Tour this St Armands Key Bay Front home with deep water dock. Located on a protected cove between Coon Key and Otter Key, teaming with all the wildlife species of Sarasota’s Bay Estuaries. Just a few minutes walk to Lido Key beach and steps to St. Armands Circle. Built in 2008 to the highest building standards, 35 S Washington Drive Sarasota offers 4 Bedrooms, 4 1/2 Baths, 4 Car Garage, and 4300 sq. ft of living space.

Take the Tour:

This month I want to focus on what I am calling the return of the luxury buyer, or those purchasing property listed at $1m or more. In the video below, which we shot on the water, I explain why the high end of the market is on the move.

Historically, Sarasota’s stunning beaches, beautiful Gulf vistas, and fabulous lifestyle have made it a natural fit for those seeking a luxury waterfront property. And now, in our recovering economy, there is plenty of action in the top end of the Sarasota real estate market.

Sarasota Luxury Real Estate On the Up

I think there are three reasons I am seeing the luxury buyers return, and why this sector of the market is currently thriving.

• First, as I have maintained for months, the luxury market is where the best deals are. While inventory levels in this segment are shrinking, competition for buyers is still very strong. Months of Inventory have always been a leading indicator for the health of a market, and we are down to about one year of inventory for properties listed over $1m. Although, I still see fair amount of volatility in this number for the next couple of quarters.
• The second reason luxury property sales are up, is that credit is loosening and borrowing is cheap. The high-income buyer is having more success again borrowing $1m or more, at rates close to conforming mortgages (which are at record lows).
• The final reason the luxury buyer has returned, is that for many in this segment the economy is better. One major factor improving the buying power and financial outlook for this segment’s individuals is entrepreneurial profitability and shareholder value.

When consumers spend more it increases profitability, and increased profits lead to increased shareholder wealth. This new wealth leads to more spending power and that is now moving from equities to real estate.

Luxury Market Immunity to Economic Hard Times

Three quick scenarios which demonstrate how luxury markets outperform in times of economic uncertainty:

• Rolls Royce had its best year ever in 2011 in its 107 year history.
• Burberry a leading British fashion designer has gone from trading at £154 in December 2009 to £1500 in April 2012.
• Similarly Apple has gone from trading at $80 per share in January 2009 to $630 per share in April 2012.

For these reasons I am working with a lot more luxury buyers. They are back in our market and this is good for Sarasota Real Estate, good for business, and good for our community.
Are there any questions I can answer for you? Call me at 941.587.0740.

Today, I filmed the video below from the backyard of one of my newest listings on St. Armands Key. Behind me are the beautiful Sarasota Bay and Coon Key.

This week was an active one. I had two different buyers make offers on properties, only to learn that there were multiple offers simultaneously on both properties.

Sarasota Real Estate Competition Heats Up

What this shows, and what I’m seeing everyday, is that there is activity in the Sarasota property market. Today’s buyers need to know they are not alone in wanting to purchase a piece of Sarasota.

And the first quarter numbers reflect exactly this. In fact, the results for Q1 2012 are remarkably similar to a year ago (which is a healthy sign).

A Luxurious First Quarter: “The Growth End of the Market”

• In the luxury market, where I spend most of my time, sales for properties listed over $1 million were up 34% from the 4^th quarter of 2011.
• Distressed sales are now down to ¼ of total sales. During the 4^th quarter of 2011 nearly 40% of sales were distressed so to be down to 1 in 4 is significant.
• Our market remains affordable with a little less than 2/3 of all sales being for properties listed under $200,000.
• Another 25% of all sales are for properties listed between $200 and $500k. Therefore 9 out of every 10 sales are for properties listed less than $500k.

The hot niche in the market continues to be at the luxury end, as I predicted more than a year ago.

However, there is movement across the whole market. And we are seeing year-on-year stability as well as fast-moving inventory and a reduction in distressed sales, which is all good news.

This is a healthy market, a market in which to make a leap, and a market ideal for those looking towards a Sarasota investment property.

Any questions? Call Lee at 941.587.0740.

This month I made my annual pilgrimage to the International Builders Show in Orlando and was fascinated to see the latest innovations, materials, and trends shaping residential and multi-family construction.

Watch my short video below if you’d like to see my takeaways from this great event.

This year the message coming through loud and clear is that consumers want a better quality of life, for less money, and with less footprint. This ties in with national and international trends for down-sizing, sustainability, and future-thinking, and was reflected in some of the great ideas at the show.

The Best Products and Future Indicators

I saw some innovative ideas, all of which are designed to enhance the homeowner’s experience. Here are my favorites:

• An intriguing pneumatic tube elevator which can be retro-fitted in multi-story homes, making them accessible to all.
• Great electric fireplaces. Eighty-five percent of people want a fireplace in their home so these are a great choice for energy-efficient heating in the cooler months, as well as providing desirable year-round ambiance.
• I was excited to see the air conditioning and heating company, Lennox, has now created a system which works entirely from solar panels. With this in place homeowners can be entirely free of the utility company while enjoying a climatically controlled home.
• Another great design was from Anywhere Solar, who are making solar and wind-powered charging devices. You can leave their charger outside all day and then charge your phone or iPad on it at night, courtesy of mother nature.

