Large Drop in Sarasota Homes For Sale

I was out showing property yesterday and my client said, "all of the homes we wanted to see have sold!" She had been searching for homes on my website fors awhile and when she came to town many of her favorites had sold. Lately, this has been a common occurence.

Trendgraphix updated their charts. Below is the chart for Sarasota homes for sale.

What an impressive drop in the number of homes for sale in Sarasota county. In December 2010 there was 6,923 homes for sale and 5,613 as of May 2011.

That is a 19% drop in inventory in 6 months!

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago
	May. 11	Apr. 11	% Change	May. 11	May. 10	% Change
For Sale	5613	6046	-7.2%	5613	6809	-17.6%
Sold	940	931	1%	940	908	3.5%
Pended	974	1045	-6.8%	974	793	22.8%

From April 2011 to May 2011 inventories dropped 7.2%. Pending sales from April to May dropped nearly 7% but is typical every year. Notice the drop in pending sales in 2010 from April to May. Another great statistic is that May 2011 pending sales are nearly 23% higher from May of 2010 (975 vs 793).

Like anything else (stocks, bonds, corn, gold) -  if there are eager buyers out there and they have less and less to choose from prices will ultimately rise.

Key Takeaway:

The Sarasota real estate market is getting healthier.

Months of Inventory

The graph above is the months of inventory (based on closed sales) for single family homes in Sarasota county. Right now we are hovering around 6 months. Many real estate experts agree that 6 months represents a balanced market. Notice in 2007 inventory levels reached 35 months.

Key Takeaway:

Buyers have a lot less to choose from. Sellers are gaining leverage.

Sarasota Condos For Sale

In the Sarasota Association of Realtors press release - Sales Surge Continues in May; Condo Prices Soar there is mention of rising prices in the Sarasota condos market.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago
	May. 11	Apr. 11	% Change	May. 11	May. 10	% Change
For Sale	1707	1823	-6.4%	1707	2093	-18.4%
Sold	220	233	-5.6%	220	197	11.7%
Pended	206	224	-8%	206	162	27.2%

As you can see the number of condos for sale in Sarasota county dropped 6.4% from April 2011 to May 2011. The sold properties dropped as well but that was to be expected as the busy winter selling season ended. Look at May 2011 inventory of condos - 1,707 and compare to May of 2010 - 2,093. That is an 18.4% drop! Compared to a year ago sold condos are up 11.7% and pending sales are up 27.2%!

Months of Inventory

The above chart shows the months of inventory for condos in Sarasota, Florida. We are hovering arond 8 months which is a pleasant change from the 17 month supply we had in July of 2010.

Key Takeaway:

The Sarasota condo market is doing well. Buyers obviously have less to choose from. Sellers have less competition.

If you are thinking of buying or selling a property in Sarasota, Florida give us a call at 941.812.6272.