MetroStudy Report - Sarasota, FL– February 1, 2012 - The North Port/Bradenton/Sarasota market should see an improvement in housing production in 2012, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

The North Port/Bradenton/Sarasota-Bradenton MSA added 2,100 jobs (Annual Rate) through November based on the Bureau of Labor Statistics report for 4Q11, an annual growth rate of 0.9%, placing it 101st out of the 362 MSAs in terms of job creation. The unemployment rate was 10.1%, well above the national average of 8.5%. “The local market is beginning to show signs of job creation. However, it remains highly likely that we will continue to see the local unemployment rate higher than the national average over the next year or so,” said Tony Polito, director of Metrostudy’s Sarasota Region.

During 4Q11, 485 single family units were started, an increase of 10% compared to 4Q10. “We anticipate between 5 and 15% growth in housing starts in 2012 or somewhere between 2,000 and 2,200 new housing starts in subdivisions,” said Polito. The annual starts rate rose to 1,932 homes, 2.2% higher than last year’s rate. There were 531 closings (actual move-ins) during the quarter, 16% lower than 4Q10. However, the annual closings rate stood at 1,985 homes, 5.1% lower than the 4Q10 annual pace.

Inventory decreased compared to 4Q10 to a 7.2-month supply, down 4.2%. Finished vacant inventory decreased to 395 units, down 28.4% compared to 4Q10, representing a 2.4 month supply. This was down from 3.2 months during 4Q10. “The number has been dropping since 4Q06,” said Polito. “The reduced finished vacant inventory is typically a first sign of future housing start increases.”

“For 2012, we are forecasting a modest increase in new home starts. The major factors going forward will be: A) retiree sentiment and northern real estate markets and B) consumer confidence and continued improvement in the local job market,” said Polito.

For information contact:
Tony Polito @ 813.888.5151 x811
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