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Tag: Castles in the Sand

The financial reality of owning a home

Written by Louise Bolger on . Posted in Business, Real estate | Development.

Homeowners across the country are sitting at their kitchen tables and trying to understand where all the money went. The drip, drip, drip of inflation has eroded discretionary income to the point where ballet lessons and summer camp could be a thing of the past for some families.

Think of this: A home buyer in 2019 could expect to spend about $20,000 a year on basic homeownership expenses like mortgage payments, property taxes, insurance, maintenance and repairs, according to data from Intercontinental Exchange and home-services marketplace Angi. By the time 2025 rolled around, the annual bill for those living expenses had soared above $28,500, outpacing inflation and keeping many would-be buyers out of the market.

The housing market has been in a slump for four straight years because of affordability challenges. Homeowners who would like to sell are also staying put because of the cost of purchasing today.

Pre-pandemic, between 5 million and 5.5 million sales a year were the norm. Since 2023, previously owned home sales have held around 4 million a year, the lowest level in decades, according to the National Association of Realtors. This means that homeownership for the middle class, which has always been a key to wealth building, is in jeopardy.

Inflation has hit every part of the economy, from insurance to property tax and home repairs. Households spent an average of almost $12,500 on home improvements, maintenance and emergency repairs last year, up from about $9,000 in 2019, according to survey data from Intercontinental Exchange and Angi.

Higher electricity prices are also putting a sizable ding in homeowners’ budgets.

If you live in a condo association, higher fees are becoming a major sore spot. Typical monthly fees for those associations rose 51% from 2021 to 2025, according to HOA software company Vantaca. These associations are having the same inflation issues as single-family homeowners, with the cost of insurance, maintenance and labor increasing every year.

Since all real estate is local, let’s look at the June sales statistics for Manatee County reported by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 26.2% more properties this June compared with last June. The median sale price was $490,000, up 11.4%, and the average sale price was $648,560, up 11.2%. The median time to contract this year was 45 days, compared with last year’s median of 56 days. The months’ supply of available properties is 4.1 months, compared with last year’s 5.2 months.

Condos closed 11.2% more properties this June compared with last June. The median sale price was $310,000, down 0.9%, and the average sale price was $349,674, up 4.7%. The median time to contract this year was 84 days, compared with last year’s 68 days. The months’ supply of available properties is 5.7 months, compared with last year’s 7.4 months.

The bottom line for June is growth in sales and a decline in inventory – a positive report.

So where did the money go? The answer to that question is way above my pay scale. Until someone can tell you, keep those pencils sharpened while you’re working on the family budget. You might get lucky and find a math error in your favor, or you could sell the kitchen table.

To cut or not to cut property taxes

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

Two weeks ago, we celebrated the 250th anniversary of the Declaration of Independence. Much of the conflict between Great Britain and the colonies was over taxation. Two hundred and fifty years later, the state of Florida is still fighting over taxation, only this time it’s property taxes, not tea.

In November, Florida residents will be asked to vote on a change to the property tax system that would significantly overhaul the current system. If passed, many homeowners would have their taxes lowered at the potential expense of local government. The governor removed the elimination of funding for schools, making it more acceptable to voters. However, 60% of voters will need to vote for the change before it is adopted.

As property values rose in Florida, tax bills also became larger for homesteaded homeowners – and even higher for non-homesteaded homeowners. Property taxes for homesteaded properties represent 35% of the property taxes paid. Non-homesteaded properties represent 65% of the taxes paid.

The constitutional amendment would increase the assessment exemption on homesteaded property from the current $50,000 to $150,000 the first year, $250,000 the second year and leave the door open for potential future cuts. Non-homesteaded properties would also get a reduction on the cap on the annual increase in assessments to 5% from 10%, reducing their taxes as well.

Since Florida already benefits from an attractive real estate market because of a favorable tax policy, it’s likely if this constitutional amendment passes it will enhance that benefit substantially. But what about the hit that local government budgets will be taking with reduced revenue from property taxes?

Some residents will say too bad the local governments spent money irresponsibly when property values were zooming, without giving any thought to the future. That might have some truth to it but the local governments still need to pay the bills for essential services like roads and fire rescue facilities, not to mention maintenance of our beautiful beaches and parks. 

So, get ready for higher fees for construction and renovation improvements which could backfire on the real estate market. The fear for local government is that they will be forced to ask the state for financial assistance risking their independence.

To complicate matters more, Gov. Ron DeSantis has announced he will not campaign to pass an amendment reducing property taxes in the state because the measure approved by the legislature is not the amendment he proposed. He says he will vote for the measure, but he will not spend any time in his remaining months as governor encouraging others to follow his lead. He goes on to say that he thinks most people are going to be supportive of the amendment even though it does not contain his vision for a larger historic change to the property tax system. 

When it comes to politics, no one is ever completely happy, including the governor of the state with the third-largest population in the country. DeSantis is fond of saying homeowners are paying increasing rent to the state in the form of property taxes on homes they already own and it’s time to put the brakes on. 

