Although waiting a few years to sell a home will likely mean a higher sales price, the cost of a bigger new home will increase as well, according to an analysis by Redfin. Financially, it makes more sense to capture today’s relatively low prices on the more expensive home.

Additionally, interest rates are still near record lows, but they’ll almost certainly rise over time, which means a higher monthly mortgage payment. In the next 12 months, the Mortgage Bankers Association expects rates to rise to 4.4 percent. Over a longer period, they are likely to be even higher, considering a 20-year U.S. average mortgage rate of about 6.5 percent.

The rationale for moving up now is fairly simple. A $100,000 home that appreciates 10 percent in one year would net a home seller an additional $10,000. But if that owner hopes to move into a home worth $200,000, the increased cost of the home one year from now, at the same 10 percent, would be $20,000 more.

So if you are interested in selling or buying, please give us a call @941.866.1666.

The post Analysis: Move-up buyers shouldn’t wait appeared first on Sea to Sky Realty . Bradenton Real Estate, Anna Maria Real Estate.

In 2003, sales in our market hit 9,697, followed by 11,267 in 2004 (the current all-time high) and 10,562 in 2005. The annual sales dropped to 6,358 in 2006 and bottomed out at 5,820 in 2008 before beginning the steady climb to the current level.

SAR members sold 828 properties in December 2012, representing an 8.3 percent increase from November’s 764 sales and a huge 28 percent increase over last December’s figure of 644 total sales.

The category totals in December were 606 single family homes and 222 condos sold, compared to last December when only 471 single family and 173 condos were sold. The available inventory remains near the lowest level in a decade. Other positive factors helping to propel the real estate market recovery include the low mortgage interest rates and improvement in the national and local economies.

“The Sarasota housing market has clearly weathered the storm of the Great Recession,” said SAR President Roger Piro. “We are so fortunate to live in this area – a beautiful coastal community with every attractive amenity imaginable.”

Looking forward, Piro noted the normal peak period of the buying season has yet to come.

“Our market is enjoying an amazing resurgence, and the traditional busy season still has several months to go. Last year, our strongest sales months were in March, April and May,” said Piro. “We’re all hoping for a repeat performance in 2013, and agents are continuing to report steady, strong foot traffic at open houses and multiple offers on many properties.”

The median sale prices for both single family homes and condos also rose for the full year 2012 to $175,000 in both property categories, another indicator of the ongoing real estate market recovery in Sarasota. In 2011, the full year median prices were at $155,925 for single family homes and $156,600 for condos, or roughly 13 percent lower.

The median sale price for single family homes in December 2012 was at $189,500 – almost 9 percent higher than November’s figure of $174,450 and 18 percent higher than last December’s total of $160,000. Condo median sale prices were also up, hitting $182,500 in December. Last December condo prices were at $150,000 – 21.6 percent below the current level.

The available inventory of homes on the market remained near the decade low, rising slightly to 3,657 from last month’s 3,543. The level is still 25 percent below December 2011, when the inventory was at 4,567 properties for sale.

Pending sales (which represent properties that went under contract during the month) dropped in December 2012 to 782 from the November 2012 figure of 905. The total was almost identical to last December, when there were 783 pending sales reported.

The months of inventory remained near 10-year lows. The December figures were 3.9 months of inventory for single family homes and 5.9 months for condos. Months of inventory represents the time it would take to deplete the current inventory at the current sales rate. Last December, there were 6.3 months of inventory for single family homes and 9.2 months of inventory for condos. At the worst point of our market in November 2008, there were 24 months of inventory for single family homes and 41.7 months for condos.

Currently, only 475 properties for sale in the MLS are listed as short sales or foreclosures, almost identical to last month’s figure. This represents about 12.9 percent of available properties, down from last month’s figure of 13.2 percent and down from the start of the year when the figure represented 17 percent of the market.

Distressed sales represented 32 percent of the overall market in December 2012, down significantly from the 51 percent figure experienced in the fourth quarter of 2010. While still at historically high levels, the downward trend has been encouraging.

In 2007, foreclosures and short sales had been virtually unheard of for many years in the Sarasota market. That’s when distressed sales began to skyrocket in the Sarasota market and across the nation, reaching epidemic rates in 2010, before improving markedly in the last 24 months.

