Market Updates

Sarasota Sales Hit All Time High – Manatee Misses Mark By Just 38 Homes

By | January 26, 2015

Sarasota Prices Up Up UpTo say we were busy in 2014 is an understatement: as it turns out, we were the busiest we’ve ever been. Home sales in Sarasota averaged almost 1,000 transactions per month throughout the year – and there’s no end in sight to our current appreciation.

What Does This Mean For Me?

If you’re a homeowner in the Sarasota area then it means things are sitting pretty. The average home has seen double digit annual appreciation for three years running now and most homeowners are finding they have significant equity in their homes again. There’s limited inventory available and multiple offers for homes in lower price ranges are the norm, not the exception.

If you’re thinking about purchasing then this should be a wake-up call. Our median price right now for a single family home is $195,500. At twelve percent appreciation that means a wait of just six months will raise your expected purchase price by almost $12,000.

… OK, But What’s Going To Happen This Year?

The short answer is that home prices are likely to continue to rise as we face stunningly limited inventory and strong buyer responses to new, properly marketed listings. It’s hard to keep up with the volume of buyer calls and I’ve dedicated four full-time buyer’s agents on my team to handle the influx of buyers. The longer I can keep them busy the higher prices will go.

Long term I think more homeowners will take advantage of higher prices and lower interest rates and list their homes for sale. Most sellers will turn around and buy something else (our population density almost always goes up regardless of the housing market – why would anyone want to live anywhere BUT here??). Interest rates are under 4% for most buyers and sellers want to be able to take advantage of positive appreciation quickly on the home they move into,.

… So Does This Mean We’re In A Bubble?

There’s the million dollar question! Let’s contrast what’s happening this year with the housing bubble of ’04-’06.

During our previous housing boom most buyers were financed, and many were placed into dangerous loan products with interest-only loans and/or negative amortization; after a year of payments, they’d actually owe MORE on their home than at the beginning of the year. These days borrowers have to run a mortgage gauntlet and have to demonstrate a continued ability to repay the loan – a significant change from ten years ago.

Another major factor is the preponderance of cash buyers in our market. In some price points the buyers pay cash up to 70% of the time. That’s double the national average of cash buyers and it means that most buyers don’t just have significant equity: they have nothing BUT equity, which means lower long-term carrying costs and the ability to sit out down markets.

Prices will eventually start to slide. That’s normal, and a little stabilization is good for any housing market. I just don’t think it’s going to happen in 2015. I also don’t think we’re going to see a bubble like before – the contributing factors just aren’t there.

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Sarasota Named in Top 10 Places for Baby Boomer Home Purchases

By | December 11, 2014

Baby Boomers

Baby BoomersIn an article just published by the National Association of Realtors reports that metro areas with a lower cost of living and sunnier weather are poised to see an increased number of baby boomers moving in and buying a home as some delay retirement and remain participants in the labor market, according to new research.

NAR analyzed current population trends, housing affordability and local economic conditions in metropolitan statistical areas1 across the U.S. to determine housing markets most likely to see a boost in sales from leading-edge baby boomers2. Boise, Idaho and Raleigh, North Carolina were identified as top standouts for baby boomers for their solid job growth, share of self-employed workers and affordable home prices.

Lawrence Yun, NAR chief economist, says Florida and Arizona cities attract many baby boomers. In addition, the share of men and women working after their 65th birthday has increased3, setting the stage for elevated baby boomer buying activity in metro areas with a dynamic local economy, adequate housing supply and a lower cost of living.

“A broadly improving economy and rebounding home prices are giving baby boomers the opportunity to sell and move to support their retirement lifestyle. Furthermore, our research identified cities movers are gravitating to while still remaining in the workforce as a business owner,” Yun said.

NAR’s research reviewed 100 metro areas that have lower state taxes, solid job market conditions, and strong migration patterns (on a percentage basis) of baby boomers moving to that particular area to determine which housing markets are likely to see a boost from this generation. Cost of living, housing affordability and inventory availability were also considered.

The top markets positioned to see an influx of baby boomer homebuyers are (listed alphabetically):

  • Albuquerque, New Mexico
  • Boise, Idaho
  • Denver
  • Fort Myers, Florida
  • Greenville, South Carolina
  • Orlando, Florida
  • Phoenix
  • Raleigh, North Carolina
  • Sarasota, Florida
  • Tucson, Arizona
  • Other markets with strong potential for attracting baby boomer homebuyers include:
  • Chattanooga, Tennessee
  • Dallas
  • McAllen, Texas
  • Riverside, California
  • Tampa, Florida

“These metro areas are attractive to baby boomers because of their housing affordability, lower tax rates and welcoming business environment,” says Yun. “With baby boomers working later in life, these factors will likely play as much of a deciding role of where boomers eventually retire as will areas with a warm climate or variety of outdoor activities.”

