Shortage of houses for sale (Sarasota, Venice: bank owned, appointed, real estate market)

[lucky300]

I have been looking at buying a house in the Sarasota/Lakewood Ranch/Parrish areas and have noticed in the last month or so that a lot of the houses we wished to see when we come down on Memorial Day Weekend have been sold. However, there doesn't seem to be many new listings coming on the market especially in the price range we are looking at (200,000-300,000). Is this a bad time of year for the real estate market in Florida or is it just a low inventory this year? In the Philadelphia area where I live this is the time of year all the houses come on the market. I'm very disappointed at the lack of inventory and now wonder if we will find what we are looking for this year. Anyone know if the market inventory will be picking up? Thanks.

[gypsychic]

I'm no realtor, but it seems inventory is extremely low here, especially in that price range. We live in an older neighborhood called Whitfield Estates and I am really shocked at how almost everything here has been sold this past year, including expensive homes and/or a few empty lots that were on the market for YEARS! There are three new homes going up on those lots that had sat empty for eons. Seems this is the case all over the area.

It's hard to say what will happen, but I am sure some of our realtors will chime in on what they see or predict. Good luck to you!

[Sunshine Rules]

The inventory of single family homes for sale thru the MLS has remained near a 10 year low.

There are a number of factors at play that are influencing the inventory, including:

Strong sales -- The latest stats from the Sarasota Board of Realtors shows inventory of single family homes for sale the 1st quarter of 2013 is 18% lower than the first quarter of 2012. Sales for March 2013 were at the highest level since August of 2005, and pending sales are at the highest level in the past 7 years. As of March 2013 the inventory of single family homes was down to a 3.8 month supply and for condos the inventory was down to a 4.7 month supply. At the worst point in our real estate "bust" the MLS stats showed a 24 month supply of single family homes and, get this, a 41.7 month supply of condos.

Foreclosures are slowly shrinking -- Foreclosure rates have been slowly but steadily falling, as are the number of people falling behind on their payments. Short sales and REOs (bank owned) listings made up about 1/2 of the inventory of properties for sale at one point in 2010, the number of distress properties for sale has been dropping since that peak. They now make up about 30% of the local sales. Banks are also changing their strategies regarding their REO properties, they no longer "dump" listings on the market at bargain prices, they are releasing them into the market at a slower pace to maximize profits.

Many homeowners who may want to sell are still hesitant to sell -- homeowners who bought when prices were higher but are not underwater on mortgages or bought with cash have been waiting years for prices to pick up again. Unless they experience a life changing event that forces them to sell, most in this category of homeowners will stay put until home prices reach a price point that they feel comfortable with.

Investors -- both local and national (ie real estate investment trusts) are snapping up homes in our area in large numbers. These investors are not the "fix and flip" investors, this group of investors is buying up homes, renting them out and holding on to them for resale at a time into the future, possible years from now. This is taking 100 or more homes each month out of the local market.


Last but not least, we are heading into the summer months, and summer months in our part of FL traditionally are the slower sales months. Many homeowners who can wait do not want to sell and move in July or August, which is very hot, humid and usually has daily afternoon showers, with a tropical storm thrown in now and then that dumps 10 or more inches of rain in a couple of days. So they won't put their homes on the market now, they will wait until fall. In SW Florida our main real estate season starts in late October and runs until Easter, with January - March being the big months for sales.

[Californianz]

We just moved here but started looking 6 months ago (but different price range). Things have changed a lot since even just that short time ago - regardless of prices. Less inventory and in some cases, higher prices. Some sellers are digging in now. The real "deals" are no more, and as noted - the tourists who buy vacation property have gone home - so the place is getting boarded up until late fall.

$200-300K could get you into something in a new development, but the down sides are many -
Overpriced - Horrible HOA/Maintenance Fees - HOA Rules Nazis - Tiny, Cramped Lots
In some cases, the "new" neighborhoods turn sour quickly and become ugly.
In some places, the traffic is insane and the services are far away in land locked parking lots that take tons of extra time to get in and out of.

[ArmyChief]

Do you have to love on Sarasota proper?

[lucky300]

We are looking in the following areas.

Lakewood Ranch area (by that I mean all the developments in the general vicinity such as Barrington Ridge, Mote Ranch, etc.
Parrish area
And now thinking of looking in the Venice area but during our upcoming trip I don't think we will be looking in the Venice area at specific houses.

We have a list of approximately 10 houses in the Parrish/Lakewood Ranch area that we hope to see when we visit over Memorial Day weekend.

We wanted to buy now to take advantage of the lower housing prices but if we don't find what we want we may just have to wait until we actually retire, in 3 years, and not worry that housing prices have gone up since we will have sold our present home.

However we would really like to buy now if possible.

Thanks for your input everyone.

[bbronston]

The numbers are down but you only need one so don't let it get you down. New homes go on the market continually so it's more a matter of keeping an eye out for the right property and being willing to make a trip if one looks to be the right one. Work with your realtor so you receive listings that match your criteria the moment they go on the market. Let your realtor know if there is one that looks to be ideal and ask the agent to check out all of the questions you have. I've taken photos, made measurements, etc. for out of town buyers so they could evaluate a property as best they can before making a trip. I've even seen buyers make offers sight unseen but subject to their inspection within a reasonable amount of time.

Understand that it is a process and almost always requires a compromise somewhere. And, there's no doubt that a little lucky timing doesn't hurt, too.

[Markymcd]

When looking for a house my agent told me that the most active time for real estate in Florida is October to March. It surprised me a great deal as the rest of the country seems very active in the Spring to Summer season. With the rising prices we may see more houses come on the market, the downside is some of those houses that may have been in your price range 6 months or a year ago are no longer there.

If you really like Parrish check out Harrison Ranch, good amenities, large homes, larger lots, low prices. Wife & I almost bought there before we focused on the Lakewood Ranch area for better schools and closer to work location.

[bbronston]

You can see the last 12 months (roughly) of activity here: http://www.sarasotarealtors.com/file...0416120652.pdf
Just scroll down to see the graphs.

[photoman_6]

lucky 300- just a thought- if you're looking in areas as disparate, Venice, and Lakewood Ranch, you still have a long way to go. You need to narrow your search to a particular area based on amenities, then look at specific homes/neighborhoods.