I was playing with a new Zillow tool which documents median price histories for Sarasota .  You can view Sarasota home values, but take it with a  grain of salt, as these are median numbers, and obviously, prices vary greatly in Sarasota.  What s interesting to me is the broader perspective of looking at the price history on a 5 year and 10 year timeframe.  It does appear we have hit the bottom if you look at the long term graphical trends.

Click on Images to Enlarge
Graphs and statistics provided by the Sarasota Association of Realtors

According to the recent statistics released from the Sarasota Association of Realtors,  November 2009’s home sales in Sarasota are up 86% over the same period last year.  In November 2008, there were 311 sales posted, and this year that number escalated to 574.  There are currently 793 pending sales as well, compared to 504 last year at this same period.

The strong increase in sales clearly shows that buyers are taking advantage of market conditions to get a great buy.   Value for the purchasing dollar has not been this strong in many years in the Sarasota market.  Also, with the extension of the $8000 first-time home buyer credit, and addition of the $6500 credit for many existing homeowners, the trends will most likely continue into the next quarter of 2010.   Buyers who are searching in the under $300,000 are quickly realizing that they are many times competing with other offers.  Also, the average list price to sales price is currently 94%, so buyers taking an offer strategy of 20-30% off purchase price (which was common a year or so ago) will find themselves frustrated quickly.

Each property is different, and priced different.  Some are grossly overpriced, some are under-priced (and sell fast at or above list price) , and many are priced according to the median market price.  Taking a blanket approach to offers is a real poor strategy.   It is more important than ever to work with a dedicated agent that will help you every step of the way, including ensuring your offer finds success at a great price.

Click on Images to Enlarge
Graphs and statistics provided by the Sarasota Association of Realtors

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,w 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 which is 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

Click on Images to Enlarge
Graphs and statistics provided by the Sarasota Association of Realtors

If you have been following my statistic reports for the past 6 months or so, you will find that the news is fairly consistent. Home sales for June 2009 again show marked improvement. The Sarasota real estate market rose above the 600 homes sold level for only the second time in 26 months in June 2009, while the median sale price rose for both single family and condos.  This demonstrates a market in the initial stages of recovery. Inventory levels once again dropped, and the months of home supply on the market (a key indicator) – the number of months it would theoretically take to sell all the current properties for sale – now stands at singel digits (9.97 months for single family homes )and 16.1 months for condos.   The figures were 14.3 months for single family homes and 19.0 months for condominiums just one month ago in May 2009, and 15.2 months and 22.9 months in April 2009. The clear trend is toward the figure of 6 months, which indicates  market in balance .

The overall sales level of 610 sales included 449 single family homes and 161 condos, which bested last month’s total figure of 506 sales by 20.4 percent. June 2009 was also better than June 2008, which saw only 541 overall sales. The last time sales topped the 600 level was in May 2008, when sales hit 627. Prior to that, there were 653 sales in March 2007.

Pending sales also remained at very high levels, with 866 properties going under contract in June 2009. Pending sales have dropped off slightly from the 929 reported in May 2009 and the near record 981 pending sales reported in April 2009. But the total of 866 was 50 percent higher than the 579 pending sales reported in June 2008, and pending sales have now exceeded the 500 level for the 18th consecutive month,
and the 800 level for the fourth straight month. Generally, pendings trend downward during the summer months, the slower sales season. The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers during the month.

The inventory levels in the Sarasota real estate market in June 2009 continue to decline for both single family homes and condominium. There were 4,477 single family homes and 2,587 condos on the market in June 2009, compared to 5,380 single family homes and 2,488 condos the previous month.The overall decline was from 7,868 to 7,064 properties – a 10 percent drop.

All this is very good news that the Sarasota real estate market has great buying opportunities,  Rates are super, so it really does make sense to jump off the fence!

I was examining sales trends using Trendgraphix software, and have some interesting numbers to report. As you can see, inventory continues to decline, and overall, Sarasota has 10.2 months of inventory. This means that if no other homes were listed, it would take 10.2 months to sell the homes that are currently on the market based on current sales activity.   A six month supply is considered balanced.  If you have been reading my Sarasota statistical housing reports monthly, you will see that this number has consistently been dropping month after month. This graph supports my previous reports as well. Different price ranges of homes have significantly different months of inventory however.  Read more about that in my Sarasota Months of Housing Inventory Report which I published last month.

