SAR Year-End Report Validates Upward Trend
As reported in my Year-End Sarasota Real Estate Market Report last week, the key statistical markers are pointing toward sustained recovery. As further evidence I am attaching the Sarasota Association of Realtor’s recently released analysis of our region’s 2011 results.
Property sales up 8.2 percent for full year 2011; prices stable
For the full year 2011, property sales of members of the Sarasota Association of Realtors® jumped by 8.2 percent to 8,224, achieving the highest level since 2005. The surge in sales was accompanied by stabilization in the median sale prices, which now stand at $155,925 for single family homes and $156,800 for condos over the full year, and have not fluctuated much for the past 12 months.
Once again, the market has demonstrated that Sarasota is a destination of choice for many homebuyers. For the overall year of 2011, the resurgence in sales was dramatic, and represents a 44 percent increase over the low point of the downturn in 2008, when only 5,820 properties changed hands.
“This is really incredible news, and demonstrates how far this market has improved in only three short years,” said SAR President Laura Benson. “Now, we also offer very affordable pricing. Combined with the high quality of homes and condos on the market, I think we clearly have the best values in Florida, without question.”
Property transactions in the Sarasota real estate market jumped 7.3 percent in December 2011, compared to the November totals. Combined sales stood at 648, up from last month’s figure of 602 and the October 2011 sales of 577. This sales resurgence has paralleled the drop in the available inventory, and put the remaining months of inventory in the range of a seller’s market.
The inventory of available properties for sale in Sarasota was at 4,567 in December, down slightly from the 4,672 in November. The inventory fell to a 10-year low of 4,408 in August 2011. As the inventory has slid, the months of inventory has dropped and now stands at 6.3 months for single family homes and 9.2 months for condos. A figure of 6 months is considered equilibrium between a buyer’s and a seller’s market.
The December 2011 median sale price for condos recovered strongly to $150,000 from November’s figure of $127,000. This was the highest level since August 2011. Condo prices have been fluctuating for several months, with the year-to-date median sale price at $156,800.
For single family homes, the median sale price dropped slightly in December to $160,000 from $162,000 in November 2011. For the overall year, the figures have remained remarkably steady, indicating a stabilizing market.
“There is a real sense of optimism and excitement returning to the market,” Benson noted. “We’re entering the height of the season, and the open houses have been bustling with energy and interest. Recent news of new home sales doubling in one community and setting records for annual sales in another are clear signs of the strength of the current market.”
Pending sales were at 694 in December 2011, down slightly from the November 2011 number of 782. Last month, 504 single family homes and 190 condos went under contract.
Distressed property sales continued to represent a higher percentage than normal in the local market for the fourth quarter of 2011. In total, 41.7 percent of sales in the fourth quarter were distressed property sales (foreclosures and short sales). This was somewhat higher than the third quarter, when the overall percentage was 38.8 percent, but well below the market high of over 50 percent in the second quarter of 2010.
Median sale prices continued to show three distinct markets, with normal market transaction sales prices more than double those for bank-owned transactions. But the price gap has narrowed somewhat, particularly during the past two quarters. For the second quarter of 2011, foreclosed condos sold for a median price of $62,250, while market condo transactions saw a $270,000 median. For the quarter just ended, those prices were at $73,500 and $193,500, respectively.
“Realtors® and consumers have adjusted to the market realities, and it appears that pricing in all categories has become more reflective of the current conditions,” said Benson. “We continue to watch and hope for a break in the distressed property cycle, and we anticipate the improving economy and lower unemployment rate will eventually bring these figures down to lower levels. The positive side is that our market offers incredible buying opportunities that won’t last long.”
Click HERE for the complete press release in PDF format, plus six pages of statistical charts.
Year-End 2011 Signals Optimism in 2012
All indications point to an active 2012 selling season as the Sarasota real estate market continues to show strong signs of recovery. While I think price appreciation this year will be modest, the general consensus from industry experts is that our prices bottomed out in 2011 and will continue to hover at this level through the better part of the 2012 with nominal upward movement. Realistic motivated sellers are getting their properties sold following the advice of seasoned professional realtors who know our market well and where the current tipping point is.
