Regional housing showing some life

Hello everyone,
More decent news on our local real estate market as compared to the rest of thestate. I do believe in the "first in-first out" theory, meaning our market was the first to get hit as the market started its downward slide, and I do feel we will be the first to see recovery as well. Prices have shifted much quicker in the Sarasota market as compared to others, thus attracting the buyers who are looking for better value, particularly the foreign buyers. Here is a re-print of another Herald Tribune article in todays paper..... 2 positive articles about Sarasota real estate from the Tribune???? ...in 1 week????? Wow... that tells ya somethin!


Reprinted from Herald Tribune 11/29/2007
By STEPHEN FRATER and MICHAEL POLLICK
More homes sold in the Sarasota-Bradenton market in October than any place in Florida besides Jacksonville, Orlando and Tampa-St. Petersburg.It speaks to the depth of the malaise in the housing market in Florida, where sales dropped 29 percent when compared with the same month last year.But it also offers hope to some market watchers that perhaps Sarasota-Bradenton is emerging from the doldrums brought on by the 2004-05 housing rush faster than other places in the Sunshine State."First in will be the first out, and maybe we are seeing some signs of that in Sarasota's relatively good performance compared to the state as a whole," said Chuck McKenna, president of Sarasota's McKenna and Associates Realty.The action in Southwest Florida comes against the backdrop of an October decline in the national median sales price that was the largest on record and worries that the housing mess could tip the nation into a recession.Sellers in Sarasota-Bradenton moved 528 homes during October, a 17 percent decline compared with the same month last year. But major markets Miami and West Palm Beach-Boca Raton had only 367 and 450 sales, respectively.Prices in Sarasota-Bradenton, meanwhile, dropped 5 percent to $263,900. But that was better than September's median of $244,300, which was 15 percent below September 2006.The Charlotte County-North Port market continued to struggle. Only 168 homes sold there, 33 percent fewer than a year ago, while the median price dropped 11 percent to $183,300. But that was higher than September's median of $170,000.Analysts blamed the worsening housing slump nationally on the credit crunch that hit in August.The National Association of Realtors reported that national sales of existing single-family homes and condominiums dropped by 1.2 percent last month. The median price of a home sold dropped to $207,800, 5.1 percent less than a year ago.Florida's two coastsTo evaluate how Southwest Florida compares with the southeast part of the state, prices are the key, said Jack McCabe, a real estate consultant based in Deerfield Beach.At a median price of $263,900, the typical home now selling in Sarasota-Bradenton has fallen 23 percent from $340,700 two years ago.In contrast, the median sale price in the Miami metro area has fallen by only 3 percent. In Fort Lauderdale, today's median is only 4 percent less than two years ago, when prices were close to their peak."That is one of the reasons there are so few sales in South Florida as compared to a much smaller market like Sarasota," said McCabe. "Because there has been resistance by sellers -- they are still hoping to get those 2005 prices."Miami-Fort Lauderdale sellers only now are becoming more realistic in their asking prices."The price drops in Southeast Florida are going to happen in the next couple of years," McCabe said. "Whereas markets like Sarasota and Fort Myers, the price drops are already in progress."Southwest Florida Realtors pointed to some signs of improvement."The luxury market continues to sell, and with prices nearing a four-year low in many cases, the seasonal market is perceiving it truly is the time to buy," said Sue Wolverton, senior vice president for the Sarasota Bay Region for Coldwell Banker Residential Real Estate Inc. "It is difficult to say that we are at the bottom, but with renewed interest from the customers, we are already seeing dual offers on homes appropriately priced."Wolverton and Candy Swick, another Sarasota Realtor and broker, said there has been a higher level of interest from foreign buyers, particularly Canadians and Brits."The educated who are watching the statistics are discussing the euro's strength and the Canadian loonie's strength," Swick said.For Michael Saunders & Co., sales this October were 20.6 percent higher than a year ago."We are once again regularly fielding multiple offers on well-priced listings," said founder Michael Saunders, adding that appointments to look at properties are up 7 percent year-to-date. "So far in November we have received 400 more calls than for the same period last year and are still selling upwards of $5 million in properties each day."Condominium results in Sarasota-Bradenton for both the third quarter and for October are signs of improvement, Saunders said.Last month, condo sales were up 10 percent, from 193 to 212. The median price was down slightly, from $226,000 to $224,000."That's very good news for us, suggestive of a bottoming out in that segment of our market," Saunders said.Inventories remain highBut the number of houses and condos for sale remains at doggedly high levels.As of Nov. 1, for example, there were 8,005 single-family homes for sale in the Sarasota Multiple Listing Service. That is down 5 percent from the peak of 8,411 in March, but 100 to 200 houses more than in July, August or September.Realtors are chipping away at an average weekly rate of 62 houses, meaning 128 weeks worth of inventory, or more than two years worth, at the current sales pace.There were 4,653 condos for sale, down 11 percent from the peak of 5,224 in April. The number of listings has been trimmed down steadily in recent months.Realtors are only closing on 27 units per week, meaning it would take more than three years to clear out the existing stockpile.There has been movement of homes in the upper ends of the market, said McKenna, the Sarasota Realtor. But what concerns him is the lack of liquidity in the "meat and potatoes of the market -- those $400,000 to $800,000 homes that simply are not moving as fast as Realtors or owners would like."Louise Guido, broker and president of Westcoast Realty of Florida, said she is "not sure there is movement in the market that shows a change of direction. I personally believe some people are just getting out of the deals they are in.""Yes, there are buyers, and the magic number is around $400,000, which is 2004 pricing. Some sellers are holding firm because they feel there will be a turnaround," Guido said. "I do not see that just yet."Some home builders echoed the more optimistic Realtors.Neal Communities said it sold its 100th home this year, outstripping the 88 sold in 2006. "Traffic has changed, and we're seeing an uptick in the numbers of visitors to our communities," said Pat Neal, president of the Lakewood Ranch-based company. Lee Wetherington, president of the Lakewood Ranch home building company bearing his name, also has seen more activity."The amazing thing is that we are seeing about a 50 percent increase in traffic, which is a great improvement from last year at this time," he said, noting attention from foreign customers. "There are a lot of buyers out there feeling out the market in Sarasota and Manatee."They are cautious, though, and definitely looking for bargains. "But they are not fence-sitters, they are buyers."In Englewood, broker J. Erick Phelps of Corin Bay Real Estate was coming to some of the same conclusions.Like Wetherington, Phelps is getting buzzed by foreign clientele -- Canadians and Germans -- whose currencies are gaining buying power as the dollar weakens.Phelps also said that the decline in prices has boosted the market."There was virtually nothing below $200,000 for quite a long time," he said. "When everything started crashing, it lowered prices back down to where first-time homeowners could get into a home, and they are the ones who have kept the market going."That local buying has helped push the median price lower, he believes."Now we are getting into the snowbird season. You will see more of the high-dollar property moving now."