From 2007 to 2008, short sales and sales of foreclosed properties jumped markedly, from less than 1 percent in 2007 (only 47 total) to 18 percent (979) in 2008, while traditional market sales dropped by an equivalent 18 percent. This rise in distressed sales and decrease in market sales continued through 2009 and 2010.

In 2011, the Sarasota real estate market began to see a reversal of this trend. Distressed sales dropped by 4.5 percent from 2010 to 2011, while market sales rose by 19 percent. From 2011 to 2012, this positive trend accelerated, with distressed sales dropping by 7 percent while normal market sales rose by 25 percent. If these trends continue, we should see improved health of the local real estate market in 2013 and beyond.

Interested in buying or selling? Contact us at 941.866.1666 or use the contact form below.

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To attract vacationers who prefer homes to hotel rooms, homeowners can work with a vacation rental agency. Vacationers are coming from up north as well as other countries, like Canada, European Countries or South America. Since the rental agency handles the property, it is turned over and cleaned in between renters while homeowners can collect their income.

Homeowners can potentially make more extra income in a shorter period of time if they rent their home out during peak seasons, which in Florida is January through April. During off season months weekly rentals are the most profitable way to rent a home.

Cleanliness and amenities – modern kitchen and bathrooms, king-sized beds, wireless Internet access, tiles or hardwood floors and a private or community pool are the key factor in getting your home rented.

Some tips to prepare your home for vacation guests:

• De-personalize the home and remove clutter and personal items.
• Ensure the home has up to date home electronics and Wi-Fi internet access.
• Stock the kitchen with the appropriate tools and cookware; stock bedrooms with an extra set of linens and towels.
• Prepare an instruction sheet for home electronics, garbage pick up dates and provide information about local restaurants and attractions.

Of course you will get the best return on your investment if a home can be rented out during the peak season. To really reap the rewards in this business, ideally you would want to buy an investment property and turn it over to a property manager.

If you are interested in renting out your second home to vacationers or buy an investment property, please contact us @ 941.866.1666 or use the contact form below.

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Academic experts took a closer look at cash buyers and how time-on-market impacts home sales during the “Changing Dynamics of Recent Home Buyers and Sellers” session at the 2012 Realtors® Conference and Expo. Funding for the research was provided by the Realtor University Center for Real Estate Studies.

“We’ve seen a tremendous increase in cash buyers since the housing downturn that we haven’t seen before in history,” said Lawrence Yun, chief economist of the National Association of Realtors (NAR). Yun said a decade ago, cash home purchases were less than 10 percent of the market, but they’ve increased steadily since 2008 – up to 30 percent of sales.

Yun said the increase in cash buyers results from tight lending conditions and an increase in investor sales, which make up the bulk of cash purchases. Increases in the number of international buyers, who often have financing difficulties when purchasing a home in the U.S., are also adding to the cash sale rise; 62 percent of international purchases were all cash, a percentage that has increased since 2007.

Recent NAR research may offer insight into how cash buyers receive funds for home purchases. According the 2012 NAR Home Buyers and Sellers Profile, 40 percent of repeat buyers use proceeds from the sale of their primary residence as a source of down payment, but downsizing boomers may have enough equity left from their home sale to pay all cash for their next purchase. Yun also noted that one in 10 buyers rely on proceeds from the sale of stocks or 401K disbursements for down payments. Those with stable jobs and who had investment gains in recent years may use those cash funds to buy a home outright rather than financing the purchase.

Dr. Grant Ian Thrall, president of the American Real Estate Society, agreed that cash sales have increased dramatically in recent years. Thrall spoke at the session and conducted an in-depth market analysis to gain greater insights into cash buyers.

“Research shows a bias toward cash sales for newer and lower priced homes,” Thrall said. “Many of those sales are occurring within the first 60 days that the home is on the market, and more than half sold within the first 120 days.”

Thomas Springer, professor of Finance and Real Estate at Clemson University, discussed how time-on-market responds to employment changes, and shifting market and economic conditions. Springer analyzed market data from more than two dozen metro areas. His findings indicate that time-on-market is a function of property characteristics, price and market factors for a specific home; however, at market level, time-on-market for an area is a function of local, national and global economic and market factors.

