The Sarasota real estate market in July 2009 was substantially healthier than last year at this time, with total unit sales up 29 percent to 595, and the months of home supply on the market once again dropping to levels not seen in three years. There were 450 single family and 145 condos sold in July, compared to 331 and 130 last July.
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.
RISMEDIA, September, 2009-Most homes waste energy which costs homeowners plenty of money, but a new report in the latest issue of Consumer Reports lays out four strategies that together can cut energy bills by $1,500. The story examines ways homeowners can take their home’s energy efficiency to the next level through more-efficient product upgrades and additions as well as simple, low-cost and even no-cost upgrades and actions.
“Some of the simplest projects, such as adding insulation, sealing cracks and ductwork, can yield the biggest savings,” said Bob Markovich, home and yard editor of Consumer Reports. “But, according to our recent nationally representative survey, of more than 2,000 Americans, only 12% added or upgraded their home’s insulation in the past three years and just 5% had insulated their heating and cooling ductwork- quick fixes that save you money for years to come.”
Consumer Reports examined four key categories- heating and cooling, water, recycling, and electricity- and ordered them by potential money and energy savings based on national rates for electricity, gas, and water.
Heating & Cooling: Annual Savings $550- Approximately 40% of residential energy bills are for space heating and cooling- this is also the area homeowners can save the most. To eliminate leaks, use a combination of caulk, foam board, expandable sealant, and weather stripping. Check insulation levels; if the attic has less than 11 inches of fiberglass or rock wool or less than 8 inches of cellulose, you should probably add more. Compressed insulation loses its effectiveness, so don’t store anything on top of it. Sealing ductwork is the most frequently overlooked step. Spending $500 to seal leaky or poorly insulated ducts that run through crawl spaces, attics, or other areas that aren’t heated or cooled can save about $400 per year. A programmable thermostat is worth every penny. Automatically lowering the heating-system 5 to 10 degrees at night and during the day when no one is home can shave up to 20% off your heating costs.
Water Consumption: Annual Savings More Than $400- Almost four in five states anticipate water shortages by 2013, which could lead to steeper rates and penalties for excessive water use. Stopping drips is the fastest way to conserve, saving the average household $70 a year. Upgrade to water-efficient fixtures- low-flow showerheads can save as much as $265 per year on water bills and low-flow toilets can save $90. Also, watch the water heater; lower the temperature to 120 F and insulate hot-water pipes.
Electricity Use: Annual Savings $300- Electricity accounts for almost 40% of the average home’s energy use, but there are ways to cut back without sacrificing. By changing 10 bulbs and replacing three major appliances with energy-efficient models, hundreds per year can be saved. According to Consumer Reports’ survey, nearly two-thirds of respondents have replaced an incandescent light bulb with a compact fluorescent light bulb. Also, 34% of appliance owners have upgraded to an energy-efficient model. That number is likely to rise nationwide as states begin distributing rebates, expected later this year, that could reach $200 for each Energy Star appliance as part of the Obama Administration’s economic stimulus bill.
Recycling: Dollar Savings $250- Recycling saves the least money, but generated some of the highest results in the survey, with two-thirds of respondents recycling paper and plastic and over half recycling metal and glass. RecycleBank lets people put all of their recyclables in one container instead of separating them by type then it weighs the container and issues rewards or points redeemable at local retailers- the average households get $250 worth. “Pay As You Throw” programs, now in more than 7,000 communities, treat trash like a utility, charging homeowners for garbage they throw out. Don’t forget to redeem bottles; millions of dollars are unclaimed every year. Consumer Reports found that the most common reason for not recycling printer ink cartridges, furniture, and small appliances was that people didn’t think an item could be recycled, but just about everything can.
For more information, visit www.consumerreports.org.
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