New condos expected to spur 2015 sales in Manatee, Sarasota
02/02/2015 18:37
MANATEE -- New condominiums are coming to Manatee and Sarasota counties this year because their builders know they have buyers. Never mind that 2014 was a bit of a slow sales year.
Developers and real estate agents say new condo units under construction will sell briskly in the two-county area in 2015. Although 2014 saw a lull in condo sales, the new inventory is expected to bring out buyers who waited out the condo market crash during the recession.
"People want that product," said Kathy Valente, a Realtor with the Bradenton office of Michael Saunders & Co. "I think we have a really nice demand from people up north."
That demand will have to prove itself out this year. In Manatee County, sales of condos and townhouses dropped 5 percent from the year before to 2,188 units according to the Multiple Listing Service. Sarasota County sales were down 2.7 percent to 3,565 units.
Even so, developers don't see building condominiums as a risk. Mike Filburn, chief executive of Palma Sola Bay Club condominium developer Prospect Real Estate Group, said 2015 is the right time to build and sell condos. Interest rates on construction loans are low and buyers are able to get financing. He expects to sell out his company's 207-unit, $80 million complex on the shores of Palma Sola Bay within three years.
"There's also a need right now," Filburn said. "There's a lot of people who are looking not necessarily to be in a house."
Two of those people are George and Shirley Leonard. The couple sold their Sunset Estates home in Bradenton and purchased a
Palma Sola Bay Club condo unit in July for $430,000. In their 70s, the Leonards started looking for a condo because they wanted to be able to travel without worrying about home maintenance.
"You get to the age where you want to back off on things and not worry about the swimming pool," said George Leonard.
The price of worry-free living in new construction units ranges from the $300,000 price bracket into the millions. Condo developments under construction include the Palma Sola Bay Club, the boutique luxury Infinity building on Longboat Key and the $300 million, 141-unit downtown Sarasota high rise The Vue.
Even more inventory is in the planning stages. In Manatee County, projects in development include condo units in the growing Harbor Isles community in Bradenton and proposals to build five- and seven-story condo buildings in the heart of Lakewood Ranch.
The Leonards bought at a price point that saw fewer sales in 2014 than the year before in Manatee County. The highest percentage sales gains for condos and townhouses occurred between $600,000 and $1 million in the county, according to Multiple Listing Service data, even though the most popular price range continued to be for units priced under $250,000.
Condo sales over $1 million were hottest in Sarasota County, with 117 sales. Fewer than 30 units in the same price range sold in Manatee County. The top price paid for a Sarasota County condo was $4.25 million for a unit in the Golden Gate area. The top sale in Manatee County was $1.7 million for a unit on Anna Maria Island.
Valente said those numbers generally match what she saw. The fastest-selling units in the market right now are priced between $100,000 and $200,000, she said, while some price points above that have been slow. Getting new units on the market priced above $250,000 should spur sales, and will likely increase asking prices.
