Sales up; inventory at six year low in Sarasota market

The number of available properties in the Sarasota real estate market dropped to a six-year low in February 2011, and sales were up 24.2 percent from the previous month. Median sales prices for both single and condominiums dropped as bargain hunters continued to grab foreclosures and short sales, which represented almost 47 percent of all sales.
Compared to this time last year, sales were up 27 percent to 673 total sales, from February 2010′s total of 528 sale. There were 472 closings on single family homes and 201 closings on condos last month by members of the Sarasota MLS.

In addition to the positive sales figures, pending sales also registered above the 1,000 level in February, with 1,023 total properties going under contract last month. In January 2011, 1,013 properties went under contract. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity.

Last February, pending sales reached 967. But that figure was pushed upward by the approaching April 2010 deadline for the homebuyer tax credits. This year’s upward trend is being fueled by buyers of all sorts – investors, second-home buyers, and those who realize that today’s lower home prices coupled with low interest rates present buyers an opportunity not seen in years.

Lower median sales prices, which dropped slightly for single family homes (to $137,500 from $138,700) and condos (also to $137,500 from $142,500), were the only cloud. The decreases were likely associated with the continued price pressure of distressed property sales. Normal arm’s length sales still average nearly three times the price of distressed properties in the Sarasota market.

On the positive side, the drop to the lowest inventory level in six years (5,864) could mean upward pressure on sales prices moving forward, according to SAR President Michael Bruno.
“Traditionally and historically, fewer properties on the real estate market usually causes price appreciation,” explained Bruno. “It’s simply a matter of supply and demand.  If there are more buyers competing for a smaller number of properties, selling prices are usually driven up. Hopefully, we’ll soon see a return to the traditional local appreciation levels of between 5 and 7 percent annually. That would represent a very healthy market.”

The higher sales totals combined with the lower inventory caused a sharp drop in the months of inventory to 8.0 months from 10.2 months in January 2011 for single family homes, and to 10.4 months from 14.1 months for condos. Only two years ago, in January 2009, there were 25.3 months of inventory for single family homes and 38.4 months of condo inventory. The market is considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6 month level.

The median price for the last 12 months stands at $160,000 for both single family homes and for condominiums. The single family figure was exactly the same as a year ago, while the condo figure dropped from last year’s figure of $185,000.

Information provided by the Sarasota Asssiation of Realtors

Pending sales surge in January 2011

Pending sales in the Sarasota real estate market experienced a major climb in January 2011, from 789 in December 2010 to 1,013 last month for a 28 percent increase. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity. It was the first time pendings have exceeded the 1,000 mark since April of 2010, when the looming homebuyer tax credit expiration date was fueling sales activity.

Overall, sales hit the 537 mark in January, higher than last January’s total of only 506 sales, but somewhat disappointing compared to the 681 sales in December. January is traditionally a slower sales month due to the holidays, and sales have dropped from December to January over the past several years. Last year, sales dipped in January but surged strongly in February, March and April. The dramatic rise in the pending sales last month, coupled with positive word of mouth reports from SAR members, predicts a potential repeat of last year, even without a homebuyer tax credit.

“The market is very lively right now,” said SAR President Michael Bruno. “I recently held an open house and had very high foot traffic compared to recent months, and I’ve heard from other Realtors^® in the association who are experiencing the same thing.”

The breakdown in January 2011 was 384 single family sales and 153 condo sales. This compared to 350 single family sales in January 2010 and 156 condo sales.

The median sales price for both single family homes and condos was down in January 2011, as distressed property sales exceeded 50 percent of the local real estate market and pulled the overall median figures lower. The single family median sales price was $138,700, while the condo median dropped to $142,500. Both figures were above $160,000 the previous month, as well as last January’s figures.

The overall median price drop reflected the lower prices for both foreclosure sales and short sales. For single family homes, the median sales price for a foreclosure was $87,900; for a short sales, $130,000; and for normal, arm’s length sales, $225,000. For condos, the three categories stood at $61,000, $128,500 and $230,000 – a dramatic range of prices. More than half of all single family sales – 54 percent – were distressed sales. For condos, distressed sales were 41 percent of the overall total.

“Clearly, we continue to see three very distinct markets in Sarasota,” noted Bruno. “Buyers who want to avoid delays and other potential problems and complications on distressed properties are willing to pay a higher price for homes and condos. We continue to look forward to the day when these distressed properties return to traditional levels in Sarasota. The rebound in the national economy appears to indicate that day is coming.”

