Sarasota Ranked No. 2 on Florida List of Places to Buy

June 13, 2018 by

places to buyIn a market seemingly awash in million-dollar sales, a national consulting company lists Sarasota-Bradenton the second metro area in Florida in terms of best places to buy a home versus renting.

Smart Asset, a financial technology company, ranks Sarasota 24th nationally on a list of break-even points for renting vs. buying. Cape Coral-Fort Myers came out on top in Florida.

Smart Asset looked at an average rent of about $1,500 for the area and an average mortgage payment on a typical home (4.5% interest, 20% down) of about $1,110 and determined it would take about two years, three months for renting to become more costly than buying.

Gary, Indiana was the nation’s top market, with break-even point at 1 year, four months. Washington, Nevada and California were the only states in whole deemed better for renters than buyers by the study.

Sarasota is in the midst of an upswing in sales and price appreciation, according to Michael Molton, a certified resident specialist broker-associate with Michael Saunders & Company, who writes a monthly report on the local market.

According to his most recent report:

  • The 2018 monthly year to date average for sold properties is 1,040 whereas the 2017 monthly average was 978 for the year and in 2016 the monthly average was 952.
  • The number of properties sold in April including both single family and condominiums in the Sarasota area was 1,200, which was 20 less than March and 26 more than a year ago.
  • In April, Sarasota’s single-family homes were sold at a median price of $285,000 vs. $272,500 a year ago, a 5% increase.
  • Condominium median sale price was $235,000 in April vs. $215,000 in April 2017.
  • Overall properties sold for 95% of the list price, a consistent ratio on a regular basis. The 2017 average for all properties sold was 95.6% of list price at the time of contract vs. the original list price.

Sarasota Observer June 13, 2018

Filed Under: Florida Real Estate Market, Sarasota Real Estate Market News Tagged With: , ,

April Home Sales Rise Despite Inventory Challenges

June 5, 2018 by

April Home SalesIn April 2018, Sarasota and Manatee housing inventory levels dropped again, with pressure from rising median sales prices. Overall, April showed an increase in sales across the two counties, as well as an increase in new listings.

April reported 2,014 total sales which is a 3.3 percent increase from last year. Sarasota condo sales increased by 17.8 percent and Manatee condo sales increased by 2.5 percent. As for single family homes, Manatee sales increased by 5.8 percent, while Sarasota decreased by 5.3 percent.

Inventory
Overall, inventory is down compared to this time last year. For single-family homes, the number of properties listed decreased by 10.3 percent. As for condos, inventory decreased by 8.9 percent in the two-county area.

“Sarasota and Manatee counties are following the national trend of lower inventory and higher prices,” said Greg Owens, 2018 President of the REALTOR® Association of Sarasota and Manatee. “This home shortage is a main factor in limiting sales growth.”

Dr. Lawrence Yun, chief economist of the National Association of Realtors® (NAR), commented on this trend in his recent 2018 midyear forecast presentation at the REALTORS® Legislative Meetings & Trade Expo. Yun indicated that a stronger economy, wage growth and improving job market is expected to raise sales and prices. However, low inventory and the challenging affordability for the next generation of home buyers may temper growth. Overall, he predicts a moderate and multiyear increase in home sales ahead.

Median
Median sales prices continue to rise in Sarasota and Manatee. Manatee single-family home prices increased by 5.4 percent to $311,000 and Sarasota increased by 4.6 percent to $285,000. Condo median prices in Sarasota increased by 9.3 percent to $235,000 and Manatee increased by 23.1 percent to $209,950.

“These trends should encourage homeowners who were thinking of putting their property on the market to do so,” added Owens. “The traditional snowbird season has ended in our area, but property sales have not. Contact your local REALTOR® to find the best move for you and your family.”

A seller’s market remains, indicated by the decreased month’s supply of inventory. Manatee condos represent a 4.5-month supply and Sarasota condos are at a 4.6 month-supply. Manatee single-family homes are at a 3.9-month supply and Sarasota single-family homes are at a 4.1- month supply.

The median time to contract for Sarasota single-family homes is down by 11.1 percent to 40 days, while Manatee increased by 2.2 percent to 47 days from April 2017. For Sarasota condos, the time to contract is down by 6.5 percent to 43 days, while Manatee condos are down by 24 percent is to 38 days on the market. With tighter inventory, properties are spending less time on the market.

Pending Sales
Overall pending sales, or the number of properties that went under contract in April, decreased from last month. This is an indication that sales are tapering off the traditional snowbird season. Compared to 2017, the condo market experienced more pending sales with a 22.1 percent increase in Manatee and a 1.7 percent increase in Sarasota. Single-family homes, however, experienced a drop in pending sales. Sarasota single-family homes decreased by 13.1 percent and Manatee by 16.1 percent.

