How many properties have sold this year?
There seems to be the misconception that nothing is selling. You read doom and gloom in the Sarasota Herald Tribune regardless if we are in a boom market or a slow market. Here are some statistics on the number of properties that have sold so far this year in Sarasota. I ran a search for sold properties in MLS for Sarasota, Nokomis, Osprey, Casey Key, Lido Key, Longboat Key, Bird Key, Siesta Key and Lakewood Ranch.
MLS statistics for January 1 to June 25th:
Sold Properties
1,477 single family homes
992 condos sold
23 multi-family properties
66 lots
60 commercial properties
Properties currently under contract/pending sales
478 single family homes
528 condos
19 multi-family properties
36 lots
40 commercial properties
Expired or withdrawn from the market
3,190 single family homes
1,893 condos
61 multi-family properties
207 lots
210 commercial properties
Every real estate transaction is not reported on the Sarasota MLS. New home builders and condos developers typically don't report their sales on the MLS. Properties are in fact selling. Obviously, they are not selling as quickly as the 2004/2005 boom real estate markets. It would be interesting to compare this years statistics to the 2002/2003 real estate market. There is alot more for sale now versus those years. However, much of this inventory will be taken off the market over the next year.
MLS statistics for January 1 to June 25th:
Sold Properties
1,477 single family homes
992 condos sold
23 multi-family properties
66 lots
60 commercial properties
Properties currently under contract/pending sales
478 single family homes
528 condos
19 multi-family properties
36 lots
40 commercial properties
Expired or withdrawn from the market
3,190 single family homes
1,893 condos
61 multi-family properties
207 lots
210 commercial properties
Every real estate transaction is not reported on the Sarasota MLS. New home builders and condos developers typically don't report their sales on the MLS. Properties are in fact selling. Obviously, they are not selling as quickly as the 2004/2005 boom real estate markets. It would be interesting to compare this years statistics to the 2002/2003 real estate market. There is alot more for sale now versus those years. However, much of this inventory will be taken off the market over the next year.
posted by Marc Rasmussen at
2:13 PM
11 Comments:
Marc,
How many of those 1,477 homes and 992 condos sold so far this year were from the mainland versus the keys? Also, it would be interesting to see the sales prices of those homes sold.
What I'm getting at is that I suspect there have been more transactions in the higher price range, which would make sense because the wealthy are less affected by the slowdown in the economy.
The number of homes that have expired or withdrawn is over twice the amount that have already closed. That is significant.
When the ARMS adjust upward, those sellers won't just be able to withdraw their homes from the market. They will have to move them at whatever price.
From January 1 to June 25
Single family homes sold:
Longboat Key - 44
Lido and Bird Keys - 18
Siesta Key - 48
Casey Key - 6
Sarasota and Lakewood Ranch - 1361
Condominiums sold:
Longboat Key - 137
Lido and Bird Keys - 27
Siesta Key - 94
Casey Key - 2
Sarasota and Lakewood Ranch - 732
Single family homes sold prices:
0 - $500,000 - 985
$500,001 - $1,000,000 - 343
$1,000,001 - $2,000,000 - 93
Over $2,000,001 - 56
Condominiums sold prices:
0 - $500,000 - 628
$500,001 - $1,000,000 - 279
$1,000,001 - $2,000,000 - 62
Over $2,000,001 - 23
I hear alot of people out there are moving their ARM loans into fixed ones.
"The number of homes that have expired or withdrawn is over twice the amount that have already closed. That is significant."
Yes, that is a significant number. But that is ok. The market is getting rid of the properties that were priced for last years market.
Marc,
By all appearances I probably sound like a pretty pessimistic person when talking about the current real estate market in Sarasota. Well, I actually consider myself a very optimistic person, in general. I do however like to look at things in a realistic way and try and see things for what they are, rather than what I wish them to be.
We can differ on the degree of the slowdown, but everyone in the RE market pretty much has acknowledged that we're in a slower period than we were 6-9 months ago.
That said, what would you say are some key factors that home sellers should focus on while they're trying to market their home ?
Given the tougher environment, what can people do to make their home stand out from all the others on the market that will help them get a sale ?
Thanks
"That said, what would you say are some key factors that home sellers should focus on while they're trying to market their home ?"
1. Pricing the home accurately. If possible find 3 comparably priced homes that have sold within the last 3 months. There is a good chance that nothing has sold so go back 6 months looking for comparably priced homes. Also compare your home to your competition. Find homes actively for sale within your neighborhood and similar nieghborhoods in town.
2. Provide easy access for Realtors to show the property. The more of a headache it is for a Realtor to show the likelihood that they wo't do it. There are too many other homes on the market.
