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Tag: real estate

Legislation would eliminate property taxes

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

It’s been an interesting month, but then, December usually is. Lost in the gay atmosphere of the holidays, it’s easy not to notice that business goes on as usual, and this December didn’t disappoint.

Gov. Ron DeSantis’ property tax elimination plan was back in the news and this time I read it. There are several house joint resolutions that are being considered for the 2026 ballot. All of them to some degree are aimed at abolishing property taxes on properties that are homesteaded. These are the key proposals:

• HJR 201: Eliminates non-school property taxes for homesteads entirely;

• HJR 203: Gradually phase out non-school property taxes over 10 years by increasing exemptions annually;

• HJR 205: Exempt residents 65 and over from non-school property taxes;

• HJR 207: Add a 25% homestead exemption on assessed value for non-school taxes; and

• HJR 209: Add a $100,000 exemption for insured homesteads.

The governor is in favor of eliminating all property taxes on primary homes, viewing them as paying “rent to government.” The legislative approaches favor a menu of options for voters on the ballot.

The impact of any one of these options could raise home values by 7% to 9%, which could be a boom for current owners but harder for first-time buyers and renters. Governments would need new revenue to replace lost property tax and even if school property tax is preserved, other taxes could be eliminated, impacting overall budgets.

The next step for these constitutional amendments is passing the Legislature and then being approved by Florida voters in the November 2026 general election.

The other piece of December business-as-usual is the meeting of the Federal Reserve on Dec. 10. At that meeting, rates were reduced by a quarter of a percent, which was the third straight cut this year. However, the vote was not unanimous, and the indication is that it could be the last rate cut for a while.

As usual, when the Feds cut rates, it does not always translate into lower mortgage rates, but it does give an overall feeling of stability in the country’s financial position.

So, let’s take a look at the November Manatee County sales statistics released by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 13.7% fewer homes this year compared to last year. The median sale price was $487,233, up 13.3% from last year, and the average sale price was $653,655, up 9% from last year. The median time to contract was 59 days this year compared to 45 days last year. Active listings are up 8.4% compared to last year and the month’s supply of properties is 4.2 months, up 7.7%.

Condos closed 16% more properties this year compared to last year. The median sale price was $308,000, down 0.6% this year compared to last year, and the average sale price was $332,602, down 3.6% compared to last year. The median time to contract was 74 days compared to 53 days last year and there were 3.4% more listings this year compared to last. The month’s supply of properties was 6.5 months, down 1.5%.

It’s pretty clear that the Manatee housing market is still struggling from last year’s hurricanes; so far there is no clear narrative or direction. Buyers and sellers will be faced with ups and downs in the early part of the new year and hopefully find their footing going forward.

If Florida is successful in passing almost any type of property tax relief, I agree it would be a boom to real estate. Watch what goes on in the Legislature as the new year progresses.

Wishing everyone a wonderful holiday season enjoying celebrations with friends and family.

What’s the future of housing?

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

Everyone who owns real estate, lives in real estate, finances real estate or sells real estate is buying crystal balls for Christmas; 2026 was expected to be a steadier housing market, but so far, there are no significant signs of stability.

Realtor.com recently researched and prepared a 2026 housing forecast. They concluded that mortgage rates will average 6.3%, easing affordability pressures slightly. Home prices will rise modestly by 2.2% and existing home sales should climb to about 1.7%. None of this is earthshaking, but it is a meaningful gain from this year. Nevertheless, home sales will remain well below normal as high prices and financing costs continue to hold back demand.

At the same time, for sale inventory will continue to recover, up nearly 9% year over year. For homebuyers and sellers, this represents a shift to a more balanced market, offering breathing room and negotiating power that favors buyers.

The mortgage rate lock, which is, in effect, caused by extremely low rates during the pandemic years, has left many homeowners with a strong reason to not move even if they have the need and desire to do so. Recent data showed that four out of every five homeowners with a mortgage has a rate below 6% and many are at 3% or slightly above.