Inventory remained at a very low level in January (6,072 available properties), only slightly higher than last month’s figure of 6,047. But the lower sales volume caused a rise in the months of inventory to 10.2 months from 7.8 months in December 2010 for single family homes, and 14.1 months from 11.7 months for condos. Only two years ago, in January 2009, there were 25.3 months of inventory for single family homes and a very high 38.4 months of condo inventory. The market is considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6 month level

For the year 2010, overall sales were up 12.4 percent compared to 2009 – 7,603 to 6,739 total sales. Sales in the Sarasota market have now risen for two consecutive years since a low point of 5,820 sales in 2008.

Information furnished by the Sarasota Association of Realtors ]]> http://www.ecointernationalre.com/featured-blog/january-2011-statistics-of-homes-for-sale-in-sarasota-fl/feed/ 0 http://www.ecointernationalre.com/featured-blog/canadians-purchasing-property-in-florida/ http://www.ecointernationalre.com/featured-blog/canadians-purchasing-property-in-florida/#comments Wed, 12 Jan 2011 20:51:53 +0000 kirsten http://ecointernationalre.com/?p=736 Are you a Canadian citizen considering purchasing property in Florida? If so, would you like to know the answers to the following questions?

• How long can a Canadian citizen visit or “winter” in Florida?
• Can Canadian buyers obtain financing on a Florida property?
• What restrictions are there for Canadian or Foreign National buyers purchasing homes in Florida?
• Will Canadians pay tax on rental income generated from Florida investment property?
• Will Canadian homeowners be subject to capital gains tax when they sell their Florida property?

Click here to see answers to these questions and more.

For more information or real estate guidance in Florida, contact Eco International Real Estate, we specialize in helping international buyers purchase property and making the experience a pleasant one. Ask for a copy of our booklet, Purchasing a Sarasota Home, normally a $19.90 value.  Mention you saw this article and we’ll email it to you at no charge.

How long you plan to live in the home?
Selling a home costs money.  If you potentially may have to move in the short term, the value of your home may not have appreciated enough to cover the costs of buying and selling.
The length of time that it will take to cover those costs depends on various economic factors. Average appreciation tends to sit at around 5% per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs.  The real estate market can be particularly volatile, however, and dramatic swings up and down are not uncommon.

How long the home will meet your needs?
What features do you require in a home to satisfy your lifestyle now? Five years from now? People tend to remain in homes longer than they initially intend, primarily due to the work and expense associated with moving.  Therefore it is worth considering a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you’ll need will help you find a home that will satisfy you for years to come.

Your financial health – your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can usually  find a lender to lend you money, people with poor credit tend to pay far more to borrow.
Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. It is, however, important to stay within your comfort zone.  Purchasing a house involves many up-front and ongoing costs, and the stress of worrying about those costs often outweighs the satisfaction that may come from owning a slightly nicer home.

To determine how much home you can afford, talk to a lender or go online and use a home affordability calculator. Good calculators will give you a range of what you may qualify for. Then call a lender. While some may say that the “28/36″ rule applies, in today’s home mortgage market, lenders are making loans customized to a particular person’s situation.
The “28/36″ rule means that your monthly housing costs can’t exceed 28 percent of your income and your total debt load can’t exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential, and other factors, lenders can push the ratios up to 40-60% or higher. While we’re not advocating you purchase a home utilizing the higher ratios, it’s important for you to know your options.

The ongoing costs of home ownership.
Maintenance, improvements, taxes, and insurance are all costs that are added to a monthly house payment. If you buy a condominium or townhouse, a monthly homeowner’s association or maintenance fee will be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your Realtor® and your lender aware of your desire to limit these costs.

If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.
Eco International Real Estate specializes in helping buyers with their home purchase. Contact us so we can help you realize your dream of home ownership.

Eco International Real Estate specializes in helping buyers with their home purchase. Contact us so we can help you realize your dream of home ownership.

For those of you looking to see what Sarasota is about, or you already live here and are looking for something to do, visit my blog Best Reasons to live in Sarasota/Manatee, FL.

Sarasota real estate market enjoys sales and price rise in November 2010
November 2010 saw resurgence in the Sarasota real estate market, with more sales and higher median sale prices indicating a healthy seasonal boost. There were 534 total sales reported last month, compared to 487 in October 2010 and 553 in November 2009. The median sale price for single family homes rose to $160,100, from last month’s figure of $147,500, and for condos the price stood at $159,000 – slightly higher than the October 2010 figure of $158,525. The stability in the median sale prices shows signs of improvement.

