Sarasota Florida, Beaches, Parks, Points of Interest and Yes, Real Estate Info too

Tag: Sarasota Page 1 of 6

Perspective on recent shifts in local real estate market

by Peter Crowley, President of RE/MAX Alliance Group

Peter Crowley, President RE/MAX Alliance Group
Peter Crowley, President RE/MAX Alliance Group

If you only paid attention to news headlines, you would be convinced that the real estate market is in a free fall. Citing sensational statistics like “Pending home sales crash 30%” or “Record number of price reductions” may lead one to think that home prices are falling and the pendulum has shifted into the hands of buyers. Not so fast …

It’s important to put these statistics into some perspective to understand what is really happening in our local real estate market throughout Southwest Florida (and most of the United States).

The onset of the pandemic ushered in an unanticipated boom for the real estate market throughout the country and magnified even more throughout Southwest Florida. Once the initial shock of lockdowns and a brief economic scare subsided, the stage was set for booming demand in our local market. An almost overnight shift in demographic trends with work from home options and accelerated retirement decisions created a surge in demand for Southwest Florida real estate.

Furthermore, in an effort to boost the economy, the Federal Reserve’s monetary policy contributed to record low interest rates which added buying power to this influx of buyers. The ensuing imbalance of supply and demand for homes and condominiums led to a strong seller’s market with larger than normal increases in the median price of real estate.

Fast forward to today and the real estate market has undoubtedly changed – spurred mostly by the increase in interest rates related to the inflationary environment that we are experiencing still today. This is where some perspective is important.

The most frequent measure of real estate activity is either month to month comparisons or year over year comparisons. If you accept that 2021 was the best real estate market that our local area (and most of the country) has ever experienced, it stands to reason that as the market starts to adjust back to normal, we will see some sizable percentage changes when comparing today’s activity to last year. These significant changes create eye-catching headlines – “Time on market is up 120%”. That seems like a meaningful jump, but when you consider that homes were on the market for an average of 10-14 days and now it is closer to 30-40 days, the change does not seem that outrageous. In fact, this time on market is still far below what is considered normal.

Most real estate professionals will agree that the last “normal” real estate market was in 2019, before the onset of the pandemic. If we start to frame comparisons based on the level of activity in 2019, things seem a bit less dramatic, and in fact, show that even with our recent market shift, we are still well ahead of 2019 activity.

With the abrupt change in interest rates from below 3% to around 5%, it felt as though the spigot was turning off. The frantic pace of activity with 20+ offers on an available property seemed to evaporate overnight. While closed sales have fallen in the neighborhood of 20% relative to 2021 (the most active real estate market on record), when compared to 2019, we are in fact almost 20% ahead of the level of “normal” activity from that time period.

Furthermore, in spite of the recent cooling of demand, we are still quite out of balance with supply and demand, which is why prices are not expected to go down, but rather moderate from 20-30% record appreciation, to a moderated level of appreciation. Gone are the days that a seller can name whatever price they want to sell with only the most favorable terms. Hence, price reductions are at record levels where sellers are coming back to the reality that a home must be competitively priced in order to sell.

While the absorption of listings has definitely slowed, which leads to an overall increase in listings, our local market is still experiencing a limited supply of listings. Our current level of listings is over 50% less than the number of listings in 2019. While we anticipate listings to continue to increase, there is a long way to go to reach a “balanced” market.

The level of activity and price appreciation the past few years was an anomaly created by a perfect storm of economic and demographic conditions. A return back to “normal” is healthy for our overall real estate market. Pundits seem to be clamoring for a crash like we experienced during the housing crisis of the Great Recession. Fortunately, the foundation of our local housing market is on much stronger footing with close to 50% of sales being paid in cash. The remaining financed buyers are doing so with stringent underwriting guidelines and significantly more down payments (“skin in the game”).