The REALTOR® Association of Sarasota and Manatee, May 24, 2018

Filed Under: Downtown Sarasota Real Estate, Florida Real Estate Market, Sarasota Buyers, Sarasota Real Estate Market News Tagged With: , ,

Florida Real Estate Market Healthy but Challenged

May 19, 2018 by

Florida Real EstateFlorida Home Prices Up, Inventory Down and Interest Rates are Iffy.

The Florida real estate industry is healthy, though several thorny challenges confront residential sales, one of the nation’s leading economists told a gathering of about 80 agents and brokers Wednesday morning.

Lawrence Yun, chief economist and senior vice president of the National Association of Realtors, covered the proverbial waterfront during his presentation at the 12th annual Global Conference, a production of the Realtor Association of Sarasota and Manatee and the Global Business Council held at RASM’s Sarasota headquarters.

The daylong conference focused on the international real estate market, though Yun incorporated many domestic points in his presentation, “Economic and Real Estate Market Outlook.”

Foreign Buyers and Florida

On the tax reform law, “We’ll have to wait and see whether this impacts home buying in the future or not,” Yun said. But he echoed a sentiment expressed by many: The Florida market will be a “big beneficiary of net migration” from Americans fleeing such high-tax states as New York and New Jersey as the tax law chews into their income-tax deductions. “We’re already seeing that.”

Last year, foreign buyers bought $23.8 billion in Florida real estate, more than double the figure from a decade ago. Seventy-three percent of those 2017 purchases were all-cash, Yun said, because wealthy international buyers don’t need mortgages. The foreign property purchases account for 11 percent of the value but only 6 percent of the sales volume, indicating those purchases were primarily high-end homes.

The top international buyers of U.S. real estate last year came, in order, from China, Canada, Mexico, India and the United Kingdom.

Although most of the Chinese purchases were in California, “the Florida market certainly has a larger share of foreign investors,” Yun said. “We have greater contact with people of other nationalities.”

The state, he said, is also “raising the confidence of foreign buyers” with safe property investments that are bound to appreciate.

National Economic Picture

During the first quarter of 2018, a rising number of households expressed more confidence in the economy and their financial position, but only 68 percent of consumers felt now is a good time to buy a house, the lowest percentage in two years. That’s according to NAR’s first-quarter Housing Opportunities and Market Experience survey.

Income, debt and anxiety are stopping some from buying.

“They need to believe things will turn out well after buying,” Yun said. The “very, very competitive” nature of the current residential market — with inventory down 13 percent, prices up 9 percent and mortgage rates expected to rise again — is being met with caution. “They’re feeling rushed to buy.”

From 2011 to 2017, income grew by 15 percent but housing prices surged by 48 percent, Yun said. “This is a big concern for renters,” he said, and an obstacle to converting to home ownership.

Consumers should not wait for mortgage rates, at 4.5 percent now, to fall, not with the Federal Reserve forecast to raise its benchmark interest rate two more times this year and three in 2019.

“Two years from now, mortgage rates could be 6 percent,” Yun said. “Don’t take the current rates for granted.”

While national existing home sales rose last year to their highest level in 11 years, the pending home sales index has stalled and inventory continues to fall, he said. “Builders have been under-producing,” Yun said, and the annual increases in construction since the subprime disaster have been “very minimal.”

Sarasota Herald-Tribune, May 9, 2018

Filed Under: Downtown Sarasota Real Estate, Florida Real Estate Market, Sarasota Buyers, Sarasota Real Estate Market News Tagged With: ,

Sarasota Real Estate Market Report – March 2018

May 2, 2018 by

Sarasota Real EstateLast month, the Sarasota-Manatee residential real estate market showed an increase in the number of closed sales and pending sales, a continuation in the rise of median prices and a drop in inventory levels.

Home buyers preferred condos and townhouses over single-family homes, a likely sign that snowbird season has been good for one sector of the residential market.

March condo sales rose 9.9 percent in Sarasota to 454 and 9.7 percent in Manatee to 284 year over year. As for single-family homes, Manatee sales fell 0.2 percent to 580, while Sarasota dropped 2.3 percent to 766.

Closed Sales
In the two-county metropolitan statistical area, closed sales for single-family homes and condos reached 5,015 properties so far this year, a 2.3 percent increase from this time last year. Comparing this past month to March 2017, statistics show a 1.4 percent drop in single-family home sales but a jump in condo sales of 9.8 percent.

“With the close of ‘season’ fast upon us, we are once again showing an increase in combined sales in both counties,” said Greg Owens, president of the Realtor Association of Sarasota and Manatee.

“Pending sales showed a combined 14.9 percent increase from February 2018 to March 2018,” he said. “This increase indicates a strong finish going into summer.”

Median Prices
Year over year, single-family median prices in Sarasota rose by 9.3 percent to $287,053 while Manatee dropped by 1.7 percent to $285,000. The median sales price for Manatee condos jumped by 15.1 percent to $201,500 and Sarasota condos increased by 4.3 percent to $240,000.

