Skip to main content

Tag: Louise Bolger

All real estate is local, especially now

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

My favorite real estate expression is “all real estate is local,” which I have used in this space many times. But what exactly does that mean?

Essentially it means that real estate markets are significantly influenced by local factors and conditions, rather than national or global trends. Also, it means that property values, demand and investment potential can vary greatly even within the same city or across the street.

This is important to the value of property because growth, population trends, school districts, amenities and local regulations all impact property values and demand. Relying solely on national or global trends can lead to poor decisions because they don’t capture the nuances of local markets. Therefore, when you read the following national statistics recently appearing in the Wall Street Journal according to Intercontinental Exchange, a financial technology and data company, keep this in mind: The metro areas that had the biggest increase in home prices in April compared to a year ago are:  Bridgeport, Conn., Scranton, Pa., Hartford, Conn., Syracuse, N.Y. and New York, N.Y. These increased ranged from a high of 7.3% to 6.4%.

The biggest decreases were in Lakeland, Fla., Tampa, Fla., Austin, Texas, North Port, Fla. and Cape Coral, Fla. These declines ranged from a high of 7.5% to 2.2%.

The report also compares home prices vs. change in housing inventories. For example, New York’s prices increased 6.4% in April while inventory was down 46% from pre-pandemic levels. This trend continued through the Midwest down through Texas and Florida ending in Cape Coral, Fla with a decline in prices of 7.5% in a year.

Also influencing these numbers is the amount of southern migrating occurring from 2020 to 2024. During that time, the south’s population grew 5.1% with Florida and Texas benefiting the most. Florida’s population increased 8.5% and Texas’ population increased 7.4% during this period, per the Census Bureau.

In response to the increase in population, builders started building in areas of Florida in particular that were farming communities. There are now new home communities going up in west Bradenton and north of the Manatee River in Parrish, inflating the number of properties on the market in Manatee County.

Nationally, the supply of homes for sale is still around 16% below pre-pandemic levels, according to Realtor.com. which is not what Florida is experiencing. Homeowners who locked in low mortgage rates a few years ago are reluctant to sell their homes and take on new mortgages with a higher borrowing cost, and buyers are still waiting for lower interest rates.

The wrap-up on these numbers is that the Northeast and Midwest home prices continue to rise in all major markets. In the South, particularly in Texas and Florida, prices are flat or falling. And in the West, prices are rising in some markets and falling in others.

In addition, the overall U.S housing market is far less active than it was a few years ago when mortgage rates were low and remote work allowed people to move farther from their offices. Again, I would not bet money on any of this. I’m not saying it’s not true only that it can change in a heartbeat. As soon as the snowbirds from all over the country and Canada figure out that Florida’s prices are dropping, and new construction is readily available, they will come back in force looking for a bargain.

Everything in life is dictated by what’s happening in your state, county, and street. All real estate is local; you better believe it.

Tariffs: The great unknown

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

No one likes uncertainty, not stock investors and certainly not homebuyers. Nevertheless, here we are, six months after devastating storms and facing another, what appears to be active hurricane season. Just as homes and psyches are getting back to normal, in rolls the biggest storm of all, tariff policies.

Nationally, buyers started gliding back into the housing market after two years of chronic slow sales. Showings for the week ended April 6 were up 39% from early in the year, outpacing the same period last year per Zillow. This was in spite of mortgage rates not moving off of the mid 6% range. Then comes tariff “reform.”

As it is, we on Florida’s west coast can’t seem to catch a break. Economic anxiety and extreme stock market volatility are destabilizing and confusing threats to the housing market on top of an already nervous housing market fueled by the storms. All of this makes potential buyers rethink their decisions.

A slowing economy raises fears of job security and investment security. If the negative effects of tariffs continue, it could put some pressure on the housing market and 2025 could be the third straight year of lower significant home sales. According to the National Association of Realtors, February pending home sales declined 3.6% from the same month in 2024, which is the weakest year for home sales since 1995.

