How to succeed in the new seller’s housing market.

Some of my clients from other parts of the country and from across the Atlantic, where the housing markets haven’t recovered yet from the recession, come to Florida expecting to go bargain hunting.

But they are in for a rude awakening. They find a house they like, want to put down an offer and find themselves fifth or sixth in line among multiple offers. As buyers, they discover out quickly that in Sarasota, they’re no longer in the power position. The reason? Not enough homes for the demand.

As Sarasota goes, so goes the nation!

Sarasota may have been the first market in the United States to tank when the housing bubble burst, leading the plunge into real estate chaos and economic recession. But it has also recovered earlier, along with other parts of the country, notably Alaska, Washington State, Arizona and other cities in Florida – Miami, Orlando and Ft. Lauderdale, which have become hot markets again.

In June, the number of homes listed for sale nationwide dropped 24% compared with the previous year. Inventory in Sarasota has been low here for months now. Good properties, priced right, get snapped up in days with multiple offers from five to fifteen buyers not at all unusual. Prices are inching up, too, and there are even occasional bidding wars. Add it all up, and it spells “seller’s market.”

The good news is that people continue to want to buy. According to the National Association of Realtors, the number of contracts signed in May was 13% higher than a year ago with every region in the country reporting increases in sales.

But with rising demand and lack of suitable inventory, buyers are no longer in the driver’s seat.

What does that mean for buyers in the Sarasota area?  

If you’re looking for a particular spot, it’s not as easy to find property, especially in the most popular neighborhoods. That’s definitely true for good houses priced under $250,000.

Until new construction catches up with demand, shopping for a home will be more like a hunt than the walk in the park it has been.

What should buyers do in the new seller’s market?

Pre-qualification vs. pre-approval. Don’t bother with the first, which is only an estimate on how much you can borrow. With sellers concerned about deals falling through, they want more certainty. Get pre-approved for a loan based on your credit, income and assets, and you’ll be in a better position to bargain.

Get with a veteran realtor who knows the market. In a competitive market, it’s crucial to have a pro on your side who’s experienced, knows the local scene inside and out, and is experienced in multiple-offer deals. That way you can be sure that a home is reasonably priced and advise you on what to offer.

Make a good, clean, straightforward offer. If you want to wait to sell your current home first, for example, you’re not likely to come out ahead in a bidding war.

Remember, if you get into the game, there are still very good buys to be had. With interest rates at historic lows, and prices considerably lower than during frenzy years, this is still a great time to get excellent value for your money. Just don’t expect bargain basement sales, and be prepared to move fast in the face of the competition.

 

Sarasota Continues to Rise

Sarasota real estate has come a long way from the dark days of 2006-2010. In November 2008, the inventory level* was 24 months. In June of this year the figure has plummeted to below 5 months, ushering in a seller’s market.  *Months of inventory represents the time it would take to deplete the current inventory of homes and condos at the current sales rate.

Real estate agents are finding themselves busy keeping up with demand from buyers at a time of year that is typically much slower than the peak buying and selling months of January through April.

Highlights from the Sarasota Association of Realtors – Real Estate Market report for June 2012:

•        Real estate market achieved the highest level of quarterly sales in seven years.

•        June sales were the second highest total since September 2005, yet another indication of a market that is achieving sales totals not seen since the 2003-2005 real estate surge.

•        Sales prices 18.7% higher than in June 2011

•        The normal seasonal influx of buyers tends to drop shortly after the Easter holiday, but this year the higher sales appear to be continuing into the summer.

•        The median sales price for single family homes dropped slightly to $178,500 from last month’s figure of $185,000, but it remains higher than the 12-month running median of $167,000. The median sales price for condos was $195,000 – up from last month’s figure of $180,750, and still much higher than the 12-month running median prices of $165,000.

•        Single family home prices remained over 30% higher than the low of 15 months ago ($137,500), while condo prices are over 50% higher than the low point ($127,000).

Jane Ebury

941-365-1837

Florida, the Promising Land

Whether you’re a foreign buyer looking for a vacation home, investment property or semi-permanent residence to bask in the Florida sunshine for more than six months of the year, there isn’t a better time than now.

Since the housing bubble burst, prices have dropped by more than 50% in many parts of the state. A typical Florida home that sold in 2006 for about $260,000 now sells for less than $140,000. As they say here, “You can get a lot more home for your buck!”

By comparison, houses in Europe, Canada, and Latin and South America are much more expensive.

Those in the know are taking advantage of the favorable real estate climate. At 26%, Florida accounts for more than a quarter of all international sales in the United States, more than the next three largest sunshine states – California (11%), Texas (7%) and Arizona (7%) – combined!

In 2011, international buyers accounted for $82.5 billion in U.S. property sales, up 24% from $66.4 billion the previous year.

Why not join them for your place in the sun?

Bev Murray & Jane Ebury

941-365-1837

Spring Has Definitely Sprung – strong sales for April 2012

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.

Investing:

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.

Bev Murray

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 –

Luxury Living Looking Up?

The buzz around town and on the keys is that Sarasota has had a phenomenal season. Reports are coming in from delighted restaurant owners, motel managers, valet parkers and shop retailers that our visitors not only came for the season, but they also spent money while they were here.

The real estate community is quietly optimistic about the positive signs for the year to date and the upward trend is being lead by the luxury end of the market.

According to the Sarasota Herald Tribune, there were a total of 34 homes and condominiums sold in Sarasota county in March 2012. This is a whopping 48% increase over last year.

The luxury end of the market has been especially stagnant in the past few years so this is extremely encouraging news.  These increased sales mirror the upswing in the luxury new home construction market which began at the beginning of 2011.  Wealthy homeowners and investors are finally feeling confident enough to spend some of the cash which has begun to burn a hole in their pockets.

One of the problems that potential homebuyers and investors are facing is the lack of raw material.  The inventory of available homes is at an 8 year low,   hovering a little below six months’ supply, the number generally considered to be optimum for a balanced real estate economy.  The reduced inventory is likely to translate into higher prices.

This news may well be enough to convince homeowners who have been sitting on their properties waiting out the downturn, to put their homes on the market and make the move to fresh pastures.

Part of our job as Realtors is a commitment to keeping buyers and sellers informed about the nuances of the high end real estate market.  Rest assured that Murray Realty is working tirelessly to make sure that buyers are aware that values are rising and inventory is low.

It appears that luxury living really is on the up!

Bev Murray –

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

US new home sales still sluggish

26 July 2010 Last updated at 11:53 ET

A new home in the US 
The pace of sales remains slow

New home sales in the US rose sharply in June compared with the previous month, but the pace of sales was the second slowest on record, official figures show.  The Commerce Department said sales rose to an annual rate of 330,000 in June from a revised 267,000 in May, which had been the worst month on record. 

June’s figure was the second-lowest rate since records began in 1963.

The housing market has suffered since tax credits for buyers ended in April.

Analysts say that the uncertainty over the US economy – including unemployment at about 9.5% and tight credit conditions – have left potential buyers reluctant to commit to a new home. “There’s no question that this is a weak number, but it seems to be more stable,” said Stuart Hoffman, chief economist at PNC Financial Services Group. 

“The bottom line to all of this is that we need more jobs.”

Knock-on effect

Sales saw their peak annual rate of 1.39 million in July 2005.  New homes sales made up about 7% of the housing market last year – though this figure was about 15% before the collapse of the housing market. Knock-on effects of low sales include fewer jobs in the construction industry.

According to the National Association of Home Builders, each new home built creates an average of three jobs for a year and generates about $90,000 in taxes.

http://www.bbc.co.uk/news/business-10766594