SARASOTA, Fla. — In its most recent Emerging Housing Report Index, The Wall Street Journal and Realtor.com ranked the North Port-Sarasota-Bradenton area No. 3 when it comes to real estate growth and the number of people moving to the area.
The trend has helped drive up the cost of single-family homes. The median home price has hit the $500,000 mark which is a record high, according to the Realtors Association of Sarasota Manatee. That number is up 29-percent from March 2021.
Local realtors said new home buyers looking to call Sarasota or Manatee County home, would have to expand their budget extensively if they are looking for an average single-family home. They also said, due to supply chain issues, contractors and developers aren't able to get more houses on the market quickly enough to meet the growing demand.
"The long delay of the supplies and the excuse after excuse is just mind-boggling and that's what that's the only thing, I'm tired about," said Jeff Kramer who recently purchased a home in Nokomis. Kramer, who had previously spent his childhood vacationing in Sarasota, said he and his wife wanted to get ahead of retirement and relocated from St. Louis.
"We wanted something that would match our lifestyle from back home, but also something tropical, we wanted palm trees obviously, we wanted a pool, but also the element of modern flare as well as the storage facility that we would need," Kramer said.
But, after a long and difficult search process that was rife with competitive and often disappointing bidding challenges, many new and potential home buyers are feeling the brunt of delays in supplies to finish their new or desired homes.
"New construction was going to cost a lot of problems and a bunch of timeline issues. My children we're going to be halfway through high school before that home would even be completed," said Kate Vanderpool of Kansas. Vanderpool recently purchased a new home in Sarasota because of her job, which is based in Tampa but is yet to move in as contractors complete the final process.
The data, which was put together by the Realtor Association of Sarasota and Manatee, and published by the Florida Realtors Association, showed the area recorded a 29.9-percent increase year-over-year, for an average single-family home price of $500,000 in March. The group said the average single-family in Sarasota County specifically rose by 28.4-percent to $487,500, while the median price recorded for Manatee County was $525,000 with a 32.9-percent jump.
While Kramer and Vanderpool were well aware the cost of homes in Sarasota was on the higher side, they were alarmed at the cost in comparison to square footage and what they would get for the same amount in other areas.
"Our budget was pretty much 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," Kramer said.
"There is definitely going to be a struggle for people who are earning at a certain level and that's sad. There are some people that are gaining a lot by having a lot of equity but if they were to sell their house, could they even afford another house. I do see that there is a problem but I don't know how to correct that," Vanderpool said.
Realtors in Sarasota said, aside from the influx of new residents, demand and supply issues with building materials, rising interest rates, and inflation have helped drive up prices.
"As the interest rates rise, we're pricing people out of the market anyway. The market is what it is so if you can afford it get in where you can and I think now is as good a time as any because we don't see interest rates declining in the near future," said Andrew Pepper, a realtor with Keller Williams On The Water Sarasota.
But the growing prices of average homes are deepening the affordable housing crisis in the area.
"Sometimes you could get a first-time home buyer or if a buyer here in Sarasota who's like 'I want to buy a house for $300,000', well that doesn't exist anymore," said Alexandria Twigg, also a realtor with Keller Williams On The Water Sarasota.
"There is no affordable housing here, it's just not. However when you can work with lenders who can qualify you to purchase a home you do find out that there are options out there for you to qualify to purchase at home," Twigg said.
Realtors advise engaging experienced agents local to the area to get better value and to also avoid a growing number of home buying scams.
"There's a lot of challenges with specific areas and wherein this area this home might be worth $100,000 difference than right across the street and if you have an inexperienced agent representing you that can't identify the true value of the property then that money coming 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.