Home prices are expected to continue to climb in 2026, however, inflation is expected to outpace these gains. Essentially, this means that home prices will decline slightly after inflation is adjusted. The good news is that after higher-than-expected mortgage rates in most of 2025, the rates are finally starting to relax, especially in the second half of the year. The expectation is for rates to drop into the low 6% range.

All home buyers will benefit from lower rates and more inventory. However, it’s the first-time buyers who will benefit the most by finding an opportunity to get into their first home. The real estate market is driven by these first-time buyers since they will likely be moving up to a larger and more expensive property in the years ahead, keeping the real estate train rolling.

Realtor.com also included local market predictions in metro areas around the country. North Port/Sarasota/Bradenton are the metro areas we are part of. The prediction for us, therefore, is 2026 sales growth year over year up 0.8%, and the 2026 price growth year over year down 8.9%. Tampa/St. Petersburg/Clearwater is the next closest metro area to us. The prediction for this area is 2026 sales growth year over year down 3.1% and the 2026 price growth year over year down 3.6%. If you’re interested, you can print out all of the metro areas from the Realtor.com website.

I heard about the Realtor.com report from a television interview with Bill Pulte, who is the director of the Federal Housing and Finance Agency (FHFA) for the country. He oversees Fannie Mae, Freddie Mac and the Federal Home Loan divisions. His take on this housing forecast was a lot rosier than mine was after reading it myself. I suppose that’s his job, but keep in mind that Bill Pulte owns Pulte Homes, a large nationwide developer of new homes – just saying.

Since real estate markets affect all aspects of the economy and personal lives, everyone is anxious about the new year. You can always depend on your crystal ball, but better get on Santa’s list before he runs out. It looks like there will be a rush on them before Christmas Eve.

List too high, sell too low

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

Why is it that every home seller always thinks their property is worth more than the identical one next door? Much of selling real estate is an art as much as a financial transaction; that’s why no two houses are identical, even if they are.

The success in selling your home probably won’t be the cook’s kitchen that cost a small fortune or even the spectacular sunset views. More than likely, if you’re serious about selling your home at this point in time, you might need to drop the price.

The National Association of Realtors (NAR) is telling us that overpriced houses are languishing on the market as buyers continue to be deterred by elevated mortgage rates and economic uncertainty. Sellers have optimistically priced their homes based on sales from earlier in the 2020s when properties were getting snapped up quickly at high prices. However, the NAR economists are advising owners to decide on an asking price by looking at what comparable houses in their area sold for in the last month or so.

According to Realtor.com, just over 20% of active listings in October had a price cut. This is higher than in the past couple of years, and about twice what it was when prices soared during the COVID-19 pandemic.

In addition, the NAR tells us that homes priced correctly from day one tend to sell more quickly and get nearly 100% of their asking price. After three months, sellers usually trim prices by more than 5% and after a year by more than 12%. Also, if a listing has been on the market for a month or more, buyers sense blood in the water and take the opportunity to negotiate a discount price.

That said, why would you as a seller want to put yourself in that position? The longer you don’t sell a home that you have decided to sell, the more it costs you – not just in money, but in the anxiety of not being able to move on with your plans. If the property is a second home or investment property, then the anxiety may turn into a major financial problem.

Even though inventory is short, so are buyers, and the buyers that are out there and making offers have leverage in making a decision. About 57% of homes sold in 2025 through October had at least one price cut according to the NAR. Between 2020 and 2024, that percentage was closer to 47%. For homes that did sell this year so far with a price cut, the sale price was an average of 3.7% below the asking price. You can assume that there were other sales that had prices cut way above that average.

Finally, sellers are taking their properties off the market rather than cutting prices. Since no one really knows what the future brings, delisting may not be the best strategy, especially in Florida and other southern states. Settling on a list price is best left to real estate professionals who understand that the art of listing is not quickly acquired. These are the people who have heard every story from sellers about the value of their homes, and they’re also the people who will tell you why you need to reevaluate your expectations. Trust them, it’s for your own good.

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.

Are you planning on outliving your mortgage?