No one likes to pay taxes – not us and not our forefathers. We’ve been fighting this war for 250 years and I doubt it will end this November. Most people vote for a change in their own best interest, that is why I think this amendment will pass but be careful what you wish for.

Condo living for dummies

Written by Louise Bolger on . Posted in Business, Real estate | Development.

We’re almost to midsummer; it’s hot, we’re in a drought and fewer people want to look at condos to buy, even if they really want one. However, it may be time to take a step back and reconsider condo shopping.

We’ve had a slow real estate market, especially for condos, but right now may be the opportune time to buy. The inventory is large and prices are low. Before the winter buyers return, it would be smart to start looking at available properties, and more importantly, to start educating yourself about condo living.

As a condo owner, you have exclusive ownership of your condo, exactly the same as if you purchased a single-family home. You receive a deed to the property, which includes the right to occupy, renovate, lease or sell your unit, subject to certain restrictions as stated in the condo documents and rules and regulations.

For example, you have the right to renovate as long as your renovation doesn’t jeopardize the structural integrity of the building. In almost all condominium associations, owners are required to submit an application outlining the nature of the renovation, the licensed contractor’s name, the start date and the approximate finish date.

As an owner, you have access to all of the common elements such as pools, gyms and clubhouses. In some condo associations, there are common elements, called limited common elements, that are assigned exclusively to the specific owner. These elements could include boat docks, parking spaces and possibly some outdoor areas.

When living in a condominium association, you are automatically a member, similar to a private club, which gives you a voice in the governance of the community. You will be asked to vote on material alterations, the election of the board of directors and other significant community decisions. If this procedure is not followed in a condo association you are considering, it should raise a red flag and that is something you should question.

I can’t emphasize enough that becoming a board member is the best way to have your voice heard, and the best way to protect your personal investment. 

Florida law allows condo owners the right to inspect the association’s official records. It’s not practical for every detail of the association’s financial position to be disclosed at a board meeting. Therefore, if you want more detailed information, you can ask the board for specific records to review.

The stability of the association’s finances is the most important job the board of directors has, so voting for the board members you feel are ethical and knowledgeable is crucial.

All owners have the right and the obligation to carefully review finances, especially homeowners association (HOA) fees and special assessments, to verify there is justification for a financial increase. Don’t be shy to ask for this information.

Don’t be a dummy. Before purchasing a condo, read some Florida law about condo ownership. It’s easy to find on the state of Florida’s website and many condominium attorneys have websites that explain condo owners’ rights and condo-related laws. 

That said, the hot summer may be the perfect time to buy a condo this year. The market is starting to move ever so softly right now and there is a lot to choose from.

Cash is always king

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

Prior to the 1930s, homes were purchased with 50% down payments and short-term five-year loans that ended with large balloon payments. 

Modern long-term fixed-rate mortgages became common following the Great Depression, when the U.S. government established the Federal Housing Administration in 1934. In 1936, the Federal National Mortgage Association (Fannie Mae) created 15- to 30-year amortized loans.

That’s a quick background on the way we do business today, but just because we have a thriving mortgage system doesn’t mean cash transactions aren’t popular.

According to Redfin, in March roughly three in 10 homebuyers (28.8%) paid for residential properties using all cash. That share was down from 29.8% a year earlier. The all-cash purchasing method peaked at nearly 35% in 2023 when mortgage rates hit a two-decade high of almost 8%.

Redfin feels cash buyers have recently withdrawn some from the all-cash position. This could be a reflection of the economy leaving buyers with the feeling that dropping a huge chunk of money into a home could be risky and leaving more cash on hand would be preferable.

The markets where all-cash transactions are the most prevalent are Cleveland and West Palm Beach, where more than half of all March home purchases were made in cash in both locations. West Palm Beach attracts a lot of affluent retirees and second homebuyers, while Cleveland has a large number of relatively lower priced homes for sale. 

Nevertheless, all-cash transactions still have many advantages. Zero financing usually means zero risk compared to buyers who are waiting to qualify for financing. 

The all-cash approach usually speeds up the purchasing process because there aren’t any lenders waiting for an appraisal; and it’s not uncommon for cash buyers to waive inspections and repairs in return for offering sellers a quick closing. Cash offers will typically appeal to sellers, particularly in a seller’s market where cash offers stand out. Cash offers are always considered the gold standard of real estate offers.

Published by the Realtor Association of Sarasota and Manatee, the Manatee County sales statistics for May include cash offers. Single-family homes closed 0.5% fewer properties in May this year compared to last year. The median sale price was $460,000, down 3.8%, and the average sale price was $667,503, up 4.5%. Median time to contract was 47 days, compared to 52 days last year. Pending inventory was up 21.9%. Cash sales were down 0.5%.

