Sarasota Homes Sarasota Real Estate

Bird Key

2011-03-08T20:13:00.000-05:00

Discover a tropical lifestyle on Bird Key. Surrounded by the shimmering waters of Sarasota Bay, Bird Key is a private, exclusive enclave of 500 single-family homes. Quiet streets and striking vistas of Sarasota Bay and the city skyline have recently attracted younger residents who enjoy world-class shopping on St. Armands Circle, glorious days and evenings at Lido Beach, and the dazzling schedule of the downtown theater district. Older homes, including some of the largest and most extravagant, are being renovated or rebuilt. A boater’s paradise with its own prestigious yacht club, many homes are on the bay or deep-water canals.

Year-to-date closed sales on Bird Key total $7,737,500. Of that total, Michael Saunders & Company listed and sold $6,987,500—an impressive 90% of the sales volume. These sales included two canal homes and one bay front home. The home at 623 Mourning Dove demonstrates the true power of Michael Saunders & Company involving proper pricing by Deborah Beacham and Kathleen Callender, of the St. Armands office, recognizing the right home for her client. This exceptional Bird Key home was on the market with Michael Saunders & Company for just nine days. The only other property closed year-to-date is a garden home. This market dominance illustrates the value of Michael Saunders & Company agents previewing our active listings on a weekly basis.

There are currently 41 active listings for sale on Bird Key: 9 garden homes,18 canal homes and 14 bay front homes. The garden homes range from $625,000 to $1,495,000. The canal homes range from $850,000 to $2,900,000. The bay front homes range from $1,799,000 to $9,490,000.

Presently there are nine properties under contract waiting to close. Five are garden homes, four are canal homes and one is a bay front home. From the above statistics, Bird Key market at this time is quite robust.

Hidden Harbor

2011-02-24T19:20:00.003-05:00

Beautiful waterfront homes grace the community of Hidden Harbor. Pictured: 5132 Jungle Plum Rd.
Located on the bayside north end of Siesta Key—convenient with quick access to Siesta Key Village and the mainland—Hidden Harbor is a gorgeous, upscale community embellished by a lush, Selby Garden-like environment and meandering brick paver roads. The heavily treed, private neighborhood is ideal for boaters, with a number of elegant waterfront homes with some docks accommodating large watercraft.

Contemporary Florida architectural design is the predominant style of homes in this neighborhood, but a number of custom built properties are intermixed and add their own unique flair.
Market Activity – Hidden Harbor

There are currently four active properties in Hidden Harbor, three of which are represented by Michael Saunders & Company agents. The price range for the four available listings is $3,445,000 – $4,950,000. Each home is well over 5,000 square feet, and all are situated on the water front—three on the bay and one on a canal.

In the past six months, Hidden Harbor has had one sale, a 3,597-square-foot, recently renovated canal front estate built in 1964.

One property is currently pending with a listing price of $2,999,000. This home is over 4,200 square feet and was built in 2000.

Why Choose Hidden Harbor?

An exclusive and lavish community offering its residents a casual tropical island lifestyle, Hidden Harbor enjoys a remarkable location on beautiful Siesta Key.

Top 10 Ways to Lower Homeowners Insurance Costs

2011-02-24T19:10:00.006-05:00

Keeping your home safe can lower insurance costs.
It seems as though with some insurance providers, premiums for homeowners insurance policies are constantly on the rise. If there is an increase in home insurance claims in your area, due to whatever reason, your premiums have most likely up—even if you have not submitted any claims. To offset these increases, you might have to take some necessary steps to lower your premium.
To help, here are our top 10 ways you can save money on your homeowners policy:

1. Raise Your Deductible –In most cases, the homeowner never files an insurance claim. Select a higher deductible and reduce your monthly premium. To prepare for an unexpected event, establish an “in case of emergency” savings. Therefore, if a fire or natural disaster causes damage to your property, you’ll have some funds to help pay the deductible. Ask your agent what the various deductibles offered are, and the premium cost for each one

2. Consolidation - Consolidate your homeowners insurance policy with your other existing insurance carriers. In many cases, if you use the same agent or insurance company for all of your insurances needs you get multi-policy holder discounts.

3. Stay Put – If you’ve kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5% after you’ve been with them for three to five years, and some companies will discount you as much as 10% after six years. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.