3. Staging your home - Get rid of the clutter and clean.
4. Hire a professional Realtor that will market and advertise your home.
Here is more information on selling your home:
http://www.thesarasotamls.com/selling-your-home.php & http://www.thesarasotamls.com/selling-sarasota-home.php
It i still there:
http://www.thesarasotamls.com/sarasota-real-estate-news/
Marc,
Don't you think comps are only to be used as a general guide when pricing a home ? Because comps look at previous sales I don't think they're as effective in a declining market like we have now.
Given that interest rates continue to rise I think one has to look at the comps and then factor in the rise in rates and how that affects prices.
I have followed many properties that were listed 4-6 months ago at what I considered "way too high" a price. Now those same homes have been slashed in price by between $30,000 to $90,000, and they're still not selling.
If the seller's agent would have set the price lower initially they could have sold it rather quickly, but now they can't even sell it for what they could have received 3 months ago because rates are higher today than they were then.
I told an agent who has a listing 3 months ago that his price of $289,900 for the house was $40,000 high. He was incredulous.
Well he now has the house listed at $249,900 and said to me recently, "I have it priced where you told me it should be."
My reply was that it would have sold at $245,000 3 months ago but that now it won't sell for more than $225,000 to $230,000 because of higher rates. Once again, he thinks I'm way off.
We'll see what transpires ...
What is your take on how comps should be used in pricing a house ?
"Don't you think comps are only to be used as a general guide when pricing a home ?"
Yes. They can only be used a guideline in declining or rising markets.
"Given that interest rates continue to rise I think one has to look at the comps and then factor in the rise in rates and how that affects prices."
There are many variables in the pricing of a home. It would be pretty tough to quantify what a .25% increase would do to the price of a home due to so many variables. I feel the best way is to compare the home to comparable homes that have sold recently.
One can definitely over analyze this stuff.
Marc said:
"There are many variables in the pricing of a home. It would be pretty tough to quantify what a .25% increase would do to the price of a home due to so many variables."
"One can definitely over analyze this stuff."
You may be right Marc that I'm over analyzing stuff like interest rates and how comps are used to value homes that are for sale, but I think many home sellers and realtors do not factor these considerations much at all when they market a house.
You made a valid point recently that the number of new realtors in the SW Florida market over the last 3 years likely brought a lot of part-time and/or very inexperienced people operating as realtors.
This may largely contribute to the unrealistic prices that I continue to see. All the more reason to choose an experienced, seasoned realtor when selling a property.
Yesterday's highly anticipated move up in interest rates by the Fed coupled with a jump in oil up to $73 portends further price declines in home values, IMO.
That said, I'd venture a guess that barring any unforeseen world event (terrorism, oil shock, etc.) that another 10%-20% decline in housing prices will induce buyers to come back into the market.
Keep posting news as you see it. I really enjoy and appreciate the opportunity to exchange thoughts and ideas.
"but I think many home sellers and realtors do not factor these considerations much at all when they market a house."
I agree.
"This may largely contribute to the unrealistic prices that I continue to see. All the more reason to choose an experienced, seasoned realtor when selling a property."
Amen brother. ;-)
"Yesterday's highly anticipated move up in interest rates by the Fed coupled with a jump in oil up to $73 portends further price declines in home values, IMO."
That is always possible. I have been busy lately as have other agents in my office. 2 of my clients just went under contract to purchase property. The buyers are out there and in control. I believe this is a good time to buy if you are not looking to flip the property for a quick buck.
"That said, I'd venture a guess that barring any unforeseen world event (terrorism, oil shock, etc.) that another 10%-20% decline in housing prices will induce buyers to come back into the market."
The buyers are already coming back but hesitantly. I have quite a few people looking to buy but want to see what the market is going to do. A few of them are jumping in and I think more will follow in the next few months.
"Keep posting news as you see it. I really enjoy and appreciate the opportunity to exchange thoughts and ideas."
Will do. ;-)
"but I think many home sellers and realtors do not factor these considerations much at all when they market a house."
I agree.
"This may largely contribute to the unrealistic prices that I continue to see. All the more reason to choose an experienced, seasoned realtor when selling a property."
Amen brother. ;-)
"Yesterday's highly anticipated move up in interest rates by the Fed coupled with a jump in oil up to $73 portends further price declines in home values, IMO."
That is always possible. I have been busy lately as have other agents in my office. 2 of my clients just went under contract to purchase property. The buyers are out there and in control. I believe this is a good time to buy if you are not looking to flip the property for a quick buck.
"That said, I'd venture a guess that barring any unforeseen world event (terrorism, oil shock, etc.) that another 10%-20% decline in housing prices will induce buyers to come back into the market."
The buyers are already coming back but hesitantly. I have quite a few people looking to buy but want to see what the market is going to do. A few of them are jumping in and I think more will follow in the next few months.
"Keep posting news as you see it. I really enjoy and appreciate the opportunity to exchange thoughts and ideas."
Will do. ;-)
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