Q2 2016: Global Change, the Sarasota Real Estate Market, and UTILITY

Many years ago, Saturday Night Live had a comedy sketch called Mr. Robinson’s neighborhood. Each week the host, Eddie Murphy, would have a word of the day. Well in this month’s newsletter I have chosen the word Utility. Can you say it with me, boys and girls … UTILITY!

Global Volatility and Utility

During the past several years there have been many events – whether political, economic, social, or environmental – that impacted global markets. What happens globally also impacts our Sarasota real estate market. Even the recent events around Brexit bring me back to the word of the day.

The one constant in today’s world will be volatility. There is no crystal ball that will show us the road ahead. Because of this, I feel it is imperative when making real estate decisions that you chose property based on your current or intended future utility – meaning the pleasure or satisfaction you will derive from living in a certain place.

Recently I received an email from a potential client trying to determine whether to purchase a home in North Carolina or Sarasota. In the email, the Buyer claimed that they prefer Sarasota, but only if they find “THAT HOUSE.”

You Can Always Change a House, But Never the Setting

Personally, I feel that this approach completely misses the mark. The point is to make an investment in the lifestyle that will bring you the most satisfaction, i.e. utility.

After all, there are significant differences between living in North Carolina and living in Florida. I think that being short-sighted and only focusing on the house can lead to a poor purchase, i.e. investment decision.

Making intelligent choices now will also help in the future should life happen and you need to sell the property. I urge you to determine your personal utility before your next real estate transaction and when you are ready, our real estate team at Investments In Sarasota will assist every step of the way.

Q2 2016: Global change and It’s Impact on our Local Market

Here are the factors I find most significant to highlight:

• The number of properties sold in Sarasota for the second quarter of 2016 decreased from a year ago by about 4.3%.
• The number of properties sold between $200,000 and $500,000 increased by over 18%. This was the most significant change in my estimation, and one of the clearest indications that prices are rising. Last quarter was the first time that we saw the bulk of our sales occurring in the $200k-$500k segment, this quarter we have seen a significant jump in those numbers.
• The number of properties sold between $200,000 and $500,000 increased by over 18%. This was the most significant change in my estimation, and one of the clearest indications that prices are rising. Last quarter was the first time that we saw the bulk of our sales occurring in the $200k-$500k segment. This quarter we have seen a significant jump in those numbers.
• The distressed market decreased by a whopping 52%. It remains at about 7% of our market. Though there are still many properties that are still worth less than the amount owed to a Lender.
• The luxury market decreased by about 5%. There is about 12 months of inventory in this segment.

Sarasota’s real estate market is healthy, and slower sales mean a bit more selection, more moderate price increases, and a reminder that here in Sarasota we are not immune from the changes in our global marketplace, both good and bad.

If you are looking to make a life change, please consider what utility means to you before you begin your search so you stay true to your goals and are happy with your next move (941.587.0740).