Overall sales rose by 9.7 percent in November 2010 compared to last month, but about 7 percent lower than last November, when the $8,000 homebuyer tax credit buoyed sales as the initial period was due to expire. Looking at the most recent five months, there has been a fairly steady trend in sales and prices, a sign of recovery.

Pending sales were also strong in November 2010, and at 764 were very near the total in November 2009 (793), when the market was strengthened by the homebuyer tax credit initiative. With no tax credit currently in effect, the high pending sales figure is evidence of a stronger market. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity.

The property sales breakdown in November 2010 was 369 single family home sales and 165 condos. Condo sales saw the biggest resurgence, growing 21.3 percent from October 2010.
“There certainly appears to be a solid foundation for consistent, stable sales and prices as we enter the new year,” said 2010 SAR President Erick Shumway. “While the foreclosure situation remains a potential barrier to quicker price appreciation, the local market seems to be absorbing that factor and adjusting to the new reality.”
The median sale price for single family homes over the past 12 months was $163,000, and for condos was $165,000. Last year at this time, looking back over the previous 12 months, the median sale price for single family was $160,000, and for condos was $198,500.

Inventory rose slightly in November 2010 to 6,207 from 6,069 in October 2010. But due to the higher sales volume, the months of inventory for single family homes dropped to 10.9 months in November 2010 from 11.1 months in October 2010. The figure was 9.4 months in November 2009. Months of inventory represents the number of months it would take to sell all available homes at the current pace. For condos, the figure fell to 13.3 months in November 2010 from 15.9 months in October 2010. It was at 14.6 months in November 2009. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

There was good news on the distressed property sales front, as short sales and foreclosure sales fell to 46 percent of the overall sales. Much lower sales prices for distressed sales continue to be the primary reason for the overall median price at a level lower than would be expected, with normal arm’s length sales garnering three-times as much as bank-owned properties, and twice as much as short sales on average.
“The level of distressed sales dropped in November to 46 percent, from 50 percent in October and 54 percent in September,” noted Shumway. “There are still two distinct markets in the Sarasota area – one consisting of distressed sales, and the other normal, arm’s length sales. But it’s encouraging to see that downward trend, and once the distressed sales get back to a normal, historical percentage, we should see a return to traditional appreciation levels.”

Besides our glorious weather, Sarasota offers all the amenities of a large city but none of the hassle- A world class arts community which includes our own Ballet, Opera, Orchestra and several performing arts theaters.

A culinary experience that will appeal to anyone’s pallet with a strong emphasis on local, independent owners – within a 20-mile radius of downtown Sarasota, there are more Florida Trend Award and Zagat top-scoring restaurants than any other area – and every one of these award winners is independently owned.

With our world renowned beaches, golf courses, and parks, what’s not to love? For more information on the Sarasota/ Bradenton, Venice area, click here.

If you are considering moving to the Sarasota, Bradenton, Venice are, contact us at info@EcoInternationalRe.com for a complimentary copy of our relocation guide, Purchasing a Sarasota Home, normally a $19.90 value.

10.  The grass, if you can call it that, will be as tall as an elephant’s eye and the landscaping that was there will be growing across the sidewalks making it difficult to walk to the entry door.  Then there is the possibility that there may be living things in that overgrown grass and landscaping.  I suggest wearing waders when approaching any such growth, so pack them or bring them with you.

9.  Once the door is finally opened you will dodge mud wasp nests and spider webs always keeping in mind we have two dangerous spiders that like vacant houses – the Black Widow who spins her web from the bushes to the house and the Brown Recluse who likes to hide behind the lock boxes.  I will give you the code and a can of spider spray, you can yell to me when it is safe to come into the house after you check for spiders.

8.  The power and the water have been turned off, the bank expects me to pay to have them turned on, I think the lender who will make a lot of money on the deal should turn everything on, not me.  Therefore this house will be dark, musty and hot.  I will provide hand held fans and flashlights and nose plugs if needed.

7.  Now here is the really tricky reason I really don’t want to go into a vacant, foreclosed home-we don’t know if it is really vacant.  I suggest loudly knocking on the door as well as yelling as you enter before waving me in, because vacant homes have been known to have residents.  I will arm you with pepper spray.

6.  Now that you have assessed no humans live in this home, please be aware critters may have taken up residence.  If one window has been left open, one door, one dryer vent from the clothes dryer the owners stole there could be critters.  I will provide  more pepper spray.

