2021 Year-End & 2022 Forecast | Siesta Key Luxury Real Estate Trends
As we enter 2022, buyer interest in Siesta Key and the Sarasota area remains high and is showing early signs of continued growth. The shift in homebuyer priorities since the pandemic’s onset has led to an increased focus on destination markets such as Siesta Key, as buyers search for more space, access to nature, and lifestyle opportunities in what is considered one of the best year-round climates in the US with low taxation. Residential housing sales continued to be strong throughout the 4th quarter, resulting in 2021 becoming a record-breaking year. This quarter also saw inventory and days on market decrease, further supporting what was a very strong seller’s market in 2021. Average prices continued to steadily increase in the 4th quarter and have continued through February 2022.
With the market accelerated, I am often asked “when will it cool, and will it level off or pull back?” It is unlikely the current rate of appreciation can be sustained much longer; all indicators point to a more moderate appreciation as we move forward in 2022, but not a significant pullback. We are seeing a growing gap between “high demand” homes that sell for top-dollar overnight, versus average homes that are taking longer to sell. High-demand properties will see more appreciation in the first few months, followed by a choppy period as the market adjusts to global influences. The second half of the year should be strong if the Federal Reserve can manage emotions tied to interest rates and inflation. Another wild card is the potential impact of the midterm elections, which will also stir emotions. The 2022 market will be a direct reflection of our economy: strong but a little crazy with a lot of potential influences.
If you’re considering a move and would like to discuss detailed information about market trends in your neighborhood with an experienced professional, please contact me for a confidential consultation; I look forward to discussing your real estate goals with you.