Green and Clean Continues to Lead the Way

The most interesting ideas were those which were enabling consumers to harness natural energy or to use energy better. Over the next few years, alternative energy options are going to become integrated into the items that we use in our everyday lives.

Today’s home-buyers are already demonstrating willingness to pay for items that will decrease their cost of operating, while improving their quality of life, and that’s good news for the future for all of us in my opinion.

“Learn from yesterday, live for today, hope for tomorrow.” – Albert Einstein

And here in Sarasota I’m pleased to say there is much to learn from the market in 2011, much to enjoy about living the Sarasota lifestyle right now, and plenty of positive indicators for a great 2012.

The Hot Niche Proved Itself, As Predicted

Today’s video couldn’t be a better example of just how fabulous Sarasota living can be. We filmed from the back yard of one of my newest listings, a spectacular 6 bedroom, 6 ½ bathrooms and almost 6500 square feet property in a dream location right on the beach here on Siesta Key.

This property is just one example of the luxury market in Sarasota, which, as I wrote about at the end of Q1, has proved itself the hot niche in which to achieve value this year. And as we enter 2012 that still holds true: the luxury market has the most value available for buyers with a little more than two years of inventory.

Luxury Property is Changing Hands

One of the segments I specialize in is Gulf-front luxury living and in the past week, four of those properties went under contract. They were listed from $2.9m to $7.8m. This is another validation that people are comfortable with making a significant financial investment in the real estate market in Sarasota.

But if there was one thing the market was also full of this year, it was speculation. The rumor mills were in full swing, and the peoples’ impressions of the market were somewhat volatile. Let’s look at what really happened.

So, The Real Facts for 2011:

• The number of properties sold increased by 6.6% from 2010. Over 9500 properties changed hands. This is a very healthy number. I would like to see a number in this range for 2012.
• Distressed sales made up 37% of the total market. This was down from 2010 (which is a good thing). In fact, there were 5½% fewer distressed sales. It would be great for this trend to continue as well.
• Historically, one of the selling points of Sarasota has been its affordability. More than 2/3 of all properties sold are listed under $200,000.

Overall it’s been a great, steady year in the Sarasota real estate market, and exactly what was needed after the tumultuous preceding couple of years. There was a lot of panic and hysteria in every facet of the media this year, but the facts speak for themselves and I am extremely positive going forward into 2012.

Educated, Engaged and Active Buyers

I am also buoyed by the interest level of buyers educating themselves about Sarasota and the market, so they’re ready to purchase when a good lifestyle match comes on the market.

As I wrote about in August, the market can be a fishy business and after drastic re-pricing and drastic reversal, the Sarasota real estate market does now offer some good buys, but buyers have to be sharp, well-informed and ready to move fast when that perfect property comes along.

Sarasota Lifestyle On the Up

Finally, like many communities in the United States, Sarasota has felt the effect of the housing market and economic downturn. However, while the sunsets are still magnificent, the community is even better today than it was 5 years ago.

As I wrote about in September – despite fear mongering – Sarasota lifestyle is definitely on the up. There are better restaurants and more parks, and I believe that the quality of life has improved. All the more reason to start living in Sarasota today.

If I can help you in any way with a real estate decision, call me at 941.587.0740.

Today I filmed the video below from one of my newest listings: a new construction in Southside Village located in the beautiful neighborhood of West of Trail.

While the best values in the market continue to be homes that need moderate to extreme renovation, demand has been increasing for new homes in Sarasota’s most desirable neighborhoods.

Cost Efficient, Energy Efficient, Lifestyle Efficient

The catalyst for this has been the re-pricing of land and properties we’ve seen in recent years, where the houses have become functionally obsolete. As a rule of thumb: once the land value becomes 70% or more of the total property’s value it is opportune to build new.

Some of the reasons to build new also include comfort and livability. Today’s new home buyers like larger bathrooms and closets. However, more importantly, they like the higher ceilings and greater openness that comes with a new home. Another focal point of the house, the kitchen, has now been redesigned and accessorized to stand next to or to replace the living room in today’s new builds.

Cash and Eco Savings on New Homes

Another reason to buy new is a much lower cost of ownership. Insurance and energy costs will be significantly lower in a new home. For example, the insurance on a new home can be 30-60% lower than a house built just 10 years ago.

With greater emphasis on energy conservation and more innovation in building materials – utility bills can be, at the very least, 30% lower.

A Brand New Start

Finally, a new house just feels new and fresh. For some, being the first family to live in a new house and make it their home is incredibly rewarding. And during this season of giving – maybe it’s your time to give yourself the gift of a new home: 941.587.0740.

