A Surprising Third Quarter for America, and the Sarasota Real Estate Market

This past month I participated in conferences in Monte Carlo, Monaco and Munich, Germany where two key concepts were reinforced. One, that the US economy needs foreign direct investment. And two, while investors outside the US don’t always understand or agree with US policies, they do see the US as a favorable investment. Despite what you read in the paper, global institutions still consider US real estate a safe long term bet, especially for those looking for a hedge against inflation.

Please watch my video below to learn how the market has performed this quarter, and what is surprising about the numbers:

Here are our Takeaways From the 3rd Quarter of 2013

• Despite this being typically the softest quarter of the year, sales during the 3rd quarter of 2013 outperformed the 1st quarter for the first time in 3 years. I feel that this is significant since for Sarasota real estate sales and visitors are typically slowest during this period. Sales are up 18% from the same period a year ago.
• Luxury market sales are a strong 50% above the same quarter last year.
• In the 3rd quarter of 2012, 1 of every 3 properties sold was distressed. In the 3rd quarter of 2013, just 1 in every 5 properties sold was distressed, which indicates stability in this sector and the market overall.
• Prices are going up overall. We are seeing a greater percentage of sales in the $200,000-$500,000 segment because prices are appreciating over the $200,000 barrier. And finally, I am beginning to see a slight increase in inventory levels, which should provide more choices for buyers and creates a greater balance of power between buyers and sellers.

Whether it’s fear of being priced out of the market, or of interest rates going up, buyers fueled a surge in 3rd quarter sales activity that we have not seen in the past three years.
Any questions? Call me at 941.587.0740.