Blog

Aug
26
Generous July for Sarasota Home Sellers

Sarasota Market Stats - July 2013

We continue to see a surge in the Sarasota market into the month of July. This means great news for people looking to sell their single family homes. The list prices continue to soar as well as the final selling price. Taking a look at the sales trend in 2013, we see that many of our months have continued to escalate into the four figure mark. Looking at the numbers, we see that July fell just shy of this marker, but we are still looking at a record breaking sales year. You can just ask anyone who has been following the Sarasota market or better yet participating in it and they will tell you that they have been busier than ever. Let’s take a look at what July has to offer our busy year for buyers, sellers, and real estate professionals.





On Track for a Record-Breaking Year

This year, members of the Sarasota Association of Realtors (SAR) have recorded a total of 911 sales for the month of July. Compared to July 2012, we have an astronomical increase of 30.3 percent for our summer month and we are delighted to see that production is up. Also up 3.2 percent, are sales from June to the month of July. We are still on track to have a record breaking year in SAR’s 9 decade history, and are just waiting for the final year-end totals for 2013 to take the number one spot in sales.



Average Sales Price Sizzles!

Another hot topic on our plate is the growth of our average sales price. Of course there are variables when looking at different homes with different features, but overall the comparisons are quite astonishing. Just looking at the increase from June to July we see that the median selling price for a home was $200,000. Looking at our generous month of July this year, this figure has risen to $227,500! This is a whopping 7.2 percent increase just in 2 months.



Even more exciting, is the comparison to last year’s average of $195,000, which results in a 16 percent increase with only 7 months into this year! If we stay on this track for the remainder of year, we are looking at the largest year-to-year increase in four years.



"With sales up dramatically and prices also trending upward, the popularity and strength of the Sarasota market is unquestionable," said SAR President Roger Piro. "The quality of the properties on the market, plus our overall attraction to both domestic and foreign buyers, has made this one of the best years on record to this point."



Condos Unable to Keep Up

With such dramatic rises in single family home sales, one would expect condos to follow suit. Not so. Looking at the figures, the median price of condos dropped 15.6 percent. In June we saw an average sale price of $192,500 and were severely disappointed in July with a median at only $162,900. The good news is that this isn’t the lowest drop in condo prices we've seen; January 2013 actually takes the award for the lowest average sales price of $130,000.



As a member of the real estate community, you learn to take the good with the bad and count your blessings. So, looking at the positive, which month takes the award for the highest condo sales price; we see that May is quite deserving, with an impressive $194,500 average. The reason for such a low number would have to be attributed to the increase in sales of condos priced at or below the $100,000 mark.



Good News for Available Inventory

Now, time for the good news we have been waiting for; let’s talk about our real estate inventory. Finally, I get to write the word "increase" next to the word "inventory," with a June to July total increase of 1%. Looking at the numbers, we see that June recorded a total of 3,114 which was at its lowest level in over a decade. Even though we are recording a 13% decrease from last July’s numbers, this July we recorded a total of 3,152 listings. Being that the inventory has been so low, we are seeing more competition than ever for agents to list homes and condos. It’s really a matter of supply and demand.



What Does This Mean to Buyers & Sellers?

What does all this really mean to the average Sarasota consumer? For buyers, you're going to see home prices on the increase slightly. Not only do our buying clients have to worry about paying more, but also making a decision to get the property under contract sooner. Chances are if a property is priced right and meets the mandatory criteria, someone else is deciding whether to make a move themselves. With sales as high as they are, buyers need to stay informed as to the competitiveness of the market.



What is our market and its trends telling someone thinking of selling their home? If you’re thinking of selling, and you can get a higher closing price than before - what are you waiting for? Potential sellers are getting off the fence and making the move to get a sign on the yard and realtors at their door for showings in anticipation for the right offer. Since home owners are starting to make a more rapid decision to list their home, the numbers for available inventory will gradually start to increase.



"The fact that we saw sales 30 percent higher this July than last July seems to be the biggest news this summer in local real estate," said Piro. "Most agents are clearly not taking the summer off and vacationing, because the buyers are here and they are anxious to buy in this area. This is a positive, historic time, and the moderate rise in single family home prices coupled with the fluctuating condo market prices indicates we are not seeing a new bubble. This is just a genuinely popular place to live and invest in real estate."



Foreclosures & Short Sales Down

Currently, 364 properties listed for sale in the MLS are short sales or foreclosures, which is down from last month's figure of 379. This represents 11.5 percent of available properties, a decrease from last month's figure of 12.2 percent. Sales of distressed properties represented about 24.9 percent of the overall sales in July 2013, which is up slightly from the June figure of 23 percent, but much lower than the 51 percent figure experienced in the fourth quarter of 2010.



Distressed figures in July totaled 25.8 percent of sales for single-family homes, and 22.3 percent for condos. This market is allowing our stressed out and financially extended clients to avoid a short sale situation and even worse, foreclosure. It’s refreshing to see that the economy is up and we are able to see buyers relieving distressed sellers to the point of removing their financial burden all together.



The July real estate market in Sarasota has been much more delightful, refreshing, and busy as ever.



For more information about Sarasota real estate, or available listings, please don't hesitate to contact us at (941) 284-4474 or Toll free (941) 404-4737. One of our qualified Sarasota agents will gladly get back to you.


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 Keller Williams Island Life Real Estate         The Coffey Group Fine Homes International                   Longboat Key Island Office               Coffey & Divald Property Management

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