Year-To-Date Snapshot: The Recovery Continues

Don’t be misled by the less-than-rosy national housing news.  All real estate is local; and here in Southwest Florida the local picture gets brighter by the month.  Sales are up, inventories are down and prices are being coaxed up as a result.  As the latest independent research from Trendgraphix points out, our market’s recovery has been gathering steam for the better part of a year now.  Below is the latest market snapshot for Sarasota County, comparing year-to-date pricing and inventory trends:

* In coming off a very active spring selling season, July 2011 sales were 18.7 lower than June; but 21% higher than July 2010.  July 2011 “pendings” were exactly on par with June; and nearly 30% higher than last July.

* Based on July’s rate of closed sales, there is now less than a 6-month supply of properties under $300,000.  A six month supply is the traditional dividing line between a buyer’s and seller’s market.  In higher price ranges, a 15 to 18-month supply tends to be the tipping point.

*Inventories of available properties have fallen by 28.6% across the board since January; and by 66.5% for properties over $1 million.

* In a classic case of supply vs. demand, consistent strong demand—against a backdrop of steadily declining inventory—is generally pushing prices higher.

* Since January, the median price for properties across all price ranges is up 12.8%.  Over the same period prices for $1 million + properties rose by nearly 14%.

* The average property is presently selling at 24% below its original list price, a reminder of how vital it is to get expert guidance on pricing before you list.  Today’s value-conscious buyers just say “no” to overpriced properties.

* Even though the supply of $2 million+ properties has fallen by nearly 50%, prices continue to trend downward as supply remains well ahead of demand.

  Price Range                                     Jan. 2011              July 2011              (+ or -)

All properties; all price ranges        

  • Months of Available Inventory                    10.5                        7.5               -28.6
  • Median Price                                         $125,000              $141,000            +12.8

Properties under $150,000                                                     

  • Months of Available Inventory                      6.0                         4.4             – 26.7
  • Median Price                                          $ 82,000               $  88,000             + 7.3

Properties under $300,000

  • Months of Available Inventory                      7.7                        5.6              -25.4
  • Median Price                                         $110,000              $115,000            +  4.5

 Properties $300,000-$500,000         

  • Months of Available Inventory                     17.2                     11.2              -34.9
  • Median Price                                          $370,000             $369,000            – 0.3

Properties $500,000-$1 million

  • Months of Available Inventory                      33.1                    18.6             -43.8
  • Median Price                                           $645,000            $647,000           + 0.3

Properties $1 million +

  • Months of Available Inventory                      55.6                     18.6             -66.5
  • Median Price                                        $1,444,000          $1,644,000           +13.9

 Properties $1 million-$2 million

  • Months of Available Inventory                       57.7                     15.6            -73.0
  • Median Price                                         $1,350,000          $1,388,000          + 2.8

Properties $2 million +

  • Months of Available Inventory                      52.2                      26.4           -49.4
  • Median Price                                          $2,600,000          $2,281,000        -12.3

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