Is the Sarasota Real Estate Bubble Real?

The short answer is yes and no. There is no doubt that speculators and non-motivated property owners have created an environment where buyers are more cautious than ever when they are considering a property's list price and its value.

Sure we live in paradise, a community that is desirable because it is a small coastal town that in addition to the incredible beaches, a near perfect climate and beautiful vistas, offers big city amenities such as fine dining, theatre, opera, ballet and diversity. And yes, people are willing to pay a premium to live here (read "pay a premium" not "get raked over the coals").

Too often over the past few years, we've read how buyer A purchased property A at such and such a price, and then turned around and sold it a short time later for a significant profit. At first it excited us because we saw opportunities - opportunities to make $ in a number of ways - but here we are months later with less real estate transactions and a whole lot more properties available.

Are buyers afraid that they be the victim of aggressive investors and/or greedy homeowners? Are there less transactions because there are less home buyers or less speculators buying? Are there more properties available because more people are moving out of Sarasota or because more speculators are deciding it's time to "cash in"?

My guess is that it is a little bit of everything. In addition to reading, discussing and hearing - ad nauseum - how much money has been made in real estate, we've had two record hurricane seasons (and we have the news media reminding us daily of that), as well as rising insurance rates. Naturally, people are cautious, and though this is causing a pause in the frenetic real estate market here in Sarasota, I don't believe it defines a bubble.

The fact remains that this is paradise and it is a glorious place to live, a place that very few places in America can compare favorably to. This pause may help "correct prices" in the market. People who want to earn their retirement $ in one real estate transaction may have to be a little less zealous. Well heeled investors might be better served investing in affordable housing than trying to flip properties. But in the end, real estate in Sarasota is desirable and people are going to continue to buy here. They are even going to continue to be willing to pay a premium to live here; they simply will want to know that they are receiving value and are not victims of greed.

There is still a great deal of value here: many neighborhoods that continue to appreciate, a few neighborhoods that are "up and coming" and beginning to appreciate, condo projects that are nearing completion where contracts will be coming due and people will want to sell quickly, waterfront homes that are being built incorporating stunning architecture...

Sarasota is special. Real Estate in Sarasota is special. This separates us from the rest of the country and explains that while we are in a slight pause but "there is no bubble".

Sarasota architecture ~ SOMETHING SPECIAL

When I think of what makes Sarasota a special place, one of the things that come to mind is the diversity in its architecture. Sarasota is no "cookie-cutter" community. You don't have to travel far to witness this diversity; you can see a number of distinguishable architecture styles all within a mile radius of downtown Sarasota. It is my opinion that this is large contributor to the rich fabric of our city ... What sets Sarasota apart from other Florida cities and makes it culturally interesting.

When I first moved to Sarasota, I heard many people refer to "the Sarasota school of architecture" when describing a desired home design or a specific neighborhood; at the time I had no idea what they were speaking of. Today, I feel privileged to have been introduced to this style of architecture and to two of the homes designed by Paul Rudolph. Specifically the "Umbrella House" and the "Revere House". An incredible visionary and talent, Mr. Rudolph's legacy left Sarasota a far more interesting place.

This weekend (May 6th and 7th) residents and guests of Sarasota have a unique opportunity to learn more about the history of Sarasota's architecture. The Herald -Tribune is hosting an "Ask the Experts" real estate forum on Saturday and Sunday at their new office on Main Street. The topic on Saturday is "Architecture Then and Now" and on Sunday, "Working With an Architect". Admission is $20.00 on Saturday and free on Sunday. The panel includes accomplished area architects: Tim Seibert, Guy Peterson, Thorning Little, Carl Abbot, Mike Carlson and Joe King. Call 361-4805 for more info. If you can't make it, I'll be sure to share the most exciting of what I learn with you next week!