Real Estate Matters

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