Sarasota, Fl (PRWEB) August 27, 2012
Expect prices of real estate in Sarasota, Florida, to trend much higher in coming months. Price escalation and buyer competition is sure to result as fewer properties are available in the market based on the July 2012 inventory. The total number of available residential properties during the month was estimated at a 10-year low of 3,644, which was a 4 percent reduction from the June level of 3,816. Inventories a year ago were approximately 20 percent higher than the current levels.
The benchmark of months of inventory, the period it would take to sell current available properties at current sales rate, is also trending close to decade lows. Using this parameter as the gauge, it would appear that the situation is now that of a seller’s market, particularly for single family homes. Traditionally, analysts regard a six-to-seven month inventory as the transition point between a buyer’s and seller’s market.
This July, the inventory for single family homes was registered at 4.5 months. This compares with the 6.4 months of inventory in July last year and the 24 months of inventory posted when the market bottomed out in November 2008. For condos, the inventory as of July 2012 stood at 7.5 months, down from the 10.7 months of inventory a year earlier and 41.7 months during the 2008 low.
The resurgence in prices of Sarasota real estate for sale is evident in the median sale prices during the January-July 2012 period compared to the year-earlier record. The running median in the seven-month period for single family homes was estimated at $168,500, up from $156,000 a year ago. The sales price median for condos was at $167,000 in the first seven months of 2012 as against $162,500 in the same 2011 period. On a month-to-month basis, single family homes’ median sale price was marginally lower at $178,000 this July from $178,500 in June. The median for condos dropped slightly from $195,000 this June to $176,000 in July 2012.
Notably, prices of single family home for sale in Sarasota, as of this July, are more than 30 percent higher than the market’s low 16 months ago when prices averaged $137,500. Likewise, condo prices are now nearly 40 percent higher than the $127,000 posted during the market’s low point.
Besides the tight inventory, the price uptick this July is also attributable to the reduction in the number of distressed properties. For the month, 575 properties were on the foreclosures/short sales list, down from the 604 listed this June. Currently, the total number of distressed properties in the market is within the lows of the past three years.
Prospects for improved Sarasota real estate inventories hinge principally on how fast builders and developers gain confidence in undertaking new residential projects. One major development announced recently was the new Haddington neighborhood in the Country Club East community of Lakewood Ranch. Another in the pipeline is the plan of Jebco Ventures to build 45 townhomes in a 2.05-acre site at Ringling Blvd. in downtown Sarasota.
About Sarasota Bay Real Estate
Sarasota Bay Real Estate is a full service real estate brokerage in Sarasota Florida owned by Sarasota real estate broker, Christina Miller, and marketing professional, Roy Hunter. Together they, and their team of well-experienced agents, provide some of the highest quality real estate marketing services for the properties in the company’s inventory. Sellers of Sarasota Florida real estate chose Sarasota Bay Real Estate due to their reputation of going above and beyond expectations when marketing properties located in the Sarasota-Manatee County areas as well as the company’s vast Internet marketing reach. Sarasota Bay Real Estate Internet assets receive more than 1,000 visitors a day and this exposure contributes greatly to a property selling quickly and for the highest price. When property marketing strategies are paramount in a sellers listing requirements, Sarasota Bay Real Estate is the clear choice in the Sarasota real estate market.
Contact information for Sarasota Bay Real Estate can be found at http://sarasotabayrealestate.com