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

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.

August property sales up; prices remain stable

The Sarasota real estate market rebounded in August 2010 after an expected slower July, following the expiration of the federal $8,000 homebuyer incentive. Sales were up 8 percent over July 2010, and up 14.3 percent over August 2009.
 
Property sales in August 2010 stood at 567 total sales. This compared to 525 sales in July 2010 and 496 sales in August 2009.
 
There were 408 single family home sales in August, with the median price at $154,500, almost identical to last month’s figure of $155,000. The median price was also $155,000 in August 2009, and has been steady throughout the last 12 months ($161,000), fluctuating between a high of $170,000 and a low of $150,000.
 
Condos saw 159 sales in August, with the median price rising by 22 percent to $155,000 from last month’s figure of $127,000.  For the last 12 months combined, the median sale price for condos was $169,900. Distressed condo sales have dragged the overall median price down substantially, with normal arm’s length sales garnering three-times as much as bank-owned properties, and twice as much as short sales on average.
 
Pending sales also rose in August to 816, from last month’s figure of 653, for a 25 percent increase. The rise bodes well for the closings in the early fall months.
 
“It was very encouraging to see that the market recovered nicely after a drop in sales from June to July,” said 2010 SAR President Erick Shumway. “After experiencing a five-year high in sales for the second quarter, everyone knew the loss of the homebuyer tax credit would have a negative impact. But we saw a big jump in sales for August, and prices held steady, so this market still has legs and the recovery appears to be a healthy one.”
 
The level of sales of distressed properties (foreclosures and short sales) dropped in August 2010 to 47 percent from last month’s figure of 48.7 percent of the overall market. Distressed market sales were at a high in late 2009, and have hovered in the range between 44 and 48 percent since that time.
 
The property inventory level remained fairly consistent, remaining just over the 6,000 level in August 2010, which remains one of the lowest monthly levels since late summer of 2005.
 
The months of inventory for single family homes in August 2010 dropped to 9.5 months from 10.4 months in July. The figure was 10.3 months in August 2009. This figure represents the number of months it would take to sell all available homes at the current pace. For condos, the figure dropped to 13.5 months from 14.4 months in July 2010. It was substantially lower than the August 2009 figure of 20.5 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.
Sarasota Association of REALTORS®