July 2009 sales were only slightly lower than the 610 sales in June 2009, when overall sales rose above the 600 level for only the second time in 26 months. The statistics all continue to point to a market in the initial stages of recovery.

Inventory levels continued to decline. There were 4,067 single family homes for sale at the end of July, down from 4,477 at the end of June. Condos experienced a similar decline, to 2,447 from 2,587. Inventory is now at its lowest point in more than 5 years.

The number of months of inventory – the time it would theoretically take to sell all the current properties on the market – now stands at 9.04 for single family and 16.9 months for condos. This is in stark contrast to last year at this time, when the figures were 26.2 months for single family homes and 35.4 months for condominiums. The trend is downward toward the figure of 6 months, which indicates a market in balance (anything below 6 months indicates a return to a seller’s market).

Prices have also returned to more realistic, sustainable levels, with the median sale price for single family homes at $185,000 in July 2009, compared to $190,000 in June and $250,000 a year ago. The median sale price for condos was $212,000 in July, compared to $250,000 the previous month and $252,500 a year ago.

Pending sales also remained at very high levels, with 802 properties going under contract in July 2009. Pending sales have dropped off slightly from the 929 reported in May 2009 and the near record 981 pending sales reported in April 2009. But the total of 802 was still 37 percent higher than the 584 pending sales reported in July 2008. Pending sales have now exceeded the 500 level for the 19th consecutive month, and the 800 level for the fifth straight month. Generally, pendings trend downward during the summer months, the slower sales season in our market.

The statistic is a strong indicator for the next two or three months of sales, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers during the month.

“Our local market is maintaining an encouraging level of sales volume and lower inventories,” said 2009 SAR President Bill Geller. “As we enter the traditionally slower season, we can expect some drop off in activity. But we still have the first-time home buyer tax credit of $8,000 on the table, and that expires on Nov. 30, 2009. We strongly encourage local Realtors® to keep their clients informed about this and get them started in the real estate buying process in order to close the sales prior to the expiration date.”

Geller noted that as the national economy appears to be emerging from recession, according to most leading economists and the Federal Reserve Board, the local real estate market appears to be a leader in the recovery process.

“I’m very optimistic about our local real estate market, because we’ve always emerged strongly from down times in the past,” explained Geller. “We have it all here – great weather, beautiful beaches and green spaces, amazing cultural amenities, and an incredible selection of homes and condos. There are very few places in the nation that have all that we have to offer.”

The median price of all single family homes sold in the last 12 months was $172,000, compared to a median of $260,000 for the 12 months ending in August 2008. For condominiums sold in the last 12 months, the median sales price was $212,010, compared to last year’s figure of $332,000. *

*A 12-month rolling median price is not as susceptible to the volatility that can occur within any particular month, which sometimes results in drastic statistical swings up or down from one month to the next.

The Second Lien Program will reach 1 to 1.5 Million Homeowners to reduce loan interest, pay for success incentives and a payment schedule for extinquishing second mortgages.

The Support for Homeowners Program includes making the home affordable by requiring servicers to refinace in tandem with MHA trial modification, pay for success incentives, more principal writedowns, legislation to help homesowners, and U.S. Treasury purchase of special Ginnie Mae Pools to provide liquidity.

Both of these programs need to pass the U.S. House of Representatives and the U.S. Senate.

One of our instructors, Steve David, a thirty-five year veteran with a wealth of knowledge in the Florida market from Fort Lauderdale, Florida stated that his studies indicated a 3% growth rate in real estate appreciation on the East Coast of Florida. He stated that the large amount of inventory and pace of sales on the East Coast were the contributing factors to this projection.

Sarasota with a population of under 60,000 has always had a 6% to 7% annual real estate appreciation during past years, except during the real estate boom, because of all the amenities, charm, beaches, social life, restaurants, boating, golf, tennis and arts available in this delightful gulf coast oasis.

Sarasota is a better investment going forward and now is the time to buy when the real estate market offers excellent opportunities to purchase your gulf coast oasis.