Sarasota Home Sales Reach Eight-Year High In May! The Sarasota Real Estate Market continues to break new records every month this year with May topping them all so far. For the second month this year sales have hit the 1,000 mark. Only 11 months in the Sarasota Association of Realtors 90-year history have sales hit the 1,000 mark. The previous 9 months occurred in 2004 and 2005 the height of the real estate boom.
Specifically, 737 single family homes and 283 condominiums were sold in May in the Sarasota Real Estate Market, an increase of 19.4 percent over May of 2012. Pending sales (indicating future closings) also increased to 1,157. Pending sales have been over 1,000 every month this year!
Median sales prices have also continued to increase in the Sarasota Real Estate Market. The median sales price for single family homes was $220,000 in May 2013, an increase of 18.8 percent over last May. The median sales price for condominiums was $194,250, an increase of 8 percent over last May.
"There hasn't been any let up to this very strong spring market," said SAR President Roger Piro. "With the continuing high level of pending sales, it appears that June will continue to show a very high level of closings. This spring surge appears to be poised to continue into the summer months."
Available inventory continues to be a challenge in the Sarasota Real Estate Market with only 3,297 properties available. The shortage of inventory is posing challenges for buyers. Multiple offers and requests for highest and best from traditional sellers is common. In the under $300,000 range bidding wars are back. New listings often have caravans of buyers with their agents lining up at the door! However, for a motivated buyer working with a diligent Realtor, homes can be found.
While the euphoria is high, and sales in the Sarasota Real Estate Market continue to boom, there could be some dark clouds on the horizon depending on how they are interpreted.
The current months of inventory in the Sarasota Real Estate Market is 3.0 for single family homes and 3.9 for condominiums. A 6 month supply of inventory indicates a market balanced between buyers and sellers. A 3.0 month inventory is definitely a seller's market. The lack of available inventory could be due to the fact that 40 percent of mortgage holders are still underwater and, therefore, unable to sell their homes without having any equity. There has not been very little discussion of this in the media.
Distressed sales are also coming down and were only 23 percent of all sales in the Sarasota Real Estate Market in May. This is down significantly from the fourth quarter of 2010 when that figure was 51 percent. The recent increase in new foreclosure filings has Florida as Number One in the country with 6 of the top 10 foreclosure markets in Florida. Add to that, the logjam of 350,000 current foreclosure cases now in the Florida courts could begin to find their way on the market in the coming months.
The bulk sales of foreclosed homes by banks to hedge funds, who often pay significantly over market, is driving prices up and swallowing a good portion of the inventory that would have been available to homebuyers. How long this continues, and the long term effect on the market, is difficult to determine.
In the meantime," fish are jumpin' an' the cotton is high" . . . it's Summertime! Sarasota Home Sales Reach Eight-Year High In May!
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