Higher Prices, Loan Rates Unlikely to Deflate Florida Home Market Rebound


SARASOTA, FLORIDA, August, 23, 2013 – The Bradenton-Sarasota-North Port metropolitan area emerged with the third highest median price for single family homes in May, Sarasota Bay Real Estate reports, adding that this uptick underscores the value of realtors who could walk their clients through the choices that are more affordable and suited to the buyers’ desired lifestyle.  This May, the median price for single family homes in the area rose year over year by nearly 20% to $201,521. The price rise for condos was more moderate at 5.6% to $150,000.

The recent surge in mortgage rates, the full service realty firm also says, likewise makes it even more necessary for prospective home buyers to tap the services of a broker who can extend competent assistance in the financing that maybe required in a purchase.

Recovery robust enough

According to a statement from the McLean, VA-based Freddie Mac released this June 27, the average 30-year mortgage rate rose 4.46% from 3.43%, the biggest weekly increase since 1987. The rate was also at its highest level since July 2011 and hit beyond 4% for the first time since March 2012. With the higher interest rate, the monthly amortization for a $300,000, 30-year home loan increases to $1,513 from $1,322 in May.

Homeowners, on the other hand, who are eying to engage the market to upgrade their residences need not be overly concerned that the rising mortgage rates shall make it difficult for them to sell, Sarasota Bay Real Estate maintains. The realty firm, which is backed by over 20 years of experience in the industry, agrees with some economists’ assessment that the recent increase interest rates on home loans won’t dampen the current recovery of the residential property market and stem gains in prices and rising sales experienced for most of this year.

Sarasota leads in May sales


This May, sales of single family homes in the Bradenton-Sarasota-North Port MSA totaled 1,315 units, a 17.3% from a year earlier. Sales were slower for condos and townhouses at 515 units, but still 4.8% higher than the May 2012 level.

The Sarasota home market accounted for most of the sales in the area with 737 single family homes and 283 condos sold for the month. Overall, May closed deals on Sarasota homes for sale rose 19.4% from last year. The median sale prices for single family homes and condos in Sarasota are at $220,000 and $194,250, a bit higher than the whole MSA’s.

New choices in Osprey

There are plenty of options for home buyers seeking properties priced under the median home price in the Sarasota metro area. Sarasota Bay Real Estate notes several new listings, for instance, at the Pine Run condominium in Osprey along the western stretch of the Tamiami Trail. Notably, communities “west of the trail” are among the choicest locations for Sarasota homes for sale. The pair of new listings at Pine Run are two-bedroom units having floor plans of 1,300-plus square feet, both priced in the low $100s.

For single family homes, Lakeridge Falls has a newly listed two-bedroom residence with a floor area of close to 1,400 square feet and an asking price in the low $200s. Sale of a property here priced under the $200s is already pending along with several others, indicating the continuing strength in the market for Sarasota homes for sale.