The Sarasota condo market appears headed for a breakout, Here’s Why


SARASOTA, FLORIDA, February 8th 2017 – The Sarasota condo market appears headed for a breakout, November‒December realtor figures indicate.

During the last two months of 2016, sales closed on multifamily homes in the county rose at double-digit levels, reversing declines for most of last year. A total of 298 Sarasota condos were recorded sold in December, up 12.5 percent from the same month in 2015. This gain follows a 10.3 percent year-over-year advance to 258 units in November.

Buyer-friendly Prices

The Sarasota condo market appears headed for a breakout, Here's Why

Tamer prices brought about by strong gains in market inventory throughout last year appear providing stimulus to sales of Sarasota condos and townhouses. The median price for these residential types slipped by 1.1 percent to $217,000 in December and by 1.3 percent to $196,500 in November. These declines compare with the hefty 24.7 percent increase in December 2015 and spikes for most of 2016 which was highlighted by a 17.8 percent rise last January.

The Sarasota condo market also looks drawing strength from the decline in cash sales in nearly all months of 2016. In December, cash purchases of multifamily units was registered at 63.8 percent of total sales, down 7.7 percent. This drop follows the year-record 18.4 percent drop of cash sales share in November tracked at 58.9 percent of total condo purchase value for the month.

Market Equilibrium Reached

New listings and inventory of Sarasota condos for sale in November‒December sustained the uptick for all last year even as prices retreated a bit towards the close of 2016. Months’ supply of inventory in December rose 44.7 percent to hit the 5.5-month equilibrium favoring neither seller nor buyer in pricing. New sales listings of multifamily units rose by 7 percent in December and by 8.7 percent in November, helping sustain the strong inventory buildup last year.

Going forward in 2017, additional inventory is being steadily provided by condominium building projects launched recently and their units sales-listed early this year. Here are some samplings on three new communities:

Azure on Palm

This is a boutique condominium project located at 711 South Palm Avenue in the Burns Court area of downtown Sarasota. Listed in the MLS as 7 One One, this property is planned for 16 units with currently listed units priced in the $1 million range, featuring living areas of 2,025-2,124 square feet designed with three bedrooms and three baths.

The prize-winning architecture firm DSDG designed its contemporary building. Its amenities include a large pool, spa, cabanas, fitness center, fire pit and gas grills. Each unit comes with secure air-conditioned storage and two garage parking spaces.

Orange Club

The Orange Club is also a boutique condo likewise situated in the historic Burns Square of downtown Sarasota. It is comprised of nine townhomes and 15 condo units.

The last unit in this property, a top floor condo priced in the high $500s, was sales-listed just this February. It features two bedrooms and two baths within its floor area of 1,135 square feet.

Bay Street Village

Conveniently located in Osprey between downtown Sarasota and Venice, Bay Street Village offers three recent listings at the high $200s range. These units are of two-bedroom designs within floor plans of about 1,600 square feet. The amenities in this community include gated access, heated resort-style pool, club room and fitness room.

For resale condos with similar facilities, Las Palmas of Sarasota off Honore Avenue just west of Nathan Benderson Park offers units with approximately the same square footages priced between the $100s and the $200s. Currently, there are 16 sales-listed units in this community. Half of these were listed early this year to reflect the vibrant expectations in the Sarasota market for multifamily homes in 2017.