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18 | Michael Saunders & Company ith 2013 already in the record books as Southwest Florida's best year ever in terms of the total number of properties sold, it was clear from the outset that 2014 would have a very tough act to follow. Nevertheless sales to date this year have managed to stay ever-so-slightly ahead of last year's record-setting pace. To no one's great surprise, such over-the- top demand has put a strain on local housing supplies causing home prices to climb—not only here but in markets across the U.S. Still, buyers with affordability concerns can take great comfort from the May 2014 Home Price Index Report from Core Logic. According to the study, the median price for a home in the Sarasota- Manatee region is still as much as 34.3% lower than in September 2006, when home prices throughout Florida peaked. Plus, a moderation in these price increases is widely forecast over the next year as home equity levels rise and more properties are placed the market; which is expected to keep the region's housing recovery sustainable and on track. The market for new construction has also experienced a significant rebound throughout Southwest Florida. As an example, building permits in Sarasota County for the first six months of 2014 were up by 14% compared with 2013; and by 69% compared with the same six months of 2012. Such noteworthy advancements in our residential real estate market are unquestionably tied to corresponding improvements in the economy and labor market—both locally and in our prime northern feeder markets. People simply don't purchase properties anywhere at any price without the security of a stable job and steady income. The recovery of individual investment portfolios has also been a major contributing factor to rising home sales across our region—particularly for properties in the higher price ranges. Since its recessionary bottom in March of 2009, the closely-watched S&P 500 has nearly tripled from 676.53 to 1,980.23 (as of July 29th). Half of that restored growth has taken place in just the past two years. Meanwhile, the Dow Jones Industrial Average has been trending above 17,000 for the first time in history, nearly doubling its recessionary low of 8,829; and the NASDAQ is at its highest level since the year 2000. All this has placed vast sums of discretionary income back into play, as many buyers appear to be swapping their paper investments for more tangible, useable and enjoyable assets. This helps explain why two-thirds of the property transactions facilitated by agents of Michael Saunders & Company in 2013 involved all cash. Local tourism, which has functioned for decades as a major source of buyers for our region, has similarly rocketed off the charts in recent years. Now in addition to our legendary beaches and arts venues, tens of thousands of tourists are congregating in Southwest Florida to attend major international sporting events. And when the Mall at University Town Center celebrates its grand opening in October, the region is expected to become a major destination for retail tourism as well. The only enclosed mall to open in the United States this year, it has become a magnet for some of the toniest names in luxury retail. Looking ahead, based on strong performances throughout virtually every sector of the Southwest Florida economy, property sales throughout the remainder of 2014 and into 2015 are expected to remain in record territory. 8-Year Inventory Trend Year-over-Year All Property Types - $1 Million & UP Sarasota, Manatee and Charlotte Counties Combined Record Level Property Sales Expected to Spill into 2014 SaundersBEST | MARKET REPORT W

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