SARASOTA MARKET UPDATE:HOW NEW CONSTRUCTION SHAPES TODAY’S RESALE MARKET
| The Sarasota housing market continues to evolve—and one of the biggest shifts in recent years is the growing share of new construction homes compared to traditional resales. THE NUMBERS TELL THE STORY Over the past five years, Sarasota County has seen a steady rise in the share of new homes: • In 2020, new single-family permits equaled about 30% of all homes sold.• By 2024, that figure jumped to 41%, with new permits equal to 70% of the resale volume. Source: RASM & HUD SOCDSPut simply: nearly half of today’s buyers are choosing new homes. WHAT THIS MEANS FOR SELLERS Builders have several built-in advantages when competing with resales: • Incentives like mortgage rate buy-downs and closing cost credits.• Move-in ready finishes with warranties and modern layouts.• Predictable monthly payments that often match—or undercut—what a resale home buyer would face. This means existing homes are competing not just on price, but also on condition and confidence. WHY RENOVATIONS MATTER MORE THAN EVER Buyers comparing your home to a new build will immediately notice: • Outdated kitchens or baths.• Roofs, HVAC, or systems nearing the end of their useful life.• Deferred maintenance that undercuts curb appeal. Homes that are updated, maintained, and “turn-key” consistently command stronger prices and faster offers. Homes without upgrades risk sitting longer on the market—or being discounted heavily to compete with builders’ incentives. BOTTOM LINE FOR HOMEOWNERS The Sarasota market is still active, but it is being absorbed at a growing rate by new construction. For sellers, this means: • Pricing smart—recognize that buyers are comparing your home directly with builder offers.• Investing in updates—small or moderate renovations can make a major difference in perceived value.• Being proactive—pre-inspections, warranties, and buyer concessions can help level the playing field. ___________________________________________________________________________________________ Takeaway: If you’re thinking of selling in 2025, know that buyers have options—and builders are aggressive. Preparing your home so that it feels as close to “new” as possible can make the difference between selling strong and chasing the market down. ___________________________________________________________________________________________ |
| The Numbers: In 2020, new single-family permits equaled about 30% of all homes sold. By 2024, that figure climbed to over 41%. Nearly half of today’s buyers are choosing new homes. Source: RASM & HUD SOCDS Why It Matters for Sellers: Builders offer incentives, modern layouts, and warranties—making it harder for existing homes to compete. What Buyers Notice in Resales:• Outdated kitchens and baths• Aging roofs, HVAC, and systems• Deferred maintenance or lack of upgrades Bottom Line: Homes that are updated, maintained, and “turn-key” consistently command stronger prices and faster offers. To compete with new construction, consider strategic renovations, smart pricing, and proactive marketing. |
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