There were 735 homes closed in June, and 1028 that were placed under contract.  Sales activity is increasing as buyers are taking advantage of the historically low interest rates along with the special buyer incentives such as the $8000 credit for first time homebuyers.   One thing to remember as it relates to housing:  In general, as the stock market improves, the mortgage interest rates will certainly increase.  The absolute best time to buy a home which will be financed is to buy in a market where stocks are beaten up.   Inflation is certainly around the corner, mortgage rates will rise, and inventory will continue to shrink.  These factors spell out that now is the best time to buy a home.  Sellers are eager to negotiate and the conditions are great for buyers right now!

If you need help buying or selling in Sarasota, please contact me!

I had the opportunity to review the Sarasota housing statistics in more detail yesterday.  As I reported about a week ago in my May 2009 Sarasota Housing Statistics article, according to the numbers released by the Sarasota Association of Realtors, overall, there is currently a 14.3 month supply of single family homes. This number is steadily decreasing, which is a great sign. It is to be noted however that a 6 month supply of homes is considered a normal balanced market, so we still  have a “ways to go” to be balanced.  As I will discuss here, some price ranges are fairly balanced right now, and others are FAR from it. It is also great to see that the news is now starting to report the trends that full-time active professional Realtors have seen for many months now.  Just as I felt the market slowing in June 2005, and negative housing news lagged behind by several months, the same holds true now in the opposite. Positive numbers are now being reported which is great, but the uneducated seller (or buyer) can make some big mistakes if they are not working with an agent watching the numbers closely.

I received a call from a person that was having no luck selling their home. It had been on the market for over a year, and they had reduced the price several times. It was a 2400 sq ft home, and was originally priced in the 500’s, they were at 375k when the listing was taken off the market. They asked to meet with me, which I was thankful for the call.

The home was nice, the price was average for the market,  small details needed to be completed to make the home “show ready” for success.  After I reviewed the comparable sales, the sellers said “I want to raise the price, because nobody bought at the lower number, and the news seems to be indicating more activity”.

This was an interesting take on the market.  I explained that Sellers do not dictate the market, they need to come to the market.  I reviewed the months of inventory based on price ranges of homes to give the seller a clear picture of what market they are dealing with currently. “Months of Inventory” means how many months would it take to sell all the homes in a certain price category based on the level of sales we have experienced and the current inventory (assuming no other homes are added to the market!)

Here were the results as of yesterday:

As you can see, the 0-250K price range is actually almost a completely balanced market! This is the lowest this number has been in a LONG time! Most activity is happening in this price range, and really, the “steals of the century” for buyers are probably already in the past. This is a VERY important number to know if you are a seller selling in that price range, and also an important number to know as a buyer. If the home is priced well for the market, and in this price range, it will NOT be around very long!   Some buyers fail to understand this, and think nobody is buying anything (which is understandable if you were a newspaper reader!)  They may miss out on the perfect home for them because they didn’t understand the market activity for that particular price range.

Now, if you are like the seller in my example, you need to have a completely different attitude!  In the 251k to 500k price range, there is a 24.7 month supply of homes!   If that sellers home is priced average, and the home is in average condition with no negative location issues, it will take take 2 years to sell based on sales activity! (on average)  Now, does that pricing strategy of raising the price make much sense now? Knowing the numbers is extremely important.   That seller needed to make some repairs to get the home in top notch shape, and price the home BELOW the competitors in order to sell. Average market list price isn’t going to cut it unless the seller has 2 years to sell! Pricing in this category of homes is the absolute most important factor. Period!

Now, if you are a seller in the 3.1-5 million range, bunker down for a 15 YEAR market time! Is pricing important when only 1 home has sold in that price range since Jan 1? (37 added sine the same date) As Sarah Palin would answer, “You bectha”!   If the home is 5 million+, how long will it take to sell?  No one actaully knows!

If you are a potential seller and would like to meet and discuss your home, or a buyer that would like to meet and discuss your needs, contact me direct at 941-376-2455 or fill out the short form below. I will be in touch by the end of the day!

cforms contact form by delicious:days

Click on Images to Enlarge
Graphs and statistics provided by the Sarasota Association of Realtors

The statistics are in for May 2009 Sarasota Florida real estate sales:

There is more good news for the Sarasota housing market according to statistics released by the Sarasota Association of Realtors.  In May 2009, overall home sales in the Sarasota real estate market exceeded 500 for the second time since June 2008, inventory levels continue to drop (the best news we can possible receive).