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

In the olden days right after World War II when houses were coming out of the ground like spring flowers, homebuyers were typically in their 20s and fully intended to pay off their mortgages. Now, however, the median age of buyers has reached an all-time high of 40 and many will not likely outlive their mortgage.
The White House is working on a plan to introduce a 50-year mortgage to make it easier for Americans to afford homeownership. It’s true that a 50-year mortgage would likely make it easier for buyers to qualify for a home loan. In these high interest, low inventory times, it’s something that will have a lot of appeal to buyers who can’t find any other way to afford a home.
Based on a $400,000 purchase with 20% down and a 6.22% mortgage rate, Freddie Mac estimates the difference between a 30-year mortgage and a 50-year mortgage is about $200 a month. This lower monthly payment will qualify many buyers who otherwise wouldn’t qualify for a loan to finally get into their own home.
It’s one of those “looks great on paper” theories, but is full of danger and buyers who end up being financially overextended. Home mortgages are generally front-loaded with interest at the beginning of the loan term so building equity in the early years of ownership is difficult. Since 50-year mortgages will likely be offered at a higher interest to offset the credit risk to the lender, this will make building equity almost impossible.
For buyers who are still in their 20s and plan on living in a home for a long time, the case can be made that this is a good choice. But as stated, buyers are older now, jobs may not be forever, and marriages and partnerships come with a high rate of breakups. Nevertheless, a 50-year mortgage could be just the right option for buyers who are very confident in their life choices and are able to live conservatively to overcome future bumps in the road.
Last week, we published the October sales statistics, which were all positive numbers compared to last year. However, the numbers were skewed because of the negative effect of the hurricanes in 2024.
However, the national sales also rose to an eight-month high in October, helped by the small decline in interest rates. The national median existing home price in October rose to $415,200, a 2.1% increase from a year earlier, according to the National Association of Realtors (NAR). As a comparison, Manatee County’s median single-family home sale price this year was $481,000, an increase of 0.2% from last year. The NAR also reports that prices are falling in some southern and western markets, giving buyers more of a negotiating edge.
In spite of buyers having an increased level of comfort in the market, Redfin reports that there are more than a half-million more sellers than buyers in the national housing market in October. This is the biggest gap on record going back to 2013.
Many old homes in the Northeast have a “mortgage button” embedded in the newel post of their stairway. The tradition is that when the mortgage is fully paid, the wooden button is replaced with an ivory one so everyone coming into the home knows the home is mortgage free… a nice tradition that unfortunately we won’t be seeing much of in decades to come.

Look to the future

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

Time to talk about Cortez again in view of the monumental changes being made on the Cortez peninsula and, by extension, within the fishing village. The changes will affect all Cortez residents and many residents of Manatee County as well, and likely some of it you won’t agree with.
You would never know it now if you took a ride down 127th Street past the former Seafood Shack Restaurant site, but the property owned by Manatee County is slated for a major overhaul. As a matter of fact, you can’t even access 127th Street from Cortez Road since the county is working on infrastructure for the new Cortez Bridge scheduled to start construction late 2025 or early 2026, also a big change.
At this moment, the Seafood Shack property is tentatively being renamed the future Cortez Marina. Plans for the best use of this property are still being worked on and the county commissioners are looking for input from residents. At a meeting held in Bradenton Beach on June 12, with residents from the peninsula, there were a lot of opinions. Mostly homeowners were concerned about traffic flow and boats on trailers accessing narrow roads on their way to a planned boat launch area. If you’re concerned about how the property is being developed – whether you live in Cortez or not – you should make your voice heard. Don’t wait for another meeting; you can email the commissioners, whose contact information is on the Manatee County website.
In addition to boat ramps and parking for boat trailers it is suggested that the site could be a landing area for a water taxi and possibly the Gulf Islands Ferry with vehicle parking provided for that purpose. Also discussed was a restaurant and hopefully some retail space, both of which would be a bonus to the community.
Will these changes give new life to the 8 acres? I believe it will, even though not everyone will be happy with the county’s plans. Some other positives are a fixed high-level new bridge to the Island with some pedestrian- and bike-friendly areas, providing quick access from the Island in the event of storms as well as access to the charm and seafood restaurants of one of the few remaining authentic fishing villages in Florida. Add to this a new active boating area on some of the best boating waters on the west coast of Florida and hopefully you will see a facility that will be a draw for more than just the boating community.
What, if anything, does this mean for real estate values in Cortez? There’s no surprise that values are down and available listings are more than available buyers. However, if you are a home or condo buyer considering waterfront and water access property, I would give Cortez a serious look. We’re in a buyer’s market and Cortez is not immune to that so it can be a very advantageous time to buy. Primarily I keep thinking about how things will look in a couple of years after everything is rebuilt and spanking new for an underused 8 acres of prime land. Property values can only go up in an area with spectacular water views and convenient water access.
Ask yourself why did you come to Florida in the first place? Was it to live in a master planned community or to live in a vibrant varied community on the water, where the dolphins are jumping every day? I’m optimistic for the first time since October. I believe little Cortez will come back better than ever and more valuable. Look to the future – not the past.