The country is experiencing a record level of equity in their homes and as a result, the anticipated flood of foreclosures has not materialized. With builders still struggling with supply chain challenges and increased prices, they are reluctant to grow their inventory of new homes. All of these factors will continue to limit the supply of available homes for sale and continue the imbalance between supply and demand for the near term.

Presented by
Larry Brzostek, CRS, CLHMS
Broker Associate
RE/MAX Alliance Group
Call or Text: 941-993-3125
Web: LarrySellsSarasota.com

10 Red Flags to look for when buying a home

10 Red Flags to look for when buying a home
10 Red Flags to look for when buying a home

10 Red Flags to look for when buying a home

Too Much Scent – Could be masking offensive odors.

Wonky Windows – Can signal issue with foundation or poorly installed. Pricy to fix /repair.

Poor Tiling – Bad DIY tiling can cost a lot to re-do.

Mold – Inspect bathroom and sinks for small black or gray spots.

Foundation issues – Tip Offs: Large gaps, sticking doors or windows, cracks, uneven floors.

Water Damage – Musty odor is an indicator. Check walls & ceilings for waterlines.

Poor Maintenance – Can indicate seller ignored other ongoing issues.

Cosmetic Updates – Could have been added to hide deal breakers.

Nearby water – Higher chance of flooding.

Bad Ventilation – Allows moisture to stick around, creating mold.

Source: Realtor.com – Courtesy of Residential Real Estate Council

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Top 6 Appliances to Upgrade Before Selling Your Home

Appliances to Upgrade Before Selling
Appliances to Upgrade Before Selling

Top 6 Appliances to Upgrade Before Selling your Home

50% of homeowners surveyed said they would upgrade their current appliances before selling to increase their home’s value. Homeowners believe that replacing their appliances would increase the value of their homes by nearly $14k.

Top 6 appliances to upgrade before selling:

  1. Air conditioner
  2. Dishwasher
  3. Water heater
  4. Oven
  5. Washing machine
  6. Refrigerator

Source: Realtor® Magazine, Cinch Home Services

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

5 Hidden Costs of Homebuying

Ready to Buy?
Top expenses to factor into your purchase.

Infograph
5 Hidden Costs of Homebuying

HIDDEN COSTS OF HOME BUYING

44% OF HOME BUYERS report they weren’t aware of all the costs associated with buying a home.
Top expenses that new home buyers sometimes forget to factor in:

CLOSING COSTS
These range between 2% to 5% of the loan amount. The national average is about $6,000.

HOME INSPECTIONS
These typically run from $300 to upward of $600 depending on the location and size of the home.

TITLE INSURANCE
The average cost of title insurance is around $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home.

POTENTIAL RENOVATIONS
A 2017 survey found that new homeowners spent
an average of $10,601 on furniture, appliances, and home repairs — in the first year.

MOVING COSTS
The national average cost of moving is about $1,400 with a range from $800 to $2,150. (That’s for a two-person moving team completing a local move of less than 100 miles. The average cost of a long-distance move: between $2,200 and $5,700.)

SOURCES: Realtor.com, Forbes, National Association of Home builders

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Home Showing Checklist

You decided to sell your home and the time has come to open you home to potential buyers.
Whether it’s an open house or a individual showing appointments, below is a list of to-do’s you can complete to display your home in the best possible light.

Home Showing Checklist
  • Complete a deep clean of the home, including the floors, baseboards, windows, appliances, bathrooms, counters and more.
  • Set the temperature to a comfortable level depending on the season and weather.
  • Open all curtains and blinds to let in light.
  • Air out the house and ensure there are no lingering odors.
  • Bake fresh bread or cookies 20-30 minutes before the showing or open house.
  • Rearrange furniture to improve foot traffic and flow throughout the house, if necessary.
  • Sweep and power wash your driveway, walkways, and lanai.
  • Mow the lawn, trim hedges and trees, pull weeds and rake leaves.
  • Simplify decor and keep it natural.
  • Declutter bedrooms, living room, kitchen and bathrooms to help rooms look larger.
  • Remove about half the items, like photos, kid’s drawings, notes and mementos from around the house.
  • Add colorful throws or pillows to furniture to brighten up a room.
  • Lock up or entirely remove any private effects or valuables.
  • Check for leaks under all sinks and repair.
  • Remove personal toiletries and hang fresh hand towels in all bathrooms.
  • Close all toiles lids.
  • Arrange for pets to be out of the house.

