During my typical professional day as a Realtor, I frequently have conversations with visitors from many areas of the country and the world. I recently sold a large bay front estate to an American citizen living in Hong Kong, following weeks of due diligence online. One misconception shared by my client and by most of our visitors who follow US news is that what’s happening in our real estate market locally is the same as what’s happening throughout our Country.

Since 2004, there have been many reasons for the real estate market correction, which is still occurring in many housing markets. However, I believe a serious disservice occurs when the mainstream media, with its headlines and persistent television drumbeat of gloom and doom, implies that all American housing markets are equivalent. This would indicate that real estate is one monolithic homogeneous entity correcting itself in lock step pace. As an example, the market in Detroit has its own issues and is markedly different from the market in Las Vegas, which also differs from that of Miami, Atlanta and Sarasota. Each has its issues unique from the others.

The Florida real estate market is totally different from that of any other market in the US. Florida’s uniqueness is partly due to its many attractions, its climate, and its demographics that include relatively low unemployment, the numbers of retirees and second homeowners migrating to the State. There are 78 million baby boomers, a solid portion of which will be migrating to Florida over the upcoming decades, and wealth is not a prerequisite to the good life in Florida.

Contrary to media implications, markets within the State of Florida also differ from one another. Miami market bears little resemblance to that of Sarasota, which differs from the market in Ft. Lauderdale, North Port, Tampa. Within Sarasota County itself, the story varies greatly between housing type and location. Sarasota is the toast of Florida with its impressive array of cultural attractions, captivating beaches, varieties of water oriented properties, climate and conducive environment for family life, youth and adult sports, etc. From Bird Key to Longboat Key, from Siesta Key to Lido Key and Casey Key, each provides a wonderful array of water-oriented neighborhoods, each with its own distinctive flavor and lifestyle.

Significantly, Sarasota is also one of the first markets in the State where sellers began early to absorb the pain of property value reductions. Sellers in Sarasota got ahead of the curve and now, based on statistics and the informed opinions of many experts, Sarasota is coming out of the correction ahead of other regions of the State. MLS statistics are showing a surge in pent-up buyer demand and a reemergence of buyer confidence.

A great example of this surge is in the Longboat Key market where 426 condominiums are listed for sale. Since January 2008 105 have sold and 42 are under contract, and there are 207 single-family homes listed for sale, of which 30 have sold and 10 are under contract.

During February 2008, there were 10,035 single family homes on the market in Sarasota compared to 10,391 in February 2007... a reduction of 356. The condominium inventory in Sarasota also dropped in February by 327 from the previous February 2007.

Historically, as inventories continue to edge down, prices historically rise. It is this combination of increasing demand and shrinking inventory that inevitably lead to marketplace balance and an ever increasing buyer sense of confidence that makes now the right time to buy.

Anne Mitchell
Michael Saunders & Company Licensed Real Estate Broker
941.725.0227