Real Estate Markets Stabilize

The National Association of Realtors indicated that nationwide the total number of homes sales was up by 5.1% in February. In March the homes sales figures were up by 3.2% on average nationwide.  In southern states sales were up 8.5% and 4% in the West.  Four factors are thought to have contributed to the upward trend in real estate sales.

1. Low prices are once again atractive to investors.
2. Banks are lending to qualified buyers.
3. Consumer confidence has risen.
4. Sellers have begun to realize that homes are only worth what buyers are wiling to pay.

If you are waiting for the market to hit bottom, you may have already missed it. Since it takes a couple of months for sales to close and for reporting of sales figures, current sales data is based on activity hat began months ago.   Right now it is a buyer’s market but buyers will loose some of their new-found leverage as prognosticators  reach consensus that the market is in recovery.

Home Builders Confidence Improves

For each of the past two months confidence among home builders has been reported to be on the rise.

Sarasota Median Home Prices

The median home price in the Sarasota-Bradenton-Venice market is now at $155,200 highlighting the area’s affordability. With the median price 40.8% below that of last year, now maybe the best time to find a great deal.

Visit www.sarasotajustlisted.com to search area homes.

British Real Estate Purchasers

Over the past few years our real estate market has been bouyed by international purchasers with strong currencies. This trend has moderated as foreign markets have also experienced market declines.  With current statistic pointing to a slowing in the rate of reductions in UK home values we may soon see an increased interest among British buyers with improving confidence in their domestic housing market.  Home prices in the UK fell 6.4% in each of  the last three months of 2008.  In the first three months of 2009 values fell an average of 3.8%.  Additional good news in UK comes from a slowdown in falling manufacturing output which saw a decline of only 0.1% in March, the smallest monthly decline in the past 13 months.

Sarasota Foreclosures

After a brief moratorium on bank foreclosures we are seeing a spike in foreclosure activity. March foreclosure activity amounts to a 40 percent increase over previous months. Other market indices point to a market recovery so current foreclosures make for wonderful opportunities for smart investing. If you are interested in purchasing distressed or foreclosed properties give me a call at 941-650-4626.

Sales of Existing Florida Homes

In the first quarter of 2008 sales of existing Florida homes totaled 25,071.  Total sales of existing Florida homes increased 25 percent to 31,412 in the first quarter of this year.  Home sales in each of the last three quarters indicate increases over the same periods in the preceding year.  Improving sales numbers regionally, nationally and locally indicate that the market is turning.  Now is the time to buy your dream home or investment property wile interest rate and values are  at their lowest.

Real Estate Appreciation & Investment

Just like other markets the real estate markets are cyclical.  We have seen a large correction as prices have fallen from the high in 2005.  What we are seeing now is an over correction.  The market will swing back.  I believe we are now at the bottom in the local Sarasota Market.  Many listed homes are still priced too high but the good deals are selling very fast as investors are picking up the distressed properties.  To the south of Sarasota Habitat for Humanity is purchasing homes fro less than they can build them and the have no labor costs.  Just as the peak prices were unsustainable the new lowest are unsustainable.  As soon as consensus is reached that the market has bottomed three years of pent-up demand will be released in a market with low prices and low interest rates which will send prices upwards.  It is obvious that prices have gone down in recent years but we have to look at the market in terms of decades.

According to the National association of Realtors, appreciation in past decades was as follows:

• 1970 – 1979 up 142%
• 1980 – 1989 up 52%
• 1990 – 1999 up 45%
• 2000 – 2008 up 42%

Our market began it’s rapid appreciation in 2003 and then declined in 2006 to 2009 but if you purchased in 2000 or 2001 you would have paid less than today’s value.  Real Estate is a long term investment and substantial tax advantages and todays low interest rates provide a great amount of leverage.  Smart money got into the past market cycle in 2002 or 2003 and sold before the peak and smart money is doing it again.

Median Home Prices Down; Sales Up

In February the median home price was $144,000.  That price is down some 43 percent from  year ago and is now the lowest price since 2001.  Pending sales in February hit the highest levels since April of 2006.  The interest rates are low, the credit markets are beginning to thaw, all of which is leading to increased sales activity.  Sales of homes in Florida increased twenty percent and 5.1 percent in the nation.

Siesta Key Condos For Sale

Currently there are 429 condos for sale on Siesta Key ranging from $135,000 to $4,250,000. The average price is $734,665. There are 25 condominium properties under contract at this time. Last year 212 condominium units were sold on Siesta Key at an average selling price of $550,258 was 88% of list price. So far this year 19 condo have been sold Siesta Key. The average selling price of condominium this year to date is $526,810. The highest sale price was $872,500 and the lowest was $195,000.

Forclosures in United Kingdom

Forclosures in the United Kingdom have increased by as much as 54%.