Combined, pending sales for single-family homes and condos increased by 4.9 percent from March 2017.

Inventory
The decline in new listings is another good indication of the selling season ending, the association said. The number of properties put on the market during March 2018 fell by 7.6 percent from 2017 in the two-county area. Combined inventory in the two-county area dropped by 14 percent from March 2017. Compared with last year, the supply of single-family homes decreased 15.4 percent, while that of condos fell 11.4 percent.

In single-family homes, Charlotte County showed a 2 percent increase in closed sales, to 411, a 10.2 percent jump in the median sales price and a 0.4 percent rise in pending sales. In townhouses and condos, closed sales jumped by 14.8 percent, the median sales price increased 10.8 percent to $176,250 and new pending sales rose 2.2 percent, to 139.

Florida’s Market

Across the state, March’s tight inventory constrained sales and pushed median prices higher, according to the latest housing data released by the Florida Realtors trade association. Closed sales fell by 3.5 percent, while median prices rose by 8.2 percent year over year.

The statewide median sales price for single-family existing homes last month was $250,800, up 8.2 percent from the previous year, while the statewide median price for townhouse-condo properties was $183,000, up 7 percent over the year-ago figure.

“As the ongoing supply of for-sale homes continues to tighten, it can create a cycle of frustration for home buyers, especially those trying to become a first-time homeowner,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “If move-up buyers can’t find a home in their desired price range, then they aren’t likely to leave their current home, which in turn makes entry-level properties even more scarce.

“Buyer demand is high, but the shortfall of inventory — particularly around $250,000 and under — is impacting affordability in many areas.”

March was the 75th consecutive month that the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year.

National Numbers

Across the country, existing-home sales increased for the second consecutive month in March, but lagging inventory levels and affordability constraints kept sales activity below year ago levels, according to the National Association of Realtors. Despite the increase, March sales were still 1.2 percent below a year ago.

“The unwelcome news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford,” Lawrence Yun, NAR chief economist, said in a press release.

The median existing-home price for all housing types in March was $250,400, up 5.8 percent from March 2017 ($236,600). March’s price increase marks the 73rd straight month of year-over-year gains.

Housing affordability is down from a year ago and fewer households can afford the active inventory of homes currently for sale on the market based on their income. That is according to joint research from the National Association of Realtors and realtor.com, an online real estate destination.

Using data on mortgages, state and metro area income and listings on realtor.com, the Realtors Affordability Distribution Curve and Score is designed to examine affordability conditions at different income levels for all active inventory on the market. A score of one or higher generally suggests a market where homes for sale are more affordable to households in proportion to their income distribution.

According to March data, 35 metro areas had better affordability compared to a year earlier, led by Austin-Round Rock, Texas, (from 0.55 to 0.66), Syracuse, New York, (1.04 to 1.1) North Port-Sarasota-Bradenton, (0.60 to 0.66) and Palm Bay-Melbourne, (0.71 to 0.77).

Sarasota Herald-Tribune April 23, 2018

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Real Estate, Sarasota Buyers, Sarasota Real Estate Market News Tagged With: , ,

Sales of $4 Million-Plus Homes Surging in Sarasota-Manatee

April 18, 2018 by

Sales of big homes for big bucks continue to be brisk in the Sarasota-Manatee real estate market. Latest sales trends show buyers’ search for value, waterfront and newer homes in current market.

Over the past six months, 28 homes and condominiums in the two counties sold for more than $4 million. Over the same six months in 2016-2017, only 10 properties were sold at that high price point.

 “These are impressive numbers,” Roger Pettingell of Coldwell Banker Real Estate said. He specializes in luxury waterfront properties in Sarasota and Longboat Key. Luxury homes are “moving really good,” he said. “It’s exciting, actually.”

 Others echo those views, citing the Sarasota-Manatee market’s value and attractiveness.

“It’s a really positive trend,” said Joel Schemmel of Premier Sotheby’s International Realty. “Hopefully, the market will continue to accelerate.”

 “These are starting to make us look like a real luxury market,” Pettingell said. And the market is still not overpriced, he said, unlike Naples and Palm Beach.

Brian Loebker, a Realtor with Michael Saunders & Co., called the high-end buyer interest “extremely strong right now.”

Amenities and Value

 “Our customers cite Sarasota as a location filled with amenities and value — you would pay double, or maybe triple, for the same home in other locations like Miami or Naples,” Loebker said. “The Sarasota luxury real estate market is commanding the highest level of interest and attraction in its history at this moment.”

Schemmel calls Sarasota a “destination market.”

Buyers continue to be discriminating in the properties they view, Loebker said. “There is zero tolerance for over-paying or even viewing properties which seem over-priced. The buyers are active, paying with cash, and willing to strike a deal immediately provided it is fair and just for both buyer and seller,” he said. “Any signs of greed or over-self-confidence, and the buyers will never view the property.”

