Sarasota Real Estate

According to the Sarasota Association of Realtors:

Sarasota bucks national trend with best sales report in 33 months
With 648 total property sales reported in December 2009, the Sarasota real estate market saw the most closed transactions since March 2007, a 33 month span. Overall sales in December 2009 were also 52 percent higher than December 2008, when only 406 properties changed hands, and 70 sales higher than the 578 sales reported in November 2009. Median sale prices were also up last month for both single family homes and condos.
 
For the full year 2009, the trend lines have been dramatic. Monthly home sales have climbed to the high 500s and low-to-mid 600s, compared to 2008 when sales often dipped to the low 400s and even into the 300s. The overall number of closed sales in 2009 stood at 6,699, compared to only 5,459 in all of 2008, for a 22.7 percent increase. In addition, the overall property inventory has plunged from the 10,000 to 13,000 range in 2008, down to the low 6,000 level at the end of 2009.
 
For local Realtors®, the monthly and annual trend stands in contrast to the national picture. Sales nationally have slowed during the early winter months, but not in Sarasota.
 
“This is very good news, especially considering the fact that our market is showing considerable strength against a national backdrop of uncertainty,” said 2010 SAR President Erick Shumway. “Sales are continuing to rise, and we’re starting to see a return of appreciation as the available property market tightens and buyers look more toward arm’s length sales instead of short sales and foreclosed properties.”
 
Locally, pending sales stood at an even 700 in December 2009, a drop of 11 percent from the 794 in November, but much higher than December 2008, when only 571 pendings were reported. Pending sales are an indicator of current buyer activity and are a strong indicator of closed sales for the next one to three months.
 
The first-time homebuyer tax credit was extended and expanded to include many other homebuyers on Nov. 6, so the home buying sales rush could easily continue through the season and the first quarter of 2010. Recent statistics continue to point to a local market in a prolonged recovery period.
 
The median sale prices for single family homes and condominiums have apparently stabilized after the extended drop experienced in 2008. The median sale price for single family homes actually jumped by 4.7 percent to $170,000, almost identical to December 2008’s figure of $175,000. For single family homes, the median for the full year was $163,000.
 
The condominium median prices continue to see-saw, rising to $199,000 in December 2009 after dropping to $178,750 in November from the $220,000 figure reported in October. In December 2008, the median price stood at $255,000, which was somewhat of an aberration due to the low volume of sales that month. Only 80 condos were sold in December 2008, and many were in the million-dollar plus range. The median sale price for condominiums for the full-year of 2009 was $190,000. This puts December 2009 on the upside for the year in both categories.
 
Short sales and bank-owned property sales continue to impact median sale prices locally. Normal arm’s length sales bring more than double the price on average than those for distressed properties. For the full year 2009, distressed property sales accounted for 40.7 percent of all sales, compared to 2008’s total of only 21.2 percent. Thus, while the median sale prices did drop in 2009, this was due in very large part to the distressed segment of the sales.
 
The inventory level in December 2009 was at the lowest level since late summer of 2005 and the years prior to the boom period from 2003 - 2005.
 
“One of the biggest statistical positives in December was the month’s supply of homes, which fell to 8.1 months for single family homes and 12.3 months for condos,” noted Erick Shumway. “These are the lowest figures in two years. Once they reach 6 months, the market is considered to be in equilibrium between buyers and sellers. Last year at this time, the figures were 19.1 months for single family and 31.8 months for condos. This is a huge difference in only a short period of time.”
 
Looking at the complete statistical year for 2009, and the big finish seen in December, it appears the Sarasota real estate market has turned the corner and is heading toward even brighter days ahead.

According to the Sarasota Association of Realtors:

The Sarasota real estate market remains hot as temperatures cool
The Sarasota real estate market remained hot in November 2009 with overall sales nearly 86 percent higher than November 2008.  Total sales stood at 578 in November, mirroring last month’s total of 574 and much higher than the 311 sales reported in November 2008. The breakdown was 417 single family homes and 161 condos sold last month.
 
The fall has proven to be a busy one for many local Realtors®, and the trend doesn’t seem to be slowing down. Pending sales stood at 793 in November, just below last month’s total of 839, and far higher than last November, when only 504 pendings were reported. The statistic is a strong indicator for the next two or three months of sales, as pending sales are an indicator of current buyer activity. Some experts had predicted pending sales might slow because of the uncertainty over the extension of the first-time homebuyer’s tax credit. But that fear has proven unfounded in the Sarasota market.
 
The tax credit was extended and expanded to include many other homebuyers on Nov. 6, so the home buying sales rush could easily continue through the season and the first quarter of 2010. The recent statistics continue to point to a local market in a prolonged recovery period.
 
The median sale prices for single family homes and condominiums have apparently stabilized after the extended drop experienced in 2008. The median sale price for single family homes actually jumped by approximately 6 percent to $162,500 from October’s level of $151,000. The median was only 4.4 percent below the November 2008 median sale price of $170,000.
 