Yun said that tightened inventory conditions also impact time-on-market, which has steadily decreased nationally since the start of the year.

“Tightened inventories in some places mean homes are selling more quickly and reducing time-on-market,” Yun said. “Our research shows that last year, homebuyers saw 10 homes before buying, down from 12 the year before. And more than half of buyers reported that finding the right home was the hardest part of the home search process.”

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With 864 closed sales transactions in June 2012, the Sarasota real estate market achieved the highest level of quarterly sales in seven years, with 2,604 sales from April through June. The 864 closed transactions in June was also the second highest total since September 2005, yet another indication of a market that is achieving sales totals not seen since the 2003-2005 real estate surge.

The totals for June were 603 single family homes and 261 condominiums, for the combined 864 closed transactions. Sales were 18.7 percent higher than in June 2011, when there were 728 closed transactions. The June sales almost reached the April 2012 figure of 886, which was the highest total in seven years. The normal seasonal influx of buyers tends to drop shortly after the Easter holiday, but this year the higher sales appear to be continuing into the summer.

However, pending sales (which represent properties that went under contract during the month) did decrease in June, dropping to 860 after four straight months that topped 1,000. Pending sales are a major indicator of the future market sales totals. Last year the pending sales also retreated, from 841 in May to 754 in June, and this meant the spring surge finally did slow down in July. The current numbers seem to indicate there remains strength in the market dynamics through the middle of the summer.

“I’ve been observing this market for some time, and the enthusiasm of local agents hasn’t dropped a bit,” said SAR President Laura Benson. “Sarasota is clearly the place to be if you work in the real estate industry. Agents I’ve spoken to are very, very busy trying to keep up as the buyers explore our market for the best deals.”

The median sale price for both categories remained near the highest levels of the year in June. The median sales price for single family homes dropped slightly to $178,500 from last month’s figure of $185,000, and higher than the 12-month running median of $167,000. The median sales price for condos was $195,000 – up from last month’s figure of $180,750, and still much higher than the 12-month running median prices of $165,000.

Single family home prices remained at a level more than 30 percent higher than the low of the market reached 15 months ago ($137,500), while condo prices are over 50 percent higher than the low point ($127,000). Part of the reason for the price resurgence remains likely related to the lower number of distressed property sales. The total number of distressed sales, foreclosures and short sales, remained around 31 percent, the lowest level in three years.

For the second quarter of 2012, distressed property sales dropped to 32.4 percent from the first quarter’s level of 36.2 percent. The quarterly numbers show a market recovering from the low point in the third quarter of 2010, when distressed sales represented 51 percent of the total.

In addition, the disparity between the median sale prices of distressed properties versus normal market sales has remained fairly steady for the past two years (eight quarters). Non-distressed properties are selling at almost three-times the price of foreclosures, and almost double the price of short sales. In the most recent quarter, the median price of foreclosed single family homes was $93,000, while the median of non-distressed homes was $235,000. Condos are showing a similar ratio – $83,000 for foreclosures, versus $240,000 for normal market sales.

The available inventory of homes on the market once again dropped to a new decade low of 3,816 from last month’s figure of 3,917. High sales and low inventory has also dropped the months of inventory to new 10-year lows. The June figures are 4.1 months of inventory for single family homes and 5.2 months inventory for condos – almost identical to May’s figures – 4.3 months and 5.2 months, respectively. Months of inventory represents the time it would take to deplete the current inventory at the current sales rate. Last June, there were 5.9 months of inventory for single family homes and 8.2 months of inventory for condos. At the market’s low point in November 2008, there were 24 months of inventory for single family homes and 41.7 months for condos.

“Economics 101 teaches that supply and demand rule a market,” said Benson. “As the available properties continue to drop, and competition for them remains high, we would naturally expect asking prices to rise, and that’s what we’ve witnessed. The only things holding back this market at the present time are the higher level of distressed properties, which weighs down on overall prices, and tight credit policies, which limit the number of qualified purchasers.”

