Upward Momentum Building for Sarasota Condo Prices


SARASOTA, FLORIDA, October 21st, 2013 – The Sarasota condo market appears headed for a price breakout after a 15.6% drop in median prices this July to $162,900 from the $192,500 level in June.

Sarasota Bay Real Estate reports that inventory of available condo units remains thin at 4.6 months supply. Prospective buyers, it notes, will have to contend with a supply near the record low of 3.9 months set in May this year.

Thin inventory to linger

This inventory measure represents the number of months it would take to consume listed Sarasota condos for sale at the current sales pace. A six-month supply is generally regarded in the industry as the healthy balance between supply and demand. The current condominium market supply compares with the 7.5 months of condo inventories in July 2012.

The full service realty firm says a relief on the tight condo inventory isn’t on the immediate horizon. The company maintains that it will still take some time before current condo building projects and those in the pipeline exert their full impact on the market.

Luxury condo revival

Sarasota Luxury Condo

Moreover, the larger among these developments are geared toward the high-end buyers, projects which won’t adequately boost near-term supply of low- to mid-priced Sarasota condos for sale where current demand appears stronger. Notably, sales in July of condos priced under the $100s increased, in contrast to a decline in sales of units over the $1-million mark.

A plan which the Kolter Group submitted to city planners is one of the latest big condominium projects proposed in Sarasota. This West Palm Beach-based company is reviving its plan to develop an 18-story condominium in its property at U.S. 41 and Gulfstream Avenue, at an estimated cost of $300 million. The condo units on the drawing board will reportedly have starting prices in the $800s and the building’s architecture will be of contemporary design.

This project has been in mothball for years, adversely affected by the onset of the real estate bust in 2007. Once implemented, it will complement several new or revived condo projects in downtown Sarasota, the bayfront, and Longboat Key.

Searching for new listings?

Notwithstanding the current tight condo inventory, aspiring buyers can successfully search the market through a competent broker, says Sarasota Bay Real Estate, which specializes in high-end property sales and has access to up-to-date listings. For newly listed luxury condos, Plaza at Five Points has a new offering at $1.2 million, featuring three bedrooms in its floor area of 2,273 square feet.  The MLS likewise lists a newly available unit at the Windward Passage condominium, also a three-bedroom unit with nearly same floor plan at 2,277 square feet priced at $1.15 million.

For lower-end alternatives, Heritage Oaks has a new listing for a two-bedroom unit with a floor space of 1,324 square feet and an asking price of $147,900. The Almeria also has a newly listed property with an asking price of $149,900 for its 976 square feet of floor area, featuring two bedrooms and two baths.