June 2013 Inventory Drops to New Record Low
The following report is from the Sarasota Association of Realtors as published on July 15, 2013.
Posted by Sara Leicht - SaraSellsSarasota.com onThe inventory of available homes in the Sarasota market fell to only 3,114 in June 2013 – the lowest level in longer than a decade, and an 18 percent drop from last year at this time. Declining inventory generally results in greater competition for available homes and condos and subsequent price escalation.
SALES
Members of the Sarasota Association of Realtors® sold 883 properties in June 2013, a drop from the May 2013 figure of 1,020 which represented an eight-year high, but up 2 percent over June of last year.
The Sarasota real estate market tallied 642 single family homes and 241 condominiums in June 2013, compared to June 2012 totals of 603 single family homes and 261 condos sold in June 2012. For the first half of 2013, sales are up 13.8 percent over last year at this time. If the current trend continues, 2013 will go down as the second highest sales year in the 90-year history of SAR, surpassed only by 2004’s record figure of 11,267 closed transactions.
PENDING SALES
Pending sales stood at 1,024 in June 2013 – the sixth consecutive month that pendings have topped 1,000, an historic first for SAR. The previous record string was five – also accomplished this year. In May 2013 there were 1,157 pendings reported, and last June there were 911 pendings. Pending sales have now topped 1,000 every month this year. This important statistic represents properties that went under contract during the month, and indicates sales in July and beyond could also be at near record high levels.
MEDIAN PRICES
Median sales prices moderated in June 2013. The figure for single family homes was $200,000, down from the May figure of $220,000 but still 12 percent higher than last June’s figure of $178,500. For condos, the median was $192,500, slightly below May’s figure of $194,250 and below last June’s figure of $195,000.
“For the past two summers, we have not experienced the
typical lull in sales we had been seeing for several years,” said
SAR President Roger Piro. “We are still seeing a strong surge
in the spring, but there seems to be a second season for the
buyers that typically relocate in the summer and prepare for
school in the fall. These buyers tend to be more families,
rather than retirees or investors.”
AVAILABLE INVENTORY
The available inventory hit yet another new decade low in June, dropping to 3,114 from May’s figure of 3,297. The inventory is down almost 18 percent since June 2012, when it stood at 3,816.
The June 2013 months of inventory stood at 3.2 months for single family and 4.3 months for condos, with both property categories very near the lowest level in the past decade (achieved last month – 3.0 and 3.9, respectively).
Months of inventory represents the time it would take to deplete the current inventory at the current sales rate. Last June there were 4.1 months of inventory for single family homes and 5.2 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.
DISTRESSED SALES
Currently, 379 properties listed for sale in the MLS are short sales or foreclosures, up from last month’s figure of 333. This represents 12.2 percent of available properties, up from last month’s figure of 10.2 percent. Sales of distressed properties represented about 23 percent of the overall sales in June 2013, almost identical to the May figure, but much lower than the 51 percent figure experienced in the fourth quarter of 2010.
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