Florida condo owners getting a break

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

It hasn’t been pretty for condo owners in the Sunshine State since the collapse of the Champlain Towers South in 2021. After this tragedy, laws were passed requiring “milestone inspections” of older buildings and “structural integrity reserve studies” to determine how much money should be saved for future major repairs.

The milestone inspections were supposed to be completed by the end of 2024 for certain older buildings that are three stories or higher. Some condo associations hit owners with large assessments in the race to comply with the deadline.

On April 30, the Florida Legislature unanimously approved changing some of the condo laws enacted after the Champlain Towers collapse. HB 913 was passed to the governor’s desk, and he is expected to sign it into law. One of the changes was to extend by one year the structural integrity studies to Dec. 31 of this year. Hopefully, this will help some associations, but others will still struggle to meet the new deadlines.

Another change in the bill says the milestone inspections and structural reserve studies apply to buildings that have three or more habitable stories. Current law requires the buildings to have three stories or more, not specifying whether the ground floor is habitable. I remember at the time the original law was enacted, the definition of three stories was confusing, so clarifying this is an important point. It also could change how some condo buildings are evaluated going forward.

The bill will also allow for a temporary pause in reserve funding for two years immediately following a milestone inspection. This will give condo associations flexibility on meeting reserve requirements and also allow associations to use lines of credit or loans to satisfy reserve obligations if a majority of owners approve.

Under current law, the structural reserve studies target features that affect buildings’ structural integrity or safety, including roofs, plumbing, electrical systems, windows and exterior doors. The studies also include other items that have deferred maintenance expenses of more than $10,000, which the bill raises to $25,000.

Finally, the new measures also address education requirements of condominium association managers and management companies. In Florida, all newly-elected or appointed directors of HOA and condominium associations must complete a new board member education course within 90 days. This requirement also includes annual continuing education hours, with the amount varying based on the size of the association. The educational curriculum must include training on financial literacy and transparency recordkeeping, levying of fines and notice and meeting requirements.

The new law makes training mandatory for Florida condominium board members. Non-compliance by a director who fails to timely comply with the certification and training requirements may be suspended from board services.

Associations with fewer than 2,500 parcels require at least four hours of continuing education annually. Associations with 2,500 or more parcels require at least eight hours of continuing education annually.

In a variety of ways, educating board members is the most important issue to come out of this legislation. Many condo associations would not be in their current financial and possibly dangerous positions if their boards were better informed.

The spirit of the legislation as I see it is to keep condominium structures safe for residents and to give owners and associations some financial relief. Many homeowners in southern Florida are having to make a choice of whether or not they are going to leave their beloved Florida homes. HB 913, when finally approved, will give them some financial breathing room without giving up the structural integrity of their homes.

It’s a rare thing to see all of government come together and agree; something to celebrate.

The end of another era

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

I live in Cortez and was never a fan of the Seafood Shack restaurant, although it did come in handy on occasion. Well now, if you didn’t already know, the “shack” has been demolished. It sustained a great deal of damage from the storms and Manatee County, who now owns the 8 acres of property where it sits decided to tear it down. The Shack didn’t get the attention that Annie’s Bait & Tackle received a week earlier when it was decided to also demolish what was left of that structure, also part of the parcel the county now owns.

