The books are in on Q1 2011, and what a fascinating market we’re looking at. I’m seeing some really promising sections, some areas that decreased, one golden niche, and something priceless that’s driving the market.
What actually happened?
Overall, sales were up nearly 20% from the previous quarter — that nets out to almost 400 more properties sold January thru March compared to October thru December.
I don’t know how much weather plays into the equation, however, the weather during the last six weeks has been great. Perhaps that is why nearly 950 properties changed hands in March alone!
What this means for you as a buyer or a seller of Sarasota Investment property:
With the uptick in activity, sellers have been digging in their heels a bit more during negotiation. While buyers are not quite getting the deal they hoped for, they are moving forward and both sides seem happy with their decisions once the closing is behind them.
One of my listings will close this week. It was on the market for 12 days and received 20 showings and three offers that were of 95%, 97% and 100% of the asking price. This is a market on the move.
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How’s that playing out at different price points in the Sarasota real estate market?
The bulk of the Sarasota real estate market activity is still with properties listed under $200k, which represents about 2/3 of all sales. More than 91% of all homes sold were properties listed under $500k. This is very consistent with the previous quarter.
The number of distressed properties that sold increased by almost 15%. Roughly 4 of every 10 properties that changed hands were distressed, which is also consistent with last quarter. And while the raw numbers increased the actual percentage of distressed sales as a percentage of total sales decreased, which I believe is a good sign.
Looking for a deal? There’s one magic niche…
One of the brightest segments of the market was properties listed over $1m. I spoke last time about how I saw this as a niche where the best deals were to be found.
Indeed this came to fruition as this segment saw a 30% increase from the previous quarter and inventory levels are now down to 2 ½ years (a significant decrease).
I believe that this increase in the higher-priced property sales is strong validation for our market. While there are so many unknowns in our world it is encouraging that more buyers and sellers are coming together and moving forward.
And the Priceless part?
The common sentiment from my clients who purchased homes here within the last two quarters is that they are so happy to be enjoying their new lifestyle. One client in just the last few days greeted me with a big hug and shared that their purchase of a waterfront home on Siesta Key was one of the best decisions of his life.
If you have any question, give me a call at 941.587.0740.
