Sarasota Florida Real Estate News

Luxury Waterfront Sales Update - 2009 Pending Sales and Closed Sales

2009-05-07T16:29:00.005-04:00

We are experiencing somewhat of an anomaly in Sarasota this late spring as we move into summer: luxury properties are selling late into the season, with more sales to come, as evidenced by the number of pending transactions in the Mid Florida Regional multiple listing service, as noted below.

Nothing gets a realtor and a seller more excited than to see positive momentum in closed transactions of luxury property! Year to date through May 6, we have seen 21 closed transactions in Sarasota county, for single family residential homes listed for a minimum of $1.5 million. The highest sale is $4.75 million at 552 S. Spoonbill on Bird Key (my listing and pictured above), and the lowest is $1.15 million at 7230 Manasota Key. There is also one higher sale for $7.125 million in Manatee county at 5871 Gulf of Mexico Drive.

Part of what makes this interesting is that 3 of these sales occurred in January; 3 in February, 4 in March, 8 in April, and 4 in the first 6 days of May, with an additional 15 pending sales that should close by mid July.

Based on vigorous showings as evidenced by the escalating number of appointments scheduled through the Michael Saunders & Company call center, we, at Michael Saunders & Company, are anticipating continued strength in these sales throughout the summer. The buyers are realizing some pretty significant price reductions and making wise purchasing decisions at this time.

Stay tuned for more market updates on the luxury waterfront market in Sarasota. I look forward to keeping you informed.

DEBORAH BEACHAM REPRESENTS SARASOTA'S TOP SALE FOR 2009

2009-05-07T15:49:00.003-04:00

At MSC, It’s Never Lonely at the Top - Deborah Beacham Represents Sarasota’s Top Sale for 2009 May 06th, 2009 | Category: Properties, The Real Estate Market

The following is reprinted from the Michael Saunders Blog posted May 6th, 2009:

With all the chatter about the difficulties in today’s market, it would seem highly unlikely that anyone could achieve a feat of success and record-breaking significance. However, it is with much delight that we announce the recent momentous sale courtesy of the determined, market savvy Deborah Beacham of our South Longboat Key office. Along with the final closing signatures for the expansive waterfront property she represented at 552 S. Spoonbill Drive on Bird Key, Deborah earned recognition for Sarasota’s highest sale thus far in 2009. At a sold price of $4.75 million, this Bird Key property sits atop the growing mountain of Sarasota area sales we are processing, with many more sure to follow. Congratulations, Deborah!

IN MARCH, PENDING SALES RISE IN SARASOTA

2009-05-05T11:14:00.006-04:00

The following article appears in today's Sarasota Herald Tribune, authored by Aaron Kessler. Aaron interviewed me for this article as it relates to the luxury market and pending sales. Here is the full text from this article.

March 2009 sales up 33 percent over February;

2009-04-16T14:09:00.009-04:00

April 16, 2009
*The following press release was sent to local media on April 16

March 2009 Sales Up 33 Percent Over February
Single Family Median Sale Price Rebounds

The Sarasota real estate market saw sales rise to the highest level of the year in March 2009, besting the previous month by 33 percent. In addition, the median sales price for single family homes rose after steadily declining since late last year, indicating a potential sign of the bottoming of the local market.

The overall sales level of 481 was the highest since June 2008, and nearly equaled the level of 504 sales reported in March 2008. Of those sales, 353 were single family homes while 128 were condominiums.

The good news also extended to pending sales, which once again rose in March 2009 to 817. The last time pending sales climbed over 800 was in March 2006, when pending sales also were reported at 817. The total of 817 was 21 percent higher than the 679 pending sales reported in March 2008.

According to statistics from the Mid-Florida Regional MLS for members of the Sarasota Association of Realtors®, 645 single family homes and 175 condominiums went under contract in March 2009, compared to only 471 homes and 208 condos in March 2008.

Pending sales have now exceeded the 500 level for the 15th consecutive month, and the statistic bodes well for the next two or three months, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers during the month. The report continues to reflect a steady, strong pattern, and indicates buyers are more active in the Sarasota market even in the face of difficult economic times.

"We believe the current climate of historically low interest rates, major incentives for first-time homebuyers, and the many other government programs designed to stabilize the economy and the housing industry is all having a very positive impact," said 2009 SAR President Bill Geller. "Every downturn is followed by an upturn - we know this to be true historically. We've been through a difficult time in the real estate industry, and hopefully we are seeing the beginnings of a new, dynamic era."

The recently enacted first-time homebuyers' tax credit of $8,000 will likely continue to boost sales this year, Geller said. Those who meet eligibility requirements and purchase a home this year prior to Dec. 1 are eligible for a tax credit of up to $8,000, and unlike the 2008 tax credit, this one does not have to be repaid.

The median sale price for single family homes rose to $152,125 in March 2009 from $142,000 in February 2009 - a 7 percent increase. The median sales price for condominiums fell to $166,750 in March 2009 from $198,000 in February 2009, for a 15 percent drop.

The median price of all single family homes sold in the last 12 months was $217,000, compared to a median of $299,900 for the 12 months ending in March 2008. For condominiums sold in the last 12 months, the median sales price was $256,000, compared to last year's figure of $295,000.

Another important market tracker - the absorption rate of properties on the market - continues to track lower than last year at this time for both single family homes and condominiums, as inventories have declined. Absorption rate is the number of months it would take to sell the entire remaining listed inventory in a particular category, based upon the sales for that particular month.

For March 2009, the absorption rate for single family homes stood at 17.1 months, compared to 24.1 months the previous month and 25.1 months in March 2008. For condominiums, the absorption rate was at 21.2 months, lower than the 28.5 months in the previous month, and much lower than the 34.1 months reported in March 2008.

*A 12-month rolling median price is not as susceptible to the volatility that can occur within any particular month, which sometimes results in drastic statistical swings up or down from one month to the next.

Click HERE for a PDF of the press release and two pages of statistical charts.

Sarasota Luxury Waterfront Sales Update

2009-04-11T15:09:00.010-04:00

As of April 11, 2009, we have had 13 single family waterfront sales listed at or above $1.5 million, county-wide in Sarasota. The highest sale, 5871 Gulf of Mexico drive, closed at $7.125m in February. This was for a gulf front property on Longboat Key, built in 2008, 7,046 square feet of living area on just over an acre of land.

The next highest sale was the property at 784 Dream Island Rd, also on Longboat Key, which sold for $3m in January, for a 3,780 sq ft home on 1.5 acres of bayfront property.

The other 11 properties ranged in sales price from $1.150m to $2.9m and 4 of these were sales on Manasota Key, which had almost no activity in 2008.

The good news is there are 19 additional sales pending with list prices ranging from $1.5m to $5.550m, and these are all anticipated to close by the end of May. I will be updating these sales on the blog, so watch for the reports.

The Rich Take a Hit As Well

2009-03-23T22:57:00.002-04:00

Published: Monday, March 23, 2009 at 1:00 a.m.
Last Modified: Friday, March 20, 2009 at 11:42 a.m.
Southwest Florida's real estate market has always had something of a dual personality -- the high-end waterfront properties catering to the affluent, and the "normal" market inhabited by everyone else.

The high-end retreats of the islands have operated in their own universe sometimes, as it was thought money flooding in from the well-to-do around the country and the world would cushion the blow of any regional economic challenges.

Of course, now we are in the midst of a global financial crisis, with economies around the world sputtering and stock markets struggling. The real estate market, fed by a Wild West atmosphere of lawless lending and speculation during the boom years, got completely out of control and is largely responsible for sparking this disaster. The upper bracket of properties have not been immune -- they are in this mess with the rest of us.

So it may be natural to ask, with 2008 likely to go down as one of the worst economic years in modern history, did people still buy those million-dollar Sarasota mansions on the beach and bay? And how much of a hit did sellers have to take to move those homes?

