Steady Horizons in the Sarasota and Manatee Housing Market

The 2023 housing market in Sarasota and Manatee Counties has offered some fascinating insights, presenting a scenario that seems to herald a more balanced market, a welcome change from the frenzied pace of previous years. This trend is crucial not only for the local real estate industry but also for potential buyers and sellers in the area.

One of the most striking features of the 2023 market has been the return of housing inventory to levels reminiscent of the pre-COVID era. The Months’ Supply of Inventory (MSI), a key metric for evaluating the market's status, has seen a significant increase in both counties. For Sarasota, the MSI for single-family homes rose to 4.4 months, and for condos, it reached 5.2 months – the highest since 2018. Similarly, in Manatee County, there was a notable increase in MSI for both single-family homes and condos. This increase in inventory indicates a shift towards a market that is less skewed in favor of sellers and provides more choices for buyers.

Despite these changes, the median prices have continued to hold strong, even reaching record highs for condos in both counties. This trend suggests that while buyers might find more options and less competition, sellers are still in a position to secure good value for their properties. However, it's worth noting that the process might be slower, and buyers are less inclined to waive contingencies, such as inspections, in the current market.

Tony Barrett, 2023 RASM President, has optimistically noted these adjustments as beneficial for both buyers and sellers. An increase in days on the market, along with the growing inventory, hints at a more balanced and less pressured environment for negotiations.

The total number of closed sales in 2023 showed a slight decrease, indicating a cooling off from the heated pace of the previous years. Yet, the median sale prices for condos hit new highs, and single-family homes also saw price increases in Sarasota. These trends underline the enduring appeal of the area's real estate market.

Interestingly, the year 2023 also witnessed an increase in the median time to contract. This change might reflect a more cautious and deliberate approach from buyers and a shift away from the urgency that characterized the market in recent years.

The decrease in cash sales for both property types in the two counties might suggest a normalization in buying behaviors, moving away from the aggressive purchasing patterns seen during the peak of the market frenzy.

For prospects, the data from December 2023 offers some intriguing insights. The year-over-year increase in closed sales and median sale prices, especially in the condo market, hints at a robust interest in the region's real estate. However, the increase in the median time to contract and the supply of inventory suggests a market that is recalibrating toward equilibrium.

Overall, the 2023 housing market in Sarasota and Manatee Counties seems to be moving toward a more stable and balanced environment. This shift is likely to benefit both buyers and sellers, offering more reasonable prices and a less frantic buying process. It represents a healthy adjustment after the unprecedented market conditions of the past few years and sets a positive tone for the future of real estate in the region.

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