March sales in Sarasota top 500 for first time since July 2007

For Immediate Release
Sarasota Association of Realtors®
April 22, 2008
For more information, contact Kathy Roberts, 941-328-1170

March sales in Sarasota top 500 for first time since July 2007
Pending sales highest in a year, indicating improving market for summer

Overall property sales in the local market for March 2008 topped 500 for the first time in eight months, according to statistics pulled from the Sarasota MLS system. There were 514 property sales reported in the Sarasota MLS, easily topping the February 2008 sales of 423.

There were 344 single family homes sold by SAR members in March 2008, along with 170 condominium units. This compares to 294 single family sales in February and 129 condominium sales, which means March saw an overall increase of 21.7 percent over February.

Single family homes saw a small decline in the median sale price, from $285,000 in February 2008 down to $266,750 in March 2008 – a 6.3 percent decline. But condominiums saw a small increase in the median sale price from $230,500 in February2008 to $235,000 in March 2008.

“Once again, the local Sarasota market is proving its resilience, even as the state and national housing market statistics continue to show weakness,” said Helen Sosso, 2008 SAR President. “It is remarkable how our local real estate practitioners are weathering this downturn, and proving once again the value of a professional Realtor® during difficult times. As we’ve been saying for more than a year, this is a prime buyer’s market, with historically low interest rates, moderating prices, and an incredible, high quality inventory of homes on the market.”

One of the continuing bright spots in the March 2008 report was the strength in pending sales, which stood at 674 – the highest level in the past year. In March 2007 pending sales were at 706. Pending sales have been edging upward since December 2007, when there were 374 pending sales.

Pending sales counts the number of signed contracts in a month, and is a leading indicator of sales activity. There is a direct correlation between pending sales and closed sales that are reported in the following month or two.Inventory levels were lower in March 2008 at 10,025 single family homes, compared to 10,596 in March 2007, and down slightly from February 2008, when there were 10,035. Condominium levels also decreased from the March 2007 level of 6,180 to 5,702 in March 2008, but up slightly from the February 2008 level of 5,588.

The days on market, which translates to the average time it took to sell a property, was at 152 days for single family homes, slightly higher than the 144 days in March 2007, but lower than the 160 days in February 2008. Average days on the market for condos was 181, a healthy drop from the 199 days reported in March 2007, and much lower than the 219 days in February 2008. The days on market reflects a quicker pace of sales, meaning the size of the current inventory should begin to decline going forward.

The local Sarasota-Bradenton MSA continued to fare better than the overall state. The MSA was down by 15 percent for single family home sales and 17 percent for condominiums, comparing March 2008 to March 2007. For the overall state, single family homes declined 26 percent comparing March 2008 to March 2007, and condominium sales were down 24 percent month to month.

In fact, the smaller Sarasota-Bradenton market again sold more overall properties than the Miami market. There were 1,022 overall sales reported for the local MSA, compared to only 609 in Miami.

The median sale price dropped by 18 percent for single family homes, and by 32 percent for condominiums in the MSA. This compares to 15 percent and 20 percent statewide in the two categories, respectively.

While some see the dark side of foreclosures, others see opportunity.

Excert from today’s Sarasota Herald Tribune:

Across Florida, there were 35,264 Florida properties in foreclosure during April, a 17 percent increase on a month-to-month basis and 146 percent year-over-year. Nationwide, the 243,353 properties were a 4 percent increase from the previous month and a nearly 65 percent increase from a year ago.

“Although only about 2 percent of households nationwide are in foreclosure, these properties contribute to already bloated inventories of homes for sale, and put downward pressure on home values,” said James J. Saccacio, RealtyTrac’s chief executive.

Nevada continued to hold the nation’s highest state foreclosure rate. One in every 146 Nevada households received a foreclosure filing in April, 3.6 times the national average.

California posted the second highest state rate at 1 in every 204 households, and Arizona third at 1 in every 224.

While some see the dark side of foreclosures, others see opportunity.

An agent with Michael Saunders & Co., had bank-owned listings that included a two-bedroom one-bath home on Baldwin Avenue in Sarasota listed for $114,000 and a luxury Siesta Key penthouse in The Pointe that was going for $437,000.

In both cases, the bank asked that the homes be priced at a point that allowed them to sell within 30 days.

Apparently, the agent struck the right prices. She received four full-price offers for the Siesta Key penthouse within one week, and the pending sale is set to close next month.

The starter home on Baldwin also found an interested buyer, who has made an offer and is waiting to hear back from the bank.

“There are some incredible buys out there for first-time home buyers,” she said. “These homes we’re seeing are the type of houses that would be perfect for them.”

John Schaub, a real estate author and Sarasota resident, is feeling buying opportunities in the market, saying that if he were a younger man, he would open his wallet.

