Increase in asking prices for houses (Sarasota, Port Charlotte: sales, foreclosures, HOA)

[yellowsky]

I have been keeping track of house prices in the North Port/Port Charlotte area for the last four years or so. Houses built year 2000+ and a standard 3/2/2.
Though the number of listings has certainly decreased the asking prices have really had only moderate gains. Quite suddenly the asking prices seems to have increased dramatically. What used to be $110/20K now seems to be $180K and more.
Are sellers really getting these asking prices? Has the market changed so much that it is now a sellers market?

[leetchy2]

Not sure about NorthPort per se, but I've been looking for a home to buy in other parts of Sarasota. If you look at average selling price per square foot or at home price indexes these measures have remained fairly steady this summer. Although median sales prices may have increased over the summer this is a misleading statistic. Plus they haven't increased as much as your observation in list prices. What you may be seeing is possibly the result of fewer foreclosures/short-sales. Owners often list their home prices relative to the competition. If there are fewer foreclosure giveaways in the area then the owner can price higher. Time will tell whether the owners will get their price.

[SoFLGal]

Yes, you are correct. There has been a surge in prices in the North Port area. It seems as though as soon as a property comes on the market-if it's priced well and is in good shape, it has multiple offers. So, yes, sellers are getting their price or pretty close to it.

There was a dip in prices for a few months but it seems things are headed back up again. Looking at the foreclosure dockets there are very few homes coming on the market in Sarasota county. If things continue on this path you will see a substantial rise in prices come season. The question is "how long will this last?" We all know there is a lot of inventory/foreclosures left sitting. Right now it's coming on the market in a very slow pace.

These are all 3/2/2 homes and 2000 or newer.

Here are some stats for you:
Mar 26-Apr 26-Average list price, $105,777 and average selling price, $101,703
Median list $99k and median selling, $92k. There were 103 homes sold.

Apr 26-May-26-Average list price, $113,286 and average selling price, $108,928
Median list $99,900 and median selling, 99,950. There were 124 homes sold.

May 26-June 26-Average list price $133,253 and average selling price, $127,432
Median list $114,950 and median selling, $110k. There were 84 homes sold.

June 26-July 26-Average list price $111,888 and average selling price, $107,183
Median list $108k and median selling, $100,500. There were 82 homes sold.

July 26-Aug 26-Average list price $113,467 and average selling price, $110,234
Median list $99,999 and median selling, $98,000. There were 102 sales.

Aug-26-Sept 26-Average list price $120,326 and average selling price, $117,367
Median list $107,500 and median selling, $103k. There were 73 sales.

[SoFLGal]

If you look at all of Sarasota county regardless of age, size, condos, single family, etc. Here are the stats:

Mar 26-Apr 26-Average list price, $290,029 and average selling price, $264,864
Median list $174,500 and median selling, $162K. There were 505 homes sold.

Apr 26-May-26-Average list price, $301,240 and average selling price, $274,083
Median list $164,900 and median selling, 155k. There were 587 homes sold.

May 26-June 26-Average list price $322,712 and average selling price, $294,023
Median list $179,450 and median selling, $169,750. There were 518 homes sold.

June 26-July 26-Average list price $292,626 and average selling price, $261,550
Median list $169,900 and median selling, $155k. There were 400 homes sold.

July 26-Aug 26-Average list price $293,164 and average selling price, $260,360
Median list $174,900 and median selling, $165k. There were 429 sales.

Aug-26-Sept 26-Average list price $252,106 and average selling price, $233,125
Median list $159K and median selling, $149K. There were 357 sales.

[yellowsky]

Thanks, I appreciate the feed back. It could be a very competitive market this Winter for buyers.

[fiege1224]

What I have noticed is a lot of investors that bought and lightly fixed homes in 2010 have now just put the homes back on the market at much higher prices. I am waiting to see if they get these prices. I can buy a lot and build a new home on the water in some areas for what they are asking for older homes now. I looked at a nice home in South Gulf Cove this weekend The man wanted 235,000. He bought it last year for 109,000 off a bank and did maybe 20,000 at most in repair. I said I like the house and lot but I am not going to pay that much of a increase on the price from what he paid for it just last year. The market value on the house was only 160,000.This man has a lot of homes he is trying to do this with right now. So I guess I will wait and see what happens next in this market.

