Sarasota is hot, hot, hot!

Sarasota sunshine is heating up and so is the local real estate market. Property sales have topped 800 for the third consecutive month, demonstrating a market that has recovered to levels not seen since the 2003-2005.

Interest rates hit record lows in May, and house prices still remain relatively low.  This has brought high sales rate and low inventory – a rare combination, which is why Sarasota is attracting buyers from across the nation, and the world.

The median sale price for both single family homes and condos remained near the highest levels of the year in May. The median sales price for single family homes was $185,000 – a 34% increase from the lows of 14 months ago. Last month’s figure was $175,000. The median sales price for condos was $180,750, a drop from April’s figure of $191,750 but a 40% increase from the low point.

The total number of distressed properties, foreclosure and short sales on the market remains around 31%, the lowest level in 3 years.  This is likely a contributing factor to the housing demand and increase in prices.

The May figures are 4.3 months of inventory for single family homes and 5.2 months’ inventory for condos. Months of inventory represents the time it would take to deplete the current inventory at the current rate of sales. Six months of inventory is classed as the market equilibrium, therefore we are now considered a seller’s market.

“I’ve been in our Association for over 15 years and inventories at this level are rare,” said SAR President Laura Benson. “The market is tightening, and when available properties are at such low levels, the result is normally greater competition for available properties. This scenario tends to escalate prices, so if you’re in the market for a home, now is the time to act.”

Jane Ebury

 

Prices keep climbing – Florida is heating up

Word is getting out that Florida’s bust is switching to boom, with the charge being led by the $1 million single family house market.

Across the state in Miami-Dade, a $52million house is reportedly under contract and a penthouse condo just sold for a record $25million.

On this side of Florida, our price point is not as impressive but we have continued signs of rising sales.  In February and March of this year, sales of $1million-plus houses in Sarasota county were 48% higher than last year.

For more information on luxury homes in Sarasota call Bev Murray or Jane Ebury 941-365-1837 at Murray Realty

 

Home Prices Stabilizing, Sales up and Inventory Down

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

Jane Ebury

941-365-1837

 

Should You Invest in a Second Home?

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

Jane Ebury

941-365-1837

 

 

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Sarasota Real Estate Market Hits Seven Year High

Last month Sarasota County saw real estate sales attain a seven year high, a level not seen since September 2005. Pending sales reached the highest level in 12 months, confirming that the current market surge will continue for the next few months.

Another clear sign of a strengthening market is the median sales price. For condos the median price was $192,000, an 11 percent increase on March 2011’s figures. The average sales price for single family homes was $174,000, 9.8 percent higher than last March. The number of distressed properties fell to 32 percent from 37.4 percent in February, a three year low, which accounts for the recent price resurgence. All of this is positive news for the local economy as home sales are a catalyst for more jobs, higher salaries and a better standard of living.

A drop in available inventory of homes is another positive sign. The level of 4,463 is close to the decade low figure of 4,408 in August 2011, and the combination of high sales and low inventory has dropped the months of inventory to an eight year low. A well balanced real estate market has an average inventory of 6 months so a lack of available housing will most likely push prices up.

We have not seen 4.8 months of inventory since 2004 for single family homes and 6.7 months inventory for condos.

Single family home prices are now 21.4 percent higher than the low of the market reached 13 months ago, while condo prices are almost 30 percent higher.

Currently distressed listings equate to 15 percent of the market. If the percentage continues to trend lower, we could begin to see median sales price increase going forward.

Jane Ebury –

Sarasota in Best Housing Markets

According to Realtor.com’s “Top 10 Turnaround Report,” based on Third Quarter 2011 data, the following six Florida markets are included as exhibiting the best positive year-over-year housing median price appreciation, inventory reductions and inventory age while also experiencing lower unemployment rates: Miami, Orlando, Fort Myers-Cape Coral, Fort Lauderdale, Sarasota-Bradenton, and Lakeland-Winter Haven. Most of these same markets were featured just three years ago as having the worst impacts in the nation from the Great Recession. This report also notes that the number of foreign buyers purchasing homes in these markets increased from 10 percent in 2007 to 31 percent in 2011.

Ringling Bridge

Never a dull moment

With Halloween, Thanksgiving, Christmas and New Year racing upon us, 2011 is only round the corner.  Some of you will be glad to see the back of 2010, others will look forward to 2011 with a positive attitude and a sense of anticipation.
 