Keep in mind that lower home sales do not always translate to lower selling prices, but if the trend continues, lowering prices could be a likely result. We as a country have a lot of equity in our homes starting during the pandemic years and not leveling off substantially. Home equity has climbed nearly 80% since early 2020 thanks to the extraordinary rise in house prices. Accord­ing to the Federal Reserve, that was about twice the rise in financial wealth including stocks and bonds as of the end of 2024.

This benefits all homeowners’ buyers and sellers alike. But the difference is that so many homeowners refinanced when the Feds slashed interest rates during the pandemic that nearly three-quarters of households with mortgages now pay 5% or less on their mortgages, giving them very little incentive to sell.

In addition, accruing equity and wealth in your home comes with another set of increasing expenses. Since a large portion of property tax is based on the assessed value of the property, the higher the assess­ment, the higher the taxes. Not all states have a cap on property taxes like Florida has for full-time residents, so if you’re not a full-time Florida resident or if you live in a state where taxes are not capped, you probably have had a large increase in property taxes over the past several years.

Another high financial expense that has increased is the cost of insurance and HOA fees for condos and even some single-family properties. Sometimes insurance goes up because the value of the property is higher, certainly a good thing. HOA fees are also impacted by insurance costs and specifically in Florida, the age of the condo.

And when you finally do sell, be prepared for capital gains tax, which could be a shock to the system if you are fortunate to have a lot of equity. The IRS has not increased the amount you can exclude from capital gains despite the huge amount of value accrued in our homes. It’s still $500,000 for mar­ried couples filing jointly and $250,000 for single filers, less expenses.

Owning a home has always been a sure-fire path to wealth, and I believe it still is and will still be the best investment you’ll ever make. But there are unknowns out there hovering over us and one starts with a big “T.”

Condo ownership challenging

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

If you like the condo lifestyle and you live in Florida, you’ve landed in the right place. But even what seems to be the right place can have challenges, especially in the environment we’re currently living in.

Let’s start with the rights of condo owners. Florida condo law, as outlined in the Florida Condominium Act (Chapter 718 of the Florida Statutes) will explain, in fine print, owner rights as an owner, but for the purpose of this column we’ll hit on some of the key aspects.

As a condo owner, you have exclusive ownership of your unit; remember, when you purchase a condo, you receive a deed just like if you purchase a single-family home. This includes the right to occupy, decorate, renovate, lease or sell your unit. Every condominium association has certain restrictions on these above rights which will be disclosed to a prospective buyer in both the association’s condo docu­ments as well as their rules and regulations. For instance, there could be limitations on types of modifications that can be made and may require board approval for renovations and/or modifications.

Owners have access to common elements such as pools, gyms, docks and clubhouses. Again, all of this is within association guidelines based on hours, noise restrictions and ongoing repair work.

Living in a condo association, you are automatically a member with a voice in the governance of the community. You will be asked to vote on material alterations, elec­tions for the Board of Directors and other significant community decisions. I can’t emphasize enough that becoming active in the community, volunteering on commit­tees and running for a board position is one of the most important things you can do if you want your voice heard.

Florida law ensures that condo owners have the right to inspect the association’s official records. Not all of the financial records can be disclosed in a board meet­ing, therefore, if you want more detailed information, you can ask the board for specific records you want to review.

Since no one is perfect, there may be times when you as an owner feel that rules are not being enforced equally or that there are excessive rules. This is also protected under Florida’s condo law and should be brought to the attention of the Board of Directors.

Certainly, the most important aspect of your rights as an owner is the stability of the association’s finances. This includes increases in fees, the addition of special assessments and a clear justification for fee increases, all of which can be contested by an owner.

One of the reasons to know what your rights are as a condo owner is coming to a head in several states but particularly in Florida. As a result of the Surfside disaster, Florida enacted specific inspec­tion laws relative to the stability of condo buildings that are three stories or higher. Condos need to be inspected by a Florida qualified inspector and if there are any structural repairs required, the association is mandated to make the repairs. In addition, in Florida, condo associations have to prove through their financial records and reserves that they have adequate funds to make any repairs needed.