The sheer number of $4 million-plus homes currently awaiting buyers may appear to be just as mind-boggling as the sales figures.

As of April 13, 103 homes were listed for $4 million or more in Sarasota and 19 in Manatee, including single-family homes, condos and townhomes, figures from My Florida Regional MLS indicate.

“The amount of inventory currently on the market over $4 million is not unusual,” Loebker said. “Actually, the overall inventory has been down from October through February, so to see about 100 luxury homes over $4 million on the market right now is on trend with previous years. The key is getting these homes priced right for the buyer pool.”

At the end of April 2017, big listings totaled 79 in Sarasota and nine in Manatee. Listings for April 2016 stood at 70 and 12 respectively, Trendgraphix shows.

Pending sales through the end of this April will likely drop the number of listings, said Jennifer Horvat, chief marketing officer at Michael Saunders & Co.

On water but not on grade

The Realtors pointed out two other trends in the luxury market. The cost of waterfront land “has risen substantially,” Pettingell said, but buyers are less interested in older homes at grade level on water. Properties listed for $1 million to $2 million that are not on the water are the slowest to move, Schemmel said.

A lot of the luxury buyers live in Sarasota but are upgrading their homes while older residents who want to live closer to relatives and community amenities are selling and moving off the islands, thus increasing the luxury-market inventory.

Schemmel added another element to the high-end sales surge: value as an investment. “For the first time in a long time, real estate in the portfolio is a good thing,” he said, and “a great hedge against inflation.”

That is somewhat apparent in one segment of the luxury market. “Sarasota has proven itself as an exceptional location to have a second, third or fourth home,” Loebker said.

Luxury homebuilder Ryan Perrone, president of Nautilus Homes, which specializes in projects that start at about $4 million, agreed that the local market is strong. “We have seen an uptick in interest in our product. It is hard for me to say whether that is just due to a gain in market share or whether it is a trend.”

A wider pool of buyers

The interest is coming from different parts of the country, too, broadening the pool of house shoppers.

“We have taken notice that while our city has been traditionally made up of Midwest transplants, there is a shift of people coming from California and the Northeast,” Perrone said. “I believe that this is because people from these markets are used to looking at those sorts of price points. In fact, those prices look like a deal when coming from L.A.”

Steve Murray, president of Murray Homes, is also seeing an increase in clients from California. Murray Homes is building six homes in the $4 million-plus price bracket, an increase over last year.

“We believe that this is in part due to the state income tax in those states, as well as the new tax regulations,” Murray said in an email. “In addition, our area is seeing an increase in nationwide appeal due to awards, marketing and high-end hotels bringing new visitors to our region.”

Murray echoed the view that Sarasota-Manatee homes represent value. “These clients are used to higher residential prices and so we are seen as a relative bargain when compared with Naples, Miami and their home towns.”

Sarasota Herald-Tribune, April 17, 2018

Filed Under: Downtown Sarasota Real Estate, Sarasota Buyers, Sarasota New Construction, Sarasota Real Estate Market News Tagged With: , , ,

Florida Report: 2017 Profile of Home Buyers and Sellers

January 22, 2018 by

Florida ProfileWhat does the typical Florida buyer or seller look like? Only 1 in 5 (22 percent) of buyers are first-timers compared to 34 percent in U.S., and they’re typically 45 years old.  On the other hand, the average seller is 60 years old, makes about $96,500 annually and owns a home that they think is too small.

The insights stem from the 2017 Profile of Home Buyers and Sellers Florida Report issued by Florida Realtors®with data compiled by the National Association of Realtors® (NAR) research department.

Report highlights

Florida Home Buyer Characteristics

  • In Florida, 22 percent of all buyers were first-timers. (Nationally, it was 34 percent.)
  • The typical Florida buyer was 54 years old and had a median income of $83,000.
  • 68 percent were married couples, 14 percent were single females, nine percent single males, and eight percent unmarried couples.
  • 15 percent of homebuyers purchased a multi-generational home.
  • 88 percent of recent Florida homebuyers identified as heterosexual, four percent as gay or lesbian and less than one percent as bisexual. The rest preferred not to answer.
  • 25 percent of buyers are veterans and three percent are active-duty service members in Florida. Nationally, only 18 percent of recent homebuyers were veterans.
  • At 26 percent, the primary reason for purchasing a home was the desire to own a home of their own.

Characteristics of Florida Homes Purchased

  • In Florida, 18 percent of first-time buyers purchased a new home and 82 percent bought a previously owned home.
  • Why wait for a new home to be built? In Florida, 34 percent wanted to avoid renovations and problems with plumbing or electricity.
  • Why buy a previously owned home? 34 percent were looking for a better overall value.
  • 79 percent of buyers opted for a detached single-family home.
  • 21 percent bought a senior-related home.
  • The median home price was $215,000 and 97 percent of the asking price.
  • The typical Florida home purchased was 1,800 square feet and built in 1996.
  • Overall, buyers expect to live in their homes for a median of 15 years.

