Yes things are getting better in general, but what’s happening with downtown Sarasota condos?
My last post hailed the fact that existing home sales are up an astounding 10% nationally, but all real estate is very localized. People want to know what’s happening in my town, my neighborhood, even my street or condo!!
Here are some facts for the zip code 34236 which includes condos on Lido along with the downtown area:
1. There are still about 400 condos on the market. This number has not changed appreciably for most of 2009.
2. There are 63 pending sales. This is up almost 250% from a year ago but 60% of them are “short sales or bank owned” meaning they may never close. Many have been in pending status for several months which has swollen this category out of proportion. If one assumes that only 20% of those pending short sales will eventually close, then the real number of pending sales is more in line with the current sales volume.
3. Sales for the last 3 months have averaged 22.3 per month. 19% of those sales are either bank owned or short sales. This means we still have about 18 months of inventory on hand and most economists believe that a 6 month supply represents a healthy, balanced market. It also shows that the sellers in this market must compete with the bank owned and short sales head to head…these cheap “under priced” comps are no longer an anomaly that the seller or potential seller can dismiss.
A year ago it was very difficult to say what some of these properties were worth because there hadn’t been enough recent sales to justify ANY offer. Now, at least, there have been sales and buyers are feeling more comfortable to make offers in line with those sales.
In the final analysis, I do think we are building a base here at the end of 2009 and prices will SLOWLY move upward from here. The best inventory is getting picked up and prices have been stabilizing. My co-workers and I are seeing an increase in activity with showings and offers and October/November is usually a very quiet time of year!
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