Currently, only 604 properties for sale in the MLS are listed as short sales or foreclosures, up slightly from last month’s figure of 576 properties. This represents about 16 percent of available properties, slightly higher than last month, and down from January 2012 when the figure was 17 percent of the market.

“We have been wading into a seller’s market for a few months now, with the months of inventory below 6 months,” said Benson. “It will be interesting to see how the next few months unfold in our market. We’ve had remarkable numbers even with the economy still in relative doldrums, and other tensions in the U.S. and the world. We’re usually fairly insulated here in Sarasota because of our tremendous assets – wonderful weather, beautiful beaches and golf courses, and our great cultural climate. I don’t see anything stopping this market.”

Are you in the market to buy or sell?

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Bradenton-Sarasota was the 40th most searched real estate market in the country in June, according to data released Tuesday by Realtor.com

Median list prices for homes in Sarasota-Bradenton hit $249,900 in June, a 6.38 percent increase from one year ago according to the data. The national median list price in June was $195,000, a 2.68 percent increase compared to June 2011.

Active for sale inventory of homes in Sarasota-Bradenton in June leveled out at 6,894, a 22.35 percent decrease compared to June 2011. National inventory counts for June 2012 were 1,886,690, a 19.35 percent decrease as compared to a year ago.   The median age of inventory in Sarasota-Bradenton in June was 102 days, a 2 percent increase compared to May 2012. Nationally, the median age of inventory was 84 days, a 1.20 percent increase compared to May.

Are you in the market to buy?

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Many cash buyers from Europe are investing in areas where they can rent out their homes and condos for a gain. This leaves out many communities with tight rental restrictions.

Florida Accounts for 26% of International Sales

Consistent with this trend, Florida remains by far the top state in the nation for international buyers. The just-released National Association of Realtors 2012 Profi le of International Home Buying Activity shows Florida accounts for 26 percent of all foreign home purchases in the U.S. California ranks second with only 11 percent of international sales followed by Arizona and Texas (7 percent) and New York and Georgia (4 percent).

International buyers continue to view the U.S. as a desirable place to own property and make a profitable investment. The 6-year slide in U.S. home prices has spurred what many outside the United States view as an opportune time to make a smart investment. Total residential international sales in the U.S. for the past year ending March 2012 equaled $82.4 billion, up from $66.4 billion in 2011.

Interested in buying or selling Real Estate in Florida?

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Short sales – which occur when a lender agrees to a home sale for less than what’s owed – were up 33 percent in January year-over-year, and preliminary February numbers also look strong, according to market researcher RealtyTrac.

Its data underscore lenders’ increased willingness to do short sales, which tend to harm neighborhoods less than foreclosures. Homeowners also may regain eligibility for a new mortgage sooner than those who go through foreclosure.

More short sales “is mostly a good thing,” says Ira Rheingold, of the National Association of Consumer Advocates. One concern is that homeowners may have to short sell after being denied loan modifications that would have enabled them to stay in homes, he says.

RealtyTrac says foreclosure sales, which occur after a bank has repossessed a property, still outnumber short sales nationwide but the gap is closing.

Earlier this week, Bloomberg News reported that data from mortgage tracker Lender Processing Services show short sales surpassed foreclosures in January for the first time.

RealtyTrac’s data show that occurred in key states at the forefront of the housing downturn, including California, Arizona, Florida and nine others.

Lenders are pricing short sales more aggressively, RealtyTrac adds. In January, the average short sale price was 10 percent lower than a year earlier, exceeding the drop in U.S. home prices.

Some mortgage servicers started pursuing short sales more aggressively months ago. Bank of America says it did 107,000 short sales last year, up from 92,000 in 2010 and double the 2009 volume.
New measures are also likely to boost short sales.

Freddie Mac and Fannie Mae, which own or guarantee 60 percent of home loans, will soon require lenders to decide short sale offers within 60 days. Realtors have complained that short sale offers often linger. The recent $25 billion mortgage settlement also encourages short sales.

New rules have slowed foreclosures in many states, increasing short sales, says Florida foreclosure defense attorney Roy Oppenheim.