Sarasota Real Estate Sales December 2008

The numbers for December 2008 sales are in.  They indicate a considerable increase over December of 2007.  Total home sales in December of 2008 came in at 571 while the same period in 2007 posted only 374 sales.  The market continues to improve despite the overall economy.  December’s totals were the  twelfth consecutive month in which sales topped the 500 mark.

Sarasota Real Estate Market Improving

Recent statistics published by the Sarasota Association of Realtors indicate that the number of homes and condominiums being sold is showing signs of improvement. The absorption rate, (the number of homes sold in a month) has increased from 2.5% in November 2007 to 4.16% in November 2008.  Last year the inventory levels of available homes was equal to 39.4 months of supply by November of 2008 that number decrease to 24 months.   The total number of properties listed for sale was 9,897 in November last year, by November of this year the total had been reduced to 6,747.

Lido Key Real Estate 2008

Now that 2008 is behind us let us review the real estate activity on Lido Key.  At the year’s end there were 54 homes for sale on Lido Key ranging in price from $425,000 to $11,300,000.  The average price of homes for sale on Lido Key was $2,257,527 at year’s end.  The lowest priced canal front lot on Lido Key is $998,500.  During the course of the year that was 2008, 22 homes were sold at an average price of $2,044,659.  On average, the 22 homes sold for 86% of their asking prices.  The highest priced single family home was sold for $6,387,500 and the lowest sale was $538,000.

During 2008 there were 24 condominiums sold on Lido Key.  The highest sale was $2,375,000 and the lowest condominium sale was $185,000.  On average the condominiums garnered 87% of their asking prices.  At the years end there were 108 condominiums for sale ranging in price from $100,000 to $4,495,500.

Florida Real Estate in Perspective.

In 1958 the median value of a home was $11,800 today it is $205,500. Household median income was $4,722 and today it is $65,024. Over the years the real estate market has seen it’s ups and down. This current downturn will be like the others and home values will certainly recover and go higher than even before. Remember, it is the contrarian investor that makes money.  When everyone is trying to sell and most buyers are on the fence it is time to buy.

Siesta Key Real Estate For Sale

Currently there are 26o single family homes for sale on Siesta Key ranging in price from $269,000 to $17,500,000 placing the average priced home on Siesta Key at $1,524,539.  During this year 101 homes have been sold at an average price of $1,199,018.  The highest sale in 2008 was $8,000,000 and the lowest was $252,500.

Currently there are 380 condominiums for sale on Siesta Key ranging in price from $170,000 to $4,250,000.  The average price is $794,497.  During this year 180 condominium units were sold at an average price of $612,851.  The highest sale was $1,914,282 for a unit at The Beach Villas and the lowest priced sale was $104,500 for a unit at Ebb Tide.

Sarasota Homes Values

According to the latest Zillow Real Estate Market Reports, home values in Sarasota decreased -17.51% in the third quarter of 2008, compared to the third quarter of 2007. Nationally, home values decreased -9.7% during this same period.

Foreign Buyers for Florida Real Estate

Florida annually attracts 15% of the international real estate buyers.  Of the four US states attracting the most foreign investment, Florida garners 25.4% while California receives 8.9%, Arizona receives8.7% and Texas, 6.8%.  The number of foreign investment in Florida real estate is sure to increase.  Warren Buffet predicts that U.S. assets owned by foreigners will grow to $11 trillion over the next 10 years.

Real Estate Sales in Sarasota on the Rise.

The Sarasota Association of Realtors has reported that single family home sales for the month of September have soared to a total of 360.  That is an increase of more than 54 percent over last September.  The single family home absorption rate is now at 12 months, while the condominium absorption rate is at 27 months. The median home sale price in Sarasota Manatee dropped 29% to $200,800 by September’s end.  The  median condo prices dropped 44 percent over the previous year, to $156,400 from $280,400. In Florida, as in the nation, the number of home sales has picked up, with the Florida Association of Realtors reporting the first statewide increase in sales since year end 2005.

Sarasota Real Estate Market by the Numbers

There were 594 homes sold in August, averaging 168 days on the market.

There were 192 condos sold in August, averaging 206 day on the market.

The average sale price / list price ratio was 93%.

Currently there are 364 condominiums under contract and 1,591 homes under contract in Sarasota.

There are 6,089 homes for sale and 2,389 condominiums for sale in Sarasota county.

Sarasota Real Estate Deals for Cash

The days of easy mortgages are gone for a while and once again cash is king.  The banks tightening of lending standards has created some very nice opportunities for cash buyers.  The market is showing some sure signs of improvement.  As the recent take overs of Fannie Mae and Freddie Mac settle in the credit market will loosen and people will return to the market with easy loans.  For now cash offers will be very tempting to motivated sellers.