“I’ve seen houses selling for $135,000 that are worth $180,000,” Schaub said. “There was three-two in Southgate on Jefferson Circle like that. It sold for $135,000 and there is no way that same house could be built in Southgate today for less than $200,000.”

Sarasota – 100 best places to live and launch

In today’s CNNMoney.com

90: Sarasota, Fla.
Population: 55,241
Pros: Great weather and cultural climate; strong retirement and tourism market
Con: Real estate downturn has hurt related small businesses

Retirees and the arts dominate this stretch of the Florida West Coast, known for fantastic sunsets over the Gulf of Mexico. As in much of Florida, the local economy has taken a big hit from the widespread real estate downturn. Small businesses related to construction or real-estate services are in the tank, although others in broader-based services such as health care and finance continue to do well.
An active SCORE chapter is helping small business owners weather the storm by providing contacts and advice on financing. What keeps hope alive is tourism, which is still running strong and drawing foreign visitors. Local amenities such as the Florida West Coast Symphony and the Sarasota Music Festival should help anchor a rebound when real estate bounces back. -Peter Galuszka

Sarasota Market Hits Highest Sales Figure Since June 2007

Sarasota Realtor Magazine reported that,”Home sales in the Sarasota MLS for April 2008 stood at 567, the highest level in 10 months, and approximately 72 percent higher than the sales January 2008. In 2008, sales have been progressively stronger month by month, possibly due to the influence of the new property tax portability law adopted in late January. Sales have climbed from 329 in January to 423 in February,then 514 in March.”

Inventory levels were lower in April 2008, which is a good indicator that a market is beginning to return to a more balanced state.The days on market are also dropping each month, and this reflects the pace of sales.

Housing and Economic Recovery Act of 2008 Goes Live.

Great News for Florida Real Estate!

The President signed the “Housing and Economic Recovery Act of 2008″  on July 30th, 2008 after passing both the House and Senate by wide margins. Here is what this legislation means.

1. Government Sponsored Enterprises (GSE) Reform. Permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,000.

2. FHA Reform. FHA loan limits of $271,050. or 115% of local area median home price, capped at $625,000. Streamlining of processing for FHA condos. Reforms to the HEMC program and reforms to the manufactured housing program. Down payment requirement for FHA loans will go up to 3.5% (from3%).

3. Tax Credit for Home Buyer. A $7,500 tax credit available to any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years which in essence makes it is an interest free loan.

4. Rescue from FHA Foreclosure. A refinance program for home buyers with problematic sub prime loans. Lenders would write down the qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30 year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. Loan limit for this program is $550,440 nationwide and the program is effective October 1, 2008.

5. Seller Funded Down payment Assistance Programs. Existing FHA proposal to prohibit the use of down payment programs funded by those who have a financial interest in the sale. Program will not prohibit other assistance programs provided by nonprofits funded by other sources such as churches, employers, or family members. The prohibition does not go into effect until October 1, 2008.

6. VA Loan Limits. The VA home loan guarantee program limits to the same level as the economic Stimulus limits through December 31, 2008.

7. Risk Based Pricing. A moratorium on the FHA for using risk based pricing for one year, effective from October 1, 2008 through September 30, 2009.

8. GSE Stabilization. Language proposed by the Treasury Department to authorize the Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

9. Mortgage Revenue Bond Authority. This program authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

10. National Affordable Housing Trust Fund. A Trust Fund that will be funded from a percentage of the profits from the GSEs. In the early years the Trust Fund will cover any costs from defaulted loans in the FHA foreclosure program. In later years, The Trust Fund will be used for the development of affordable housing.

11. CDBG Funding. $4 billion will be provide in neighborhood revitalization programs for communities to purchase foreclosed homes.

12. Low Income Housing Tax Credit. Modernize the program to make it more efficient.

13. Loan Originator Requirements. State run nationwide mortgage origination is strengthened in the licensing and registration system.

Biggars Complete GRI Certification in Real Estate in Sarasota Florida.

Kym and Helen Biggar have successfully completed their GRI (Graduate Realtor Institute) Certification in Real Estate. Cynthia Biggar received her GRI Certification in 2006 and now all three members of Biggar International Group, LLC, affiliated with Keller Williams, have their GRI.

A GRI Certification in Real Estate offers a client a more knowledgeable and professional representation. In the United States, 19% of all Realtors have a GRI Certification.

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Realtor conflict of interest: The Dept. of Justice vs. The National Association of Realtors. The R/E Maven

Realtors are supposed to have a fiduciary relationship with buyers or sellers of real estate. They are sworn to uphold this capacity and work in the best interest of either the buyer or the seller. That is to place the best interest of the buyer or seller first, above their best interest.

Interestingly, the National Association of Realtors (NAR) choose to fight the government long and hard to prevent other brokers from modernizing the sales system through some new marketing capabilities of the Internet.