The overall sales level of 506 sales included 375 single family homes and 131condominiums, nearly identical to the April 2009 numbers – 367 homes and 138 condos, respectively.  Pending sales also remained at highly elevated levels, with 719 pending sales for single family homes and 210 pending sales of condominiums in May.  The overall total of 929 pending sales is great news, with only slightly less than the April 2009 number of 981 pending sales (which was a big number not seen since the boom).  The trend for pending sales has been upward for several months. The total of 929 was 34 percent higher than the 692 pending sales reported in May 2008. Pending sales have now exceeded the 500 level for the 17th consecutive month. The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales.   Pending sales reflect contracts executed by buyers and sellers during the month.

Sarasota Homes:

There were 5380 residential homes actively listed in May 2009.  This number has been trending down for several months now.  In April 2009, there were 5569, and a year ago there were 9530 homes on the market. Great news!   If you are planning to sell, count on an average market time of 195 days (but this varies greatly depending on the price range of the house). The median price is $155,000, down slightly from the figure of $160,000 in April 2009. The median price of all single family homes sold in the last 12 months was $205,000.  The large amount of bank foreclosures and short sales by sellers are still driving prices lower, but buyer activity is picking up as we see inventory shrinking.  Until inventory gets to 6 months or less, we will most likely continue to see prices reflect the overage in supply.  Months of home supply on the market (which is the number of months it would theoretically take to sell all the current properties for sale )  now stands at 14.3 months for single family homes, as compared to 22.9 months last year April 2008.  Even comparing last month of 15.2, it appears the positive trends are continuing.  The sooner we get to 6 months of supply, the better!

Sarasota Condominiums:

The Sarasota condo market is also improving, however there is much more ground to cover in order to stabilize prices.  In May 2009,  there were 2488 condos on the market, as compared to 2635 in April.  A year ago in May 2008, there were 5112 condos on the market. Last year, there was a 24.3 month supply of condos, and now Sarasota is currently experiencing a 19 month supply. (a long way to go for a balanced Sarasota condo market, but trends are improving)  The median sales price for condominiums stood at $181,000 in May 2009, also slightly lower than last month’s figure of $182,750.   For condominiums sold in the last 12 months, the median sales price was $230,000, compared to last year’s figure of $385,000.  Naturally, prices will need to continue to decline to dry up this excess inventory.

Summary:

Historically low interest rates, the first-time homebuyers’ tax credit of $8,000, and the influence of government programs designed to ease the deep national recession have all been factors in the local real estate market recovery efforts. Those who meet eligibility requirements and purchase a home this year prior to Dec. 1, 2009 are eligible for a tax credit of up to $8,000, and unlike the 2008 tax credit, this one does not have to be repaid.   Across the nation, this has led to a surge in first-time buyers, and Sarasota has mirrored the national trend.  There is even legislation on the table to open the tax credit up to all home buyers, not just first time home buyers. I will report more on this as I receive the information.   The health of the Sarasota real estate market in May 2009 continues to improve for both single family homes and condominiums as inventories continue to decline.   This really is a great time to jump off the fence nad buy while prices are low, interest rates are low, and buyers have access to some great incentives!

Click on Images to Enlarge
Graphs provided by the Sarasota Association of Realtors

The statistics are in for April 2009 Sarasota Florida real estate sales:

Sarasota single family homes sales statistics:

If you have been tracking housing statistics for the Sarasota market, you will see that the market continues to show some very positive signs of overall improvement, primarily driven by the bank foreclosure/ short sale market. There were over 500 sales last month, a number we have not seen since June 2008. Condos continue to lag behind however, as 367 sales were single family homes.

Pending sales also support the positive trends in sales. 981 sale pendings (meaning homes under sales contract but not yet closed) are logged for April 2009. According to the Sarasota Association of Realtors, March 2009 pending sales topped 800 for the first time in three years, so the sales volume is very encouraging. The total of 981 in April 2009 was 21 percent higher than the 817 reported in March 2009, and 31 percent higher than the 756 pending sales reported last year (in April 2008).

