Real Estate Matters

Sarasota market hits highest sales figure since March 2007
June 26th, 2008 4:13 PM
More encouraging information was released from the Sarasota Association of Realtors today with May 2008 sales figures. 
Home sales in the Sarasota MLS for May 2008 stood at 627 - the highest level in 14 months, and approximately 92 percent higher than the sales in January 2008. In 2008, sales have been increasing each month, possibly due to the influence of the new property tax portability law enacted in late January. Sales have climbed from 329 in January to 423 in February, 514 in March and 567 in April. 
 
The May 2008 report continued to reflect strength in pending sales, which stood at 692 - the second highest level since June 2006.  Last month's pending sales stood at 756, the highest in the period.   In May 2007 only 541 pending sales were reported.  Like closed sales, pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pending sales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improving market in the early summer months.
 
Inventory levels were lower in May 2008 for the third month, and are the lowest they have been since February 2006.  Still, with 9,500 single family and 5,100 condos listed, buyers have a huge selection of more affordably priced housing to select from.  The reduced inventory is 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.  As we approach equilibrium, the buyer's market we've been experiencing will be gone, and price appreciation will creep back into the market.
 
In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before. In fact, Sarasota statistics have been stronger in recent months than sales in the Miami market, which is a much bigger geographic and demographic area.
 
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 figures reflect this new reality.
Posted by William Geller on June 26th, 2008 4:13 PMPost a Comment (0)

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Pending Home Sales Improving Nationally
June 17th, 2008 5:45 PM

According to a recent statement by the the Florida Association of Realtors (FAR), a modest gain in the level of home sales is possible over the next couple of months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast.  FAR stated that the Pending Home Sale Index rose 6.3 percent to 88.2 from a reading of 83.0 in March, which is the highest index figure since last October.  Lawrence Yun, chief economist for the National Association of Realtors (NAR), said that pending sales contracts have picked up notably in areas undergoing significant price drops. "Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," he said.  "Sharp price reductions are leading to a quicker discovery of price equilibrium points.  The West is already seeing year-over-year gains in pending contracts." 

Financing is still attractive for qualified buyers.  Jumbo loans are a big bargain.  A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down, however the deal disappears at the end of this year.  Interest rates remain low but according to Celia Chen of Moody's Economy.com predicts rates will hit 7 percent in mid 2009, so the time is now to drive a hard bargain for a home you really love. 

Cheers,

Bill

Posted by William Geller on June 17th, 2008 5:45 PMPost a Comment (0)

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