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Market Conditions in Siesta Key : Real Estate Advice

  • All22
  • Local Info5
  • Home Buying7
  • Home Selling0
  • Market Conditions4

Activity 4
Sun Aug 23, 2015
Diane Christner answered:
I suggest making sure you factor in all of your annual expenses to decide if buying a particular villa makes financial sense for your circumstances.

Condo association fees are higher on the Keys than on the mainland, mainly because of flood and wind insurance on the buildings. As a buyer, you will also need to factor in your individual insurance on the unit itself (which may also include flood insurance), insurance rates are also higher if you plan to use it as an investment rental. Property taxes are another expense to factor in. Keep in mind that the current property tax rate is subject to change after purchase, a sale triggers a new assessment by the county for property tax purposes.

Does the condo community have an on site management to handle rentals? If not, you will probably want to factor in a management company since it is difficult to self manage if you live out of town.

Siesta Key is a fantastic place to live/play, the public beach has won many national "best beach" awards over the years. Just make sure you have a good grasp of the annual expenses up front, before you buy, so there aren't surprises later on.

If you'd like more info on buying condos in our area, please feel free to contact me thru my web site below. I have lived in the Sarasota area for 30+ years, selling real estate for more than 16 years.

Regards,

Diane Christner, Realtor, GRI, SFR, CNE
Bright Realty
Sarasota, FL

www.DianeChristner.com
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Tue Sep 23, 2014
Jerry and Sandy Strom answered:
Siesta Key has always led Sarasota and to some extent other areas in Florida, in real estate "recoveries". The availability of the No.1 2013 Beach in the USA, being able to walk to several restaurants and stores, along with most water sports, puts our real estate in high demand. If you are looking to buy, inventory is decreasing, which will lead ultimately to high prices. So call your favorite Siesta Realtor soon. ... more
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Mon Jun 25, 2012
George Miller answered:
There is a misconception that prices are continuing to fall. If you watch national news stories, that is some of what you see. However, those reports fail to take into consideration the most important rule in Real Estate ‘Location, Location, Location’, and that all real estate markets are LOCAL: The situation in Chicago is not relevant to Boise or to Dallas etc. Also, certain segments of the market within a local area can experience vastly different trends: i.e. condos vs. single family homes, or price points: under $200,000 vs. multi-million $ properties.

More specifically, for the purposes of this question I will focus my response to market conditions on Siesta key.

As a Realtor that specializes on Siesta key, I have been told ‘I’m waiting for the bottom of the market before I consider buying’ many times. As a former licensed property appraiser, I decided to compile hard data on the local market to determine when that was / or will be (see the link below for the results)

On Siesta Key, a 12 month trailing average of sales prices through March 2012 indicate the market has been improving dramatically for single-family homes since the slow-down. According to the average sales price data (compiled from the Sarasota MLS): It appears the bottom of the market for Siesta Key single family homes was approximately two years ago. Although I have not updated this data lately, more recent reports indicate that sales have continued to strengthen throughout June

Condo prices remain flat, but this is consistent with the observation that even within a specific market area – different segments (i.e. condos vs. single family homes) can experience different conditions concurrently. However, it should be noted that unit sales of condos are up significantly.

Regarding the instability of Europe and the world markets, even in these uncertain times that we live in, the US is still the most attractive country for investment (the proverbial ‘dog with the least amount of fleas’). This is supported by the fact that US Treasury bills are still being snapped up in spite of historically low interest rates. However, international investors are not satisfied with safety alone – they want return on investment, which T-bills do not provide. This would explain the recent data that over 30% of all real estate transactions in Florida involved foreign buyers, and that number is expected to grow.

Fears of inflation are also fueling the rise in prices. Like gold, oil, and commodities, real estate is a finite (limited supply) ‘hard’ asset. During periods of inflation, the value of hard assets (including real estate), tend to go up as inflation rises. There is a counter to this discussion that as inflation rises – so do mortgage interest rates – and that exerts downward pressure on home prices. However, on Siesta key (remember this is a discussion about local markets), most recent transactions are cash in spite of historically LOW interest rates. In addition, inventory levels on Siesta key (and greater Sarasota) are within the range of what is considered to be a ‘sellers market’ (i.e. at current sales volume it would take less than 6 months to sell every home). This is an indicator that future prices are expected to rise.

If you are seriously considering buying in Sarasota or on Siesta Key, now would be the time to begin looking in earnest, as all indicators point to prices continuing their upward trend in our local market.

If you have any questions, or would like a customized search for all properties specific to your criteria – call or email me for more information.


George Miller
Coldwell Banker Residential Real Estate
5145 Ocean Blvd
Siesta Key, FL 34242
941-374-1000 Cell
941-349-4411 Office
For the latest Market News and info go to my website:
http://www.SiestaHomeValues.com
Referrals are always appreciated! If you have friends, neighbors, co-workers or family members thinking about buying or selling a home, please reply to this e-mail and tell me about them.
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Wed Jul 29, 2009
Marianne LeBar, PMN,CRS,CIPS answered:
I am a Realtor but I also have my own Gulf view condo on the market right now on SK. I took it off the market temporarily (status TOM) because I was having so many showings.
If you are priced right it will sell in this market. The Sarasota market seems to be on fire right now. Our manager at Main Street just blogged we had over 40 contracts this July at mid month. I personnally am negotiating offers most days. Of the 7 contracts I closed this year 6 were cash deals. I think the stock market has rebounded just enough that people with cash are once again comfortable spending it on the great real estate buys and not attracted to the stock market for investing. Ponzi schemes have people answering their own question "Why give my money to that guy, I perfectly capable of losing it all myself" Just a little humor to brighten your day. Marianne LeBar/Michael Saunders Main Street ... more
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