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Tag: Castles in the Sand

We all should be thankful

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Feature.

It’s Thanksgiving, and we in Florida have enjoyed a more than spectacular run of weather somewhere between good and fantastic. However, the most fantastic thing we have to be grateful for is no hurricanes this year after last year’s devastation.
Something else to be grateful for if you’re a condo owner is an update to the laws mandating building milestone inspections. The Florida legislation on mandatory milestone inspections for condominiums, enacted after the 2021 Surfside collapse, provides specific exceptions for certain building types. Subsequent laws have refined these exemptions, mostly notably by using the concept of “habitable stories.”
The “habitable stories” clarification is a 2025 legislative update (HB 913) which clarified that a milestone inspection is required only for buildings with three or more habitable stories. This means that a three-story building where one or more floors are for non-habitable uses like parking may be exempt.
In addition, the Structural Integrity Reserve Study (SIRS) requirement, which mandates that associations fully fund reserves for major repairs, shares similar exemptions.
Also, these dwellings with three or fewer habitable stories above ground are exempt: Single-family homes, two-family dwellings (duplexes), three-family dwellings (triplexes) and four-family dwellings (quadruplexes), as added by 2024 legislation (HB 1021).
When the initial law was passed in 2021 stating that three-story buildings were part of the inspection mandate, there were a lot of questions about condos that were two stories over parking, a popular design on Anna Maria Island and the surrounding areas. Unfortunately, it took the legislation four years to clarify what they really meant with the simple word “habitable.” This omission created extra work and expense for condominiums that were two habitable stories but were considered three stories in the original law.
Let’s see what the Manatee County sales statistics are for the month of October reported by the Realtor Association of Sarasota and Manatee. As you read these statistics, keep in mind that in October 2024, Hurricane Milton impacted all of Manatee County.
Single-family homes closed 26.8% more properties this year compared to last year. The median sale price this year was $481,000, an increase of 0.2% from last year, and the average sale price was $616,842, an increase of 1% from last year. The median time to contract was 55 days compared to 60 days last year and there were 42.4% new listings in October this year compared to last year. The month’s supply of available properties was 4.2 months compared to 3.9 months last year.
Condos closed 8.0% more properties this October compared to last year. The median sale price was $292,500, down 10.8% from last year, and the average sale price was $333,774, down 6.9% from last year. The median time to contract was 86 days compared to 75 days last year, and there were 44.4% new listings this year compared to last year. The month’s supply of available properties was 6.3 months compared to 6 months last year.
The strong increase in statistics is nice to see, however, please note that comparisons are skewed by the sharp drop in activity during the October 2024 hurricane season. In reality, the recent trends point to a market that is rebalancing and stabilizing with the help of a mild hurricane season
There are still residents of Manatee County and in particular Anna Maria Island and the coastal communities working on repairs to their homes and roofs from Helene and Milton. Nevertheless, most of us are feeling cautiously happy, and this is really something to be thankful for. Happy Thanksgiving.

Everything old is new again

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Feature.

How much faith do you have in the Federal Reserve continuing to cut rates? It’s not often we believe what our government tells us, but this time, there is a fair amount of faith among borrowers. In the meantime, while we’re waiting for the Feds to make their decisions, buyers are looking at loans that may be a little risky but will also be less expensive.

Adjustable-Rate Mortgages (ARMs) were popular when rates were high but fell out of favor when rates started to fall. ARMs are initially cheaper, but they reset their rate usually after three to 10 years. This will increase the monthly payment for the borrowers, who need to make sure they will have the income to adjust to the higher rate.

As of Nov. 6, the average rate for a 30-year fixed-rate mortgage was 6.22%. The average rate during this time for an ARM was 5.55% for a 5/1 ARM; “5” represents the length of the initial fixed rate period in years and “1” represents the frequency of the rate adjustment.

Buyers are anxious for affordable monthly payments as well as qualifying for homes in this market, which have increased more than 50% since 2019. They also don’t want to wait any longer to get into a home, therefore, the adjustable-rate mortgage has more appeal than ever.

Mortgage rates generally tend to track government borrowing costs, but ARMs are more in line with short-term rates while fixed-rate mortgages are more in line with 10-year Treasury yields. This is why when the Feds lower their rate, it does not always translate into a lower mortgage rate immediately. Confusing, yes, but if you work with a competent mortgage broker or lender, it will be easily explained.

Because of tighter lending standards, ARMS are less risky today than back in 2004 when buyers were looking at their initial fixed-rate only, without considering if they could afford the higher rate. When the rates adjusted, many found they couldn’t afford the extra monthly payment and were facing foreclosure. Today, lenders vet buyers more carefully to determine if they can afford the larger monthly payment when the mortgage resets at a higher rate.

Adjustable-rate mortgages work well for buyers who plan to sell within the initial fixed-rate period or are confident that their financial situation will cover an increase in monthly payments. They are also rolling the dice that rates will go down during the initial period, and they could come out ahead when the adjustment hits.

