Real Estate Matters

The Sarasota Association of Realtors just released to the public December 2008 and year ending sales data. Pending sales rose to 571 in December as reported by members of the Sarasota Association of Realtors^®, topping the 500 level for the 12^th month in a row. Pending sales last month were much higher than the 374 reported in December 2007, which indicates that local real estate has not mirrored the national downward trend.

Pending sales reflect contracts executed by buyers and sellers. The recent numbers demonstrate a consistent, steady pattern, which means the national economic slowdown has not significantly deterred buyers in the Sarasota market.

“We are demonstrating strength in a difficult real estate environment, and that reflects on this area’s basic attractions,” said 2009 SAR President Bill Geller. “Sarasota still has the beaches, the cultural life, the great schools and wonderful climate and natural amenities. This is still paradise, and buyers have been able to take advantage of the lower home prices to make some amazing deals on quality properties.”

For the year 2008, the Sarasota market had 5,820 sales of homes and condos, just under the 6,176 reported in 2007. December 2008 saw 406 total sales, compared to 424 in December 2007. December’s total was higher than November 2008, when 311 sales were reported, a 30.5 percent increase from the late fall lull. The late summer and early fall months are traditionally the lowest period of home sales in the Sarasota market, and the recent upturn indicates the traditional season surge is beginning, even in the face of the recession and credit crisis.

One reason for this could be the historic interest rate plunge, which has seen the average 30-year fixed rates drop below 5 percent for the first time in decades.

“For customers who can take advantage of these rates, particularly first time home buyers with decent credit scores, this is an incredible time to purchase real estate,” said Geller. “With the low rates, in combination with the lower prices, buyers are able to get into their dream home with very affordable payments. We haven’t seen this convergence of attractive pricing and low interest rates for years.”

The median sale price for single family homes rose slightly in December, coming in at $175,000, compared to last month’s median price of $170,000 – a 3 percent increase from November 2008. Median condominium sales prices have been fluctuating widely throughout 2008, and settled at $255,000 for December 2008, a 30.8 percent rise over the $195,000 in November 2008. For the entire year of 2008, the single family home median sale price was $230,000, while condos were $320,000, both approximately 26 percent lower than the 2007 figures.

Another important market tracker – the absorption rate of properties on the market – continues to track lower than last year at this time for both single family homes and condominiums. Absorption rate is the number of months it would take to sell the entire remaining listed inventory in a particular category, based upon the sales for that particular month.

For December 2008, the absorption rate for single family homes stood at 19.1 months, compared to 35.1 months in December 2007. For condominiums, the absorption rate dropped to 31.8 months in December 2008, lower than the 37.2 months reported in December 2007, and much lower than last month’s rate of 41.7 months.

The January 2009 edition of Sarasota Realtor contains excerpts from the featured interview with me as President of SAR entitled "Where Do We Go From Here?".  The complete article and entire on-line magazine can be viewed from the Home Page of www.SarasotaAndKeys.com.  Select "News" button and click on "Sarasota Real Estate Magazine" .  The magazine also contains important statistics on real estate activity in the Sarasota area along with other very useful information.  The on-line magazine will be available on this web site monthly as a new service.

A marathon is a road race encompassing 26 miles, 385 yards - the approximate distance between Marathon and Athens in ancient Greece, where the legendary run supposedly originated in the first century A.D. The first competitive marathon foot race was held at the 1896 Olympics, and today more than 800 of the difficult races are held around the world each year.

Bill Geller, 2009 SAR President, has braved the marathon many times during his running career, which he began shortly after he quit smoking almost 30 years ago.

“I was told at the time that you should reward yourself when you’re able to beat the smoking habit, and running became my reward,” Bill noted. “It’s certainly a different kind of reward, but I really liked to run. I built up my distances and started running half marathons (13.1 miles), and people told me if I could run a half marathon, I could run a full marathon. So that’s what got me into the events.”

Bill has been a resident of Sarasota since 1980 and a Realtor® for more than 20 years. He is a Certified International Property Specialist (CIPS), holds a Transnational Referral Certification, (TRC) and is currently a Broker Associate with Suncoast International Realty.

Real estate is Bill’s other passion – the one that pays the bills. But he sees some similarities between the recreation of long distance running and the business of real estate. For one, a real estate transaction can often be a lengthy, strenuous, pain-staking process, much like navigating a hilly, winding marathon course. But at the end of the race or the deal is the reward – for both the buyer and seller, if Bill has done his job well.

The current economic crisis has Bill concerned, but hasn’t dimmed his enthusiasm for the future of local real estate.

“As we begin the new year, we are all anxious to see the results of the recent government financial programs, and of course the proposed lowering of mortgage rates to 4.5 percent (supported by the NAR),” Bill said. “We obviously are living in tough economic times, but during times like this there are always challenges coupled with opportunities. With short sales and foreclosure, activity has increased, and once these distressed properties are sold, we’ll move into the next phase of the recovery. At SAR, we’re trying to educate our members on how to navigate these difficult times, and help their clients make educated, intelligent decisions.”

Bill noted SAR has done a great job providing members with seminars and programs designed to address the issues impacting real estate today. From the many short sale seminars to the recent FHA home buying program, which even included a night session for the public, SAR has been “ahead of the curve,” and committed to helping brokers and agents succeed in the current climate.

“I’ve learned a lot myself, and the main thing I’ve discovered is that this remains a very attractive market, particularly with the lower prices on some high quality properties,” said Bill. “First-time home buyers in particular have never seen a better time to buy than right now in Sarasota. There are some wonderful programs available to help with down payments and mortgage rates.”

While the national and state economies have seen increased unemployment, stagnant credit markets and slower real estate sales, Bill noted that the local Sarasota market is once again weathering the storm well.

“We are still somewhat isolated here from the overall economy, because we are not as dependent on the local workforce for real estate sales as many other communities,” Bill explained. “Many of our buyers are investors, or retirees looking for a place to settle, or international buyers. Cash buyers are still looking for a safe investment, and real estate in the United States has always been that safe haven.”

Another 2009 priority for Bill will be to help forge greater cooperation between SAR and the other neighboring real estate associations, in order to bring more shared services through the economy of scale and staff cooperation.

“In these tough times, we can all benefit from exploring how we can share our resources for the benefit of our members,” said Bill. “I have been speaking to our neighbors to the north and south, and I hope to continue that dialogue. With tighter budgets, we need to make sure we continue to provide services that our members want and need, and maximize our efficiency.”

In addition to his extensive involvement with SAR, Bill currently serves on the Board of Directors of the Florida Association of Realtors®, and is a member of the International Operations Committee, International Forum Committee and Business Trends & Technology Forum for FAR. Bill was the 2002 International Steering Committee Chair for SAR. He is past-president and board member of the Brazil-Tampa Bay Chamber of Commerce, served as a three-term president of the Siesta Key Association and is past-president of the Rotary Club of Sarasota, Sunset.

And he’s planning to continue running marathons. After all, running is the reward!

Ray Porter, Director of Communications

Sarasota Association of Realtors