Why is this significant to the real estate values on the Cortez peninsula? Well, for one thing, the property looks like it’s been through a war and is fenced off from the street on both the east and west side of 127th Street. I have confidence that the county will eventually remove all of the debris from the building as well as the marina but what ultimately remains will certainly not be attractive or Old Florida in feel, which was part of the charm of the area.

When the county finalizes its plans for a boating facility with ramps and trailer parking and when it’s finally constructed it will certainly be an improvement. Until then we who live here and those who may be considering selling their homes or condos could face some negativity from potential buyers not familiar with the area.

The best thing the county could do for homeowners on both sides of Cortez Road is to decide on a design for the 8 acres of Seafood Shack property as soon as possible. Making a plan available would at least be something potential buyers and sellers can refer to about the future of the peninsula. It’s hard to sell something where nothing exists and there are very few buyers who can envision a future, no less an investment in this area.

Last week we discussed the Manatee County sales statistics for March and now we’ll look at the national numbers for March. According to the National Association of Realtors, the sales of existing homes in March posted their biggest monthly decline in more than two years. Existing home sales fell 5.9% in the country compared to Manatee County’s single-family home sales which were down 8.5% compared to last March.

The NAR also reported that the national median selling price for single-family homes was $403,700 in March, up 2.7%. Manatee County’s median single-family home selling price in March of this year was $506,317, up 1.8% from last year.

A survey of economists had estimated a monthly decrease in sales of 3.1% compared to the 5.9% drop. Meanwhile inventories of unsold homes continue to increase and uncertainty in the financial markets continues to be a factor leading to a likely fall off on asking prices. The recovery that economists were hoping for so far has not happened, but the year is still young, and a lot can change.

6.5% or 6.8% interest rates will become the new normal and buyers will eventually get accustomed to those numbers. It’s been about 10 years since we’ve seen rates that high, so the generation of buyers in the market now has no experience with higher interest rates.

So, are we at the end of an era or the beginning of a new one? Florida has perpetually reinvented itself from the wild days of cattle drives to the leveling of ranches and construction of small cities. I predict we will look back at 2024 and 2025 as the years when Florida reset yet again.

Real estate brats

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

One of the things I love about writing this column is that while I’m doing my research, I frequently stumble on things I never heard of and likely never would in my day-to-day life. This month I learned a new word, “brat.” Brat, of course, is not a new word; it generally refers to someone spoiled or childish. However, this version of it started with an English singer who I had never heard of either.

So, what does this have to do with real estate? If you don’t know, just ask any real estate professional who has worked with fussy buyers who have champagne taste on a beer budget. Dare I say, “brats.”

Part of the reason these buyers feel entitled is because the cost of starter homes has soared in many areas of the country to $1 million. There are more than 200 U.S. cities where buyers will find a price tag of $1 million or more on the typical starter home. The housing shortage that worsened over the pandemic has helped drive the cost of all homes to new heights.

Starter homes are generally defined as being those properties in the lowest third of home values in a given region. Currently, 237 cities in the country fall into this category with starter homes starting at $1 million. This is the most ever; five years ago, there were only 84 such cities.

Nationwide, the typical starter home is worth approximately $196,611, which is comfortably affordable for a median-income home. However, starter home values have grown 54.1% over the past five years, even more than the typical U.S. home in the same time frame, which shows 49.1% growth. This increase in value has delayed the first home purchase for many with the median age of a first-time buyer last year at 35, a year older than in 2019.

This research is from Zillow, which also gave us the names of the top five states with cities where you can find all these $1 million stater homes. The top of the list is California with 117 such cities; New York has 31 cities; New Jersey has 21 cities; and Florida and Massachusetts both have 11 cities each in this category.

Even though our property values are starting to level off, Manatee County, according to the June statistics, had single-family homes averaging $736,322. We’re definitely getting into brat territory. In general, homebuyers could have some good news after years of too much competition with an emerging balanced market. Interest rates for the first time are starting to get below 7% and builders are busy all over, adding to available properties.