The condominium median prices continue to see-saw, dropping to $178,750 in November after rising to $220,000 in October. In September 2009, the median was only $162,500. In November 2008, the median sale price was $195,000, which is very near the median condominium sale price for the 11 months of 2009 ($198,500).
 
Bank-owned property sales and short sales are still accounting for almost half of the single-family home sales and a third of the condo sales in November, and still represent the biggest factor in the overall lower sale prices. For normal arm’s length sales the median sale prices are almost double the figures for the distressed properties.
 
“We are experiencing a very active real estate market during the early seasonal months, when our northern visitors and winter residents return,” said Bill Geller, 2009 SAR President. “Even during these times of higher unemployment and slower national economic activity, it’s very encouraging to see that the Sarasota area remains an attractive place to purchase a home. The statistical trends indicate the market is returning to health. Higher sales and pending sales, stabilizing prices, lower inventories - all of these numbers point to a return to a vibrant real estate market.”
 
While the inventory level rose slightly in November, from 6,226 to 6,261 properties on the market, it is still at the lowest level since late summer of 2005 and the years prior to the boom period from 2003 - 2005.
 
The “months of inventory” - the number of months it would take to sell all the available properties at the current sales rate - dropped to 14.6 months for condos. That’s the lowest figure in the past three years, and far lower than the 40.5 months reported in November 2008. The months of inventory is now 9.4 months for single family homes, slightly higher than October’s 9.3 months, but far lower than last year’s figure of 27.6 months. A figure of 6 months is considered to be a market in equilibrium between buyers and sellers.
 

According to the Sarasota Association of Realtors, October proved to be another strong month for real estate sales in Sarasota!  The extended tax credit could be a contributing factor.  Realtors are anticipating a strong season this year and have a positive outlook for the Sarasota market. 

October sales in Sarasota market continue strong pace

Strong property sales in the Sarasota market in October 2009 continued to provide ample evidence of a market in recovery, with overall sales nearly 36 percent higher than October 2008.  Total sales stood at 574 in October, compared to 364 total sales in October 2008. The breakdown was 419 single family homes and 155 condos sold last month.
 
The upward trend during the traditionally slower season could be a prelude to a busy fall and winter for local Realtors®. The overall economic recovery from a two-year recession appears to be the primary reason behind the sales spurt, along with the national $8,000 tax credit for first-time homebuyers. That tax credit was extended, and expanded to include many other homebuyers on Nov. 6, so the home buying sales rush could easily continue through the season and into the first quarter of 2010.
 
The median sale price for condominiums also surged during October to $220,000, up 35 percent from last month, but down 36 percent from a year ago. The median sale price for single family homes continued a downward trend, now at $151,000, about 8 percent below last month’s figure of $165,000, and down 12 percent from October 2008. The continuing high number of bank-owned property sales and short sales, which accounted for almost half of the single-family home sales and a third of the condo sales in October, remained the biggest factor in the overall price weakness.
 
In October 2009, bank-owned sales accounted for 22.4 percent of the overall sales, while short sales represented 23 percent of all sales. The median price of REO (bank-owned) sales was around $89,000, and for short sales was $150,000. For normal arm’s length sales the median sale price was $230,000, or almost double the figure for the distressed properties.
 
“The federal action to extend and expand the homebuyer tax credit should be a tremendous boost to our industry and the national economy as a whole,” said Bill Geller, 2009 SAR President. “The Florida economy and the Sarasota area in particular depend to a large extent on the health of the real estate industry. The tax credit is just the kind of program we all need to relieve the market of the distressed properties that are keeping our median sale price artificially low. We can see the clear and dramatic differential between the median sale price of bank-owned properties and short sales versus the median sale price of normal arm’s length sales. Once these foreclosed and distressed properties are bought up, we should see a return to a healthy, vibrant local market, with normal home price appreciation.”
 
Pending sales have now exceeded the 800 level for eight out of 10 months in 2009, after lingering in the 400 to 500 per month range for much of the previous two years. The statistic is a strong indicator for the next two or three months of sales, when many of these pending sales will become closed sales. Pending sales, which hit 839 after dropping to 799 last month, are sales where an offer has been accepted during the month, but the sale has not yet closed. Even though some pending sales never close, pending sales are an indicator of current buyer activity.
 
Most of the statistics continue to point to a market in the initial stages of recovery. Inventory levels continued to decline and are now at the lowest point since the boom ended - a good sign for a market in recovery. There are now only 3,895 active single family listings and 2,331 active condo listings, the lowest figures since late summer of 2005 and earlier when the boom first started.
 
The “months of inventory” - the number of months it would take to sell all the available properties at the current sales rate - was down for both single family and condos. The figure is 9.3 months for single family and 15 months for condos. A figure of 6 months is considered to be a market in equilibrium between buyers and sellers.