The Sarasota Boom By the Numbers

I was recently out with a prospective buyer who was very interested in a particular country club in the area. Brand new homes with high end upgrades, gorgeous amenities and a lush environment, this is a special oasis. He wondered, therefore - why was so much of the neighborhood for sale? Was there something wrong with the property he wasn't aware of?

The answer is fairly simple, and it lies in the numbers. In a study by the National Association of Realtors, much of the 2005 real estate boom was fueled not by "traditional" buyers, but by speculation and investment. Consider this fact - almost 40% of the homes and condos bought last year (nearly 3.35 million properties) were bought by people who had little to no intention of living in them full time. Approximately 2/3 of those were strictly investments while the remainder were presumed "vacation homes". In Florida statewide, traditionally 76% of all single family homeowners lived in the home they bought. In 2004-5, however, only 55% of buyers claimed that home as a residence, leaving nearly half as investments.

What does all this mean? Certainly, many people rightfully view this area as one that people will continue to flock to, making investments attractive. As long as the inventory is healthy, fueled by investors looking to cash in on their investment, a buyer looking for a residence or future retirement home is in a terrific position to find a great home in the Sarasota area.