Don’t forget the importance of your credit score and how it affects your mortgage rate. A credit score will determine whether you qualify for a mortgage and the interest rate you’ll be offered. The higher the credit score, the lower the interest rate you’ll qualify for. A score of 620 is a “fair” rating, not great. However, a credit score of 740 or higher will typically be considered to be in very good standing and can usually qualify for better rates.

There is a belief in the homebuying community that mortgage rates will continue to go down over the next several years. If this turns out to be true, we could be looking at a more advantageous real estate market going forward, and a lot of happy homebuyers.

Can you put yourself on the market?

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Feature.

If you lived in a waterfront condo and a developer offered you fair market value for your unit – and everyone else in the building – what would you do?

There are condo owners who are being faced with this possibility; some of them are even anticipating the inevitability of making life-changing decisions.

Because of the collapse of the Champlain Towers South in Surfside, Florida in June 2021, there has been sweeping condo reform. In 2024, the Florida Legislature passed a bill introducing regulations on how buildings are maintained and how condominium associations are governed. This has resulted in costly assessments for the oldest structures in the state, particularly in associations that have continually voted down costly improvements to buildings and upgrading safety features.

Associations are now required to fully fund reserves and to satisfy structural integrity requirements through periodic inspections with state-certified inspectors. This additional homeowner expense, combined with increases in insurance, cost of living and general maintenance, has made it extremely difficult for many communities, especially waterfront properties, to financially keep up.

Developers primarily on Florida’s east coast are continually searching for older condo buildings with older populations who may be open to bulk buyouts of all units. Based on condominium documents, either all owners or at the very least, a stated majority, need to agree.

All these years later, however, with many residents drowning in special assessments and doubling and tripling of fees, condo boards are looking for a way out. Older buildings and their residents are taking a proactive approach and employing seller representatives. Similar to listing your condo or single-family home with a real estate company to find you a qualified buyer, seller representatives position properties in the best way in the marketplace that would appeal to a developer and help them mitigate the risks attached to developing the property.

Working with condo boards and individual owners, they can explain how a bulk sale can yield more for owners than individual listings. In addition, they help guide owners through the process and get them comfortable with the transaction and reduce the anxiety of relocating for older residents who may have lived in the community for decades. On the other hand, some residents think they have hit a gold mine and become excited at the prospect of moving with a good bag of cash putting them in a better financial position.

Usually this is a win/win situation for all parties involved, however, not all aging properties will qualify for working with a seller’s representative representing a bulk sale. The property ideally is low-density with a two-story structure and of course on or close to the water with enough usable land for developers to reimagine the site. Finally, since most older waterfront properties are in the best locations, these bulk sales are the ones that developers are most interested in.

We’re starting to see a second wave of migration to south Florida on both coasts, the first being the COVID-19 migration. This time the taxes in the Northeast and possible political issues are driving companies to relocate to Florida, making older condos on prime property just right for developers, and gold mines for owners. This is good news for Florida and for some condo owners, even better news.

Let there be light

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

It doesn’t seem possible that we were blessed with a mild hurricane season and a drop in interest rates practically within the same month. But so far, home sales and a quiet hurricane season are both happening.

Last week, we reported the September sales statistics and I, for one, was pleasantly surprised. Now I’m looking at the national September sales reported by the National Association of Realtors and they’re confirming the same lift in September home sales as we saw in Manatee County.

Home sales rose in September to a seven-month high after buyers jumped on the declining mortgage rates. To be more specific, on a year-over-year basis, September home sales rose 4.1% nationally. In Manatee County for single-family homes, the same year-over-year comparison was 24.4% more properties sold. This offered some hope that the housing market could be improving on both a national level and, more importantly, locally.

Lower borrowing costs in September reflected contracts signed earlier in the summer when rates began to ease. The 30-year mortgage rate has gradually fallen from almost 7% at the start of the year and buyers are starting to make their moves. Some market analysts say they think the average 30-year, fixed-rate mortgage rate needs to drop below 6% to get things moving. Affordability is what buyers are looking at and 6% or less could be the magic number.

If you’re interested in buying this season, you probably need to review some basic buyer information I picked up from the Wall Street Journal:

  • Why do you need a home appraisal when getting a mortgage? To ensure the property’s market value justifies the loan amount;
  • Why is an adjustable-rate mortgage (ARM) different from a fixed-rate mortgage? The interest rate changes at predetermined times after an initial fixed period;
  • How are property taxes calculated? The tax rate determined by the local government based on the assessed value of the property determines actual taxes;
  • How much do married couples save on capital gains when selling their property? Up to $500,000 based on the purchase price of the property plus improvements, and years of ownership;
  • If you’re listing your property with a broker, what is the main purpose of the listing agreement? To establish the duration of the broker’s representation and commission;
  • If you own a property within a homeowner’s association (HOA), how are the rules stated? A binding document stating covenants, conditions and restrictions;
  • When are borrowers required to pay for private mortgage insurance? When the down payment is less than 20% of the purchase price;
  • What damage is most often not covered by standard homeowners insurance? Earthquakes and landslides; and
  • What document outlines all of the loan terms, monthly payments and closing costs? The loan estimate.

