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The Sarasota Association of Realtors (SAR) has just reported total home and condo sales for October, 2011 of 577, essentially unchanged from the September volume of 570. The total for October was comprised of 412 single-family homes and 165 condos. Last year at this point, there were only 487 home and condo sales providing more evidence that the slump in Sarasota and Manatee County home sales is coming to an end.
The median single-family home price also rose from $147,500 in October, 2010 to $149.838 this October. Meanwhile, still working off the supply of condos on the market, the median condominium sale price, as expected, dropped slightly to $143,000 this month.
There were two very positive signs of the overall improvement of the health of the Sarasota real estate market. The first was the drop in the inventory of unsold homes and condos. This month, there were 1,601 homes and 2,924 condos on the market versus 2,170 homes and 3,899 condos on the market in October of 2010.
Second, the “months of inventory” statistic, which measures how many months it would take at the current sales rate for all homes currently on the market to be sold, showed dramatic increases. For unsold single-family homes the “months-of-inventory” dropped from 11.1 months in October, 2010 to just 7.1 months this month. Equally impressive, the “months of inventory metric for condominiums dropped from 15.9 months last year at this time to only 9.7 months in October of this year.
Historically, SAR statistics show that a reduction in the inventory of unsold homes for sale eventually leads to increased prices as buyers begin to "compete" for the most attractive properties in the most attractive locations. And, certainly Sarasota is one of the most attractive places to live.
The level of foreclosures and short sales remains about the same, but its impact on the health of the Sarasota real estate market seems to have leveled off. Distressed properties represent both a negative and a positive in the market - a negative because they reflect the economic difficulty many families are experiencing, yet a positive because they provide opportunities for those with more assets to purchase properties at considerably lower cost. It should be noted, however, that distressed properties generally are not in the best condition and a distressed property sale is a complex process taking much longer to close
In summary, the Sarasota real estate market has continued its strong recovery in spite of the economic uncertainties caused by the situations in Washington, DC and the Euro-zone.
Those who have been considering when to visit the Sarasota Bradenton area to find that retirement dream home need to start thinking seriously about it. Whether they are professionals who seek a home or condo for immediate use or to generate some income until they are ready to retire, they would be well-advised to visit Sarasota very soon. Snowbirds who are coming to the Sarasota - Bradenton area
in the next few months surely need to get serious about investing this season before prices start their inevitable climb back upward.
Let me help you make your “Little Piece of Paradise” here on the “Florida Sun Coast” a dream come true.
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