Condo associations that haven’t prepared for this are facing large assessments and are also putting the ability of buyers to be approved for financing in jeopardy. Fred­die Mac is quietly blacklisting areas of the country or individual associations where mortgages will not be approved. This extends itself to the insurance industry, which could be another obstacle in the way of selling your condo.

A condo is still the most carefree lifestyle and perfectly suited to Florida living. You just need to stay on top of how the association is spending your money, stay involved and understand your rights.

The new real estate reality

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

It’s been six months since Hurricane Milton invaded us and every day we still feel the effects of the storm. Most of us are either continually rebuilding, cleaning up or juggling finances to get our lives back to where they were before the storms.

Last week we talked about buyer and seller remorse, but the deeper emotional issues are losing your home and your possessions. Most people have an emotional attachment to their homes and their community. Seeing disruption or actual loss has a lasting effect. A home is part of a community of friends, family, neighbors and memories.

Adding to the emotional loss is the sudden financial hardship of losing one’s home or experiencing major and costly repairs. Most people invest a huge portion of their net worth into their home and have accrued a great deal of equity, so watching it go literally down the drain leaves many homeowners worrying about their future financial security.

For Island people who have made the decision to move, selling after a major disaster can be challenging at best. These are the sales numbers the Realtor Association of Sarasota and Manatee provided for the two zip codes on Anna Maria as of February:

Zip code 34217, Bradenton Beach and Holmes Beach single-family homes: The median sale price in February was $1,105,000, down 39% from last February. The average sale price was $1,414,583, down 52.4% from last year, and new listings are up 33.3%.

This is the report from The Realtor As­sociation for condos in Bradenton Beach and Holmes Beach. The median sale price was $535,000 this February, down 13.7% from last year and the average sale price was $553,333, down 26.1%. New listings are up 6.7%.

Obviously, the single-family numbers look far worse than the condos, likely because there are so many single-family homes that were not elevated and had se­vere damage selling for reduced numbers compared to last year. The majority of condos are elevated and experienced less damage, at least from flooding.

Anna Maria, zip code 34216, had a median sale price of $1,750,000, down 12.5% this February compared to last year. The average sale price was $1,808,333, down 27.6% from last February. Finally, new listings in Anna Maria are up 31.6%.

Selling your home in the aftermath of a disaster requires patience and a fair amount of creativity. These properties need to be marketed as the future value, not the present value. There is great investment opportunity on the Island and based on the number of visitors in the past month, people still want to vacation here.

Buyers, especially younger buyers, are very much influenced by climate change and the effects that it will have on a barrier island. So, a balance has to be struck when listing the benefits and financial invest­ment available on Anna Maria Island. You can’t hide that we experienced a serious series of storms, and you have to be honest about damage sustained, but here again, we’re looking at future growth.

The effects of the storm, both physically and monetarily, are deeply unsettling. The physical landscape of the community changes and people move away, leaving a constant feeling of loss. It’s important to stay focused on how Anna Maria Island was before the storm and know it will come back right along with property values.

Buyers, sellers, hurricanes – and remorse

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

Remorse is the feeling of regret, second thoughts or disappointment in a decision recently made. When it comes to buying and selling real estate, it’s difficult not to have some level of remorse about the transaction, especially in the situation we’re in now.

Anna Maria Island has always been that special little place different from other coastal areas of Florida. Old Florida was true in Anna Maria, with no high rises, no big box stores and no drive-throughs. Island residents fought to keep it that way and were successful for decades.

The storms that invaded us last fall changed much of that. It took away prop­erty owners’ sense that they were living in a very unique place they loved when they had to make some life-changing difficult decisions. Because of damaged properties and insurance issues, many homeowners were put in the position of having to sell their beloved home and move off the Island, frequently accepting offers that were very discounted.