The Home Search Process

  • In Florida, 42 percent of buyers looked online first and 22 percent contacted a real estate agent.
  • 81 percent found real estate agents very useful, and 83 percent said the same for websites.
  • Florida buyers typically searched for 10 weeks and looked at 10 homes. However, those who did not search the internet looked at six homes over three weeks.
  • Among buyers who used the internet, 86 percent found photos useful.
  • In Florida, 64 percent were satisfied with the buying process – a better report card for the state than the 61 percent satisfied nationally.

Home Buying and Florida’s Real Estate Professionals

  • 83 percent of Floridians (86 percent nationally) purchased their home through a real estate agent or broker.
  • Why work with a Realtor? In Florida, 56 percent said it was to find the right home.
  • 36 percent of Florida buyers (42 percent nationally) used an agent referred by a friend, neighbor or relative, and 12 percent used an agent that they had worked with in the past.
  • Seven in 10 buyers interviewed only one real estate agent during their home search.
  • Eighty-nine percent of buyers would use their agent again or recommend their agent to others.

Florida Sellers and the Selling Experience

  • The typical Florida home seller was 60 years old, with a median household income of $96,500.
  • In Florida, the top reasons for moving were retirement (15 percent), the desire to move closer to friends and family (12 percent) and a job relocation (11 percent).
  • Florida sellers typically lived in their home for 11 years before selling.
  • 90 percent of home sellers worked with a Florida real estate agent to sell their home.
  • For recently sold homes, the final sales price was a median 98 percent of the final listing price.
  • 33 percent of all sellers offered incentives to attract buyers.
  • 66 percent of Florida sellers were very satisfied with the selling process.

Sellers and Florida’s Real Estate Professionals

  • 63 percent of Florida home sellers found their agent through a referral from a friend, neighbor, or relative, or they used an agent they had worked with before.
  • 74 percent of recent Florida sellers contacted only one agent before finding the one they worked with to sell their home.
  • 93 percent of sellers listed their homes on the Multiple Listing Service (MLS).
  • 81 percent of sellers reported that they provided the agent’s compensation.
  • 34 percent of Florida’s sellers have recommended their agent to others at least three or more times since selling their home.
  • In Florida, 67 percent said they would definitely recommend their agent for future services, and 16 percent said probably.

Florida Association of Realtors January 2018

Filed Under: Florida Real Estate Market Tagged With: , , ,

Looking for a Strong 2018 Real Estate Market

January 19, 2018 by

2018 MarketSouthwest Florida’s residential real estate world is riding a winning streak, and current market conditions indicate continuing prosperity and growth. That’s the consensus evaluation of the robust home market in 2017 and the strong forecast for 2018 among industry insiders in Sarasota and Manatee counties.

Our informal survey panel represents the home-building and selling sides of the business. Their letter grades for this year’s residential market mostly fit into a tight and bright range — from B++ to A+.

“Residential real estate in Manatee, Sarasota and Charlotte counties, in all price points, all home types, continued its consistent momentum through 2017,” reports Michael Saunders, founder and CEO of Michael Saunders & Company, and Drayton Saunders, president. “Buyer demand has been consistently high and rising, inventory was strong and is expected to rise, and prices are seeing an appropriately steady increase.

“In general, it is a neutral market — neither favoring buyers or sellers in any significant capacity, therefore garnering an A-grade.”

Roger Pettingell, a perennial leader in luxury sales and listings and an associate with Coldwell Banker Residential Real Estate, agrees on a neutral market. “The stock market gains of 2017 are translating into strong cash buyers coming into the market. That said, sellers are also feeling quite confident, making for neither a seller nor buyer’s market (which makes a Realtor’s job more difficult!).”

Pettingell, based on Longboat Key, broke the $100 million sales mark for 2017 with a total of $104.6 million, leading the region.

“Using my business as a microcosm of the overall Sarasota market, I’d give this season an A+,” he said. “Not only was it a record breaking year for me, it was a record by 25 percent over last year. If that doesn’t deserve an A, I don’t know what does.”

Lynn Robbins, a Realtor with some four decades selling Sarasota homes and an associate with Coldwell Banker Residential Real Estate, views 2017 as “a strong sellers market.”

“My rating would be a B++ to A- … In my opinion, Sarasota has really been discovered, and the buyers are coming in larger numbers and we are seeing more of them in slower months,” she said.

