Tuesday, February 28, 2006

Sarasota New Construction


In case you have been wondering about the state of the real estate market in Sarasota and Bradenton Florida, the Sarasota Group reports that new construction continues to thrive in Sarasota and especially Manatee County today.

Between the two counties, builders and developers have submitted plans for 22,000+ new homes in 2005 with many more to come in 2006.

One reason builders remain bullish on the market - more than 1,000 people a day are moving to Florida. In addition, relatively speaking, interest rates continue to remain low.

The proposed new developments range in size. Lakewood Ranch alone plans to add 4,000+ homes. Check out areas along Buckeye Road in north Manatee County as well as Myakka City.

Plans have been submitted for more than for more than 14,000 single-family. Not all of these will be built necessarily. Builders and developers change their plans. Nevertheless, most will I think.

Manatee County has changed / eliminated sections of the planning code, making it more difficult to get developmental approval in some cases. Nevertheless, two facts remain certain - the baby-boomers are retiring by the millions and many are definitely coming to the sunshine. In addition, the snow keeps falling in Buffalo each year.

Of course, not all of the homes will be built at once either. Lakewood Ranch has been developing for more than 10 years for example. Similarly, Greyhawk Landing has also been in a 6-year build-out plan, with more to come. The approval process, which used to take months, can now require more than a year to complete.

There are other driving forces to this market. Investors who have ‘taken to the sidelines’ over the last 8 months have been slowly easing back into the market. What is not apparent, now, is whether they intend to hold or try to ‘flip’ and immediately sell.

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