Some other interesting numbers: There is a 56.6% reduction of inventory over last year in the single family homes category. The combination of more homes selling, and unrealistic sellers pulling property off the market means good things for market balancing efforts. Median price of homes rose over 5% over March’s average of $155,125 to $160,000 (but, it surely sank when comparing the median price of $285,000 at the same time last year). Lesson to be learned: Sellers really need to be realistic and not dwell on the past, or they will be an unsold statistic. There is currently a 15.2 month supply of inventory (which means if there were no more homes listed at all, it would take 15.2 months to sell the current inventory) One thing to consider though, is this is the ENTIRE market covering all price ranges. Homes in the 100-200k range are selling much faster than 15.2 months. The higher end priced homes will add many months to “average” numbers. Finally, homes are selling, on average, at about 92.4% of list price.

Sarasota Condominium Sales Statistics:

Sarasota condominiums are making some sales headway as well, but not at the pace that the single family homes are selling. There is currently a 19.1 month inventory supply, and the median price of Sarasota condos is $182,750. (interestingly, the median price was $166,750 last month, but I can assure you that the prices are not appreciating yet, not with a 19 month inventory supply) Last year at this time, the median priced condo was $235,000, so the prices have dropped quite a bit, and will continue to do so in my opinion until inventory levels get down under double digits. There are 203 condos that sold in April 2009, which is just about the same level as last year. Market time is longer for condos over single family homes as well, at about 206 days vs. days for homes. If you are looking to buy a condo get-away, this is still a huge opportunity to purchase in a buyer’s market. Get yourself a great deal!

Summary:

Inventory in the single family homes continues to drop, so if you are thinking of buying, try to jump in while the interest rates are hovering around 5% for qualified buyers. Realistic sellers are definitely willing to deal, and if you are a first time home buyer, you even have an $8000 government tax incentive (but you must buy before December 1st 2009). This is really the time to act if you have been on the fence for awhile. If you have any questions, please call me!

Information Source: US Census Bureau

Click on Images to Enlarge

The statistics are in for March 2009 Sarasota Florida real estate sales, and again, some interesting news:

Sarasota single family homes sales statistics:

In March 2009, The Sarasota real estate market saw sales rise to the highest level of the year in March 2009. This was a 33% improvement over the next best month in the past twelve. Banks are the primary force pushing these numbers up. They are finally getting serious about liquidating their inventory (not so for short sales though). In addition to this encouraging number, the median sales price for single family homes rose after steadily declining since late last year, indicating a potential sign of the bottoming of the local market.

Where is the bottom (No one knows for sure) but as I have been reporting for the past several months, all indicators are telling us that inventory is continually reducing, which means we are finally heading in the direction towards a more balanced inventory level.

Sarasota experienced 6042 active for sale single family home listings in March which equates to a 17 month inventory. A 6 month inventory level is the standard for a “balanced market”. (whatever that is…I haven’t seen it since 2001). What I will say is that even this number is improving. It was a 21 month inventory level just two short months ago. Inventory totaled 6266 in February, and 6319 in January, so our 6042 homes for March is still trending the right way for several months in a row! There were 353 homes sold in March with a median price of $217,000. Homes are typically selling at about 92% of list price. (that’s not what the initial offers are though, That I can say with certainty!)

Sarasota Condominium Sales Statistics:

As reported previously, I stick to my comment that Sarasota condominiums still have a lot of ground to make up before the market balances.  There is a 21 month inventory, the median price is $256,000, and they are selling at about 90% of list price in general.
On average, Sarasota condos are taking about 186 days to sell. If you are looking to buy a Sarasota condominium, you are in a huge negotiating position. If you are selling, make sure you are pricing more aggressively than anyone else in your building! Buyers will not tolerate a “premium price” Heck, they won’t tolerate a mid range price. A matter if fact, if it doesn’t say “BANK OWNED” somewhere in the description, as a seller, you are already behind the 8-ball! You need a strong Realtor more than ever!

Summary:

Price your home right, market it in the best condition possible (time to really scrutinize the house…because the buyers will), and find yourself a real aggressive agent that is a go-getter. Homes are selling as you can see, but you must be aggressive! You need aggressive pricing, aggressive representation, and a great marketing plan.