Sarasota, Florida (PRWEB) November 25, 2012
The mantra that “cash is king” appears to be one ruling dictum that will steer the Sarasota real estate market as it heads into 2013, Sarasota Bay Real Estate reports. The full service realty firm noted that in recent months, it isn’t uncommon for highly desirable sales-listed properties to receive multiple offers. In such a situation, the all-cash investors will definitely have the edge even against higher offers that are backed by some bank financing.
Sarasota Bay Real Estate predicts that more and tighter bidding wars can be expected next year as big buyers have become conspicuous in the market, searching for unsold homes, particularly distressed residential properties. The continuously thinning home inventories, including those on foreclosures and short sales, are likely to further heighten competition among buyers and provide further impetus on prices.
The realty firm, which sealed a number of major Sarasota home and condo sales this year, noted that home inventories in the Sarasota real estate market this September dropped to 3,460 MLS (Multiple Listing Service) listings, a fourteen-year low. For the same month, short sales or foreclosures declined 6 percent to 534 properties in the MLS from the 570 distressed residential offerings in August this year. Total inventory of Sarasota homes for sale in September 2012 showed a diminishing share of foreclosures which stood at 15.4 percent for the month. This compares with the 16.3 percent share in August and the 17.3 percent at the start of this year.
Noticeably, there has also been a sharp decline in the foreclosed properties bound for listing in the Sarasota real estate market. Foreclosures in the county dropped sharply from the 6,838 recorded during the property meltdown in August 2008 to 5,660 in September this year. Foreclosure filings have likewise dropped dramatically, with 2,738 lis pendens cases (the first step in foreclosures) recorded during January–September 2012. This level compares with the 6,349 lis pendens lawsuits filed during the same period in 2008.
Escalated buying and continuing interest by institutional investors appear as major contributors to the thinning of foreclosed Sarasota homes for sale, Sarasota Bay Real Estate said. The New York-based investment firm Blackstone Group, for instance, this October bought twenty-three Sarasota properties and fourteen more in Manatee, as part of an $80-million spending spree across Florida. Blackstone, all told, bought 536 Florida properties in October 2012 alone.
What investors like Blackstone search for are attractively priced residences, such as foreclosures, that can be profitably converted into rental properties. Their thinking is based on historical data showing that at least 30 percent of the American population chose to rent rather than own a home. Moreover, many prospective home buyers have damaged credit and yet to recover from the 2008 sub-prime mortgage market disaster and be eligible for new home loans.
One final take here is the prospect waiting for the individual buyers. Can they compete with these big investors who have a war chest for home purchases? Sarasota Bay Real Estate said that the choice of a realtor will dictate much of the capability of small players to have a fighting chance in competing against institutional buyers. “Those individual buyers that have seasoned realtors or broker agents on their side can definitely remain competitive,” the realty firm said.
About Sarasota Bay Real Estate
Sarasota Bay Real Estate is a full service real estate brokerage serving Manatee, Charlotte and Sarasota County in Florida. Sarasota Bay Real Estate is owned by two partners, Christina Miller and Roy Hunter. Mr. Hunter is a real estate marketing professional who previously owned an international marketing company is Brisbane Australia. Mr. Hunter is known for his compelling marketing products and legendary Sarasota real estate websites that currently receive well over a thousand visitors every day.
Buyers or Sellers of real estate can reach Christina Miller at Sarasota Bay Real Estate at (941) 713-2340