2009 Sarasota Real Estate Market Improving

The health of the Sarasota Florida real estate market has been steadily improving in 2009. There has been a dramatic decline in inventory levels plus sales and pending sales are up sharply. The increase in sales can be primarily attributed to substantial price reductions. In addition, United States Government incentives such as the $8000 tax credit have helped push sales. Sarasota real estate sales in July 2009 were up 30% over sales in July 2008.

Sarasota home and condominium inventory has been greatly reduced to levels not seen in three years. The absorption rate for single family homes is down to 9 months versus 26 months a year ago. In addition the absorption rate for condos has gone down to 16 months from 34 months last year. An absorption rate of 6 months or lower indicates a return to a seller’s market. There will continue to be higher volumes of foreclosures hitting the market, however, they are expected to affect the market less than the past few years because more and more buyers are entering the market to take advantage or reduced prices.

Prices have dropped dramatically, making Sarasota real estate much more affordable now. Interest rates are still near record lows. Many sellers are very motivated. If you have been considering a permanent move, second home or investment in Sarasota, now is a good time to start exploring the opportunities. It is unlikely that there will be dramatic gains in the real estate prices like the run-up the market experienced from 2004 to 2006. However, Sarasota still has all of the fabulous amenities, gorgeous beaches and near-perfect weather that make it an attractive destination for the millions of baby boomers that will be retiring soon.

In July 2009, US News and World Reports put Sarasota Florida on its Top 10 Best Undervalued Places to Live list. Those seeking to enjoy the incredible Sarasota Lifestyle combined with the possibility for long-term asset growth should explore the home and condos opportunities currently available. There are some terrific deals out there for the taking.