Sarasota’s monthly average of 657 closed properties indicates that we currently have 6 ½ months of inventory in all price points, a good measure of the marketplace’s positive and stable course, given that a six month supply is the demarcation of equilibrium between a buyers and seller’s market. The overall inventory has declined 25% since the end of 2010, which is 1,434 less properties for sale, and 1,800 fewer properties than the end of 2009. This compression of available properties is contributing to the recent news that homebuilder confidence is rising and, after several years of limited new homes entering the market, we are hopeful some high quality product will be added to the supply chain to feed the already evident increased buyer interest.
This year 481 more properties sold than during 2010, a healthy 7% increase. We have a similar number of pending sales to start 2012 as we had to start 2011. As a result of the average month’s closings activity the past year, there is now only 5 months of inventory for properties listed under $500,000, compared with 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is a 15 month inventory vs. 19 months to begin the past year. The inventory of available luxury properties over $1,000,000 has reduced by 16%, 116 less properties since the beginning of the year and now represents a 25 month supply, down from 28 months at the beginning of the year, and now at one of the lowest levels since before the boom in the luxury market that began in 2002 and nearly 70% below the market crowning in 2006. And with the median sale price of luxury properties almost 16% higher than December 2010, (Sarasota is one of the country’s highest ranking regions in increases in home prices,) and the dwindling supply of move-in ready homes, this will be an interesting market to watch.
The Sarasota area continues to have an abundance of properties listed as Short Sales or Bank Owned. This segment represented 43% of the sales in 2011 and approximately 50% of the sales under $500,000. This is expected to continue to be the case in 2012 as more properties are finally getting through the judicial foreclosure process. Banks are clearly motivated to manage their foreclosures better and are attempting to expedite short sales, so I am optimistic the market will absorb these and the effect on overall pricing and sales will be somewhat marginalized.
As I have noted in my recent blog posts, with economic vital signs such as improvements in the unemployment rate and evidence of increased consumer and builder confidence, added to continued low interest rates and pent-up demand, the Sarasota Real Estate market appears poised for sustained recovery. When all of the factors noted in this report are blended with the many extraordinary natural, cultural and business attributes that make Sarasota the greatest community in the nation to live and work; I think we are on the verge of a steady and sustained recovery. Though elements necessary for an extended recovery are still fragile, there are many reasons to be optimistic.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold column is the total sales for the stated year. The Listed YE (Year-End) column shows the listing inventory at the end of 2011 and 2010. The SS/REO stands for properties that were either sold as a Short Sale or were owned by a lender at the time of the sale, commonly referred to as distressed sales. The amount of these distressed sales is included in the sold column.
Below is a second table showing the past seven years of sales history. 481 properties or 7% more closed this year over 2010, the highest amount since the height of the market in 2005. There has been a steady increase of closed sales each year since the low of 2006.
The Case for Real Estate Investment
This week Michael Saunders makes the case quite clearly that, despite the recent years of woe in the housing market, real estate remains a secure and desirable form of investment. In Michael’s weekly market report attached below, she cites data prepared by Steve Harney, a national real estate authority, in which he reports that over the last 12 years, “had you invested $100 in each in early 2000, by now you would have netted $140 in real estate, $112 on the Dow, $90 on the S&P and $70 on NASDAQ.”
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/
The Power of the Region’s Dominant Broker
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/
Real Estate Report – October 2011 – Sarasota, FL
Prepared by Michael Moulton, CRS, Broker-Associate
Michael Saunders & Co
All indications point to an active fall selling season locally as the Sarasota real estate market continues to show strong signs of recovery. Our monthly average this year of 670 closed properties indicates that we currently have 6.5 months of inventory, a good measure of the marketplace’s positive and stable course, given that a six month supply is the demarcation of equilibrium between a buyers and seller’s market. The overall inventory has declined 23% since the end of 2010, which is 1,350 less properties for sale, and 1,780 fewer properties than October a year ago.