According to a NAR generational study of homebuyers and sellers released earlier this year, baby boomers represented 30 percent of all buyers, had a median household income of $92,400 and bought a home that cost $210,0004.

NAR also recently analyzed current housing conditions, job creation and population trends to determine the best markets for aspiring, leading edge millennial homebuyers. Visit www.realtor.org/millennials to find out more about millennials and homebuying.

To view the full article visit http://www.realtor.org/news-releases/2014/12/nar-identifies-top-metro-areas-poised-for-uptick-in-baby-boomer-home-sales

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Real Estate Sales in Sarasota Continue on Record Pace in October

By | November 20, 2014

House Upward Graph

House Upward GraphThe Sarasota Association of Realtors just released the sales statistics for the month of October which show that the market remained on record pace with 1,011 property transactions recorded for the month – the fifth time the 1,000 level has been reached in the past eight months. The total was 23.3 percent higher than October 2013’s sales of 820, and also 8.2 percent higher than the September 2014 sales of 934. Sales for the first 10 months of the year now stand at 9,795, or 417 sales over last year’s total. Sales in 2013 wound up as the second highest level in the county’s history. If sales continue at this pace, 2014 could surpass the historic year of 2004, when 11,482 sales were recorded in the county.

The breakdown for closed sales in October 2014 was 723 single family homes and 288 condos sold, according to figures released by Florida Realtors®.

To view the full press release visit http://www.sarasotarealtors.com/files/monthlystatistics/Oct2014Stats14112085925.pdf

 

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Sarasota Real Estate Statistics for September 2014

By | October 22, 2014

business graph in blueThe Sarasota Association of Realtors just released the sales statistics for last month which show that the Sarasota County real estate market remained on pace for near record sales numbers in September 2014, ending the month with 934 closed transactions – 14 percent higher than last September when 817 properties changed hands. Sales for the first three-quarters of the year now stand at 8,784, about 200 sales over last year’s pace which wound up as the second highest sales year in the county’s history. A strong closing quarter (sales of 900 per month or higher) could push the final figure near the historic year of 2004, when 11,482 sales were recorded in the county.

The breakdown for closed sales in September 2014 was 688 single family homes and 246 condos sold, according to figures released by Florida Realtors ®. Closings were down slightly from the August 2014 figures of 698 single family homes and 277 condos sold (975 total).

The median sale price for single family homes stood at $189,000 for single family homes, off slightly from the $195,750 in August 2014 and almost identical to last September’s figure of $189,902. The condo median was $195,000, up about 10 percent from last month and up 18 percent from last September’s figure of $165,000.

The fluctuations in condominium prices have not been unusual in recent years, compared to the steadier nature of the single family home market, and tend to reflect the buying tendencies of investors in the market. The median sale price for the 12-month period ending in August, which moderates monthly swings, was $196,000 for single family homes, 10 percent higher than last September’s 12- month period of $178,000. For condos, it was $180,000, up about 12.5 percent over last September’s 12 -month period of $160,000.

To view the full press release from the Sarasota Association of Realtors visit http://www.sarasotarealtors.com/files/monthlystatistics/Sept2014Stats14102194502.pdf

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Sarasota Real Estate Statistics for August 2014

By | October 2, 2014

graphThe Sarasota Association of Realtors recently released the sales statistics for the month of August 2014 which show sales remaining strong during the month. Homes and condos continued to sell at a brisk pace in Sarasota County in August, once again nearly reaching the 1,000 level with 975 closed transactions. The eight-month total from the start of the year now stands at 7,850, about 100 sales ahead of last year’s near record totals.

The breakdown for closed sales in August 2014 was 698 single family homes and 277 condos sold, according to figures released by Florida Realtors®. Closings were up 5 percent from last month (July), when they hit 928, and up 1.8 percent from August 2013, when there were 957 closings.

The median sale price for single family homes stood at $195,750 in August 2014, down slightly from the July figure of $201,000, and almost identical to last August’s figure of $195,000. The condo median was $177,000, down 16 percent from the July 2014 figure of $205,000, but almost 10 percent higher than last August, when the median sale price was $161,000. The fluctuations in condominium prices have not been unusual in recent years, compared to the steadier nature of the single family home market, and tend to reflect the buying tendencies of investors and the “downsizing” couples seeking a smaller abode.

