The latest report published by the Sarasota Association of Realtors shows that real estate sales in Sarasota county are continuing their upward ascent.
Here are the highlights for April 2012:
- 886 total sales transactions, the highest figure since August 2005
- Inventory is at a 10 year low: 4.7 months for single family homes and 5.1 months for condos
- Distressed sales (foreclosures and short sales) are at a 3 year low of 31%
- Average single family home prices are 21.4% higher than they were a year ago
- Average condo home prices are almost 30% higher than last year
- 1,068 pending sales which is a strong indication of future activity
So what does this mean for you as a home buyer, seller or investor?
Selling a home:
With inventory at its lowest level in years and less distressed sales to negatively impact your market value, now is a phenomenal time to put your house or condo on the market. If it is priced right and marketed well, it is unlikely to hang around for long.
Buying a home:
Mortgage rates are at their lowest since the 1950s . You’ll need to have all your ducks in a row when you find the house that you want, as homes are being snapped up quickly at the moment and prices are creeping up. Make sure you ask Murray Realty to help you work smart and negotiate effectively.
Buying to rent is a very attractive option in the current market. There is strong demand for long term rental properties as many tenants are still struggling with credit issues and are unable to get a mortgage.
So far the indications are showing the housing market has bottomed out. The National Association of Realtors reports median house prices rose in 74 of the 146 metro areas the association tracks. “Given the steadily dwindling supply of inventory and notably higher listing prices that are being negotiated today, prices are expected to show further improvements in the near future” Lawrence Yun, Chief economist of NAR, said in a statement.
The Fiserv Case-Shiller Indexes report signs of price stabilization also. Chief economist, David Stiff at Fiserv, notes that non-profit metrics like home sales volume, increased spending on home improvement and more multi-family construction indicate that the housing sector has bottomed. “We expect that home prices, which generally lag changes in sales activity by nine to twelve months, will stabilize by the end of this summer and then rise at an annualized rate of 3.9% over the next five years”.
The fact that this stabilization has happened without the support of tax credits and in spite of declining share of REO sales, is reassuring.
For the full report – news release
An article recently published in The Wall Street Journal offers some insight into whether or not you should be thinking of buying a second home in the next five years.
There is a lot to think about – with near record low mortgages rates, bargain prices and dwindling home inventories the once hard to attain second home is now at your fingertips for historically low prices. These factors have conspired to create somewhat of a buying frenzy in our perenially popular Sarasota market.
Sales of vacation homes fell 56% between 2006 and 2010, but climbed 7% in 2011, according to the most recent survey by the National Association of Realtors. Showing continued confidence in our market place.
At Murray Realty we have seen Sarasota properties receive multiple offers as well as an increase in activity in the high end market place. Waterfront properties are being snapped up at 50% of their boom value. Snow birds are feeling more confident that the market has bottomed out, therefore investing their money in a second property might be once again a sound investment.
Read Wall Street Journal’s full article
Location, location, location! This phenomenal home is situated two blocks from St. Armand’s Circle and two blocks from Lido beach – a slice of paradise in the midst of it all. The house backs on to the tranquil, open waters of Pansy Lagoon, across from the bird sanctuary which is teeming with spoonbill, ibis and a plethora of other wildlife. The house is thoughtfully laid out on a single storey, boasting 5 bedrooms and a den which capitalize on the water view. The owners undertook a million dollar renovation by Murray Homes in 2007 so the house is finished to the highest standards with rich, hardwood flooring and fine stone, top of the line fixtures and appliances. The indoor and outdoor living areas mesh seamlessly to create a single level resort-style effect so that entertaining friends or simply relaxing with family are equally effortless and enjoyable. The back deck is the crowning glory of this stunning home. There is 1200 sq. ft of covered and open deck from which to sit back and enjoy your very own resort-like setting. It is so tranquil that you can sit on the dock and hear the manatee and dolphin come up for air. The spacious spa cascades into the pool. The house is fully wired for audio visual. The fifth bedroom can easily convert to a second den or office.
Bev Murray and Jane Ebury