Deborah Beacham, an agent with Michael Saunders & Co. specializing in high-end properties, recently put together a report looking at just that issue -- looking specifically at single-family homes (no condos) in 2008 that were listed at $1.5 million and up and had either a waterfront view or boating water. Beacham grouped sales by locale: Bird Key, Casey Key, Lido/St. Armands, Longboat Key, Mainland Waterfront, and Siesta Key.

Beacham found while the total volume of such sales was down 20 percent overall -- $218.3 million in 2008 compared to $271.4 million in 2007 -- that "many individual properties retained most of their value" in 2008 compared with 2007. That does not mean buyers were not getting a discount off the list prices. On average, most properties in that upper bracket sold for about 82 percent to 86 percent of their asking prices in 2008. But those figures are about the same as how similar properties performed in 2007.

Now, a few caveats are in order, the first being that nothing compares to what was going on during the boom. Beacham found that if you bought a high-end waterfront property during the height of the boom in 2005-06, you were unlikely to be in the black these days. But for those who bought such homes prior to the boom, their values were still holding steady enough today that they are in profitable territory.

The other caveat I'll add is that the bulk of the 2008 crash really began in earnest in September, and so a buyer who bought in March 2008 likely had a different set of calculations than one who did in November.

But that said, back to the numbers.

Beacham found that the number of sales was the same or higher in 2008 on Lido and Longboat, as well as for the mainland waterfront. Sales were slightly down on Siesta Key, dropping from 24 in 2007 to 21 in 2008. But overall, not bad.

One place where there was a noticeable collapse of sales was on Bird Key, where only 6 homes valued at $20 million sold in 2008, compared with 15 homes at $58 million on 2007. The lack of action on Bird Key may show that even rich buyers are focused intently on price just like everyone else these days -- as the average ratio of sales price versus list price was 90 percent on Bird Key, the highest of any area studied.

What is more, that 90 percent figure is exactly what it was on Bird Key for 2007 sales, too, suggesting that Bird Key sellers were sticking to their asking prices, Beacham's report found.

By contrast, every other area studied in the report -- ones that already had lower sales-list price ratios to begin with compared to Bird Key -- saw even further drops of between 1 to 3 percentage points in 2008 compared to 2007. This would seem to indicate those sellers were more willing to negotiate in 2008 as the market continued to fall. Siesta Key sellers, for example, settled for 83 percent of their asking prices in 2008, compared to 86 percent in 2007.

It is interesting as well that the Bird Key homes took longer to sell on average in 2008, 292 days, compared to 2007's average of 246 days. So basically Bird Key sellers stuck their guns, and buyers decided they would be better off elsewhere.

Even for the rich, it seems, it is definitely a buyers' market these days in Sarasota.

This story appeared in print on page D12, Sarasota Herald Tribune, March 23, 2009, by Aaron Kessler

Pending sales rise to highest level in three years in February 2009

2009-03-23T22:50:00.005-04:00

Pending sales in the Sarasota real estate market once again rose in February 2009, hitting 782 - the highest level since April 2006, a three year period. According to statistics from the Mid-Florida Regional MLS for members of the Sarasota Association of Realtors®, 611 single family homes and 171 condominiums were reported under contract in February, almost 100 more than the 683 pending sales reported in January 2009, and 19 percent higher than the 654 pendings reported in February 2008.

Pending sales have now exceeded the 500 level for the 14th consecutive month, and the statistic bodes well for the next two or three months, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers. The report continues to reflect a steady, strong pattern, and indicates buyers are more active in the Sarasota market even in the face of difficult economic times.

For further info, click here.

Sarasota Association of Realtors Reports January 2009 Sales

2009-02-27T16:17:00.011-05:00

January 2009 Pending Sales Jump Almost 18 Percent

In the face of national economic doom and gloom, pending sales in the Sarasota real estate market rose to 683 in January 2009 as reported by members of the Sarasota Association of Realtors®, topping the 500 level for the 13th month in a row.

Pending sales last month were much higher than the 516 reported in January 2008, which indicates that local real estate has bucked the national downward to some extent. Pending sales reflect contracts executed by buyers and sellers. The recent numbers demonstrate a steady, strong pattern, indicating buyers have become more active in the Sarasota market as the traditional season heats up.

“These are certainly historic times for our nation’s economy, and we must be realistic and understand that higher unemployment and the recession impacts everyone,” said 2009 SAR President Bill Geller. “But we must also understand that even during downturns, opportunities exist for savvy buyers. The Sarasota market is blessed with tremendous, high quality properties, and the lower prices have made this area a goldmine of opportunity. With the guidance of a well-trained, professional local Realtor®, buyers can be assured that they will find the perfect property in today’s market environment.”

Overall closed sales in the first month of 2009 stood at 319, compared to 327 in January 2008, a year-to-year decline of only 2.4 percent. Sales totaled 406 December 2008, but the monthly decline was expected, especially during a four-year election cycle, when real estate activity often sees a lull prior to a new administration taking office.

The recent signing of the $787 billion American Recovery and Reinvestment Act, plus the Obama administration’s enactment of the $75 billion Housing Support and Foreclosure Prevention program should help improve the real estate markets even more
in the months ahead, said Geller.

Click HERE for a PDF of the press release and two pages of statistical charts.

American Recovery and Reinvestment Act of 2009

2009-02-27T16:09:00.012-05:00

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Click here for FAQs.

Sarasota Market Sees Rise in September Pending Sales

2008-10-26T09:32:00.004-04:00

October 24, 2008

*The following press release was sent to local media on October 24 at 2:00 p.m.

Local Real Estate Market Enjoys September Rise in Pending Sales

Pending sales rose in September 2008 and overall sales stood almost identical to August 2008 in the Sarasota MLS. In fact, overall sales in September 2008 were 29 percent higher than overall sales in September 2007 - a statistic that flies in the face of the recent negativity in the media.

Overall sales came in at 438 in September, just under the 440 reported in August, and only slightly lower than the 454 in July. But the sales figure in September 2008 was much higher than the 338 sales reported in September 2007 for single family homes and condos.

The local market faired even better than the overall state of Florida, which saw a 24 percent jump in single family home sales and an 11 percent jump in condo sales over September 2007 numbers.

Single family home sales soared comparing September 2008 to September 2007. There were 360 sales reported this year, compared to only 234 last year, for a jump of almost 54 percent. The number of sales was roughly the same as last month, when 356 single family homes changed hands. While there were fewer condominium sales reported in September 2008 by SAR members (78 total), the overall numbers were strong.

The September 2008 report also continued to show strength in pending sales, which stood at 584, almost 9 percent higher than last month's total of 536. Higher pending sales, which are contracts executed by buyers and sellers during the month, forecast a stronger market, as these properties close in the coming months.

Click here for the full story.

Longboat Key Florida Living

2008-10-10T09:03:00.002-04:00

Great article in today's CNN.com travel section about Longboat Key:

LONGBOAT KEY, Florida (CNN) -- Like any sun-drenched beach paradise, Longboat Key offers water sports, biking and tennis, but the best way to enjoy the island may be by doing nothing at all.

Low season on Longboat Key, Florida, generally starts in May and runs until late fall.

This thin sliver of land off Sarasota on Florida's west coast is home to 8,000 people year-round, but come winter, the population swells dramatically.Thousands of visitors from colder climates flock to LBK -- its shorthand moniker -- from January to April to enjoy its balmy temperatures and the sparkling turquoise waters of the Gulf of Mexico.

Off season, however, the only crowds are the sea gulls grooming their feathers on the warm white sand, and Longboat Key feels like the closest thing to having a private beach.

On a recent late-September visit, the temperatures hovered in the mid-80s, palm trees swayed gently in the wind, hibiscus flowers bloomed and the sun's rays were on par with their intensity in July.

The only signs of fall were the pumpkins on display at the local grocery store, along with regular fare, like mango Key lime pie.

See photos of Longboat Key's beaches, birds and sunsets »

Tell people you are heading to Longboat Key, and many will think it's part of the Florida Keys off the southern tip of the state, but LBK is about 200 miles to the north-northwest of -- and in some ways worlds away from -- Key West and its neighbors.

