Zip Codes 34285, 34292, 34293
By: Robert Goldman, PA, JD, REALTOR®
The number of homes for sale continues to drop. As of May 31st, there were only 788 homes for sale. That’s 8.9% less homes for sale than in April 2012, 27.7% less than May 2011, and 25.4% less than the same quarter one year ago. With 229 homes sold in March, and 217 pending (under contract), the result is a 3.4 month supply of available properties in Venice, based on closed sales, and a 3.6 month supply based on pended sales. The available inventory is at its lowest point since the real estate bubble burst. In May 2007, there was a 19.4 month supply of homes for sale. This year it hasn’t gone above 6.5 months. Six (6) to seven (7) months is considered a balanced market between buyers and sellers. If this pace continues, prices will likely increase.
Nevertheless, it is too early to call a trend. Whereas, median prices are beginning to react as one would expect when demand exceeds supply, the average price per square foot has leveled. The median price in May was $167,000. That’s 11.3% higher than the $150,000 median in April, and 7.7% higher than the $155,000 median in May 2011. However, the average price per square foot in May was $115, which is precisely the average price per square foot for the first five months of this year.
What is fair to say is that prices have stabilized, and are seeking higher ground. The uncertainty of economic conditions --- local, regional, national and international --- will weigh in on how it will play out. I think it will play out well. This remains a golden and special place to come to. Our Florida climate, combined with the security of the strength of the US market compared to foreign soil, should bode well for investors and closed-end buyers looking to take advantage of attractive pricing here in Venice and Southwest Florida. Demand is strong, supplies and interest rates are at historic lows, and buyers are plentiful. If you have a home to sell, now is a great time to do so.
