Longboat Key Real Estate Market Update - Single Family Homes
Posted by Scott Norris on Thu, Jun 24, 2010 @ 07:36 AM
Longboat Key Market Summary
Distressed Property Summary
Recap
Inventory levels of Longboat Key homes are down 9% over the same month last year (end of May) while sales units for the 12 months ended May 2010 are up 16% over the same 12 months in the previous year. Listings added to the market also declined (6%) during the 12 months ended in May 2010 compared to the the previous 12 month period. All of these are very positive signs that the market is tightening.
On the negative side, we still have 21 months of inventory on hand based on the past 12 months of sales. In other words, if we continue to sell at a pace of 91 homes per year, it would take 21 months to liquidate the 157 homes we have in inventory. While 21 months is an improvement over our position last year (which was 26 months), it is still very high and means that buyers will, in general, continue to have the upper hand in negotiations.
Also alarming is the average length of time on market for sold listings. This statistic has increased 40 days since last year. I believe that this is a function of sellers holding out longer on price than any fall off in demand (as evidenced by the increase in unit sales).
Finally, the median sales price and price per square foot stats are falling. These changes are minor and difficult to interpret. I could mean that prices are falling or it could mean that buyers are just focusing on lower priced homes.
Another huge positive for all of Longboat Key real estate is the insignificant role that distressed property (foreclosures and short sales) play in the market. Across all Sarasota real estate, distressed property sales make up about 45% of the sales. On Longboat Key, distressed property sales are just 11% of all sales over the past 12 months and distressed inventory levels are just 8% of total inventory.