If you just want to enjoy living your life and you don’t care what anyone else thinks, you’re a brat. If you’re carefree, messy and bold, you’re a brat. If you know what “brat coded” means, you are so a brat. And if you don’t get the “brat” thing, you are so out of it. Let’s hope our buyers aren’t brats and understand the value of our area where there are still a lot of carefree people living their lives on the beach who never heard of “brat.”

Buyers losing hope

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

Tired of waiting for mortgage rates to come down? You’re not alone. Every potential buyer out there is waiting for the same thing, the problem is the Federal Reserve isn’t moving the needle, so it might be a long wait.

The Federal Reserve made no move in their last meeting in April, not up, not down. The good news is since they didn’t move rates up, it’s obvious they’re still fighting inflation, which simply refuses to budge. The stock market loved the status quo and enjoyed two big days thinking the Feds will eventually see the light and start reducing rates. Maybe yes, maybe no. Meanwhile, sellers who are desperate to sell their homes but don’t want to give up their low-interest rate mortgages are sitting back, and the buyers who were able to buy a lot more house three years ago are wondering what the heck just happened.

What happened is that in March of this year, a median-income household could afford to buy a house for no more than $416,000, assuming a 20% down payment. Three years earlier, that same household could afford a purchase price of up to $561,000, all things being equal. Then of course there are renters, 20% of them, who don’t expect to ever own a home based on a property management firm’s survey.

So, what are the experts saying? According to Forbes, Freddie Mac says mortgage rates will stay above 6.5% through this quarter. Fannie Mae is forecasting the 30-year fixed rate to average 6.6% in 2024 and 6.1% in 2025. The National Association of Realtors says rates will likely be in the 6% to 7% range for most of the year. The Mortgage Bankers Association predicts 6.7% in the second quarter and ending 2024 at 6.4%. Bank of America is anticipating a rate cut in December and is optimistic that mortgage rates will eventually drop below 7%.

There are, of course, more predictions but the common thread they all have is changing opinions from declining interest rates this year to a more modest prediction based on inflation. They also all agree that waiting to jump into the market is not a good idea. If you wait for interest rates to come down, you’ll be fighting an appreciation of values and likely won’t gain anything. Despite elevated mortgage rates, buyers can still look around for the best rate and at least move on with their lives with the option of refinancing the mortgage down the road.

Buyers, especially younger buyers and first-time buyers, may need to reevaluate what they really want. Do they want a home to build a life in or will they just be sitting in their rental and hope the Federal Reserve bails them out? And frankly, 7% is not such a terrible rate. Real estate markets have lived through, survived and even flourished with double-digit interest rates.

The best advice from economists is don’t wait. You can’t time the market and by now the buyers who have been trying to wait it out probably are well aware they may have made a bad choice. Don’t endure more pain; move forward and reorganize your life and assets to accommodate the reality.

Prepare for hurricane season

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Hurricane Guide, Special Sections.

Call me crazy, but whenever the hurricane predictions are disclosed for the impending hurricane season it seems to always be the highest number of storms EVER. Well, this year’s predictions are again warning of an extremely active hurricane season, so batten down the hatches and tie up the kids.

According to the Colorado State University forecast, which came out on April 4, they are indicating 23 named storms, 11 hurricanes and five major hurricanes with between four and six making landfall. By comparison, a typical year averages about 14 tropical storms with seven turning into hurricanes.

The reason for this is a combination of very warm water in the Atlantic and La Nina, which supports more storms. Warm water gives hurricanes fuel and contributes to a more unstable atmosphere. Ocean temperatures in much of the Atlantic have been setting records for more than a year and scientists have been unable to fully explain why.

At the top of the preparedness list are always non-perishable foods and, although many cans have pull tops, it’s best to buy a manual or battery-operated can opener. Next is bottled water and buy it early because, with the prediction of a storm, the shelves are quickly emptied. Batteries, cash in case the ATMs go down in a bad storm, and a full tank of gas are a must. Battery-operated lights and flashlights with candles as a backup are also a must. Once storms are on the way, it’s too late to purchase storm shutters, but this is something you should consider long before you need them.

