Sarasota Real Estate Market Trends – Florida

News for Sarasota, FL - June 21st, 2011 4:28am
Sales surge continues in May; condo prices soar
The Sarasota real estate market continued its strong spring showing in May 2011, with 796 total
sales reported by members of the Sarasota Association of Realtors® - the second highest total in
the past six years.
Only the March 2011 sales figure of 800 has been higher since the end of the real estate boom of
2003-2005. Prices for both single family homes and condos also climbed in May 2011, with the
condo median sales price of $218,750 at the highest since October 2009. For single family
homes, the figure in May rose to $159,000, just under the March high of $159,250, continuing
the 2011 upward trend.
The total available property inventory dropped to 5,010, another big decrease from last month's
level of 5,258, and once again the lowest level in the past six years. The inventory reached its
apex in April 2007, when 17,089 properties were on the market.
The lower inventory, combined with the higher sales rate, has now dropped the months of
inventory to 5.8 months for single family homes and 7.4 months for condos, both figures the
lowest since 2005. The 6 month level is traditionally a point which represents equilibrium in the
market between buyers and sellers. At the point when the market was at its most unbalanced in
favor of buyers, in November 2008, the figures were 24 months for single family homes and an
incredible 41.7 months for condos. Once the figure trends downward below 6 months, buyers are
often forced to compete for properties, which generally drives prices higher.
"Clearly, we've seen an amazing improvement in our market in the past three years," said SAR
President Michael Bruno. "We have been trending in the right direction for several months now,
and we're starting to witness a return to the point where multiple buyers bid on a particular
property. As the inventory of available properties drops, competition increases for the homes for
sale, and prices naturally rise. The only thing holding back even greater appreciation appears to
be the high percentage of distressed properties."
Even that statistic is trending in a healthy direction, as the overall percentage of distressed sales
(short sales and foreclosure sales) dropped to 38 percent of the May 2011 sales. That compares
to 47 percent as recently as February 2011 and a high of 51 percent in November 2010.
The May statistics also compare favorably to May 2010, when the $8,000 federal homebuyer tax
credit initiative was helping improve local sales. The tax credit drove up spring sales last year,
but this year's numbers are strong simply on the basis of the market's wealth of quality homes
and condos. Buyers are finding tremendous values at all price ranges and are making offers.
Single family home sales stood at 546 for May 2011, roughly the same as last May (539). Condo
sales were at 250, about 10 percent higher than last May (227). Median sales prices for single
family homes was at $159,000, a little lower than last year at this time ($169,000), but higher
than last month ($155,430) and comparable to the March 2011 high of the year ($159,250). For
condominiums, the median sale price hit $218,750 in May, up from $185,500 last month, and 18
percent higher than May 2010 ($184,500).
Pending sales dropped to 841 after hitting a recent peak of 1,208 in March 2011, continuing to
reflect the seasonal population migration north. Pending sales are properties going under contract
during the month, and the statistic is a strong indicator for the next two or three months of sales,
as pending sales reflect current buyer activity. Last May, pending sales were at 857.
"We aren't seeing any lingering negative issues with our local market," explained Bruno.
"Judging from the statistics, and the continuing positive word of mouth I've been hearing from
SAR members, the Sarasota real estate market is demonstrating strength and resilience during
these difficult times."
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News for Sarasota, FL - April 14th, 2011 11:07am
Sales in the Sarasota real estate market reach highest level in six years
Total property sales in the Sarasota real estate market hit 800 for the month of March 2011 - the highest level since September 2005 when sales started to decline. The other great news in March - prices rose in double digits for both single family homes and condos from the previous month, pending sales were the highest since the real estate boom ended in 2005, and the inventory dropped to 5,501 - less than a third of the available properties on the market during the boom.
"Sarasota is clearly a recovering market," said SAR President. "Agents are very busy showing properties and writing contracts, and people are excited about our strong market rebound. Obviously, we haven't seen numbers like these in several years.
Single family home sales, at 580, were up 23 percent from the previous month, and were 5 percent higher than last March, when the tax credit spurred sales to 555. Condo sales also climbed to 220 in March 2011, up 10 percent from February, and 11 percent higher than last year at this time.
In addition to the positive sales figures, pending sales also registered above the 1,200 level in March, hitting 1,208, the highest level in six years. This year, every month has seen more than 1,000 pending sales, or properties going under contract during the month. The statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity, which has been off the charts.
The drop to the lowest inventory level in six years (5,501) could mean additional upward pressure on sales prices moving forward.
The remaining months of inventory for single family homes, the time it would take to sell all currently available single family homes at the present rate, fell to 6.0 months from 8.0 months in February. This is traditionally a level which represents the cusp of a seller's market, when buyers begin to compete for available properties and drive up prices. For condos, the remaining months of inventory dropped to 9.2 months from 10.4 months in February, also a healthy figure.
Only a short 26 months ago, in January 2009, there were 25.3 months of inventory for single family homes and 38.4 months of condo inventory. The market is considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6 month level.
Price appreciation normally follows a declining inventory and increased competition among buyers.