Xena Vallone, broker/owner of Xena Vallone Realty Inc. and the outgoing president of the Realtors Association of Sarasota Manatee, broke the market in two. “I would rate 2017 residential as an A for sellers because of low inventory, which benefited them by higher prices, but most likely a C for buyers for the same reasons — low inventory and higher prices. I didn’t give it a D because I believe buyers are still getting some great interest rates.”

Lakewood Ranch-based homebuilder and developer Pat Neal of Neal Communities also enjoyed a stellar year. “Certainly 2017 would be an A or an A+. For our target customer (about 55 percent of whom do not have Florida as their address at the time of their first purchase), this has been a great year,” he said.

With 47 years in home construction and sales, Neal Communities has created some 70 successful communities throughout southwest Florida. To date, Neal has built more than 13,000 homes in the region. In 2017, the company built, sold and closed on about 1,168 new homes — topping the previous record year. Sales of new homes totaled $400 million, Neal noted.

Most of those homes — 80 percent — sold in the $250,000 to $500,000 range, the “Marvelous Middle,” as Neal describes the price spread, a range that Realtors find most appealing among buyers.

Across the Sarasota-Manatee-Charlotte market, moderately priced home sales — between $200,000 and $400,000 — “continue to be very strong,” Saunders said, with a 9 percent increase in pending and sold listings year-over-year and an 11 percent increase in the number of new listings over last year.

“Homes in this price range make up the largest segment of our market at 44 percent of total sales,” Saunders said. “With high demand and an average supply, this will force buyers to move quickly and possibly deal with multiple offer situations.”

In the midprice market — from $400,000 to $900,000, which comprises 15 percent of the market — new listings fell in 2017, sales dropped at the lower end and were flat at the higher prices. Sarasota proved to be the exception, Saunders said, with a 30 percent increase in pending sales in November.

Across the three counties, the residential luxury market — $1 million and higher, with sales representing 3 percent of the total market — went from fairly calm waters to a tsunami over the course of 2017. Closed sales were up only 4 percent in the first six months year-over-year, but surged a “staggering 61 percent from July to November,” Saunders said. Pending sales rose 18 percent in the first half of 2017, but soared a “staggering 59 percent” from July to November.

Despite the market hiccup brought about by Hurricane Irma in September, home sales rebounded quickly. Robbins certainly enjoyed autumn. “I was pleasantly surprised in October and November, which have been slower in the past, to find out that they were very busy months for me,” she said.

Multiple Listing Service data for the Sarasota-Manatee-Charlotte market confirm that point. In November, closed sales reached 546, an 8.8 percent increase from the same month a year ago. Plus, there were 677 new pending contracts, up year-over-year by 16.5 percent.

The Realtor Association of Sarasota and Manatee describes the current housing sector as a “healthy market” with combined numbers showing an increase in sales, new listings and prices.

The housing market across Florida also continued its positive streak in November, with more closed sales, more new listings, more pending sales and rising median prices, Florida Realtors data shows.

“In November, Florida’s housing market reflected the trends we’ve grown accustomed to seeing throughout this year,” said Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart.

The year ahead

The final months of 2017 created enthusiasm for 2018.

“I think the momentum which we are seeing, particularly in the last quarter of 2017, will move us forward with a strong 2018,” Pettingell said. “We do know that the real estate market has been in a recovery mode since 2011, and that no market goes up forever, but it looks like there is still plenty of room for further growth in 2018.”

Out-of-state buyers are key players in a strong market.

“Demand is rising, and we feel that it is going to be a busy season with more buyers here than ever before,” Robbins said. “We are seeing more buyers from California and New York than in past years.”

Neal concurs in regards to the market for new homes. He cites the Sunshine State’s broad appeal to out-of-state buyers as one reason the market is flourishing.

“People from Illinois, Michigan, Pennsylvania, New York and Connecticut are finding their way to Florida because of our good quality of life, beautiful environment, good economy and low taxes,” he said. “There has been much more awareness as to the economic advantages of living in Florida. That is, our good and growing economy and also the absence of a state income tax … or estate tax.”

Saunders, too, sees prospective buyers focusing on new construction. “Builders are still answering the pent-up buyer demand for ‘new.’ … Home buyers are electing to purchase a new home over an existing home because of upgrade options, new layout trends and hurricane-resistant materials and construction codes.”

Jon Mast, the chief executive officer of the Manatee-Sarasota Building Industry Association, spotted another current trend — “for new product in Lakewood Ranch becoming more desirable than resales of the same product, thereby lowering prices for same existing product in the Ranch. This will eventually level out over time.”

Saunders links the popularity of new neighborhoods to lifestyle options. “New construction will continue to push forward, especially in areas like West Villages in Venice and Waterside in Lakewood Ranch. The allure of new construction and communities with a plethora of amenities will be in high demand.”