Charge up your smartphones and tablets and buy a battery backup. Know where your important papers are like insurance policies, school records, mortgage information, tax returns, photos and any other papers you might need in a hurry if your evacuation is longer than you expect. Also, take prescriptions and information to renew them in case you don’t get home for a while. Outside, remove any objects that can be blown away in heavy wind, furniture, toys, plants and awnings. Secure vessels that can’t be relocated with plenty of fenders and extra lines to accommodate the tides and turn off power to the boat.

Have an evacuation plan in place with either a friend or relative and prepare a list of hotels. Don’t forget the pets, their food and medications. It’s also a good idea to take current pictures and/or videos of the interior and exterior of your property for insurance purposes should you have damage.

The mymanatee.org website has a great deal of detailed information concerning everything I just outlined but in more detail. It’s worth taking the time to read it and implement some of their recommendations.

Finally, if you are in the process of selling or purchasing a new property, remember when storms are in the forecast it is usually not possible to bind an insurance company to cover the new property. This could delay your closing, but hopefully, everyone involved in the transaction will be cooperative.

It’s not all bad news. The hurricane season outlook from the National Oceanic and Atmospheric Administration isn’t due out until May. However, their forecasters are looking at some of the same problematic models. Nevertheless, we are all warned not to focus on these predictions since other factors come into play in how many storms we get and how strong they are.

My job is not to make predictions but to remind you to get your property and your family ready for the worst and hope for the best. Just assume it will be an active season and start stocking those cans and cases of water.

Energize your home

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

When you think of energy you probably think of power used to generate light and heat. But have you ever thought of the type of energy that isn’t physical or chemical, the kind that can’t be seen?

When it comes to improving your home, there are forces beyond updating and repairing. According to energy healers, you need to harmonize the property’s energy and honor previous owners. Using ancient spiritual practices and healing arts unblocking creativity, and creating tranquility and rejuvenation will result in a safer, wealthier and happier home.

This is a lighthearted column for me, but more than a few homeowners and their realtors are taking it very seriously. Across the county, house energy specialists are being hired to reset and elevate the home’s energy, especially if they’re getting it ready for sale or a potential buyer is viewing the property with an eye towards its energy fields.

Some of the healing techniques are a Celtic space-clearing blessing, tarot cards and a drowsing pendulum, something I never heard of until I read it and then I had to look it up. Apparently, the dowsing pendulum is used to observe the motion of a pointer or stick as it changes direction responding to unseen influences. Interesting, I wonder how that would work pointing it at potential buyers coming into your home, if it points up, they’re good if it points down, forget it?

Another popular healing practice is crystal healing, which, according to professional energy healers, is an oversimplification of the power of crystals. Realtors who are always looking for a way to make their homeowners happy are getting on board with crystals positioned around the inside and outside of the home to usher in vibrancy and aliveness. This process could come with steep fees in the thousands, not including the crystals and tarot cards.

I’m having some fun with all of this since my brain is more left-oriented than right, leaving my creative abilities and invisible energy untapped. But what do I know beyond the value of a renovated kitchen and spa tub? I do, however, have some interest and faith in feng shui.

I love the idea of a red entry door; aside from the fact that it looks smashing, it does encourage good energy to come in hopefully along with a good buyer. Red front doors mean good luck, protection, prosperity and the fire energy it represents makes the property stand out while promoting wealth and inspiration.

The other thing about feng shui that appeals to my left brain is following some basic house-selling rules. Declutter – open neat space allows the energy to flow and not get stuck, probably on your toddler’s three-wheeler hanging out in the kitchen. Soft colors, plants and strategic lighting are things realtors emphasize on a regular basis but are also elements of feng shui. The Chinese also like water elements in and around the home – that should be easy on Anna Maria Island – comfortable furniture (no wicker please) and natural textures.

I may not get the whole crystal energy thing but every homeowner needs to find their comfortable environment and how to achieve it. Since I love a lot of things associated with Asia, the food, the furniture and I do play Mahjongg, feng shui fits my sensibility and is acceptable to the left side of my brain.

Energy is powerful. Use it to your advantage.