2017 SARASOTA HOUSING FORECAST
While 2016 won’t be a back-to-back record breaking year, the Sarasota real estate market will start 2017 fit and healthy. Realtor.com’s national housing forecast listed the Sarasota metropolitan area as #25 in its Top 100 US Housing Markets, with anticipated price increases of 5% and sales to grow 5.3%.
Certain real estate trends will play a role in Sarasota real estate during the New Year. Here’s what potential home buyers need to aware of for next year.
1) INVENTORY DRIVES REAL ESTATE
Nationwide, inventory is down 11% in the top 100 markets, and Sarasota is no exception. Inventory leaned towards the low side all year and will likely continue all year as home buyers decide to hold onto their purchases. Expect the seller’s market to persist for a little while longer.
2) BABY BOOMERS AND MILLENNIALS DRIVE HOME PURCHASES
Economic stability is helping millennials enter the housing market in significant numbers. At the same time, that stability is reassuring baby boomers that now is a good time to downsize or purchase a second home. Realtor.com anticipated baby boomers will represent 30 percent of buyers next year. For Sarasota, high interest from baby boomers means a busy spring season hunting for second or vacation properties.
3) HOME PRICES WILL RISE
The recession seems a distant memory as housing prices continue to rebound. CoreLogic forecasts housing pricing nationwide to rise 4.6% in 2017. Still, home prices are below their peak--but barely. It’s possible values will reach their April 2006 peak by mid-2017. Sarasota home buyers can expect to pay prices at or near pre-recession values, while underwater homeowners could regain equity lost in the market crash.
4) NEW CONSTRUCTION HAMMERS AWAY
High interest in the Sarasota-Bradenton area by boomers is driving a surge in new construction properties, from rising downtown condominium properties like the Vue, the recently approved Quay project, and suburban communities in Palmer Ranch, Lakewood Ranch, and Venice. Over 1,400 single family units broke ground from July-September 2016, one of the highest numbers since 2006.