Key Facts
• Longboat Key is an offshore barrier island about 60 miles south of Tampa, Florida.
• The nearest airport is Sarasota/Bradenton International.
• The island is home to 8,000 permanent residents, but the population swells to 22,000 during peak months.
• Average daily high temperature in January: 72°.
• Average daily high temperature in July: 90°.
• Longboat Key incorporated as a town in 1955.
• There are no schools on the island.

Source: Longboat Key Chamber of Commerce

Nightlife on the island is likely to mean a moonlit walk on the beach rather than a drink at the bar, and the odds are good the locals will sport gray hair.

Elegant setting

Buffered by Sarasota Bay on one side and facing the Gulf of Mexico on the other, the Key is sheltered from the tourist hustle and bustle of mainland Florida.

At less than 11 miles in length and no more than a mile across in its widest places, LBK also feels like a secluded community with an elegant flavor of its own.

The surroundings are lush, upscale and serene. A trip down Gulf of Mexico Drive, the island's main artery, reveals golf courses, condominiums and homes ranging from newly constructed mansions to older, one-story houses.

The traffic is light, life moves at a slower pace and the mood is relaxed.

"You won't find mini-malls, towering billboards, or glaring neon signs," the local Chamber of Commerce promises.

Nonhuman island visitors also contribute to the mellow atmosphere. Dolphins regularly swim just offshore. Great egrets and great blue herons fish along the beach, while pelicans dive into the water in search of a meal. Birds of all sizes regularly patrol the palm-lined parking lot of the local supermarket looking for scraps of food from the lunch crowd.

Wingless creatures also pop up in unexpected places. Visitors walking into one establishment are greeted by a stern voice exclaiming, "Bear, no!" Bear, it turns out, is a curious 5-month old Chesapeake Bay retriever who insists on checking out all the customers entering the store despite his owner's orders to stay put.

To read the complete article, click here.

If you're considering finding a winter home or moving permanently to Florida, Longboat Key is a wonderful option. Feel free to contact me so I can show you this serene area and the many Longboat Key real estate opportunities available.

Here's a quick link to search for real estate on Longboat via my website:
Search for Longboat Key Real Estate

Sarasota Association of Realtors Releases August Sales Figures

2008-09-29T15:31:00.005-04:00

August 2008 sees continuation of summer sales slowdown

Despite a late summer and early fall dominated by depressing economic news across the nation, property sales in the Sarasota MLS did not see a dramatic change from the previous month, continuing a traditional slower summer sales season.

Overall sales stood at 440 in August, only slightly lower than the 454 in July. In fact, sales in August 2008 were actually higher than in August 2007, when only 430 overall single family homes and condos were sold.

The biggest decrease from last year was in condominium sales, which fell to 84 this year compared to 122 last year. The August 2008 report continued to show strength in pending sales, which stood at 536, just off last month's total of 584. In August 2007 only 456 pending sales were reported, which forecasts a stronger market for the fall and winter months. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months.

Sales prices for single family homes decreased somewhat in August, falling to $226,250 from last month's median of $250,000. But condominium prices saw a resurgence to $295,000 from July's $252,500. This means most property is apparently holding its value better locally, which also means the local market is doing better than the statewide and national downward trends.

"The national financial crisis has obviously dominated the news this month, but fortunately our market appears to be weathering yet another storm very well," said Helen Sosso, 2008 SAR President. "These are difficult times for many businesses and industries, and the real estate industry is no exception. But the Sarasota market is blessed with many fundamental strengths and attractions, one of which is our highly skilled and professional group of real estate brokerages and agents. In difficult times, the guidance of member agents in the SAR is vital to achieving your most advantageous property transaction."

Inventory levels in August 2008 dropped for the sixth consecutive month, and are the lowest they have been since late 2005. There were 6,461 single family homes listed, compared to 8,677 in July 2008, and 2,407 condos listed, compared to 4,599 condos listed last month. However, some of this discrepancy is likely attributable to the new MLS system which became operational in early August and resulted in the elimination of much of the duplication in property listings between the five area member associations (including the Manatee Association of Realtors).

The current local market, despite the negativity in the national news, continues to demonstrate statistically that we have a great selection of more affordably priced housing for buyers to visit and purchase. In addition, declining inventory levels normally indicates the market is returning to a more historical balance, which eventually leads to normal, long-term price appreciation.

Click HERE for the complete press release.

Sarasota Board of Realtors Announces June 2008 Sales

2008-07-24T12:42:00.018-04:00

July 24, 2008

*The following press release was sent to local media on July 24 at 11:00 a.m.

Sarasota Market Sees Slower Summer Sales in June 2008, But High Pending Sales Figures Indicate Stronger Market Ahead

The Sarasota MLS saw a slight dip in sales for June 2008 compared to the previous month, and home prices continued to normalize as the local market entered the slower summer sales season.

Overall sales stood at 559 in June - still one of the highest months for sales during the past year, but lower than the May total of 627 sales. Single family home sales in June 2008 stood at 411, matching the level from June 2007. But condominium sales dropped to 148 from the previous year's total of 186. Sales had been increasing each month in 2008 prior to the June dip, from 329 in January to 627 in May.

Sales prices saw a decline in June, dropping to a median of $250,000 for single family homes, and $275,000 for condominiums. The price for homes was $274,500 in May, and $367,250 for condominiums. The median sale price for condominiums had been in the mid- to upper- $200,000 range for the entire year with the exception of the May spike.

"Normally, we see a decline in sales as the summer season begins," said Helen Sosso, 2008 SAR President. "This year, the decline has not been very sharp, and we have seen pending sales remain at a very high level. So there is evidence that we won't experience a lengthy or deep lull in sales activity. The Sarasota area real estate market is continuing to demonstrate resilience in a down cycle, and we all know why. This area remains a prime relocation spot for families and businesses, and our cultural, geographic and environmental assets are a natural magnet, both across the nation and in the international arena."

The June 2008 report continued to show strength in pending sales, which stood at 698 - the second highest level since June 2006. Last month's pending sales stood at 692, the highest in the period. In June 2007 only 543 pending sales were reported. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings in upcoming months and an improving market in the mid-summer months.

Inventory levels were lower in June 2008 for the fourth consecutive month, and are the lowest they have been since February 2006. Still, with 9,108 single family and 4,765 condos listed, buyers continue to enjoy an abundant selection of more affordably priced housing to review and purchase. As in the past few months, the reduced inventory has resulted from a combination of fewer new properties being listed, and higher sales numbers. As the inventory continues to decline, the market will return to a more historical balance. And as the market approaches equilibrium, the buyer's market we've been experiencing will vanish, and price appreciation will return to the market.

Click HERE for the complete press release, including PDF with two charts.

Sarasota Association of REALTORS®

Sarasota market hits highest sales figure since March 2007

2008-06-26T19:12:00.011-04:00

June 26, 2008

The following press release was sent to local media on June 26 at 11:00 a.m.

Sarasota market hits highest sales figure since March 2007

Home sales in the Sarasota MLS for May 2008 stood at 627 - the highest level in 14 months, and approximately 92 percent higher than the sales in January 2008. In 2008, sales have been increasing each month, possibly due to the influence of the new property tax portability law enacted in late January. Sales have climbed from 329 in January to 423 in February, 514 in March and 567 in April.

"This year, the Sarasota real estate market has been a beacon of hope as the state and national markets continue to struggle," said Helen Sosso, 2008 SAR President. "I believe our local agents have embraced the concept of a buyers' market, and educated sellers on the realities of pricing. We still have advantageous interest rates, and our communities' natural and cultural amenities always attract buyers."

The May 2008 report continued to reflect strength in pending sales, which stood at 692 - the second highest level since June 2006. Last month's pending sales stood at 756, the highest in the period. In May 2007 only 541 pending sales were reported. Like closed sales, pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pending sales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improving market in the early summer months.

Inventory levels were lower in May 2008 for the third month, and are the lowest they have been since February 2006. Still, with 9,500 single family and 5,100 condos listed, buyers have a huge selection of more affordably priced housing to select from. The reduced inventory is a combination of fewer properties being listed, and increasing sales numbers. As the inventory continues to decline, the market will come back to more balance. As we approach equilibrium, the buyer's market we've been experiencing will be gone, and price appreciation will creep back into the market.

