The city of Sarasota is famous for its wonderful beaches and year-round vacation atmosphere. The city is also seen as a wonderful destination for retirees and new families, who wish to experience the vibrant and active Florida lifestyle. For prospective home buyers, if you, or you probably knew someone who was smart enough not to buy a home or condo in this area last year, would you think 2008 will be the year to make the move and buy a home here?
The Area Has A Large Inventory Of Homes For Sale
According to housing analysts, the major cause for the price downturn is the large inventory of homes for sale on the block right now, and there is nearly a year's supply of homes for sale on the market.
According to recent statistics, at the height of the area’s real estate market in 2005, there were around 1,600 homes and 1,150 condos for sale at prices that were admittedly atmospheric. At present, you'll find over 8,000 homes and more than 4,700 condos on the selling block, and they are not still that selling fast. The Sarasota Board of Realtors forecasts that home prices will fall a bit further in 2008, and they view that this year may be the right time to make your move.
Are Home Prices Going To Fall Back To The Ground?
With the way the housing market is moving these days, it should come as no surprise to anyone that home prices in this city had gotten a bit out of touch with reality. One real estate broker noted that a waterfront condo that got sold in 2000 for $175,000, was re-sold in 2003 for around $295,000, and resold again in 2004 for $367,000 and by mid-2005 would have been brought $579,000.
The very same housing unit is on the selling block for $449,000, however no one is even coming to see it yet. However, there are some positive signs that reality is starting to sink in, and with it, the hope that early 2008 will see a renewal of seller's price expectations and the buyer’s willingness to invest in this lovely area's real estate choices
Would The New year Be A Buyer’s Market for This Area?
Most local housing experts see another major reason why buyers might want to start thinking seriously about making their move, if they are interested in the city’s property markets in 2008, is that mortgage rates are still at historically low levels, and are pegged at 6%.
With inflation starting to rear its ugly head, it may look like interest rates will soon begin soaring up again. When that day comes, the market price for a home or condo you can buy for a given monthly outlay will begin dropping. A modest inflation-driven increase from a 6% to a 7% mortgage interest rate will reduce the amount of home you can buy for the same monthly outlay by an estimated 17%.
This year will clearly look like a "buyer's market" in Sarasota, and those willing to spend the time searching can be surprised to find real bargains in the market. If you’re in the state for the winter vacation, this year may be a good season to contact a local realtor, and to start shopping around for that home or condominium you've been truly searching for.
(VDr.)
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