Sarasota Market Looking Stable, Strong
Recent analysis of the real estate market in Sarasota and vicinity (right) indicates a significant shift that now favors prospective buyers, reports Re/Max agent Gary Brey of the Sarasota Group. There number of properties currently listed for sale in Sarasota and surrounding areas has increased greatly, tripling from on year ago. The existing inventory reflects a decrease in demand.
Rather than an apocalyptic collapse, what we are seeing is a flattening of the market. Buyers do not need to worry about the depreciation of their purchase, as values are still expected to rise over the long term. They can, however, expect to see a more normal appreciation level — something between 8 and 12 percent per year, which is still substantial. Expecting the 20 and 30 percent gains of the past five years to continue is just not realistic.
To reflect this condition, asking prices are now being reduced. Sellers can expect to wait longer for their properties to be purchased, rather than fielding multiple competing offers immediately. A buyer is particularly likely to lower his/her asking price if he/she is in a hurry to sell. In other words, they will have to accept a more modest gain. They are not going to lose money by selling their homes in Florida, but gains will be much more conservative.
There are also signs less investor money will be funneled into the market in the coming years. This is due in part to new construction developers trying to control the market by placing buyer/investor limits and restrictions on purchases. Investor money seems to be turning back to the stock market as the U.S. economy continues to flourish and Florida real estate, while still stable, appears to have stabilized somewhat.
STILL A GOOD OPTION FOR BUYERS
In the last three years the local market has adjusted. Sarasota property was undervalued when compared to areas such as Naples, Miami and Boca Raton, and continues to lag behind despite the gap being narrowed.
Thus, the Sarasota area remains very attractive price-wise and continues to be a viable alternative to the more expensive areas in the state. One factor which will continue to drive the Sarasota real estate market is the millions of Baby Boomers retiring in the next 10 years. Florida continues to be the number one retirement destination in the county.
Also this week, Florida home loan rates finally dropped off a bit. This is the first time in many weeks that rates have fallen across the board, representing more good news for buyers. If you are looking to buy a home in Southwest Florida, conditions are turning in your favor. Better start doing your research!
