There was an interesting article in the newspaper today about the Sarasota, Florida real estate market. I will post the article below but in a nutshell it basically says that homes sales nationally rose nice while Sarasota and Bradenton sales spiked 30% in July of 2009. The article attributes the sales increase to the first time home buyer tax credit. I think that in conjunction with lower prices have caused many of fence sitters to make a purchase. Prices are SUBSTANTIALLY lower than where they were in 2005 in many areas of Sarasota.  Many sellers and Realtors have recently done a great job of adjusting their asking prices to match market prices.

Home sales in the Sarasota-Bradenton market rose 30 percent during July as buyers scurried to lock in a tax credit of 10 percent of the purchase price, or up to $8,000.

Prices in the market were down 22 percent from a year ago at $179,500, but continued to show stability, rising 10 percent from $162,700 in June, according to data released Friday by the Florida Association of Realtors.

In Charlotte County-North Port, sales rose 24 percent in July, but the median sales price of $105,000 was down 26 percent from a year ago and 28 percent from June.

Statewide, home sales rose 37 percent, with the median dropping 24 percent to $147,600. That price was roughly flat with $148,000 last month.

Nationally, sales in July posted the largest monthly increase in at least 10 years, perhaps a sign that the U.S. housing market is rebounding quicker than expected.

The National Association of Realtors said Friday that home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June.

It was the fourth-straight monthly increase and the highest level of sales since August 2007.

Sales had been expected to rise to an annual pace of 5 million, according to economists.

“The housing market, with today’s strong rise in sales, has decisively turned for the better,” said Lawrence Yun, the trade group’s chief economist.

Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year. In places like San Diego and Orlando, buyers are snapping up foreclosed properties at deep discounts, and real estate agents are pressing banks to release more foreclosures onto the market.

Those sales helped drag down the median sales price by 15 percent to $178,400.

First-time buyers must complete their sales transactions by the end of November to take advantage of the tax credit. The real estate industry is lobbying Congress to get the credit extended.

“It would be unfortunate to see the momentum halted,” Yun said.

The inventory of unsold homes on the market rose to 4.1 million, from 3.8 million a month earlier. That’s a 9.4-month supply at the current sales pace, unchanged from June.

BY THE NUMBERS

SARASOTA-BRADENTON HOME SALES: Rose 30 percent in July, when compared with the same month a year ago, with 855 homes sold compared with 657 in June 2008. It was the ninth biggest increase statewide. Sales rose 104 percent in Fort Myers-Cape Coral.

HOME PRICES: The median price dropped 22 percent to $179,500 from $230,100 a year ago. The July price was up 10 percent from $162,700 in June. The year-over-year drop was the 12th biggest drop in the state. The largest was 43 percent in nearby Fort Myers-Cape Coral.

CONDOMINIUM SALES: Rose 14 percent in July when compared with the same month one year ago, with 227 condos sold compared with 199 during July 2008. The largest increase in percentage terms was Orlando at 215 percent.

CONDOMINIUM PRICES: The median price dropped 23 percent to $174,400 from $227,200 a year ago. The July price rose 17.4 percent when compared with $148,500 in June.

CHARLOTTE COUNTY-NORTH PORT HOME SALES: Rose 24 percent in July, with 248 homes changing hands compared with 200 a year ago.

HOME PRICES: The median price in Charlotte County-North Port dropped 26 percent to $105,000 from $141,800 a year ago. The median was down 28 percent from $145,600 in June.

CONDOMINIUM SALES: Sales were up 100 percent, with 30 units changing hands compared with 15 a year ago.

CONDOMINIUM PRICES: Dropped 13 percent to $124,000 from $142,500 a year ago. The median was down 13 percent from $140,000 in June.

Give Marc Rasmussen a call at 941.812.6272 if we can help you buy or sell a home in Sarasota, Florida. Visit our Sarasota real estate page – http://www.luxurysarasotarealestate.com to view thousands of homes and condos for sale.