Longboat Key Real Estate Blog

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Reported numbers can be created to say anything we want them to, so they must always be taken with a grain of salt.  This is particularly important when we study numbers about real estate property sales.  When we read headlines like the one below, “August property sales up; prices remain stable,” we are pleased and relieved.  That said, note that when Sarasota numbers are quoted, they represent homes in Englewood as well as homes on Longboat Key….this could mean a spread of millions of dollars in value and thousands of square feet!

How was the market for luxury waterfront homes in Sarasota during August….that’s the question my customers want answered.  In short, I would answer that August was, as it traditionally is, a slow month, with typically fewer showings translating into decent contract activity.  Certainly when you have fewer buyers around, you have fewer sales.  That said, our office on Longboat Key sold just under $20 million worth of properties during August, a number which is up 20% over last year of number of homes sold.  Prices remained stable for the month.

Read below to see what the overall Sarasota market did during August.

August property sales up; prices remain stable

The Sarasota real estate market rebounded in August 2010 after an expected slower July, following the expiration of the federal $8,000 homebuyer incentive. Sales were up 8 percent over July 2010, and up 14.3 percent over August 2009.
 
Property sales in August 2010 stood at 567 total sales. This compared to 525 sales in July 2010 and 496 sales in August 2009.
 
There were 408 single family home sales in August, with the median price at $154,500, almost identical to last month's figure of $155,000. The median price was also $155,000 in August 2009, and has been steady throughout the last 12 months ($161,000), fluctuating between a high of $170,000 and a low of $150,000.
 
Condos saw 159 sales in August, with the median price rising by 22 percent to $155,000 from last month's figure of $127,000.  For the last 12 months combined, the median sale price for condos was $169,900. 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.
 
Pending sales also rose in August to 816, from last month's figure of 653, for a 25 percent increase. The rise bodes well for the closings in the early fall months.
 
"It was very encouraging to see that the market recovered nicely after a drop in sales from June to July," said 2010 SAR President Erick Shumway. "After experiencing a five-year high in sales for the second quarter, everyone knew the loss of the homebuyer tax credit would have a negative impact. But we saw a big jump in sales for August, and prices held steady, so this market still has legs and the recovery appears to be a healthy one."
 
The level of sales of distressed properties (foreclosures and short sales) dropped in August 2010 to 47 percent from last month's figure of 48.7 percent of the overall market. Distressed market sales were at a high in late 2009, and have hovered in the range between 44 and 48 percent since that time.
 
The property inventory level remained fairly consistent, remaining just over the 6,000 level in August 2010, which remains one of the lowest monthly levels since late summer of 2005.
 
The months of inventory for single family homes in August 2010 dropped to 9.5 months from 10.4 months in July. The figure was 10.3 months in August 2009. This figure represents the number of months it would take to sell all available homes at the current pace. For condos, the figure dropped to 13.5 months from 14.4 months in July 2010. It was substantially lower than the August 2009 figure of 20.5 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

For a list of statistics, please click here.

IN this video Roger talks about what he is experiencing in the current Sarasota Florida real estate market climate.

This might turn out to be one of the best summers we have experienced in a long time in Sarasota!  The weather has been beautiful, especially for those who have been visiting our coastal areas and barrier islands.  Rarely are the temperatures higher than 92 degrees, and the cross breezes make it comfortable.  Not to mention the ability to jump in your pool, or better yet, the Gulf of Mexico or Sarasota Bay.
 
If you are a fisherman, the fish have been plentiful.  Our waterways have remained pristine, not a hint of oil in sight.
 
From a real estate perspective, things are looking up too.  Month after month we are reading reports from the Board of Realtors which tell of shrinking inventories, small price increases and record year over year sales.  While we are still in a Buyer’s market, the market trends are good news for a market which is trying to recover.
 
I have personally closed over $30 million of luxury waterfront properties so far this year (since January 1, 2010).  This summer has been very strong for me with over $7 million in closed sales.  The summer is an interesting time for sales in our area, kind of hit or miss.  We have far fewer Buyers in town looking for properties.  That said, when a Buyer does come to town looking for property, they are much more likely to make a purchase.  In fact, they come with the purpose of buying something, and they usually do.
 
Of interesting note has been the uptick in the number of high end, water front condominiums on Longboat Key.  There have been 14 closed sales over $1,000,000 in the past 90 days!  (See chart below).  This is a strong performance for our typical “slow” season.

The national news might be bleak and uninspiring when it comes to real estate, but quite the opposite is true here in Sarasota.  According to the Sarasota Multiple Listing Service, property sales reached their highest level in five years! 

I am finding that many of our buyers are familiar with our area; they have been waiting for a “real estate bottom” to form, and they believe they have found one.  Prices are at 10-year lows, mortgage rates at 20-year lows, and there is a good selection of properties to choose from.

The following press release was just issued by the Sarasota MLS:

Property sales again reach highest level of the year in Sarasota real estate market
The Sarasota real estate market remained active and vibrant in June 2010, in spite of the loss of the federal home buyer tax credits, oil crisis rumors, and the sluggish national economy.
 
