Higher Interest Rates Are Not Depressing Home Sales

The average rate on a 30-year fixed rate mortgage fell for the second week in a row this week to 4.31%, down from 4.37% last week according to Freddie Mac.

While the rate has now fallen for 2 weeks, the rate is still nearly a full percentage point above the level it was at in early May. While rates are still low by any historical measure, they have risen since the Federal Reserve suggested that it might begin reining in its bond buying program later this year. But, the higher rates do not seem to be depressing home sales.

Judie Berger, a friend of mine and respected Associate Broker and Sarasota luxury homes Realtor with Premier Sotheby's International in Sarasota Florida, said that in spite of the rising rates, homes for sale in Sarasota Florida continue to sell almost as fast as they come on the market. Realogy, the nation's largest residential broker, agreed saying that its transaction volume grew by 21% in the second quarter of 2013 from the level at the same time in 2012.

Builder confidence also remains high, rising this month to 57 on a scale from 1 to 100. At the bottom of the housing bust, that index had dropped to as low as 10. Builders attribute the improved confidence level to both higher traffic through model homes and higher expectations about future sales. Builder confidence in the Sarasota real estate market is indicated by the fact that several builders have started new developments or added on to existing developments in recent months in the popular Lakewood Ranch development.

Lakewood Ranch has been at the epicenter of home building activity in the Sarasota County this year driven by builders Taylor Morrison, Lennar and Neal Communities in both existing neighborhoods such as Central Park and Country Club East and the newest start-up community of Bridgewater.

For information on mortgage interest rates or the state of the Sarasota real estate market. feel free to contact me at 941-266-1799. I'd be delighted to answer your questions.

Suddenly There are New Hi-Rise Condos Being Built in Downtown Sarasota

  If you've wondered whether the stories we've written about how the Sarasota real estate market has come roaring back, here's news that will confirm the truth behind those stories.

  For the first time since the "Great Housing Bust" of 2007 and 2008, construction cranes are again becoming the "official bird of Sarasota." They are poised again above Downtown Sarasota. A furniture store and a sports bar have been torn down to make room for the first downtown Sarasota high-rise luxury condominium tower since the Florida real estate bust. The new condo tower will be built at Gulf Stream Avenue and Main Street joining The Queue townhomes on Ringling Boulevard and the Homes of Laurel Park, a new 26 home project as the first significant Downtown Sarasota residential developments since 2007.

  The Jewel Residences tower will include just 18 luxury dwellings with views of Sarasota Bay. Those distinctly upscale condominium units will sit above 6 shops and restaurants. These luxury units will range from two-story lofts to a full-floor penthouse. In advance of the start of construction, seventeen of the luxury condos and five of the storefront locations have been sold according to a recent article in the Sarasota Herald Tribune. Tom Mannausa, the developer reported, “we’ve attracted a number of affluent and still quite active, baby boomers who are very excited to move in.” This luxury property will include a fitness center, a 20-meter lap pool, spa, a yoga stretch room, a six-hole putting green and a platform tennis court.

  In addition to the new residential construction in Downtown Sarasota, builders are actively building in Lakewood Ranch, Bradenton and Osprey and on Longboat Key and Siesta Key.

  As I’ve reported recently, there has been steady growth in demand for Downtown Sarasota condos but fewer and fewer existing properties available. There were 733 Sarasota real estate sales in February (504 single-family homes and 229 condos), up 24% over sales a year ago in February, 2012. This followed a January year over year increase of 22%. While home and condo purchases continue to accelerate, the availability of properties for sale continues to decline.

  The inventory of Sarasota real estate properties for sale remains at its lowest level in over a decade; 17.4% lower than at this point last year. As of March 31st, there was less than a 5.0 month supply of homes for sale in Sarasota and a 5.6 month supply of condos available. One year ago, there was a 7.2 month supply of homes and a 9.1 month supply of condos. At the bottom of the recession in 2008, there was a 24 month supply of homes and a 41.7 month supply of condos on the market. Whenever the supply of residential properties on the market drops below a 6 month supply, the market is considered to be demand-driven, builders start building and prices begin to rise. There is little doubt that prices will be higher next year than they are right now as demand continues to outstrip the supply of Sarasota properties.

  If you're ready to move right now, there are a few Sarasota luxury condos available today in developments like Condo on the Bay and townhomes at Broadway Promenade, but fewer and fewer every day.

