NEWSarasota

The Real Estate Market in Sarasota . . .

Continues to strengthen: inventory is at a record low: 2817 single family homes and 1,591 condominiums, the lowest inventory in 10 years. Contrast that number with the 17,102 properties for sale in 2007!

How do these numbers effect buyers and sellers?

1. The low inventory shows that demand is up
2. Buyers are competing with each other to buy
3. Higher demand+ lower inventory = competition among buyers (multiple bids)
4. Multiple bids on a property by competing buyers = rising prices . . . ultimately a return to a sellers market

Planning to buy a home here? Don't wait, the market in Sarasota is moving away from the record low prices. It's time to buy NOW

Ringling International Arts Festival

Asphalt Orchestra will perform during the opening night gala of the Ringling International Arts Festival at 7 p.m. Oct. 11 in the courtyard of the John and Mable Ringling Museum of Art, 5401 Bay Shore Road, Sarasota. $150. The fest runs through Oct. 16.
Want to know more? Click RIAF 

How Low Can They Go?

For those who can qualify, it's an extraordinary opportunity to buy!

The average rate on the 30-year fixed mortgage this week fell below 4 percent for the first time ever, to 3.94 percent. On Thursday, Freddie Mac said the average rate on a 30-year fixed mortgage dropped from 4.01 percent last week, the previous low. The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26 percent, also a record.

Hot and Hotter  

The real estate market here is heating up: 

• The inventory of homes for sale continues to drop- available homes is at the decade-low of 4,408 in August vs 17,102 in March, 2007
• Sales are steady: exceeding 500/month
• The latest monthly figures in August showed  a 23 percent improvement in selling prices from the lows of only seven months ago
• Competition for properties has been dramatically increased, and agents are now fielding multiple bids on many properties. As demand continues to grow, it's possible to see a return to a Seller's market 

In other words, the market forces of supply and demand are returning to a more normal position.   

The local market is mirroring the national picture to some extent. NAR Chief Economist Lawrence Yun recently noted, "The (national) housing market is still not yet back to normal, but the inventory component is moving in the right direction. There were 3.6 million existing homes on the market for sale, down measurably from the peak inventory of 4.6 million in the summer months of 2008."

There were 601 sales in Sarasota in August, 2011, 6% higher than August, 2010: 445 single family homes and 156 condos.

The months of inventory (the time it would take to sell the existing inventory at the current month's rate of sales) dropped slightly to 6.3 months for single family homes, from last month's figure of 6.4 months. For condos, the months of inventory also dropped to 10.2 months from July's figure of 10.7 months. In August 2010, the figures were 9.3 months and 13.5 months, respectively. Both figures again remained far below the highs of 25.3 months for single family (in early 2009) and 41.7 months for condos (in late 2008).  The 6 month level is traditionally a point which represents equilibrium in the market between buyers and sellers.

In some price ranges, the available inventory is even tighter. For example, combining single family homes and condos priced under $200,000, there were 350 sales last month, and there are 1,653 properties available under that price, or 4.7 months of inventory. This number represents a clear seller's market, in which bidding competition and price appreciation would be expected.

For properties priced under $350,000, most price ranges are indicating a seller's market has returned. This is in marked contrast to three years ago, when a buyer's market was in full force.

In August 2011, pending sales were roughly the same as in July 2011 - 618 for single family homes, and 195 for condos, for a total of 813. This was also almost identical to last August when 816 pending sales were reported.

The overall percentage of distressed sales (foreclosures and short sales) rose slightly in August 2011 to 41.2 percent from the 38 percent figure in July 2011. That compares to 47 percent as recently as February 2011 and a high of 51 percent in November 2010.

The non-distressed properties are still selling for two or three times more than the short sales and foreclosures.

The International Chalk Festival of Sarasota!

There was a last minute snafu that almost cancelled the festival: City commissioners threatened to withhold a grant they had already approved for the festival.  But they were inundated with letters, and ultimately allowed the grant. Great news for art lovers everywhere. Here is one letter that was sent to the commissioners and I reprinted from the Chalk Festival web site- it says it all:

Dear Commission members,
I’m a street painter, I am writing from Italy, I have been streetpainting for more fifteen years, and participate in festivals all over the Europe, mediterranean area and in various part of the world, I keep the works in the most sacred places in the world, including the Basilica of the Nativity in Bethlehem and that of the Virgin of Guadalupe in Mexico City. Last year, attracted by the quality of the artists (for me the best in the world) and the program of your Chalks Festival in Sarasota, I was decided to invest in this trip to know by person the artists and that festival. I believe that, in a short time this festival has had an success unprecedented, so that is now considered the most important event in the world for this kind of art form, this year the quality of programs and artists from around the world is further increased and will be even more a pleasure to take part.It is a bit like the olympics games of art, but unlike the real olympics games, these are experienced with the true spirit of partecipation and coexistence among different nations and peoples, the competitive spirit is only a secondary aspect, it teaches a lot! I known that for some reason, certainly important, you have decided to cut funds dedicated to a part of this event, I hope you can get the
promised funding. I think it’s really important for your city and the future of this festival, make it possible for children and students to know in practice this art form, can make them a great life experience of living and culture. Through this art I had the opportunity to meet people from all over the world and at the same time to open and expand my artistic culture and the culture of people different from mine. Thanks to your contribution you can contribute even more to promote an ancient art form that until recently he was now dying out, and  thanks to the event like this with a global media impact, it is revaluing and it is regaining value. With my experience, I learned that this art is a theater of color, especially for children that can gives the magic moments that remain indelible in the lives experiences, so I think its important to involve them in this activity. In addition students through workshops like this, they learn to have courage to propose
themselves to the public and at the same time promote their passion. Thank you very much for your attention and for reading my thoughts about your festival, I hope you can help in the best way to realize this important project. Yours sincerely. Anthony Cammarano. I apologize for my limited use of your language.