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 four 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 28% fewer luxury homes are on the market this year than last year at this time. However, twice as many luxury homes are selling each month this year. You put those two facts together, and you have inventory decreasing from over ten months of sales to under four months of sales. The video below illustrates the points above.
Sarasota County
In Sarasota, there are about 38% 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 under four months of sales this year from fifteen months of sales last year. The video below illustrates the points above.
Currently, both markets clearly favor sellers. As usual, feel free to contact me with any questions as I am here to help.