During October 592 properties sold compared to 475 in the same month last year, a full 20% improvement year-over-year. There are 532 pending sales from October versus 662 pending sales at this same month in 2010. As a result of the past month’s closings activity, there is just under 6 months of inventory for properties listed under $500,000, compared with 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is a 16 month inventory vs. 19 months at the end of 2010. The inventory of available luxury properties over $1,000,000 has reduced by 18% since the beginning of the year and now represents a 23 month supply, down from 28 months at the beginning of the year, and now at one of the lowest levels since before the boom in the luxury market that began in 2002 and nearly 70% below the market crowning in 2006, a very strong position as we look forward to the peak selling season ahead.
The Sarasota real estate market has been enjoying considerable interest not only from around the U.S. but, especially notable is the attraction to the International arena within all price points. Despite certain countries experiencing economic troubles, the nations of Canada, U.K., and Germany continue to feed global customers to our area, many of whom are paying cash for their properties. With inventory on the decline, available homes in the more desirable locations in move-in ready condition dwindling, higher showings activity, shortening selling periods for listed properties, continued low interest rates and several other important market changes, I feel particularly confident that the peak selling season ahead will produce strong results for buyers and sellers.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold YTD column is the total sales for 2011 and 2010 Year-to-Date. The Listed YE ’10 (Year-End) column shows the listing inventory at the end of 2010.
This pdf report contains statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors.
We are always available to answer any questions you may have regarding market conditions and the optimum time to buy or sell your property. Please contact us with any questions.
Real Estate Report – September 2011 – Sarasota, FL
Prepared by Michael Moulton, CRS, Broker-Associate
Michael Saunders & Co
The Sarasota real estate market continues to show recovery, something that has been consistently reported in my monthly releases of statistics. Our monthly average this year of 678 closed properties indicates that we currently have slightly over six months of inventory, a good sign that the marketplace is on a positive and stable course, considering a six month supply is the demarcation of equilibrium between a buyers and seller’s market. The overall inventory has declined 25% since the end of 2010, 1,448 less properties, and 1,821 properties less than the end of 2009. Our listing inventory continues to shrink each month, a positive indicator for our local housing market going into the active fall season.
During September 556 properties sold compared to 527 in the same month last year. There are 584 pending sales from September versus 622 pending sales at this same month in 2010. As a result of the past month’s closings activity, there is just a 6 month inventory for properties listed under $500,000, compared with 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is a 17 month inventory vs. 19 months at the end of 2010. Inventory over $1,000,000 has reduced by more than 23% during the last year and now represents a 21 month supply, down from 28 months at the beginning of the year, a strong position for the luxury market. With leading economic indicators moving in a positive direction for four straight months as reported by The Conference Board, and multiple months of strong activity in the real estate market, it appears our region and the economy in general are positioned for a strong selling season ahead.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold YTD column is the total sales for 2011 and 2010 Year-to-Date. The Listed YE ’10 (Year-End) column shows the listing inventory at the end of 2010.
This pdf report contains statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors.
We are always available to answer any questions you may have regarding market conditions and the optimum time to buy or sell your property. Please contact us with any questions.
Real Estate Report – August 2011 – Sarasota, FL
Prepared by Michael Moulton, CRS, Broker-Associate
Michael Saunders & Co
The overall listed inventory of residential properties for sale locally is keeping steady in recent months at the equilibrium level of six months, considered neither a Buyers nor Seller’s market. Our monthly average this year of 694 closed properties indicates that we currently have six months of inventory, a good sign that the marketplace is on a positive and stable course. The overall inventory has declined 27% since the end of 2010, 1,564 less listed properties, and 1,937 properties less than the end of 2009. Shrinking inventory is a great positive sign for our local housing market.
During August 569 properties sold compared to 565 in the same month last year. There are 695 pending sales from August versus 805 pending sales at this same month in 2010. As a result of the past month’s closings activity, there is just a 5.7 month inventory for properties listed under $500,000, compared with 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is an 18 month inventory vs. 19 months at the end of 2010.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold YTD column is the total sales for 2011 and 2010 Year-to-Date. The Listed YE ’10 (Year-End) column shows the listing inventory at the end of 2010.
This pdf report contains statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors.