The seller’s remorse for these homeowners is very real; sadness, regret, anxiety and just plain mad that this happened to them. They not only lost their home but their very special lifestyle and for some, will never get it back. Coupled with the loss of their homes, most homeowners on the Island who experienced serious damage have also experienced a major financial loss. Even when the transac­tion is done, and you know this was the only option for you, it’s easy to still feel like you’ve made a mistake.

Sellers aren’t the only ones feeling remorse these days; buyers who are buying up many of the damaged Island properties are primed to think they, too, may be making a mistake. The high cost of living on a flood- and hurricane-prone Island could be giving even buyers with deep pockets reasons to feel remorse and have them running to higher ground.

Developers who are rushing to buy up properties and turn them into profitable rentals are only looking at their bottom line. They can tolerate the high insurance bills, maintenance issues of living on an Island and threat of storms in return for a big rental payday.

Individual buyers, however, may start to feel remorse buying into a storm zone. Did they make a decision too fast, have they overspent, even though it looked like a good deal, and, in retrospect, are they reconsidering how compatible Island living is for them and their families?

Some buyers wait years until they can afford their special place and then when it presents itself, bam, you’re thinking, “What did I do?” All of these feelings are real and may not actually materialize until the sale is final and there you are living on an Island possibly with homes being rebuilt around you.

It could take buyers years to shake off the feeling of remorse. Eventually, the entire Island will be rebuilt, and small-town life will hopefully be back.

As far as sellers, they’re probably asking themselves, will I ever see those beautiful sunsets again, will I ever be able to walk one block or 10 feet to feel the warmth of the Gulf waters and will I ever live in a place that I think of as special again?

My answer to that is all of what you love about Anna Maria Island is still there, only a short ride over the bridge. Get your Island fix even if you don’t live there anymore; you’ll feel better instantly.

It’s the buyers turn

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

Balance of power is something we usually talk about as it relates to international positioning between powerful nations. Now the phrase is lending itself to the real estate market and the buyers are finally getting the upper hand.

Homebuyers are benefiting from the fading disappearance of bidding wars. Sellers are willing to lower prices and offer incentives. Increased home listings are working to the advantage of buyers with less competition and more negotiating room. And most important of all, sellers are becoming more flexible, accepting offers below the asking price especially for properties that need repairs – like on Anna Maria Island – or proper­ties that are in less desirable areas.

However, all real estate markets are not equal. The National Association of Realtors indicates that homeowners with ultra-low mortgage rates have been reluctant to sell, but that is starting to loosen up as more people decide they can’t keep putting off a move and wait for rates to take a nosedive. The rates are starting to trend under 7% but not enough yet to move the needle and change the real estate market.

Housing inventories are also rising in certain states where properties look overvalued, so buyers are backing off. Because of the migration to the Sunbelt states during the pandemic, property prices in some southern states rose faster than in other parts of the country. In Florida, for instance, the value of the median home increased 64% over the past five years according to Redfin, compared with 42% in Illinois and 17% in New York. As we know, many of our out-of-state residents come from Illinois and New York.

The huge increase in value that Florida has enjoyed is slowing down as migration to Florida has slowed. The state is importing fewer new high wage earners to support the home prices and the insurance costs, putting affordability of home ownership out of balance for many buyers. Nevertheless, Florida is still a popular state and very tax friendly compared to northern states, with insur­ance costs starting to trend downward.

February sales statistics for Manatee County are out, published by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 22.1% more properties since February of last year. The median sale price was $480,000, down 8.6%, and the average sale price was $662,504, down 10%. Median time to contract was 49 days compared to 35 days last year, and the month’s supply of available properties was 4.6 months compared to 3.9 months last year.

Condos closed 7% fewer properties this February compared to last. The median price was $335,990, down 6.1% and the average was $408,238 down 7.5%. Median days to contract was 60 days compared to 47 days last year and the month’s supply of available properties was 8 months compared to 5.6 last year.

The wrap-up on these numbers indicate that sellers are no longer in a competitive market and need to adjust their expectations. Median sale prices are down, it’s taking longer to sell and new listings are going up across all categories.

