Sarasota Home Sales Off To A Solid Start In 2014! Following a record breaking year in 2013, home sales were the second highest in the 90 year history of the Sarasota Association of Realtors, the new year sales forecast is looking very strong.
Although January's sales in the Sarasota Real Estate Market were down from December, they were up 10 percent over last January's. In addition, pending sales (a good indicator of future months sales) were up from previous months indicating a strong sales performance in the coming months.
Other strong indicators for a robust Sarasota Real Estate Market are price appreciation, the median sales price for a single famiy home was up 21.3 percent over last year and condos were up 17.1 percent. The median sales price for a single family home in the Sarasota Real Estate Market is currently $187,000 and $165,000 for condos.
Inventory of homes for sale is now up to a 32-month level; a 30 percent increase above July 2013 when inventory was at an historic low. This increase in inventory means buyers have a much greater choice on homes when making their selection. It also adds balance to the market between buyers and sellers. The last year had been a very, very strong sellers market.
"The Sarasota County real estate market saw near record sales last spring, so anything approaching that level would be welcome news," said Sarasota Association of Realtors President Peter Crowley. "The fundamentals of the market would certainly indicate a solid spring ahead. The state tourism level just hit a record high. We have had a mild winter while the northern states have experienced heavy snowstorms, and that tends to drive the level of visitors up. Once people see what Sarasota has to offer, many tend to want to relocate. And that's where our members can certainly help."
While Florida remains the number one state in the country for foreclosures, the rate has dropped substantially, from 10.1 percent in 2013 to 6.4 percent currently. Sales of distressed property in the Sarasota Real Estate Market were 24.9 percent of January's sales, but that is down considerably from the 50% level in 2011.
A current concern is the effect of the new flood insurance rates created by the Biggert-Waters Flood Insurance Reform Act of 2012. New flood insurance rates have skyrocketed putting a damper on sales of any homes in a flood risk zone. Many buyers are only willing to look at homes that are not in a flood zone area requiring flood insurance. Remedies are pending in Congress, but appear to be stalled. Until this issue is resolved, the Bigger-Waters Act is having a severely negative impact on real esatate sales. Sellers with property in a flood prone area are urged to pay for a current Elevation Certificate. A potential buyer cannot get a quote on flood insurance without one.
Overall, market conditions remain strong and the Sarasota Real Estate Market is poised for another banner year!
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