We are always available to answer any questions you may have regarding market conditions and the optimum time to buy or sell your property. Please contact us with any questions.
Real Estate Report – July 2011 – Sarasota, FL
Prepared by Michael Moulton, CRS, Broker-Associate
Michael Saunders & Co
The sustained decline in the overall listed inventory of residential properties for sale locally, as has been reported in my last several Monthly Real Estate Reports, is on a steady path toward the equilibrium level of six months, considered neither a Buyers nor Seller’s market. Our monthly average this year of 676 closed properties indicates that we currently have just over six months of inventory, a good sign that the marketplace is on a positive and stable course. The overall inventory has declined 25% since the end of 2010, 1,439 less listed properties, and 1,812 properties less than the end of 2009. Shrinking inventory is seen as a positive sign for our local housing market.
During July, 576 properties sold compared to 517 in the same month last year. There are 653 pending sales from July versus 386 pending sales at this same month-end in 2010. As a result of the past month’s closings activity, there is just a 5 month inventory for properties listed under $500,000, compared with 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is a 16 month inventory vs. 19 months at the end of 2010. For inventory over $1,000,000, there is 36 months of inventory.
Concern lingers for how the distressed home market, which are either bank owned or a short sale, will affect pricing locally for the short-term. With the considerable downward trend in the distressed classification, significantly fewer than 2010, the consequences are expected to be less imposing. Studies show that our micro-market of Sarasota is below both Florida and the US in terms of foreclosure activity. The majority of these are under a $500,000 list price. Of the listings in our market at that price point, 19% are distressed sales. Listings priced from $500,000 to $1,000,000 only have 8.5% as distressed sale listings, and over $1,000,000 there are only 19 or 3% of the listings. Of the approximately 2000 distressed homes sold year to date, all but 75 of these were under $500,000 and only 13 were over $1,000,000.
Interestingly, the markets likely to be the most affected by inventory of distressed properties are already showing promise in the Sarasota Real Estate arena. Recent news of considerable international investment at all levels of the Sarasota market, and more demand for rental property investment as emerging classifications, offers hope for a reduced impact of the distressed market on our local recovery.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold YTD column is the total sales for 2011 and 2010 Year-to-Date. The Listed YE ’10 (Year-End) column shows the listing inventory at the end of 2010.
This pdf report contains statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors.
We are always available to answer any questions you may have regarding market conditions and the optimum time to buy or sell your property. Please contact us with any questions.
Real Estate Report – June 2011 – Sarasota, FL
Prepared by Michael Moulton, CRS, Broker-Associate
Michael Saunders & Co
As I have reported in my last several Monthly Real Estate Reports and blogs, the overall listed inventory of residential properties for sale locally is maintaining a steady and healthy decline toward the equilibrium level of six months, which is a well-balanced condition and considered neither a Buyers nor Seller’s market. Our current monthly average of 692 closed residential properties indicates we have just over six months of inventory, a good sign that the marketplace is on a positive and stable course. The overall inventory is lower than the end of 2010 by 1,269 listed properties, a 22% decline and 1,642 listed properties less than the end of 2009. It has been a long tough road but our local market is showing every sign of a recovery.
During June, 697 properties sold vs. 735 in the same month last year. There are 721 pending sales from June vs. 646 pending sales at this same time last year. As a result of the past month’s closings activity, there is just a 5.1 month inventory for properties listed under $500,000 – the market that has had the most activity in the last several months, compared with 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is currently an 11.5 month inventory, certainly an improvement from the 19 months at the end of 2010. For inventory over $1,000,000, there is 24 months of inventory, equal to the number of months inventory at the end of 2010. At the close of 2009 there was a 45 month supply of inventory at the over $1,000,000 price-point.
In Michael Saunders’ recent blog she wrote, “Now is an opportunistic moment to list your home for a potentially faster and more satisfying outcome.” Of course, the same can be said for buying! Add to the current diminished inventory the steadied mortgage rates, and this is clearly a most advantageous time for our market and parties on either side of the table. With the absorption of properties reducing our inventory and the strong gains in contracts, the next outcome can only be an uptick in home values.
