Sarasota Realtors Report Rebound in Sales and Prices

by Harold Bubil

Both the number of sales, and, more importantly for homeowners, the average selling price of homes sold in March rebounded from February’s level, according to a just-released report from the Sarasota Association of Realtors.

SAR members sold 800 properties in March – which was the most since September 2005, when the real estate boom started to fade.

March’s selling prices rose by double digits for both houses and condos from the previous month, and pending sales were at the highest level since the real estate boom ended in 2005.

Inventory dropped to 5,501 – less than a third of the available properties on the market during the bad years following 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.”

Highlights of the report:

– House sales, at 580, were up 23 percent from the previous month, and 5 percent from March 2010, when the home-buyer tax credit encouraged 555 purchases.

– Condo sales, at 220, were up 10 percent from February, and 11 percent from March 2010.

– Median sales prices for both houses and condominiums increased to $159,250 for houses and $173,000 for condos, representing a 16 percent and a 26 percent jump, respectively.

– Distressed property sales fell to 43 percent of the total. In February, 47 percent of all sales were foreclosures or short sales.

– The inventory of for-sale houses fell to 6.0 months, down from 8.0 months in February. This could represent “the cusp of a seller’s market,” said the report. For condos, the remaining months of inventory dropped to 9.2 months from 10.4 months in February. Realtors consider a 6-month supplyof for-sale homes to be a balanced market between buyers and sellers.

“Price appreciation normally follows a declining inventory and increased competition among buyers,” explained Bruno. “I’m still hopeful that this trend, which has been evident now for several months, continues into the summer months. Last year, we saw strong activity in April, May and June, probably connected to the federal tax credit. But there is evidence the trend will repeat this year after seeing the March sales and pending sales figures.”