Condo sales closed 8.7% more properties this May compared to last May. The median sale price was $297,000, 5.1% less than last year. The average sale price was $341,985, down 1%. Median time to contract was 61 days, compared to 60 days last year. Pending inventory was up 0.6%. Cash sales were up 8.1%.

In addition, inventory was down 15.4% for single-family homes and 20.3% for condos. Declining inventory and an increase in pending inventory are pointing to a lot of buyer activity.

We have a fair and solid mortgage system in this country and we should all be grateful for it. Because of what the government instituted in the 1930s, we’re largely a country of homeowners. However, don’t forget that cash is still king and the envy of all.

We’re in hurricane season – better read your insurance policy

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

If you hate talking about insurance as much as I do, you’ll be tempted to turn the page and look at the real estate ads, but don’t. This is the year that you really need to read your policy, since the insurance companies are still crying over the disastrous 2024 hurricane season, and they’re in a bad mood.

According to a lengthy piece in The Wall Street Journal, the five biggest home insurers as a group didn’t pay out on more than 44% of the claims closed last year. This left anyone with homeowners insurance policies to pay fully or partially for repairs to their property.

There are several reasons for this, but it all has to do with money. Companies are getting tougher on claims by using a narrow definition of acceptable claims. In addition, they’re raising deductibles, especially on specific risks like hurricanes, and establishing tighter criteria for claims on expensive repairs like roofs. Homeowners themselves are also choosing to increase their deductibles in light of increasing premiums.

Florida, of course, is in the danger zone, driven by climate change and coastal development. We had the highest rate of nonpayouts in 2024, affecting more than two in five homeowner claims that year. This was significantly higher than the previous five-year average of 34%. Insurance companies claim that because there were more flood events that year, there were more claims declined that weren’t covered by normal homeowners policies.

If you feel your claim has been unfairly denied by the insurance company, there are options: ask for a letter outlining the reasons for the denial with documentation; compile additional evidence; file an appeal; if the appeal is denied, file a complaint with the state insurance regulator; or, as a last resort, hire an attorney or public adjuster and be prepared to wait.

If you are a condo owner, there is another important item to understand — one that many condo owners don’t know about until there is a natural disaster. I’m talking about something called loss assessment. In Florida, under Florida Statute 627.714, all residential condominium unit owner policies are legally required to include at least $2,000 in property loss assessment.

This coverage helps pay your share if the condo association levies a special assessment for a covered property loss. The condo association will prepare a letter to be submitted to the homeowners insurance company stating the amount of the special assessment, the date and the named storm it’s related to. Homeowners can purchase optional endorsements to increase limits well above the $2,000 statutory minimum. Like any insurance you purchase, you have to weigh the benefits against the cost. I lived in a waterfront condominium for 20 years before I received compensation for a loss assessment.

I’ve declined to state the five biggest insurers that did not pay out claims. However, if you want to know if your insurance company is one of the top five, this information can be easily found in The Wall Street Journal’s archives for June of this year.

No one can change the mood of national insurance companies, which will likely go on for some time. But being proactive on your own behalf by reading your insurance policy, talking to your insurance agent or broker and crunching numbers to reduce your premium could help. Do I dare say it — it’s hurricane season again.

Does your family have a pot of gold?

Written by Louise Bolger on . Posted in Business, Real estate | Development.

I’m a firm believer in making it on your own, probably because of the generation and the family I grew up in. However, I do recognize that the housing market we’ve been experiencing for at least the past five years has made it very difficult for first-time buyers to get in the game. This is where that pot of gold comes in, held mostly by the baby boomer generation.

Buying a home has always been a milestone of financial independence, but unfortunately, young potential homeowners are caught up in the least affordable housing market in decades. This is the reason they’re looking toward their parents and grandparents to give them a boost into homeownership. 

Nearly 40% of U.S. adults receive financial help from family members when purchasing their first home. This help takes the form of down payment funds as a gift, co-signing a mortgage to help buyers qualify, or taking out the mortgage on their behalf with a private arrangement to pay some or all of the monthly carrying charges. This does not include living support by providing rent-free living, so the buyer can save up enough for the down payment.

Also, generations are not created equal. For example, the baby boomer generation, ranging in age between 62 and 80, got a big boost coming on the coattails of a great economy right after World War II. There was a massive building boom and just about every young family was able to buy a home without assistance and move up the financial ladder. 

The millennials, aged 30 to 45, started feeling the financial pinch, requiring roughly 56% of them getting financial help. And 80% of Gen X homebuyers aged 14 to 29 will be getting help from family, if they even try to buy. 

These statistics are from Live Now (from Fox) and Lending Tree. Redfin found in a November 2025 survey that 26% of Americans aged 18 to 44 used family money to fund their down payment. As you can see, statistical outcomes depend on the question you ask, and who you ask. However, it’s pretty clear that young buyers need family help to get into a home today.

Going into business with your parents or in-laws is tricky. They want to help, but they also want a say in the end product – and depending on how much of a say, it could be a great partnership or a lifelong disaster. 