4. Insure your Home, not the Land – Although your home and its contents are at risk from fire, theft, windstorms and other perils, the land your house sits on is not. Don’t include the value of the land in deciding how much homeowners insurance you need to buy. Talk to your insurance agent about elimination of this protection. Unless you have good reason to anticipate a sinkhole or other unusual geological event occurring in your backyard, land coverage is pointless

5. Price Check – Price compare rates offered to you from several companies each time your policy comes up for renewal. Rates given on insurance can vary based on the company’s situation, and your situation at the time that you apply. Just because one insurance company is cheaper this year, does not mean their rates are always the lowest.

6. Protection Features – The more protection your home features, the better. For example, some home owner’s insurance polices give discounted rates if you install a home alarm system, deadbolts on your doors, or a new roof. Homeowners with plentiful protection receive lower quotes on their policy. To pay a smaller premium, install fire detectors and extinguishers on each level of the home.

7. Senior Discounts – Insurance companies have found that retired people stay at home more, therefore able to keep watch on the property more than working people. Older people also have more time for maintaining their homes. If you’re at least 55 years old and retired, you might qualify for a discount of as much as 10%.

8. Check Up – You want your policy to accurately reflect the value of your home and belongings. If you review your policy every year, you will be able to make the necessary adjustments.

9. Group Rate – Look into discounts for group coverage. Alumni and business associations often work out insurance deals with an insurance company, which includes a discount for association members. Ask your association’s director about any such deals.

10. Credit – Check your credit rating. Insurance companies frequently check your credit score to determine how much they should charge you for insurance. Consider it one more reason to stay on top of your credit. Make sure your credit is in good shape, and if it’s not, seek out companies that do not run credit checks.

What IS Risk Retention and How Will It Affect You?

2011-02-19T13:21:00.001-05:00

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Barack Obama on July 21, 2010. The law’s far reaching impact will take years to understand, but as professionals we do know that Title IX (Risk Retention) will have a dramatic impact on consumers and the mortgage industry.

What is Risk Retention?
Risk Retention is a new burden for those who securitize mortgages- those entities that bundle closed loans into pools and sell them in the secondary market. These are typically Wall Street style entities. They have little to no direct impact with the consumer, but play a vital role in maintaining liquidity in the housing market. Their role is to replenish the cash available for lenders to lend by buying closed loans from lenders (thereby providing new cash for lenders to lend again). As intermediaries between lenders and long term investors, securitizers perform a much needed function.

While it seems that loans guaranteed by the government (FHA, VA, USDA, etc) will have their securities exempt, there is still a huge number of conventional loans (including loans slated for Fannie and Freddie) that will be impacted.

As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, these securitizers will be required to retain an interest in many of the loans. Up-to-now they mostly have just been a pass-through entity. That adds costs to their operations; costs that will have to be passed on to the consumer.

What will be the cost?
Good question! Although this is slated for enactment and enforcement in April, there is no clear definition or direction from the government. The bill talks about retention of 5% of the risk, but what is the risk? We are confident in saying it’s not 5% of the loan amount because typically a lender doesn’t lose all their money in a foreclosure and not every loan gets foreclosed on. There is some sentiment that “risk” might be defined as 2% of the loan amount; and 5% of that would only be 10 basis points, but that would likely mean a 10 basis point hike in mortgage interest rates to capture the additional cost from the consumer. That hurts home buyers, sales prices, and slows recovery.

Understand that everyone is taking educated guesses. We can see scenarios where lender would be almost forced to avoid lower loan amounts which would have an even bigger impact on the areas that fuel recovery- neighborhoods for first-time buyers. If it lowers the number of first timers who become home buyers, it will hurt those sellers who are looking to move up. Higher rates coupled with lenders shying away from lower cost neighborhoods…..bad recipe.

A lack of clarity and a lingering start date are forcing some of the major securitizers to start implementing strategies to protect themselves from a compliance prospective. Many lenders have focused on lobbying for a narrow definition of “risky” loans and have promoted eliminating convention loans that are fully documented with certain credit scores or income documentation, for example.

But, NOT Wells Fargo….
Wells Fargo is on record as proposing that anyone who buys a home utilizing conventional financing with less than a 30% down payment should be required to get Private Mortgage Insurance- a significant increase from the 20% now required. (Having that PMI, would make the loan virtually risk-less for the securitizer.) Of course, that PMI would bring with it additional costs for borrowers and, once again, make buying a home more expensive (in this case for many of the “A Borrowers”).