5.  Now that you have assessed the fact that there are no human or animal critters living in this house, look down.  That crunching sound under your feet is not a trail of potato chips, in Florida they would not crunch.  Those are our state bird – the Palmetto bug also known as the largest flying cockroach known to man.  I have seen some as big as the State of Rhode Island.  Keep the waders on please.

4.  Keeping those flashlights on please train them to the wood moldings and anything else that is wood and I will at this time hand out magnifying glasses so you can get down on your hands and knees and look for sawdust piles.  If you see any then you will know that these are definitive signs of termites or other wood destroying organisms.  Nasty!

3. Please train your flashlights to the corners of the ceilings in the bathrooms and laundry rooms where you might find mold lurking.  The advice by officials of the power company here is to crack one window on a vacant home so mold doesn’t develop – I guess they would rather have vermin move in than mold.   If there is a swimming pool be advised we do not have green pool paint here that is an overgrowth of algae.

2.  I know as you walk through these homes you will have noticed that there are no appliances, kitchen cabinets, plumbing fixtures or lighting fixtures.  That’s okay you want to re-design your new dream home to your perspective of what is acceptable.  If you purchase a foreclosure and get all the above cleaned up, killed, and repainted with everything brand spanking new here is the #1 reason I will not sell YOU a foreclosed home.

1.  You may not actually own it.  That’s right after plunking down all that money, doing all that work to make it YOUR dream home YOU MAY NOT ACTUALLY OWN IT and I don’t want to be sued.

The lawsuits to regain ownership are happening.  It is not fiction and I want to give credit to our newspaper “The Saint Pete Times” for putting this news on the front page and not shying away from it as so many media representatives do.

The case here in Pinellas County was brought by Michael D Carlson who claims that he never knew he was in foreclosure until it was over.  Bank of America sold the house to another couple – imagine that!   Robo-signing, falsified documents, or failure to notify defendants as Carlson is claiming could prove very interesting.

Just one or two cases like this – let me say that again – JUST one or two cases like this could create a lot of noise said Alan White of Valporaiso University where he is a law professor.

I just know down the road I could get embroiled in a lawsuit and THAT is why I will not sell you a foreclosed upon home.  There are wonderful short sales as well as (imagine this) non-distressed properties on the market.

If you want a foreclosed property I can refer you to a hot-shot agent who would love to sell you one.  Me, I love my job.  I intend to be here selling and lising homes for a long time and I do not plan to be in a court room.

This article was written by Carole Sanek.

Lawns and garden
A large lawn can be pleasing to the eye, but it’s usually a bear to maintain. Lawns are energy and resource suckers, requiring regular mowing (time, emissions and noise), watering, fertilizing, pest control and weeding. When considering buying a green home, ensure the garden and lawn is local climate compatible and is constructed in a way to keep the need for maintenance and the application of chemicals such as weed killers to a minimum. Small lawn areas, mulch, native plants are all positive indicators that some thought has been put into this aspect. If there is a lawn area and you don’t yet have a mower, consider buying an emissions-free alternative; a reel mower.

Land
How was the property used prior to the home being built? Some home owners have been shocked to find high levels of heavy metals and other pollutants when soil tests are performed around their residence. This is especially troublesome where a back yard vegetable garden is supplying the family with some or all of its food. In Florida, where so many of our new home communities are constructed on land that used to be agricultural, the soil could have high levels of arsenic. It’s important to check into the history of the area.

Energy audit
As energy consumption will play a major role in your new home’s ongoing environmental impact and there are a lot of points to consider, when you’ve narrowed down your choices it may be wise to invest in a professional energy audit before you sign the dotted line, which can help reveal issues you may not have considered.

To find a company offering this service try typing the following into Google: home energy audit Sarasota (or whatever town where the house you’re considering buying is located). Or you can contact your local utility company. They will often do it at no charge.

Thank you for visiting our website. We hope that you find these green tips helpful. Please check back often for updated information.

September 2010 property sales a mirror image of August

September 2010 looked a lot like August 2010 in the Sarasota real estate market, with sales and prices virtually identical to the previous month. In fact, September 2010 was also virtually identical to September 2009 in overall sales and median prices.

Property sales in September 2010 stood at 547 total sales, compared to 567 last month and 554 last September. Prices were also virtually identical. September 2010 saw a median sale price of $155,000 for single family homes and $150,450 for condos. This compares to $154,500 last month and $165,000 last year for single family homes; and $155,000 last month and $162,500 last year for condos. In effect, the market has essentially stood still for 12 months, with minor fluctuations in prices month to month. There was an expected spike in sales experienced during the three months of the federal $8,000 homebuyer tax credit period.