Having your inheritance given to you when you really need it makes a lot of sense and it is a huge benefit to the younger generation. But family members are human and they have likely worked hard for what they have, making more sacrifices than the current generation has needed to do. This can be a difficult dynamic to navigate through and it requires respect on both sides.

Several times in the last few weeks, I received graduation pictures ranging from kindergarten to college. I looked at these young Americans and wondered what the future holds for them. Are they counting on a pot of gold, or will they go back to the work ethic of the 1950’s and start building their own pot of gold? Whatever they choose, I hope they don’t count themselves out when the road over the rainbow gets rough. Keep your eye on the pot of gold.

Why can’t so many buy a home?

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

There is a continuing dialogue in the country, in Florida and in Manatee County about the price of homes and, of course, the cost of a mortgage.

In this column, in recent weeks, I’ve talked about the influx of new residents to the state, the cost of renovations and the best way to choose a mortgage. So, as I stated last week, since we’re obsessed with mortgage rates, let’s start there.

The average rate for a 30-year fixed-rate mortgage, per Freddie Mac, rose to 6.51% the week of May 18, the highest level since August of last year. The previous week, the rate was 6.36%. This, of course, didn’t make home shoppers very happy, since every uptick in rates reduces their target price range. 

Even a small change in mortgage rates can affect a buyer, and a significant change could take a buyer out of the market completely. For example, a buyer qualified for a $400,000 mortgage at 6% might only qualify for a $384,000 mortgage at 6.5%

In February, when the rates dipped to 6%, everyone, me included, thought we were at the beginning of an upswing. That was before the Middle East war started playing havoc with oil prices and worries about inflation. Suddenly, the pool of buyers narrowed and both buyers and sellers had to rethink their positions.

June is National Homeownership Month, which raises awareness about the value of owning a home and making homeownership accessible to all Americans, while highlighting the benefits of homeownership that include building personal and generational wealth and stronger communities. In Florida, the homeownership rate hovers around 68%.

A new analysis from Construction Coverage, a company that uses data from the U.S. Census Bureau, states the last decade of rapid home price growth has severely worsened housing affordability across the United States. Home values surged more than 81% between 2016 and 2026, dramatically outpacing wage growth, which was up 47%, and reshaping housing affordability nationwide.

Locally, home price growth in Bradenton between 2016 and 2026 experienced an increase of $157,466 in the median home price; that is an 80.4% increase in just 10 years. Comparing home price growth with wage growth in Bradenton, the most recent income data shows an increase of 49.8% over 10 years in Bradenton’s median household income.

Sorry if all of these numbers are making you dizzy; however, the bottom line is that wage growth is not keeping up with sales growth in Bradenton and around the country. This is a big affordability issue for buyers wanting to get into a home

Getting back to interest rates: 6.51% was almost identical to the 2002 average of 6.54%. In 1987, the first year I had my real estate license, the average rate was 10.21%; and the year I bought my first house, in 1974, the average rate was 9.195%. Somehow, we all lived through it and didn’t talk nearly as much about interest rates as we do now.

By the way, I keep a record of interest rates from the Freddie Mac archive starting in 1971 and it’s been a good reality check down through the years – something we all need once in a while.

A mortgage tutorial

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

Learning new things is one of life’s pleasures. You’re never too old to learn something new; and when it comes to purchasing property, you’re never too experienced to understand the nuances involved.

We talk a lot about mortgage interest rates – and you might even say we’re obsessed with it – but what we rarely talk about is what influences mortgage rates and how it affects you on a personal level.

Mortgage rates are determined by market conditions and personal factors. The 30-year fixed-rate mortgage is typically what the majority of homeowners apply for when purchasing a home. These mortgages are heavily influenced by the 10-year Treasury note rather than the federal funds rate. This is why when the Federal Reserve lowers a rate, it does not always translate to a reduction in mortgage rates.

Mortgage rates are also influenced by policymakers, economic issues like the increased cost of fuel, and even international conflicts. Within the mortgage industry, there are complicated calculations that also influence rates.

However, your personal borrower profile will really be the factor that determines the mortgage rate you’ll be offered. At the top of the list is your credit history and credit score. If you have a higher credit score and pay your bills on time, it is more likely that you will pay your mortgage on time and you’ll be offered a lower mortgage rate. Credit scores in the “excellent” range of 760 or higher will also give you access to the best rates.

Next is income. If your income is high enough to handle your monthly mortgage payments, plus your other debt payments, you’re likely to get a lower mortgage rate. Typically, you need to meet debt-to-income (DTI) requirements. Some lenders might require your mortgage payment to be no more than 25% to 28% of your monthly income to qualify for the best available mortgage rate, or they may also look at your DTI, including your new mortgage payment, and offer the best rates if your total debt payments are no more than 33% to 36% of your monthly income.

The length of your mortgage can also influence your rate. For example, a 15-year fixed rate is generally lower than a 30-year fixed rate, as are adjustable-rate mortgages.

