The eternal question for sellers: to sell or not to sell? With interest rates on the rise and the real estate market showing signs of shifting, it's only natural to wonder whether it's the right time to make your move. In this blog, I'm here to provide you with some valuable insights to help you decide whether to tap the brakes or hit the gas when it comes to listing your home.

Selling a home in Florida comes with its unique set of considerations, and the cyclical nature of the real estate market here can sometimes be a bit puzzling, especially if you're accustomed to the market dynamics up north. To help you make an informed decision, I'll be sharing five essential factors to weigh when contemplating the sale of your home. These insights will empower you to navigate the ever-changing real estate landscape with confidence.

When to Sell in Sarasota

The Factors to Consider.

LOW INVENTORY

In comparison to the past year or two, there's no denying that inventory levels have seen an increase. You might be wondering how this shift will impact your prospects as a seller. Well, here's the scoop: while inventory has indeed risen, it's essential to understand that it's still relatively low. We're currently hovering around the 3-month mark in terms of available inventory, which firmly places us in a seller's market territory. To put it into perspective, a balanced market for both buyers and sellers typically hovers around the 6-month inventory mark. Even though there's more inventory available now than in 2019 and early 2020, it's worth noting that the supply still falls short of meeting the strong demand within the Sarasota-Bradenton market. So, while there may be more options out there, the market remains in favor of sellers, creating a dynamic and competitive environment.

HIGH PRICES

Prices have actually seen a dip, and they're far from skyrocketing. Let's take a stroll down memory lane and look back just a few years. When you compare today's prices to those of 2019, 2020, and even a significant portion of 2021, you'll be pleasantly surprised. Yes, there has been a slight decrease in prices, but it's nowhere near a dramatic drop. In fact, you're still in a much better position if you're considering selling today than you would have been in 2019 or 2020. So, let's dispel the myth that prices are unattainable – it's a great time to explore your selling options.

LOW INTEREST RATES

It's undeniable that interest rates have seen an increase. However, when we examine this in the context of historical averages, the current rates remain remarkably low. Since 1971, the average mortgage rate has stood at 7.74%. To put this into perspective, back in October 1981, we witnessed a peak of 18.63% in interest rates. I distinctly recall my mother and other adults discussing double-digit interest rates with a sense of satisfaction.

It's important to note that while interest rates have shifted, this shift doesn't necessarily diminish the motivation of buyers. The fundamental need for housing persists, and the allure of homeownership often surpasses minor fluctuations in interest rates. Therefore, although rates have inched upwards, they still offer favorable terms when viewed within the historical context. So, I encourage you not to let these modest rate adjustments deter you from exploring your real estate aspirations.

CASH BUYERS

In the Sarasota real estate market, a substantial portion of sales, ranging from 30% to 50%, are executed through cash transactions. Interestingly, this trend is not confined to smaller properties or condos; even luxury real estate attracts cash buyers. One noteworthy advantage these cash buyers enjoy is their immunity to the prevailing interest rates.

These cash transactions bestow a sense of stability upon the market, unaffected by the ebb and flow of interest rates. While traditional buyers may find themselves swayed by rate fluctuations, cash buyers navigate the market with unwavering confidence. Their financial flexibility enables them to swiftly and decisively close deals, often securing their desired properties without hesitation.

This landscape underscores the diverse dynamics of the Sarasota real estate arena, where cash transactions play a pivotal role, offering both buyers and sellers a sense of assurance in the midst of a dynamically evolving market.

TIME OF YEAR TO LIST

One of the most common questions I encounter from sellers is the timing of listing their homes. It's a multifaceted decision, and there are various perspectives to consider. Yes, listing during the winter season, when more potential buyers are in town, can be advantageous – there's a palpable buzz in the air as people actively search for homes. However, that doesn't mean you should rule out listing in the summer. During the summer months, inventory tends to be lower, resulting in reduced competition. Surprisingly, this summer, I've observed an influx of prospective buyers in town, possibly even more than the previous winter. This could be an anomaly, or it might signal a shift in the market. What's intriguing is that those exploring homes during the scorching summer months tend to be remarkably serious about their home search compared to winter visitors who are merely passing through. Moreover, the era of virtual home buying is upon us – buyers can go under contract without physically being present, expanding the opportunities for sellers year-round. So, when it comes to the ideal listing time, it's not just about the season; it's about weighing the advantages and adapting to the evolving dynamics of the real estate landscape.

CONCLUSION

When it comes to deciding when to list your home, there are five significant factors that should guide your decision-making process. Yes, it's true that the real estate landscape today feels distinct from what it was in 2021 and 2022 – because it is different. However, it's essential to remember that those years represented a unique snapshot in history. To gain a broader perspective, let's compare the current numbers and statistics to the real estate landscape from 3 to 4 years ago. From where I stand, sellers today are in a notably stronger position. The market has evolved, and understanding these changes is pivotal when considering the best time to list your home.