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