Market Statistics

Sarasota Real Estate Inventory Continues to Decline

By | August 16, 2011

The Sarasota Association of Realtors just released the sales statistics for the month of July. The number of units sold was slightly lower than previous months which is typical for this time of year in our area. The other item of note is the inventory of available of properties continues to decline and is now at the lowest level it’s been in the last decade. To view the complete press release with all the statistical charts click on the link below:

http://www.sarasotarealtors.com/files/monthlystatistics/SARStatsJuly201111081585211.pdf

 

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Sarasota Real Estate Sales for June

By | July 12, 2011

The Sarasota Association of Realtors report the real estate market continues healthy sales in June 2011!

Members of the Sarasota Association of Realtors® continued to sell properties at a brisk pace in June 2011 with 728 total transactions recorded last month. This marks the fourth month in the last 12 with sales exceeding the 700 level – all occurring in 2011. In addition, the median sales price for single family homes hit the highest level since last June, and the total inventory of available properties dropped to the lowest level in more than a decade, which could spur stronger competition for homes and condos.

“It is encouraging to see how the Sarasota market has continued this strong momentum in the face of continuing weakness in the national and state economies,” said SAR President Michael Bruno. “The inventory of available properties, which is lower than it has been since the 1990s, is a very important statistic. Historically, prices rise as competition for homes increases, and we’re seeing that occurring in our market. The percentage of distressed property sales is stabilizing, so prices should naturally continue to rise.”

To view the complete report with statistical information visit: http://www.sarasotarealtors.com/files/monthlystatistics/SRMAGJune2011Stats110712105200.pdf

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Has The Sarasota Real Estate Market Bottomed Out?

By | July 7, 2011

I Wear My Thinking Cap On Thursdays.

I Wear My Thinking Cap On Thursdays.

Well, it’s raining outside, which means I’m probably not going to get a whole lot of phone calls today. That’s OK – it gives me time to address some of those burning questions that have been keeping me up at night: is tau really more accurate than pi? What’s that weird smell coming from my closet? … and, perhaps most importantly, has the Sarasota real estate market bottomed out or is everyone just faking it?

Oops, just got a phone call. Looks like I only have time to answer one burning question – I guess I’ll look into the Sarasota real estate market.

A Quick Look At The Numbers

In order to get a better feel for what the market is for most people, we’re only going to look at key markers for homes priced $80,000 – $800,000. That should leave off all the garbage at the bottom end of the spectrum (which follows the ‘someone-will-buy-it-if-it’s-cheap-enough’ rule) and also the really high-end stuff (which follows the ‘I’ve-got-so-much-dough-I-can’t-ever-blow-through-it’ rule.) We’re also going to look back at only sales that have closed in the last 12 months, and we’ll compare today’s numbers to numbers from the same month range in 2005-2006, which is widely recognized as the historical height of our market. We’ll also look 10 years back – remember what THAT was like? (Hint: the Rams beat the Titans in the Super Bowl. WOW.)

Single Family Homes

Year Avg. List Price Avg. Sale Price Avg. LP/SP Ratio Avg. Days On Market Total # of Sales
’10-’11 $256,675 $237,777 93% 181 2,302
’05-’06 $366,988 $354,385 97% 71 2,583
’00-’01 $220,324 $212,673 97 70 594

 

Condos (includes apartment-style, townhouses, and villas)

Year Avg. List Price Avg. Sale Price Avg. LP/SP Ratio Avg. Days On Market Total # of Sales
’10-’11 $243,121 $223,629 92% 149 1,451
’05-’06 $334,886 $325,750 97% 66 1,782
’00-’01 $216,540 $207,562 96% 72 256

** Source: My Florida Regional MLS. All dates July 8 – July 7 of the specified years.

… So What’s It All Mean?

At first glance, we notice that the sale price/list price ratio for the past year is lower than the other two periods and the average days-on-market are much higher. That’s OK – historically, our sale price/list price ratio hovers right around 93%, so we’re actually right on par for where real estate has been locally for the past 50 years.

And the days-on-market number is a simple function of supply-and-demand – there weren’t a whole lot of sales from 2007-2008, and a ton of properties have come on the market as short sales and foreclosures, which led to an oversupply of housing. We’re through a lot of that now (no, really. Check out what Inman News says about it – over 50% of experts agree that home prices have bottomed out.) In fact, our inventory is lower than it has been since the boom. And check out the sales activity – houses are flying off the market just as quickly as they did at the absolute height of the market, and we’re not seeing any slowdown at all.

But, really, it all means nothing. If you need a house, you should buy one. Period. It’s the same now as it’s always been – real estate is real-life purchase and housing is just a basic necessity of life. Sure, there’s a ton of money to be made in it, and people will ALWAYS need a place to live. The population is still growing exponentially. Contrary to popular belief, the country isn’t about to fall of its rocker. Things are getting better again – and that makes it a prime time to buy.

