Summer, our traditionally softer selling season in Sarasota Real Estate, has shown persisted strength and stability in nearly every statistical assessment. Prices have continued their slow and steady climb, inventories are improving, distressed inventory remains on the down-swing, pending sales are stable, and new construction at all price points is active. All of the market fundamentals along with tremendous “foot traffic” seeking to buy, give me confidence in projecting strong fall and winter selling seasons, leading to a robust spring 2015. The information for this month’s Moulton Sarasota Real Estate Report is gleaned from a number local, regional and national resources allowing for a broad look at the real estate market, enabling a comparison of our local “micro-climate” to markets outside our region.
- According to the Sarasota Association of Realtors data, July was the 5th month in a row sales hovered around the 1,000 unit mark, reaching 936 properties changing hands.
- In the county’s history only once has there been a five youtube to mp3 online konverter month hot streak of over 1,000 closed transactions, March through July 2005.
- Though the results are notable, Sarasota sales were down 11.4% from June and down 4% from last year last year.
- For the first seven months of 2014 closed sales are very close to last year’s pace which was the second highest in the 91 year history of the Sarasota Association of Realtors.
- All Florida sales of single-family homes were reported to be 5% above last year and condo sales almost 7% behind last year.
- On a national scale, total sales fell 4.3% compared to July 2013.
- Sarasota’s distressed sales (short sales and bank owned) as a percentage of total sales were 19.5% in July 2014 vs. 24.9% in July 2013, a major improvement.
- National sales of distressed homes represented 9% of total sales.
- At the market’s worst in 2011, 50% of the homes sold in the Sarasota area were distressed properties.
- As the number of distressed properties in our inventory is reduced, median sale prices are being positively affected.
- Median prices for all properties in the Sarasota area climbed to over $200,000 for the first time since August 2008.
- Single-family homes increased 6% and condominiums had an impressive surge of 29% over prior year.
- The median price for single family Sarasota properties sold in July was $201,000 and condominiums was $205,000. Last month both were $195,000.
- In a 12-month look at our Sarasota median prices, which moderates monthly swings, single-family homes have increased 11.2% over the previous 12-month cycle and condos have risen 10.6%.
- Florida’s single-family median sale price for July was 3.6% above last year and condos improved 7.4% over 2013.
- Nationally, median prices for single-family homes rose 5.1% and condos just 3.3% from prior year.
- Pending sales continued to reflect this summer’s robust buyer activity with 901 pending contracts, a similar number to a year ago.
- The number of pending contracts signed last month were 30% higher than 5 years ago.
- Analysts believe, and I agree, that the pace of pending sales for this past month indicates that our sales volume in August and September should help to maintain stable market conditions through the balance of our slower selling season.
- In contrast, US pending sales for July fell 2.1% compared to the same month last year.
- Based on the monthly average of sold properties during 2014, the Sarasota Real Estate Market has a supply of inventory of just 3.9 months of available properties for sale, well below the recognized market stability point of 6 months of supply.
- In the $500,000 to $1,000,000 price range there is 6.4 months of inventory.
- $1,000,000 and above properties have 11 months of inventory.
- It is interesting to note that in our local market 86% of the properties sold this year have been under $500,000.
- Since the low point of our market during the recession, Sarasota’s inventory has fallen almost 40%.
- The continued inventory shortage will keep upward pressure on prices, though in my opinion not enough to cause concern of inflated values.
- In comparison to Sarasota’s low inventory, nationally and throughout Florida inventory is at a 5.5 month supply, much closer to the level considered to be neither a buyer or seller market.
- New condominium project developers are reporting reservations are at or above projections, which has helped to get construction underway, and will ultimately help to rebalance the severe shortage of condominium inventory in the region.
All of the above information helps to paint a comprehensive picture of the Sarasota Real Estate Market. With continued pressure from lower inventory, high buyer confidence reflected in the rising prices, a steady pace of pending sales leading into our “shoulder” season, all indicate a Stable Sarasota Market.
As we move into our busier season in the months ahead, it would be prudent for anyone considering listing a property to begin the process swiftly as I am already receiving inquiries from buyers seeking to “beat the rush” of the peak season. Please let me know if you are contemplating a sale of your property so that we can bring it to market in time to meet the demand that I expect to see beginning next month.
The following statistical data is provided through the Sarasota Association of Realtors for properties throughout Sarasota County. The table summarizes what happened in each price segment.