The average single-family home in Sarasota County rose 28.4% to $487,500, while the median price recorded for Manatee County was $525,000 with a jump of 32.9%.
SARASOTA, Fla. — In its most recent Emerging Housing Report Index, The Wall Street Journal and real estate agent.com ranked the North Port-Sarasota-Bradenton area third in real estate growth and the number of people moving to the area.
This trend has helped push up the price of single-family homes. Median home prices hit the $500,000 mark, which is a record high, according to the Sarasota Manatee Association of Realtors. This number is up 29% from March 2021.
Local realtors said new homebuyers looking to call Sarasota or Manatee County home should up their budget significantly if they’re looking for an average single-family home. They also said that due to supply chain issues, contractors and developers are unable to bring more homes to market quickly enough to meet growing demand.
“The long delay in supplies and the apologies after apologies are just mind blowing and it’s the only thing I’m tired of,” said Jeff Kramer, who recently bought a house in Nokomis. Kramer, who once spent his childhood vacationing in Sarasota, said he and his wife wanted to get ahead of retirement and moved from St. Louis.
“We wanted something to match our home lifestyle, but also something tropical, we wanted palm trees obviously, we wanted a pool, but also the modern rocket element as well as the storage facility that we would need,” Kramer said. .
But, after a long and difficult search process that has been plagued by competitive and often disappointing bidding, many new and potential home buyers are feeling the brunt of delays in supplies to complete their new or desired homes.
“New construction was going to cost a lot of trouble and a whole lot of scheduling trouble. My kids, we’re going to be halfway through high school before this house is even finished,” said Kate Vanderpool of Kansas. Vanderpool recently purchased a new home in Sarasota due to his work, which is based in Tampa but has yet to move in as contractors complete the final process.
The data, which was compiled by the Realtor Association of Sarasota and Manatee and released by the Florida Realtors Association, showed the area saw a 29.9% year-over-year increase, for an average price. of a $500,000 single-family home in March. The group said the average single-family home in Sarasota County specifically rose 28.4% to $487,500, while the median price recorded for Manatee County was $525,000 with a jump of 32, 9%.
While Kramer and Vanderpool were well aware that the cost of homes in Sarasota was higher, they were alarmed by the cost relative to square footage and what they would get for the same amount in other areas.
“Our budget was about maxed out in the upper 600s, so we really wanted something in the upper 500s, which is what we priced our old house at, but we really ended up paying a lot more. “, said Kramer.
“There’s definitely going to be a struggle for people who are winning at a certain level and that’s sad. There are people who are earning a lot having a lot of equity, but if they were to sell their house, could they even afford another house. I see there is a problem but I don’t know how to fix it,” Vanderpool said.
Sarasota real estate agents said that, apart from the influx of new residents, problems with the demand and supply of building materials, rising interest rates and inflation have helped push up prices .
“As interest rates go up, we’re shunning people in the market anyway. The market is what it is, so if you can afford it, get in where you can and I think that’s the best time because we’re not doing it. I don’t see interest rates going down in the near future,” said Andrew Pepper, realtor at Keller Williams On The Water Sarasota.
But rising prices for average homes are making the area’s affordable housing crisis worse.
“Sometimes you might have a first-time home buyer or if a buyer here in Sarasota who says, ‘I want to buy a house for $300,000,’ well that doesn’t exist anymore,” said Alexandria Twigg, also an agent. real estate at Keller Williams. On the Sarasota water.
“There is no affordable housing here, there just isn’t. However, when you can work with lenders who can qualify you to buy a home, you find there are options for you. afford to buy from home,” Twigg said.
Estate agents advise hiring local experienced agents in the area to get better value and also to avoid a growing number of home buying scams.
“There are a lot of challenges with specific areas and where that area that house might be worth $100,000 difference from across the street and if you have an inexperienced agent representing you who can’t not identify the true value of the property, then that money will come out of your pocket,” Pepper said.
Data from the realtors associations also showed sales of 2,350 single-family homes in March alone, compared to 1,811 in February.