February 2021 Market Report
SARASOTA, Fla. (March 22, 2021) – February’s housing market in Sarasota and Manatee counties showed more closed sales, more cash sales, higher median prices, and limited inventory when compared to a year ago. According to data from Florida REALTORS® and compiled by the REALTOR® Association of Sarasota and Manatee (RASM), closed sales increased year-over-year by 27.6 percent across the two-county market, representing a combined total of 2,182 sales in February.
Single-family home sales increased by 34.5 percent to 831 sales in Sarasota County and by 12.8 percent to 536 sales in Manatee County. In Sarasota, condo sales increased year-over-year by 37.8 percent to 518 sales. In Manatee County, condo sales increased by 23.2 percent to 297 sales.
“As long as there are more buyers than sellers in our market – and right now that imbalance is as high as it’s ever been – prices will continue to rise. Sellers are often able to choose from multiple offers with great terms while buyers are struggling to find traction with immense competition,” said 2021 RASM President Alex Krumm, Broker Owner of NextHome Excellence. “Rising interest rates and a seasonal feeding frenzy have created significantly more demand for homes than the number of homes that are actually for sale, but all markets turn eventually: regardless, it is clear that now is one of the best times in history in which to sell a home.”
Prices for both single-family homes and condos rose year-over-year in February. In Manatee County, the median price for single-family homes increased yet again to a new record price of $380,000, a 16.9 percent increase from this time last year. For Manatee condos, the median sales price increased by 9.5 percent to $230,000. In Sarasota County, the median price for single-family homes was $359,900 in February, a year-over-year increase of 18.4 percent, and condo prices rose by 9.1 percent to $283,750.
With increased buyer demand and many multiple offer situations, cash sales continue to rise in both counties. For single-family homes, cash sales increased by 54 percent in Sarasota and by 10.5 percent in Manatee. Condos also saw an increase in cash sales with a 38.5 percent increase in Sarasota and a 21.1 percent increase in Manatee.
“With multiple offers on most homes right now, the trend of cash purchases will continue because they don’t require an appraisal and there’s no financing contingency,” added Krumm. “Cash sales may also be rising because interest rates have been so low over the past few years that even buyers who could pay cash were choosing to get mortgages. But, with interest rates increasing again, they’re instead choosing to purchase in cash.”
New listings decreased year-over-year in February for both property types. Single-family home new listings decreased by 8.4 percent in Manatee and by 12.9 percent in Sarasota. Condo new listings decreased by 3.4 percent in Manatee and by 5.9 percent in Sarasota.
The total number of properties that went under contract in February increased by 20.8 percent from last year. For single-family homes, pending sales increased by 11.6 percent in Manatee and by 11.7 percent in Sarasota. Condo pending sales increased by 45.8 percent in Manatee and by 33.8 percent in Sarasota.
On the supply side, the combined inventory of both property types in the two counties decreased by 69.2 percent from this time last year. The single-family home supply fell below one month in February, now sitting at 0.9-months in both counties. Condo inventory also decreased by 75.6 percent to 1.1-months in Manatee County, and by 66.7 percent to a 1.5-month supply in Sarasota.