SAR announces 27% increase in Sales - Is it accurate?
Posted by Sarasota Foreclosures.com on Thursday, July 15th, 2010 at 3:29pm.  |
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Non-foreclosure sales stagnant while foreclosures soar
Today the Sarasota Association of Realtors (SAR) released statistics for June 2010 sales. As I expected the headline was sales are up (27.2 %) compared to June 2009. Understandably, SAR always tries to put a positive spin on monthly statistics.
SAR reported; "Property sales in June 2010 in the Sarasota market once again topped the 700 mark, with 776 total sales - once again the highest of the year and the highest total since December 2005 when 784 properties were sold. The figure of 776 sales topped the May 2010 total of 766, the previous high, and was 27.2 percent higher than June 2009, when only 610 homes and condos sold."
I checked MLS for all of Sarasota county, all sales, and came up with, 1001 total closing in June and 861 contracts written. For properties limited to a "Sarasota" address and there were 534 closings and 450 contracts written. Since, the figures from SAR are so different the numbers that I report, I called SAR to ask exactly what their definition of "Sarasota market" was.
I was impressed to get my call quickly returned. I was told that SAR does not report on sales in any certain geographic area. They report sales made by members of SAR. Therefore, if a realtor who is a member of SAR sells a home in North Port then it is reported as a Sarasota area sale. Also, if a realtor from Bradenton (or member of any other association) sells a property in Sarasota then it is not reported.
So SAR is not really reporting on "Sarasota sales" they are reporting sales made by members of SAR no matter where the property is located. SAR does not report on sales in Sarasota made by non SAR members. I point this out because I don't want to compare apples to oranges. As long as the same statistic is compared, month after month, and year after year, their statistics are valid.
That said, the primary statistic I have been interested in tracking is the number of foreclosure sales compared to non-foreclosure sales. (I define both short sales and bank owned sales as total foreclosure sales, and I track all property types including commercial, land and income property (multi-family).
Below are the number of sales, foreclosure vs. non-foreclosures, for Sarasota, Manatee, and Charlotte counties, for June 2009 vs. June 2010. Also, I have displayed sales as both "closings" and "contracts written". I believe contracts written is as important if not a better indication of the months activity than closings.
In June 2009 there were 822 closings in Sarasota county, 576 of these were non-foreclosures. In June of 2010 there were 1,001 total closings and 587 were non-foreclosures. So while non-foreclosure sales increased by 11 units or 2%, foreclosure closings increased from 246 to 414 properties, or 69.5% increase.
Comparing contracts written instead of closings the results are even more dramatic. In June of 2009, 788 properties were contracted in Sarasota County, 300 were foreclosures and 488 were non-foreclosures. In June of 2010, 861 properties were contracted in Sarasota county 468 were foreclosures and 393 were non foreclosures.
In summary, the number of non-foreclosure closings in June 2009 compared to June of 2010 was almost identical. The number of non-foreclosure contracts written in June 2009 decreased by almost 20% from 488 properties in 06/09 to 393 contracts in 06/10.
COUNTY: | Sarasota | Manatee | Charlotte |
Total sales closed June 2009 | 822 | 466 | 436 |
| Foreclosures closed June 2009 | 246 | 144 | 135 |
| Non-Foreclsoures closed June 2009 | 576 | 322 | 301 |
| Total sales contracted June 2009 | 788 | 450 | 450 |
| Foreclosures contracted June 2009 | 300 | 177 | 153 |
| Non-foreclosure contracted June 2009 | 488 | 273 | 297 |
| Total sales closed June 2010 | 1001 | 603 | 462 |
| Foreclosures closed June 2010 | 414 | 277 | 177 |
Non-Foreclsoures closed June 2010 | 587 | 326 | 285 |
| Total sales contracted June 2010 | 861 | 631 | 461 |
| Foreclosures contracted June 2010 | 468 | 386 | 234 |
| Non-foreclosures contracted June 2010 | 393 | 245 | 227 |
Adam Robinson, Broker
SarasotaForeclosures.com Inc.
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Posted on Friday, July 16th, 2010 at 8:31 AM.