Sarasota Sees New Luxury Condos
Throughout the pandemic, inventory was tight across Sarasota as people sought to move to Florida for its lower taxes and less burdensome Covid restrictions, said Steve Walter, an agent and partner in Walter Group Real Estate based in Longboat Key. Traditionally a second-home market with median prices around $3 million, his area of Sarasota suddenly drew people looking to make a permanent move.
“In 2020 and 2021, people bought throughout what would typically have been our slow season from Easter to Labor Day,” Mr. Walter said. Now, he’s seeing the return to a “more typical seasonally oriented market” where sales decline throughout the summer and pick back up again in the winter as people head south in search of warmer weather.
Realtor.com predicted a near-30% slowdown in home sales next year in Sarasota. (Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.)
As of December, the median days on market had increased to 30 days, up from a low of six days in February and March, according to Redfin data. That’s still lower than pre-pandemic levels—between 2018 and 2020, homes typically spent between 40 and 60 days on the market, depending on the season.
Inventory is set to rise in the condo market, especially with the completion of some brand-name developments along the coast, such as the St. Regis Longboat Key Resort, which will contain three six-story residential buildings with 69 luxury condos, or the Sage Longboat Key Residences, which will feature 16 units, all at least 4,000 square feet.
Although inventory is increasing modestly, “the good stuff still goes fast,” Mr. Walter said. “In luxury waterfront on Longboat Key, demand is still outpacing supply—and we expect that to continue as we head into our season.”
Unlike Las Vegas or Boise, Sarasota isn’t expected to see as large of a price correction.
“At least on Longboat Key, there’s no indication of a price correction,” Mr. Walter said. “Baby boomers continue to retire, and they continue to want to enjoy the Florida lifestyle.”