Sarasota Condo Sales Top Previous Year For Third Year in a Row
The chart below shows condominium sales by year for all of Sarasota County. Before you study the chart, remember that 2005 and 2007 were big years for new construction closings. Several buildings closed all of their contracts in a matter of months in each of these years. The contracts were signed over the course of the 2 years during which the buildings were being constructed. So even though the sales show up in 2005 and 2007, they generally reflect demand over the over the prior 2 years. For the more popular buildings, the sales contracts could have all been taken within a few weeks of announcement- possibly all 2 years before actually closing. The net take away here is that the sales figures for 2005 and 2007 over state demand by 300-400 units in each year (my estimate).
So now look at the chart. Condominium sales peaked in 2005 and crashed to the ground in 2006. But they have increased every year since with the exception of 2007. As discussed above, it’s possible that true demand in 2007 was flat or perhaps worse than 2006 because of the timing of new construction sales. Similarly, 2004 could have been the peak for demand in this chart as 2005 closings also overstated demand. Regardless, the sales trend since the crash has been impressive and generally uninterrupted. In fact, it is likely that more contracts for the sale of condominiums were signed in 2011 than any year since 2004.
Even more impressive and positive from the stanpoint of price improvement is that inventory levels have been declining all the time sales have been increasing. Unsold Sarasota condominium inventory ended 2011 with just 1503 residences on the market. That is down 2% from the November 2011 ending number and 25% below unsold inventory as of December 2010. It’s an unbelievably low figure as the chart below shows.
Inventory levels are and have been at 2005 levels since fall of 2011. There is less selection available to buyers now than since August 2005.