Regional housing showing some life

Hello everyone,
More decent news on our local real estate market as compared to the rest of thestate. I do believe in the "first in-first out" theory, meaning our market was the first to get hit as the market started its downward slide, and I do feel we will be the first to see recovery as well. Prices have shifted much quicker in the Sarasota market as compared to others, thus attracting the buyers who are looking for better value, particularly the foreign buyers. Here is a re-print of another Herald Tribune article in todays paper..... 2 positive articles about Sarasota real estate from the Tribune???? ...in 1 week????? Wow... that tells ya somethin!


Reprinted from Herald Tribune 11/29/2007
By STEPHEN FRATER and MICHAEL POLLICK
More homes sold in the Sarasota-Bradenton market in October than any place in Florida besides Jacksonville, Orlando and Tampa-St. Petersburg.It speaks to the depth of the malaise in the housing market in Florida, where sales dropped 29 percent when compared with the same month last year.But it also offers hope to some market watchers that perhaps Sarasota-Bradenton is emerging from the doldrums brought on by the 2004-05 housing rush faster than other places in the Sunshine State."First in will be the first out, and maybe we are seeing some signs of that in Sarasota's relatively good performance compared to the state as a whole," said Chuck McKenna, president of Sarasota's McKenna and Associates Realty.The action in Southwest Florida comes against the backdrop of an October decline in the national median sales price that was the largest on record and worries that the housing mess could tip the nation into a recession.Sellers in Sarasota-Bradenton moved 528 homes during October, a 17 percent decline compared with the same month last year. But major markets Miami and West Palm Beach-Boca Raton had only 367 and 450 sales, respectively.Prices in Sarasota-Bradenton, meanwhile, dropped 5 percent to $263,900. But that was better than September's median of $244,300, which was 15 percent below September 2006.The Charlotte County-North Port market continued to struggle. Only 168 homes sold there, 33 percent fewer than a year ago, while the median price dropped 11 percent to $183,300. But that was higher than September's median of $170,000.Analysts blamed the worsening housing slump nationally on the credit crunch that hit in August.The National Association of Realtors reported that national sales of existing single-family homes and condominiums dropped by 1.2 percent last month. The median price of a home sold dropped to $207,800, 5.1 percent less than a year ago.Florida's two coastsTo evaluate how Southwest Florida compares with the southeast part of the state, prices are the key, said Jack McCabe, a real estate consultant based in Deerfield Beach.At a median price of $263,900, the typical home now selling in Sarasota-Bradenton has fallen 23 percent from $340,700 two years ago.In contrast, the median sale price in the Miami metro area has fallen by only 3 percent. In Fort Lauderdale, today's median is only 4 percent less than two years ago, when prices were close to their peak."That is one of the reasons there are so few sales in South Florida as compared to a much smaller market like Sarasota," said McCabe. "Because there has been resistance by sellers -- they are still hoping to get those 2005 prices."Miami-Fort Lauderdale sellers only now are becoming more realistic in their asking prices."The price drops in Southeast Florida are going to happen in the next couple of years," McCabe said. "Whereas markets like Sarasota and Fort Myers, the price drops are already in progress."Southwest Florida Realtors pointed to some signs of improvement."The luxury market continues to sell, and with prices nearing a four-year low in many cases, the seasonal market is perceiving it truly is the time to buy," said Sue Wolverton, senior vice president for the Sarasota Bay Region for Coldwell Banker Residential Real Estate Inc. "It is difficult to say that we are at the bottom, but with renewed interest from the customers, we are already seeing dual offers on homes