I want to point out that we are 90 days away from SOMETHING that is going to make home buying more costly and force some renters to stay put. If you are looking to buy, GET MOVING! If you are looking to sell, PRICE YOUR HOME TO COMPEL BUYERS TO MAKE OFFERS. Time is running out. Tick Tock!

Top 5 Home Improvement Projects Based on Average Cost and Return on Investment

2011-02-13T13:20:00.000-05:00

RISMEDIA, January 20, 2011—HomeGain.com, a website to offering Web-based, free instant home values, announced that it has released the results of its nationwide home improvement and home staging Home Sale Maximizer survey.

HomeGain surveyed nearly 600 real estate professionals nationwide and configured a list of the top 10 do-it-yourself home improvements that cost under $5,000 and benefit sellers most when they sell their homes.

According to the HomeGain survey, the top five home improvements that real estate professionals recommend to home sellers based on average cost and return on investment (from highest to lowest ROI) are:
1. Cleaning and de-cluttering – ($290 cost / $1,990 price increase / 586% ROI)
2. Lightening and brightening – ($375 cost / $1,550 price increase / 313% ROI)
3. Home staging – ($550 cost / $2,194 price increase / 299% ROI)
4. Landscaping – ($540 cost / $1,932 price increase / 258% ROI)
5. Repairing electrical or plumbing – ($535 cost / $1,505 price increase / 181% ROI)

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 99% of real estate professionals, costing less than $300 and returning a value of nearly $2,000 to the home’s sale price, or a 586% return on investment.

“Sellers need to prepare their homes for sale before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain. “Homes that have initial appeal have a better shot at selling faster and closer to the asking price than homes rushed to the market with no improvements.”

Rounding out the top 10 low cost, do-it-yourself home improvements includes: updating electrical systems and/or plumbing, updating the kitchen and bathrooms, replacing or shampooing carpets, painting interior walls, repairing damaged floors, and painting the outside of the home.

The home improvement projects with the highest price increases to a home’s resale value are updating the kitchen ($1,265 cost / $3,435 price increase), followed by painting the outside of the home ($1,467 cost / $2,222 price increase) and home staging ($550 cost / $2,194 price increase).

Housing Moving to Higher Ground in 2011

2011-02-11T13:18:00.001-05:00

RISMEDIA, January 18, 2011—Housing will see gradual improvements in activity this year as the nation’s economy and job market continue to move to higher ground, establishing momentum that will produce more considerable gains in 2012, according to economists who appeared at the NAHB International Builders’ Show in Orlando on January 12.

“This year’s spring selling season will be better than last year’s,” said NAHB Chief Economist David Crowe, with job growth providing a stronger stimulus in the housing market than last year’s tax credits for home buyers
Crowe forecasted 575,000 single-family home starts in 2011, a 21% climb over an estimated 475,000 units started in 2010, which in turn showed a 7% gain from the 442,000 homes started in 2009.

Multifamily, which is poised to profit from a disproportionate number of Gen Y members moving into the housing market, has seen the bottom of the cycle, he said, and will see its starts rise 16% this year to 133,000 units, with a further 53% increase in 2012 to 203,000 units.

Builders’ access to the credit they need to start new homes remains the fragile component of the NAHB forecast, Crowe said. So far, small builders have experienced extreme difficulty in obtaining financing, and rectifying the situation as soon as possible is the top priority of the association.

More encouraging is a rebound in the confidence of consumers, who mid-2010 “froze in place, faced with a lot of uncertainty,” he said. A recent pickup in durable purchases for such items as automobiles and furniture indicates that consumers are less afraid today of losing jobs and income.

The U.S. economy will receive a boost from the massive tax package enacted at the end of last year, he said, including more income going into the pockets of wage earners thanks to a one-year 2% reduction in Social Security taxes. This will contribute to the gross domestic product strengthening from the 2.5% range to 3.5% to 3.8% by year’s end.

New-home sales, Crowe projected, “will struggle” but begin following employment gains, reaching 405,000 for the year, up from an estimate of about 320,000 for 2010.