These points are just the tip of the iceberg on what you really need to know when purchasing real estate, but even these broad items will at least get you started on your homebuying adventure.

I know what you’re thinking; there are still more than three weeks in this hurricane season. But when I wake up and it’s below 70 degrees, I can’t help feeling optimistic. Time to get ready for an active Florida buying season. Keep an eye on the rates and improve your buyer’s knowledge. Believe it or not, there is light at the end of the tunnel.

Cool market, maybe?

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

All national and local publications and real estate websites cover the real estate market. And as I’ve said many times, all real estate is local, so a small town on Big Sur in California will be wildly expensive compared to a small town in Tennes­see. It doesn’t mean one is nicer than the other, but it does mean that one area may be preferred over another.

Therefore, when you look at national statistics, keep this in mind. The Case-Shiller National Home Price Index measures home prices across the country. In the 12 months they analyzed, ending in July, home prices rose 1.7%, which was down from 1.9% from the previous year. This was the weakest price increase since July 2023. Based on this report, their conclusion is that the housing market has downshifted to a lower gear, and has essentially stagnated.

New York City, of course, leads the pack with an average 6.4% rise for the year in home prices. Chicago and Cleveland are next highest in increases. By contrast, sev­eral Sunbelt and West Coast markets that were recently red-hot are now faring far worse. Our neighbor, Tampa, fell 2.8% for the year, coming in at the bottom of the list of 20 metro areas surveyed. Phoenix, also a hot western city, last year recorded lower prices for homes compared with the same months a year earlier.

Nevertheless, there are signs that the American housing market picked up later in the summer. Sales of pending homes rebounded in August ahead of the Federal Reserve interest rate cut, according to the National Association of Realtors.

Talking about local listings and sales, let’s look at the September statistics published by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 24.4% more properties than last year, and cash sales were up 40.4%. The median sale price was $470,000, exactly the same as last year, and the average sale price was $593,139, down 5.6% from last year. New pending properties were up 9.6%, and the median time to contract was 60 days compared to 47 days last year. Finally, the month’s supply of available properties was 4.2 months compared to 3.9 months last year.

Condos closed 31.7% more proper­ties than last year, and cash sales were up 55.6%. The median sale price was $296,500, down 7.3%, and the average sale price was $306,864, down 12.7%. New pending properties were up 3.7%, and the median time to contract was 92 days compared to 73 days last year. Finally, the month’s supply of available properties was 6.3 months compared to 6.0 months last year.

The Realtor Association sees a steady momentum with buyers return­ing after a flat 2024. It does look like a slight change going on and as the Case-Schiller National Home Price Index indicated, there seemed to be the beginning of a rebound in August.

Closed sales are up for both single-family and condos in Manatee County, likely reflecting lower list prices. However, what interested me the most was the increase in cash transactions compared to last year, 40.4% for single-family transactions and 55.5% for condo transactions.

You should live where you and your family are comfortable and happy, and if you happen to accrue some equity, that can’t hurt either. Not everyone can live in Big Sur, but Florida also has some amazing views.

For sale: Haunted house

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

Every year I try and write a light column at the end of October about disclosure of what I’ll call “stigma­tized properties.” Last year, I skipped this topic for about three weeks since most of us were in the middle of flood and hurricane cleanup and there was nothing funny about any of it. This year, however, is a totally different story and with a little bit of luck, next year we won’t have any hurricanes to write about – so on to the paranormal.

In most U.S. states, sellers are not legally required to disclose alleged paranormal activity unless they have a history of marketing the property as haunted. However, some states like New York, New Jersey and Massachu­setts have specific laws, and a seller’s disclosure is mandatory if asked directly, since failing to answer truth­fully can have legal consequences. In addition, some states may require disclosure for certain types of deaths, like murder or suicide, regardless of paranormal claims.

The best way to handle a property that may be stigmatized or has a repu­tation for being haunted is to answer a buyer’s question truthfully to the best of your knowledge and ability. Stigma­tized properties can impact their value and could lead to a lower sale price even if there is no proof of paranormal activity, so just like everything else in your home, honesty is the best policy. Also, if you have any concern about paranormal activity in your home or a home you’re interested in buying, check the state’s disclosure laws.

But what about Florida laws regard­ing paranormal activity? Florida does not require sellers to disclose para­normal activity in a home. Florida law mandates the disclosure of “material facts” that affect a property’s value, but it does not consider hauntings, deaths or crimes as material facts legally requiring disclosure. Buyers who may be concerned about such issues must talk to sellers directly, and sellers should be transparent about what they know, if anything, on this topic.

