*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®

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.

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®

Monday afternoon our RE/MAX Properties agents met at Lakewood Ranch for the announcement of the merger between two RE/MAX affliates: RE/MAX Properties and RE/MAX Gulfstream. With the strength of two powerful real estate companies pulling together in a challenging market, our customers will benefit by all-in-one, one-stop shopping of services. The new company will offer insurance, mortage and title in addtion to its traditional real estate servcies. Read entire story in the Herald Tribune. Our new name is RE/MAX Alliance Group.

According to stats released from the Sarasota Board of Realtors, seasonal buyers are returning to the area and taking advantage of the buyer’s real estate market.

Total unit sales in the local real estate market for December 2007 were up considerably over November 2007 as the buyer’s market began to gain strength with the arrival of the seasonal population. Sales figures for December 2007 also mirrored December 2006 totals.

The dramatic improvement came in total sales comparing November 2007 to December 2007, which saw a 22.7 percent improvement (347 up to 426). There were 426 closed transactions recorded in the Sarasota MLS in December 2007 - 280 single family homes; and 146 condominiums. This compares to 440 sales in December 2006 (294 homes, and 146 condos).

In addition, the overall 2007 unit sales (combined single family homes and condominiums) were down only 5.8 percent from 2006 totals, compared to an overall state sales drop off of almost 30 percent. There were 6,113 sales of homes and condominiums recorded in 2007 by local agents, compared to 6,491 sales in 2006. The condominium market actually fared better in 2007 than in 2006, with sales up 4.6 percent (2,166 compared to 2,070). Single family home sales slipped from 4,421 down to 3,947.

Historically, even with the real estate downturn, this places 2007 unit sales as the seventh highest on record based upon tabulations from the Sarasota MLS system. Sales didn’t climb above the 6,000 level until the year 2000, and this decade saw an historic sales boom from 2003-05.

The overall sales volume in 2007 stood at $2.94 billion, compared to $3.19 billion in 2006. Even considering the extraordinary boom years of 2003-05, and the recent drop in sales prices, the overall property sales volume in 2007 still ranks as the fifth highest year on record for the Sarasota market.

For the year 2007, the median condominium sales price actually went up by 7 percent, from $314,000 in 2006 to $336,250 in 2007. The 2007 figure represents the highest median condominium sales price for a full year on record for the Sarasota MLS. Condominium sales were also up for the full year (2,166 in 2007, compared to 2,070 in 2006).

For the full year, the median price for single family homes dropped from $341,000 to $303,000 (11 percent), and sales fell from 4,421 in 2006 to 3,947 in 2007 (10.7 percent). This reflects the overall weakness in the single family home market across the state and nation, and tended to pull down the overall local market. But once again, the drop has not been nearly as much as the drop seen statewide during 2007, when sales declined more than 20 percent for several months in succession.

“December’s sales figures were definitely encouraging as we enter our busiest sales season,” said Helen Sosso, 2008 SAR President. “There was even more dramatic news at the beginning of 2008, when the average 30-year fixed interest rate dropped to a three-year low, and the Federal Reserve lowered the key interest rate by .75 percent, to 3.5 percent. This bodes well for the first quarter in terms of the buyers’ ability to get a good, low interest home loan. And it makes our current buyer’s market even more enticing.”

Corrected prices in every segment of the market add up to incredible buying opportunities in 2008, Helen noted. Well-priced homes in resort-style destinations are always in demand, and there are many other factors that continue to make Sarasota a great choice for potential home buyers - the affordable cost of living, tremendous natural beauty, great education system, fabulous restaurants, recreational and cultural opportunities, safe and clean environment, and world-class health care.

The National Association of Realtors® news release on Jan. 24 acknowledged the positive sales figures in the Sarasota market.

“Many local areas continue to have healthy or improving local housing markets,” noted NAR President Richard Gaylord. “For example, we saw higher home sales last month in diverse areas such as San Antonio; Syracuse; Springfield, Ill.; and Sarasota, Fla. If you’re thinking about getting into the market as a buyer or a seller, consult a Realtor® to learn about conditions in your area - they may be considerably different from the composite national picture.”