Alison & Raul Elizalde

Sarasota Realtors

Alison and Raul Elizalde understand the Sarasota real estate market like nobody else. Their unique understanding comes from experience, specialized research, and deep community involvement. Their commitment to client service earned them the prestigious 5-Star Award given to the best real estate agents in Sarasota. Click here to learn more about Alison and Raul.

 

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Where is the condo glut?

If you think Downtown Sarasota is the answer, think again. Downtown Sarasota condos are actually in much better shape than others.

(By Raul Elizalde, 6/06)

Much ink has been spilled about the “condo glut” in Sarasota. Indeed, the number of Sarasota condo units has increased by more than three thousand in the last three and a half years. This rapid increase has been most visible in Downtown Sarasota area, and that creates the impression that a condo glut is affecting that area more than other areas. This, however, is not true.

Although Downtown has been very active in the new condo activity, a less-visible trend of lower-priced new condo units, many of them from condo conversions, has actually created much more of a “condo glut”. In fact, much of the increase in the number of condos for sale has taken place in the lower-priced condos, away from the downtown area.

Here are the facts: from the end of May 2005 to the end of May 2006, the number of condos for sale in Sarasota County has gone up almost five times. But the number of condos priced at less than $500,000 has increased more than seven times, as opposed to the inventory of higher-priced condos priced at $500,000 or more (most of them downtown or at the beach), which went up “only” three times.

 

Condos for sale	May 2005	May 2006	Growth
up to $500,000	219	1595	7.3 times
above $500,000	373	1176	3.2 times
All	592	2771	4.7 times

An analysis of the Sarasota County Property Appraiser’s database also reveals some interesting facts. The total number of dwelling units classified as “condominium” increased less than 8% in the three-and-a-half years from 9/02 to 3/06, whereas the number of “single family residential” homes went up by more than 14% in the same period!

 

Sarasota County	Sep 2002	Mar 2006	Growth	Annual Growth
Number of Homes	102062	116511	14.2%	3.8%
Number of Condos	41788	45057	7.8%	2.2%

Excluding the City of Northport, which went through explosive growth, the number of single-family homes in Sarasota County increased by more than 9% in that period, which is still faster than the growth of condo units.

This level of construction is in line with Sarasota’s population growth, which is less than 3% per year. Condominiums, however, seem to be growing at a lower pace than population in Sarasota County.

What this data suggests is that the Sarasota condo glut is not to be found downtown but elsewhere, in the lower-priced condos away from premium locations such as waterfront, or downtown. Many of these units were apartments converted to condos and will probably revert back to rentals by sellers who grow impatient with the slow market and increased competition. The downtown area, in comparison seems to be in relatively good shape, and this should be reassuring to prospective buyers in this vibrant area of Sarasota.

When it comes to knowing the Sarasota real estate market, Alison and Raul Elizalde have the expertise to help you understand values in today's challenging market. Our track record, added to the unsurpassed reputation of Michael Saunders & Company as the premier real estate company in Florida's Gulf Coast, give you the peace of mind you deserve, whether you are looking to buy or sell a property.

Call us today at 941-350-7904 for a consultation, and visit our website, www.SarasotaProperty.info, for monthly updates on the Sarasota real estate market.