Download PDF Version of this Checklist

Source: Courtesy of Breakthrough Broker

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Sarasota Real Estate Update | February 2021

Sarasota County Real Estate Market Update
January 2021

Sarasota Real Estate Stats January 2021

Sarasota County Real Estate Market Update
January 2021

Homes SOLD 651
Median Sale Price $465,000
Average Days on Market – 20
Available Inventory .5 months

Decorative
Sarasota Real Estate Market Update

The number of active listings was down 57% from one year earlier and down 22% from the previous month.

This smaller inventory means that buyers that waited to buy may have had a smaller selection of homes to choose from.

The median listing price for the month was just under $600,000.

Compared to last year the average number of days units spent on the market before being sold was down 58%.

This lower number of days may signal a positive trend in the local inventory turnover rate.

The median sale price was just over $465,000.

The number of units sold decreased 2% year over year and decreased 23% month over month.

Fewer sales could indicate an opportunity for buyers to negotiate better terms.

Thanks for watching. I hope you found this video helpful as you gather more information to make smart informed real estate decisions if you’d like more information or assistance please Call or Text me @ 941-993-3125

Larry Brzostek Broker/Associate
Information courtesy of RE/MAX Alliance Group – Sarasota, FL

414 N Lime Ave, Sarasota, FL

Investment Opportunity

  • 414 N Lime Ave
  • 414 N Lime Ave, Sarasota 1.91 Acres
  • 414 N Lime Ave
https://vimeo.com/677856364
Aerial Views of 414 Lime Ave

MLS# A4523552 | Offered @ $3,250,000 | 1.91 acres (83,220 Sq Ft) of land just east of downtown Sarasota – Downtown Edge Zoning (DTE), approved for 47 residential units with commercial on the ground level. Located only 1 block north of Fruitville Road this land has frontage on 3 streets – Lime, Aspinwall, & Shade.

For more info Call or Text Larry @ 941-993-3125

Larry Brzostek, CRS, CLHMS, Broker Associate
RE/MAX Alliance Group, Sarasota FL

What’s in store this year (2022) in residential real estate?

by Peter Crowley, President of RE/MAX Alliance Group

Peter Crowley, President RE/MAX Alliance Group
Peter Crowley, President RE/MAX Alliance Group

With the new year upon us, the question I often get is “Will this hot real estate market continue in 2022?” As I have mentioned in earlier articles, I am no longer confident in predicting much past the end of the month with the constant state of flux our world seems to be in these days. Everyone seems eager to call an end to the wild ride that our local (and in most parts, national) real estate market has experienced. As you will see below, I think most of the same economic factors driving our real estate market will continue for the foreseeable future.

The main driver of our residential real estate market has been a combination of surging demand from buyers and a dwindling supply of available homes for sale. This simple supply and demand imbalance has led to double digit price increases throughout our local market and in fact, most of the nation. In order for a significant change in the real estate market, there needs to be a substantial change in either the demand for homes or significant increase in the supply of available homes for sale.

On the supply side of the equation, there seems to be little hope for any meaningful increase in the number of available homes for sale. Whether it is the resale market or the new homes market, it doesn’t appear that anything will move the needle for an improved supply of homes. The same labor constraints and supply chain disruptions that have contributed to the challenge for builders to deliver on time and on budget seem to remain a factor for the foreseeable future. There was some indication that the removal of the COVID-related foreclosure moratorium would lead to a surge of resale homes. While the number of foreclosures has certainly increased, it is nowhere close to the level that would be needed to balance supply with demand.

