In November 2012, the Sarasota Association of Realtors, or SAR, saw a sale of over 764 Sarasota real estate properties. This was a 29% increase over the sales from November 2011’s total sales of 602. The figures for November 2012 were also 8% higher than the sales for October 2012 of the 719 properties that were sold. These figures have placed the SAR on track to realizing the 4th highest annual sales figures that they have seen in their 90 year history.
Thanks to the active market experienced during the Summer and Fall, as well as the increase in interests and offers on the properties available, the number of properties available has reached the lowest level that has been seen in the last 10 years. Given the improvements in the economy as well as the improvements in the employment outlook the recovery of the real estate market is gaining on the road to recovery. The figures of the sales themselves look very promising with sales from last November going from 435 single family homes and 167 condos to increasing this November to 556 single family homes and 208 condos.
According to SAR President, Laura Benson, the Sarasota real estate market is experiencing a fortunate time as the interest rates are staying at an all time low, this means that properties are affordable, yet the economy is still improving. Although the traditional season for buying is only just beginning the market is still remaining strong, and no wonder considering that in November of 2011 the market inventory was 4,253 and this year’s November market is only 3,543. This means that there were 18% more properties for sale last year as opposed to this year.
Although the number of pending sales for November 2012 was 905, dropping from the 954 pending sales from October 2012, the pending sales for November 2012 is still 14% higher than what they were from the year before, with November 2011 reported pending sales only being 782. According to Benson’s predictions with the pending sales still remaining relatively high, there should be a continuation of these types of statistics in the foreseeable future. The only possible negative note would be that of a so-called fiscal cliff that con potentially impact the real estate industry.
The actually dollar amounts of the sales themselves show promise in their increase as well. Last year's median sale's prices for single family homes was $162,000 and $127,000 for condominiums. However, in October 2012 the prices increased to $176,000 for a single family home and $160,000 for condominiums. Although the single family homes did decrease slightly in November 2012 to $174,450 the price of condominiums remained steady at $160,000. Percentage wise this translates to an 8% rise for the single family homes and a 28% rise for the condominiums.
Not only do the median sale’s prices show promise but the median prices themselves show promise as well. The prices for the past 12 months stood at $172,500 for single family homes and $174,700 for condominiums. The rolling median price for the previous year was at $156,074 for the single family homes and $158,000 for the condominiums. This shows a gradual increase in the price trend that is shifting upwards.
Aside from the sales increase to indicate the improving climate the months of inventory also testify to this fact; this is used to represent the amount of time that it can take at the current sales rate to deplete inventory. In November 2011 the single family homes stood at a 6.9 months inventory while condos were at a 9.8 month rate, while November 2012 showed a rate of 4.1 months for single family homes and 6.1 months for condos. At the lowest point of the market, November 2008 the figures were 24 months for single family homes and 41.7 months for condos. In attempts to help the market conditions the NAR has requested that the mortgage interest deductions be left in their current form. Another positive note is the fact that the U.S. Census has indicated that people are relocating consistantly from state to state.
If you have any questions about the Sarasota real estate market or about the buying or selling process, we'd love to help. Please contact Key Solutions Real Estate Group, or call (941) 894-1255.