New Construction is Up, Way Up, in Sarasota and Manatee Counties
What is one of the most memorable quotes in the 1989 film, “Field of Dreams” starring actor Kevin Costner”? “If you build it, he will come”. Do you remember that? To our younger demographic, if you have not seen this movie…you should.
As people seek to build their own dreams on the tropical fields of Florida, we are seeing a surge in new home development here in Southwest Florida, a trend that will likely continue now and into the foreseeable future. Why? Simple really. People want to live here. Why wouldn’t they? Great weather, world-class beaches, a growing economy, no state income taxes, great healthcare institutions, and oh…did I mention no snow and ice?
If you live in Sarasota or Manatee County, you do not need a statistical analysis to see that the area is booming with development and an increased population. However, if you are not from this area (which I assume many of you reading this are not), then perhaps we should take a moment to poke our heads into that statistical room and have a look.
New home starts in Southwest Florida are now at a 12-year high., with baby-boomers driving the majority of new home demand in Sarasota and Manatee counties. According to Metrostudy, there were 1,782 new local homes during the April-June period, a pace 17.2 percent ahead of last year and the highest total since the third quarter of 2006. Think about that. Over a 17% increase over last year. This is expansive growth in a very tight market, a market that is largely immune to downward trends. We saw this even during the “bust” years after the last boom. The Sarasota and Manatee real estate markets were certainly affected, but not like many other areas of Florida and the nation. How is it that the Sarasota area has such a strong real estate market?
There are many reasons for this but according to Lisa Barnott, director of marketing and communications at developer Schroeder-Manatee Ranch, “What’s helping keep our area immune from downward trends? Other markets are land-constrained and heavily regulated,” she said. “The Sarasota MSA had a great second quarter: inventories are in order, pricing hasn’t escalated and sales are brisk. We are one of the lowest-risk categories of any market.”
Think about this, two of the top five master-planned communities with the most sales in the entire United States are right here in the Sarasota Metropolitan Statistical Area (MSA). Lakewood Ranch, a planned unit development that spans both Sarasota and Manatee counties took the second spot, with 826 new-home sales during the first half of 2018. That is a 33 percent increase over the same period in 2017.
Wesr Villages, Venice, FL
Next, we have the West Villages located in Venice, Florida (south Sarasota County). The West Villages made the number 5 list on RCLCO’s list of 51 master planned communities across the U.S. This newer community reported 648 sales in the first six months of the year, a 23 percent increase from the first 6 months of 2017.
Let me leave no doubt in anyone’s minds that the Sarasota real estate market is absolutely on fire, particularly in new home starts and there are still some great deals out there. Think about this, the price range bearing the most local new home starts this year is in the of $250,000 to $299,999 range, followed by the $300,000 to $349,900 range. These are price points that most buyers will find to be within their budgets as they sit on the back lanai’s overlooking a lake or the 9th hole at sunset, favorite beverage in hand, wondering…”why didn’t I do this years ago?’
Want to know more about the Sarasota real estate market and the cornucopia of new home developments to fit your lifestyle? Feel free to contact us here at The Coffey Group Fine Homes International and allow us to help you build your “field of dreams”.