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According to the National Association of Realtors® (NAR) 2011 Profile of International Buying Activity, Florida and Arizona are top choices because of their favorable winter climate. In fact, 58 percent of all international sales in 2011 came from just four states: Florida at 31 percent, followed by California at a distant 12 percent, Texas accounted for nine percent and Arizona at six percent.

Even for international buyers it’s location, location, location. Forty-three percent of those surveyed report a favorable location the most important factor when choosing where to purchase. That was followed by 27 percent who stated their top reason to buy in the U.S. was that they view U.S. real estate as a profitable investment.

Canadians specifically purchase due to a perceived positive return on their investment. They also showed a strong desire for a lakefront recreational location. In fact, eight percent of Florida re-sales were to Canadians in 2010. Similar culture, closeness to their native homeland and lack of a communication barrier are also factors steering Canadians to the lower 48 U.S. states.

The NAR profile also showed that in the 12-month-period ending March of 2011, Canadians accounted for 23 percent of all foreign buyers – the largest of any country. In a 2010 article, Canada’s largest daily newspaper The Globe and Mail reported that a vast majority of Canadians were paying cash for their purchase.

With international buyers so integral to our market, make sure to list your property with a true international Real Estate Company to achieve the best result. If you are interested in selling contact us to take advantage of our international connections.

The post Fla. ranked first in 2011 home sales to Canada appeared first on Sea to Sky Realty . Bradenton Real Estate, Anna Maria Real Estate.

“Pending home sales in Sarasota and Manatee opened the year on a surge, an indication the area is poised for a robust spring season.

Recent inventory reductions also have helped slowly restore prices across Southwest Florida.

Manatee Realtors sold 257 existing single-family homes in January, a 28 percent drop from December and a modest 3 percent slide from the same time last year, according to the association.

The number of properties under contract, however, climbed to their highest level during the past 12 months to reach 543 in January. That includes a 53 percent spike from December alone.

Median prices in Manatee also rebounded to $165,000, a 6 percent jump from a year ago. The median is the midpoint; half the homes sold for more, half for less.

In Sarasota, the housing market closely followed that same trend.

The county’s 365 existing single-family homes sold last month fell drastically from the 471 reported in December. January’s total also represents a 5 percent dip from last year, records show.

But like Manatee, total pending sales increased 38 percent during the month, a sign activity will gain strength through spring   generally the busiest time of the year for out-of-state buyers.

Median prices in Sarasota also rose 17 percent over the year to reach $162,000 in January, according to the Manatee Association of Realtors.

For the first time in January, the state association stopped tracking local market trends, which will leave inconsistencies compared to previous housing market reports.

“To see that dip in January is to be expected, but the strength in the pending numbers is really encouraging,” said Peter Crowley, broker and co-owner of the Re/Max Alliance Group in Bradenton. “These numbers tell us we can anticipate a similar pace to last year, if not better.”

Although reports of mortgage defaults and looming threats of foreclosure remain escalated   an indicator often referred to as shadow inventory   the proliferation of short sales has helped clog the steady stream of foreclosures flooding the market over the last three years.

As those bank-owned inventories shrink, prices will build, slowly opening the door to the more traditional buyer-to-seller transactions, experts say.

Most Realtors expect that progress to continue through year, but stop well short of the artificial values from 2004 to 2006, which likely will never return.

Recent national recognition has helped. The Sarasota-Bradenton market was ranked No. 5 this month on CNBC’s top 10 turnaround towns.

“Potential buyers have been hearing a lot of positives about the market, and now they’re willing to step in and do something,” said Marcus Vanzant, owner-broker of Marcus & Co. Realty in Bradenton.

In Florida, 12,044 existing-single family homes changed hands in January, down 7 percent from the previous month and 6 percent compared to the year-ago figure, according to data released Friday by Florida Realtors.

The median sales price climbed 5.3 percent from last year to $129,000.

Across the country, sales of previously occupied homes rose in January to the highest pace since May 2010, with a seasonally adjusted annual rate of 4.57 million in January, according to the National Association of Realtors.

The national median existing-home price for all housing types was $154,700 last month, down 2 percent from January 2011.

“The recent improvement is a definite sign 2012 promises to be a strong year,” NAR spokesman Walter Molony said. “With that will be a strong stabilization of prices and maybe some modest increases.””

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