In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before. In fact, Sarasota statistics have been stronger in recent months than sales in the Miami market, which is a much bigger geographic and demographic area.

In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after several months of declines. The May figures reflect this new reality.

Click here for the full story with bar charts:

Approval Is Near for Bill to Help U.S. Homeowners

2008-06-25T13:49:00.002-04:00

By DAVID M. HERSZENHORN
Published: June 25, 2008

WASHINGTON — With sinking home values continuing to drag down the economy, Congress is poised to approve a huge package of housing legislation, including a refinancing program aimed at rescuing hundreds of thousands of homeowners in danger of foreclosure and the most sweeping government overhaul of mortgage financing since the New Deal.

Lawmakers moved with increasing urgency on Tuesday after a closely watched housing index showed prices nationally had declined in April by more than 15 percent from a year earlier. Senator Harry Reid of Nevada, the majority leader, threatened to keep the Senate in session through the Fourth of July holiday to finish the housing measure, if needed. The House has already approved similar legislation.

The centerpiece of the Senate package is a rescue-refinancing plan aimed at stemming the tide of more than 8,000 new foreclosures a day that lenders are filing across the country. The plan would allow distressed borrowers and their lenders to stem losses by allowing qualified owners to refinance into more affordable, 30-year fixed-rate loans with a federal guarantee.

The legislation would also provide benefits for first-time buyers, who would receive a refundable tax credit of up to $8,000, or 10 percent of the value of a home, on purchases of unoccupied housing.

As part of a regulatory overhaul of Fannie Mae and Freddie Mac, the mortgage finance giants, the bill would permanently increase to $625,000, from $417,000, the limit on loans they can purchase from lenders in expensive housing markets, making it easier for borrowers to obtain mortgages at discounted rates. Despite a presidential veto threat, the package received overwhelming bipartisan support, clearing by 83 to 9 a crucial procedural vote in the Senate on Tuesday morning.

Final passage of the bill was snagged temporarily in the Senate Tuesday evening because of a fight over renewable energy tax credits. Still, major supporters of the bill said they hoped it would be completed before for the holiday.

“There’s a great desire to act,” said Representative Barney Frank, Democrat of Massachusetts, the bill’s main author in the House. “We’re just not there yet.”

The bill would provide $150 million to expand counseling for borrowers to prevent foreclosure and would establish stricter disclosure rules to require lenders to make plain the maximum monthly payment for a borrower with an adjustable rate loan.

The bill also establishes an Affordable Housing Trust Fund, to be financed by $500 million to $900 million in fees from Fannie Mae and Freddie Mac. The fund will cover any expenses related to the foreclosure rescue plan for three years, and will be used to create affordable rental housing.

Under the refinancing plan, only borrowers seeking to remain in their primary home would be eligible. Lenders would first have to agree to cut the principal balance of loans to roughly 85 percent of each property’s current value.

Read the full article

Home Sales May Rise Modestly Before Broader Upturn in Second Half Of 2008

2008-06-13T15:36:00.003-04:00

WASHINGTON, June 09, 2008

A modest gain in the level of home sales is possible over the next couple months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It’s the highest index since last October, but remains 13.1 percent lower than April 2007 when it stood at 101.5.

Lawrence Yun, NAR chief economist, said pending sales contracts have picked up notably in areas undergoing significant price drops. “Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he said. “Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts.”

The PHSI in the West rose 8.3 percent to 98.8 in April and is 4.0 percent higher than April 2007. In the Midwest, the index jumped 13.0 percent to 83.7 in April but remains 13.1 percent below a year ago. The index in the South increased 4.6 percent to 88.8 but is 22.5 percent below April 2007. In the Northeast, the index declined 1.9 percent in April to 79.3 and is 12.2 percent below a year ago.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the market may be breaking its holding pattern. “It appears that more buyers are realizing they can take advantage of a favorable combination of mortgage interest rates, home prices and family income,” he said. “Overall affordability conditions are the best we’ve seen since the middle of the housing boom in 2004, but with far more choices and much less pressure than buyers experienced four years ago to make an investment in their future. Recent declines in mortgage rates on conforming jumbo loans and a return to sound but not overly stringent underwriting standards will permit more people to qualify for a loan.”

NAR’s housing affordability index has been trending up this year and is projected to rise 15 percentage points to 128.0 for all of 2008.

“Although mortgage interest rates will remain historically favorable, they will start to steadily inch up,” Yun said. The 30-year fixed-rate mortgage should rise gradually to 6.3 percent by the end of this year, and then hold at that level for most of 2009.
Yun said the underlying fundamentals point to a pent-up demand. “Home sales are at about the same level as they were 10 years ago, yet the population has grown by 25 million people and we have over 10 million more jobs,” he said. “The housing market has been underperforming by historical standards, partly because buyers were hampered by mortgage availability issues, but that’s improved and an upturn is more likely. On the other hand, it’s unclear what role consumer confidence will play in the coming months.”

Existing-home sales should increase from an annual pace of 5.05 million in the second quarter to 5.83 million in the fourth quarter. For all of this year, existing-home sales are expected to total 5.40 million, and then rise 6.3 percent to 5.74 million in 2009. “Sales gains will be greatest in areas that underwent sharp price declines,” Yun said.
After unprecedented home price declines in the first half of the year, many markets can anticipate stabilizing price trends in the second half. The aggregate median existing-home price is likely to decline 8.4 percent in the first half of this year, and then begin to stabilize in the second half before rising 4.4 percent next year to $213,900. “Policymakers need to be attentive to the fact that many homeowners have seen a reduction in housing equity, or are in an ‘underwater’ situation. More needs to be done on the policy front to alleviate hardships and bring fence-sitters back into the marketplace,” Yun said.

A great mix of conditions continues around the country. “We’re seeing healthy price gains in moderately priced areas like Erie, Pa., and Corpus Christi, Texas, and double-digit gains in others,” Yun said. “Our most recent data shows sales rising strongly from a year ago in some areas that experienced sharp price drops, including Detroit and Las Vegas.”

New-home sales will probably fall 31.7 percent to 529,000 in 2008 before rising 12.5 percent to 595,000 next year. Housing starts, including multifamily units, are projected to drop 27.2 percent to 987,000 this year, and then slip 0.6 percent to 980,000 in 2009.

“Rising construction costs will provide less room for price cuts on new homes,” Yun said. The median new-home price is forecast to decline 3.1 percent to $239,500 in 2008, and then rise 5.4 percent next year to $252,400.

Yun sees an improving economy. Growth in the U.S. gross domestic product (GDP) should be 1.7 percent in 2008 and 2.0 percent next year. The unemployment rate is estimated to average 5.3 percent this year and 5.6 percent in 2009.

Inflation, as measured by the Consumer Price Index, is expected to be 3.6 percent this year and 2.4 percent in 2009. Inflation-adjusted disposable personal income should grow 1.4 percent in 2008 and 2.5 percent next year.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales. View

Existing-home sales for May will be released June 26; the next Forecast / Pending Home Sales Index will be released July 8.

Source: Walter Molony, wmolony@realtors.org
Washington, D.C. June 9, 2008

WEDU "Speaking of Women's Health Conference"

2008-06-08T11:26:00.002-04:00

Women's Event Moving So More Can Participate
Sarasota Herald Tribune, Sunday June 8, 2008
Yvette Kimm

Published Sunday, June 8, 2008 at 4:30 a.m.
Last updated Sunday, June 8, 2008 at 2 a.m.

For the past five years, hundreds of women have languished on an enormous waiting list to attend one of the biggest women's events in the area.

IF YOU GO

What: WEDU's sixth annual Speaking of Women's Health Conference.

When: 9 a.m. to 4 p.m. June 21.

Where: Manatee Civic Center, 1 Haben Blvd. Palmetto.

Cost: $50, and a limited number of tickets remain available; includes a continental breakfast, formal luncheon catered by Michael's on East, canvas gift bag containing more than $100 worth of items, health screenings and seminars.

