Friday, June 17, 2011

Sales Surge Continues in May; Condo Prices Soar - Sarasota Real Estate

The Sarasota real estate market continued its strong spring showing in May 2011, with 796 total sales reported by members of the Sarasota Association of Realtors? - the second highest total in the past six years.

Only the March 2011 sales figure of 800 has been higher since the end of the real estate boom of 2003-2005. Prices for both single family homes and condos also climbed in May 2011, with the condo median sales price of $218,750 at the highest since October 2009. For single family homes, the figure in May rose to $159,000, just under the March high of $159,250, continuing the 2011 upward trend.

The total available property inventory dropped to 5,010, another big decrease from last month?s level of 5,258, and once again the lowest level in the past six years. The inventory reached its apex in April 2007, when 17,089 properties were on the market.

The lower inventory, combined with the higher sales rate, has now dropped the months of inventory to 5.8 months for single family homes and 7.4 months for condos, both figures the lowest since 2005. The 6 month level is traditionally a point which represents equilibrium in the market between buyers and sellers. At the point when the market was at its most unbalanced in favor of buyers, in November 2008, the figures were 24 months for single family homes and an incredible 41.7 months for condos. Once the figure trends downward below 6 months, buyers are often forced to compete for properties, which generally drives prices higher.

?Clearly, we?ve seen an amazing improvement in our market in the past three years,? said SAR President Michael Bruno. ?We have been trending in the right direction for several months now, and we?re starting to witness a return to the point where multiple buyers bid on a particular property. As the inventory of available properties drops, competition increases for the homes for sale, and prices naturally rise. The only thing holding back even greater appreciation appears to be the high percentage of distressed properties.?

Even that statistic is trending in a healthy direction, as the overall percentage of distressed sales (short sales and foreclosure sales) dropped to 38 percent of the May 2011 sales. That compares to 47 percent as recently as February 2011 and a high of 51 percent in November 2010.

The May statistics also compare favorably to May 2010, when the $8,000 federal homebuyer tax credit initiative was helping improve local sales. The tax credit drove up spring sales last year, but this year?s numbers are strong simply on the basis of the market?s wealth of quality homes and condos. Buyers are finding tremendous values at all price ranges and are making offers.

Single family home sales stood at 546 for May 2011, roughly the same as last May (539). Condo sales were at 250, about 10 percent higher than last May (227). Median sales prices for single family homes was at $159,000, a little lower than last year at this time ($169,000), but higher than last month ($155,430) and comparable to the March 2011 high of the year ($159,250). For condominiums, the median sale price hit $218,750 in May, up from $185,500 last month, and 18 percent higher than May 2010 ($184,500).

Pending sales dropped to 841 after hitting a recent peak of 1,208 in March 2011, continuing to reflect the seasonal population migration north. Pending sales are properties going under contract during the month, and the statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity. Last May, pending sales were at 857.

?We aren?t seeing any lingering negative issues with our local market,? explained Bruno. ?Judging from the statistics, and the continuing positive word of mouth I?ve been hearing from SAR members, the Sarasota real estate market is demonstrating strength and resilience during these difficult times.?

Source: http://www.luxurysarasotarealestate.com/blog/sales-surge-continues-in-may-condo-prices-soar.html

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