There was an article in the Sarasota Herald Tribune recently (read it here) about a new 18 story luxury condo tower will be built next to the Ritz Carlton in downtown Sarasota. The new project will be called The Grande. For those Realtors selling in the mid 2000's, The Grande was a condo project planned to built where The Vue is now sitting. The project was scrapped when the Sarasota real estate market popped.
The Kolter Group plans on building 86 residences that will offer services managed by the Ritz-Carlton. Prices for 3 and 4 bedroom units will run from $2,000,000 to $5,000,000. The new tower will be built east of the hotel over the support facilities.
Is there a downtown Sarasota luxury condo glut on the way?
How Many $2,000,000+ Condos Have Sold in Downtown Sarasota?
Are you considering a purchase or sale in Lakewood Ranch? The charts below may assist in your decision.
5 Years of Lakewood Ranch Activity
If you remember back in economics class prices are primarily dictated by supply and demand. Obviously, with an increase in the number of homes for sale in Lakewood Ranch there will be downward pressure on price. That does not mean prices will decline. If demand stays strong prices could stay the same or continue to rise.
Recent Sales Activity in Lakewood Ranch
Below is a chart of sold, pended sales and active listings for the last 18 months in Lakewood Ranch.
Months of Inventory in Lakewood Ranch
In the last three months Lakewood Ranch's months of inventory rose and is hovering between 6 and 8 months. Prior to January inventory was hovering around 4 months. That is a pretty substantial increase. This is something to definitely keep in mind if you are currently trying to sell your home.
What Should Sellers Do?
If your Lakewood Ranch home is currently listed then you should reassess your position in the market. Here are some questions...
Sarasota County booms with arts and culture and is celebrated as Florida’s “Cultural Coast” and renders endless opportunity to amplify and support community development through the performing arts. No wonder that Sarasota is ranked No.3 as one of the 100 Best Art Towns in America.
The dynamic cultural scene distinguishes Sarasota as a refined hub for business and tourism. It is undisputable that arts, culture and humanities can be inspiring in the development of any successful community.
Below are some of the fun activities you can enjoy in Sarasota, Florida.
The Circus Museum that was founded in 1948 commemorates the affluent history of the American family circus and its rapport with Sarasota. Visitors can experience a narrated circus and all its brilliance in sequined costumes, baggage wagons, colossal parades and side show banner lines. John Ringling as the Circus King is epitomized in relics and memorabilia in the museum that harks back to the greatest circus movie ever, The Greatest Show on Earth that was filmed in Sarasota.
The private rail car of Mable and John Ringling, The Wisconsin that was built in 1905 during the golden age of the rail is on display in the museum. The Wisconsin gives visitors a matchless insight into the journeys of John and Mable around the country on business and with the circus.
A major attraction in the museum is the Tibbals Learning Center with a myriad of posters that were used to broadcast that the circus was coming to town. The key attribute in the museum is The Howard Bros. Circus Model, the...
Is this the end of a boom cycle in the real estate market? It is too early to tell but some believe so. Below I provided graphs of inventories levels in Sarasota, Manatee, Longboat Key, Siesta Key, Lakewood Ranch and the downtown area.
What We Don't Want
It is part of our job to monitor real estate market stats like inventory levels, sold properties and pending transactions. We just don't want to see this happen again:
The above graph shows January 2004 to January 2006 inventories. They went from a low of 5,002 in September 2004 to 17,457 in January 2006. That is a 349% increase in inventories which ultimately caused the real estate bubble to burst.
Personally, I don't see this happening. There are several differences between these two markets. Many of the buyers today paid cash which creates a stronger market. Lending guidelines did tighten so most people who bought had to prove income and the ability to repay their loan. Prices escalated but not as quickly as they did from 2003 to 2005.
We will keep watching and reporting what we see. Stay tuned.
Sarasota & Manatee Counties Combined - Inventories up 6.3%
Sarasota County - Inventories up 5.6%
Manatee County - Inventories up 7.3%