Making a larger down payment could potentially reduce your mortgage rate. The more equity you have going into a new mortgage the less likely it is that you will renege on payments.

If you have cash available, paying points or fees upfront will also reduce your mortgage rate.

Not all mortgage lenders are equal and you need to shop around. Get quotes from three to five lenders with exact comparable terms before you make a decision.

Finally, setting up biweekly payments can save you money and interest. This works out to 26 payments a year, the equivalent of making an extra monthly payment.

Mortgage rates have certainly been volatile over the last few months, ranging from below 6% at the end of February to 6.36% in mid-May. Since you have no control over these rates, other than being educated on how you can reduce the rate charged to you personally, the best thing to do is follow the daily rates if you are planning to apply for a mortgage soon.

Be a smart student and study like you are taking a mid-term test. It will save you money in the long run.

Renovations can blow your mind

Written by Louise Bolger on . Posted in Business, Real estate | Development.

Sometimes it seems like Anna Maria Island is one big renovation project. It’s going on two years now since we lived through the worst hurricane season in my memory and there continues to be ongoing rebuilding and renovations related to storm damage.

Even off-Island, it’s not uncommon to see blue tarps on roofs where homeowners are still waiting for insurance refunds or contractors to start work.

If you’re planning a luxury renovation that can cost well in excess of $100,000, the best thing to do is get recommendations from friends and family, ask for referrals and check the Better Business Bureau. 

Contractors need to be licensed and insured before being hired, and it’s not unusual for condominium associations to require the name and license number of the contractor before the work can proceed.

Once you’ve settled on a contractor and a price, you need a contract. Under a standard American Institute of Architects contract, which is frequently used for high-end remodeling, you have some protection from contractors walking off the job. The only way, per this contract, a contractor can walk off the job is if they aren’t being paid. Beyond that, they’re in breach of contract. Also, AIA contracts provide for a schedule of installments based on when certain work phases are completed.

In addition, a liquidated damages clause is recommended to keep things on track. It requires the contractor to pay a set fee for every day the project is delayed after the date specified in the contract. 

Naturally, getting the proper permits is essential. Don’t work with a contractor who offers to work without a building permit, which is also a requirement in most condominium associations.

Finally, if you’re spending a lot of money, unless you’re well-versed in contracts of this nature, take the time to have an attorney review the contract before signing.

Now it’s time for the Manatee County April sales statistics reported by the Realtor Association of Sarasota and Manatee.

Single-family homes closed 4.8% more properties than April of last year and cash sales were up 14.9%. The median sales price was $492,500, up 6.1%; and the average sale price was $760,094, up 22.9%. Median time to contract was 44 days, compared to 50 days last year; and the month’s supply of properties was 4.6 months, compared to 5.2 months last year. 

Condos closed 12.5% more properties this April compared to last year and cash sales were up 30.4%. The median sale price was $320,000, up 6.6%. The average sale price was $335,660, down 2.3%. Median time to contract was 60 days, compared to 63 days last year. The month’s supply of properties was 6.9 months, compared to 8.2 months last year.

Pending sales were also up for both single-family homes and condos. The increase in cash buyers is also a good sign that investors and part-time residents are back in the market. Overall, it’s a good report.

As far as this year’s hurricane season goes, a potential “Super” El Niño is likely to develop in the coming months. El Niño conditions are associated with fewer tropical storms and hurricanes, especially in the western Atlantic Ocean Basin. Even though I’m breaking my own rule about not paying close attention during hurricane season (as a means of self-preservation), I must admit this news is making me a little giddy.

There are no guarantees when it comes to Mother Nature, but there can be guarantees when it comes to working with a contractor. Put it all in writing and have an attorney in your contacts list.

Old homes, old problems

Written by Louise Bolger on . Posted in Business, Real estate | Development.

Is it charming or is it just old? This is the age-old question homebuyers who are looking for a home with character continually ask themselves. Since our country will be celebrating its 250th birthday this year, chances are there are lots of homes with character to choose from.

According to the Harvard Joint Center for Housing Studies, the median home in the country is 44 years old. That’s median meaning half, so that leaves many other properties older than that. In fact, 29.5 million units are 55 years old or more.

The housing boom started in the 1920’s but really exploded after World War II to accommodate the new confidence in the country, resulting in higher birth rates and returning soldiers. Add to this a building surge during the 1970’s and we’re now looking at enough old homes to give “This Old House” decades of TV shows.

The cost of maintenance and structural repairs grew by about 14.1% between 2022 and 2024, according to the Federal Reserve Bank of Philadelphia. Financial advisers traditionally suggest setting aside 1% of a home’s value annually for upkeep. Now, however, that recommended number has increased to 2% or 3%, particularly for older homes. Once you start ripping out walls for a remodel in an older home, you’re never sure what you’re going to find or how much money it will add to the project.

