Q2 2013: A Shrewd Market & Pockets of Appreciation

Today’s video is filmed from the shores of Lake Dunmore, just outside of Middlebury, Vermont. Watch below to find out how the
Sarasota property market has wised up, and which properties are appreciating in today’s market.

Sarasota Market: Rising Tides vs. Pockets of Appreciation

In this month’s newsletter, I want to talk about the increased activity in the Sarasota market during the second quarter of 2013. There is an old adage that a rising tide lifts all boats. That’s not necessarily true of the Sarasota market this quarter, or any quarter in recent memory. The rising tide in Sarasota is definitely not distributed equally.

While some properties are selling at higher prices than a year ago, there are very specific factors that ensure they do so. As I have shared previously it is still about location, setting, highest and best use of the property, and condition of the house. These variables determine which properties command a premium, and it is those properties only on which we’re seeing appreciation.

Q2 2013 – Positive Health and Growth Across the Board

Here are my takeaways from the market in the second quarter as we enter summer 2013:

• Good news is that it’s an active market across the board and there have been increased closings at all price points compared to the same period a year ago. Closings between April and June were up by 10% on the same period last year. There were more than 1,000 sales each month during the quarter, which is indicative of stable market health.
• As I predicted, after a slow start in the first quarter of this year, sales in the luxury market were up 57%. Yet relative to a year ago they increased by 1.7%
• Sales of distressed properties decreased 28% since the second quarter of 2012. They now account for 20% of the present market, which means the market is becoming healthier too.

A Shrewd Market

There are still properties on the market that continue to depreciate from 2011, as well as those that have appreciated. Rather than a bubble market that is rising uniformly, this is a shrewd market: prices are rising where the features and characteristics of the property justify a higher price.

Also as a future note, Long-term interest rates have increased between 25-30% in the past several months, and we are waiting to see how they will affect the market.

If you are contemplating selling a property that is newer or has been updated, in a great location, and has a great setting, now is the time to sell. Call Lee today at 941.587.0740.