The housing recovery will start up slowly this year, he said, because it will be driven by the relatively low housing production Plains states, with Texas the most powerful of the bunch. Traditional bulwarks of housing activity such as California and Florida, on the other hand, will not be among the states whose housing markets recover the fastest.

In addition to stimulative fiscal and monetary policy, Freddie Mac Chief Economist Frank Nothaft said that housing affordability and demographic trends will help support growing housing demand.

Citing research from the Harvard Joint Center for Housing Studies, Nothaft said that households should be growing at an average annual rate of 1.2 million to 1.5 million over the next five to 10 years, suggesting the need for a sharp increase in housing production; half of the 500,000 to 600,000 starts of the past two years were needed just to replace the number of homes being removed from the housing stock.

While there will continue to be supply overhangs in some important large markets, by and large the housing price slump should bottom out by the middle of this year, he said, and price increases are already occurring in some local areas. That should attract prospective buyers who have been procrastinating until they see prices hit bottom.

“Potential buyers who have resources to buy but want to buy at the bottom are likely to start coming into the market in the springtime,” he said, which for fence sitters will be “the time to come into the market.”

Fixed-rate mortgages will move up from their current 4.75% to the 5.75% range by the end of this year, he forecasted. This will push total single-family mortgage originations down about 30% below the 2010 level as refinancings fall sharply in the face of rising mortgage rates.

While a 20% increase in housing production in 2011 is good news for housing, to put things in perspective, Nothaft said that this gain is from an extremely low level, with single-family production declining about 80% from peak to trough.

Lakewood Ranch Community Video

2011-02-10T17:53:00.000-05:00

Lakewood Ranch is a premier planned community, conveniently located to both Sarasota and Bradenton. It’s known regionally for carefully preserving and highlighting the natural beauty of the areas unique geographic qualities including its many lakes, wooded areas, and wetland preserves that can be enjoyed by its residents through miles of nature trails and bike paths.

Housing Industry Readies Mortgage Tax Break Fight

2011-02-07T13:19:00.000-05:00

RISMEDIA, January 18, 2011—(MCT)—The housing industry is girding for a fight in Congress to protect the mortgage interest deduction, along with a number of other housing-related tax breaks. The National Association of Home Builders is putting a high priority on lobbying in favor of the mortgage interest deduction, along with breaks such as the capital-gains exclusion on home sales, and has already created a website, http://www.savemymortgageinterestdeduction.com, to begin rallying public support behind its position.

“This is a huge benefit for 35 million taxpayers a year. And the biggest beneficiaries are middle-class families and younger home buyers,” said Robert Dietz, who oversees tax policy and issues for the NAHB.

The mortgage interest deduction has come under scrutiny before, but housing groups have always united against attempts to do away with it. The National Association of REALTORS® and the Mortgage Bankers Association are two other powerful lobbies that have opposed those efforts in the past.
“There are a couple of sacred cows in the tax code, and the mortgage interest deduction is one of those. Politicians take it on at their own risk,” said J. P. Delmore, the senior federal legislative director for the home builders’ group.

The builders were worried enough about the tax situation that they excluded the media from their recent sessions on tax policy at the 2011 International Builders Show in order to formulate strategy.

In a news conference, Dietz and Delmore touched on at least some of what that strategy will entail. “Without question, we will be very aggressive in the media, and we are prepared to do that,” Delmore said.

Another key point housing groups will focus on is the still-shaky state of the housing market. Although estimates vary widely on what elimination of the mortgage interest deduction could mean to home sales, Dietz said at least one analysis shows home prices falling 15% in that event.

But Delmore believes some sort of tax legislation is likely to advance in Congress either this year or next as lawmakers contend with mounting deficits, a presidential commission’s recommendations for reform and the 2012 expiration of tax breaks that Congress merely extended late last year.

One idea being floated is to replace the interest deduction with a 12% tax credit, but Delmore pointed out that for many middle-class taxpayers in the 25% tax bracket, that would amount to a 50% cut.

And any elimination of the capital-gains exclusion could harm older American homeowners, many of whom bank on the equity in their home to bolster retirement savings and need to sell to cash out, Dietz said.

“Any changes will have a huge impact on current and future homeowners,” Delmore said. “Any tax reform would have to be pushed like the health care reform was pushed, or it will fizzle out.”