In addition, older homes can face homeowner’s insurance issues. Aging roofs, siding and systems can increase premiums or result in not being able to get coverage on the house at all. This could lead to mortgage lenders denying a loan because of the property’s condition.

Florida has a definite leg up on new home construction. If you want new construction, just take a ride down Cortez Road, or out east to Parrish, and you’ll find literally thousands of new homes being built every day. Do they have the charm and character of some older homes, maybe, maybe not, but they do have new roofs and everything else.

Also, in a slow real estate market, the homes that are selling are the ones in good condition, with no major repair issues and are priced right. And they’re out there, since only 34% of existing homes on the market need repairs or updates. Unfortunately, many sellers are living in the past when the market was on the upswing, but that was then, this is now, and sellers need to readjust their expectations.

The two regions where homes are selling quickly are in the Midwest and Northeast, where there is a lack of new construction keeping the supply of available properties down. I believe the new construction in our state is hurting the Florida market, and certainly in areas where there is an abundance of new construction, like Manatee County, creating competition for existing properties.

If an older, charming home is still on your radar, remember you’re not just buying an older home; you’re buying an expensive maintenance schedule. You can put off the “someday I’ll get to the bathroom renovation” until the 40-year-old tub springs a leak, or the 50-year-old soffits finally blow off in a storm, but it will eventually catch up with you.

Is charming just another word for old? Be careful what you wish for.

Time to think positive, no matter what you read

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

According to national real estate reporting, the sky is falling. I agree the housing market has been stuck in a rut for the past three years, which is why I’m feeling optimistic. It’s time; and based on last month’s sales statistics, I think the time is now.

According to the National Association of Realtors, national home sales declined 3.6% in March – not a good sign for the spring selling season that most of the country depends on. This is the lowest level of sales since June of 2025.

Manatee County, which is essentially at the end of its strong selling season, closed 21.9% more single-family homes in March this year compared to last year. Our median sale price for single-family homes was $494,205, down 2.4% from last year – compared to the national median of home sales, which was $408,800, a 1.4% increase. The Southeast market has been stubbornly sluggish; however, we see a small uptick with more sales and fewer properties on the market.

The one thing potential condo buyers can’t quite get past are the increases in HOA fees in the condo market nationwide. Homeowners all over the country are paying more than ever to homeowner associations, sometimes more than their mortgage and property taxes. The median monthly condo fee was $420 in 2025, up 29% from 2019, according to realtor.com.

Mortgage rates can trend lower, or at least stabilize, but insurance and maintenance costs keep going up, whether you own a condo or a single-family home. Condo lovers defend this by pointing out that condo fees pay for amenities and salaries for staff to maintain the property and the amenities. It’s part of the condo maintenance-free lifestyle and it costs money.

Coastal Florida condo owners pay higher HOA fees for the privilege of living on or near the water on both coasts. This means flood insurance and higher property insurance for both associations and individuals, not to mention expenses related to hurricanes and tropical storms. Hurricane Helene was almost two years ago and some condo associations are still recovering financially as we’re staring down a new hurricane season. 

Condo associations are mandated by the state to maintain financial reserves to cover normal expenses to run the association. The problem occurs in associations where condo boards and residents don’t think ahead to the day when they may need additional funds to cover long-put-off maintenance issues or make repairs from storms. The collapse of the Surfside condo building in 2021 is the perfect example of what can happen when maintenance issues are not addressed. 

In addition, because of repairs created by damage from Hurricane Helene, many condo associations were required to collect special assessments to pay the repair bills. How much of a special assessment depended on the severity of the damage and the financial health of the association.

In spite of all the negative talk about condo living, here in Manatee County we are seeing a small but significant change in the condo market. For the month of March, condos closed 12% more properties compared to last year. Although the selling prices were down 11.3%, the available properties were also down by 13.4% – possibly creating more of a competitive market.

If you’re one of the millions of condo owners who are convinced the sky is falling, it’s probably time to change your expectations. Remember why you live in a condo to begin with and prepare for higher HOA fees – unless, of course, you want to mow the lawn and clean the pool.

End of season, end of sales?

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

April is almost over, Easter was over two weeks ago, and your house or condo is still waiting for a viable offer. I wish I could give you an answer why our typical selling season came and went leaving properties still unsold, but I can’t; and I challenge anyone involved in real estate sales to come up with why. 

If you watch the local news, real estate predictions and editorials, both in print and online, the answer is pretty much the same: interest rates. It’s easy to blame it on the interest rates, but since rates are lower than a year ago, when they were averaging 6.65%, that alone doesn’t compute. 

Yes, we did have a dip in rates in February when they fell below 6%, but for the past four weeks rates rose, reaching 6.38%. It happened fast, which could have spooked buyers who were still nervous. Now, bankers are blaming the war for home purchase applications being down 5% in one week, which is not that much of a crazy idea. 

