While most of the country struggles with cold weather and ongoing restrictions to business operations and social gatherings, Florida has the unique advantage of being in a place that is warm, business-forward, and relatively unrestricted.
And no piece of the Florida economy reflects that more than the real estate market.
Simply put, Florida has gone from a place where people want to vacation (and eventually, maybe retire) to a place where people want to live full-time. And for our money, it doesn’t get much better than Sarasota.
Sure, we’re biased. But take a look at the numbers, and you’ll see that we aren’t the only ones.
To illustrate, consider this: Months’ Supply has fallen to a jaw-dropping 0.7 months. A crucial metric for measuring supply and demand in the real estate market, Months’ Supply explains how many months it would take to exhaust current inventory, assuming new construction halts.
Put another way, it would take a little under three weeks for Sarasota to exhaust all vacant homes if new construction work to suddenly stop. In a market where the historical Months’ Supply has been closer to six months, the current figure is almost unbelievable.
So, let’s talk trends. Exactly why is the Sarasota housing market booming, and will it last?
3 Biggest Trends Driving the Sarasota Real Estate Market
1. Florida’s “We are open” stance.
Envy—that’s the only thing that can explain the voices of friends and family who phoned during Spring/Summer 2020. Whether seeing my personal social media posts, or simply catching national headlines, it seemed everyone wanted to talk about Florida’s approach to COVID-19.
Following a relatively brief period of sheltering-in-place, the state quickly got back to a new normal. In fact, Jacksonville hosted the very first nationally televised sporting event during the pandemic—Ultimate Fighting Championship 249— on May 9th, 2020. Months later, their “bubble” approach would be replicated by other professional sports leagues, like the NBA and NFL.
In hindsight, the event made a powerful statement to the rest of the country: Florida is open for business. Coupled with headlines about open beaches, casual dining, and potentially lower risk of COVID transmission while outdoors, the Sunshine State began to look more attractive than ever.
2. A confluence of demographics and social trends.
They say timing is everything, and over the past few years society has entered a truly transformative era. Technology is rapidly evolving, to the point where dancing robots and self-landing rockets seem mundane.
What fewer people are talking about is this: About 10,000 Baby Boomers turn 65 every day. At the same time, Millennials are beginning to reach their peak earning potential. Combine those two trends with the new Work From Home (WFH) movement, and you have a very unique set of market conditions.
Sarasota caters to this market exceptionally, offering an eclectic mix of oceanfront properties, mixed-use developments, golf communities, and resort-style apartment residences. There is, quite literally, something for everyone—especially for multigenerational households.
3. Online technology is making it easier to look and buy.
Natural technology advancement, coupled with the “new normal” imposed by COVID-19, has forced businesses to adopt online tools that make it easier for consumers to access their products and services. Prospective home buyers have long benefitted from the ability to calculate and receive mortgages online, but the pandemic further accelerated things by making it easier to see properties from the comfort of your own home.
Prior to the pandemic, only the most tech savvy homeowners and listing agents entertained the idea of giving virtual home tours and Open Houses. After lockdowns rolled across the country, however, virtual showings and social media engagement suddenly became an industry standard.