In addition to paranormal activity, Florida law does not require sellers to disclose deaths at the property, in­cluding homicide or suicide. Crimes committed on or near the property also do not need to be disclosed. And nearby sexual offenders do not need to be disclosed. This information is available to buyers by checking public databases or asking their attorney to do so.

Basically, Florida requires disclosure of material defects like roofs, electri­cal systems, appliances, consistent flooding, hidden mold and a variety of other material defects that could affect the value of a property.

Paranormal activity, no matter how much it may be a reality to some people, is not considered a material de­fect by the state of Florida. And if some of those crazy Northeastern states want to make laws about paranormal activity in properties for sale or include it on their disclosure forms, well, best I don’t comment on their decisions.

I think it would be a great year to dress up for Halloween and enjoy the fantasy of the holiday. If you happen to see a ghost or poltergeist, just remember they’re not a material defect, no matter how real they look. Always answer questions about your home truthfully and you’ll be fine. Happy Halloween.

Mortgage rates: How did we get here?

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

On Sept. 17, when the Feds lowered the benchmark rate, I thought, about time. Although the ¼ point reduction wasn’t enough to bring buyers out of the closet, it was the Feds’ promise of two more rate reductions before the end of the year that for a fleeting moment put a smile on my face, but maybe a bit too soon.

Borrowers who have been waiting for relief from high rates might have to keep waiting. Just to be clear, mortgage rates aren’t set by the Fed, so unfortunately, don’t bet on any major drops soon. For a brief moment in time, the average rate on a standard, 30-year, fixed-rate mortgage drifted down to 6.26%. This was the lowest level in nearly a year, then a week later edged back up to 6.3%. Now we’re hearing that it’s not expected to change much going forward.

The Mortgage Bankers Association recently estimated that mortgage rates would actually increase to 6.5% by the end of the year – what? Why is this happening? While anxious homebuyers are watching the Fed, what they should be watching is the bond market and treasuries in particular.

The big boys on Wall Street are watch­ing the long-term bond yields, which have been drifting lower for several reasons. Among them is the expectation that the Fed will soon start cutting interest rates but also raise the risks of a recession. One big reason that home loan rates have been high in recent years is that banks have been buying fewer mortgage bonds. I don’t know about you, but my head just exploded.

Meanwhile the average homebuyer just wants to get their life moving again. This is what you get when half the country refinances to a 2-3% mortgage – housing gridlock.

There’s an interesting story I read in early September about the danger of having an ultra-low-rate mortgage, so here goes: Once upon a time, there lived a nice young couple with two adorable little girls close to the beach in Florida. Even though their life seemed like a fairy tale, it wasn’t, and they decided to divorce. Sad as this was, their story became sadder still when they realized they couldn’t sell their home and afford to live separately near their children. And this is where it got complicated.

This couple, like many others in the country, took advantage of rock bottom mortgage rates in 2020 at roughly 2%. This was, of course, a good financial plan at the time, however, now that they are divorced, they are experiencing the “lock-in effect.” Basically, homeowners staying in place and not moving because they don’t want to give up their low interest mortgage creates a complicated lifestyle for the couples and the children. This couple has decided to both live on the same property, he in what they call the “beach bungalow” and she in a 19-foot Airstream trailer in their yard. Both have access to both properties, and the children are traded back and forth. And other ex-spouses are also finding a way to keep their mortgage by leaving the kids living in the house with the parents rotating in and out.

With the interest rates still high and the shortage of homes pushing prices up, it looks like couples like these will have this fractured living arrangement for a while. It’s a sad state of affairs when the only reason you talk to your ex-spouse is because you have a 2% mortgage. How on Earth did we get here?

What are capital gains?

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

I’m always surprised when I talk to people who have owned a home for maybe decades but have no clue what their tax responsibility will be if they sell that property. No one wants to think about giving money to the federal government so they don’t, but not preparing for the day you sell your home could be one of the biggest mistakes of your financial life.

Let’s start with what exactly a capital gain is. Capital gains is a tax on the profit you make from an asset such as stocks, real estate or other investments. For the purpose of this column, we’re going to talk about capital gains on real estate. Since not all real estate is created equal, it’s important to define your real estate holding, with the most standard ones being a primary home, secondary home or investment property.

Secondary homes and investment properties are best discussed with tax preparers who specialize in this area. However, most of us own a home that we live in, called our primary residence, and the federal government has tax exclusions available to homeowners when they sell their primary home. This doesn’t mean you should not seek out professional advice.

Since 1997, homeowners can reduce taxes on the sale of their primary prop­erty that you have owned for two out of the five years leading up to the sale. The IRS allows single taxpayers to exclude $250,000 of gain and married taxpayers filing jointly to exclude $500,000. According to LendingTree, American households are sitting on $34.5 trillion in home equity in the first quarter of 2025. A good portion of these funds will be faced with tax bills upon sale of the property, so it’s vital that homeowners understand their potential tax liability.

