South Sarasota Real Estate Market Trends – Florida

News for South Sarasota, FL - June 21st, 2011 4:30am
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."
... [ + Read Full Article ]

News for South Sarasota, FL - Saturday June 13th, 2009 9:28am
Home sales once again top 500 in Sarasota market. Overall home sales in the Sarasota real estate market exceeded 500 for the second time since June 2008, inventory levels dropped, and the median sale price for both single family and condominiums stabilized in May 2009. These statistics all point toward a normalization and moderation of the market following a more volatile period during the past two years. The overall sales level of 506 included 375 single family homes and 131condominiums, nearly identical to the April 2009 numbers - 367 homes and 138 condos, respectively. Pending sales also remained at highly elevated levels, with 719 pending sales for single family homes and 210 pending sales of condominiums in May. The overall total of 929 was very near the 981 pending sales reported in April 2009. The trend for pending sales has been upward for several months, with 817 reported in March 2009, when the figure topped 800 for the first time in three years. The total of 917 was 34 percent higher than the 692 pending sales reported in May 2008. Pending sales have now exceeded the 500 level for the 17th consecutive month. The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers during the month. "We are all encouraged by the recent strength of the local real estate market, and we are hopeful that this upward trend will continue as we enter the traditionally slower summer season," said 2009 SAR President Bill Geller. "We've had many reports of high activity at open houses, and we're starting to see more multiple offers on homes. Of course, until we get through this period of elevated foreclosures and short sales, the median sales price will remain artificially low. But we can expect those figures to return to a more historic average, with moderate property appreciation once this inventory of distressed properties clears. Geller noted the continuation of historically low interest rates, the first-time homebuyers' tax credit of $8,000, and the influence of government programs designed to ease the deep national recession have all been factors in the local real estate market recovery. Those who meet eligibility requirements and purchase a home this year prior to Dec. 1, 2009 are eligible for a tax credit of up to $8,000, and unlike the 2008 tax credit, this one does not have to be repaid. Across the nation, this has led to a surge in first-time buyers, and Sarasota has mirrored the national trend. The median sale price for single family homes stood at $155,000 in May 2009, down slightly from the figure of $160,000 in April 2009. The median sales price for condominiums stood at $181,000 in May 2009, also slightly lower than last month's figure of $182,750. While prices have leveled off, they are still much lower than May 2008, primarily due to the higher number of short sales and foreclosures, which have pulled down the median prices from last year's level of $274,500 for single family and $367,250 for condominiums. The median price of all single family homes sold in the last 12 months was $205,000, compared to a median of $289,000 for the 12 months ending in May 2008. For condominiums sold in the last 12 months, the median sales price was $230,000, compared to last year's figure of $385,000. The health of the Sarasota real estate market in May 2009 continues to improve for both single family homes and condominiums as inventories continue to decline. The months of home supply on the market - the number of months it would theoretically take to sell all the current properties for sale - now stands at 14.3 months for single family homes and 19.0 months for condominiums. This compares to 15.2 months for single family in April 2009 and 22.9 months in May 2008; and 19.2 months for condos in April 2009, and 24.3 months for condos in May 2008. Any number above 6 months indicates a buyer's market, while under 6 months is a seller's market, and near or at 6 months would be a market in equilibrium, with an equal number of buyers and sellers... [ + Read Full Article ]