Delmore said that President Barack Obama’s upcoming State of the Union address could provide clues as to how much impetus tax reform will get this year. The speech is set for January 25.

The 5 Keys to a Real Estate Recovery

2010-04-21T17:47:00.001-04:00

Posted By marketing On April 15, 2010 @ 9:14 am In Interest Rates, The Economy, economy

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by Steve Harney on April 12, 2010

The big question we seem to be getting as of late is whether or not a housing recovery will be coming by the second half of 2010. Today we asked Steve Harney to list five areas that will affect the two main components of a housing recovery: housing supply and demand. When aligned, these two components will bring price stabilization.

-The KCM Crew

Unemployment, Mortgage Interest Rates, Distressed Properties, Gov’t Intervention, Prices

There are many pieces that determine every market, and real estate is no exception. Knowing which keys will determine the future is no easy task. Today, I will list what I believe are the five major factors in real estate throughout the rest of 2010.

Unemployment

Recently we posted a blog [1] on the impact unemployment (or underemployment) has on the housing sector. We explained that there were two distinct affects:

1.Obviously an unemployed person cannot purchase a home. Demand for housing will remain muted as long as unemployment remains high.

2.When a wage earner in a home loses their job, it increases the chances that the family can no longer afford to pay their mortgage payment. Once a family falls 90 days behind on the payment, there is less than a 1% chance that they will ever catch up. There are more and more households that will face foreclosure or a short sale as long as unemployment remains high. This will increase the supply of distressed properties coming to the market.

Outlook for the second half of 2010:

Less demand and more supply can only mean continued downward pressure on home prices.

Mortgage Interest Rates

The Fed has decided not to extend their assistance in the mortgage markets. Many experts feel that will cause mortgage rates to rise quickly and dramatically. As Housing Wire reported [2] last week:

Mortgages need to be originated at roughly 6% at least to get any sort of capital flow; this was the case in previous securitization efforts, and its likely true now as well.

In the last week, rates have already jumped one quarter of a point. When rates increase two things happen:

1.Less people qualify to purchase a home

2.Those that still qualify decrease the price of the home they purchase so the monthly cost will remain the same.

Outlook for the second half of 2010:

Anything that has a negative impact on demand lengthens the time to recovery.

Distressed Properties

The long anticipated surge of foreclosures is upon us. Banks are letting us know that the time has come for them to start releasing their foreclosure inventory to the market.

As an example in a post last week, the Irvine Housing Blog [3] reported:

The west coast manager of real estate owned, Senior Vice President Ken Gaitan, stated that Bank of America, which currently forecloses on 7,500 homes a month nationally, will increase that number to 45,000 homes per month by December of 2010.

Our best hope is that the current short sale plans being instituted by the government (HAFA) and the private sector will be successful. A short sale has a much less severe impact on the value on the other houses in a neighborhood than does a foreclosure.

I believe both the increase of distressed properties and the timing of their release to the market will be the biggest real estate story of 2010.

Outlook for the second half of 2010:

Anytime the supply of an item increases and demand remains flat, pricing is adversely impacted. This supply will come at discounted prices (foreclosures at about 50% of value, short sales at about 70%). Its impact could be substantial.

Government Intervention

The administration has already exited its program which allowed them to purchase mortgage-backed-securities and it seems likely that there will be no extension of the Home Buyers Tax Credit.

The only appetite the government seems to have left regarding the housing market is in the form of modifications. Their new HAMP enhancement program which concentrates on the unemployed and those with negative equity seems to make sense.

However, the original plan was supposed to help 3-4 million American families save their house from foreclosure. A year later less than 200,000 have received a permanent modification. The sheer number of people in need might be too much to manage.

Outlook for the second half of 2010:

If you are a strong believer in miracles than you might hold solace in the new modification programs. If you are more of a historian, you know that, at best, mod programs in the past have only helped delay the inevitable.

Prices

Most experts have always used pricing as a key indicator to determine the recovery of any market. Real estate is no exception. I personally believe that pricing does not change until after the market recovers. However, for the sake of this blog, let’s go with the experts.

We had seen a stabilization of pricing as we finished 2009. Many people jumped on that data to pronounce a recovery in the housing sector. Most recent data, however, suggest that prices are again softening and many are predicting price declines from anywhere from 5-20% off current values.

