Update on Area Foreclosures

September home sales soared 42 percent in the Sarasota-Bradenton market and 56 percent in Charlotte County-North Port, spurred again by bargain-priced foreclosures and the $8,000 first-time homebuyers tax credit.

Even with distressed property so prevalent in the mix, prices held flat to the north and rose 7 percent month over month to the south.

Lower-priced homes remain in strong demand.

"We are red-hot below the $200,000 mark and if you have something nice below $100,000 you can expect multiple offers," said Charryl Youman, vice president of the Venice Chapter of the Women's Council of Realtors. "This is an opportunistic market for buyers like I've never seen."

The strong regional performance came against the backdrop of statewide sales that rose 34 percent. Sales across the nation rose 9.4 percent last month -- the highest level in two years -- as buyers scrambled to complete their deals before the tax credit expires.

But the strong performance in Southwest Florida continued the debate about whether pricing has bottomed.

"Have we reached the bottom in Venice in the lower price range? Yes, we have," said Youman, an agent with Prudential Florida Realty. "Where we haven't seen people line up for is anything above $400,000."

She cited the Gran Paradiso development in Venice as an example of pricing pressures. Originally listed at $626,000, the furnished and decorated three-bedroom, two-bath homes with a pool and lake view have been reduced to $389,000.

Youman has sold 41 homes in Sarasota County this year -- nearly half within the last 90 days.

But others remain unconvinced that such positive signs signal that housing has exited the doldrums, especially with rapidly rising unemployment.

"I don't know if we've seen anything dramatically different with these new numbers," said Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida. "Activity is up, but prices are not clearly finding the bottom yet."

A true turnaround in Florida's housing market could be some time away, he said.

"Until we get that stabilization of prices and start heading north instead of south, it's hard to say that we're talking about a housing market that's back in balance," Snaith said.

'A mini-boom'

Though sales rose 34 percent statewide, pricing slipped month-over-month, down about 4 percent from $142,000 in August, data released Friday by the Florida Association of Realtors showed.

The median sales price nationally was $174,900, slightly lower than August's $177,300.

Closer to home, foreclosures in Sarasota are beginning to feature more homes at the upper end, said Adam Robinson, with Siesta Key-based Key Realty.

"We're seeing more of the higher-end properties coming on the market, though that's not what's selling right now," Robinson said of his territory. "Anything under $450,000 is where the buyers are, and under $250,000 you are usually seeing multiple offers."

One reason it is proving difficult to move high-end properties is financing. Jumbo loans are not easy to come by, so even a home discounted from $1 million to $700,000 is a tough sell because buyers still need 20 percent down and face a high interest rate if they can even get the loan.

"Even if you have excellent credit, it remains difficult," Robinson said. "If they don't have cash, they could have a challenge."

Is the worst over?

While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst is not over for home values.

The rising jobless rate, currently at 9.8 percent nationally and 12.5 percent in Southwest Florida, is likely to put more people behind on their mortgages and push more into foreclosure.

"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."

Whatever the future may hold, Betty Grambell is enjoying the moment. The manager with Bradenton's Wagner Realty said out-of-state buyers are flooding her with phone calls and e-mails.

"They're hearing that it is a good time to buy and they have taken care of their financial situations up north and they are in a buy mode," she said.

Sales activity for Wagner is on track to double this month when compared with September as people not only rush on the tax credit, but to be in their homes by the end of the year so they can claim a homestead exemption.

"I'm pleasantly surprised," she said. "I'm really looking forward to a good month."

Information from The Associated Press was used in this story.
Courtesy of HeraldTribune.com