New home sales jump, but median prices fall

Sales of new homes jumped substantially in April. The jump in sales was the largest in 14 years, though the median price of a new house dropped by the largest amount on record. Many around the country welcome this news and stabilization in the real estate market.

From March to April sales of single family homes jumped 16.2 percent but the median new home price declined a record 11.1 percent. The drop in price was needed. Home prices need to be tied to affordability. In many parts of the country, including Sarasota, the market became overheated by speculators and home prices were unrealistic and unsustainable. Now prices are dropping and getting more in line with what people earn. The Sarasota real estate market has gone through a cleansing process and we may currently be at an equilibrium. Prices could soften a little more but I don't think it will be dramatic. If you are currently a buyer and find the right house with a realistic seller I don't think you will gain much by waiting.

"We've hit bottom. This is it," said Lee Wetherington, president of high-end home builder Lee Wetherington Cos. "From here on out, it's going to be more positive." Wetherington said that the national report reflects what he is seeing in prices and sales in this region. His Lakewood Ranch company's sales have risen by about 20 percent this year. But Wetherington Cos. cut its prices by 20 to 25 percent overall since the market softened.

Pat Neal, president of Lakewood Ranch-based Neal Communities, has seen similar changes in the market."Our May results are better than May of 2004, 2005 and 2006," Neal said. "We've sold 14 homes this month with an average price in the high $500,000s."

After Auction Action

Take a look at this article from the Sarasota Herald Tribune - Sky Sotheby’s auction spurs buyers to drop millions more.

It talks about the success of the SKY Sotheby's/J.P. King auction held last week at The Ritz Carlton. The article mentions the post auction activity on the properties that did not sell. We expected properties to sell prior to the auction as well as after it. Before it is all over Chad Roffers, president of SKY Sotheby's, expects about $32 million dollars of property to sell.

We are planning on having another auction later in the year. If you have an interest in selling your property contact me at 941-812-6272 or email me.

Just Sold in Bent Tree Woodlands I

I just sold this wonderful lakefront home in Bent Tree Woodlands I. The home has 3,209 square feet, was built in 1982 and sits on almost an acre. It solds for $580,000. The home was in average condition and could use some updating and love.
Bent Tree Woodlands I is a great family neighborhood off Proctor road just east of I-75. It is a gated community with grand home sites and large lakes throughout the community. Please contact me at 812-6272 is you need help buying or selling a property in Sarasota.

Residential housing will rebound in '08 and '09

Hank Fishkind, Florida's premier economist, spoke at The Lakewood Ranch Country Club Thursday night to several hundred builders, developers, Realtors, mortgage brokers and other members of Southwest Florida's real estate industry. He believes that the downturn in the residential real estate market is over.

"I argue that housing has stopped going down," Fishkind said. "It is weak. It is painful, but it is not going to get any worse."

"Housing starts have fallen below new home closings, which means we are starting to eat into inventory," Fishkind said. "We are at the bottom, but this bottom is going to take a number of months to get better."

He predicted that Sarasota and Manatee will burn off excess inventory this year, and that sales will improve in 2008 and 2009.

I agree with Hank Fishkind. There will probably be some segments of the market where prices will decline because of a high concentration of investors.

Properties that show well, are marketed well and priced well stand a good chance of selling. With more homes selling in this market it provides a clearer picture of values. However, many sellers still tend to ignore the lower sales prices. It takes time for sellers to accept the whole process of a market correction. Home prices in the Sarasota have been declining for almost 2 years. It looks like we are heading into a flat market now.

I am putting money where my mouth is as I am closing on a new home on Monday.

SKY Sotheby's/J.P. King Property Auction

Yesterday we had our spring portfolio sale at The Ritz Carlton in downtown Sarasota. Over 300 people attended the exciting event which was the areas largest luxury home portfolio auction ever presented in a single swoop. I think it went very well and most who attended considered the event to be very successful.

Several properties sold prior to the auction. The Sarasota Herald Tribune reports property sales of almost $16 million. The largest sale was a mansion in Lakewood Ranch on Cowcamp Lane. The 14 acre, 7 bedroom, 11,000 square foot home with a 22 stall barn sold for $6,000,000. Typically, transactions occur after the auction so we will get a tally in a few days as to the total dollar volume of properties that sold.

Chad Roffers, SKY Sotheby's president, worked very hard on this auction and did a great job.

Sarasota Herald Tribune article

Sarasota property inventory

A reader asked me to update these figures from April 18th.

Sarasota Homes
1,316 under $300k
1,528 from $300k to $500k
805 from $500k to $750k
471 from $750k to $1,000,000
970 over $1,000,000

Sarasota Condominiums
1,553 under $300k
736 from $300k to $500k
725 from $500k to $750k
348 from $750k to $1,000,000
422 over $1,000,000

On the auction block, the luxury lifestyle

Here is an interesting article in the Sarasota Herald Tribune paper today about our portfolio auction. Today, at 1 p.m., SKY Sotheby's International Realty and J.P. King will attempt to auction off one of the largest luxury home portfolios ever offered at one time in the nation at The Ritz Carlton. There are 20 properties in the auction ranging in value from $300,000 to $9 million and an average asking price of $2 million. We have already had several properties go under contract that were originally slated to be in the auction. Stay tuned and I will let you know how the auction went.

New listing west of the trail

I just listed a totally remodeled west of trail home at 1975 Wisteria street. This lovely 2 bedroom 2 bath home was built in 1985. It has stainless steel appliances, new kitchen, bathrooms and flooring. Located in a convenient location. You are only minutes to downtown Sarasota, Siesta Key and Lido Key beach and can walk to Southside Village. Asking price $449,900 and the seller will entertain all reasonable offers. Virtual Tour

Sotheby's International Realty Conference

I was at The Phoenician Resort in Scottsdale, Arizona this week for the Sotheby's International Realty Convention. I was really impressed with the international reach of Sotheby's. We have affiliates all over the world to help sell your home. With the current real estate climate it is important to not only attract buyers on a local and national level but also internationally as well.

Please contact me if you are thinking of selling your home and would like to hear how the Sotheby's affiliation would benefit you. My cell phone is 812-6272.