Home prices drop 17 percent

Here is an article from the Sarasota Herald Tribune about falling home prices. I don't think anyone is too surprised about the latest median sales price data. The median sales price in the Sarasota-Bradenton market was $277,900 last month, compared with $340,700 during the same month in booming 2005.

Chad Roffers, president of Sarasota-based Sky Sotheby's Realty, said the price decline goes hand in hand with slowing sales."

An 18 percent decrease feels about right. We're seeing unit sales down by a third across the board and prices off by 20 percent from the peak in mid-2005," said Chad Roffers, president of Sarasota-based Sky Sotheby's. "We are seeing a 'liquidity point' at values similar to those that existed in the fourth quarter of 2004. Those sellers who accept that level of value are seeing action. Those who hold out for 2005 prices are not."

SKY Sotheby's International Realty

I have decided to make a move to SKY Sotheby's International Realty. I have been impressed with this firm and happy to be a part of their organization. SKY Sotheby’s International Realty is committed to achieving $1 billion in sales in the next five years, with no more than 50 associates. Their vision is to set the ultimate standard of excellence within the luxury real estate market. If you are thinking of buying or selling in Sarasota please contact me at 941-812-6272.

Florida Housing Market for the 3rd Quarter

In the 3rd quarter of 2006, the number of transactions and median home prices dropped statewide. Inventory levels increased and sales have slowed. According the FAR (Florida Realtor Association) sales of single-family existing homes totaled 43,395 during the 3rd quarter, a decrease of 34 percent compared to 65,364 homes sold during the same time a year ago.

The University of Florida's Center for Real Estate Studies recently conducted a new statewide quarterly survey of industry executives, market research economists, real estate scholars and other experts. The threat of spiraling insurance rates was mentioned as the biggest concern, followed by the softening housing market as the second most-mentioned trend.

Still, even if a sharp downturn in the housing market occurs as some analysts predict, Florida will be less affected by it than other states because of the insulating effect of its high population growth rate, said Dr. Wayne Archer, director of UF's Center for Real Estate Studies. Despite some people's worst fears, housing is unlikely to suffer the same fate as tech stocks at the beginning of the decade, he said. "Unlike tech stocks, housing has a use, which means it can't just evaporate," he said.

You can read more information about this here.

Mortgage Rates Fall to 10-Month Low

Mortgage rates dropped to the lowest level since Jan. 25, with the average 30-year fixed rate now 6.24 percent. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.32 discount and origination points.

Interesting fundamentals we have:
20% or so drop in homes prices from the 2005 highs
10 month low in mortgage rates
no hurricanes
possible pent up buyer demand
coming into season (more activity with lookers, buyers and sellers)

If the politicians could reduce property taxes and home owners insurance we would be in good shape.

Written up in the Sarasota Herald Tribune

Michael Braga from the Sarasota Herald Tribune wrote a little write up about my website. Click here to read the article. The article is about the information I provide on the downtown Sarasota real estate scene. Michael found the 2006 downtown condo sales interesting. It shows what units sold in what buildings, the sales price, square footages, and the number of bedrooms and bathrooms. Someone looking for a condo in downtown should find this information useful. If you are looking to buy or sell a condo in downtown send me an email if you need my help.

For home buyers now, it's win, win, win all over the place

Falling prices are making it easier for some Americans to enter the housing market. The U.S. economy is expected to be a winner, too, because housing has been the biggest drag on it. This MSN article talks about how housing affordability leads to a growing economy.

The homes in Sarasota simply just became too unaffordable for many wanting to move here. At the top of the market in 2005 many of the people who live here could not afford to buy their own home. When affordability gets too far out of whack a price correction happens. That is what is going on now. The question many potential home buyers have now is when will the correction stop. Many fence sitters are worried about jumping off the fence because they are worried that prices may continue to fall after they make their purchase. That is an understandable concern for anyone.

I did a search in the Sarasota MLS for homes under $200k. Currently there are 515 homes for sale. There are 149 homes for sale under $150k. There are 198 condos for sale under $150k and 676 condos for sale under $200k. Does that sound affordable or do we need further price declines to bottom out? Only time will tell.

Siesta Key Condo on the beach

I just listed a Siesta Key condo within steps to the beach. This charming 1 bedroom/1 bath Siesta Beach House condo is located on the gulfside of Midnight Pass Road. It was gutted and has been totally remodeled with numerous improvements including granite countertops, porcelain tile floor, new kitchen, bathroom, appliances, drywall and ceiling. This cozy Siesta Key condo would make a great weekend getaway or winter retreat. Visit the Virtual Tour. Priced at $399,900. For a showing give me a call at 941-308-6766 or email me.

Nonprofit alleges Zillow estimates are inaccurate

The National Community Reinvestment Coalition has filed a complaint with FTC contending that Zillow.com knowingly deceives the public by presenting its property estimates as accurate, whereas in fact they are frequently far off the mark.

The nonprofit coalition, which is comprised of housing and economic justice organizations around the country, says its own audit of Zillow's accuracy documented that its valuations are within 10 percent of actual market value "less than one-third of the time."

Read more about this here.

I think Zillow is a great idea and a fun website to play with. However, I have seen some large discrepencies between what a home is actually worth and what Zillow says it is worth. I have to give them credit for being in the ball park quite often with many of their valuations.

I have met with a few potential sellers in Sarasota that rely heavily on Zillows valuation of their real estate. We ultimately did not work together because I thought they were asking too much as they were following Zillows opinion of value. So far I have been right.

Whether Zillow is purposely trying to decive the public is not really my concern. I really don't know what they would stand to gain by doing that. I still think Zillow is a great place to get an estimate of value.