The Moulton Sarasota Real Estate Report – March 21, 2012
Recent data has shown that small gains in prices are starting to be seen in some neighborhoods the Sarasota Real Estate market, especially in the lower end of the price spectrum. Add to that the signs of reducing median time properties are spending on the market and the narrowing between list and sale price, and there’s no denying we’re looking at some interesting and encouraging trends. The National Association of Realtors recently surveyed 4000 members and an overwhelming 67% reporting they believed this year will see measurable increases in home prices under $400,000. A good example of local evidence is that the median sale price of homes in the month of February had remained static in the years 2009-2011, however, in February of 2012 we experienced a 13% increase in the median sale price over the prior year, as per data gathered by Trendgraphix a leading analyst for the real estate industry.
There continues to be great dialogue about the so-called “shadow inventory” of houses in foreclosure, however I believe that lenders are much better prepared to manage these properties and the impact of these in our Sarasota market can be marginalized to prevent a glut that could significantly affect the positive movement we are experiencing now.
Finally, as I have in past posts, I just wanted to mention the persistent feeling of optimism amongst home builders. Experts believe that residential construction is poised to make a considerable contribution to the country’s overall economic growth in 2012. Much of their confidence is buoyed by the consumer patterns being reported but, there is strong evidence that the record applications for building permits will bring some wonderful new inventory to our Sarasota market where much of the most desirable locations are left with “picked-over” properties.
With list prices steadily strengthening and demand healthier, the spread between buyers and sellers is narrowing and more balanced. Reports of gains in consumer confidence are also triggers to help to stabilize our Sarasota marketplace but, what makes our region so special and attractive, our quality of life, makes us a virtual microcosm within the nationwide trends and inclinations and gives us greater opportunity during these early recovery days. For all of the reasons noted in this post, I continue to believe that we are positioned for a sustained increase in pricing, demand and, of course sales!
In Michael Saunders’ weekly post that she titled “Sarasota Real Estate – Nowhere To Go But Up”, she cites specific data and evidence to support our shared enthusiasm for better days ahead in the Sarasota Real Estate market. You can read the Saunders article here.