State of the Market - Fall 2018

All of the many market indicators that we analyze and consider on a regular basis at Harshman & Co. point to a healthy commercial real estate market in Sarasota at present. Thankfully, the market today is much more disciplined and lacks the over-exuberance of the years leading up to the Great Recession that began in 2008. Sound buying and lending fundamentals appear to be a hallmark of 2018. Sub-prime loans and no-money-down, no-documentation financing has vanished. Our market has experienced steady value increases over the past seven years and now, infused with new product, we are experiencing some price stabilization of most residential products. This is indicative of a disciplined market as values stabilize and increase based on supply and demand. This is to be expected at this point in a seven years-long growth cycle. We anticipate that this winter buying season will generate considerable activity across the board, especially in downtown condominiums, despite recent hikes in interest rates.