Though our regional real estate market continues to be in a somewhat fragile state, it is well reported that 2011 saw sustained increases in key markers such as price and volume, and all indicators are pointing to further improvement in 2012. Buying a home in Sarasota has never been more “affordable”. With the prices lowered across the board plus record low interest rates…add to that the incredible lifestyle of Sarasota’s magnificent setting and infinite options for dining, entertainment and cultural activities, investing in Sarasota real estate is a safe bet!

http://www.thesaundersblog.com/southwest-florida-real-estate-take-that-dow-jones/

In Michael Saunders’ most recent blog post, not only is it revealed that agents of our fine firm represented 11 “sides” of Sarasota’s top 10 sales in 2011 but, she also reminds us that Michael Saunders & Co. continues to be the market leader in selling the region’s luxury properties. The article further cites economic conditions and statistical evidence of the area’s positive positioning for continued real estate market recovery.

In addition, with the largest two of the transactions coming from foreign buyers, I reflect back to a 2011 Moulton Report in which I reported on the importance of International buyers to Florida Real Estate. An estimated 25% of all real estate acquisitions in the state are credited to foreigners, with the majority executed with cash. The foreign interest in our region’s properties tends to reflect perception of value, the large selection of well-priced options, a desire to diversify investments, the opportunity for rental income, and a belief in long-term security with real estate investment in our area. Michael Saunders & Co. and her team have created unparalleled visibility around the globe for our buyers and sellers. By establishing a carefully chosen group of essential partnerships, the extraordinary transnational exposure for Sarasota Real Estate through our company cannot be understated.

I invite you to read the Michael Saunders blog posted here to read for yourself more about why “Performance Matters” when selecting the best agent to represent you in your real estate transaction.

http://www.thesaundersblog.com/when-performance-matters/

69% of the months sales were single family homes and 31% were condominiums. Of the total sales 66% were properties that sold for $250,000 or less, 24% were sold for between $250,000 and $500,000, 8% sold for between $500,000 and $1,000,000 and 2% sold for over $1,000,000. The current listing inventory is 5% less then where it was at the end of 2009.

As the statistics relate to listed properties vs. sold properties we have 12 months of inventory overall based on the June closings. Based on the June closings there is only 6 months of inventory for properties listed under $500,000 compared with 10 months at the beginning of 2010, in the price bracket of $500,000 to $1,000,000 there is 17 months of inventory down from 22 months at the end of 2009 and over $1,000,000 there is 46 months of inventory based on the June closed sales. The months of available inventory does vary greatly on a month to month basis based on that months closed sales. Six months of inventory is considered a neutral market meaning it is neither a buyers or sellers market.

63% of the months sales were single family homes and 37% were condominiums. Of the total sales 63% were properties that sold for $250,000 or less, 23% were sold for between $250,000 and $500,000, 9% sold for between $500,000 and $1,000,000 and 5% sold for over $1,000,000. The overall listing inventory is 10% less then where it was at the end of 2009.

As the statistics relate to listed properties vs. sold properties we have 12 months of inventory overall based on the May closings. 2009 ended with 10.1 months of listing inventory. Based on the May closings there is only 5.3 months of inventory for properties listed under $500,000 compared with 10 months at the beginning of 2010, in the price bracket of $500,000 to $1,000,000 there is 16 months of inventory down from 22 months at the end of 2009 and over $1,000,000 there is 22 months of inventory vs. 45 months at the end of 2009 based on April 2010 closed sales. Six months of inventory is considered a neutral market meaning it is neither a buyers or sellers market.

62% of the months sales were single family homes and 38% were condominiums. Of the total sales 66% were properties that sold for $250,000 or less, 21% were sold for between $250,000 and $500,000, 10% sold for between $500,000 and $1,000,000 and 3% sold for over $1,000,000. The overall listing inventory is 3% less then where it was at the end of 2009.

As the statistics relate to listed properties vs. sold properties we have 12.6 months of inventory overall based on the April closings. 2009 ended with 10.1 months of listing inventory. There is only 6.2 months of inventory for properties listed under $500,000 compared with 10 months at the beginning of 2010, in the price bracket of $500,000 to $1,000,000 there is 12.5 months of inventory down from 22 months at the end of 2009 and over $1,000,000 there is 35 months of inventory vs. 45 months at the end of 2009 based on April 2010 closed sales. Six months of inventory is considered a neutral market meaning it is neither a buyers or sellers market.

