2013 Sarasota Real Estate Year Report
The Sarasota Real Estate market showed continued strength for 2013. Total sales for 2013 were up 9.6% which ended up surpassing 2005 levels. Sales were within 5% of the all-time sales year of 2006 based on total units sold. Average marketing time to contract dropped 31% from 115 days in 2012 to 88 days in 2013.
Bank Participation Down
Looking behind the broad numbers, short sales dropped from 1,719 units to 1,112 in 2013 representing an almost 50% drop over 2012. Foreclosures remained relatively flat with 1,503 foreclosures sold in 2013 vs. 2012’s 1,434 units. Traditional sales not involving any bank approvals on the seller’s side rose 21% from 7,358 units in 2012 to 8,910 in 2013.
Average Prices Up
The upward trend in sales which began in 2007 continued again relative to pricing. The average sales price increased by 8.8% from 2012’s $247,299 price to $269,074. The price per square foot also increased 11% from $129.97 to $144.32. There are also some fairly consistent trends in the monthly numbers showing higher dips and higher highs.
Overall Volume is Up
Total volume of sales was up 16% from $2.6 billion to $3.1 billion with several record sales were recorded in 2013 with Sarasota Real Estate Group having the second highest sale in Sarasota with the sale of 1452 Hillview Drive in Harbor Acres for $7,000,000
Looking forward we are seeing an increase in inventory in both foreclosures and non-bank homes. We view this as a healthy situation. Many sellers have put off selling until the market got better. The initial bounce off the market bottom in pricing occurred in 2010. Price increases came three years after unti sales began to turn. The influx of buyers that came into the market after approximately 50% drop in price caused shortages and pricing spikes. No real estate market can sustain 10-15% price increases year over year for very long. In fact, doing so would create another bubble that no one wants to see. We view the current market as healthy, appreciating at sustainable levels, and attractively priced at price levels 55% of what they were at the peak in 2005.
For bargain hunters, the days of making below market offers passed in 2010. That doesn’t mean today’s prices don’t have room to increase. What we see as key in any real estate market is stability. While no one can predict future events, we have been fairly accurate calling the bottom in April 2012. The modest increase in supply we have seen at the beginning of 2014 will cause prices to rise at a slower pace that should give comfort to the long term prospects for home ownership. After all, even with the price increases over the past several years, we are off the peak prices at 45% less than the prices of 2005.
Sarasota Real Estate Group
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