Sarasota-Manatee County Real Estate Market Update: January 2024

Welcome back, folks! As we jump into the Sarasota-Manatee County real estate market update for January 2024, we've got some juicy updates to share. From exciting spikes in closed sales to some interesting shifts in inventory, it's time to dive into what's been happening in our local real estate scene. So grab a cup of coffee and let's break down the latest numbers and what they mean for all you buyers and sellers out there in Sarasota-Manatee County.

Closed Sales Surge

First up, closed sales have seen a significant jump of about 15% compared to the same time last year. This uptick reflects a growing confidence in the market, setting an optimistic tone for the months ahead.

*Statistics from* *https://www.floridarealtors.org/*

Cash Sales Strength

An exciting highlight is the increase in cash sales, up approximately 27% from last year. In January, about 44% of all sales were cash transactions, indicating robust market strength. Some buyers are opting for cash purchases, possibly to bypass concerns about higher interest rates.

Median Sales Price and Market Stability

The median sales price experienced a notable increase of 9% compared to last year. However, month-over-month, we observed a more stabilized trend after fluctuations towards the end of 2023. It'll be interesting to monitor whether this uptick is sustained, especially considering the impact of January's lower interest rates.

Seller Expectations and Time to Contract

Sellers can expect to receive around 95.6% of the original list price, showcasing a slight increase from last year. Additionally, the median time to contract increased by 26%, translating to an additional eight days compared to last January. While this may seem daunting, it's important to note that the market remains resilient.

Pending Sales and New Listings

Pending sales remained relatively flat, experiencing a minor 2% decrease. However, new listings saw a substantial 36% increase from the previous year. This surge in new listings is typical for January, as sellers aim to capitalize on perceived market demand. Yet, historically, the peak sales period occurs between April and June.

Active Inventory and Market Balance

The influx of new listings drove the active inventory up by approximately 54% from last year. This shift resulted in the market moving from a three-month supply to a 4.4-month supply, indicating a shift towards a more balanced market.

To provide context, it's important to understand what a 4.4-month supply signifies in real estate terms. We consider zero to three months a seller's market, indicating high demand and limited inventory, which often results in competitive bidding and higher prices. On the other hand, three to five months represents a median market where supply and demand are relatively balanced. Over 5 months would be considered a buyer’s market where buyers have the upper hand. In this scenario, sellers can still find success if their properties are priced competitively, while buyers have a reasonable selection of homes and may have more negotiating power.

Looking Ahead

As we move forward into 2024, the real estate market will likely face influences from political changes and Federal Reserve policies. Recent interest rate adjustments and inflation concerns may impact buyer behavior and mortgage rates. However, amidst these dynamics, opportunities abound for both buyers and sellers.

Final Thoughts

In conclusion, the Sarasota-Manatee County real estate market in January 2024 reflects a blend of optimism, stability, and opportunity. Whether you're considering buying or selling, it's essential to align your goals with market trends and seek guidance from experienced professionals.

Full January 2024 Market Report