Why: Event proceeds will help underwrite programming of the PBS station, which serves 16 counties in West Central Florida.

Special presentation: Two local nonprofit organizations, Girls Inc. and Mothers Helping Mothers, will receive a WEDU Trinity Grant for their contributions to the health and well-being of local women.

Reservations and information: (813) 254-9338, Ext. 2241, or visit wedu.org.
Because of its popularity, the usually sold-out WEDU's Speaking of Women's Health Conference left the women waiting for an opportunity to buy tickets to the daylong health and networking conference.

Responding to their disappointed cries, the PBS station moved this year's June 21 event to the much larger Manatee Civic Center to accommodate more conference fans.

"After eight sellouts in Tampa and five sellouts in Sarasota, we are bringing our popular Speaking of Women's Health event to Manatee County for the first time," WEDU president and CEO Dick Lobo said. "With the larger facility, we actually have some tickets available."

The event has been one of the largest women-only conferences in Sarasota and Manatee area. Those attending are informed and entertained by local and national health experts.

"Speaking of Women's Health has been educating, empowering and inspiring more than 500 women each year to make smart choices about their health and wellness and that of their families," Lobo said.

This year's theme is "Discover Your Everyday Super Heroes," which will challenge the women to be a superhero to others and discover their own superheroes.

There will be two keynote speakers, Cammy Dierking and Christine Cashen.

Dierking, a TV anchor, marathon runner, mother and sister, will present "Discover Your Everyday Superheroes" with a story of love and friendship.

Cashen, a former university admissions officer, corporate trainer and broadcaster, will present "Extreme Humor Makeover," an upbeat message of self-empowerment.

"It's going to be the best makeover you can have," Cashen said from her Dallas home. "It's less stress and more fun."

Having a makeover is always empowering, she said, and adding humor to the makeover produces a delightful change of attitude to any situation.

"My whole goal is to stop global whining, and you do that by taking charge of your life," Cashen said. "Stop whining about what you can't change and do something about what you can."

Cashen said she believes the weight of the world falls onto women's shoulders, "and the weight is easier to bear when you have good outlook on life. People lose their sense of humor during stressful times, and I will help people eliminate stress and get in touch with their sense of humor."

Speaking of Women's Health will also include 15 break-out sessions on a variety of subjects, including cholesterol, skin care, joint pain, stress management and memory.

As an added feature, Sarasota Memorial Hospital is sponsoring the appearance of its da Vinci Surgical System, a robotic surgical platform that allows physicians to perform complex procedures through a series of tiny incisions.

"This will probably be the only chance people will have to see this robot close up," WEDU's Jim Scilligo said. "It's an extraordinary opportunity for the participants."

Contact Yvette Kimm at yvettekimm@aol.com.

OPINION - The Housing Crisis Is Over

2008-06-08T11:22:00.002-04:00

By CYRIL MOULLE-BERTEAUX
May 6, 2008; Page A23

The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.

Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.

Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.

Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.

In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.

The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in "months of supply" terms. That's the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high – but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.

Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.

Inventories will drop even faster to 400,000 – or seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.

Many pundits claim that house prices need to fall another 30% to bring them back in line with where they've been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.

For the full article, click on http://online.wsj.com/article/SB121003604494869449.html?mod=WSJBlog

Sarasota Market Hits Highest Sales Figures Since June 2007

2008-05-23T14:11:00.010-04:00

May 23, 2008

Home sales in the Sarasota MLS for April 2008 stood at 567 - the highest level in 10 months, and approximately 72 percent higher than the sales in January 2008. In 2008, sales have been progressively stronger month by month, possibly due to the influence of the new property tax portability law adopted in late January. Sales have climbed from 329 in January to 423 in February, then 514 in March.

Bucking the trend of dropping median sales prices for single family homes, April also saw the median sale price rise to $285,000 from $266,750 in March - about a 7 percent increase.
Condominium sales prices have shown a decline of about 8 percent since the first of the year, but they are also beginning to trend upward and have remained at relatively high levels for the Sarasota market. The median sale price for a condominium stood at $277,000 in April, about 18 percent higher than the $235,000 median sale price in March, but roughly 8 percent off the 2008 peak of $303,500 in January. "We are very fortunate to live in a beautiful, vibrant community, with world-class culture and amenities," said Helen Sosso, 2008 SAR President.

"These obvious factors continue to enhance the value of local properties, and we are seeing this reflected in our stronger sales figures. In addition, it appears we are beginning to see the effects of the recent state legislation which made it easier for families to upsize or downsize, without such a dramatic impact on their property taxes. Portability will likely continue to be a factor as we move forward in 2008."

The April 2008 report continued to reflect strength in pending sales, which stood at 765 - the highest level in the past year. In April 2007 pending sales were at only 609. Pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pending sales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improving market in the early summer months. Inventory levels were lower in April 2008 at 9,830 single family homes, compared to 10,443 in April 2007. Condominium levels also decreased from the April 2007 level of 6,344 to 5,608 in April 2008. Lower inventory normally means a tighter selling market, which tends to put upward pressure on prices over time.

Declining inventory is one of the indicators that a market is beginning to return to a more normal, balanced state. In fact, the Sarasota MLS statistics reveal a lower level of new listings on the market, combined with higher unit sales, which means the inventory is declining for two reasons and should more quickly reach a healthy equilibrium.

The days on market, which translates to the average time it took to sell a property, was at 166 days for single family homes in April 2008, slightly higher than the 158 days in March 2008. The figure has been steadily in the 158 to 160 range throughout the year. Average days on the market for condos was at 189 in April 2008, lower than the 192 figure in March 2008, and much lower than the 203 days reported in February 2008. The days on market reflects the pace of sales. In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before.In an article in the Wall Street Journal last month by Cyril Moulle-Berteaux, a managing partner of Traxis Partners LP, a hedge fund firm based in New York, the author puts together a thought provoking piece headlined "The Housing Crisis Is Over." In the article, he defined the basic elements of the housing boom, and the historic trends that follow such a boom and return to normalcy. He concludes that the national housing market is bottoming out right now, and says the return of affordability to the market makes a recovery an almost certainty.

He predicts the nationwide home inventory will drop significantly by the end of 2008, and this shift will begin to be reflected in prices. In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after a few months of declines. The April figures reflect this new reality.

Sarasota Association of REALTORS®

Sarasota to star on German TV

2008-05-19T11:21:00.001-04:00

Published Monday, March 31, 2008 at 4:30 a.m. in the Sarasota Herald Tribune
To contact Stephen Frater, call 361-4878, fax him at 361-4880 or send an e-mail to stephen.frater @heraldtribune.com

Sarasota's real estate market and lifestyle is going to be beaming into the homes of 150 million Germans on the television show "Traumhaus am Meer," which means "Dream House by the Sea."

The German TV show highlights homes in countries other than Germany.

The timing is advantageous because the Southwest Florida real estate market continues to struggle, and Realtors around the region are keen on showing their properties to international buyers with powerful euros and pounds.

The Sarasota segment is the first show filmed in the United States. Premier Properties of Southwest Florida -- a Naples-based company with offices in Sarasota -- arranged for Sarasota to be the community featured on the show.

Karin Stephan, a Premier broker and German national, was the main impetus behind "Tramhaus am Meer" coming to the area, Premier said.

Stephan knew about the series from friends in Germany. She contacted the network, VOX, which is one of Europe's largest media conglomerates, to lobby for Sarasota to be the first American-based episode.

Working with Premier colleague Sheldon Paley, there was a lengthy exchange of photos and DVDs of Sarasota. Then VOX sent a scout for the production company, Fandango Films, to Sarasota.

Producer Wolfgang Fuchs spent four days in early March with Stephan and Deborah Beacham, another Premier broker.

They took a look at several properties that were considered for the program.

Filming began last week on Casey Key for the one-hour program, which will be shown this year.

"Germans dream about vacations and places by the sea," Stephan said in a statement. She has lived in the United States for 25 years but travels frequently to her native country.

