Inventory in North Port is low. At the end of August 2011, there was only a 4 month supply, down from a readjusted 4.5 month supply in July. A 6 month supply is considered “neutral”, i.e., a fairly balanced market between sellers and buyers. There were 548 homes for sale on August 31, 2011, 37% less homes for sale than the 868 available one year ago. A total of 138 properties sold in August 2011, of which 134 homes, 97% of all closed sales, were for less than $200,000:
- 80 homes sold for less than $100,000, 58% of all sales.
- 50 homes sold between $100,000 and $199,999, 36% of all sales.
- 4 homes sold between $200,000 and $299,999, 3% of all sales.
Distressed Properties --- short sale and bank owned --- continue to have a significant impact on North Port sales and values. In August, 31% of all homes for sale were Distressed Properties, close to the 33% last month. 55% of all sales in August were Distressed Properties, as compared to 60% last month. Identified below is the average price per square foot, in August, for sales under $200,000:
- Under $100,000: Non-Distressed - $58/sq. ft. | Distressed - $47/sq. ft.
- Under $200,000: Non-Distressed - $70/sq. ft. | Distressed - $62/sq. ft.
As reported in last month’s State of the North Port Real Estate Market Report, every indication is that over the next 6 months banks will be releasing a great number of Distressed Properties to market. If so, competition will intensify, which should create downward pressure on pricing. At a minimum, it is likely that prices and the market will bump along the bottom for quite some time. For non-cash buyers, if interest rates rise, their cost of financing will increase, depriving them of any real benefit due to lower pricing. If interest rates stay low, more investors will be bidding up prices because real estate will become a more attractive investment than the interest earned from other investments in a low interest rate environment. Accordingly, whether you are a seller or buyer, there is no benefit in waiting on the sidelines. Over the next few years this may prove to have been the opportune time to buy or sell.
The statistical data contained herein has been extracted from ©Trendgraphix, September 2011, and the Multiple Listing Service (“MLS”) from the Venice Area Board of REALTORS®.
