Southwest Florida Real Estate Market Report Q2 2019 – Sarasota, Manatee, Charlotte Counties

Southwest Florida Real Estate Market Report Q2 2019 – Sarasota, Manatee, Charlotte Counties


Hi, I’m Drayton Saunders President of
Michael Saunders and Company and welcome to our second quarter market update. So
what about second quarter? When we look just at the numbers you will see a very
consistent pattern. You saw at the beginning of the year inventories spiked
and then you saw through pendings and ultimately closed sales that inventory
be eaten away through very consistent buyer activity. Now end second quarter and we look at those same inventory trends we’ve seen that buyers’ market start to
create in a little bit of summer lull a seller being a bit more in control
depending on their competitive set. But again I will remind you that this market
is one, because of the slowing pace of appreciation, the fact that new is here
to stay, and that you’re always comparing against what really is that choice a
buyer is looking at, that you cannot out price the market and we do see that
trend again continuing into third quarter where if it is not priced to
sell the buyer is moving on or they’re
waiting for that next better property to come on the market. So let’s talk about price and let’s talk
about price appreciation. When we look at the statistics for median price, you will
see an overall narrative strength that this second quarter saw again an
increase in the overall median price. Now that again goes back to that concept of
two competing trends. For sellers competing with new construction they may
not have seen that strength in their market value. They may have seen really
the sale of new construction be the component of the market adding to that
overall narrative. So again you really have to break down the general into the
specific to know what you’re competing with but from the overall health the
general number is very strong and bodes well for this region. So what we’re seeing as we head into
August and if we look at those inventory numbers again the market today the most
important trend is that need for inventory. This is a time of year where
you should be reassessing if you’re a seller, should I come to market now? But
if you go back to the data and you really look at sales that happened in
third quarter, what you’ll see is there’s a strong activity throughout the year
and so really what we’re doing now is counseling somebody about what they want
to do is their next step so if you’re thinking of selling let’s talk about
that destination and there is no bad time to list and those are some of the
best conversations to have right now as we move into the low point of inventory
in the market. So what about the luxury market? Again here you might be reading
contradictory headlines. On one hand you might be seeing something that says
overall slowing of the pace of luxury sales but flip the page and you might be
seeing a headline about our next benchmark sale in this market. So how do
you make sense of that? Well really one you have to go back and say what are you
comparing it to and last year was a very strong year for luxury so not too
unexpected that that pace of sales was going to slow somewhat and normalize and
so I look at the change really being about more of a normalization of that
pattern of luxury buying. The other really interesting thing to
point out in the luxury space is really what kind of competitive set you
are shopping for? That luxury buyer like every buyer has to feel excited about
that home and again a lot of that desirability is about what’s on the
market and available and so if they can’t find what they’re looking for
they’re just not gonna buy and I would say in this market, particularly in the
resale luxury space, it is hard to find that perfect property. Again a good
signal for this is a strong time even in the luxury segment even with growing
inventory for a well positioned home to come to market. So what about
expectations for the remainder of the year or certainly as we move into third
quarter? Well again I look at third quarter as the quarter of being ready –
ready for that opportunity. For sellers it’s going to be looking at why this is
a strong time to come to market and for buyers it’s about getting ahead of the
curve. About being in the market when you’re seeing those choices that you’re
looking for in an increasing mode and really peak at the beginning of the year
so I think buyers this is not a time to wait to shop this is about being active
in the market and it’s proven year over year that those are in and ready act get
the best choice so I think third quarter is all about being prepared.

Leave a Reply

Your email address will not be published. Required fields are marked *