The White House, in its effort to do something to get the real estate ball rolling again, is considering an idea floated by the Mortgage Bankers Association to underwrite mortgages based on a single credit report and not the typical three credit reports which has been the practice for years. This policy would only apply to Fannie Mae and Freddie Mac federal taxpayer-backed loans – please tell me I didn’t hear subprime. 

The Case-Shiller National Home Price Index reported its 12-month analysis that indicated growth for the year was down nationally by 0.9%. For the 20 cities tracked, New York City reported the highest annual gain at 4.9%, while Tampa posted the lowest return, falling 2.5%. In addition, for the eighth consecutive month, inflation outpaced national home price appreciation.

Let’s see what’s going on in Manatee County, using sales statistics reported by the Realtor Association of Sarasota and Manatee for the month of March: Single-family homes closed 21.9% more properties compared to last year. The median sale price was $494,205, down 2.4%. The time to contract was 51 days, up 10.9%. The month’s supply of available properties was 4.7 months, down 9.6%.

Condos closed 12% more properties compared to last year. The median sale price was $300,000, down 11.3%. The month’s supply of available properties was 7.1 months, down 13.4%.

To me, these numbers translate to a slightly better market with fewer properties, more sales and a stabilization of pricing. There are also more cash sales, typically from second home and relocation buyers, which is also a good sign. The press release from The Association of Realtors relating to both Sarasota and Manatee Counties says the market is “shifting to a more balanced and strategic market.”

Finally, there’s something afoot in Florida’s education system. It started with COVID, when families who could work remotely moved to Florida because they were anxious to get their kids back in school. 

Apparently, in the last five years, Florida has improved their education system by offering school choice and improved special needs programs, as well as dividing academic time between at-home learning and taking classes at the local school. 

Florida is now marketing itself as not only having great beaches and low taxes, but as also having great education opportunities. Frankly, I’m happy to hear it, but I’m also a little surprised. This can only be a benefit to the real estate market, which may finally be waking up.

Artificial intelligence is real estate’s future

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

A couple of weeks ago, my brother-in-law who lives outside of Allentown, Pennsylvania, sent me the real estate column from that day’s daily paper. Keep in mind that Ron is from the generation where you read a newspaper every day, and sometimes more than one. 

Being the avid reader he is, I send him this publication weekly, which he reads cover to cover and frequently calls me with questions and/or corrections in my column, as well as occasionally mailing newspaper columns. I accept his comments with the good intentions he means and move on. However, the latest column he sent was on artificial intelligence and this information caught my attention and opened my eyes to look at artificial intelligence (AI) from a whole different perspective.

The Industrial Revolution started around 1760 and was a major technological change, transforming whole countries from an agrarian to a machine-driven culture. One of the central changes in this revolution was the power source: introducing the steam engine to the world. We’re now at the beginning of another fundamental restructuring of the way we live, do business, construct houses and market real estate.

It’s predicted over the next few years that we’ll see robots precisely laying bricks and doing terrain grading work independently guided by GPS and AI technology. 

3D printer construction first came to my attention in 2018, when I read about a company based in Texas building small printer generated houses in 12 to 24 hours. Now, contractors around the world are building walls for homes by adding layers on top of layers of specialized concrete generated by a 3D printer. This is the stuff of science fiction.

The logical outcome of the advanced technology is more construction in a shorter period of time – predicted to be a 50% increase in production. AI catching design flaws, managing material waste and providing a safer job site will add to the rate of production. AI could build so many affordable homes in such a short period of time that it could turn around our housing shortage crisis.

What does this mean for the way buyers search for houses? And will real estate agents go the way of the horse and buggy? I don’t think so. There may be fewer of them, since they will get a lot of help from AI, but the person-to-person contact of building trust, negotiating and guidance can only be achieved with face-to-face meetings and fast available phone and text contacts. 

AI is so smart and it understands complex questions like, “I’m looking for a three-bedroom ranch house near an elementary school on a half-acre,” that buyers will see the available inventory before they make a phone call, without scrolling through dozens of listings online. 

The dreaded closing table will also be streamlined thanks to AI. And although you can’t replace inspectors and attorneys in a real estate transaction, AI will make their jobs easier, make the paperwork more accurate and eliminate delays clearing title and property line disputes.

Change is a challenge. Remember when everyone laughed at the steam engine? Thankfully, we know too much now to laugh at AI, but the future is always confusing and frequently scary. I for one will start paying closer attention to AI real estate stories. So, thanks Ron for recognizing the obscure in real estate marketing and construction and sending it to me. Keep them coming.

Fireplaces: Romance or work?

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

Let’s assume you live in Florida, anywhere from Tampa to the Florida Keys. It’s unlikely you’ll ever see freezing temperatures.  Even during this past winter, one of the coldest recorded in the state, temperatures may have flirted with freezing, but they never really made it to that point near us. Nevertheless, some homebuyers are requesting from their builders or realtors a home, particularly a high-end home, that includes a wood-burning fireplace. Are you sure about that?