appropriately priced."Wolverton and Candy Swick, another Sarasota Realtor and broker, said there has been a higher level of interest from foreign buyers, particularly Canadians and Brits."The educated who are watching the statistics are discussing the euro's strength and the Canadian loonie's strength," Swick said.For Michael Saunders & Co., sales this October were 20.6 percent higher than a year ago."We are once again regularly fielding multiple offers on well-priced listings," said founder Michael Saunders, adding that appointments to look at properties are up 7 percent year-to-date. "So far in November we have received 400 more calls than for the same period last year and are still selling upwards of $5 million in properties each day."Condominium results in Sarasota-Bradenton for both the third quarter and for October are signs of improvement, Saunders said.Last month, condo sales were up 10 percent, from 193 to 212. The median price was down slightly, from $226,000 to $224,000."That's very good news for us, suggestive of a bottoming out in that segment of our market," Saunders said.Inventories remain highBut the number of houses and condos for sale remains at doggedly high levels.As of Nov. 1, for example, there were 8,005 single-family homes for sale in the Sarasota Multiple Listing Service. That is down 5 percent from the peak of 8,411 in March, but 100 to 200 houses more than in July, August or September.Realtors are chipping away at an average weekly rate of 62 houses, meaning 128 weeks worth of inventory, or more than two years worth, at the current sales pace.There were 4,653 condos for sale, down 11 percent from the peak of 5,224 in April. The number of listings has been trimmed down steadily in recent months.Realtors are only closing on 27 units per week, meaning it would take more than three years to clear out the existing stockpile.There has been movement of homes in the upper ends of the market, said McKenna, the Sarasota Realtor. But what concerns him is the lack of liquidity in the "meat and potatoes of the market -- those $400,000 to $800,000 homes that simply are not moving as fast as Realtors or owners would like."Louise Guido, broker and president of Westcoast Realty of Florida, said she is "not sure there is movement in the market that shows a change of direction. I personally believe some people are just getting out of the deals they are in.""Yes, there are buyers, and the magic number is around $400,000, which is 2004 pricing. Some sellers are holding firm because they feel there will be a turnaround," Guido said. "I do not see that just yet."Some home builders echoed the more optimistic Realtors.Neal Communities said it sold its 100th home this year, outstripping the 88 sold in 2006. "Traffic has changed, and we're seeing an uptick in the numbers of visitors to our communities," said Pat Neal, president of the Lakewood Ranch-based company. Lee Wetherington, president of the Lakewood Ranch home building company bearing his name, also has seen more activity."The amazing thing is that we are seeing about a 50 percent increase in traffic, which is a great improvement from last year at this time," he said, noting attention from foreign customers. "There are a lot of buyers out there feeling out the market in Sarasota and Manatee."They are cautious, though, and definitely looking for bargains. "But they are not fence-sitters, they are buyers."In Englewood, broker J. Erick Phelps of Corin Bay Real Estate was coming to some of the same conclusions.Like Wetherington, Phelps is getting buzzed by foreign clientele -- Canadians and Germans -- whose currencies are gaining buying power as the dollar weakens.Phelps also said that the decline in prices has boosted the market."There was virtually nothing below $200,000 for quite a long time," he said. "When everything started crashing, it lowered prices back down to where first-time homeowners could get into a home, and they are the ones who have kept the market going."That local buying has helped push the median price lower, he believes."Now we are getting into the snowbird season. You will see more of the high-dollar property moving now."