Now to figure out what’s going on in my closet …

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May Numbers Continue Exceptional Spring for Sarasota Real Estate Market

By | June 16, 2011

 

The Sarasota Association of Realtors just released the sales statistics for the month of May showing 796 total sales which is the second highest total for the past six years. Prices also climbed in May and inventory dropped by 5%. For the complete report and statistics visit: http://www.sarasotarealtors.com/files/monthlystatistics/May2011Stats111061413528.pdf

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Real Estate Market Statistics for April

By | May 17, 2011

The Sarasota Board of Realtors reports that a total of 759 property sales were closed in the Sarasota real estate market in April 2011, continuing a strong spring surge that reached the 800 level in March. The recent sales rush has taken the market to the highest levels since the fall of 2005 when sales started to decline. Prices also maintained their highest levels of the year in April 2011 for both single family homes and condos, and the available property inventory dropped to 5,258, a big drop from last month’s level of 5,501, and less than a third of the available properties on the market during the 2004-2006 real estate boom.

Click here to view the complete report and statistical charts:

http://www.sarasotarealtors.com/files/monthlystatistics/SRJune2011stats110517124808.pdf

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Rising Rents Make Rentals Less Appealing

By | April 23, 2011

Apartment bargains once dominated the housing market, but those bargains have slowly faded away. As vacancies decrease and rents rise, renters are finding fewer deals.

Analysts expect vacancies to decrease even more and rents to continue to rise through 2013, as the economy continues to improve.

Rental activity recorded its best start for the year since 1999, according to Reis Inc. Vacancy rates have fallen to mid-2008 levels and rents have increased for the past five quarters, now averaging $991 per month nationwide.

Renters are finding the fewest deals along the coasts, such as New York, Washington, D.C., Boston, Los Angeles, San Francisco, Seattle, and San Jose, Calif. These cities are experiencing low vacancy rates. Also, a boost in these cities’ economies is sending rents higher. New York City alone has seen double rent increases compared to the national average and has the lowest vacancy rate in the nation.

The best rental deals can be found in Las Vegas, Tucson, Ariz., Phoenix, and several cities in Florida–all cities where unemployment and foreclosures remain high. According to Reis, Las Vegas was the only city to see rents fall last year.

However, analysts say that bargains across the country are getting fewer, and renters should expect to see an increase in rents over the next three years.

View the Top 6 Cities Where Buying Is Better Than Renting.

Source: “Rental Market Swings Back in Favor of Landlords,” MSNBC.com (April 12, 2011)

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RE/MAX Alliance Group Still the Market Leader in Sarasota, Manatee and Charlotte Counties!

By | April 19, 2011

DID YOU KNOW……… A few weeks ago the Herald Tribune published a blog that said Coldwell Banker was the local real estate market leader siting sales transaction figures that were incorrect and incomplete as they were skewed toward only one Coldwell Banker franchise.  Luckily, somehow the Trib was made aware of their mistake and last week published an apology to RE/MAX Alliance Group, and a new article that announced that WE are the true market leaders in Manatee, Sarasota and Charlotte counties!
Click on this link to read the article:  http://insiderealestate.heraldtribune.com/2011/04/07/appologies-to-remax-alliance-and-coldwell-banker-remax-alliance-is-still-the-market-leader/

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Sales in the Sarasota Real Estate Market Reach Highest Level in Six Years

By | April 14, 2011

Total property sales in the Sarasota real estate market hit 800 for the month of March 2011 – the highest level since September 2005 when sales started to decline. The other great news in March –  prices rose in double digits for both single family homes and condos from the previous month, pending sales were the highest since the real estate boom ended in 2005, and the inventory dropped to 5,501 – less than a third of the available properties on the market during the boom.

“Sarasota is clearly a recovering market,” said SAR President Michael Bruno. “Agents are very busy showing properties and writing contracts, and people are excited about our strong market rebound. Obviously, we haven’t seen numbers like these in several years. There is a buzz in the local market that’s reaching out to buyers across the nation and even internationally.”
What makes the statistics even more positive is the fact that there is no federal homebuyer tax credit initiative fueling this surge. The tax credit drove up spring sales last year, but this year’s numbers are strong simply on the basis of the incredible quality and value evident in the local real estate market.
Single family home sales, at 580, were up 23 percent from the previous month, and were 5 percent higher than last March, when the tax credit spurred sales to 555. Condo sales also climbed to 220 in March 2011, up 10 percent from February, and 11 percent higher than last year at this time. Median sales prices for both single family homes and condominiums shot up in March to $159,250 for single family homes and $173,000 for condos, representing a 16 percent and a 26 percent jump, respectively. One of the likely reasons – distressed property sales fell to 43 percent of the total, down from February when almost 47 percent of all sales were foreclosures or short sales.

In addition to the positive sales figures, pending sales also registered above the 1,200 level in March, hitting 1,208, the highest level in six years. This year, every month has seen more than 1,000 pending sales, or properties going under contract during the month. The statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity, which has been off the charts.