There is a way to further reduce the capital gains on your primary home by adjusting the basis of your home. Your home’s basis is generally calculated by adding the cost of capital improvements to the price you paid when you acquired your home. For instance, if you replaced your roof or remodeled your kitchen, those costs are considered capital improvements, and should be added to the price you paid for your house, thus reducing your capital gains liability.

There are two other ways to reduce your capitals gains liability but they will only appeal to a small percentage of homeowners. If you can afford to finance the sale of your home, that will save you capital gains. Or converting your property to a business property will give you the ability to dispose of the property via a 1031 like-kind exchange at a future date.

There is an act introduced by Rep. Marjorie Taylor Greene identified as “No Tax on Home Sales Act” (HR 4327). The bill aims to eliminate federal capital gains taxes on the sale of primary residences. Keep in mind if you reside in a state that has state capital gains requirements, you would still be responsible for paying capital gains based on your state’s requirement. States like Florida without a state tax will pay no capital gains on the sale of a primary home. President Donald Trump has taken an interest in this bill, which his administration considered in July.

Study up on capital gains if you’re within a few years of selling your primary home. Hopefully, you kept all of the receipts that would be considered a capital improvement, and start thinking about the capital gains you may be heading for.

Finally, meaningful declining mortgage rates

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

The Federal Reserve finally graced us with a lower interest rate bone on Sept. 16 that should make everyone happy. The reason this ¼ point reduction is important is that the Federal Reserve all but promised two more rate reductions before the end of the year.

Nevertheless, there are homeowners with low-rate mortgages who are still reluctant to sell and move on as much as they may want to. A quarter point or even a half point is just not enough encouragement for them to give up a once-in-a-lifetime 3% mortgage. So, the market may continue to be locked up with prices still pushing up for those properties that come on the market, and there aren’t too many of them.

However, there are still benefits to modest lower rates, especially for a first-time borrower, enough to qualify many buyers at the lower rate to be approved for financing. Here on Anna Maria Island and all of the other coastal communities in the area, including our neighbor, Cortez, buyers in these areas are less affected by mortgage rates. Therefore, the market for high-end properties will be less influenced by mortgage rates than by the overall economy.

Many if not most high-end buyers are all cash and even if they decide on a mortgage to free up more cash, they will likely not decide on buying because of a quarter or even a half point reduction. They’re eyeing the health of the general economy and the position of the lawmakers, particularly in Congress, to business and the stock market.

Nevertheless, a healthy real estate market generally is good for all of the real estate market. There is a trickle-up effect of a robust lower-end market positively impacting all price points in the marketplace.

August may be one of the slowest real estate months of the year, but sales are made nonetheless. These are the sales statistics for August reported by the Real­tor Association of Sarasota and Manatee:

Single family homes closed 5.7% more properties this year compared to last August. The median sale price was $467,640, down 5.3%, and the average sale price was $665,577, up 9.1%. The median time to sale was 101 days compared to 103 days last year, and the new pending sales were up 16.7%. The month’s supply of available properties was 4.6 months compared to 3.9 months compared to last year.

Condos closed 7.0% fewer properties this year compared to last year. The median sale price was $291,250, down 11.7%, and the average sale price was $354,958, with 8% fewer properties compared to last year. Median time to sale was 120 days this year compared to 139 days last year. New pending sales were 213 sales compared to 175 sales last year. The month’s supply of available properties was 6.4 months compared to 5.7 months last year.

According to the Realtor As­sociation, there is modest growth and stability in the single-family market, with the condo market down. Single family homes continue to be competi­tive, and the condo market is becom­ing more and more buyer friendly.

Will the Federal Reserve move the needle on more rates as indicated or will it just be more of the same old same old? The outcome is evolving, so stay tuned.

Mortgage fraud and hurricanes

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

You might not think that mortgage fraud and hurricanes have much in common. But if you get caught in a mortgage fraud, it could end up being the biggest hurricane you’ve ever seen.

There have been several stories recently in the news about mortgage fraud. This has been a long-running issue in the housing industry and now the Justice Department is getting serious about investigating.

But what is mortgage fraud? Mortgage fraud or mortgage scams are committed when someone who is involved in the process of obtaining a mortgage loan from a lender is deliberately deceitful and fraudulently misrepresents information that the lender relies upon when they agree to fund, insure and/or mortgage the property.

Frequently there is more than one party to a mortgage fraud or scam, among them, buyers or sellers of residen­tial property; buyers or sellers of com­mercial property; property investors; real estate agents; closing attorneys; property appraisers; escrow agents; home repair companies; and mortgage brokers.

Since mortgage rates have increased, buyers are motivated to get the best rate possible. Lenders typically offer better terms on mortgage rates for a primary residence with a higher mortgage ratio for a primary residence rather than a second home. For example, the down payment for a primary residence can be as low as 3% to 5%, compared to 10% to 20% for a second home and even higher for investment properties.

Many homeowners commit mortgage fraud simply to ensure they are able to purchase the property they want, by misrepresenting, omitting or otherwise telling lies about their financial infor­mation to qualify for a loan.

