Real Estate Matters

Due to the fact that the Sarasota real estate market continues to be heavy with short sales and bank-owned home and condominium sales, bargains remain plentiful for buyers. According the the Sarasota Association of Realtors (SAR), distressed condo sales have lowered the overall median price down substantially, with normal arm's length sales garnering three-times as much as bank-owned properties and twice as much as short sales on average. The median sale price for distressed properties continues to be less than half as much as for normal arm's length sales, and in many cases approaching only a third as much.  Once the distressed property inventory drops, we should see a return to clear property price appreciation.

In effect, the real estate market has essentially remained the same for the last 12 months, with minor fluctuations in prices month to month.  There was an expected spike in sales experienced during the three months of the federal $8,000 homebuyer tax credit period.

The level of sales of distressed properties (foreclosures and short sales) rose in September to 54.6 percent, from last month's figure of 47 percent.  According to SAR, this was the highest percentage since the distressed market began to show dominance locally.  Distressed market sales previously reached a high just below 50 percent in late 2009, and have hovered in the range between 44 and 48 percent since that time. 

The months of inventory for single family homes in September rose to 9.9 months from 9.5 months in August.  The figure was 9.8 months in September 2009.  This figure represents the number of months it would take to sell all available homes at the current pace.  For condos, the figure rose to 15.1 months from 13.5 months in August.  Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market. 

So, if you are considering purchasing a primary or second home in sunny Sarasota (better known as paradise), the time is right now.  With low prices and historic low interest rates, the time could not be better.

Cheers,

Bill Geller