The Multiple Listing Service was built upon the premise that Agents and brokers would cooperate and have equal access to sell one another’s inventory.

In the proposed settlement between the Dept. of Justice vs. The National Association of Realtors, President Richard Gaylord recently announced, “the settlement affirms the value of Multiple Listing Services as a tool of broker-to-broker cooperation.” But this is exactly one of the reasons why the Department of Justice (at the expense of the American public) had to file an antitrust lawsuit against the National Association of Realtors in the first place. The NAR was blocking the equal opportunity use of the MLS system by virtual office (Internet) brokers. They were not letting every broker use the tools Mr. Gaylord claims are of such value to share broker-to-broker.

Mr. Gaylord is taking credit for bring about the very change that he and the NAR were trying to stop and had to be forced to allow. It seems rather hypocritical to run an organization and system, that functions on member cooperation, to then only turn around and prevent this same cooperation. Then for the sake of public relations, the NAR claims victory over the government when it was the government that actually had to force them into this cooperation. And at a cost of how many thousands of dollars out of the taxpayers pockets for them to attempt to do business in a self-serving fashion.

Who’s kidding whom?

The national Association of Realtors took money away from the taxpayers of this country in order to protect their own pocketbooks and then, they want to look like the good guys when they loose the fight. This proposed settlement will bring about change to enable competition, perhaps resulting in lower commission rates and this is what the fight was truly over, the NAR wanted to keep commission rates higher. Not helping the consumers as Mr. Gaylord had the Audacity to announce. This is a conflict of interest. The National Association of Realtor’s interest above all others.

It is sad to see the MLS has become such a dinosaur but with this attitude it is small wonder why. They survive because they are the giant but so was Tyrannosaurus Rex. Instead of embracing the capabilities of the Internet they have once again spent years and the taxpayers money being greedy obstructionists to advancement. It seems they have been so bust fighting the inclusion of others that they lost sight in their own system.

Realtor conflict of interest; The National Association of Realtors should reimburse the American taxpayers. The R/E Maven

The proposed settlement between the Department of Justice and the National Association of Realtors of the antitrust suit includes the agreement that the National Association of Realtors will no longer block the ability of virtual office (Internet) brokers from the use of the Multiple Listing service.

This agreement certainly sounds like the government has proven the case against the National Association of Realtors and the National Association of Realtors has lost the fight.

The question is at what cost and who ultimately will pay these costs?

This settlement should include fines and or penalties that should as a minimum completely cover what ever it cost the government to prosecute this case. Nothing, absolutely not one dime should come out of the American taxpayers pockets to pay for any related expenses in this case.

The National Association of Realtors is an extremely wealthy organization and their motives for blocking the use of the Multiple Listing Service were done for purely selfish money driven reasons. They need to pay for their own greed.

The public voiced its opinion recently that Real Estate Agents were one of the most distrusted professions. It is small wonder they feel that way when the National Association of Realtors President Richard Gaylord attempt to deceive the public with his press release that the settlement is a victory for the public. It was never about the good of the public. It was always about the survival of his association.

Let him say what he will but I say it is only a victory if the National Association foots the entire bill!

Technology for the Real Estate Agent…….

1. Smart phone, Do your homework make sure the format has the tools you need.

2. A Website that offers your visitors can INTERACT with. Bring them infromation that they are not going to find anywhere else. Frame your site around other linked sites so it looks as if you are the one providing them that info.

3. High Definition Camera, customers want big highly defined pictures, you need to either find a photgrapher or become a good one. Think about what you are trying to pertray to the customers. Really is a bathroom pic a better choice then let’s say a picture of the nearby lake or park?

4. Actively become a part of your blogging community.

Let me know your thoughts and suggestions….

Seattle’s top neighborhoods??????

Seattle Magazine’s July addition released a rating of the “110 top Seattle Neighborhoods.” Rankings were  followed by characteristics of the areas: Median home price and % of change from 06 to 07(cant wait to see next years) , # of crimes per 1000, avg. # of bedrooms & baths, % of 4th graders passing WASL, Park acreage, Commute to downtown in minutes, Pop. est. and neighborhood characteristics. The rankings are also broken down into Seattle and Suburban areas.

Good stuff no doubt, but before you get upset with the ranking or a little over confident about your ranking. Lets start our own forum to discuss what really makes a great neighborhood and more improtantly what we can do to make our own a little better. It is called “Seattle Magazine,” for a reason, so bare that in mind.

Two of the top four rankings in the Seattle poll were Braodmoor and Windermere, median home price of $1,997,500 and $1,325,000 respectively. In the top ten of suburban neighborhoods were Mercer Island, Clyde Hill and Medina for and average median price of $1,550,416. Who said money can’t buy happiness?

So you ask, where does my slice of heaven rank? What makes you so fond of it or not? Would you recommend it to someone relocating to the area? What parameters would you use to rank one neighborhood over another?