Home Sales Nationally and in Sarasota Were Very Strong in December, 2010

Posted January 26, 2011

    Nationally, the poor year for home sales finally ended December on a much more positive note as buyers snapped up homes at a seasonally adjusted annual rate of 5.28 million units, an increase of 12.8% from November and the strongest sales pace since last May.

    Home sales were up in all parts of the country with the strongest gain a 16.7% in the West. Sales rose 13% in the Northeast, 10.1% in the South and 11% in the Midwest.

    Here in the Sarasota real estate market, home sales saw a huge surge in December from 534 in November to 681 last month, an almost 28% increase.

    For December, nationally, the inventory of unsold homes nationally stood at an 8.1 months supply, down from 9.5 months supply in November. The inventory of unsold homes represents the number of months it would take to sell the remaining supply of homes on the market at the December sales pace. A normal inventory supply is six months.

    In Sarasota the median sales price for both single family homes and condos was up in December 2010, indicating a recovering local real estate market. Sarasota area home sales in December 2010 included 500 single-family homes and 181 condos. Pending sales, home sales under contract but not yet closed, also remained strong in December at 789, compared to 764 in November. The median sale price of a single-family home stood at $165,000, down slightly from December of 2009 but higher than the November 2010 figure of $160,100. Condo prices also rose slightly to a median price of $160,000.

    “2010 ended with a resurgent local real estate market and the higher number of pending sales tells me we could see continued strength in early 2011,” said Sarasota Association of Realtors President, Michael Bruno. “For the second half of 2010, there was a fairly steady trend in sales and prices, another sign of recovery .... we are seeing more showings and more closings than we have in quite a while." This is particularly good news in that the Federal home buyer tax credit program is no longer in existence boosting home sales. Sarasota is proving once again to just be a very desirable place to own a home.

    The inventory of unsold single-family homes in the Sarasota - Bradenton real estate market dropped in December to 6,047 from 6,207 or down to 7.8 months of inventory down from 10.9 months in November of 2010. Unsold condos similarly dropped to 11.7 months of inventory in December from 13.3 months in November. The market is considered to be in equilibrium when the unsold inventory of homes is at 6.0 months.

    Mr. Bruno noted that, "The improving national economic picture and recent drop in the national unemployment rate are signs that the economy is heading in the right direction.”

    Home and condo sales in the Sarasota real estate market have now risen for two consecutive years and is now at its highest rate since 2005.

    Combining the rising interest in purchasing real estate here in Sarasota with the fact that the average rate on a 30-year fixed-rate mortgage, even after a recent increase, is still at 4.74%. Fifteen year fixed rate mortgages remain below 4%. All this is an indication of better times coming, but those "good times" may not last for long as interest rates are expected to start climbing again soon.

    This would be a great time to contact a local Realtor here in Sarasota like Brian Ward an Accredited Buyer Representative and get started finding that perfect seasonal, or full-time home you've been dreaming of for so long.

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    For a permanent home, vacation getaway or an investment property, the Sarasota real estate market, with its recent price correction, is hard to beat.  I invite you to request my free Sarasota Real Estate Package. For a more immediate response, call me directly at 941-228-2321.