As Charles Dickens wrote so famously in 1859, “It was the best of times it was the worst of times”. And for all businesses and markets globally, 2009 was truly a year of mixed messages. There were some positive parts and some extremely negative ones, of course. So, after a turbulent 2009 for Sarasota realtors and the community, what lies ahead for 2010?
Who do you listen to?
Speculation is rife among Sarasota realtors, there are so many mixed messages out there you can believe anything depending on the person you last spoke to, or as I wrote in my previous article, depending on what day you watch TV.
Recently I read in the paper the recession is over. Great, I thought, life will get better tomorrow. A few days later I read unemployment is set to rise, not so good. But a few days later the news 64% of companies are going to pay a bonus this year: great again.
More than ever it’s time for self-reliance, to reach inside and rely on the information you have that is concrete, rather than reacting to the fluctuating messages around you. Here’s my personal take on the last year, and what the future holds in store:
Know your Business, know your Market, and know yourself.
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I am ebullient about the future, about the prospects and possibilities. 2009 has been a really good year and I plan that 2010 will be even better this is why:
My company is built on understanding the Sarasota real estate market and the product. I’m a self-employed Sarasota realtor and this year I’m reinvesting my money in my business and the people who work for me. In times of external uncertainty, there is no greater strength to have than inner knowledge of yourself, your people, and your business.
What happened in 2009 in the Sarasota Real Estate Market?
There were 7,919 properties sold in 2009 in Sarasota County, about the same number as in 2000 and about 19.2% up on the three-year average.
I think that’s pretty healthy. What’s more important to me than the number of properties sold is that the activity level on Sarasota property is palpable. Properties for sale in Sarasota that had been on the market for months or years are beginning to sell, people are moving in, turning on lights, shopping locally, and joining communities.
The future for the Sarasota Real Estate Market
There’s a lot of mediocre housing inventory in the Sarasota listings. Those prices will continue to decline and at the same time Sarasota property valued over $1 million is selling. There is no lack of buyers for Sarasota investment property.
There are three key factors driving the Sarasota property market at the moment which are really positive:
Government money
The US government has extended the $8,000 first-time home buyer tax credit and added a second credit for repeat buyers. For many this goes a long way towards the extra costs such as insurance, appraisals, etc. that are involved in buying a home.
Value
The second factor driving consumer decisions is VALUE. Sarasota property is now often selling at prices more consistent with six years ago, which means buyers are getting great historic value.
Other properties in today’s market offer the perception of getting a lot for your money, which is another type of value. Today’s buyers are not paying a premium even for the best properties; they are, however, not buying the better properties at clearance sale pricing either.
Available Mortgage Products
There are FHA (Federal Housing Administration) programs that aim to help provide all US citizens with housing and are very healthy. We’ve seen buyers purchasing homes with as little as a 3% down payment. On a $150,000 home, a buyer may only have to come up with $4,500 cash (and they still may be eligible for one of the tax credits).
At the same time, the cost of money right now is similar to the 1940s when the government was trying to stimulate home ownership after WWII. Borrowing money at or below 5%, when you are able to buy homes at prices from many years earlier, is good value.
The future’s bright for Sarasota Investment property
For those who are going through troubling financial times, the road ahead may be longer than they want and for those doing okay Sarasota investment property offers great value and security on their money.
Sarasota is a beautiful place, with a great environment, marine life, and arts scene. It’s a wonderful place to live and raise kids. I am very positive on Sarasota as a community and therefore my outlook on the real estate market is partly sunny with fewer clouds in the not so distant future.
Call with any real estate questions: 941.587.0740.