I maintain that the two primary reasons people come to visit and then relocate to Sarasota are the weather and water. While the beaches get a lot of press, it is the water of Sarasota Bay that gets heavily used by boaters, skiers and kayakers.

Watch my video about the immense value Sarasota Bay brings to both the Sarasota lifestyle and the Sarasota Real Estate market below.

Sarasota Bay – An Incredible Natural Resource on Our Doorsteps

Sarasota Bay is a 56 mile long coastal lagoon. It is a haven for birds and fish as they grow and develop as well as a habitat for our area manatees and dolphins.

In fact, due to good stewardship, the acreage of sea grasses is greater now than in the 1950’s and that is great news for the marine life and us, especially since 70-80% of the oxygen in the atmosphere comes from marine plants.

Because Sarasota is committed to preserving this great resource, Sarasota Bay is just one of 28 bodies of water in the United States that is recognized by the national estuary program.

Our Waterways: Boosting the Sarasota Real Estate Market and Protecting Investments

There are many ways to enjoy this incredible resource, from owning a home to taking one of the free kayak tours beginning December 3. Clearly this asset has both a positive effect on real estate values as well as our life here in Sarasota. There is no more waterfront being created which is why during our downturn waterfront property still out performed the alternative.
Call Lee with any question: 941.587.0740.

Today, we filmed the video below at the site of one of my listings. Next week the scene there will be very different, as a crew from Courtney Cox’s ABC television show, Cougar Town, will be there on location filming!

Fall in Sarasota, Rise in the Property Market

It’s October in Sarasota and that means cooler breezes and open windows. It also means it’s time to look back and see what’s happened during the third quarter 2011. There are two very apparent trends: first, properties are coming on the market, and going to contract, very very quickly.

This is because there are a lot of buyers in the market, and they’ve been here for a while. They’re doing a lot of research and due diligence, and when a good match comes to market they’re moving forward fast. A few weeks ago I represented a buyer in a transaction, and within 48 hours, there were multiple offers on the property. All of them were over the listing price.

Sarasota Real Estate Market: Good News All Round

The second noticeable trend is that Sarasota properties that have been marinating on the market for quite some time are also going to contract even closing. For most, the selling price is actually very close to the asking price, which would be a contraindication for the time it spent on the market

The three big statistics I have for this quarter are:

• Sales are up 13% compared to the same period in 2010.
• Distressed sales have actually gone down 4 quarters in a row, they now make up 37% of the market.
• Inventory of luxury homes edged up slightly to 21 months, this is down significantly on the past several years, but actually up slightly on the previous quarter.

Overall, as I’ve said previously, there are a lot of buyers on the market. They’re active, they’re searching out areas, so when the right match comes on the market they’re moving forward very, very, quickly. I for one am delighted to see so many people getting the result they want.

Please call, if I can help you get your desired results: 941.587.0740.

“When written in Chinese, the word ‘crisis’ is composed of two characters – one represents danger, and the other represents opportunity.” ~ John F. Kennedy

The financial crisis of the last few years has offered some incredible opportunities to reevaluate our priorities, and I’ve seen this played out in our Sarasota community. While people may not have been able to choose the external financial climate, they have been able to choose how they respond to it. And many people’s responses have been to make changes for the better, whether in health, real estate or any other area of their lives. View my video below for my take on lessons from the last couple years:

But despite improvement in the property market, the job market, and the lowest interest rates in sixty years, negative thinking still abounds. I read a headline this week that, despite figures to the contrary, peoples’ perception is that we’re in another recession.

In today’s instant gratification, media driven, sensationalist world, we are often making decisions based on hearsay and rumors when in fact the numbers say something different.

“It’s not what you look at that matters, it’s what you see.” ~ Henry David Thoreau

My own local perception is that there seem to be more people out and about (and spending money) than last year. So I decided to ask three local businesses to get some real information about how their numbers look in comparison to 2010.

• Our favorite grocery store:
  Numbers are up, sales are up. They’re not sure exactly why, but customers seem happier and in a better place.
• In one of our favorite local restaurants:
  Sales are about the same level as this time last year. The regulars are still regulars and still place the same orders. Revenue has increased from new streams including outside catering.
• At the dentist:
  Patients are showing up for their regular cleanings, however, some are putting off bigger ticket items like fillings, and crowns. While their practice is growing there are patients that have left Sarasota because of a better job market elsewhere.

Just from this anecdotal information from a cross section of local businesses, it can be concluded that things are stable if not improving.

What Does That Mean for the Real Estate Market Here?

It remains difficult to make a bold generalization about Sarasota’s economy, but there are steady date points to support that it is improving as is our Sarasota real estate.

Chinese wisdom and JFK notwithstanding, the best conclusions must be made based on what is right for you and your family in the present, and opportunities chosen accordingly. One thing the last few years has certainly given me the opportunity to reflect on is that – crisis or no crisis – quality of life is ultimately the most important thing.