[QuilterChick]

Originally Posted by fiege1224

What I have noticed is a lot of investors that bought and lightly fixed homes in 2010 have now just put the homes back on the market at much higher prices. I am waiting to see if they get these prices. I can buy a lot and build a new home on the water in some areas for what they are asking for older homes now. I looked at a nice home in South Gulf Cove this weekend The man wanted 235,000. He bought it last year for 109,000 off a bank and did maybe 20,000 at most in repair. I said I like the house and lot but I am not going to pay that much of a increase on the price from what he paid for it just last year. The market value on the house was only 160,000.This man has a lot of homes he is trying to do this with right now. So I guess I will wait and see what happens next in this market.

Look at it this way; that greedy "flipper" will help other folks sell the homes which are properly valued in the area. Flippers can usually fix up homes for less than the average Joe can, but they also use cheap materials and labor for "cosmetic" purposes, whereas a homeowner resident would spend more. So the flipper's $20K would probably be $35K or $40K for a residential buyer. Merely as an example, but that is all I would add to the value plus a small cushion and arrive at an asking price of approximately $175,000. At which point it should sell.

In this market, it is ALL about price regardless of who the seller is.



It always happens. Overpriced houses sit and sit, until finally the reality sets in.

[SoFLGal]

The investors in the North Port area (and many other areas around the county) are getting their prices for the homes they are selling. They are all part of the stats I pulled in my evaluation of the North Port area. The investors have been buying right along and now it's difficult for them to find properties and compete with the average person wanting to purchase a home and live in it. It seems the prices are going up for the investors and end user home buyers.

[SoFLGal]

Originally Posted by QuilterChick

Look at it this way; that greedy "flipper" will help other folks sell the homes which are properly valued in the area. Flippers can usually fix up homes for less than the average Joe can, but they also use cheap materials and labor for "cosmetic" purposes, whereas a homeowner resident would spend more. So the flipper's $20K would probably be $35K or $40K for a residential buyer. Merely as an example, but that is all I would add to the value plus a small cushion and arrive at an asking price of approximately $175,000. At which point it should sell.

In this market, it is ALL about price regardless of who the seller is.



It always happens. Overpriced houses sit and sit, until finally the reality sets in.

That's probably true that they might use materials that aren't as expensive as a regular homeowner would use.

Something else to think about is that these "flippers/investors" are purchasing homes that were probably sitting for a few years with grass up to the windows. Many of the investors are employing local contractors, paying off back water, grass, etc liens on the home. In many cases they are paying the back taxes or HOA dues on properties that they purchase. Also most of the investors are paying all cash for the properties that they purchase so hopefully there won't be the big mortgage issues of the past.

Another thing that many people don't realize is the risk that some of these investors are taking. Many buy the property without ever entering the home. It could have Chinese drywall, structural issues, etc.

Although I'm friends with Michael Braga over at the Herald Tribune (and I think he's a great guy) it eats at me when he posts info on various investors. Usually he post what they bought the home for and what it was sold for but he doesn't take into account the commissions, what it cost to fix the home up, the back taxes or HOA dues that might have had to be paid, etc, closing costs, and many other fees and risks concerned.

Personally, I think many of the investors (not all) are helping the communities get back on their feet and most I know turn out a pretty superior product.

I totally agree with you Quilter on the sitting aspect. Whether it's an investor or not-if the house is priced well and shows well it well sell quick. If not, it will sit.

Just my humble opinion

[leetchy2]

Originally Posted by SoFLGal

The investors in the North Port area (and many other areas around the county) are getting their prices for the homes they are selling. They are all part of the stats I pulled in my evaluation of the North Port area. The investors have been buying right along and now it's difficult for them to find properties and compete with the average person wanting to purchase a home and live in it. It seems the prices are going up for the investors and end user home buyers.

To say they are "getting their prices" based on those statistics is deceiving. You're using the final list price, not the initial list price. Often times a home will list for say 250k, then after 6 months drop to 225 and then to 200 and then finally sell for 190k. So in the end it looks like they sold at 95% of list price but that's not an accurate picture.