As Housing Wire reported [4] last week:

After nine months of quarterly gains, US home prices dipped 3.9% from January to March as real-estate owned (REO) property takes more of the market, according to the Clear Capital Home Price Index.

“Although yearly price changes remain positive compared to last winter’s lows, the most recent declines reflect the fragile and volatile state of many housing markets and could signal a trend to renewed lows off last year’s levels for several markets,” said Alex Villacorta, senior statistician at Clear Capital.

I believe that if we are to use pricing as a key indicator than 2010 will not be the year the industry recovered.

Outlook for the second half of 2010:

Prices will continue to decline throughout 2010 as demand wanes and the supply of houses on the market increases – perhaps dramatically.

http://kcmblog.com/2010/04/12/the-5-keys-to-a-real-estate-recovery/ [5]

Investor Interest in Real Estate Triples in 12 Months

2010-04-21T17:46:00.001-04:00

RISMEDIA, April 16, 2010—According to a new Move, Inc., survey, interest in real estate as an investment has more than tripled in the past year. In fact, 17.2% of potential home buyers today say they plan to purchase a home in the near future as an investment compared to just 5.6% in March 2009.

The survey also found just over ten percent (12.3%) of Americans planning to purchase investment property in the near future say they will pay for the property using 100% cash, and 12.8% will use cash for more than 50% of the purchase price and finance the rest. Almost half (49.2%) say they will buy the property with less than 50% cash down and finance the remainder. The U.S. Census Bureau reported that one in three U.S. homes are owned free and clear, without a mortgage.

Nearly half of these potential real estate investors (46.5%) say they plan to own the property for six or more years, 16% expect to hold the property between two and five years, while 10.6% plan to own the property between six and 24 months.

While interest by potential home buyers in purchasing a foreclosure to live in themselves has dropped 31.1% in the past five months to 26.5%, this newest Move survey found interest in purchasing a foreclosure as an investment is on the rise. In fact, interest in purchasing a foreclosure as an investment to fix it up and resell it rose from 11.3% in October 2009 to 16% in March 2010, a 42% increase.

Economy and lifestyle needs to trigger transactions with buyers and sellers

The Move Homeownership survey also found approximately half (49%) of all homeowners would buy another home today if they could sell their current home for what they paid for it or more. This is especially true for homeowners ages 25 to 34 (68.2%).

Some of the most important reasons influencing homeowners’ decisions to sell their current home with the intention of purchasing another include the need to lower monthly expenses because of financial hard times (25.4%), their growing family needs more space (20%), or the desire for their children to attend a better school (14.1%). Moving closer to important daily conveniences (12.3%) or work (10.9%) and the desire to improve their lifestyle by purchasing a nicer or larger home because they’re doing well (10%) were also among the most important reasons homeowners would purchase a different house once they sell their current home.

“Real estate and housing today face many of the same challenges other major industries are experiencing as a result of our national economy,” says Move Chief Revenue Officer, Errol Samuelson. “Concerns around employment and their overall economic situation are causing many people to wait until the economy improves before they commit to one of the largest purchases they’ll most likely make in their lives. The findings of this newest survey make it clear the desire and motivation to be a homeowner remains strong, and as the economy continues to strengthen and improve, so will the housing market.”

Perceptions on affordability improve, first-time buyers prepare to buy

Despite today’s challenging economy, demand for homeownership remains strong and first-time buyers make up a significant number of all potential buyers. One in five consumers (21%) report they plan to purchase a home in the next 12 months to five years, with 7.9% planning to purchase in the next two years. Of those planning to purchase a home in the near future, half (50.7%) are first-time buyers, with men (55%) somewhat more interested in entering the housing market as a first-time buyer than women (45%).

The survey also found that while housing has become more affordable in the past nine months, most Americans are still unaware of how affordable homes are today. Based on survey results, 41.5% of Americans think a family making the median income of $52,029 can afford nearly half (45.7%) of all the available homes for sale in their area. In June 2009, more than three-quarters (76.4%) of Americans said they thought a family earning the national median income could afford 50% or fewer of the homes for sale in their area.

In fact, a median income family today can afford approximately 70% of the homes for sale on the Move Network, a leader in online real estate.

