The Lakewood Ranch and Sarasota real estate market is currently facing unprecedented demand and this has driven the inventory of available homes to an extremely low level at less than one month’s supply. To make a comparison, a healthy, normal real estate market would have roughly a six-month supply of homes. This extremely low level of housing inventory has presented a new set of challenges to buyers whereby most homes hitting the market are now receiving multiple offers quickly and we are now seeing where highly-motivated buyers are waiving contingencies (i.e. inspection period, appraisals, etc.. ) to strengthen their offer.
In the new construction market, builders are commonly receiving multiple offers on their lots and available home inventory. Some builders are now asking buyers to submit their “highest and best” offer, similar to the resale market, in order to be considered a contract. In terms of timelines, most new home builders are now quoting 11 – 14 months build time to complete the home. Meaning, from the day a buyer signs a sales contract with a builder, it could take up to fourteen months before the home is completed, passes county inspection, and the buyer can close on the home to take possession.
My recommendation for buyers in today’s market who are seeking a resale home in established communities is that they should start their home search at least three to six months before they intend to move and if they are considering new construction, at least a year in advance as supply chain issues are commonly causing delays. Buyers should also be prepared to battle to a certain degree in this competitive market as multiple offers, waived contingencies, and compromises have become the new norm.
My Outlook for the 2nd Half of 2022
As interest rates have risen in the first half of the year, and likely to continue rising, this is actually having little effect on the Sarasota / Manatee housing market as so many of our buyers are all-cash or heavy-cash (i.e. buyers who make a large down payment to mitigate lending costs). Paired with a continuous lack of inventory, our local area is still experiencing a STRONG seller’s market. All of my listings are still receiving multiple offers, above list price, with most contingencies waived. I do not expect this to change much for the remainder of 2022. The under $600k buyer has also had a difficult time finding inventory since 2020 and now with the rising rates, we are seeing many of those buyers back out of the market.
Market Trends
These are the most notable trends I am observing:
- Strong demand for 2nd homes by baby boomers as they reach retirement age and fulfill their Florida retirement dreams.
- A greater number of younger families are moving to Florida and seeking out good school districts and communities with built-in social opportunities.
- A strong preference by buyers for amenity-rich communities offering social activities.
- Real estate investors are seeking more longer-term rental opportunities vs the traditional “quick-flip” opportunities.
Relocation Advice
Start your home search now, even if you’re not planning on moving to Lakewood Ranch / Sarasota for another year or two. This will give you the needed time to thoroughly research an area and to set realistic expectations for the home you can afford, including the timeline it will take to either purchase, renovate, or build the new home. Also, make sure to connect with a licensed Realtor who can assist you in your search. Leverage their local market knowledge and proven experience in working new construction deals and crafting offers in this unprecedented, intricate market. The current Lakewood Ranch real estate market is extremely competitive as we are a top-selling community in the entire nation and working with a true professional will only save you time, energy and headaches.