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Tag: Louise Bolger

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.

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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.

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Florence – another wake-up call

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