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 Not since 2005 have we seen the level of home buying activity in the Sarasota – Bradenton real estate market that we have today. A total of 759 properties were sold in April and 796 in May, the highest level in 6 years. Home and condo prices, while still at bargain levels, are also now at their highest level.
The median sale price for single family homes was just over $155,000 in April rising to $159,000 in May. The median price for condos was $185,500 in April, and surged to $218,750 in May, the highest level since October 2009.
Equally impressive has been the drop in the inventory of unsold homes and condos from 5,501 in March to 5,258 in April, and 5,010 in May, again the lowest level in six years.
Even more indicative of growing buyer interest is the fact that the Moulton Real Estate Report for May observed that in the price range with the most activity (properties under $500,000), there is now just 4.7 months of unsold inventory on hand in the Sarasota market, down substantially from the 11 months of unsold inventory on hand at the beginning of 2010. A real estate market is considered to be in balance between buyers and sellers when the supply of unsold homes is at approximately 6 months.
Sarasota Association or Realtors, President, Michael Bruno said recently “We have been trending in the right direction for several months now, and we’re starting to witness a return to the point where multiple buyers bid on a particular property. As the inventory of available properties drops, competition increases for the homes for sale, and prices naturally rise. The only thing holding back even greater (price) appreciation appears to be the percentage of distressed properties.” Distressed property sales are those which are either bank-owned or short sales, meaning the home was sold at a “below market” price. Bruno suggested recently that “this year’s numbers are strong simply on the basis of the market’s wealth of quality homes and condos available. Buyers are finding tremendous values at all price ranges…”
This year’s continued upward trend in home sales is coming from all segments of the buying public, second-home buyers, retirees, first-time buyers and investors. Simultaneously, the percentage of distressed sales is coming down. Only 38% of all May sales were distress sales compared to 47% as recently as February and a high of 51% in November 2010. Significantly, in the most popular “under $500,000 price range” only about 22% of the homes currently on the Sarasota market are distressed sales, according to the Moulton Real Estate Report for May. This decreasing number of distressed sale properties on the market shows that people are snapping up these bargain-priced properties while there are still such bargains available and mortgage interest rates are at historically low levels.
Prospective buyers are beginning to recognize that the bottom, or something very close to it, has probably been reached. The Sarasota Bradenton real estate market is currently presenting buyers with an opportunity to buy a home or condominium in one of America’s “Favorite Small Cities” at prices not seen in over a decade.
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