"The weather in Germany is often so foggy, rainy and cold that they regularly flock to sunny areas," she said.

"That, plus the fantasy everyone has of living in a dream home is what makes this program so popular in the European Union."

Steve Bailey, the head of Premier's operations in Sarasota, hopes that the exposure pays dividends in terms of sales in the local market.

"The European market for U.S. real estate, especially high-end, is very strong right now," Bailey said in a statement. "But this has larger implications for tourism in the entire Sarasota area. Traveling to the U.S. has never been more attractive and 'Dream House by the Sea' will showcase Sarasota at its very best."

Click here to read the original article in the Sarasota Herald Tribune

By the bay, a new cachet

2008-05-17T08:23:00.005-04:00

Article from the Sarasota Herald Tribune

By Michael Pollick and Toni Whitt
STAFF WRITERS

SARASOTA — The wealthy have long come to Sarasota, but these days Sarasota is developing something more: cachet.

Within the last few weeks, Sarasota got the official word that both Waldorf-Astoria and Nederlander Worldwide plan to join the Sarasota scene, signing up for a lavish four-star hotel, condos and an 800-seat off-Broadway performing arts center at the $1 billion development to be known as the Proscenium.

They aim to join the Ritz-Carlton Sarasota, whose November 2001 arrival helped set the stage for a string of global names -- Neiman Marcus, Nordstrom, Van Cleef & Arpels and Lilly Pulitzer -- and left other brands sniffing around the territory with renewed enthusiasm.

"Even in the five years we have been in business we have seen a noticeable difference," said Susan Robinson, whose Key Concierge on Longboat Key caters to those whose Sarasota abode is their second, third or even fourth home. "Increasingly we are picking them up at the jetport -- at Dolphin Aviation -- instead of the airport, so they are flying in on their corporate jets or in their private jets.

"Some clients are flying their own personal chefs in with them."

The Waldorf-Astoria Collection, a high-end resort unit of Hilton Hotels, has just five other properties, including the Arizona Biltmore, The Grand Wailea in Hawaii, and La Quinta in Palm Springs. The company, now owned by the muscular Blackstone Group, plans to roll out the brand into a string of Waldorfs around the world.

The customers?

"Higher household income, highly educated, generally well-heeled travelers," said Edward J. Russo, Waldorf-Astoria's senior director of marketing. "Our customers are very experiential. They are not going to these locales and staying in their room."

In Sarasota, that might mean not only going to the beach, but also golfing or boating, going to a play, visiting a museum and experiencing the architecture, Russo said.

You can bank on it

Once the wealthy begin populating a place, the people who take care of their money show up, too.

The latest to see the need in Sarasota is National City Corp.'s Private Client Group, a wealth management organization handling not just banking, but also every single financial need the wealthy could possibly have.

"We've been in Florida for about 20 years, both in Naples and in Palm Beach," said Matthew Lowell Bower, the senior vice president who opened the Sarasota office on Jan. 4.

While the firm is willing to deal with the emerging affluent -- those with investable assets of $500,000 to $1 million -- its core customers have assets of $1 million to $20 million.

"One out of nine individuals in the Sarasota market has a million or more in investable assets," Bower said. "Just the corridor from Naples up into the Tampa-St. Petersburg market is probably the sixth or seventh most wealthy corridor in the United States."

Sounds operatic

The region's evolution into a watering hole for the wealthy began long ago, always focused on watery views with cultural overtones.

Its nascence goes back to 1910, with the arrival of Chicago heiress Bertha Palmer. She built a bayfront winter home south of downtown Sarasota, "The Oaks." In the succeeding years, the Ringlings and friends built their homes on the north side of town, leaving room for yachts to dock.

"The entire west coast of Florida is the best cruising market, in my opinion, of anywhere in the world," said Carmine Galati, co-owner of Galati Yacht Sales, just named the best yacht sales organization in the world by Boating magazine. He runs the firm's yachting centers at Naples, Anna Maria Island and Tampa.

By 1926, downtown Sarasota was strutting its stuff with the opening of the A.B. Edwards Theater, an early mixed-use development graced by an elaborate three-story-high entrance. In addition to a movie theater, the building had ground-floor shops, second-story offices and third-story apartments.

In 1983, it was dusted off as the Sarasota Opera House.

Just in time to save the 2008 winter season, the opera house reopened March 1 after extensive updating and remodeling, to the tune of $20 million. It has medium-sized Sarasota being written up for opera by both London's Financial Times and L'Opera magazine, based in Milan, Italy.

The presence of the opera, the Ringling College of Art and Design, the Ringling Museum and dozens of downtown art galleries -- well-established features of the cultural landscape -- made it all the easier for those who came during this decade's boom years. In the Ritz-Carlton Sarasota's wake came a passel of fancy condominiums and upscale shops and restaurants. The people who moved into those new condos, in turn, encouraged Whole Foods to establish its downtown Sarasota store, giving the area even more of a center of gravity.

Back when Ritz announced it would build a hotel here, Lynn Robbins of Coldwell Banker began making calls to Naples to find out what difference the hotel might make. The answer, she found, was that it would completely change the landscape for the rich.

"What it did do, it brought a lot of people here who heard about Sarasota, but they wouldn't come here unless there was a Ritz or a Waldorf or a Four Seasons," Robbins said. "And they come here and they fall in love with it and buy a second, third or fourth home."
This Ritz effect continues to generate ripples.

Consider Hyde Park Steakhouse -- scheduled to open Tuesday -- where Kobe beef burgers and Russian caviar are on the bar menu -- or the Paris-based jewelry house Van Cleef & Arpels, which moved into Southgate mall late last year.

No quiet ribbon-cutting would do for the jeweler. Instead, Van Cleef & Arpels flew in soprano Patricia Johnson, a specialist in the Italian bel canto repertoire. Johnson has performed at The Met with the New York City Opera, and her European debut was as Konstanze in Mozart's "Die Entführung aus dem Serail" with the Komische Oper Berlin.

"It appealed to our core client," said Nathalie Diamantis, a vice president for the New York-based jeweler. "We often do things with the arts."

Jet set

One solid barometer of how Sarasota is catching on with the jet set comes from Flight Options, which sells flight hours aboard a private, crewed jet.

"You put a deposit down, draw travel time against that," said company spokeswoman Cindi Deutschmann-Ruiz. "It takes $100,000 to begin."

With prices of $3,400 to $8,000 per hour, $100,000 can be exhausted quickly.

Flight Options recently cranked out a Top 10 list of places rich people want to take its jets during the winter. Sarasota came in at No. 6.

Palm Beach was No. 1, and the Sundance Film Festival pushed Salt Lake City into the No. 2 slot. After that came Las Vegas, Naples and Boca Raton. The ski village of Aspen, Colo., was No. 8.

Retail cachet

Retail is another sign of Sarasota's growing cachet.

Before signing on the dotted line in Sarasota, Neiman-Marcus studied, among other things, just how many black-tie events were held each year. The company did extensive demographic and psychographic research, said Wayne Hussey, the company's vice president of development.

The Dallas-based retailer is known for selling Armani tuxedos and gowns, as well as fashions by Versacci, Gucci, Roberto Cavelli, Nina Ricci and Carolina Herrera, and it operates just 39 stores. They are in places like Bal Harbour, Palm Beach, Beverly Hills, New York, Honolulu, Las Vegas, San Francisco, Boston and Denver.

The Sarasota community has "a very sophisticated and fashion-conscious segment of residents," Hussey said.

"The thing that appeals to us is its diversity -- its strong business environment, the cultural element that it offers, compared to other Florida cities, and its high level of season."

"Women & Wealth" Seminar Hosted by Florida Luxury Marketing Council

2008-05-11T18:16:00.003-04:00

From the Desk of Deborah Beacham

Luxury Marketing Council’s “Women and Wealth” presentation

I had the opportunity last week to attend a presentation by Dr. Kirby Rosplock, Vice President, Research & Development of GenSpring Family Offices. She directs corporate research efforts for the firm and is a 4th generation member of a family business and is a co-trustee on her family’s foundation. Kirby holds a Ph.D. in Organizational Systems from Saybrook Graduate School, where she focused on change management as it applies to affluent families.

