Maureen Horn
| Phone: | 888-926-7101 toll free |
| mobile: | 941-539-=3384 |
| fax: | 941-387-8155 |
GREETINGS FROM SARASOTA
OCTOBER NEWSLETTER
Wow, what a few weeks we've had. We all know the challenges we face with our Financial Markets and the Bailout (rescue plan etc.) . We won't know how to fix the problem until we totally understand what the problem is. I do have confidence that there are some very smart ethical people working on the solution. I've had some conversations with a few of you that have purchased and some who have waited thinking the prices were not at the "bottom". Sarasota housing prices have already come down 20% and 25% (in some cases) and Sellers that are able are willing to take losses because life goes on. Through all this upheaval Sarasota is attracting Buyers. Just this week we have 4 customers coming in to Buy. Two from overseas and two domestic. All have been coming to Sarasota for awhile and decided now is the time to buy.
!!! CASH IS KING!!!
Not to long ago Buyers where putting in low offers and after the offer was rejected they exclaimed " BUT IT IS A CASH DEAL" Sellers did not care. Due to termoil in the Financial Markets we are starting to see Seller attitudes change due to the uncertainty of financing. Here is a recent scenario. Buyer 1 was putting 1/2 down on a over 2.5 million dollar property. Offer was accepted at 11% below listing price. Buyer 1 was having a problem with financing . Buyer 2 on the same property, the same week, was a all cash purchase. Seller accepted offer 6% lower than Buyer 1 because it was a Cash deal. We are seeing this scenario in all price ranges not just the upper end. Now I guess Cash could make a difference.
Sarasota is still shining. Inventory continues to decrease, properties priced correctly are selling and yes, financing is available here. Most of us read the same National Newspapers and hear the same reports on the Business Channels about the Real Estate Market and most tend to believe these reports apply to all markets in this Country. Real Estate is local. You cannot compare the Sarasota Florida market to Sacamento California or Houston to Detroit. As noted in the report below even though the Summer season is normally the slowest time of year for real estate sales we continue to see good sales and inventory levels drop. One of our customers waiting to sell her home in Massachusettes has just received a contract. Hooray.
Best Regards
Maureen and Steve
September 24, 2008
Sarasota Association of Realtors
Despite a late summer and early fall dominated by depressing economic news across the nation, property sales in the Sarasota MLS did not see a dramatic change from the previous month, continuing a traditional slower summer sales season.
Overall sales stood at 440 in August, only slightly lower than the 454 in July. In fact, sales in August 2008 were actually higher than in August 2007, when only 430 overall single family homes and condos were sold.
The biggest decrease from last year was in condominium sales, which fell to 84 this year compared to 122 last year. The August 2008 report continued to show strength in pending sales, which stood at 536, just off last month's total of 584. In August 2007 only 456 pending sales were reported, which forecasts a stronger market for the fall and winter months. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months.
Sales prices for single family homes decreased somewhat in August, falling to $226,250 from last month's median of $250,000. But condominium prices saw a resurgence to $295,000 from July's $252,500. This means most property is apparently holding its value better locally, which also means the local market is doing better than the statewide and national downward trends.
"The national financial crisis has obviously dominated the news this month, but fortunately our market appears to be weathering yet another storm very well," said Helen Sosso, 2008 SAR President. "These are difficult times for many businesses and industries, and the real estate industry is no exception. But the Sarasota market is blessed with many fundamental strengths and attractions, one of which is our highly skilled and professional group of real estate brokerages and agents. In difficult times, the guidance of member agents in the SAR is vital to achieving your most advantageous property transaction."
Inventory levels in August 2008 dropped for the sixth consecutive month, and are the lowest they have been since late 2005. There were 6,461 single family homes listed, compared to 8,677 in July 2008, and 2,407 condos listed, compared to 4,599 condos listed last month. However, some of this discrepancy is likely attributable to the new MLS system which became operational in early August and resulted in the elimination of much of the duplication in property listings between the five area member associations (including the Manatee Association of Realtors).
The current local market, despite the negativity in the national news, continues to demonstrate statistically that we have a great selection of more affordably priced housing for buyers to visit and purchase. In addition, declining inventory levels normally indicates the market is returning to a more historical balance, which eventually leads to normal, long-term price appreciation.