Sharp Increase in Pending Sales
Sarasota Association of Realtors, Feb. 25, 2008
Pending sales in January 2008 were at the highest level since June 2007, though January 2008 saw a dip in overall property sales in the local market, according to statistics pulled from the Sarasota MLS system. One of the primary reasons for the lull was likely the pending vote on a property tax reform package on Jan. 29, 2008, which may have contributed to some buyers remaining on the fence.
However, with voter passage of the reforms, many experts predict a rebound in property sales in Sarasota and across the state in the coming months.
Property sales had strengthened considerably in December 2007, besting November 2007 sales by more than 22 percent as the buyer's market began to gain strength with the arrival of the seasonal population. But January sales, which often show weakness due to the holiday slowdown in home shopping and closings, were considerably lower than December, and lower than the previous January totals.
There were 329 overall property sales in January 2008 - 221 single family homes, and 108 condominiums. That represented a 19 percent decline from January 2007 total sales of 407. The drop was more than 20 percent below the total of 426 closed transactions recorded in the Sarasota MLS in December 2007.
Statewide, single family home sales were down 28 comparing January 2008 to January 2007, while condominium sales were down 30 percent. The statistics continue to indicate that in a down market, the Sarasota area is faring better than the overall state.
"There was obviously some hesitation from buyers during the month of January, with the pending property tax reform vote coming up," said Helen Sosso, 2008 SAR President. "Now that the issue is settled, and was favorable to the home buyer, we should see prospective buyers taking advantage of the historically low interest rates, the incredible property selection, and all of the attributes that always make our area a great place to buy a home and live."
One of the bright spots in the January 2008 report was the strength in pending sales, which stood at 516 - the highest level in the past six months. June 2007 pending sales were 534. The figure stood at 397 in September 2007, 446 in October 2007, 489 in November 2007, and only 374 in December 2007. Crossing the 500 threshold bodes well for future transactions.
Inventory levels also dropped slightly in January 2008, compared to January 2007. The January numbers stood at 9,976 single family homes (compared to 10,219 in January 2007), and 5,610 condominiums (compared to 5,744 in January 2007).
The days on market, which translates to the average time it took to sell a property, was at 158 days for single family homes, a slight rise from the 144 days in January 2007, and 182 days for condos, a big drop from the 250 days reported in January 2007.
Prices continue to correct and fluctuate, with the median single family home sale price settling at $265,000, an 11.6 percent drop from the January 2007 median of $300,000, but unchanged from December 2007.
The median condominium sales price stood at $303,500, which represents a 27 percent decline from the January 2007 figure of $416,500, but actually a 12.5 percent increase from December 2007's median sale price of $281,250. The January 2007 number was an anomaly from the price pattern in 2007, which saw condos selling between $260,000 and $300,000 for most of the year.
Statewide, prices declined by 14 percent for single family homes, and 11 percent for condos, comparing January 2008 to January 2007.
The current market correction from the boom days of 2003-2005 is showing up in every segment of the market. This means there are incredible buying opportunities in the Sarasota area, which will likely continue into 2008. Eventually, however, prices in the market will flatten, and then start to rise. It is extremely difficult to time a market's fluctuations, which are dependent on many factors. But it remains a fact that well-priced homes in resort-style destinations are always in demand.
There are numerous other factors that continue to make Sarasota a great choice for potential home buyers - the affordable cost of living, tremendous natural beauty, great education system, fabulous restaurants, recreational and cultural opportunities, safe and clean environment, and world-class health care.
These facts, plus the historically favorable mortgage interest rate levels, high-quality inventory of available homes, the moderation of prices, and willingness of sellers to negotiate continue to support SAR's assertion that now is a great time to buy in Sarasota.
Sarasota Association of REALTORS®
