Economist examines home sales woes

LAKEWOOD RANCH, Fla. – Sept. 17, 2007 – Owners have dropped the prices of their homes in Bradenton and Sarasota up to 20 percent from the explosive housing boom of 2004 and 2005.

July’s median price of houses sold in Bradenton and Sarasota was roughly $277,000, a bargain for the beaches, sunshine, golf, fishing and general location that the region offers, National Association of Realtors senior economist Lawrence Yun said Friday.

Yun’s remarks were addressed to the 200 who attended the 2007 Sarasota International Real Estate Congress at Lakewood Ranch Country Club.

So, why aren’t more buyers buying?

It was the $64 million question at the congress, which was held for the first time in Bradenton-Sarasota area, drawing real estate agents from all over the world with international expertise.

There has been a negative flow of news – like foreclosures, hurricanes, property taxes and insurance increases – that has left buyers with the impression that the bottom is far from being hit, Yun said.

“They have jobs, their income is rising but they are saying, ‘I’m going to step back,’ “ Yun said.

So, what does Yun say real estate agents can do to help matters?

Tell Florida’s story, he said.

Yes, foreclosures have risen fast but they are now just at the national level, Yun said.

As for hurricanes that scare some buyers, only six Category 3 or greater storms have landed on Florida’s mainland from 1950 to 2003, although eight touched down in between 2004 and 2005, Yun said.

“The chances of that happening again are low,” Yun said of the disastrous two-year period. “I would not be surprised to see insurance companies coming in to grab profits.”

Yun predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010, once people again realize that Florida’s assets are unique.

Yun said it’s the perfect time to buy while buyers are sleeping.

“With all the wealth that is here, it would not be wrong to consider that the Bradenton-Sarasota market might even be a little under-valued,” Yun said.

Others echoed Yun’s comments.

“Everyone I know with money to spend has made money on a down-trend,” said Budge Huskey, a senior vice president with NRT Incorporated and a former president and chief operating officer of Coldwell Banker Residential Real Estate.

When Carla Rayman, chairwoman of the Sarasota Association of Realtors International Council got up to address the audience, she drew applause when she put on sunglasses.

“The future looks bright to me,” Rayman said.

Copyright © 2007 The Bradenton Herald, Fla., Richard Dymond. Distributed by McClatchy-Tribune Information Services.