Sarasota real estate inventory still at low levels
After hitting an eight year low in May of 2013, it seems that the inventory of Sarasota homes for sale in the marketplace has dropped even lower as of the beginning of August. For comparison, this year saw an eighteen percent decrease in the number of available homes as compared to last June. While a smaller inventory of homes can be seen as a good sign for sellers, as there is increased competition for the few homes left, it creates a more difficult task for those currently seeking a home. The law of supply and demand in relation to rising prices can be seen in its simplest form in our current market.
In particular, Sarasota single family homes have seen a dramatic rise in the number sold as compared to Sarasota condominiums for sale, which actually saw a slight drop. The result of this shift in the dynamic has led to a roughly fourteen percent increase in total sales of single family homes as compared to last year. It's interesting to note that if this trend can continue, it will be one of the highest sales volume years in the entire history of the SAR. The last time that we have seen these types of numbers was in 2004, right at the start of the boom. The main difference between the boom time market and this market is that the buyers are much more qualified now. Most buyers are paying cash or putting down 20% which will stablizes the mortgage market and leads to values of homes increasing.
Pending sales is another interesting statistic, as once again it is one of the highest that SAR has ever seen. What's important to note here is that it is the sixth consecutive month for these types of unusually high sales. As pending sales are strong indicators of future sales, it would seem that the ensuing months could see repeats of June's extraordinary sales period.
Unlike some of the other statistics discussed, median sales are not particularly high or low. This means that the increase in value of homes seems to be slowing from its double digit increases, but is still on the upward trend. This is good news for buyers for the moment, but it is likely to change as the inventory of homes continues to drop at a rapid pace.
SAR President Roger Piro is particularly pleased with this development in the Sarasota home market, remarking that it is a large improvement over the lull that was typical during this season in previous years. In regards to the large number of family homes being sold, as opposed to condominiums, Roger Piro believes that this is indicative of the type of buyers that the Sarasota area is welcoming. Namely, home buyers that are relocating in the summer and attempting to settle into a new home before school starts.
If you're interested in the homes currently available in the Sarasota market, it's a good idea to start searching right now. As of June 2013, homes are averaging three months until closing from the day they come on the market, and market value priced homes are receiving multiple offers in the same week they become available. This is one of the lowest levels in over a decade, so acting fast is highly recommended. For comparison, homes as far back as November of 2008 were stuck in inventory for, on average, twenty four months. All things considered, homes dropping to four months in inventory are a fantastic sign for the current state of the home market.
It's interesting to note that while sales in June and July were much better than in previous years, Sarasota short sales and bank ownded property figures were basically identical to the ones experienced in May. While this is great for property values and neighborhood stabilization, the market had relied on these types of properties for increased inventory. Based on various reports, it seems the short sale and foreclosure market is going to continue decreasing, creating even less inventory. Basically, if you are considering selling, now is the time. There are many qualified buyers ready, willing and able to purchase your home. If you are looking to purchase, this is still a great time as interest rates are still rock bottom and the overall pricing is drastically down from the peaks.
If you are interested in Sarasota real estate or have questions about the buying or selling process, we'd love to help. Please contact Key Solutions Real Estate Group, or call (941) 894-1255.