The presentation was hosted by the Florida Luxury Marketing Council, an organization that works to bring the most innovative marketers of luxury products and services together to explore and share best practices, critical issues, and trends through innovative marketing collaborations and creative exploration of trends. With more than 900 council members throughout the world, there are chapters from Atlanta to Dubai to London to Mumbai to Sarasota.

GenSpring sponsored a study in 2006 exploring women’s knowledge, awareness, involvement, decision making, attitudes and wealth transfer intentions. Over 100 affluent women participated in the study whose combined assets total more than $2 billion, and their aggregated responses give us greater insight into women’s perceptions, views and intentions when it comes to handling their wealth. The women who participated tend to be in their fifties with a household net worth of $10 to $25 million, are married, and have two to three children. They likely inherited a significant portion of their wealth and came from an upper-middle or middle class home. More often than not, they are employed and work in professional services, education, investment/money management, healthcare, or service work. Those who do not work volunteer their time to various organizations.

They are largely educated, with at least a Bachelor’s degree, and likely an advanced degree. These women also feel that it is important to have a strong work ethic and to rear children to appreciate the value of a dollar.

One example of a “Myth or Reality”:

Myth: Wealthy women see their wealth connected to their image, identity and power.
Realty: --Women are impressed by people with wealth (88% disagree)
--Having wealth equates to having power (55% disagree)
--Wealth is connected to image—Women are divided (41% disagree; 42% agree and 17% are neutral)
--Most women interviewed do not consider themselves to be wealthy.

To get a copy of the Women & Wealth Report of Findings, visit GenSpring’s website, www.GenSpring.com to download the study’s Key Findings.

Fed cuts interest rates to lowest level in 4 years

2008-05-05T19:24:00.002-04:00

WASHINGTON (AP) – May 1, 2008 – Scrambling to shore up the faltering economy, the Federal Reserve cut interest rates to the lowest point in nearly four years as the nation teetered on the edge of recession.

Wall Street rallied at first Wednesday but then pulled back, concerned that the reduction might be the last for a while.

In fact, the Fed’s trim was smaller than those of recent months amid indications the central bank might pause to see if months of powerful rate-cutting medicine and billions of dollars in stimulus checks will be enough to lift the country out of its slump.

Chairman Ben Bernanke led a divided Fed, in an 8-2 vote, in slicing its key rate by one-quarter percentage point to 2 percent.

In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Both rates are the lowest since late 2004.

The Federal Reserve, which has been dropping rates since last September, turned much more forceful early this year when housing, credit and financial problems worsened. Rate reductions in January and March alone marked the most aggressive intervention in a quarter-century in an effort to re-energize consumers and businesses.

“The substantial easing of monetary policy to date ... should help to promote moderate growth over time and to mitigate risks to economic activity,” the Fed said, strongly hinting that more cuts may not be needed.

Enthusiastic Wall Street investors drove the Dow Jones industrial average up more than 178 points – lifting it above 13,000 for the first time since early January – right after the Fed action. Then traders’ caution returned, and the index ended the day 11.81 points below where it started.

Although the Fed didn’t take another reduction off the table, a growing number of economists believe the central bank is winding down its rate-cutting campaign. Barring another hit to economic growth, they believe rates probably will stay where they are – perhaps through the rest of this year – in part because the Federal Reserve is concerned that further cuts could join with galloping energy and food prices and spread inflation dangerously higher.

By all accounts, the country’s economic health is fragile.

The economy crawled ahead at a pace of just 0.6 percent from January through March as housing and credit problems forced people and businesses to hunker down, the Commerce Department reported hours before the Fed’s action. Growth had been just as feeble in the prior quarter.

Job losses for the first three months of the year neared the staggering quarter-million mark, and a government report on Friday is expected to show that employers shed jobs again in April. The unemployment rate, now at 5.1 percent, also could creep higher in April and hit 6 percent early next year, analysts say.

“Recent information indicates that economic activity remains weak,” the Fed said. “Household and business spending has been subdued, and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.”

Two members – Charles Plosser, president of the Federal Reserve Bank of Philadelphia, and Richard Fisher, president of the Federal Reserve Bank of Dallas – opposed cutting rates Wednesday, a crack in the usually unified front the Fed often shows the public.

Both men have a reputation for being especially vigilant about fighting inflation. At the Fed’s previous meeting in March, they opposed cutting rates by a whopping three-quarters point and preferred a smaller reduction.

“The Fed didn’t completely shut the door on rate cuts but they closed it part way,” said Mark Zandi, chief economist at Moody’s Economy.com. “I think the overall message was they’ve done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed.”

Bernanke’s juggling act is getting harder. Fed policymakers are trying to bolster economic growth, and at the same time they are mindful that they can’t let inflation get out of hand. The very rate reductions the Fed depends on to energize the economy can also sow the seeds of inflation down the road.

At the same time, many economists believe the economy already is declining.

Under one rough rule, if the economy contracts for six straight months it is considered to be in recession. However, that didn’t happen in the last recession – in 2001. A panel of experts at the National Bureau of Economic Research that determines when U.S. recessions begin and end uses a broader definition, taking into account income, employment and other barometers. The bureau’s finding is usually made well after the fact.

The Fed’s previous rate reductions, which take months to work their way through the economy, should help lift growth in the second half of this year. The government’s $168 billion economic-stimulus package – including tax rebates that started flowing to bank accounts on Monday – also should help energize activity, the Bush administration, Bernanke and private economists have said.

The biggest weight on the economy is the housing crisis, which has pushed foreclosures to record highs and caused financial institutions to rack up billions of dollars in losses.

For mortgage rates, the Fed’s latest cut probably won’t have much, if any, impact.

On the Net: Federal Reserve: http://www.federalreserve.gov/

Copyright © 2008 The Associated Press, Jeannine Aversa (AP Economics Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

2007 Profile of Florida Homebuyers and Sellers Published by NAR

2008-05-01T18:43:00.001-04:00

Study: Single person, non-child families trend in 2007 Florida home sales

ORLANDO, Fla. – Jan. 8, 2008 – One in three Florida homebuyers is single, with 21 percent of 2007 home purchases made by single women and 12 percent by single men – just one finding from the newly-released Florida version of NAR’s “2007 Profile of Florida Homebuyers and Sellers.” Another highlight: Over two-thirds of Florida buyers (64 percent) had no children younger than 18.

The 2007 Profile of Florida Homebuyers and Sellers describes the characteristics and motivations of recent homebuyers and sellers in Florida to help real estate professionals track the changing demands of consumers in a dynamic market. Here’s a summary of the report’s findings:

Characteristics of homebuyers

• The median age of homebuyers was 43 years old. Among first-time buyers, the median age was 32.
• The 2006 median household income of homebuyers was $67,500 compared to $74,000 among homebuyers nationally.
• Sixty-four percent of homebuyers reported that there were no children under age 18 residing in the home.
• Fifty-nine percent of homebuyers were married couples, 21 percent single females, 12 percent single males, and 6 percent were unmarried couples.
• Eighteen percent of Florida homebuyers reported they were born outside the United States, compared to 9 percent nationally.
• First-time homebuyers accounted for 38 percent of homes purchased in 2007.
• Forty-nine percent of first-time homebuyers were between 25 and 34 years old.
• The median income of first-time homebuyers was $58400 compared to $58,600 among all first-time buyers nationally.
• Sixty-five percent of homebuyers between 18 and 24 purchased a home because of their desire to own a home of their own and establish a household.
• Thirty-eight percent of homebuyers reported using social networking Web sites, such as, MySpace, Facebook, LinkedIn, and Friendster. Among homebuyers aged 18 to 24, 76 percent reported using social networking sites.

Characteristics of homes purchased

• Twenty-seven percent of recent homebuyers purchased newly built homes.
• Fifty-eight percent of homes purchased were detached single-family homes.
• The typical homebuyer purchased a home 14 miles from their previous residence.
• The median price of homes purchased was $230,000 compared to $215,000 in the U.S.
• The typical buyer purchased a home that was 1,700 square feet in size.
• Recent homebuyers plan to live in their home a median of 10 years.