The political climate could be a boon for Florida. With passage of the Tax Cuts and Jobs Act of 2017, the limit on deductible mortgage debt was dropped to $750,000 for loans taken out after Dec. 14. But the implication for Florida real estate lies elsewhere: The measure eliminates deductions of more than $10,000 in state and local taxes from federal tax returns. That could result in a major increase in the tax liabilities for people who itemize deductions and who reside in high-tax states — most probably upper-middle or upper class taxpayers. This, Saunders could bring “a surge of sales in Florida.”

Neal is more emphatic, anticipating a “positive impact” of the federal tax measure on Florida. A key reason is because Neal Communities’ “customers are typically not dependent on mortgage financing, they will not be affected by the mortgage limitations nor some of the limitations on deductibility,” he said.

“We seem to have a strength in the economy. The federal tax reform act will provide further stimulus.”

Neal cautioned against thinking another housing bubble is in the works. “We do not have the building we had in 2003-2006 … but only about one half of the housing production that we had in 2004 (in 2017).”

Another barrier to an overheated real estate market comes as a reaction to that financial crisis — stronger consumer protections. “As credit is so regulated,” Neal said, “I do not see a repeat of the 2003-2006 credit bubble.”

Hot spots

There is broad agreement that downtown Sarasota “is very hot,” as Robbins said, and “with all the charm of our downtown, great restaurants, things to do and close to the arts and Van Wezel, people want to live there and be able to walk to many of these attractions.”

Saunders echoes that sentiment: “Downtown’s residential construction explosion will be a great positive to the downtown commercial and retail sub-market. The growing live-work-play environment in downtown will remain a draw for people from all over the region.”

Besides Lakewood Ranch, the West Villages and the University Parkway corridor, other desirable neighborhoods “will be west of the Trail as buyers want to be close to the water,” Robbins said.

All the barrier islands will continue to be popular, especially Siesta Key with one of the best known beaches in the world. “There are numerous wonderful choices of condos in all price ranges there and one can walk to the beach,” Robbins said.

Herald Tribune December 2017

Filed Under: Downtown Sarasota Construction, Downtown Sarasota Real Estate, Florida Real Estate Market, Sarasota Real Estate Market News Tagged With: , , , ,

Sarasota-Manatee New Home Starts at Post-Recession Highs

November 17, 2017 by

New Home Starts SarasotaThe third quarter of 2017 proved to be a gem for housing starts in the Sarasota-Manatee market.

“Despite Hurricane Irma, quarterly starts were the best we have seen post-recession,” Metrostudy reported Tuesday.

The company, which provides market information to the housing and related industries nationwide, said the two-county market is building at about 120 percent of the 20-year moving average. And the growth is next expected to stop next year.

“Irma may push some closings into 2018, but she did not materially impact our forecast for increasing housing starts in 2018 for Sarasota,” said Tony Polito, regional director of Metrostudy’s Sarasota-Bradenton market.

The research, data and analytics company’s third-quarter survey of the Sarasota-Bradenton housing market found that 1,514 single-family units were started in the quarter, an increase of 3.4 percent compared with last year’s third quarter. The new figures also are 4.1 percent more starts than in this year’s second quarter.

Single-family closings in the quarter were 1,327 units, which was 2.2 percent higher than third quarter of 2016. Irma likely affected closings, which fell by 211 from the second quarter, according to the study.

The survey also found the problem of workforce housing is getting worse. “Affordability is getting squeezed in the lower price points as new home starts under $250,000 are down 20 percent year over year.”

For the 12 months ending Sept. 30, starts of new under $250,000 totaled 1,211, down 20 percent from the third quarter of 2016. Annual new-home starts over $250,000 increased 6.9 percent, the survey found.

“Hurricane Irma impacted jobs and the local economy in September,” Polito said, “but this is expected to be a short-term impact, although with a 3.3 percent local unemployment rate, new job creation is highly dependent upon new population growth.

This quarter, 1,763 lots were delivered to the Sarasota-Bradenton market compared with 1,251 in last year’s third quarter. Vacant developed lot inventory stands at 36,977 lots, an increase of 0.2 percent compared to 36,904 last year.

“Based upon the annual start rate, this level of lot inventory represents an 80.1-month supply, an increase of 0.5 months compared to last year,” Polito said.

During the recent third quarter, Manatee County recorded 747 housing starts, up 19.5 percent over the second quarter and up 19.5 percent compared with 2016′s third quarter. Sarasota County logged 600 housing starts this past quarter, up 24.5 percent versus this year’s second quarter and up 7.1 percent compared to last year’s third quarter.

Herald Tribune November 7, 2017

Filed Under: Downtown Sarasota Real Estate, Sarasota New Construction, Sarasota Real Estate Market News Tagged With: , ,

Hurricane Irma Slaps Sarasota-Manatee Housing Market

October 22, 2017 by

Sarasota Real Estate Market NewsEarly comments from Sarasota and Manatee real estate agents indicated that Hurricane Irma had little impact on home sales, but the September market report showed the two counties suffered decreases in closed sales, pending sales and new listings despite the region mostly escaping major damage from the storm.