Property sales in June 2010 in the Sarasota market once again topped the 700 mark, with 776 total sales - once again the highest of the year and the highest total since December 2005 when 784 properties were sold. The figure of 776 sales topped the May 2010 total of 766, the previous high, and was 27.2 percent higher than June 2009, when only 610 homes and condos sold.
 
In June, 576 single family homes were sold, 28.3 percent higher than June 2009, when only 449 single family homes sold.  The median price was also trending higher at $175,000, the highest figure in 11 months.  Not since June 2009 has the market seen single family home values this high.
 
Condo sales in June were 200, a 24.2 percent increase over June 2009, when 161 condos were sold.  The median price of condos fell in June to $145,000, which primarily reflected distressed property sales.  Non-distressed condo sales saw a median price of $236,000, while for distressed properties, the median sale price was $88,000, about a third.
 
For the last 12 months combined, the median sale price for single family homes was $165,000. For condos, the median price over the last 12 months was $185,000.
 
Pending sales were once again strong, hitting 767 -  slower than the period during which homebuyers were eligible for tax credits.  The March and April pending sales figures both topped 1,000 and reflected a last minute rush to beat the federal homebuyer tax credit deadline.
 
"With the expiration of the $8,000 tax credit we had anticipated a potential drop off in sales, but the level of pending sales still shows strength in the market," said 2010 SAR President Erick Shumway. "The June figures are a testament to the strength of this market, and prove the old adage that all real estate is local. There are still a lot of serious buyers in our market, and we hope this very active period continues through the usually slower summer months."
 
The level of sales of distressed properties (foreclosures and short sales) rose slightly in June 2010 to 44.6 percent of the overall market, from 40 percent in May 2010. The distressed market topped 48 percent in late 2009.
 
The property inventory level dropped below the 6,000 level in June 2010 at 5,993, which is the lowest level since late summer of 2005.
 
Another interesting statistic in June was the fact that in nearly every price range below $250,000, inventory levels have dropped below a six-month supply, entering "seller's market" territory.  This generally precedes a period when price appreciation should be expected.
 
The months of inventory for single family homes in May 2010 dropped to 6.6 months, the number of months it would take to sell all available homes at the current pace. This was a significant drop from June 2009 - 10.0 months - and very near equilibrium. For condos, the figure rose slightly to 10.6 months, much lower than last June's figure of 16.1 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.

Coldwell Banker’s Roger Pettingell is once again leading the pack with $27,403,000 in closed sales so far for 2010 (With another $4 million in sales pending).  This sales figure places him at the top of the Sarasota/Manatee County Multiple Listing Service for sales through July 21, 2010.  Of note is that Pettingell’s sales are 25% higher than the next agent on the list.
 
When asked why his sales are so strong in an otherwise challenging market, Pettingell says “I sell waterfront luxury properties in an incredible community. I offer extensive marketing to my sellers, both in print and on-line; I also make sure seller’s present their properties as good values for buyers.”
 
Pettingell has worked in real estate sales on Longboat Key for over 25 year and has consistently been one of the area’s top producing real estate agents.  In 2008, he was awarded the National Leadership Award by Coldwell Banker for being its top agent in the state of Florida.

Click HERE to read the original article in REAL® Magazine

Property sales in May 2010 in the Sarasota market once again hit the highest total since 2005 and median sale prices continued the steady pace observed in recent months. The 766 sales were the highest for the year, topping the April 2010 total of 757, and were the highest total since December 2005, and 51.3 percent higher than the May 2009 total of 506 sales.

Pending sales were once again strong, hitting 857, but were slower than April 2010. The March and April pending sales figures both topped 1,000, and reflected a last minute rush to beat the federal homebuyer tax credit deadline.

The median sale price for a single family home was also trending higher at $169,000, up 8.4 percent from last May's figure of $155,000. For the last 12 months combined, the median sale price for single family homes was $165,000. For condos, the median price was $184,500, slightly higher than last May's figure of $181,000, while the median sale price for condos over the last 12 months was $192,000.

The pace of sales quickened for single family homes, with the average days on market dropping to 168, from 195 days last May. For condos, the figure stood at 213 days, slightly higher than last May's figure of 203 days.

The level of sales of distressed properties (foreclosures and short sales) rose slightly in May 2010 to 40 percent of the overall market, from 38 percent in April 2010. The distressed market topped 48 percent in late 2009, so the overall trend remains downward - a good sign for a market returning to normal.

The property inventory level remained steady in May 2010 at 6,094, which is the lowest level since late summer of 2005. The months of inventory for single family homes in May 2010 dropped to 7.2 months, the number of months it would take to sell all available homes at the current pace. This was a significant drop from May 2009 - 14.3 months - and very near equilibrium. For condos, the figure fell to 9.7 months, much lower than last May's figure of 19.0 months. Once the market reaches the 6 month level it is considered to be in equilibrium between a buyers and sellers market.