Turning to the demand side of the equation, the crystal ball gets a bit murkier. With double digit price increases coupled with unprecedented inflation in almost every aspect of the economy, eroding affordability has to have an impact on the demand for homes to some degree. In a “normal” market this would absolutely be the case, but our local market seems to defy these odds driven by an insatiable demand for our beautiful area coupled with scores of buyers fleeing more restrictive COVID-related states for the more relaxed Florida communities.

Another important factor that typically would dampen buyer demand is a rise in interest rates. With the recent announcement from the Federal Reserve committing to multiple increases of the federal funds rate, the common corollary to this will be an inevitable increase in interest rates on all loans, including home loans. An increase in the interest rate coupled with price increases will price many buyers out of the market. So there it is … the answer we needed to balance the housing market! Not so fast … our local real estate market comprises almost 50% cash buyers – much higher than most markets around the country. This large amount of cash buyers will soften any impact of a rising interest rate environment – at least in the near term. There is some speculation that a rising interest rate environment (or even the threat of one) will spur reluctant sellers to finally put their home on the market to avoid further erosion in their purchasing power for their replacement home. So far, this has not materialized and we are still dealing with a dearth of available homes on the market.

Our local housing market is a huge driver of overall economic activity throughout our area. While some of the headwinds (i.e. affordability and interest rates) may cool the market a bit (high single digit appreciation vs double digit appreciation), the fundamentals of the housing market remain strong and appear to be on solid footing for the months ahead. Larger macroeconomic policies (inflation, money supply, currency valuation) will undoubtedly play a part in the housing market in the years to come, but for now let’s savor the prospect of a healthy 2022!

Peter Crowley is the president of Re/Max Alliance Group.

We would like to thank our guest author Peter Crowley
Larry and Ann Brzostek

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Tips for Pet Owners Selling Their Home

Infograph
Tips for Pet Owners Selling Their Homes

When selling your home, Fido shouldn’t be seen … or smelled. Here are the top recommendations Realtors® make to pet-owning clients putting their house on the market (in order of most-suggested):

  1. Take animal out of home for showings (78%)
  2. Replacing anything damaged by pet (72%)
  3. Cleaning home to remove animal scent (70%)
  4. Having home professionally cleaned (61%)
  5. Removal of pet objects (47%)
  6. Replacing carpet or finishing floors (33%)

SOURCE: National Association of Realtors® report “Animal House: Pets in the Home Buying and Selling Process” (April 2020)

I hope this information keeps you informed and I thank Florida Realtors for allowing us to share this.

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Sarasota Real Estate Update | January 2021

Let’s take a look at residential real estate
activity in your area during the month of December.

Sarasota Real Estate Stats for December 2021

Sarasota County Real Estate Market Update
December 2021

Homes SOLD 836
Median Sale Price $436,000
Average Days on Market – 20
Available Inventory .6 months

Sarasota Real Estate Market Update
Sarasota Real Estate Market Update (videos updated monthly)

The number of active listings was down 61% from one year earlier and down 24% from the previous month.

This smaller inventory means that buyers that waited to buy may have had a smaller selection of homes to choose from.

The median listing price for the month was just under $600,000.

Compared to last year the average number of days units spent on the market before being sold was down 61%.

This lower number of days may signal a positive trend in the local inventory turnover rate.

The median sale price was just under $440,000.

The number of units sold decreased 20% year over year and held steady month over month.

Fewer sales could indicate an opportunity for buyers to negotiate better terms.

Thanks for watching. I hope you found this video helpful as you gather more information to make smart informed real estate decisions if you’d like more information or assistance please Call or Text me @ 941-993-3125

Larry Brzostek Broker/Associate
Information courtesy of RE/MAX Alliance Group – Sarasota, FL

Page 1 of 6

Powered by WordPress & Theme by Anders Norén

The owner of this website has made a commitment to accessibility and inclusion, please report any problems that you encounter using the contact form on this website. This site uses the WP ADA Compliance Check plugin to enhance accessibility.