The home search process

• Twenty-five percent of recent buyers reported that their first step in the home-buying process was looking online for properties for sale. Eighteen percent of first-time buyers and 24 percent of repeat buyers reported their first step was to contact a real estate agent.
• Eighty percent of homebuyers used the Internet to search for homes.
• The typical homebuyer searched for a home for a median 8 weeks and saw a median 10 homes.
• Eighty-four percent of homebuyers used a real estate professional during their home search.
• Among homebuyers, the typical Internet searcher was 40 years old and visited a median 10 homes. The typical homebuyer that did not use the Internet to search for homes was 53 years old and saw a median 5 homes.
• Thirty-seven percent of homebuyers first learned about the home they purchased from a real estate professional; 19 percent first learned about the home they purchased through the Internet.
• Seventy-two percent of buyers viewed the Internet as a very useful tool in their home search.
• Real estate agents were viewed as a very useful information source by 67 percent of buyers, and as a somewhat useful information source by an additional 23 percent of buyers searching for a home.

Home buying and real estate professionals

• Seventy-one percent of homebuyers purchased their home through a real estate agent or broker.
• Buyers searched for a median of two weeks on their own before contacting an agent.
• A friend, family member, neighbor or relative referred 52 percent of first-time buyers to their agent.
• Ninety-eight percent of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
• When asked about their agent’s performance on those qualities considered important, 80 percent reported they were “very satisfied” with the honesty and integrity of their agent.
• Sixty-eight percent of recent buyers will definitely use their agent again, and an additional 19 percent will probably use the agent again or recommend to others.

Financing the home purchase

• Ninety percent of homebuyers financed their home purchase; 98 percent of first-time homebuyers financed the purchase of their home compared to 90 percent of repeat buyers.
• Savings were the chief source of the downpayment for most first-time homebuyers (69 percent).
• Fifty-three percent of repeat buyers used proceeds from the sale of their primary residence toward the downpayment; 46 percent relied on savings for a portion of the downpayment.
• Forty-seven percent of all buyers believe that their home purchase was a better financial investment than stocks, and an additional 30 percent of buyers feel their home purchase was at least as good an investment as stocks.

Home sellers and their selling experience

• The median age of home sellers was 48 years; they had a median income of $83900.
• Sixty-nine percent of home sellers were married and 61 percent had no children under 18 years old living at home.
• Fifty-one percent of home sellers traded up to a larger home when purchasing their next home.
• The typical home seller owned their home for 6 years.
• Fifty-three percent of recent home sellers reported that they undertook home improvement or remodeling projects within three months prior to putting their home on the market.
• The typical home was on the market for 10 weeks. 33 percent of home sellers did not reduce their asking price before their home sold.
• Recent sellers typically sold their homes for 96 percent of the listing price.
• Seventy-nine percent of sellers used an agent or broker to sell their home.
• Sixty-seven percent of all sellers were very satisfied with the selling process.

Home sellers and real estate professionals

• Fifty-nine percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 36 percent of sellers received a recommendation from a friend, neighbor or relative.
• The reputation of the agent was the most important factor when choosing a real estate professional for 39 percent of recent sellers.
• Twenty-six percent of sellers used the same agent for their home purchase.
• For 37 percent of sellers, their most important expectation is that the real estate agent will help sell the home within a specific timeframe.
• Eighty-six percent of sellers reported that their home was listed or advertised on the Internet.
• Eighty-two percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• Sixty-two percent of sellers reported they would definitely use the same real estate agent again.

For sale by owner (FSBO)

• Seventeen percent of sellers sold their home without the assistance of an agent compared with 12 percent of sellers nationally. Among all sellers, 3 percent were FSBO sellers who knew the buyer.
• Eighty percent of FSBO sellers sold a detached single-family home.
• For 19 percent of FSBO sellers, the most difficult task in selling their home was understanding and performing the necessary paperwork to complete the transaction, for 3 percent it was preparing the home for sale, and for 12 percent the most difficult task was getting the price right.

To download the complete report in PDF format, go to floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm

© 2008 FLORIDA ASSOCIATION OF REALTORS®

Wall Street Journal

2008-04-30T14:00:00.001-04:00

From The Wall Street Journal

Sunny Side of the Street
America's wealthy see buying opportunities in sluggish real-estate market
By AMY HOAK
MarketWatch - April 16, 2008

CHICAGO -- Is now a good time to buy real estate? The size of your paycheck likely will play a big part in how you answer that question.

While many average Americans are skittish about the housing market, some of the country's richest citizens see the current conditions as perfect for buying, according to the Annual Survey of Affluence and Wealth in America, released on Tuesday by the American Express Publishing Corp. and Harrison Group, a market research and consulting firm.

Seventy-seven percent of the wealthiest people surveyed think real estate presents a "real opportunity" right now. In the survey, "wealthy" meant having discretionary household income of more than $500,000 a year.

And these high-income earners are putting their money where their mouths are: 40% said they are in the market to acquire real estate this year.

The survey was originally conducted late last year with 1,800 people representing the wealthiest 10% of American households. But the more recent figures are from a follow-up survey with a smaller sample of the original participants, conducted last week to ensure the study reflects rapidly changing market dynamics.

Other survey participants are "upper middle class," with incomes between $100,000 and $149,000; "affluent," with incomes between $150,000 and $249,000; and "super affluent," with incomes between $250,000 and $499,000.

Associated Press
The wealthy aren't alone in their belief that the real-estate market represents a buying opportunity: 67% of the upper-middle-class participants also agreed with that statement, as did 72% of the affluent and the super-affluent.

"There are bargains out there...severe price pressure across the board," said Jim Taylor, vice-chairman of Harrison Group. That said, at the very top of the market, there is an abundance of buyers and that is holding prices steady at that level, he added.

Still, the wealthiest were the most committed to buying soon. Only 17% of upper-middle-class participants said they were in the market to buy real estate this year, while 24% of the affluent and 26% of the super-affluent said the same.

Home sweet second -- and third -- home

Forty-one percent of those in the wealthy category said owning a second home was "almost a requirement" for people of their economic means, according to the survey.

Thirty-three percent of the wealthiest who said they intended to buy this year are now in the market for a second home, and 25% said they are in the market for a finished third home, according to the survey.

"They're treating it as a portfolio play, rather than a recreation play," Taylor said. "They've moved off the notion that it's just pleasure real estate," he said, adding that the wealthy use second homes to help balance their overall investment portfolio.

Recession now, but rebound coming

Seventy-nine percent of the survey's respondents said the country is in a recession now, but 88% said they are confident that property values will eventually rebound. Still, 18% of respondents said the equity in their home is worth less than what they owe.

Many respondents expressed significant anxiety over the recession, Taylor said. That was especially true of the upper-middle-class and affluent groups, he said.

But not everyone is worried about their own financial stability. Taylor said he expects the number of millionaires to increase by another 6% this year.

Passion for home improvement

A separate survey of senior-level executives found that high earners often are passionate about improving their homes -- even more passionate than they are about spending time on the golf course.

Thirty-nine percent of 552 high-level executives said they were passionate about home improvement, compared with 32% who said the same about playing golf, according to a recent survey by Doremus, a business communications agency.

"Home is seen by most as a respite from the world, a place where people feel they can be themselves." said Hope Picker, director of research for Doremus, in a news release. "And high-powered senior-level executives are no exception.

"Golf is a game, but it's another form of competition and, in many cases, it's also a surrogate conference room where business is conducted and deals made. But home, even for many high-level professionals, is a safe haven. In addition, home-improvement projects tend to be both tangible and finite, in contrast to much of their work."

The company recommended that marketers interested in reaching these high-net-worth individuals should target them through publications, broadcasts and online sites that feature decorating and improvement ideas for the home and garden. End of Story

Amy Hoak is a MarketWatch reporter based in Chicago.

Posted by Deborah Beacham