Distressed sales, which are either a bank owned property or a short sale, are going to affect pricing locally for the short-term. However, the percentage of total sales in the distressed classification is trending downward each month, and significantly fewer than 2010. Studies show that Sarasota is below both Florida and the US in terms of foreclosure activity. The majority of these are under a $500,000 list price. Of the listings in our market at that price point, 19% are distressed sales. Listings priced from $500,000 to $1,000,000 only 57 or 7.5% are distressed sale listings and over $1,000,000 there are only 25 or 4% of the listings. Of the properties sold year to date, 44% were distressed sales – 1,830 of the 4,155 properties sold year to date. All but 62 of these were under $500,000 and only 11 were over $1,000,000.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold YTD column is the total sales for 2011 and 2010 Year-to-Date. The Listed YE ’10 (Year-End) column shows the listing inventory at the end of 2010.
This pdf report contains statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors.
We are always available to answer any questions you may have regarding market conditions and the optimum time to buy or sell your property. Please contact us with any questions.
Real Estate Report – May 2011 – Sarasota, FL
Prepared by Michael Moulton, CRS, Broker-Associate
Michael Saunders & Co
As I have reported here over the last few months, the overall available inventory of homes has been steadily declining. We currently have just under six months of overall inventory based on the May closings activity, a good sign that the marketplace is maintaining a positive and stable course. This is the first time in a long while that Sarasota has gotten under the magical threshold. The overall inventory is approximately 500 properties lower than the end of April and 21% better than year-end 2010, or 1,233 less listed properties. Six months of inventory is established as the benchmark for a “neutral market”! A recent “Metrostudy” report, the leading provider of market research for more than 35 years, says that our market ranks at the top of those that “posted the largest decreases in our finished/vacant inventory” year-over-year.
In the month of May 2011, a total of 781 properties sold vs. 746 in the same month in prior year. There are 676 pending sales in May, which is similar to the pending sales from May 2010. As a result of the past month’s closings activity, there is just a 4.7 month inventory for properties listed under $500,000 – the market that has had the most activity in the last several months. The supply is lower than the 5.5 months documented in April, 7 months at the beginning of the year and 11 months at the beginning of 2010. In the segment between $500,000 and $1,000,000, there is currently a 10 month inventory, down from 16 months at the end of April and certainly an improvement from the 19 months at the end of 2010. For inventory over $1,000,000, there is 28 months of inventory, equal to the months inventory the end of 2010. The months of available inventory does vary on a month to month basis based on that month’s closed sales.
Unfortunately, sellers continue to be faced with the challenge of having to be competitive with the heavy inventory of distressed sales listings and the fear of a glut of product entering the market as the supply of foreclosure units works its way through the system. Distressed sales, which are either a bank owned property or a short sale, are definitely affecting pricing locally and will continue to do so. The majority of these are in the under $1,000,000 list price. Of the 4500 active listings in our market, approximately 22% are distressed sales. The luxury market clearly has the advantage with only 23 or 4% of the active listings being distressed property listings in the over $1,000,000 group. Of the properties sold year to date, 52% were distressed sales – almost 1550 properties of the approximately 3558 properties sold. 44% of the sales under $1,000,000 and just 4% of the sales over $1,000,000 were distressed sales. There is evidence, provided by Moody’s Analytics, that the distressed trend is on the verge of subsiding, but when that will happen consistently is still uncertain. Other experts claim that in markets such as the luxury end, where foreclosures and distressed sales are minimal, it is expected that pricing will begin gaining.
The following statistical data is provided through the Multiple Listing Service (MLS) of the Sarasota Association of Realtors. The table summarizes what happened in each price segment. The Sold (Closed), Pending and Listings columns are sales and listings for the month of the report, and the Pending and Listed are the current totals of each in the MLS system. The Sold YTD column is the total sales for 2011 and 2010 Year-to-Date. The Listed YE ’10 (Year-End) column shows the listing inventory at the end of 2010.
This pdf report contains statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors.
We are always available to answer any questions you may have regarding market conditions and the optimum time to buy or sell your property. Please contact us with any questions.
