Sarasota Real Estate News

The Sarasota Board of Realtors just released their monthly statistics to the press at 11:00 am. Buyer note the last paragraph of the report regarding inventory levels of homes available for sale.

Sarasota market sees slower summer sales in June 2008, but high pending sales figures indicate stronger market ahead
The Sarasota MLS saw a slight dip in sales for June 2008 compared to the previous month, and home prices continued to normalize as the local market entered the slower summer sales season.

Overall sales stood at 559 in June - still one of the highest months for sales during the past year, but lower than the May total of 627 sales. Single family home sales in June 2008 stood at 411, matching the level from June 2007. But condominium sales dropped to 148 from the previous year’s total of 186. Sales had been increasing each month in 2008 prior to the June dip, from 329 in January to 627 in May.

Sales prices saw a decline in June, dropping to a median of $250,000 for single family homes, and $275,000 for condominiums. The price for homes was $274,500 in May, and $367,250 for condominiums. The median sale price for condominiums had been in the mid- to upper- $200,000 range for the entire year with the exception of the May spike.

“Normally, we see a decline in sales as the summer season begins,” said Helen Sosso, 2008 SAR President. “This year, the decline has not been very sharp, and we have seen pending sales remain at a very high level. So there is evidence that we won’t experience a lengthy or deep lull in sales activity. The Sarasota area real estate market is continuing to demonstrate resilience in a down cycle, and we all know why. This area remains a prime relocation spot for families and businesses, and our cultural, geographic and environmental assets are a natural magnet, both across the nation and in the international arena.”

The June 2008 report continued to show strength in pending sales, which stood at 698 - the second highest level since June 2006. Last month’s pending sales stood at 692, the highest in the period. In June 2007 only 543 pending sales were reported. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings in upcoming months and an improving market in the mid-summer months.

Inventory levels were lower in June 2008 for the fourth consecutive month, and are the lowest they have been since February 2006. Still, with 9,108 single family and 4,765 condos listed, buyers continue to enjoy an abundant selection of more affordably priced housing to review and purchase. As in the past few months, the reduced inventory has resulted from a combination of fewer new properties being listed, and higher sales numbers. As the inventory continues to decline, the market will return to a more historical balance. And as the market approaches equilibrium, the buyer’s market we’ve been experiencing will vanish, and price appreciation will return to the market.

June 26, 2008

*The Sarasota Board of Realtors issued this press release today. The market continues to strengthen in the Sarasota area and as inventory levels lower and prices are stabilizing.

Sarasota market hits highest sales figure since March 2007
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.

“This year, the Sarasota real estate market has been a beacon of hope as the state and national markets continue to struggle,” said Helen Sosso, 2008 SAR President. “I believe our local agents have embraced the concept of a buyers’ market, and educated sellers on the realities of pricing. We still have advantageous interest rates, and our communities’ natural and cultural amenities always attract buyers.”

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.

Sarasota Association of REALTORS®

Sarasota’s Season of Scuplture 2008 Huge Success

It’s so exciting to see the new scupltures on display when they arrive at the Sarasota Bayfront. This season was just as exciting and visitors from all over the world have come to the waterfront to view the sculptures. Work starts this morning to dismantle the pieces except for the seven-story “Star Pointer” which will remain in Sarasota until March. Star Pointer was created by internationally known scuptor, John Henry. Read Sarasota-Herald’s article.

The Sarasota Board of Realtors just released this press release today:

May 23, 2008

Sarasota market hits highest sales figure since June 2007

Home sales in the Sarasota MLS for April 2008 stood at 567 - the highest level in 10 months, and approximately 72 percent higher than the sales in January 2008. In 2008, sales have been progressively stronger month by month, possibly due to the influence of the new property tax portability law adopted in late January. Sales have climbed from 329 in January to 423 in February, then 514 in March.

Bucking the trend of dropping median sales prices for single family homes, April also saw the median sale price rise to $285,000 from $266,750 in March - about a 7 percent increase.

Condominium sales prices have shown a decline of about 8 percent since the first of the year, but they are also beginning to trend upward and have remained at relatively high levels for the Sarasota market. The median sale price for a condominium stood at $277,000 in April, about 18 percent higher than the $235,000 median sale price in March, but roughly 8 percent off the 2008 peak of $303,500 in January.

“We are very fortunate to live in a beautiful, vibrant community, with world-class culture and amenities,” said Helen Sosso, 2008 SAR President. “These obvious factors continue to enhance the value of local properties, and we are seeing this reflected in our stronger sales figures. In addition, it appears we are beginning to see the effects of the recent state legislation which made it easier for families to upsize or downsize, without such a dramatic impact on their property taxes. Portability will likely continue to be a factor as we move forward in 2008.”

The April 2008 report continued to reflect strength in pending sales, which stood at 765 - the highest level in the past year. In April 2007 pending sales were at only 609. 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 April 2008 at 9,830 single family homes, compared to 10,443 in April 2007. Condominium levels also decreased from the April 2007 level of 6,344 to 5,608 in April 2008. Lower inventory normally means a tighter selling market, which tends to put upward pressure on prices over time.

Declining inventory is one of the indicators that a market is beginning to return to a more normal, balanced state. In fact, the Sarasota MLS statistics reveal a lower level of new listings on the market, combined with higher unit sales, which means the inventory is declining for two reasons and should more quickly reach a healthy equilibrium.

The days on market, which translates to the average time it took to sell a property, was at 166 days for single family homes in April 2008, slightly higher than the 158 days in March 2008. The figure has been steadily in the 158 to 160 range throughout the year. Average days on the market for condos was at 189 in April 2008, lower than the 192 figure in March 2008, and much lower than the 203 days reported in February 2008. The days on market reflects the pace of sales.

In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before.
In an article in the Wall Street Journal last month by Cyril Moulle-Berteaux, a managing partner of Traxis Partners LP, a hedge fund firm based in New York, the author puts together a thought provoking piece headlined “The Housing Crisis Is Over.”

In the article, he defined the basic elements of the housing boom, and the historic trends that follow such a boom and return to normalcy. He concludes that the national housing market is bottoming out right now, and says the return of affordability to the market makes a recovery an almost certainty.

He predicts the nationwide home inventory will drop significantly by the end of 2008, and this shift will begin to be reflected in prices.
In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after a few months of declines. The April figures reflect this new reality.

Sarasota Association of REALTORS®