Combined closed sales dropped by 16.8 percent in September compared with the same month last year.

The Realtor Association of Sarasota and Manatee cited office closures, re-inspections and tight scheduling for new appraisals as the reasons for the real estate market stall. September’s decline in sales isn’t an effect of the current housing supply and demand but is directly connected to the business and school closures around the hurricane, the association indicated.

“With Labor Day and office closures, there were 20 percent fewer business days in September to complete a sale,” association president Xena Vallone said. “When a storm like Irma comes around, our focus shifts from day-to-day business to the safety of our homes and loved ones.”

September also witnessed a decline in the number of properties put on the market, with new listings for single family homes falling by 31.8 percent. New listings of condos dropped by 20.9 percent in the two-county area.

“We typically start to see more listings in September as buyers prepare for season,” Vallone said. “But when the storm started its path toward Florida, sellers weren’t preparing to list their house, they were preparing to keep it safe.”

Inventory

Housing inventory dropped marginally from August, but overall inventory does show a slight improvement from this time last year. Single-family home inventory in the combined two counties rose by 1.9 percent, while condos increased by 2.9 percent. Inventory supply typically starts to grow in the fall, which brings good news for post-Irma market recovery, the association said.

Pending Sales

New pending sales plunged, with the blame going to Irma causing fewer shopping days. Properties under contact slumped by 29.8 percent in Sarasota County and 26.2 percent in Manatee. Because of those declines, the hurricane will effect closed sales in October, the association noted.

Median Prices

The sunshine amid these dark clouds is the rise in median sales prices, indicating that Florida’s housing market has only stalled, not crashed, the association said. The median price of single family homes in Sarasota increased by 8.4 percent, reaching $269,000, while Manatee topped those figures by rising 9.3 percent, to $295,000. The reverse occurred in condo prices, increasing by 11.2 percent, to $220,000, in Sarasota and 2 percent, to $181,500, in Manatee.

Herald Tribune, October 20, 2017

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Real Estate, Sarasota Real Estate Market News Tagged With: , ,

Upward Trend Continues for August in Sarasota Real Estate

September 29, 2017 by

real estate marketCompared to August 2016, the latest market report shows an increase in closed sales, median prices, and inventory for single family homes, while condos in the two-county area reported an increase in closed sales and pending sales. The August 2017 data was compiled from My Florida Regional Multiple Listing Service by Florida Realtors®.

Closed sales for single family homes increased by 6.9 percent from August 2016 in the two county area. As for condos, closed sales also improved slightly from last year, with an increase of 0.8 percent. Combined, closed sales climbed from last month with a 6.4 percent increase to 1,819 sales in August. When looking at closed sales thus far in 2017, sales are higher than they were for the first eight months in 2016, a 2.1 percent increase to 14,254 closed sales.

 “We’ve seen some fluctuation in closed sales for 2017,” says Xena Vallone, 2017 President of the Realtor® Association of Sarasota and Manatee. “The first eight months of this year show more sales than the first eight months in 2016, thanks to a strong month of sales in March, May and now August.”

New pending sales are up across the two-county area. There were 1,293 pending single family sales reported in the month of August, a 1.3 percent increase from last month and 516 pending condo sales, a 4.2 percent increase from July. Combined new pending sales also increased from this time last year, with a 2 percent increase in the two-county area. New pending sales can be a good indicator of future closed sales.

“Several conditions can affect exactly when the increased pending sales will turn into closed sales,” explains Vallone. “There is no way to determine Hurricane Irma’s effect on the market at this date, but we are seeing some delays delay due to financed transactions that require re-inspections or a lift of the disaster designation to close.”

During the month of August, there were 6,791 single family and condo properties for sale in the two-county area, a 4.3 percent increase from this time in 2016. Inventory is down from last month in the two-county area. Single family home inventory decreased by 5.2 percent from July 2017, while condos decreased by 6.1 percent.

The month’s supply of inventory is the number of months it would take to deplete the current inventory at the recent sales rate. This figure has been decreasing since March of 2017, staying under the threshold for a balanced market. In Sarasota County, there was a 3.8 month supply of single family homes for sale, while Manatee dropped to a 4.1 month supply. Sarasota condos dropped to a 4.3 month supply, while Manatee is now at a 3.9 month supply.

Year-over-year, median prices continue to rise as distressed properties continue to decline. The median price of single family homes in Sarasota County rose 1.5 percent to $258,000, while it rose 6.2 percent to $286,855 in Manatee County, compared to August 2016. Condo median prices rose 10.9 percent to $183,000 in Manatee County, while they fell by 2 percent to $213,500 in Sarasota.

Realtor® Association Sarasota and Manatee – August 20, 2017

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Real Estate, Sarasota Real Estate Market News Tagged With: , ,
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