Jane Rees

Sales in the Sarasota real estate market reach highest level in six years!

April 14, 2011. Total property sales in the Sarasota real estate market hit 800 for the month of March 2011 - the highest level since September 2005 when sales started to decline. The other great news in March -  prices rose in double digits for both single family homes and condos from the previous month, pending sales were the highest since the real estate boom ended in 2005, and the inventory dropped to 5,501 - less than a third of the available properties on the market during the boom.

"Sarasota is clearly a recovering market," said SAR President Michael Bruno. "Agents are very busy showing properties and writing contracts, and people are excited about our strong market rebound. Obviously, we haven't seen numbers like these in several years. There is a buzz in the local market that's reaching out to buyers across the nation and even internationally."

What makes the statistics even more positive is the fact that there is no federal homebuyer tax credit initiative fueling this surge. The tax credit drove up spring sales last year, but this year's numbers are strong simply on the basis of the incredible quality and value evident in the local real estate market.

In addition to the positive sales figures, pending sales also registered above the 1,200 level in March, hitting 1,208, the highest level in six years. This year, every month has seen more than 1,000 pending sales, or properties going under contract during the month. The statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity, which has been off the charts.

Last March, pending sales reached 1,060, but that figure was pushed upward by the approaching April 2010 deadline for the homebuyer tax credits. This year's upward trend is being fueled by buyers of all sorts - second-home buyers, and those who realize that today's lower home prices coupled with low interest rates present buyers with an opportunity not seen in many years.

The drop to the lowest inventory level in six years (5,501) could mean additional upward pressure on sales prices moving forward.

The remaining months of inventory for single family homes fell to 6 months from 8 months in February. This is traditionally a level which represents the cusp of a seller's market, when buyers begin to compete for available properties and drive up prices. For condos, the remaining months of inventory dropped to 9.2 months from 10.4 months in February, also a healthy figure.

Only a short 26 months ago, in January 2009, there were 25.3 months of inventory for single family homes and 38.4 months of condo inventory. The market is considered to be in equilibrium between a buyers and sellers market once the figure reaches the 6 month level.