A term called “asset rental” becomes mortgage fraud when an applicant for a loan rents assets from another person or entity. Borrowing these as­sets is meant to inflate the borrower’s worth just long enough for them to be approved for the loan. Once approved, the assets are returned to whomever or from wherever they were received.

Inflating appraisals is another fraud common in an increasing equity market. The appraisal is inflated to make the property value appear more than it actu­ally is, tricking the lender into approving a larger mortgage than appropriate.

We are dead center in hurricane season and in Cortez where I live, we have had more than our share of hurricanes and flooding since last year. The fishing village and businesses along Cortez Road including Slicker’s and Foxy’s in particu­lar have suffered. Now that they are back in business, let’s hope they won’t be hit again. We need small businesses and the restaurants in the village to continue the way of life that makes this area unique and rare in Florida.

On a personal note, the condos where I live on the Cortez peninsula also experienced 4 feet of water in the first event and multiple tornadoes in the second event. We lost about half our landscaping and had over five units that incurred so much damage they were unlivable for months. The expense to rebuild mostly came out of resident’s personal funds or as­sociation funds. Another reminder to homeowners is that insurance rarely covers all storm related repairs.

No one wants to live through that again, so stay safe and be smart.

Signs of a real estate turnaround

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

Did you hear it? Did you hear buyers and sellers, and, of course, real estate professionals slightly exhal­ing the breath they have been holding for over a year now?

There are definite signs that we might start seeing a turnaround in the real estate market, although based on the July sales statistics for Manatee County, we really don’t see it here. You could argue there is a leveling off but certainly nothing to get excited about.

Across the country, however, the National Association of Realtors is report­ing a definite uptick of the market. Sales of existing homes rose unexpectedly in July, raising hopes that the stalled housing market is improving and setting up for a busy fall. Home sales nationally were up 2% from the prior month, which is only a slight gain, but a gain nonetheless.

Manatee County is still showing a decline in the number of properties sold and a decline in the median sale price as well. The inventory of available single family homes in Manatee County in July was 4.8 months, compared to last July’s availability of 3.9 months – a substantial increase. The national median existing home price in July was $422,400, while Manatee County’s median single-family sales price was $489,900.

Mortgage rates have edged down to their lowest level of the year. The average rate for a 30-year fixed rate mortgage declined last month to 6.58%. The hope here is that if the recent decline continues, it could set the state for a better-than-expected fall selling season.

In addition, the Federal Reserve has sent strong messages that rates could be cut. This in conjunction with inventory rising and prices dropping could open the door for first-time and marginal buyers. The Sunbelt, specifically Texas and Florida, have led the nation in the decline in prices.

Buyers are getting more leverage in making offers and choosing a property. However, first-time buyers are still not out of the woods. First-time buyers accounted for 28% of purchases in July. That was down from 30% in June and 29% in July of last year. If the 30-year fixed rate mortgage declines to 6% or below, we will finally see the first-time buyers coming back. We need first-time buyers, even first-time investors to spur the market above them.

Just for the fun of it, I read about a survey of the most expensive neighbor­hoods in the United States compiled by Zillow. Out of the top 10 most expensive neighborhoods, seven of them were in Florida and three were in California. The number one spot went to Coral Gables Estates in Coral Gables, Florida running over Beverly Hills, California. The second spot was Port Royal in Naples, Florida and the third spot was Old Cutler Bay, Florida.

And since we’re talking about Florida high-end listings, Miami’s upper end properties are trying a new tack. They are delisting their properties, not removing them from the market, but delisting, which is not the same thing. About half the sellers in this category are taking a pause until later in the year, probably around November. They believe the market will be more favorable to buyers at this time and also hopefully building a competitive edge since everyone wants something they can’t have. We’ll see if the psychology of this works, but it’s an interesting step either way.

So as we all look forward to the fall and the positive expectations we’re hearing, most of us are all just waiting to exhale.

Are you buying a house for the boat slip?

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

Buyers all come to the house hunting jungle with their lists of must haves and can’t stands. But when they’re looking for a waterfront property to buy, whether it’s a single-family home or a condo, it’s not unusual for buyers to focus on one thing: the boat slip.

Florida is boat crazy and it’s no wonder, being surrounded by water on all sides, offering incredible water access. Homes with available boat slips are all over the coastal communities on both sides of the Florida peninsula. Purchasing a property with an existing boat slip will generally be a higher price point, but how much higher?

Boat slips, pools, elevators and conve­nient beach access all add to the value and desirability of a property. However, not all buyers are willing to pay the extra money for something they may not use enough to justify. It’s a balancing act; you love the pool and spa, but is it worth $100,000 more?

True boaters will put the availability of a boat slip way before all other expensive amenities, and for good reason. Rent­ing slips in commercial marinas are expensive and sometimes difficult to find. Deeded boat slips are sometimes available for sale and some of the larger marinas like Longboat Key Club Moor­ings offer slips for sale as well. But there is nothing like stepping out your sliders and getting on your boat right in your own backyard. This is the dream of every boat owner, but it comes with a price.

