Here's
a press release sent to the news media:
Sarasota market continues to stabilize after boom
years
Sales figures
year-to-date for homes and condominiums in the
Sarasota MLS are close to the market totals
experienced in 2006 - declining only a modest 6 percent through the
first eight months of 2007 compared to the same period in
2006.
In total, 4,460
closings were reported through the end of August 2007, compared to
4,747 closings through August 2006. These numbers are reminiscent
of the market in 2000, when a total of 4,051 closings were
reported, and 2001, when there were 4,732 closings through Aug. 31.
However, home and condominium prices have increased dramatically
during the past seven years.
Pending sales
remained above 450 for the month of August, indicating the winter
months will likely not see the kind of drop in sales experienced in
the later months of 2006. Pending sales climbed by 164 percent from
August 2006, when only 170 pendings were reported. This provides a
strong indication that the market will not see the stall in sales
that occurred during the end of 2006. The higher number of pending
sales will likely mean sales activity will remain higher during the
next 30 to 60 days.
Condominium prices were up
year-to-date, with the median sale price through the end of August
at $365,000, compared to only $310,000 for the same period in 2006.
This marks a 17.7 percent increase. The median price was only
$292,925 for the first eight months of 2005, often cited as a
period within the boom years.
The median sale price of a home
was $310,000 year-to-date through August 2007, compared to $350,000
for the first eight months of 2006, for an 11.4 percent
decline.
"I am still
convinced that we have weathered this adjustment period in sales
volume and prices very well, particularly compared to the rest of
the state," said Joe Hembree, 2007 SAR President. "We continue to
go through a period of adjustment in the Sarasota market, and there
has been some depreciation in both the number of sales and the
median price. But we are emerging from the downturn faster and
stronger than other markets in the state and nation, and I see no
reason to believe we will not continue to see growing
strength."
With an eye
toward the bigger picture, and discounting the historically
abnormal years of 2003-2005, we have seen a return to the normal
market experienced as recently as 2001 and 2002, Hembree
noted.
Dr. Lawrence
Yun, Senior Economist with the National Association of Realtors®
indicated in an address at Lakewood Ranch Golf & Country Club
on Sept. 14 that he believes there has been a negative spate of
news concerning foreclosures, hurricanes, property taxes and
insurance increases. This has left potential home buyers with the
impression that the bottom of the real estate cycle has not been
hit, which he believes is an untrue analysis. In fact, the
quarterly figures compiled by FAR and NAR indicate that prices in
the local market appear to have bottomed out in the fourth quarter
of 2006, and have risen since that time.
"They have jobs,
their income is rising, but they are saying, 'I'm going to step
back,'" Yun said of the potential home buyers.
But Yun noted
July's median price of houses sold in the Sarasota-Bradenton MSA
was roughly $277,000, a bargain for the beaches, sunshine, golf,
fishing and general location that the region offers. Yun said this
means real estate agents need to tell the true story of
Florida.
Regarding the
hurricane scare, only six Category 3 or greater storms landed on
Florida's mainland from 1950 to 2003, although eight touched down
between 2004 and 2005. "The chances of that happening again are
low," Yun said of the disastrous two-year period.
Yun predicted
the Florida housing market will recover from the current malaise,
get stronger in 2008 and will be booming again by 2010, once people
again realize that Florida's assets are unique.
Home and
condominium sales declined in August 2007 to a total of 430 sales,
as local families began to settle into the school year and plan
ahead for the holidays. However, this figure is still 21.1 percent
higher than the low point in the recent local market, reached in
December 2006, when only 355 sales closed.
Sales have
escalated since then, and have remained stronger throughout
2007.
The Sarasota Association of
Realtors
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