Market Summary 2012: A Year of Transition and Looking Forward to 2013

2012 was indeed a year of transition, as perception about the market finally came in line with reality. It seems there was enough evidence to convince people of the fact the Sarasota property market is no longer going lower. In actual fact, this happened as many as nine months ago – when I wrote about the fact that the best deals were likely over, except in the luxury sector. But it seems now this realization has firmly sunken in. Watch my video below to see how this is affecting the market and prices:

Now, buyers I’m seeing are fully aware the best deals are behind us, but also recognize whatever they buy offers good value. There is finally stability in the market. And that’s reflected in the numbers: overall sales were up 10% from 2011 to 2012 and there were almost 1,000 more closings.

A visibly stable market changes the game plan for many buyers and sellers. Sellers are listing their properties with the aim of moving on to the next stage of their lifestyle ladder, and buyers are realizing that there’s no waiting for a deal.

Here are my key highlights which show how the market’s performing:

• The luxury market (properties listed for $1m and more) represented 3.5% of the total market, which is about a point higher than the 4th quarter for 2011.
• 12% of the market in Sarasota is for properties between $500k and $1m. It has not been over 10% for many years. This means prices are on the up.
• The distressed segment is hovering at about 3 in 10 properties changing hands. This is around where it’s been for the past 12 months, so this sector is stable and not increasing. As the equity in the market increases, there will be less and less distressed properties.
• Closings in the 4th quarter of 2012 increased by 17% over the 4th quarter of 2011, which speaks for itself.
• Finally, properties under $200k represented roughly 55% of transactions. This is significantly lower than previously, which means two things: that prices are rising in this segment, and that we’re getting more buyers at the higher price points.

Everyone’s Looking Lively as the Market Picks up Pace

Many sellers who are ready for a lifestyle change are listing their properties so that they can make that change happen. Buyers realize the best opportunities are long gone, but that they can negotiate out the current market value based on solid data and buy with confidence in their investment.

If you’d like to discuss current opportunities please don’t hesitate to call me directly at 941.587.0740.