2007 Sarasota real estate market continues to mirror 2006

Oct. 24, 2007

*The following press release was sent to local media on Oct. 24 at 12 p.m.*

2007 Sarasota real estate market continues to mirror 2006
The Sarasota real estate market this year continues to mirror last year, with sales figures year-to-date for homes and condominiums in the Sarasota MLS declining only a modest 7 percent through the first nine months of 2007 compared to the same period in 2006.

In total, 4,830 closings were reported through the end of September 2007, compared to 5,194 closings through September 2006. These numbers are reminiscent of the market through Sept. 30, 2001, when there were 4,476 closings reported. However, home and condominium prices have obviously increased dramatically during the past six years.

In fact, the total volume of sales for the first nine months of 2001 was only $1.22 billion, while the figure was $2.365 billion, or almost double this year. This is an indicator of how much homes and condominiums have appreciated in only a short time in our area. Despite the recent downturn in median prices from the peak experienced in 2005, for those who owned a home for the past several years, there has still been a substantial increase in value and equity in the property.

Condominium prices were a bright spot, up year-to-date through Sept. 30, with the median sale price for the first nine months at $355,000, compared to only $310,000 for the same period in 2006. This represents an increase of 14.5 percent.

The median sale price of a home was $309,000 year-to-date through September 2007, compared to $350,000 for the first nine months of 2006, for a decline of 11.7 percent.

The Sarasota MLS did show a dip in sales for September 2007, with 234 single family home sales and 104 condominium sales, compared to September 2006, when 316 home and 134 condos were reported sold. However, September is often one of the slowest sales months of the year, prior to the return of seasonal residents and potential home buyers.

"We are continuing to see stabilization in our market numbers as we come out of the slower, end-of-summer months," said Joe Hembree, 2007 SAR President. "Word of mouth indicates we are already seeing an increase in visitors to open houses, and we expect the season will bring a new wave of serious buyers, who will see a market in recovery, with prices lower than people have seen in a few years."

Viewing the statistics generated by the Florida Association of Realtors®, which combines the Sarasota-Bradenton-Venice area as one Metropolitan Service Area (MSA), Hembree noted this region is still doing better than the overall state.

"We were only down 10 percent in terms of condominium sales for the month, while the overall state was down 37 percent," said Hembree. "The median condo sale price also was up by 6 percent for our MSA, while the state was down 4 percent. Our single family home sales were down 25 percent, September to September, while the state was down 38 percent. Ocala's MSA was down 57 percent, and Orlando was down 48 percent. So you can see that we are still performing relatively well in a down market."

On Oct. 16, during a panel discussion concerning the local market, sponsored by SAR and the Time2Buy Sarasota campaign, noted national economist John Tuccillo said all signs are pointing to the first phase of a market recovery now in progress in Sarasota.

The cyclical real estate industry often sees the start of a new phase reflected in lower numbers of listings, which is evident in the Sarasota market. Tuccillo noted this is normally followed by the second phase, a reduction in the number of days on market, and then the third phase, a rise in the ratio of sale price to list price.


Sarasota Association of REALTORS®

$11 BILLION PROPERTY TAX RELIEF PLAN

FOR IMMEDIATE RELEASE
October 24, 2007

HOUSE PASSES $11 BILLION PROPERTY TAX RELIEF PLAN WITH STRONG BI-PARTISAN SUPPORT

TALLAHASSEE – A bi-partisan coalition of Republican and Democratic lawmakers in the Florida House overwhelmingly supported an improved property tax reform plan today expected to provide over $11 billion dollars in property tax relief during the next four years. The measure (CS/SJR 2D) passed by a 108 to 2 vote.

The plan preserves Save Our Homes, ensures portability of accumulated Save Our Homes benefits, caps year-to-year increases on non-homestead and commercial properties, and provides all homestead property owners a Guaranteed Save Our Homes benefit. If approved by the Senate, the measure will once again give Floridians the opportunity to vote for meaningful property tax reform on January 29, 2008.

“The plan we passed today accomplishes is a strong step forward for property tax relief,” said Chairman Dean Cannon (R-Winter Park), the lead property tax negotiator in the Florida House. “It provides meaningful relief to Floridians suffering under the weight of oppressive taxes, it reforms a broken property tax system that is riddled with inequities, and it creates new protections for all property owners from unchecked property tax hikes in the future.”

“We have listened to the concerns of Senators and Representatives, Democrats and Republicans alike and have passed a revised approach to the property tax situation,” said Representative Doug Holder (R-Sarasota). “It’s a bi-partisan product that is a significant improvement over the original plan – providing the same amount of relief but in a more efficient manner.”

The measure passed today:

Preserves Save Our Homes.

Allows “portability” of accumulated Save Our Homes (SOH) benefits.
Homeowners may transfer their SOH benefit to a new homestead anywhere in Florida within 2 years of leaving their former homestead
If “upsizing” to a home of equal or greater just value, the homestead owner can transfer 100% of the SOH benefit to the new homestead, up to a $1 million transferred benefit.
If “downsizing” to a home with a lower just value, the homestead owner can transfer a SOH benefit that that protects the same percentage of value as it did the former homestead, up to a $1 million benefit.

Provides a “Guaranteed Save Our Homes Benefit” for all homestead properties, so that all homestead owners can enjoy meaningful SOH savings without having to wait years to get them (does not apply to school tax levies).
All homeowners will own a SOH benefit that will accumulate on an annual basis and that can be carried with them from home to home (the “accumulated SOH benefit”).
If a homeowner has a small accumulated SOH benefit (like most recent homebuyers or new homestead buyers) they will receive a guaranteed exemption equal to 40% (or 100% for low-income seniors) of the county’s median just value for homesteads.
This is called the “Guaranteed SOH Benefit.” The Guaranteed SOH Benefit applies to home value above $50,000.
Along with using the county median home value approach, this will minimize the impact on small cities and counties. The homeowner will continue to build an accumulated SOH benefit. Once the accumulated SOH benefit is greater than the guaranteed benefit, the homeowner will receive the accumulated SOH benefit.

Provides a 5% assessment cap for all non-homestead and commercial properties in Florida to guarantee property tax predictability and protection for all property owners.
Non-commercial properties will be reassessed at change of ownership.
Non-homestead properties will be reassessed when the property undergoes a substantial modification or change of use.

Creates a new Tangible Personal Property Exemption of $25,000.

Provides for limitations on assessed values of properties used for affordable housing and working waterfronts (does not apply to school tax levies).

Instills accountability for all local property appraisers by requiring every appraiser to be elected.