Again, the value of a property is based on location, condition and amenities. Properties on protected water, like canals, all have seawalls which are owned and maintained by the property owner. Replacing seawalls is a very expensive operation. Sometimes the entire wall needs to be replaced because of flooding and hurricanes; and sometimes only the cap on the wall needs replacing because of age. Either way, if you purchase property with a seawall make sure you have it inspected by an inspector who specializes in seawalls.

Most boat slips also come with adjoin­ing decks, and sometimes boat lifts. Decks don’t last forever, especially if they were built with untreated wood; and boat lifts need occasional maintenance. These also need an inspection from someone qualified in this area and all of this needs to be done before, or at the same time, as your normal house inspection.

There are also condo communities with boat slips available. Some are deeded, some are assigned and some are rental. Keep in mind, deeded boat slips belong to the condo owner, with all the respon­sibilities that come with ownership. Assigned slips and rental slips belong to the association. Therefore, responsibility for maintenance belongs to them.

Those of us who are following the progress of the Seafood Shack property in Cortez that is now owned by Manatee County should take note of the most recent development. The county has been conducting community open houses to get a feel for what county residents see as the best use of this property. The original plan was to provide boat ramps and parking for vehicles and boat trailers. Apparently, some of the feedback has been not in favor of boat ramps and more in favor of parks and restaurants on the waterfront property. But it might be years before there is a finalized plan, so things can change.

When the boat slip is more important than the house, you’re leaving yourself open to potential problems. Take it from a long-time boater: salt water is the enemy of boats, seawalls and docks. Understand what you’re doing and make informed decisions.

Are we stuck in place?

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

I wrote a column that came out on Aug. 20 talking about moving trends around the country focusing on Florida and Manatee County. This week I’m going to talk about how mobility around the country is stalled and the effect on the economy.

Just to be clear, moving trends are where people are moving to and are separate from how many people are actu­ally moving. As far as Florida, there is a 2% annual growth rate over the past five years. Manatee County is growing as well with a steady stream of new residents pushing into eastern Manatee buying much of the new construction.

However, as much as we may be grow­ing with incoming residents, most of the country is experiencing a slowdown in relocations. In the 1950s and 1960s, 20% of Americans would move each year. There was a slowing down after this because the population was aging and that generation tended to move less. By 2019, the year before COVID-19, 9.8% of Americans moved. In 2023, only 7.8% of Americans moved, the low­est rate since U.S. Census records began in 1948, and 2024 has held steady.

American workers have always been willing to relocate for better job opportu­nity and young college graduates have also been willing to move for the same reason. I worked in the relocation end of real estate in the early and mid-1990s for almost 10 years and it was a thriving business, with several large relocation companies offering their services to corporations. Now, however, relocation packages are less generous, and potential employees can’t afford to close that financial gap and accept a job requiring a relocation. In addition, most households need two incomes now, making relocation for one member of the household more complicated.

So, what’s happening now, why are more people stuck in place in their homes and in their careers? We all know the housing market has stalled with the exception of pockets and areas that still thrive. Because of this, homeowners are in homes that are too small for them and in jobs that aren’t providing upward mobility opportunities.

Young people just entering the work force can’t afford a home and some even struggle with rent. Existing homeowners may have a low percentage mortgage and are not willing to increase that monthly expense and move up and older generations can’t find buyers for their family homes, depriving them of a much-needed downsize.

In the not-too-distant past through the 2010s, a median-income family who bought a median-priced home spent 30% or less of their earnings on housing costs according to Redfin. That housing cost was 39% last year.

None of this is good news for the economy. Corporations need new blood and new ideas and not being able to recruit the next generation into these jobs stag­nates their business. And young employees need the experience and upward career track to move on with their lives.

Sept. 16-17 is the next meeting of the Federal Reserve. Reuters has surveyed economists who are mostly in agreement that there will be a drop in interest rates in September and another one before the end of the year. So, September is the month to watch; if it happens, the stock market will love it and so will first time-home buyers.

We definitely need something to unclog the bottleneck in the real estate market. If we can get those first-time buyers in it will gradually trickle up the real estate ladder and get the much-needed mobility the country needs.

Homeownership in the golden years

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

Back in June, I wrote a column asking, “Are you tired of homeown­ership?” focusing on renting versus owning. Well, it now appears that plenty of people are tired of homeownership, primarily in the golden years of life.

The country is aging and so is the baby boomer generation and now they’re asking themselves, is this house really worth it? In my generation, if you didn’t own your own home you hadn’t evolved to adulthood and made a success of your life, or as my mother would say, “Renting is like throw­ing your money away.”