Homebuyers have the most leverage over sellers in years. In our region, last year’s storms have increased that leverage. Eventually the market will catch up to the number of properties available, so pay attention buyers, this is your window.

It’s the buyers turn

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

Balance of power is something we usually talk about as it relates to international positioning between powerful nations. Now the phrase is lending itself to the real estate market and the buyers are finally getting the upper hand.

Homebuyers are benefiting from the fading disappearance of bidding wars. Sellers are willing to lower prices and offer incentives. Increased home listings are working to the advantage of buyers with less competition and more negotiating room. And most important of all, sellers are becoming more flexible, accepting offers below the asking price especially for properties that need repairs – like on Anna Maria Island – or proper­ties that are in less desirable areas.

However, all real estate markets are not equal. The National Association of Realtors indicates that homeowners with ultra-low mortgage rates have been reluctant to sell, but that is starting to loosen up as more people decide they can’t keep putting off a move and wait for rates to take a nosedive. The rates are starting to trend under 7% but not enough yet to move the needle and change the real estate market.

Housing inventories are also rising in certain states where properties look overvalued, so buyers are backing off. Because of the migration to the Sunbelt states during the pandemic, property prices in some southern states rose faster than in other parts of the country. In Florida, for instance, the value of the median home increased 64% over the past five years according to Redfin, compared with 42% in Illinois and 17% in New York. As we know, many of our out-of-state residents come from Illinois and New York.

The huge increase in value that Florida has enjoyed is slowing down as migration to Florida has slowed. The state is importing fewer new high wage earners to support the home prices and the insurance costs, putting affordability of home ownership out of balance for many buyers. Nevertheless, Florida is still a popular state and very tax friendly compared to northern states, with insur­ance costs starting to trend downward.

February sales statistics for Manatee County are out, published by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 22.1% more properties since February of last year. The median sale price was $480,000, down 8.6%, and the average sale price was $662,504, down 10%. Median time to contract was 49 days compared to 35 days last year, and the month’s supply of available properties was 4.6 months compared to 3.9 months last year.

Condos closed 7% fewer properties this February compared to last. The median price was $335,990, down 6.1% and the average was $408,238 down 7.5%. Median days to contract was 60 days compared to 47 days last year and the month’s supply of available properties was 8 months compared to 5.6 last year.

The wrap-up on these numbers indicate that sellers are no longer in a competitive market and need to adjust their expectations. Median sale prices are down, it’s taking longer to sell and new listings are going up across all categories.

Homebuyers have the most leverage over sellers in years. In our region, last year’s storms have increased that leverage. Eventually the market will catch up to the number of properties available, so pay attention buyers, this is your window.

Tax relief on the beach

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

It’s tax time again and tax time is never fun, but this year could be particularly not fun. In view of the 2024 storms, this tax filing season could be quite a bit different in addition to the normal tax benefits afforded homeowners.

I’m not a licensed CPA or even a tax preparer, so you always need to seek advice from a professional when it comes to finance of any type. I did, however, find a couple of points related specifically to Hurricane Milton. On Oct. 11, 2024, the IRS announced disaster tax relief for 51 counties in Florida.

Affected Florida taxpayers will now have until May 1, 2025, to file various federal tax returns and make certain tax payments. In addition, Hurricane Milton was considered a federal disaster, therefore, personal casualty losses can be deducted to the extent the losses are attributable to a federally declared disaster.

In normal times for the average taxpayer, your home is still the best shelter from taxes. Mortgage interest for a first or second mortgage or home equity loan is a deduction for taxpayers who itemize deductions. This deduction is for your primary home and to a lesser degree for a second home.

Local property taxes can be deducted subject to the SALT (state and local taxes) cap, which is $10,000. However, the cap is very controversial and there is an ongoing battle in Congress to get it reversed. SALT is part of the temporary 2017 tax law that is due to expire at the end of 2025 which could affect taxpayers in all states with high property taxes.

