In today’s video I am standing in front of Harbor Acres, the location of our newest listing and the neighborhood of West of Trail with the highest price sale on Sarasota’s mainland in 2013. I want to talk about property prices in Sarasota during 2013 and why, if you are contemplating selling your property, I believe there may be diminishing returns by waiting until the Spring of 2014 to list.
There is a lot of buzz in the press about price appreciation in parts of Sarasota. In reviewing the pricing in one of our premier areas and one of the mainland’s most desirable – the West of the Trail neighborhood – I took a close look at homes that were purchased in the last four years and sold again in 2013.
Hot Properties Equal Hot Pricing. For Now
It is clear prices have increased, however, for most of the sales the house had significant updates from the time of the previous sale. To me this indicates buyers are willing to pay higher prices from a short time ago, but not for the exact same house.
They want to see money spent and improvements on the property in order to justify the higher price. This is not a market where you can simply sit on a property and expect it to rise with the market to create profit. As I’ve written about before, this is a shrewd market.
Old and Shabby with Prices to Match
To prove the point, in this same neighborhood, for the properties purchased in 2011 that were really outdated at that time, had no subsequent improvements, and were resold this year, all of them saw price depreciation.
Going forward I believe we’re going to experience more moderate appreciation and some price stabilization in these hot neighborhoods as a new pricing floor is established. As this happens real estate buyers and sellers will re-calibrate with higher interest rates and continue to choose between a stock market that is cooling and real estate.
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European Squeeze Ahead What Does that Mean for Prices?
Our global buyers have indicated that in the next several months the now favorable Euro will depreciate against the Dollar, reducing the buying power of one of Florida’s biggest real estate consumers in recent years.
So if you are contemplating selling, I believe there may be diminishing returns to waiting beyond the spring of 2014. Everything indicates the appreciation rates are going to start slowing down. If you want to sell, now’s a good time to jump: 941.587.0740.
