facts together, and you have inventory dropping to 6.5 months of sales this year from 13.4 months of sales last year. The video below illustrates the points above.
Having balanced markets is great for our area. With around six months of available inventory, leverage is roughly equal in most transactions. As usual, feel free to contact me with any questions as I am here to help.