Home office deduction is frequently a gray area for people who do a lot of work from home. The law is if you receive a W-2 from an employer you cannot take the deduction for working from home no matter how much work you do for your employer from your home. The deduction is for individuals who use part of their home exclusively and regularly for business purposes.

There is a long list of expenses you have in running your home that you cannot deduct: Insurance, including title insur­ance; wages you pay for domestic help; depreciation; utilities and home repairs; internet or Wi-Fi access; and homeowners or condominium association fees.

The government does provide certain credits affiliated with energy-efficient home improvements up to $3,200 a year. The credit is for 30% of the cost of the improvement. Insulation, windows and doors qualify as well as heat pumps, water heaters and biomass stoves. In addition, homeowners who add solar, wind or geothermal power generation, solar water heaters or battery storage to their homes can claim a residential clean-energy credit.

The biggest tax savings, however, is when you sell your home, particularly if you have accrued a large amount of appreciation in your property. The gain in value in your property is the difference between the selling price and the adjusted base, which includes what you paid for the house, plus renovations or other capital improvements, which could be a long list.

In addition, the government gives homeowners a home-sale exclusion which further limits your capital gains. The exclusion for single tax filers is $250,000; for married couples filing jointly, it is $500,000. To qualify you must have used the house as a primary residence for at least two of the previous five years.

Good luck with your taxes. Remember to always consult a tax professional, especially this year if you have had home damage. Be happy it only comes once a year.

Life-changing events can reset priorities

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

To say that a combination of Hurricane Helene and Hurricane Milton less than two weeks apart changed the lives of everyone on Anna Maria Island and most of the coastal areas of Manatee County would be a gross understatement. Some areas came back sooner than others, but everyone was influenced by the storms and shocked at the amount of cleanup and repairs needed to get their lives back fully on track.

Last week we reviewed the Manatee County sales statistics provided by the Realtor Association of Sarasota and Manatee along with their ac­companying news release. Essentially, they’re saying our real estate market all over the county is changing to a buyer’s market, no surprise there. The surprise is how fast it happened and how fast fortunes can disappear.

I haven’t made a comparison of listings compared to pending proper­ties in a long time, but in view of this month’s numbers, it’s probably time; please note the listings include all variety of properties.

Starting with the City of Anna Maria, as of this writing, there are 70 properties available for sale ranging from $20 million to $549,900. There are nine in the upper range above $6 million, 38 in the mid-range and 23 at $2 million and lower. The upper range listings had no pending properties, the mid-range had three pending proper­ties and the lower range had five pending properties, for a total of eight pending properties out of 70 listings.

The combined cities of Holmes Beach and Bradenton Beach had 232 listings as of this writing, ranging from $16,750,000 to $60,000. There were 14 properties in the upper range above $6 million, 46 properties in the mid-range and 30 properties in the lower range below $2 million. The upper range did not have any pending properties, the mid-range had two pending properties, and the lower range had 32 pending properties. The total listings combined in the three cities on Anna Maria Island were 302 with 40 pending – you do the math.

The village of Cortez had 32 proper­ties listed ranging from $3,899,000 to $79,500 with two pending.

Although we experienced devastat­ing storms, giving our real estate market an unexpected blow, the coun­try as a whole is also experiencing a downward market. Data from the real estate analytics firm CoreLogic shows nearly 73,000 homes were pulled from the market after they failed to find a buyer in the final month of last year.

Sellers are reluctant to take lower prices especially if it means giving up their ultra-low mortgage rates. Home sales in 2024 were at their lowest level in nearly 30 years. Eventually sellers will slowly be more realistic if they need to sell because of a job, growing family or other life events that can’t be delayed. Green Street, another analyt­ics firm, predicts that U.S. home prices are vulnerable to a correction.

On the other hand, the luxury home market is putting a lot of pressure on the entry level home market. As prices go up in the luxury market, it takes everything below right along with it. This is true in the Miami area with their influx of the super-rich moving the annual number of home sales above $1 million up 147% compared to 2019.

Sometimes life-changing events are good to reset our priorities in life and remind us how quickly things can change. Keep cleaning, keep painting and be happy – you still can.

