Sarasota Real Estate - How Close is the Bottom?
Whether it be real estate, stocks, commodities or any other investment, everyone always wants to buy at the absolute bottom of the price cycle. The problem is no one can tell you precisely when this bottom will occur. Even state-of-the-art computer programs using sophisticated modeling formulas can at best only predict when a bottom "should" occur based on past data and not when it "will" actually occur. In addition, when the consensus is that a bottom has been reached, it will be too late to take financial advantage of it. A bottom will only be called after a few months (or more) of upward price movement. So once it is known with certainty, it is obviously too late to benefit as price appreciation will have already occurred.
The question potential home buyers should be asking is not: "Is this the absolute bottom?" The question should be: "Is this a good time to buy?" Specifically, "Is this a good time to buy Sarasota real estate?" The answer is ABSOLUTELY YES!
The chart above shows the median sale price of homes in Sarasota, as reported by the Sarasota Association of Realtors, from January of 2007 to March of 2011. Note how a base has been forming around the $150,000 price line since January of 2009. I appears that the majority of the price decline occurred in 2007 and 2008. The price decline in 2009 & 2010 has been minimal compared to the prior two years. In addition, the single family inventory for March was at a record low of 3,486 (6 months inv.) and the pending sales were at a record high of 889. These two factors alone will add to the price stability if not cause the beginning of an upward price movement. Can this be guaranteed? NO, but it sure is looking pretty good.
The chart above shows the median sale price of condos in Sarasota, as reported by the Sarasota Association of Realtors, from January of 2007 to March of 2011. As you can see, the price decline for condos has been steadier than for single family homes during the same time period. A small base can be seen forming from July of 2010 through March of 2011. Also for condos, March saw a record low inventory of 2,015 (9.2 months inv) and record pending sales of 319. Again, the numbers point to a slowdown in price erosion if not the possible beginning of price appreciation.
- Chasing the absolute bottom of any market is not only pointless but also impossible.
- Is this a good time to buy Sarasota real estate? ABSOLUTELY YES!
Why Buy Now?
- The charts show a slowdown in price decline, bases forming and possible upward movement.
- Inventories are at record lows and pending sales are at record highs.
- Home prices are still at 2000-2001 levels.
- Interest rates are still at historically low levels. For those financing their homes, this should be reason enough to buy now before the rates go up and their dream home becomes unaffordable.
- The best properties are currently being purchased by astute buyers who recognize good buys.
- Once a bottom is called, everyone will jump in and the good properties will be gone.
Please Provide Comments & Feedback!
- Please add your comments at the bottom & let me know what you think!
Don't miss this once-in-a-lifetime opprotunity to buy Sarasota Real Estate at 2000-2001 price levels and finance with historically low interest rates. If I can help you or any of your friends buy or sell a home in Sarasota, please call me at 941-928-8892. Also, please feel free to use my website www.SarasotaAreaRealEstate.com as a resource to search for homes in the area.