Sarasota homes for sale create frenzy in last 6 months, though CoreLogic reports Sarasota-Bradenton real estate prices drop from previous year.
Lots of buyers ? yes, lots of buyers. No doubt, my phone has been ringing off the hook for last 6 months.
Lots of inventory ? though dwindling by the day.
And LOW property values.
What?low property values?
How can this be? Lots of buyers and dwindling inventory should point to strengthening property values?right?
In a normal market, that is.
Reality is, this is NOT a normal real estate market.
In one corner, we have myriad Sarasota-Bradenton real estate agents chanting, ?Rising sales prices and low inventory are great indicators of a market on the upswing and in recovery.
To which, they add, ?This is a terrific time to invest in Sarasota real estate?and?to take advantage of prices that have been?dramatically reduced from their recent highs?.as interest rates remain at historic lows.?
Sarasota Association of Realtors recently released its MLS Statistics for January 2012 ? a glowing report suggesting good times:
- The total inventory of both homes and condos was 4,711 compared with 6,072 on January 2011.
- Unit sales of both homes and condos were 513 compared with 537 for January of 2011.
- For homes,? the median sales price was $162,000 compared to $138,700 a year ago.
- For condos, the median sales price was $180,000 compared with $142,500 a year ago.
In the other corner, we have real estate analytics firm CoreLogic saying ??home prices in the Bradenton-Sarasota-North Port area declined by 1.6 percent in January compared to January 2011 and declined by 6.4 percent in December 2011 compared to December 2010.?
Florida sales increased by 1.8 percent year-over-year, one of only 18 states to see a price boost.
Excluding distressed sales, national year-over-year prices declined 0.9 percent in January 2012 compared to January 2011, but that same metric posted a month-over-month gain, rising 0.7 percent in January. Distressed sales include short sales and real estate owned (REO) transactions.
In Florida, prices rose even when distressed sales were excluded ? 0.9 percent year-to-year.
Real Estate Vocab Term ? ANTITHESIS > defined as 1. Direct contrast; opposition. 2. The direct or exact opposite: Hope is the antithesis of despair.
Antithesis defines the Sarasota-Bradenton real estate market.
No doubt, my phone has rung more in last 5 months than it has in last 5 years ? that?s a FACT.
However, CoreLogic also presents FACTS, apparently presenting a very different market than reported by Sarasota Association of Realtors.
Reality is, home values CANNOT increase without 1/ selling out the heavy inventory of distressed shadow inventory and 2/ consumer confidence restores to the point people feel comfortable about their jobs.
Who?s buying Sarasota homes for sale?
Let?s be clear, most buyers my colleagues and I are seeing are OUT-OF-AREA buyers or investors. Out-of-area buyers are buying 2nd homes. Investors, smelling blood in the water, are buying rentals ? they know more and more people losing their homes still need a place to live. In the meantime, rents are exploding.
I hear this every day from people I?m helping avoid foreclosure. They grimace at losing their home ? unable to make the payment. They grimace even more at rising rents.
Don?t underestimate shadow inventory, including properties abandoned but not yet repossessed or properties in some stage of foreclosure. On abandoned,?repossessed properties, banks are throwing more money into distressed properties to (try to resolve some of the) horrible deferred maintenance.
Sarasota foreclosures impose potential dangers to risk-averse buyers.
However, banks (to my knowledge) are not providing mold remediation certification to prospective buyers. You see, for 2 reasons I would NOT buy a foreclosed property:
1. In Florida, many foreclosed properties sat abandoned WITHOUT AIR CONDITIONING for up to 3 years. I want the AC system to be 100% FREE of mold and other dangerous respiratory irritants.
2. Will Courts overturn foreclosure? Buying a foreclosure should concern a buyer, regardless of what a title insurer says. Recently, an attorney-friend told me of a person who recently purchased a foreclosure. She sank $45,000 into this property and made it her home. Shortly thereafter, Sheriff showed up at her front door, according to attorney, with ejection notice ? courts ordered property owner out of the property within 24 hours!
As far as I?m concerned, if this risk exists, I?m not interested in a foreclosure. Attorney (at the time) did not know if plaintiff could sue for damages, loss of $45,000+ & any other money invested into the property.
What are your thoughts of two very different thoughts about Sarasota & Bradenton real estate markets? Please scroll down & tell me what?s on your mind.
My Sarasota Real Estate blog is not just real estate ? it?s the most comprehensive online source for Sarasota attractions including information about Sarasota, beaches, attractions, events & local issues. Whether you are looking for the latest sales, price trends, Sarasota foreclosures or homes for sale in Sarasota, I try to make it all available here. Browse Sarasota homes for sale; call me @ (941) 914-9980 if you or someone you know has a question or wants to buy or sell a house in the Sarasota area.
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