It is noteworthy that in the face of higher interest rates and geopolitical/economic uncertainty, prices of existing single family homes in Sarasota County have fallen only in the single digits.  

If your home is for sale or you are considering selling, ensure your expectations align with current market conditions. Adjust your expectations now, with certitude of a profit, and you may avoid a bigger haircut later.

The inventory of homes for sale is surging. In February there were 80% more homes for sale than six (6) months ago; 2,509 homes for sale in February 2024, up from 1,391 in August 2023.  However, while inventory is surging, sales have fallen 12.5%; 456 sold homes in February 2024, down from 521 in August 2023.

Sellers have had a 3-year run of high expectations and double-digit price growth.  But it has run its course.  It is now a balanced market, tilting to a slight buyer’s advantage.

It generally takes a few months for the surge in inventory and fall in sales to show up in sold prices. The challenge is far too many sellers’ expectations are out of step with current market conditions.  They’ve been spoiled by out-sized returns. I call this “expectations become future resentment” effect.

Case in point, list prices continue to climb, while sold prices decline.  Last month the median list price was $595,000, up 2.6%, from August 2023, when it was $580,000.  Whereas, the median sold price was down 2.5 % in February 2024 at $506,000, from an August 2023 high of $519,000.  That is a 5% spread between sellers’ expectations and current market value.  It is the difference between “sold” and “not sold”.

The inflated expectation as to sellers’ perceived value of their home’s worth and current market value is a primary driver for inventory increasing, fewer sales, days on the market rising to three (3) months, and 50% of all homes having price reductions.

I am regularly asked, how’s the market? That’s easy. The market is always open. The real question is: Is your home “in the market” or “off the market”, “for sale” or “for show”?  As I have stated on these pages in the past, and it bears repeating:  Price your home where the market is, not where you want it to be.