Sales in the Sarasota real estate market reach highest level in six years
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."
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."
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