Last March, pending sales reached 1,060, but that figure was pushed upward by the approaching April 2010 deadline for the homebuyer tax credits. This year’s upward trend is being fueled by buyers of all sorts – investors, second-home buyers, and those who realize that today’s lower home prices coupled with low interest rates present buyers with an opportunity not seen in years.

Another indication of the very positive atmosphere in the local real estate market was the Florida Realtors® Open House Weekend on March 26-27. More than 600 open houses were advertised over the weekend in the local market, and foot traffic was very heavy, according to agents who participated.
The drop to the lowest inventory level in six years (5,501) could mean additional upward pressure on sales prices moving forward.

The remaining months of inventory for single family homes, the time it would take to sell all currently available single family homes at the present rate, fell to 6.0 months from 8.0 months in February. This is traditionally a level which represents the cusp of a seller’s market, when buyers begin to compete for available properties and drive up prices. For condos, the remaining months of inventory dropped to 9.2 months from 10.4 months in February, also a healthy figure.

Only a short 26 months ago, in January 2009, there were 25.3 months of inventory for single family homes and 38.4 months of condo inventory. The market is considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6 month level.

 “Price appreciation normally follows a declining inventory and increased competition among buyers,” explained Bruno. “I’m still hopeful that this trend, which has been evident now for several months, continues into the summer months. Last year, we saw strong activity in April, May and June, probably connected to the federal tax credit. But there is evidence the trend will repeat this year after seeing the March sales and pending sales figures. I’m very encouraged by the numbers we’re observing, and even more encouraged by the positive word of mouth I’m hearing.”

Press release from the Sarasota Association of Realtors dated April 12, 2011

For more detailed information click here for the complete press release with statistical charts.

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Florida Housing Bucks The National Trend (Again)

By | March 25, 2011

Bucking the national trend (yet again :) ), Florida’s housing market showed rising sales in February and stable housing prices.  This is indicative of where our market has been for the past 2 years.

Out here in the trenches, we can attest to the same – the market is really hot right now and buyers are facing stiff competition for the houses that are priced right and in good condition.  In addition, our inventory is now at a low not seen since the height of the bubble – leading to a LOT of pent up demand.

Courtesy the St. Pete Times:
The performance, which was better than the national picture, builds on evidence of increased stability in the state’s troubled housing market.
Sales of previously occupied homes reached 13,701 statewide, up 13 percent from a year ago and nearly 13 percent from January. In the Tampa Bay area, sales were up 16 percent from a year ago and a whopping 24 percent over the month.
Here’s the full link:
http://www.tampabay.com/news/business/realestate/home-sales-rise-in-florida-in-february-flouting-national-trend/1158717

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February ’11 Market Stats: Sales up; Inventory Drops to 6 Year Low in Sarasota Market

By | March 15, 2011

The number of available properties in the Sarasota real estate market dropped to a six-year low in February 2011, and sales were up 24.2 percent from the previous month. Median sales prices for both single and condominiums dropped as bargain hunters continued to grab foreclosures and short sales, which represented almost 47 percent of all sales.

Compared to this time last year, sales were up 27 percent to 673 total sales, from February 2010’s total of 528 sale. There were 472 closings on single family homes and 201 closings on condos last month by members of the Sarasota MLS.

In addition to the positive sales figures, pending sales also registered above the 1,000 level in February, with 1,023 total properties going under contract last month. In January 2011, 1,013 properties went under contract. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity.

Last February, pending sales reached 967. But that figure was pushed upward by the approaching April 2010 deadline for the homebuyer tax credits. This year’s upward trend is being fueled by buyers of all sorts – investors, second-home buyers, and those who realize that today’s lower home prices coupled with low interest rates present buyers an opportunity not seen in years.

Lower median sales prices, which dropped slightly for single family homes (to $137,500 from $138,700) and condos (also to $137,500 from $142,500), were the only cloud. The decreases were likely associated with the continued price pressure of distressed property sales. Normal arm’s length sales still average nearly three times the price of distressed properties in the Sarasota market.

On the positive side, the drop to the lowest inventory level in six years (5,864) could mean upward pressure on sales prices moving forward, according to SAR President Michael Bruno. “Traditionally and historically, fewer properties on the real estate market usually causes price appreciation,” explained Bruno. “It’s simply a matter of supply and demand. If there are more buyers competing for a smaller number of properties, selling prices are usually driven up.

Hopefully, we’ll soon see a return to the traditional local appreciation levels of between 5 and 7 percent annually. That would represent a very healthy market.” The higher sales totals combined with the lower inventory caused a sharp drop in the months of inventory to 8.0 months from 10.2 months in January 2011 for single family homes, and to 10.4 months from 14.1 months for condos. Only two years ago, in January 2009, there were 25.3 months of inventory for single family homes and 38.4 months of condo inventory. The market is considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6 month level.

The median price for the last 12 months stands at $160,000 for both single family homes and for condominiums. The single family figure was exactly the same as a year ago, while the condo figure dropped from last year’s figure of $185,000.

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