Dreams delayed not lost

According to this newest survey, the economy has forced some homeowners to make serious sacrifices or changes to their lifestyle as they wait for conditions to improve. Just over two-thirds (69.1%) of homeowners who have delayed selling their home reduced their daily living expenses in order to pay their mortgage, 35.4% have downsized to a smaller home, and 33.5% have delayed expanding their family as planned.

Approximately one-third (36%) of homeowners not in a position to sell their home and purchase a home that better fits their needs, report they couldn’t purchase a different home in a more upscale neighborhood as a result. This was especially true for women (45.1%) compared to men (27.2%). In addition, 24% of homeowners say they’ve not been able to move closer to work or a desired school (21.9%), purchase a second vacation home or retirement home (21.9%), or buy a rental property as an investment (21.5%) as a result of their current situation.

Real estate remains high on consumer radar

Real estate remains top of mind with Americans as more than half (55.1%) say they’re paying more attention to home values today as compared to a year ago. Only 10.8% say they’re paying less attention to home values this year. In the past year, monthly unique visitors on the Move Network, a leader in online real estate, have increased by 7.6% percent from 7.8 million in February 2009 to 8.4 million in February 2010. In February 2010, the top ten most popularly searched MSAs on the Move Network in order of popularity were Chicago, Los Angeles-Long Beach, Detroit, Dallas, Philadelphia, Tampa-St. Petersburg-Clearwater, Phoenix-Mesa, Boston, Atlanta, and Las Vegas.

For more information, visit http://www.move.com.

http://rismedia.com/2010-04-15/investor-interest-in-real-estate-triples-in-12-months/

New Home, New Expenses: First-Time Home Buyers Change Their Lifestyle to Afford Home Ownership

2010-04-21T17:45:00.000-04:00

marketing 4:31 pm on April 19, 2010

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Tags: Consumer news and advice (27), First Time Home Buyers (14), home buyers (89), real estate (111) Filed under: Buyer Info, People, Seller Info, economy

RISMEDIA, April 17, 2010—BBVA Compass recently released a new survey on first-time home buyers indicating that, prior to purchase, a vast majority of first-time home buyers (88%) believe they have accounted for all expenses related to owning a home. Seemingly contradicting that notion, amongst those who had purchased a home in the past 12 months, just over half indicate the expenses were more than they had calculated, causing a change in lifestyle. These results came from the BBVA Compass First-Time Home Buyers Online Survey which polled American consumers about the thoughts, emotions and hurdles related to owning and enjoying a first home.

Regarding potential first-time home buyers, key findings included:

-Nearly one third have anxiety over the affordability of owning a home.

-7 in 10 indicate that the first-time home buyer’s tax credit has not truly factored into the timing of when they decide to purchase a home.

-92% of respondents indicate that having additional time before their first payment due date would be helpful.

Regarding first-time home buyers who have purchased a home in the previous 12 months, key findings included:

-51% indicated that the monthly expense of owning a home was more than they calculated.

-Although 7 in 10 respondents said that the unexpected expenditures leveled out over time, another 87% said they changed their lifestyle as a result of the additional expenses.

-Nearly one third indicated that they paid for these unexpected expenditures with a mixture of cash and credit, perhaps indicating a lack of liquid funds.

“Owning a home is still the definition of the American Dream,” said Shelaghmichael Brown, BBVA Compass senior executive vice president and head of Retail Banking. “Yet, while the dream is alive and well, the expenses associated with owning a home can be surprising. As a financial institution, BBVA Compass is committed to educating consumers—with clarity and transparency—on the true costs of homeownership.”

Also among the findings of the BBVA Compass First-Time Home Buyers Online Survey was information related to the actual process of purchasing a home. Potential first-time home buyers indicated that when looking for financing on their new home purchase, the item that will be most important to them, but likely also the most confusing aspect, is understanding the process. Ultimately, the first-time home buyer is seeking someone who will provide clarity through each step of the process, from loan options to factors that might affect the rate obtained.

Both segments of first-time home buyers were also overwhelmingly in favor of mortgages that allow breathing room between closing and the due date of the first payment. With this financial cushion, the first-time home buyer indicated that they would be in a better position to pay off credit cards and other bills, as well as make some of those unexpected purchases (household items and improvements) that come along with owning a home.

