Sarasota Housing Market for 2023: Analysis and Outlook
The Sarasota housing market has been thriving in recent years, with home prices increasing steadily. However, as we move into 2023, there are signs that the market may be cooling down slightly. In this blog post, we will analyze the latest data on the Sarasota housing market and provide an outlook for the year ahead.
Sarasota Housing Market Overview
According to recent data by Redfin, a residential real estate brokerage, the Sarasota housing market is somewhat competitive. Homes in the area receive an average of two offers and sell in around 25 days. The average sale price of a home in Sarasota was $525K last month, up 9.6% since last year. The average sale price per square foot in Sarasota is $350, up 20.3% since last year.
What is the Housing Market Like in Sarasota Today?
In January 2023, Sarasota home prices were up 11.1% compared to last year, selling for a median price of $533K. However, homes in Sarasota are now taking longer to sell, with an average of 27 days on the market compared to 11 days last year. There were 146 homes sold in January this year, down from 216 last year.
- Median Sale Price: The median sale price for all home types in Sarasota is currently $532,500, based on Redfin calculations of home data from MLS and/or public records. This represents an increase of 11.1% compared to last year.
- Competitiveness: The Redfin Compete Score rates Sarasota as somewhat competitive on a scale of 0 to 100, where 100 is the most competitive. Some homes in the area receive multiple offers. The average home sells for about 4% below the list price and goes pending in around 25 days. Hot homes can sell for around the list price and go pending in around 7 days.
- Sale-to-List Price: The sale-to-list price for all home types in Sarasota is currently 96.4%, based on Redfin calculations of home data from MLS and/or public records.
- Migration and Relocation Trends: Across the nation, only 1% of homebuyers searched to move into Sarasota from outside metros. Chicago homebuyers searched to move into Sarasota more than any other metro, followed by New York and Washington. 64% of Sarasota homebuyers searched to stay within the Sarasota metropolitan area. Asheville was the most popular destination among Sarasota homebuyers, followed by Jacksonville and Greenville.
While the Sarasota housing market has been strong in recent years, there are signs that the market may be cooling down slightly in 2023. Home prices are still increasing, but homes are taking longer to sell and there are fewer homes sold than in the previous year. However, the Sarasota housing market is still somewhat competitive, with some homes receiving multiple offers. Overall, the Sarasota housing market is expected to remain strong in 2023, but at a slightly slower pace than in previous years. Homebuyers looking to buy in Sarasota should be prepared to act quickly.
Median Listing Home Price vs. Median Home Sold Price
The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. The housing market in Sarasota, FL, has been trending up year-over-year, with the median listing home price reaching $573.9K in February 2023. The real estate industry in Sarasota, FL, has been experiencing significant changes, and it is essential to understand the trends and patterns of the market to make informed decisions.
Sarasota, FL was a balanced market in February 2023, which means that the supply and demand of homes are about the same. The median listing home price in Sarasota, FL, was $573.9K in February 2023, representing a 17.1% increase year-over-year. In contrast, the median home sold price was $490K, indicating that homes in Sarasota, FL, were sold for 14.5% below the listing price. The sale-to-list price ratio in Sarasota, FL, was 97.16% in February 2023, meaning that homes in Sarasota, FL, sold 2.84% below the asking price on average.
This indicates that sellers may need to reduce their asking price to sell their homes in Sarasota, FL, effectively. The median days on the market in Sarasota, FL, was 67 days in February 2023, indicating that homes in Sarasota, FL, sell after an average of 67 days on the market. However, this trend has gone up slightly since last year, which may indicate that it is taking longer to sell homes in Sarasota, FL.
Sarasota Housing Market Forecast for 2023:What to Expect
The Sarasota housing market has been experiencing significant growth over the past few years, with home price appreciation figures surpassing national averages. However, according to recent reports by CoreLogic, the housing market is showing signs of slowing down. Here's what you need to know about the Sarasota housing market for 2023.
Home Price Appreciation
According to CoreLogic's Home Price Index, the Sarasota-Manatee area's home price growth in November 2022 came in at 19.6%, more than double the national average. However, this figure is 1.16% below the housing market's peak price. While this still indicates significant growth, it is a deceleration from the past few years.
CoreLogic predicts that price growth will begin recording negative year-over-year readings in the second quarter of 2023. The Sarasota metropolitan area is a metropolitan area located in Southwest Florida. The largest cities in the MSA are North Port, Sarasota, and Bradenton
Challenges for Homebuyers
The recent decline in mortgage rates may bode well for the housing market, but potential homebuyers are grappling with the idea of buying amid possible further price declines and a continued inventory shortage. While slowly improving affordability and a more optimistic economic outlook may provide some resilience for the housing market in 2023, consumers remain wary of both the housing market and the overall economic outlook.
Sarasota Home Values
The Sarasota housing market has been on an upward trend for the past year. According to a recent report released by Zillow, the average Sarasota home value is $451,038, up 16.4% over the past year. This rise in value is a testament to the city's desirability, and the forecast for the year ahead is positive. In this blog post, we will delve deeper into the data and provide insights into the Sarasota housing market for 2023.
The average home value in Sarasota is $451,038, which is up 16.4% over the past year. This rise in value is a testament to the city's desirability and the strength of the housing market. Some key takeaways from the report include:
- Typical Home Values: $451,038
- 1-year Value Change: +16.4% (Data through January 31, 2023)
- Median sale-to-list ratio (December 31, 2022): 0.974
- Percent of sales over list price (December 31, 2022): 12.0%
- Percent of sales under list price (December 31, 2022): 73.2%
- 20 Median days to pending (January 31, 2023)
Based on recent data from Zillow, the Sarasota housing market is forecasted to continue its upward trend in 2023, with an average home value of $451,038, up 16.4% over the past year. With strong demand, low inventory, and a high median sale-to-list ratio, now is a great time to invest in Sarasota real estate.
Conclusion
The Sarasota housing market has experienced significant growth over the past few years, with home price appreciation figures surpassing national averages. However, the recent data from CoreLogic suggests that the housing market may be showing signs of slowing down in 2023. Homebuyers may face challenges with inventory shortages and declining prices, while renters may see some relief in rental price growth. As always, it's essential to stay up-to-date on the latest trends and data when making any decisions related to real estate in Sarasota.
Sources:
- https://www.realtor.com/realestateandhomes-search/Sarasota_FL/overview
- https://www.redfin.com/city/16463/FL/Sarasota/housing-market
- https://www.zillow.com/home-values/20362/sarasota-fl/
- https://www.corelogic.com/category/intelligence/reports/home-price-insights/