Rent, buy or add on?

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

Confused? Of course you are, if you’re a potential buyer. We are living through a very dysfunctional housing market and the maze doesn’t look like it’s ending any time soon. Should you buy, should you rent or should you find a tiny accessory home? The answer is different for everyone.

Buying has almost always been favored over renting when it comes to housing. For some, renting is considered “throwing money away” while buying is an “invest­ment.” The truth is the answer is much more nuanced and really depends on what is the right fit for you.

Renting is a short-term solution as opposed to homeownership, which is much more of a commitment in terms of finances, time and labor than renting. Nevertheless, the argument for home ownership has always been building equity and doing as you please with your property.

In today’s real estate world, home­ownership is very elusive to first-time buyers. Inventory is in short supply, interest rates are rising and particularly in Florida, insurance is totally unpre­dictable from one renewal to the next. Right now, the cost of buying a home versus renting one is at the most extreme since at least 1996. The average monthly new mortgage payment is 52% higher than the average apartment rent, according to CBRE, a global commercial real estate services company.

A person buying a home today will pay 60% more for monthly repayment costs than if they had bought the same house three years ago. As a compari­son, rents rose by 22% over the same period, a little ahead of the inflation rate but far below the cost of purchas­ing on a monthly basis.

If the home you’re considering buying is a long-term investment and you can scrape up the monthly costs with a little extra for inevitable repairs, then in the long run you’re better off. But this decision is an individual one based on job security, family needs and the desire to grow equity.

Trying to fill the lack of the affordable property gap are tiny homes or ADUs (accessory dwelling units). These are typically small apartments tucked away in the backyard, over garages or extended out from the main house. They are getting a second look from buyers who are build­ing, and contractors are providing options for these units as part of new construction. This is a growing trend to keep an eye on.

Finally, I feel that in the best interest of homebuyers, I must mention this last item. Realtors – specifically The National Association of Realtors (NAR) – are facing two federal antitrust trials relative to com­missions charged. Realtor commissions are typically 6% shared between the listing and the selling agents, creating a potential conflict of interest. Keep in mind this is not set in stone and sellers can ask for a lower rate before they enter into a listing contract.

The first of these two antitrust cases was decided by a jury against the NAR on Oct. 31. The decision will be appealed, and it could take years before there is any final conclusion. The second case has not gone to trial yet, but we can assume there will be more antitrust cases going forward.

This ruling and others that may be com­ing can possibly change the way business is done in the real estate community. I know how hard most real estate profes­sionals work and how much experience they offer their clients; therefore, I’m staying neutral.

Well, if you were confused before, I just made it a little more confusing. However, renting or buying should not be confusing, it should be well thought out before moving forward.

Castles in the Sand

Is it worth the walk?

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

Many years ago, my husband and I were in Athens, Greece, and on our way down from touring the sights at the top of Acropolis Hill, someone stopped us and asked, “Was it worth the walk?” After my initial shock that this question would be asked – considering where we were – I thought, “Isn’t everything worth the walk?”

The thing that is definitely worth the walk now is every single house that comes on the market in your price range, even if it’s not exactly your dream house.

We’re in what appears to be a changing real estate market. This spring seems likely to be less competitive than last spring when homes flew off the market as buyers rushed to take advantage of ultralow interest rates in an appreciating housing market. Some buyers will have to drop out of the market if they were borderline for financing, but there will still be plenty of qualified buyers and plenty with cash. No one expects prices to go down anytime soon, but an increase in inventory is looking promising.

The increase in mortgage rates is slowing home sales. Existing home sales fell 4.5% nationally in March compared to March of last year, according to the National Associations of Realtors. Manatee County’s home sales for March decreased by a lot more than that, falling by 20.2% compared to March of last year. In the opinion of the chief economist for the National Association of Realtors, the frenzy is winding down and the volume of home sales is starting to revert to pre-pandemic levels. That I’ll believe when I see it, especially on Anna Maria Island. There are still multiple buyers for every property that comes on the market, even if there will be more properties available.

