A sign of recovery: bidding wars for houses

After a recession-driven hibernation, competitive bidding for homes is back in Southwest Florida.

But before anyone cracks open the bubbly, take note: The phenomenon -- by far -- remains the exception, not the rule.

Still, experts take the news as a sign that the region's long-suffering real estate market might have found some footing, loosening the grip that buyers have enjoyed and perhaps heralding better days ahead.

Because real estate is such a big part of Southwest Florida's economy, the return of home bidding could also be a sign that the recession -- which started earlier here than nationally and reached more deeply -- could be running its course.

The Herald-Tribune analyzed Multiple Listing Service data for all home and condo sales that closed in 15 Sarasota-area ZIP codes from Jan. 1 through Aug. 31.

Of more than 3,200 transactions studied, 520 -- about 16 percent -- had a sale price higher than, or equal to, the listing price, a possible sign of competitive bidding.

The data showed that the higher offers were much more common at the low to medium range of the price spectrum, but were not confined there.

Whether it is first-time home buyers rushing to take advantage of the federal government's $8,000 tax credit before it expires, investors jumping back in the game, or a general sense that the housing market has bottomed, Realtors say that competitive bidding has changed the game.

You can read the rest of the article here.

 

The above is an interesting article from the Sarasota Herald Tribune. There seems to be a misconception in the national media about Florida real estate. I get calls from people all over the U.S. about either retiring here or buying a second home here. Many of them are under the impression that nothing is selling in Florida. 

It is difficult to read from this chart but the red single line are pending sales and the dark green bars on the bottom are closed sales. As you can see the market is very active. It is also great to see inventories dropping dramatically. It is all about price right now.

Thinking of buying? Visit my Sarasota homes for sale page to view thousands of properties for sale in the area. Give us a call at 941.812.6272 if we can help you buy or sell a home.