The luxury market continues to be as hot as I have seen it since I started serving real estate clients in Florida. 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. However, there are now less than five months of available inventory in both Sarasota and Manatee counties, making them seller’s markets.
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 15% fewer luxury homes are on the market this year than last year at this time. However, more than two and a half times as many luxury homes are selling each month this year. You put those two facts together, and you have inventory decreasing from over 12 months of sales to four months of sales. The video below illustrates the points above.
Sarasota County
In Sarasota, there are about 24% fewer luxury homes on the market this year than there were last year at this time. However, more than two times as many luxury homes are selling each month when compared to last year. You put those two facts together, and you have inventory dropping to 4.7 months of sales this year from 15 months of sales last year. The video below illustrates the points above.
While both markets currently favor sellers, they are close to being in balance. Having balanced markets is great for our area as leverage is roughly equal in most transactions. As usual, feel free to contact me with any questions as I am here to help.