Despite Mortgage Crunch, Sarasota Builders Keep Right On Builidng

Posted June 27, 2007

    In a recent Wall Street Journal newspaper, it was noted that apparently private investors don't mind the risk, and buyers continue to want to own a piece of the Sarasota real estate market even though the mortgage market keeps gets thinner and thinner.

    The current subprime lending market debacle is scary with projections of over a $ trillion in losses from mortgage defaults.  But, it is pointed out that inspite of the subprime market weakness, the fundamentals of the Sarasota real estate market are still relatively strong, including favorable interest-rates, employment and income growth, and, thanks to price reductions and sales incentives offered by local builders, the new home market in Sarasota is realtively healthy.

    Thinner demand across the overall housing market in the United States caused by more limited mortgage availability due to tougher lending standards may strain the profitability of some builders of new homes.  Some estimate from 5% - 15% reductions in overall new home demand.  As a result, in Sarasota, some new home builders may have to go up-market from the markets they now serve to find buyers with the required financial assets to qualify.   But Sarasota Florida has one great advantage over other real estate markets. One of those old real estate proverbs, "location, location, location" works to local builders' advantage.  People by the thousands want to live in the Sarasota Florida real estate market with its climate as well as its many cultural and recreational amenities.  And to do that, they'll need homes built.  Its that simple.

      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 or call me directly at 941-228-2321 or toll-free at my Sarasota RE/MAX Office at 800-966-2334.