Many homeowners want a wood-burning fireplace in theory, but they rarely want the work that goes with owning one. The romance of a wood-burning fireplace loses its glamour when you have to chop the wood or arrange and pay for the purchase of the wood, stack it, clean the soot and ash and also worry about what may be living in your woodpile. In addition, chimneys need to be cleaned – preferably by a professional fireplace expert, which is not so easy to find in Florida. The firebox also has to be inspected from time to time.

If you’re one of the newly minted billionaires sprouting up around the country, you can indulge your romantic leanings and build a fireplace in every room. Property managers can be hired to take care of every aspect of fireplace ownership, leaving the aesthetics to you. If, however, you can’t afford a full-time manager, it may be time to rethink your options; and there are plenty of them.

Electric fireplaces or gas fireplaces are replacing the relic of the wood-burning fireplace. Most of them also come with heat vents that allow for some warm air flow on chilly nights. These fireplaces need to be professionally installed and can become the focal point of a room. You can also purchase small electric inserts for existing fireplaces or new fireplaces that can be operational in minutes by just plugging into a standard outlet. Amazon sells electric logs that when stacked like wood look surprisingly attractive. Then, of course, there is the old standby of real or electric candles. Take it from me, use the electric ones.

Wood-burning fireplace aficionados are starting to run into municipalities that may have prohibited wood-burning fireplaces. The regulations are largely intended to mitigate environmental health risks, but in areas prone to droughts, fireplaces could create a fire hazard as well. These regulations are typically enforced for new construction properties, leaving homes with existing fireplaces grandfathered in.

Also facing new regulations are condos with wood-burning fireplaces. Condo associations have the right, and indeed the obligation, to inspect fireplaces or have owners provide the association with an annual inspection report. The property rights and safety of all residents in an association where walls and roofs are shared need to be protected.

There is one other drawback to wood-burning fireplaces: animals. Even in Florida, during the winter months, outdoor animals want to keep warm or are looking for a place to build a nest (we once had water rats build a nest in our car’s engine while we were away on a trip). An old friend of mine once had the shock of her life when her husband built a fire after being away for a few weeks, only to find out that a family of raccoons were living in the chimney.

Leave the romance of wood-burning fireplaces to the ultra-rich or the ultra-enthusiastic. I remember those days of black soot and hot ash landing where it should not. My electric candles are looking pretty romantic. Just add a little Frank Sinatra and you’re set.

Selling your home gives you big tax breaks

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

April Fool’s Day is the one day a year when it’s okay to play a friendly trick on a friend. Two weeks later is April 15, Tax Day, and not a good day to play tricks, especially on the IRS.

Most people use tax consultants to prepare their annual tax returns, which, in my opinion, is a very good idea. Tax preparers are schooled in looking for that deduction you may never have thought of; and if you sold your primary home in this tax year you will have a big deduction.

Since the late 1990s, homeowners have been allowed an exemption of up to $250,000 for single filers and $500,000 for joint filers on the profits on the sale of their principal residence. For example, a married couple who bought their home for $400,000 years ago and are now selling it for $850,000 should not owe tax on the sale because their $450,000 gain is covered by the $500,000 exemption.

In order to qualify for this benefit, the seller usually must live in the home for two of the five years preceding the sale. The property must also be the owner’s primary residence, with proof such as a driver’s license, receipt of mail, utility bills, etc. In addition, the capital gains exclusion can be used multiple times throughout your lifetime but generally only once every two years.

If your profit exceeds the $250,000 or $500,000 exemption based on filing status, the remainder of the profit is subject to capital gains tax. However, the law allows the owners of the property to lower their taxes by raising their “cost basis” if they have made capital improvements to the property, thus lowering their tax liability. Capital improvements include kitchen and bath renovations, landscaping, decking and other improvements made during the ownership period. There are other fees that can be deducted to lower your cost basis, including realtor fees related to the sale of the property. 

Couples who have not filed a joint tax return prior to selling their home can still get the benefit of the deduction as long as they meet the IRS ownership and use test of two out of the last five years and file jointly for the year the home is sold.

In order to lower your cost basis and reduce your tax liability, you must be able to prove the capital improvements are legitimate. This involves good record keeping with receipts or credit card statements, but the way to be sure you’re counting every dollar is to consult a tax expert – or, if you’re in the mood, read the IRS statutes online.

There is one more way to reduce your cost basis and that’s a little-known law called “The Cohan Rule.” The Cohan Rule is a legal principle that allows taxpayers to use reasonable estimates to deduct expenses when they lack formal documentation, like receipts, to prove the expenses actually occurred. This rule originated in 1930 when the entertainer George M. Cohan brought a court case involving missing records.

Finally, I am not a CPA or a certified tax consultant. To get accurate advice, please consult one of these professionals. 

Don’t play a trick on yourself before filing your tax return, especially if you sold your primary home last year. Ask for advice, save your receipts and don’t be foolish on April Fool’s Day.