Editor's note: Real estate expert Joel Schemmel talks about Sarasota, FL real estate during the 3rd quarter of 2020 in this Q&A with Haute Residence.
Is there an area from which buyers are relocating to your market?
The Greater Sarasota area has traditionally drawn visitors and buyers from the Midwestern States. However, things have evolved significantly over the last several years particularly because of the recent tax law changes. We have seen a significant new migration from high tax Northeastern States including New York, New Jersey, and Connecticut. Also, over the last year, our team has seen a huge increase in buyers from California. I am personally working with three different buyers relocating from California. In the new world of COVID-19, we are also seeing an added push from larger cities (urban areas) in general. People seeking the safety of a low-density environment with great climate allowing for the ability to be outside all year round.
Photo Credit: Coastal Home Photography
Photo Credit: Coastal Home Photography
How did the third quarter of 2020 for real estate perform?
We have interesting stats to report! Trying to isolate third-quarter activity, I have focused just on pending sales as of 9/30/2020. Pending sales in Sarasota County for the third quarter are 65% higher compared to the same date last year for properties priced at $4,000,000 and above. Properties priced between $2,000,000 and $4,000,000 are also ahead of last year by 80%. In the $1,000,000 to $2,000,00 range they are up 59%. I would say that is a sign of a good third quarter!
Photo Credit: Coastal Home Photography
How has your market been doing so far compared to this time last year?
It has certainly been an interesting year in Sarasota County! We started with a good first quarter. Then, as a result of COVID-19, we essentially shut down for two-thirds of the 2nd quarter. Quarantining seems to have made people think even more about their homes, where they want to live and work and maybe even some have concluded that Florida and Sarasota are calling their names. Closed sales year to date are up across every price point compared to last year. In the $1,000,000 to $2,000,000 range by 25%; in the $2,000,000 to $4,000,000 range by 29% and above that by 23%. This does not even factor in the pending sale comparison noted above which will certainly result in 2020 far exceeding the market of 2019.
Photo Credit: Coastal Home Photography
Photo Credit: Coastal Home Photography
Do you expect a more or less active 4th quarter compared to last year?
The significant number of pending sales will certainly mean that the fourth quarter closed sales will far surpass 2019. What will be interesting to see is the velocity of new sales. Keep in mind that as of the end of the third quarter, taking into consideration all the current and pending sales, the inventory of homes for sale has decreased significantly. Months of supply in the $1,000,000 to $2,000,00 range is down 72% compared to prior years. In the $2,000,000 to $4,000,000 range and in the $4,000,000 plus range inventory is down 53% and 17% respectively. High demand and low inventories will be our challenge! It will also certainly put pressure on price.
Photo Credit: Coastal Home Photography