66% of the months sales were single family homes and 34% were condominiums. Of the total sales 66% were properties that sold for $250,000 or less, 20% were sold for between $250,000 and $500,000, 11% sold for between $500,000 and $1,000,000 and 3% sold for over $1,000,000. The overall listing inventory is equal to where it was at the end of 2009 which when compared with the inventory at the end of February, it has climbed back up.

As the statistics relate to listed properties vs. sold properties we have 11.7 months of inventory overall which is up from February’s 9.5 months. 2009 ended with 2 months of listing inventory. There is only 6.8 months of inventory for properties listed under $500,000 compared with 10 months at the beginning of 2010, in the price bracket of $500,000 to $1,000,000 there is 15 months of inventory down from 22 months at the end of 2009 and over $1,000,000 there is 34 months of inventory vs. 45 months at the end of 2009 based on March 2010 closed sales. Six months of inventory is considered a neutral market meaning neither a buyers or sellers market so the market for properties listed under $500,000 is fast approaching this benchmark.

64% of the months sales were single family homes and 36% were condominiums. Of the total sales 70% were properties that sold for $250,000 or less, 20% were sold for between $250,000 and $500,000, 5% sold for between $500,000 and $1,000,000 and 5% sold for over $1,000,000. The overall listing inventory is down 21% from the end of 2009.

As the statistics relate to listed properties vs. sold properties we have 9.5 months of inventory overall which is down from 12 months at the end of 2009. There is only 7 months of inventory for properties listed under $500,000 compared with 10 months at the beginning of 2010, in the price bracket of $500,000 to $1,000,000 there is 22 months of inventory and over $1,000,000 there is 45 months of inventory. Six months of inventory is considered a neutral market meaning neither a buyers or sellers market so the market for properties listed under $500,000 is fast approaching this benchmark. Hopefully as 2010 progresses we can put a dent into the luxury market inventory.

There is widespread agreement that problems in the housing market caused the financial crisis and led to the recession.  It’s important to note, however, that the housing market is inextricably linked to the employment sector and a sustained improvement for housing might not be realized until the broader economy, including the job market, has recovered.

Demand for housing is driven by demographics—the number of new households being created—and the jobs picture. The job picture, in particular, is crucial for residential real estate since employment allows homeowners to keep their mortgage current and avoid foreclosure.

Therefore, if you’re anxious to predict the value of your home one or two years from now, it’s worthwhile to consider the status of the labor market and the progress being made in the area of jobs creation.  Remember too, that real estate conditions vary greatly by region, so keep your eye on the local job market as well as what’s happening on a national level.

Government Policy

The ability of the housing market to stand on its own, unaided by federal stimulus, will be tested very soon. The end is nearing for two federal policies that are credited with providing a boost to the housing market this year.  The $8,000 tax credit for new home buyers was extended, but is scheduled to end in the spring of 2010. Secondly, the Federal Reserve, which purchased mortgage securities in an effort to keep mortgage rates low, has indicated that aid will soon cease as well.

The key will be to stabilize the number of unsold homes so the market can operate normally. Experts predict that the housing market has about six months to reduce inventory encouraged by government incentives.

Home Prices

The spring of 2010 may be the market’s best hope for a significant upswing in home values—the first in more than three years, says Michael Englund, chief economist at Action Economics. When the weather gets warmer in spring, home buyers are most active and housing prices often move higher.

While we don’t often equate higher prices with good news, a rise in home prices reflects equity growth. Because homes are a critical component of wealth, this will be a welcome trend for those of us whose wealth is represented largely by our homes.

Housing Inventory

Excess inventory has caused an imbalance in the housing market’s supply and demand balance. There are signs of improvement, however.  A ‘normal’ inventory of existing home supply would be equivalent to 5 ½ to 6 months supply of homes. While October, 2009, saw a seven months’ supply of existing homes on the market, this was down from an eight month supply in September.

Beyond the inventory accounted for, economists and real estate experts are still speculating about how much “hidden supply” is out there waiting to come to market. This hidden supply is in the form of buyers who are waiting for better market conditions before listing and the many foreclosed homes that are in process and not yet back on the market. On a positive note, home builders are adding very little new supply, which is helping to stall further imbalance.

Beginning in 2010 there are 39 active listings available on Bird Key, identical to the beginning of 2009 with prices ranging from $539,900 to $9,490,000. There are 8 pending sales to start the year.

Bird Key 2009 Year End Sales Statistics

Bird Key 2009 Sales