Real Estate Matters

A steady, unmistakable positive trend has emerged in the Sarasota real estate market over the past several months, proving true the old adage that “all real estate is local.”

The Sarasota Association of Realtors® has been releasing data and an analysis of the trends every month for the past several years, attempting to shed valuable light on the national downturn in the real estate market and its local impacts.

The media has contributed to the national real estate malaise by attempting to merge all statistics across the nation into an overview picture of the real estate market. But this methodology ignores the basic realities of real estate – local markets can and usually do move in opposite directions to the statewide and national statistics. Sarasota has been one example of a market that has made a turnaround in the past few months, and has seen sales in April and May 2009 top the 500 level for the first time in almost a year. In addition, pending sales have risen above the 900 level in both April and May – a statistic that indicates potentially stronger activity during the next 60 to 90 days, when many of these pendings will result in closed sales.

To the average newspaper reader, these local statistics might prove surprising, especially when considering the fact that most news agencies view Sarasota as part of a larger MSA

(Metropolitan Service Area), which includes Bradenton, Venice and the surrounding region. The MSA numbers are those released by the Florida Association of Realtors®, and are those most often cited in news articles. So, if Sarasota sales are up during a particular month in which Bradenton sales are down, or vice versa, the local trend for Sarasota is often skewed to the negative, or positive.

SAR always reports our member sales statistics for every month, and we pull these numbers from the Sarasota MLS. These numbers, good or bad, are released to our members and to the public prior to the date that Florida and National Association of Realtors® statistics are released.

We have been very encouraged by the recent strength of the local real estate market, and we are hopeful that this upward trend will continue as we enter the traditionally slower summer season, For example, for the April 2009 numbers, we saw higher sales along with a small rise in the median sale prices. This is an indicator of healthier market conditions returning. We’ve had many reports of high activity at open houses, and we’re starting to see more multiple offers on homes. Of course, until we get through this period of elevated foreclosures and short sales, the median sales price will remain artificially low. But we can expect those figures to return to a more historic average, with moderate property appreciation once this inventory of distressed properties clears.

This reduction in inventory has been created by a combination of fewer properties being listed, and increasing sales numbers. As the inventory continues to decline, the market will come back to more balance. And as we approach equilibrium, the buyers’ market we’ve been experiencing will be gone, and price appreciation will creep back into the market.

So, despite the continuing national recession, the Sarasota MLS statistics show a rebound throughout 2009. In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after several months of declines. The

May 2009 figures reflect this positive news, which bodes well for local real estate and the local economy in general.

Buyer opportunities abound in the current market and an example is an investor short sale offering for 15 new condominium units available at River Preserve in Bradenton. The 2 and 3 bedroom units, originally offered for prices above $240,000, have been approved by the lender for $60,000 per unit. If you or someone you know may be interested, please watch the video link below and attached bibliography link or call or email us for more information.

Cheers,

Bill Geller

Video:

Bibliography:

http://www.sarasotaandkeys.com/xSites/Agents/sarasotaandkeys/Content/UploadedFiles/Bibliography%20-%20River%20Preserve%20video.pdf