“We’ve observed a very steady local real estate market for the past 12 months,” said 2010 SAR President Erick Shumway, noting the market stability is a welcome trend.

The median sale price for single family homes over the past 12 months was $164,000, and for condos was $169,000. Last year at this time, looking back over the previous 12 months, the median sale price for single family was $165,000, and for condos was $200,000.

There were 404 sales of single family homes in September 2010, compared to 408 last month and 399 in September 2009. There were 553 pending sales last month, which reflect future closing activity. The inventory rose slightly, from 3,887 to 4,007.

Condos saw 143 sales in September 2010, compared to 159 last month and 155 in September 2009. There were 191 pending sales reported in September, slightly lower than last month’s 217, but higher than the 185 reported last September.

Distressed condo sales have dragged the overall median price down substantially, with normal arm’s length sales garnering three-times as much as bank-owned properties, and twice as much as short sales on average.

Overall pending sales dropped slightly in September to 744 from last month’s figure of 816.

“The one factor that continues to be a drag on the median sale prices has been the level of distressed sales,” said Shumway. “We continue to have a market heavy on short sales and bank-owned property sales. Once those percentages drop, we should see a return to clear property price appreciation.”

The level of sales of distressed properties (foreclosures and short sales) rose in September 2010 to 54.6 percent, from last month’s figure of 47 percent. This was the highest percentage since the distressed market began to show dominance locally. Distressed market sales previously reached a high just below 50 percent in late 2009, and have hovered in the range between 44 and 48 percent since that time. The median sale price for distressed sales continues to be less than half as much as for normal arm’s length sales – in many cases approaching only a third as much.

The property inventory level has remained fairly consistent for months, hitting 6,163 in September 2010, which remains one of the lowest monthly levels since late summer of 2005.

The months of inventory for single family homes in September 2010 rose to 9.9 months from 9.5 months in August. The figure was 9.8 months in September 2009. This figure represents the number of months it would take to sell all available homes at the current pace. For condos, the figure rose to 15.1 months from 13.5 months in August 2010. It was also at 15.1 months in September 200. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

If you are considering moving to the Sarasota/Bradenton/Venice area, email me at info@EcoInternationalRE.com for a complimentary copy of our booklet, “Purchasing a Sarasota Home.”

Statistics provided by the Sarasota Association of REALTORS®

According to a recent report by the U.S. General Services Administration, green buildings have 13% lower maintenance costs and consume 26% less energy. Though there is a common perception that “going green” can be cost-prohibitive, property management professionals and  building owners and developers are discovering that greening their properties is not only cost-effective but can be truly profitable. Green Housing, by real estate professional and certified green-building expert Barry P. Weaver, is a timely manual for those who have the desire but not a great deal of capital to accomplish green upgrades.

Green Housing provides valuable information not only for property managers and maintenance staff, owners, developers, builders and planners, but also apartment residents. It offers a comprehensive guide to energy conservation, recycling, building maintenance, and apartment living that focuses on environmental concerns. The scope of the book is practical and its contents are easy to understand and access. Included in Weaver’s book are knowledge self-assessments at the end of each section, and a glossary and references to dozens of Internet sites for further information on recycling, energy use, appliances, etc.

“Green building practices,” Weaver says, “reduce the overall impact of the built environment on human health and the natural environment. And building owners, developers, and property management professionals can play a leading role in reversing environmental damage.”

In Green Housing, you’ll learn how to:

• Save between 5%-20% on energy bills
• Reduce costs for operations and maintenance
• Reduce waste, pollution, and environmental degradation
• Extend equipment life
• Protect occupant health and employee productivity
• Improve indoor air quality
• Implement a green operation and maintenance plan
• Implement a resident green education program . and increase cash flow and asset value

The book may be purchased at http://www.nahma.org/store/index.html.

About the Author:
Barry P. Weaver is a committed “green” professional who has a comprehensive background in organizational leadership and real estate finance, development, construction, operations, and asset management. He is a Certified Property Manager (CPMR), a LEEDR Accredited ProfessionalR, National Affordable Housing Professional (NAHP-e), and a Specialist in Housing Credit Management (SHCM). Weaver is also a real estate broker, who holds the National Association of Realtors’ (NAR) Green Designation, and a member of the U.S. Green Building Council.