A lot of senior citizens, most of whom have been long-term homeowners, are choosing to rent instead. Developers have certainly taken note of this and are building single-family home communities for people 55 and older all over the country. The attraction is maintenance-free living while still having your personal space and living among people with similar interests. Also, renting always has in its favor the ability to pick up and move if you don’t like your neighbors or want closer access to family members.

In addition, the sale pitch for homeowner­ship has flipped. Younger homeowners had an interest and a need to build equity in order to move on to larger homes to ac­commodate a growing family. With no more kids to house and space for them to run around, why do you need the four-bedroom, three-bath home anymore? Most people also probably don’t need to build equity either at a certain point in their life.

According to 2023 Census Bureau data, the fastest-growing group of renters are those 55 and older. In addition, the share of renters 65 and older rose 30% in the past decade, according to a recent study by Point2Homes, a residence rental platform.

It appears that it’s a concept whose time has come with the aging of the Baby Boomers. Not all of them want to go into life plan communities and even fewer want to live with adult children. Keep your eye out for new communities that can also offer luxury apartments if you’re starting to think along those lines.

Time for July sales statistics published by the Realtor Association of Sarasota and Manatee.

Single family homes in Manatee County closed 9% lower this July compared to last July. The median sale price was $489,900, down 1.8%, and the average sale price was $631,195, down 4.5%. The median time to closing was 102 days this year compared to 100 last year. New listings were down 2.9% and the month’s supply of available properties was 4.8 months compared to 3.9 months last year.

Condos closed 10.7% fewer properties this July compared to last year. The median sale price was $320,000, down 2.7% and the average sale price was $329,947, down 6.9%. The median time to closing was 111 days compared to 121 days last year. New listings were down 11.3% and month’s supply of available properties was 7 months compared to 5.6 last year.

Need I remind you, we’re in the middle of hurricane season with the first Atlantic named hurricane last week. Not much hap­pens during hurricane season even in a good market, so it’s not surprising the market is quiet, to say the least. That said, there does appear to be some stability setting in with a slight uptick in all sectors in Manatee.

So, if you’re tired of fixing the air condi­tioning and cleaning the gutters, it may be time to unload the albatross you now call your home. Don’t worry about what my mother says, she’s not in a position to judge anymore and even she would probably admit that pulling weeds is not a good use for your free time.

Americans on the move

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

Americans have always moved around. Going back to the original settlers who first landed on the eastern coast of the country, everyone was looking for adventure and opportunity. Not much has changed; hundreds of years later, we’re all still looking for the golden ring.

According to relocation company Move­Buddha’s 2025 Moving Trends Report, Americans are still on the move, only now they’re looking for affordability, space and a better work-life balance. MoveBuddha analyzed over 55,000 searches on its website to determine where people are planning to move this year to date.

The most popular domestic destination for relocation in the first six months of 2025 is Conway, South Carolina, with four times as many people seeking to move in compared to those wanting to move out. In fact, since 2023, South Carolina has dominated interstate move searches. Conway surpassed its neighbor, Myrtle Beach, South Carolina which topped the list in the first quarter of the year.

South Carolina ranks number one for the move-in compared to move-out numbers, with 206 move-ins compared to 100 move-outs. New Jersey, California and New York have received the highest number of outbound inquiries, indicating that these states are more likely to lose residents in the future.

Moving trends are pointed toward affordability and quality of life, favoring states known for low home prices, less tax burden and Sunbelt climates. Certainly, Florida scores high points for all of these items in addition to a thriving job market and a business-friendly environment and lack of personal income tax.

In 2025, Florida’s population is estimated to be around 23.8 million with a growth rate of 2% annually over the past five years, making it the fastest growing state in the country. Florida is still growing; however, the growth rate may slow down in the coming years primarily because of housing affordability. Because of this, the growth areas could shift, and the infrastructure needs will likely expand.

So how does Manatee County measure up in the ever-changing Florida landscape? In 2024, Manatee County saw a significant influx of new residents, particularly from other parts of Florida and the Northeast, including the New York metropolitan area. This growth has led to increased development and pressure on the county’s infrastructure and resources.

Development has expanded from the coastal areas eastward into the more rural parts of the county – Lakewood Ranch, Parrish, as well as Palmetto and Ellenton. All areas of the county including coastal communities are experiencing rapid growth with new housing communities sprouting out of the ground where farms and ranches previously existed.

Manatee County is actively reviewing and amending its Land Development Code (LDC) and Comprehensive Plan to manage growth and development, particularly concerning future development. I’m skepti­cal how much real change these reviews will achieve since privately-owned land is sacrosanct and will be difficult for the county to control the usage of as long as it is within zoning regulations.

So, there will be some serious fights ahead with developers and government. But in a popular county with a population of 385,571 at last count, 244 sunny days on average and an average temperature of 73 degrees, 150 miles of coastline and of course zero snowfall, it will be hard to keep people away.

Few of us stay living in the same house, on the same street, in the same community and the same state for all of our lives. This movement keeps the economy healthy and the populations creative; it’s in our DNA and not likely to change.