Retailers and consumers alike wait all year for Black Friday, traditionally the biggest shopping day of the year. Consumer price index, state of the economy, political campaigns and more hang on the buying trends of Americans during this frenzy of price slashing and bargain hunting.
“Black Friday,” however, has become somewhat of a season, extending low prices as early as Halloween until after the New Year. And that’s what’s happening with real estate prices in Sarasota and neighboring counties. For homebuyers, this is Black Friday season.
Home prices have plunged to the lowest in months, perhaps years, with the median sale price of $137,100 in the Sarasota/Bradenton area.
Why do buyers seem reluctant to pounce? Some say that there is still room for prices to fall. Others are concerned with the legal aftermath of purchasing short sales or repossessed homes, or of finding themselves in neighborhoods where the decline is not yet evident but may be lurking behind a well-kept façade.
But much of this is just not the case in Sarasota. Contrary to most of Florida, inventory levels are at the lowest point in the long time, especially in highly desirable areas such as Siesta Key. High quality properties are being offered at rock-bottom, Black Friday, prices, but this trend is not expected to last much longer. With fewer homes to choose from, and the distinction of having the nation's #1 beach, Sarasota is hot.
“We are finding ourselves in multiple offer situations more and more often,” says William True, Broker, of True Real Estate. “The inventory level simply is not high enough in popular communities.”
With the backlog of foreclosures not expected to level out for another 12 to18 months, those homes will still be in good condition and ready for sale. Buyers need not go to Macy’s or Best Buy on Black Friday to get a half-price deal. They may just find it in their next home.
Sales should be strong next year, and prices will remain low as long as the inventory is replenished. The consensus is that prices have come close to bottoming out, which is good for the buyers’ market.
If buyers can purchase a home at half of what its value was just four or five years ago, now is the time to buy.
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