As reported last week, Manatee County continues to ride the enormous wave of an appreciating market. Selling prices continue to break records in both Manatee and Sarasota and indeed the entire North Port-Sarasota-Bradenton region, which is reporting a 29.9% increase in single-family homes from last March. Sarasota County also showed a large increase of 28.4% in the sale price for single-family homes, however, Manatee County led the pack with a 32.9% increase in single-family sales prices.

So where does all this great information and opinion leave potential buyers? It leaves them with the hope of more properties to see that may fit what they’re looking for. They shouldn’t expect the prices, certainly in our area, to change much, if at all, but they may get more of what they were looking for in a home.

This goes directly back to my “Is it worth the walk?” scenario and the answer is “Yes.” Every house that comes on the market in your price range and in your desired area should be seriously considered. Forget about the colors on the walls or the lack of interesting landscaping or the clutter on the bathroom counters. It’s time to go back to basic house-hunting principles: If a home has good bones, it should go on your list; if you can qualify for a mortgage for this home, it should go on your list; and if the home is workable, keeping the future in mind for your family or for your investment, it should go on your list.

It’s possible that eventually, prices will level off as the pipeline of buyers waiting for new properties is gradually exhausted, but we have no idea when or if that will happen. Now is the time to take the walk up the hill. You’ll be glad you did.

More Castles in the Sand

 

Does anyone know what’s going on?

 

The end of an era

 

Addictive real estate

Castles in the Sand

Before you sell, become a home historian

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

Last week was Halloween, and we talked about disclosing everything, even if not required by law, that might be negative about your home to prospective buyers. What may seem ridiculous to you, like spirits real or not, deaths in the property or other than conventional activities, could be a hot button to a buyer. But do you know everything about your home, the good, the bad and the ugly? Putting your property on the market is the perfect time to delve into your home’s history and a unique marketing tool.

The state of Florida is not known for many historic homes like New York and Boston, dating back to the founding of the country, and even though there were settlements in Florida going back to the Spanish, not too many actual homes have survived compared to the northeast. Bradenton has some beautiful older homes downtown, as do other cities around the state like Jacksonville and St. Augustine, but it doesn’t matter if your home or the home you’re considering purchasing is 100 years old or 20, don’t you want to know its history?

There are professional house historians willing to do research, particularly on older homes dating back to years before records were efficiently kept. They will research public records, church records, history books and even do interviews with local residents who may be familiar with the property. This service, of course, is provided for a hefty fee and results in a nice book full of information for the owners and future owners.

I love the concept and feel that even if your house was built in more recent years, there may still be information about it you don’t know. For instance, who was the architect who designed the house, are the original drawings still on file, and what are the names of the previous owners, an answer which could surprise you, especially in a second home beach area like Anna Maria.

Wouldn’t you just love to know if famous people visited the Island and stayed in your house, such as actors or political personalities? We already know that professional ball players and circus performers came to Anna Maria, maybe they stayed in your home. The possibilities are endless, especially if you can find just the precise person who has been around long enough to point you in the right direction.

A search of the town records would also give you structural information about the home. Were permits pulled to repair damage that could have been from fire or flooding or pest infestation? Did a major hurricane occur in the early years of the home and are there any survivors from that event still around to interview?

You might want to include pre-renovation photos from the time you owned the property, pictures of some things unique to your house like the wall showing how your children grew through the years or a picture from your daughter’s wedding in the yard. Include dates of significant storms and if you evacuated and to where. Brief introductions to current neighbors and some history on the surrounding homes would be a nice touch.

Not only is a history book a great way to introduce potential buyers to your home, but it’s also a wonderful gift to new owners to pass down to future owners. It shows the love you have for your home and keeps the story of the house alive.

Every house has a compelling story to tell, and every room within the house represents a life lived. Make your house one for the history books.

More Castles in the Sand

Real estate sales can require scary disclosures

Florence – another wake-up call

Fannie, Freddie and Ginnie