Sarasota-Bradenton Home Sales Tops In State

Sarasota-Bradenton home sales tops in state
By STEPHEN FRATER - printed in Herald Tribune 11/25/07

All things being equal, it was not a bad third quarter for home sales in the Sarasota-Bradenton market.In fact, the 5 percent drop in sales for the local market was the best performance in a state that saw total sales drop 29 percent when compared with the same time in 2006.Ocala posted a 53 percent drop, Miami a 42 percent decline and Fort Myers-Cape Coral and Orlando, 39 percent, the Florida Association of Realtors reported Wednesday.There were 2,084 homes that changed hands in Sarasota-Bradenton during the quarter compared with 2,195 during the third quarter of 2006."We are encouraged by the improvement in our area compared to last year," Joe Hembree, president of the Sarasota Association of Realtors, said Wednesday. "This report mirrors what we have been seeing as a trend all year -- that the Sarasota market is faring much better than many other parts of the state.Both Hembree and Pat Neal, president of Lakewood Ranch-based home builder Neal Communities, said they have seen an increase in activity."September was unusually quiet as was October, but things are moving now in November," Neal said. "Many more customers are looking at resale homes in addition to new homes, which tells me that after the new home sales guys adjusted their prices to reflect the new market reality, the existing homeowners are also doing the same, which is creating competition."The price decline during the third quarter in the Sarasota-Bradenton market was in line with the rest of the state. The local market saw a 6 percent drop -- from a median sales price of $301,800 to $283,800.The Charlotte County-North Port market had a much weaker performance, with sales dropping 24 percent and prices declining 18 percent -- the biggest price drop in Florida for the quarter.There were 597 homes that changed hands during the third quarter in Charlotte County-North Port, while the median sales price declined from $217,500 to $178,600.The median is the price point where half the homes sold for more and half for less.Sales performance among condominium sales in Sarasota-Bradenton market was also among the best in the state, with a 15 percent increase in sales, from 634 to 732. Median sales price was flat at $241,700.There were only 50 condo sales in Charlotte County-North Port, a 58 percent decline, while median sales price slid 4 percent, from $170,000 to $163,300.With single-family homes, other big price declines occurred in Fort Pierce-Port St. Lucie, which saw a 13 percent drop, from $252,000 to $218,300; and Melbourne-Titusville-Palm Bay, which saw a 9 percent drop, from $215,400 to $196,500.A total of 31,910 homes changed hands in Florida during the third quarter compared with 44,776. Nationally, that was the worst performance of any state except Nevada, which saw sales drop 35 percent.The median sales price for all homes in the state was $232,100, down 6 percent from $246,800, during the third quarter of 2006.Meanwhile, a total of 9,622 condominiums changed hands in Florida during the quarter, a 26 percent decline from the 13,028 that sold during the same 2006 quarter. The median sales price for condos was $196,300, down 4 percent from $205,000 in the year-ago period.Realtors blamed the most recent quarter's performance on high inventory levels, mortgage disruptions and tighter lending standards.The state association's national counterpart is still predicting that the credit crunch will subside and a modest recovery for sales will occur next year."Over the near term, home sales are likely to be fairly flat as the lingering impact of the credit crunch filters through the system through the end of the year," Lawrence Yun, the National Association of Realtors' chief economist, said in a statement. "In some ways, the extended real estate boom from 2001 to 2005 created unrealistic expectations that housing is a short-term, high-yield investment."Nationally, sales of existing homes fell in 46 states during the July-September quarter as the housing market's slump worsened. Vermont and North Dakota were the only two states to show sales increases. Existing home sales in Vermont rose 0.8 percent from the same quarter a year ago, while sales in North Dakota rose 2.9 percent.No sales figures were available for Idaho and New Hampshire.The Realtors saw a silver lining in the data, noting that home prices rose in 93 of the 150 metropolitan areas surveyed.Trade group officials emphasized that the real estate market is not a national one, and conditions vary -- sometimes dramatically -- from market to market."Some metro areas are hot while others are experiencing localized problems," Yun said. "Home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued."Still, numerous experts forecast a continued decline in median prices nationwide as conditions deteriorate in the housing and mortgage industries.Nationwide, existing homes sold at an annual rate of 5.42 million units in the third quarter, down 13.7 percent from the sales pace of the third quarter in 2006, the Realtors group said.Mortgage lenders, would-be home buyers and Wall Street investors alike have been grappling all year with the impact of rising defaults, the result of lax lending standards that were prevalent during this decade's housing boom.As defaults have risen, lenders have grown more cautious, which has resulted in fewer buyers qualifying to purchase homes for sale.Information from The Associated Press was used in this report.

Proposed Florida Property Tax Reform Explained!

On Jan. 29, 2008, Florida voters will decide whether or not to reform the property tax system in the state. Here is an explanation of the proposed changes related to portability.

Property tax savings portability (money saved over time on property taxes because of yearly increase limits through Florida’s Save Our Homes amendment) applies to homesteaders (homeowners with a homestead exemption) moving anywhere within Florida. Up to $500,000 of accumulated savings, applied to taxable value, may be transferred when one home is sold and another is purchased, with the transfer applying to all taxes, including the school portion. Homeowners have two years after they sell a home to buy a new one and transfer the savings.

If buying a more expensive home, a homesteader calculates savings by subtracting the assessed value (taxable value) from the just value (market value). The amount (savings over time) is then subtracted from the just value on the new home purchased. In most cases, the $50,000 homestead exemption will also be subtracted.

Example 1: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new house for $700,000. The following year, she’ll pay taxes on only $400,000, however, because she’s “porting” $300,000 in value to her new home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $350,000.

If buying a less-expensive home, the calculation changes and is based on the percentage of tax savings rather than a dollar amount. If the assessed value on the original home was 50 percent of the just value, for example, the homesteader would transfer that percentage to the new home, or have a new assessed value that is 50 percent of the new home’s just value. The percentage system was created to keep homesteaders from effectively eliminating their property taxes altogether by moving from a high-cost area of Florida to a low-cost area – a change that could severely hurt smaller rural economies.

Example 2: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new town home for $300,000. She’ll pay taxes only on $120,000 because when buying down in value, she’ll keep the same ratio (40 percent) of assessed value to just value that she enjoyed in her old home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $70,000. Also, portability is retroactive to Jan. 1, 2007 – so everyone who bought this year and moved from an established homestead will be able to “port” their savings for next year.

Since yearly tax values are based on ownership as of Jan. 1 each year, portability would not affect this year’s tax bills, which most homeowners have already received; but the savings will be applicable to next year’s tax bill.

We shall see what happens. Florida needs to do SOMETHING regarding portability. The current system is convoluted, and actuallg discourages real estate activity within the area. At least portability would open up the market a bit, encourage more activity and moves WITHIN the area, and hopefully take a neccessary step towards jumpstarting the current local housing market.