To view the full press release and statistical charts visit http://sarasotarealtors.com/files/monthlystatistics/Aug2014Stats14092283021.pdf

 

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Sarasota Real Estate Sales Stastics

By | August 21, 2014

House Upward Graph

House Upward GraphThe Sarasota Association of Realtors just released the sales statistics for the month of July which show property sales in Sarasota County almost reached the 1,000 level for the fifth straight month in July 2014, falling just short at 928 closed transactions. In the county’s history, only once has such a five-month hot streak been accomplished – from March through July 2004 – falling just short this year and in the 2005.

The breakdown for closed sales in July this year was 643 single family homes and 285 condos sold, according to figures released by Florida Realtors ®. Closings were off 11.4 percent from last month (June), when they hit 1,048, and down about 4 percent from July 2013, when there were 969 closings.

Sales the first seven months of 2014 remain ahead of the near record sales pace of 2013, an historic year for property sales in the county with the second highest number of sales in SAR’s 91 year history. The first seven months of 2014 saw 6,875 sales, compared to 6,786 last year at this time.

To read the full press release visit: http://www.sarasotarealtors.com/files/monthlystatistics/SARJuly2014Stats140821113558.pdf

 

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Hot Streak Continues for the Sarasota Real Estate Market

By | July 22, 2014

The Sarasota Association of Realtors just reported that for the fourth straight month, property sales in Sarasota County topped 1,000 in June 2014, continuing a hot streak and signaling burgeoning strength in the local real estate market.

Closed sales in June this year totaled 1,048, an improvement of 5.1 percent from the June 2013 figure of 997 sales. The breakdown was 727 single family homes and 321 condos sold, according to figures in the My Florida regional MLS system. Closings were off slightly from last month (May), when they hit 1,100 exactly.

The first half of 2014 remains ahead of the near record sales pace of 2013, an historic year for property sales in the county with the second highest number of sales in SAR’s 91 year history.

To view the full press release visit http://www.sarasotarealtors.com/files/monthlystatistics/June2014Stats14072295653.pdf

 

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Sarasota Real Estate Sales Strong in May

By | June 25, 2014

a-housing-graph

a-housing-graph

The Sarasota Association of Realtors just released the sales statistics for the month of May which show the early summer started as hot as the spring in Sarasota County for property sales, with exactly 1,100 closed sales reported in May 2014 – 747 single family homes and 353 condominiums. The figure was slightly lower than April’s total of 1,195, and also slightly lower than last May, when 1,127 closings were reported in the My Florida Regional MLS system. The first five months of 2014 remain ahead of the scorching pace of 2013, an historic year for property sales in the county with the second highest number of sales in SAR’s 91 year history.

“Sarasota County real estate is such an amazing success story in the past two years, particularly coming from where we were in 2010,” said Sarasota Association of Realtors ® President Peter Crowley. “I think this is a tribute not only to our home market, which is one of the best in the nation, but also to our collective group of SAR brokers and agents who have truly upped their game. We emerged from a tough environment and are now leading the pack.”

Click here for the full press release http://www.sarasotarealtors.com/files/monthlystatistics/May2014Stats14062335206.pdf

 

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April was a busy month for real estate transactions in Sarasota

By | May 20, 2014

House Upward Graph

House Upward GraphThe Sarasota Association of Realtors just released the sales statistics for the month of April which report that Sarasota County saw the second highest level of sales in its history in April 2014 – a total of 1,195 closed transactions recorded in the My Florida Regional MLS system. That figure was topped only by the 1,223 sales reported a decade ago, in April 2004, just preceding the real estate boom that saw rapid price escalation.

The other months close to that figure were in the spring and early summer months of 2004 and 2005, and in March, April and May of last year. In April 2014, 759 single family home sales closed, and 436 condo sales were completed. The totals were higher than March figures, (698 and 352, respectively) and last April’s figures (703 and 429, respectively).

To view the full press release visit http://www.sarasotarealtors.com/files/monthlystatistics/April2014Stats140520125706.pdf

 

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March Real Estate Statistics for Sarasota

By | April 29, 2014

a-housing-graph

a-housing-graphProperty sales in Sarasota County for March 2014 topped 1,000 for the first time since May 2013, repeating a spring sales surge witnessed in the past few years. In addition, distressed sales remained far below the levels experienced four years ago (see P. 14 article), indications of a strong market returning to historic norms.

Median sale prices for single family homes and condos also continued to reflect a stable market, with no signs of wild price swings. Single family prices have been remarkably even for the past 12 months, while condo prices have also stabilized.

To view the full press release visit the Sarasota Association of Realtors website at http://www.sarasotarealtors.com/files/monthlystatistics/March2014Stats140422102558.pdf

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