A steady drop in property inventory for sale, combined with a stable, sales demand in the Venice/Englewood real estate market, is pointing toward normal, healthy property appreciation in the coming months. An analysis of sales, prices and inventory figures reflects a market in recovery, led by a declining pool of available properties on the market. The inventory of available properties for sale has been dropping for the past nine months, and hit another decade-low figure of 2,451 in August 2011. Sales during the past 10 months have averaged about 400 every month, and exceeded over 500 two times. As a likely result of consumer demand and dropping inventory, the median sale price for single family homes and condos has recovered from the lows reached in January 2011, when both categories showed a median price of $132,000. The latest monthly figures in August showed a median price of $152,000 for both single family homes and condos – a 15.2 percent improvement from the lows of only seven months ago.
No one has a crystal ball, and it wouldn’t be wise for anyone to make a solid prediction on the future of our market. But we can clearly see the normal market forces of supply and demand as Venice/Englewood is becoming a seller’s market, in which price appreciation would be expected.
With only a quarter of the properties on the market compared to four years ago, competition for properties has been dramatically increased, and agents are now fielding multiple bids on many properties. The months of inventory dropped slightly to 7.3 months from last month’s figure of 7.6.4 months. This statistic represents the time it would take to sell the existing inventory at the current month’s rate of sales. The 6 month level is traditionally a point which represents equilibrium in the market between buyers and sellers. For properties priced under $350,000, most price ranges are indicating a seller’s market has returned. This is in marked contrast to three years ago, when a buyer’s market was in full force. In August 2011, pending sales were 395 up compared to July 2011 at 321. “We are coming out of the usually slower summer sales months with a much improved, healthier real estate market,” said Michael Bruno Sarasota MLS President. “The fall should prove to be steady and strong. The only thing continuing to hold back our market from even bigger numbers is the percentage of distressed sales, which is still higher than we’d like to see.” The overall percentage of distressed sales (foreclosures and short sales) dropped slightly in August 2011 to 17.33 percent from the 18.17 percent figure in July 2011. That compares to a 12 month high in December 2010 of 22.72 percent. “The non-distressed properties are still selling for two or three times more than the short sales and foreclosures,” explained Bruno. “This is a huge difference, and naturally pulls down the overall median sale price. But everyone remains hopeful that the distressed inventory, which now represents less than 20 percent of the total available properties, will start to drop rapidly in the coming months.
Helping buyers and sellers since 2004. A Venice/Englewood Florida resident for almost 40 years, put my local real estate knowledge to work for you today. My coverage areas include Southwest Florida include Venice, South Venice, North Venice, Nokomis, Osprey, Casey Key, Manasota Key, Englewood, Rotonda West, South Gulf Cove, Grove City, Placida, Cape Haze, Port Charlotte & North Port which are located in Sarasota and Charlotte Counties
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