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News for Sarasota, FL - March 14th, 2011 1:36pm
Sales up; inventory drops to six year low in Sarasota market
The number of available properties in the Sarasota real estate market dropped to a six-year low in
February 2011, and sales were up 24.2 percent from the previous month. Median sales prices for
both single and condominiums dropped as bargain hunters continued to grab foreclosures and
short sales, which represented almost 47 percent of all sales.
Compared to this time last year, sales were up 27 percent to 673 total sales, from February
2010's total of 528 sale. There were 472 closings on single family homes and 201 closings on
condos last month by members of the Sarasota MLS.
In addition to the positive sales figures, pending sales also registered above the 1,000 level in
February, with 1,023 total properties going under contract last month. In January 2011, 1,013
properties went under contract. This statistic is a strong indicator for the next two or three
months of sales, as pending sales reflect current buyer activity.
Last February, pending sales reached 967. But that figure was pushed upward by the approaching
April 2010 deadline for the homebuyer tax credits. This year's upward trend is being fueled by
buyers of all sorts — investors, second-home buyers, and those who realize that today's lower
home prices coupled with low interest rates present buyers an opportunity not seen in years.
Lower median sales prices, which dropped slightly for single family homes (to $137,500 from
$138,700) and condos (also to $137,500 from $142,500), were the only cloud. The decreases
were likely associated with the continued price pressure of distressed property sales. Normal
arm's length sales still average nearly three times the price of distressed properties in the
Sarasota market.
On the positive side, the drop to the lowest inventory level in six years (5,864) could mean
upward pressure on sales prices moving forward, according to SAR President Michael Bruno.
"Traditionally and historically, fewer properties on the real estate market usually causes price
appreciation," explained Bruno. "It's simply a matter of supply and demand. If there are more
buyers competing for a smaller number of properties, selling prices are usually driven up.
Hopefully, we'll soon see a return to the traditional local appreciation levels of between 5 and 7
percent annually. That would represent a very healthy market."
The higher sales totals combined with the lower inventory caused a sharp drop in the months of
inventory to 8.0 months from 10.2 months in January 2011 for single family homes, and to 10.4
months from 14.1 months for condos. Only two years ago, in January 2009, there were 25.3
months of inventory for single family homes and 38.4 months of condo inventory. The market is
considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6
month level.
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News for Sarasota, FL - January 12th, 2011 11:46am
Sales surge in December 2010 and prices remain stable
The Sarasota real estate market saw a big surge in December sales, from 534 in November to 681
last month for a 27.8 percent increase. In addition, the median sales price for both single family
homes and condos was up in December 2010, indicating a recovering local real estate market.
The property sales breakdown in December 2010 was 500 single family home sales and 181
condos.
The statistics for December 2010 were even better than December 2009. The 681 total sales
reported last month topped the 648 sales in December 2009. The median sale price for single
family homes stood at $165,000, a small drop from last year's figure of $170,000, but higher
than the November 2010 figure of $160,100. For condos, the median price rose slightly to
$160,000 from the previous month's $159,000, down from last December's median of $199,000.
But condo prices have sunk below the $150,000 level several times in 2010, so the current figure
indicates a sign of improvement.
Pending sales remained strong in December 2010 at 789, compared to 764 in November 2010,
and higher than the 739 reported last December, when the market was still strengthened by the
homebuyer tax credit initiative. This statistic is a strong indicator for the next two or three
months of sales, as pending sales reflect current buyer activity.
"2010 ended with a resurgent local real estate market, and the higher number of pending sales
tells me we could see continued strength in early 2011," said SAR President Michael Bruno.
"For the second half of 2010, there was a fairly steady trend in sales and prices, another sign of
stability and recovery. Word of mouth indicates we are seeing more showings and more closings
this season than we have in quite a while. And this year, we don't have the homebuyer tax credit
to point to as a reason for the surge. Sarasota is just a great place to purchase a property."
Inventory dipped in December 2010 to 6,047 from 6,207 — the lowest since August 2010 when
6,039 properties were on the market. The higher sales volume and lower inventory levels meant
a major drop in the months of inventory to 7.8 months for single family homes (from 10.9
months in November 2010), and 11.7 months for condos (from 13.3 months in November 2010).
The market is considered to be in equilibrium between a buyers and sellers market once the
figure reaches the 6 month level
There was also more good news on the distressed property sales front, as short sales and
foreclosure sales once again fell to 44 percent of overall sales, from 46 percent last month. For
the entire year 2010, distressed sales made up 36 percent of overall sales.
"The fact that we're trending downward for distressed property sales is encouraging," noted
Bruno. "We are all hoping 2011 is a turning point and the worst is behind us. The improving
national economic picture and recent drop in the national unemployment rate are signs that the
economy is heading in the right direction."
Overall, 2010 sales were up 12.4 percent compared to 2009 — 7,603 to 6,739 total sales. The
median sale price for both single family homes and condos for 2010 stood at $163,000. For
2009, the median sale price for single family was also $163,000, and for condos was $190,000.
Sales in the Sarasota market have now risen for two consecutive years since a low point of 5,820
sales in 2008. The level of sales is now at its highest point since 2005... [ + Read Full Article ]