What is my Sign to Buy? Indicators from the 2010 Sarasota Real Estate Market and the Transitional Start to 2011

I see 2011 as a transition year for real estate in Sarasota. I meet a lot of buyers in the market via my open houses in Sarasota. This gives me great insight into the needs and wants of today’s buyers: three bedrooms, a garage space, and the ability to have dogs, to name a few.

There are Keen Buyers in the Sarasota Real Estate Market

First, there are a lot of buyers. I’ve found, in the past, that people attending open houses tended to be more in an exploratory mode. Lately, I am meeting many individuals who are genuinely earnest about purchasing in the immediate future. In other words: the market has some very active and engaged buyers.

I believe more than 90% of the people coming to open houses really do think they want to buy within the year. However, most of today’s buyers have the ability to purchase now, they’re just waiting for a sign that the time is right. They may be hesitating because they just don’t know what that sign is.

To help people clarify, I’ve summarized the main signs we got from the Sarasota market this past year, and give my predictions of what those signs mean for 2011.

What Happened in the Sarasota Real Estate Market in 2010?

1. In 2010 Sarasota was a recovering market, and in all, the year was a good one for Sarasota real estate. The number of properties sold was up 8%, from 2009 to roughly 8,925. I believe that a level of around 9,000 properties is a good target for 2011. This number is a healthy 50% higher than the average volume from each year between 2006-2008.
2. The raw number of distressed sales shrunk, and continues to do so, and discounts on distressed inventory are also decreasing. Distressed sales are down 10% from Q3 to Q4 in 2010 but still made up more than 40% of sales in the 4th quarter.
3. While local employment numbers remained steady, between 87.5 and 89%, the overall health of the community seems palpable. Municipal projects are getting done, including parks, parking garages, and beautification projects. And people are attending events in healthy numbers.
4. The number of sales for Sarasota investment properties listed over $1 million edged up slightly during the 4th quarter of 2010 and the percentage of sales under $200,000 went down slightly. During the 4th quarter, 66% of the market was under $200,000 and 91% of the market are sales of $500,000 or less.

What this means for 2011 in the Sarasota Real Estate Market

In my opinion, good values will stay with us for a while as the market stabilizes this year. The market for properties over $1 million is experiencing inventory growth and offers some opportunities for those at this tier of the buyer’s market. But, there is still some great value to be achieved in the rest of the market too, even though the best opportunities may be behind us.

Again, buyers I meet have lots of information. The majority believe it is a really good time to make a purchase. Many are just waiting for a sign to determine when they actually make the leap. Now, in this transitioning market, I agree with them that it’s a good time to become a buyer.

Like the stock market, there are numerous opinions on the real estate market. I think, while there will continue to be volatility here in Sarasota, closings in 2011 will be around the 2010 number of 9000. I also believe, more importantly for many, this next purchase decision is a lifestyle choice and those that move forward this year will be glad they did.

Any question? Call me at 941.587.0740.