Last month, 410 homes changed hands in the Sarasota-Bradenton market, one unit better than April and a 7 percent improvement from May 2010.

That was a significant achievement, considering that May 2010 numbers were driven by expiring federal tax credits.

In Charlotte County-North Port, condo sales were down 12 percent from the 68 sold in April, but still up 25 percent from May 2010.

Statewide, sales were up 17 percent when compared with last year, as 14 of 19 largest markets reported increased sales.

The numbers would have been even better if banks loosened their restriction on lending in condo communities that have too many investors or depleted reserves.

"The irony is that banks say there are too many investors in some complexes, so they won't lend to end-users and snowbirds," McCourtney said. "But if they loaned to end-users and snowbirds, there wouldn't be as many investors."

Meanwhile, because of the strong sales and continued delays in foreclosed properties coming on the market, inventories of unsold condos continued to drop.

In Sarasota and Manatee counties, 2,836 condos were on the market at the end of May -- a 55 percent drop from the 6,262 units at the end of May 2007.

Instead of a more than 20-month supply, there is less than an eight-month supply.

Despite these positive trends in sales and inventories, prices are still flat to down in Southwest Florida.

In Sarasota-Bradenton, the median price rose slightly, to $142,900 from $142,300 in April, but fell 6 percent from $152,800 a year ago.

In Charlotte County-North Port, the median was $80,000, down 6 percent from April and 9 percent lower than a year ago.

The statewide median was up 7 percent from April and 2 percent from a year ago.

Again, McCourtney believes that banks could make a difference.

"I had a client with an 800 credit score who wanted to buy a golf course condo in Venice for $117,000," McCourtney said. "But the bank denied the loan because it said the condo association was not strong enough in terms of its reserves. It had just spent money to redo the pool and reserve levels had fallen.

"It's ridiculous," McCourtney said. "Even borrowers with great credit histories cannot get loans unless the complex fits into a magical little matrix."

For a borrower to secure a loan, a complex has to have the proper ratio of primary residents to investors. The result is that buyers have to have cash to complete condo deals and the buyers with the most cash are investors, she said.

"Seventy-six percent of recent condo sales on Siesta Key were cash transactions, while 89 percent of transactions on Longboat Key were cash," McCourtney said.

"The bank will tell you the investor is the first to stop paying the association fees, not the primary home owner," McCourtney said. "However, making lending unavailable or unattractive to condo buyers who want to retire three to six months out of the year, or come down for a few weeks out of the year and rent the remainder of the year, leaves the market vulnerable to investors. The investor is typically a cash buyer."

In the Charlotte County area the mls Detectives team reports that inventory levels have continued to decrease in not only condominium units but single family homes as well.

For a current list of foreclosures, short sales, or non-stressed sales, contact the mlsDetectives team of Curtis Mellon, Mike Federau or Dan McKinney.