Real Estate Matters

Home sales in May 2010 in the Sarasota market once again hit the highest total since 2005 and median sale prices continued the steady pace in recent months, according to the Sarasota Association of Realtors. May sales were the highest for the year and 51.3 percent higher than in May 2009, in spite of the public concerns regarding the oil disaster in the Gulf. And pending sales were once again strong, but slower than April 2010, which may be reflective of the last minute rush to beat the federal homebuyer tax credit deadline.

The median sales price for a single family home was also trending higher, up 8.4 percent from last May and up 2 percent for the last 12 months combined. Another encouraging sign is the pace of sales quickened for single family homes, with the average days on the market dropping to 168, from 195 days last May. For condos, the figure stood at 213 days; slightly higher than last May’s figure of 203 days.

The level of sales of distressed properties (foreclosures and short sales) rose slightly in May 2010 to 40 percent of the overall market, from 38 percent in April. The distressed market topped 48 percent in late 2009, so the overall trend remains downward, which is a good sign for the market returning to normal. Also, the months of inventory for single family homes in May 2010 dropped to 7.2 months, a significant drop from May 2009 -14.3 months, and now is very near equilibrium. Condos fell to 9.7 months, much lower than last May’s figure of 19 months. The market is considered to be in equilibrium when inventory reaches the 6 month level.

And according to the Sarasota Herald Tribune, foreclosures leveled off during May, the third consecutive month. The tally of filings representing the start of the foreclosure process also dropped for the third month in a row, though the reading for banks actually seizing a property did not show the same increase that it had in previous counts by California-based RealtyTrac Inc. Collectively, Manatee, Sarasota and Charlotte counties had 2,260 foreclosure filings during May compared with 2,526 in April and 2,312 a year ago, according to Realty Trac and filings that initiate the foreclosure process, “lis pendens”, totaled 917 in May compared with 1,028 in April. In May 2009, they totaled 1,668.

In spite of all these encouraging signs there is a real concern about the potential impact on the real estate market of the Gulf of Mexico oil spill. The sooner we can get that emergency under control, the better it will be for all of the areas currently and potentially being impacted. So far, along the Gulf Coast of Florida the spill has not impacted our wonderful waterways and beaches and we hope that any affects will be minimal to our area. For regular aerial cam footage of coastal beaches and waterways in the Sarasota areas go to: www.CrystalClearFlorida.com.

Cheers,  Bill

According to the latest figures released by the Sarasota Association of Realtors, property sales in April were the highest since December 2005 and 50 percent higher than April 2009.

Pending sales were the highest is four years and about 18 percent higher than last April and is a strong indicator for the next two or three months of closed sales, as pending sales reflect current buyer activity.

Also in an article in today’s Sarasota Herald Tribune, condominium sales across Southwest Florida rose by 73 percent during the first quarter from the same period a year ago.

The level of distressed property sales (foreclosures and short sales) dropped again in April 2010 to 38 percent of the overall market from 41 percent in March 2010. This downward trend is a sign that the market is returning to a healthy scenario after topping at an astounding 48 percent in late 2009. The property inventory level remained steady in April 2010 at 6,160, the lowest level since late summer of 2005.

Another encouraging sign is the months of inventory for single family homes in April 2010 was 7.3 months and is a huge drop from 15.2 months in April 2009. A 6 month level is considered to be in equilibrium between buyers and sellers market.

These are all encouraging signs of the real estate market in the Sarasota area and mirror comments made by real estate practitioners and consumers alike, which makes presenting this information a real pleasure and hopeful signs of more optimism in the future .

Cheers,

Bill Geller

According the latest statistics released by the Sarasota Association of Realtors, March 2010 property sales in the Sarasota market reached the highest total since December 2005 with overall sales 56 percent higher than March 2009. Pending sales were also very impressive with about a 30 percent increase over last March. This is a strong indicator that buyers are rushing to take advantage of the homebuyer tax credit which expires on April 30^th.

But perhaps the most telling statistic was the median sale price for both single family homes and condominiums rose in March from the previous month, and prices were much higher than in March 2009.

Another encouraging trend is the level of distressed property sales dropped in March 2010 to 41 percent of the overall market, compared to 47 percent of the overall market in February 2010. The downward trend in the percentage of short sales and bank owned foreclosure sales in the Sarasota market, if it continues, would be a indication of a market in full recovery, and should bring greater appreciation for the overall median sale price.

Also, the months inventory for single family homes was 7.2 months (the number of months it would take to sell all available homes at the current pace). This is a huge drop from February 2010, with 10.6 months and very near equilibrium. Note that last year at this time the months inventory was 17.1 months. Once the market reaches the 6 month level it is considered to be in equilibrium between buyers and sellers.

Homes in the lower price ranges have actually entered a seller’s market, with the month’s inventory supply at only 4.8 months for homes sold between $60,000 and $70,000 so far in 2010 and only 6.6 months for homes sold between $120,000 and $139,999 in 2010.

This is very encouraging news from the Sarasota Association of Realtors, and gives reason to consider buying now to take advantage of these low prices, low interest rates and attraction selection of homes to consider.

Our  next blog will take a look at the international buyer and Florida leads the nation in international buyers with Florida properties being bargains in the global market.

Cheers,   Bill

According to the Sarasota Association of Realtors, property sales are up 49 percent in February 2010 over February 2009, continuing the strong trend from January, when sales were 58 percent higher than January 09.  Distressed property sales represented 47 percent of the overall market in February 2010, nearly the same as the previous month.  And normal "arm's length" property sales continue to show median sale prices roughly 150 percent higher than distressed property sale prices. 

We are now really seeing a positive trend in the market, now with several months of increases in sales and pending sales.  Continued low interest rates, the first time homebuyer tax credit extension and low prices have all contributed to this positive trend.

With the statistics continuing to reflect a recovering Sarasota and Florida market, the Florida Association of Realtors will be sponsoring a state wide open house weekend, April 10-11, 2010.  Real estate associations from across the state will participate in this event with extra statewide media coverage, colorful balloons and other marketing events.  It will be a fun weekend and will showcase properties around the state and encouraging buyers to act before the tax credit ends the end of April