Real Estate Matters

Well, there are many indicators saying yes. Consider this. Pending sales for February 2009 in the Sarasota area are at the highest level since April 2006 and 100 more than 683 in January 09 and 19 percent higher than in February 2008. A recent article in the Sarasota Herald Tribune boasted that price drops and historic low interest rates are enticing buyers. Add to that, for the international buyer, the exchange rate for the euro is rising again, now at 1.34 from 1.24 at the first of March. Real estate in the United States is still a very safe bet attracting many Europeans and Canadians to our area.

This is not to diminish the fact that there are many difficulties and challenges facing Floridians and now that the Florida Legislature is in session, Florida Realtors will be meeting with state legislators this Tuesday and Wednesday in Tallahassee to insure that we work together to build a strong real estate market in Florida. As president of the Sarasota Association of Realtors I’ll be leading a delegation from Sarasota, in conjunction with the Florida Association of Realtors, to do just that. We want to ensure that legislative efforts concerning residential foreclosures, including rentals, are fair and equitable to all parties.

We want to encourage our legislators to allocate funds to prevent, combat and publicize the dangers of unlicensed real estate activity in Florida. Realizing that a strong housing market builds strong communities, we will be urging our legislators to lower taxes for non-homestead property owners and create more incentives for first-time home buyers. Also, there are several other key bills being considered that impact the Florida real estate market and we will be encouraging our representatives to vote appropriately.

Cheers,

Bill Geller

The Sarasota real estate market saw sales rise to the highest level of the year in March 2009 with a 33 percent increase over the previous month, according to figures released by the Sarasota Association of Realtors.  In addition, the median sales price for single family homes rose after steadily declining since late last year, indicating a potential sign of the bottoming of the local market.

The good news also extended to pending sales, which once again rose in March 2009 to 817.  The last time pending sales climbed over 800 was in March 2006.  Also, the total of 817 was 21 percent higher than pending sales reported in March 2008.  Pending sales have now exceeded the 500 level for the 15th consecutive month, and the statistic looks well for the next two or three months, when many of these pendings will become closed sales. 

We believe the current climate of historically low interest rates, major incentives for first-time homebuyers, and the many other government programs designed to stabilize the economy and housing industry are all having a very positive impact.  Every downturn is followed by an upturn, we know this to be true historically.  We've been through a difficult time in the real estate industry, and hopefully we are seeing the beginnings of a new, dynamic era. 

The recently enacted first-time homebuyers' tax credit of $8,000 will likely continue to boost sales this year.  Those who meet eligibility requirements and purchase a home this year prior to Dec. 1 are eligible for the tax credit of up to $8,000, and unlike the 2008 tax credit, this one does not have to be repaid. 

In addition, for March 2009, the absorption rate (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 single family homes stood at 17.1 months, compared to 24.1 months, lower than the 28.5 months in the previous month, and much lower than the 34.1 months reported in March 2008.

Cheers,

Bill Geller