Short sales decrease sharply in Sarasota

SARASOTA — Short sales of homes in Sarasota County have begun to evaporate.

A short sale, where the sale price of a home is less than the mortgage or other debts on the property, was a popular byproduct of the recession. But only 32 sales out of 787 total residential transactions in Sarasota County in February were of a short sale variety, according to Sarasota Association of Realtors data. That's a drop from 98 short sales in February 2013.

Short sales have actually been on the downswing since August 2013, the association reports, and began to drop of significantly in January 2014, when then were 27 short sales documented in the county. In June 2010, one of the lowest points of the economic downturn, short sales accounted for almost 200 of the 933 total sales, according to a release from the association. Foreclosure sales represented another 207 transactions that month.

“The lack of short sales,” states the release, “may reflect the growing reluctance of mortgage lenders and banks to negotiate with delinquent property owners as the economy emerges from the great recession and the unemployment picture in Florida and across the nation improves.”

The overall real estate sales market in the county is otherwise stable. The total of 787 sales in February dropped slightly, 2.4%, from February 2013. But it was 20 more sales than the 767 total transactions from January, the association says. The median sale price for single-family homes rose 10.3% year-over-year in February. The median sale price for condos increased 6.3% year-over-year.

“If you had to describe the market with one word, it would certainly be steady,” Sarasota Association of Realtors President Peter Crowley says in the release. “Volatility in real estate isn't historically a healthy climate, so we don't really mind the current state of the market. Sales levels are still quite high, and the moderation in median sales prices means the market has found a good equilibrium between buyers and sellers. We hope for the traditional price appreciation that this area normally enjoys as the season progresses.”