Cape Coral may have been ground zero for the subprime meltdown as reported by the Economist, but Sarasota, Florida is the poster child for the luxury home market correction and a great indicator of trends for similar markets around the country.
2009 Year to Date Market Statistics:
1. 84 Closed Sales with original list price over 1 Million Dollars as compared to 154 during the same period in 2008.
2. Average of 18 closings per month.
3. 36 months of inventory based on current absorption.
4. Properties closing for 80% of most recent list price.
Key Take Aways:
1. Inventory is no longer increasing but days on market is static due to unit volume 50% below 2008.
2. Prices are still decreasing.
3. 50 of 84 year to date transactions were cash deals.
4. In many instances property selling for 40% to 50% below the original asking price.