Sunday, May 09, 2010

5 condos sold in 10 days! Sarasota and Bradenton Condo markets are getting hot!

This has been quite a busy May especially for entry level condos.


Prices have dropped so dramatically that a small condo in Sarasota or Bradenton for investment, or as a second home makes a lot of sense.


Prices of most of these "entry level" condos are at 50% to 25% of their peak values!


For example, I just put a condo in Sarasota pending that was listed for 49,900.  This price was market value based on recent sales, and other active units that are in the complex.  This unit had sold new for over 180,000 5 years ago!


One factor that seems challenging is that as prices of these type of units go down their condo fees tend to be the biggest hurtle for prospective buyers. As an experienced Realtor in the Bradenton and Sarasota market I hear this over and over.  Buyer's like the low prices, but the condo fees seem enormous compared to the low, low prices of the condos.

When the condo was priced for 180,000, 300 dollars a month seems reasonable, but with it priced at 50,000 that 300 dollars seems huge.  

The prices for condos in Sarasota have dropped so dramatically because of the lack of financing options for "primary home buyers", and first time buyers.  

Because of the high proportion of rentals, and the potential issues with foreclosures, many lenders do not write loans for these units.  No loans, means that only cash buyers can purchase, which lowers the buyer pool.  The price points have dropped so far now that someone can buy a condo in Sarasota for cash for around 50,000.  Then rent it out, and have that 50,000 dollars back out in rental income in 5-10 years.  That  does not account for any potential future market appreciation either.

If you have been considering buying an entry level condo in Sarasota or Bradenton, you should be jumping in now.  We are out of the winter season, but I am seeing that any well priced condos are getting sold quickly.

Please give me a call if you are interested to see all the best buys in the Sarasota and Bradenton real estate markets.


Joe Murphy, broker-associate

Coldwell Banker Residential Real Estate


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When you need the help of a FULL-TIME, Top-Producing, agent in Manatee County please now I am here to help.

Call/Text/email me anytime.  I am an experienced agent that can deal with short sales, bank owned homes, vacation homes, and everything in between.

Joe Murphy, Broker-Associate 

Coldwell Banker Residential Real Estate

941-780-3260 cell

Posted via email from Joe's posterous

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