  If you have been planning to visit Sarasota, let me help you find that second or permanent Sarasota residence you've been wanting by showing you all the best values in Sarasota condos here in Downtown Sarasota. Whether your interests lie with the Arts and Cultural venues of Downtown Sarasota where the Jewel Residences is being built, the golf course country club lifestyle, or a waterfront home or condo where you can keep your yacht right behind your home, Sarasota has exactly what you seek

  If you would like to know more about the Sarasota, Bradenton and Lakewood Ranch real estate markets in general, or the cultural, shopping or recreational amenities of Sarasota, Contact Me today. For an even faster response, call me on my cellphone at 941-266-1799. I'd be happy to be of assistance.

Downtown Sarasota Has Come Alive Again

    First, lets describe roughly what we mean by "Downtown" Sarasota. The western boundary of Downtown Sarasota is, obviously, Sarasota Bay and the area around Golden Gate Point and the Ritz-Carlton. On the north side, 10th Street is now a reasonable approximation given all that's happening in the Rosemary District and Citrus Square. The eastern edge is roughly Washington Boulevard (U.S. Route 301) with a bit of a bump-out to accommodate the area around the courthouse. To the south, Mound Street strikes a reasonable edge since that is about where Sarasota's historically significant and very desirable suburbs begin.

    The Downtown Sarasota area is roughly one square mile but its is amazing how much is now packed into that urban area.

    For those attracted by the convenience of being able to walk, ride a bike, or take a bus to just about everything, there is just about every type and style of housing imaginable from elegant high-rise condos along the bay front to more modest condos and town homes, the charming old bungalow-style homes you find in neighborhoods like Laurel Park, the cozy residences over retail spaces in Citrus Square and the loft spaces of the Rosemary District. But there is housing everywhere, so why has Downtown Sarasota become "the place to be and be seen?"

    The Herald Tribune, in picking its "Best Sarasota Neighborhood" back in 2011 expressed the opinion that it was because so much is now happening in Downtown. "Things have definitely been spruced up over the recent past." Rich Stover, a prominent Realtor says, "When the sun goes down, they used to roll up the sidewalks, but now they put out patio furniture and sell you drinks and dinner," And, the excitement about Downtown Sarasota as a place to live has gotten even more intense lately with new housing being built for the first time in years.

    New dining establishments are popping up everywhere. There are now more annual festivals and events -- things like the Chalk Festival where artists create huge colorful illustrations on Pineapple Avenue, the Bayfront Park Boat Show, the Sarasota Jazz Festival, and the Sarasota Film Festival to name just a few. During winter months, the weekly Saturday Farmer's Market at Main Street and Lemon Avenue brings all sorts of folks downtown who then venture into shops, boutiques, and the many sidewalk cafes along Main Street.

    The Downtown Sarasota waterfront is also a big draw. Island Park, situated on a peninsula right on Sarasota Bay has water's edge sidewalks all around it. It's a great place for a leisurely walk, rollerblading, or a bike ride. Children love the water fountains and the playground zone and the park is pet-friendly so you'll see numerous four-legged visitors as well. With a light evening breeze, a evening walk along the Downtown Sarasota waterfront can be a delightful way to spend an hour or so before venturing into a favorite or maybe a new cafe for some light fare or sumptuous dining. Some Sarasota waterfront developments like Condo on the Bay offer both condominium and townhome options where you can berth your yacht right outside your door.

    The Sarasota Arts and Cultural District also play a big role in the vibrant Downtown Sarasota lifestyle. The Van Wezel Performing Arts Hall, the Asolo, the Sarasota Ballet, the Sarasota Orchestra, the Players Theatre of Sarasota and the Florida Studio Theatre all bring more people into the downtown area on weekday and weekend evenings. There is a museum to please everyone's interests from the Ringling Museum and Cà d’Zan mansion to the younger family-oriented GWiz hands-on Science and Technology Center

    If you have been contemplating visiting Sarasota to buy a second or permanent home or, if you're already here but thinking of moving to a different home or condo, don't overlook Downtown Sarasota. It truly is a gem for those who crave a more active urban lifestyle. Visit my website focused on homes for sale in Sarasota Florida or, just call me at 941-266-1799. I would be delighted to answer your questions.

Introducing My New Blog

I'm starting my Sarasota Real Estate blog to help those interested in buying or selling residential properties in the Sarasota Florida area by providing as much current information as possible on the situation in our real estate market, the types of homes and condos available and the type of lifestyle owning a home or condo here on the Florida Sun Coast entitled you to enjoy. 

I hope you'll read the posts that I, @Rich Stover write, as well as those by others I invite to contribute and that you'll give us some feedback on the topics you'd like to see covered here by "commenting" on articles you read here.

I also invite you to visit my website covering homes and condos for sale in Sarasota Florida to learn even more about me and the services I am proud to provide to all my clients.