Over the last two to three years, real estate and banking news has filled the media for one reason or another.  Over the last few months things had quietened down……or so we thought!  Earlier this month J.P. Morgan Chase, Bank of America, Wells Fargo and many other lenders stopped all foreclosures until further notice.  They have discovered that the lawyers they retained did not handle the files with due diligence, which lead to many homes being foreclosed upon by banks who may or may not hold the note.  With this said, the financial institutions are frantically trying to limit the damages.  I suspect we may see class action suits brought against the banks in the near future by homeowners who surrendered their homes to lenders who were not qualified to foreclose.
 
On a more positive note, the snow birds are starting to return to Sarasota.  This is the perfect time to list your home ready for the seasonal residents to buy up our real estate at historically low prices. 
 
Murray Realty has a Facebook page.  If you haven’t already viewed these, click on the links below.  Both pages have proved to be a huge success.  They are regularly updated with information on new listings and relevant market changes, as well as our opinions on real estate news.  Please feel free to comment on any articles on our sites.  This enables us to stay focused on what you need from your real estate agent.
Thank you for supporting us and have a safe Halloween

Amendment 4: What Every Voter Should Know

What are the facts?

On November 2nd, you will be asked to vote yes or no on a plan to alter Florida’s Constitution called Amendment 4. Special interest lawyers, adult entertainment interests and population control groups have designed, funded and proposed this amendment to our Constitution. Take a moment to learn more about who’s backing Amendment 4 and why.

What is the issue?

Amendment 4 will prolong the recession and put recovery out of reach for thousands of working Floridians. As a result, leading business, labor, and civic groups oppose Amendment 4

What will the measure do?

This proposed change to Florida’s Constitution would require a taxpayer-funded referendum for every single change to a local government comprehensive plan. Simply stated, Amendment 4 would force Floridians, not the representatives they elect, to decide hundreds of minor, technical comprehensive plan changes each year on issues like drainage, traffic circulation, and intergovernmental coordination.

What does that mean for you?

Here is what Amendment 4 means for you: (1) a Florida with drastically fewer jobs, (2) a significantly weaker economy, and (3) unbearably higher taxes to feed the Amendment 4 “litigation” bureaucracy.

The Florida Chamber of Commerce asked leading economists to study the impact of Amendment 4. The study indicates that Amendment 4 would likely put more than 267,000 Floridians out of work, shrink Florida’s economic output by more than $34 billion annually, and take nearly $12 billion out of the pockets of working families.

With Florida’s jobless rate reaching well into double digits, our state’s top business and labor groups have put politics aside to oppose Amendment 4. Mark Wilson, president of the Florida Chamber of Commerce wrote: “If you like the recession, you’ll love Amendment 4.” Frank Ortis, executive board member with Florida’s AFL-CIO noted that “Amendment 4 will devastate Florida’s economy by costing hundreds of thousands of jobs and driving the unemployment rate even higher.”

According to the Orlando Sentinel, “The cost to local governments of [Amendment 4] would soar into the millions.” Those costs would be shouldered by Florida’s taxpayers who could expect to see not only more government waste, but also nonstop lawsuits as special interests wage war in court over the technical wording of endless ballot summaries. Referencing a failed experiment in Amendment 4-style rule in the small Florida town of St. Pete Beach, the St. Petersburg Times wrote that Amendment 4 leads to “short-term thinking” and “invites lawsuits…”

What is the conclusion?

Florida’s jobless rate is high—but it could get much, much worse with the passage of Amendment 4. At a time when many families and small businesses are struggling to make ends meet, that’s the last thing we need. Please take the time to learn more about Amendment 4 by visiting www.Florida2010.org.

Real Estate Investment

If you are thinking about purchasing a home, don’t let negative or sensationalized headlines be your sole persuader.  Even journalists who write many of the stories behind the headlines are rebelling against the idea that real estate is on its way out as the foundation of many Americans’ wealth.  We’ve certainly had our ups and downs over the years, but that’s expected in every investment’s cycle.  We are getting much closer to a sustained up cycle.  Read as much as you can from the sources you trust.  That way you’re most likely to make the right decision for you, and with confidence.   Above all, don’t let trash talk rob you of one of the most opportune moments in real estate history.