“Obtaining a mortgage can be a very confusing and expensive process, particularly for the first-time home buyer,” said Jon Mulkin, executive vice president and director of consumer asset products. “The more clarity, transparency and help in making the financial transition from renter to buyer that banks can provide, the better positioned the consumer will be going into long-term homeownership.”

For more information, visit http://www.bbvacompass.com.

Michael Saunders and Company Agents find the most buyers for Longboat Key Homes

2010-04-03T09:16:00.000-04:00

If selling your home or condominium is high on your agenda in 2010 here are some important facts you should know.

Any licensed brokerage is capable of listing your property. But only one is the undisputed leader in finding buyers for homes on Longboat Key. Michael Saunders & Company.

The proof is in the performance. Based on dollar volume sales over the past 12 months—as recorded by the Mid Florida MLS and published by the leading independent real estate tracking firm TRENDGRAPHIX—agents from Michael Saunders & Company bring buyers to Longboat Key property sales nearly twice as often as their next closest competitor.

As the below bar graphs depict, this phenomenon holds true across all price ranges; but becomes noticeably more dramatic as the price range increases. For properties $1 million and up, our agents furnish buyers more often than our next four closest competitors combined.

Before you list your Longboat Key property, contact an agent from Michael Saunders & Company. Find out how the region’s largest network of top-producing agents, its most heavily-frequented Web site and unparalleled network of international brokerage affiliations will help you succeed in finding a buyer faster. After all, isn’t that what selling your home is all about?

Lido Key Community Video

2010-04-03T09:04:00.006-04:00

Just over the bridge from downtown Sarasota lie the gorgeous beaches and lush tropical features of LIDO KEY. Some say LIDO affords the perfect place for a short stay or the place to live forever.

LIDO KEY is the beginning and end to many visitors search for the perfect Sarasota lifestyle. The Key offers many beachfront condominiums with magnificent views of the beautiful beaches.

Florida: a mix of different personalities

2010-04-01T09:45:00.001-04:00

A recent piece in the Sunday Times confirmed that British buyers are returning to their favourite destinations to look for second homes in favour of less tried and tested markets. They say “Florida’s property market has collapsed, but with the worst over, it could be time to swoop in the Sunshine State”

The article continues “It’s freezing outside, there are at least a couple more months to go before the weather warms up, and the idea of a holiday home in the sun is probably pretty tempting right now. But Spain’s not hot enough, and the Caribbean and the Seychelles are too expensive. Could Florida be the answer?

Continued...

Siesta Key Video

2010-04-01T09:36:00.001-04:00

SIESTA KEY is one of the area’s largest islands and is filled with a varied collection of neighborhoods, each with its own individual flavor. At one point, you’ll discover grand bayfront mansions. From mid Siesta to the south end, you will find condominiums and villas interspersed among single family neighborhoods both on the bay side and gulf side.

5 Good Reasons to Sell Your House NOW

2010-03-27T22:53:00.000-04:00

by Steve Harney on March 24, 2010

In Monday’s blog, 5 Good Reasons to Buy That Home NOW!, I discussed why now was the best time to jump in and buy a home. Today I want to discuss why now is also the time to sell a house you own. It might seem contradictory to claim that it is the best time to buy and the best time to sell. But actually both statements are true because of same reason – government stimulus.

The reason more people should be jumping in to buy is because of the Homebuyers’ Tax Credit and low interest rates. Combined these two situations will dramatically lower the ‘cost’ a buyer will pay even if home prices continue to soften.

Selling now makes sense because, once these advantages disappear, there will probably be a drop-off in demand. And we all know that ‘price’ (which the seller is most interested in) will be determined by supply and demand. So let’s go over those 5 good reasons to sell NOW!

1.) The Homebuyers’ Tax Credit will expire next month

Obviously the purpose of the tax credit was to entice buyers to purchase houses. But what will happen to demand once the tax credit ends? Many feel that the program dragged buyers forward. By that I mean that buyers who had planned to purchase later in the year may have moved up their plans to take advantage of the credit. The only question left is how badly will demand drop-off? Less demand usually equates to lower prices. Below is a graph that shows the dramatic reduction in demand after the Tax Credit was initially supposed to expire in late November:

2.) The Fed is about to exit the MBS purchase program The mortgage industry has returned to the standard that every buyer must ‘qualify’ for their mortgage. If interest rates rise, the mortgage payment rises also. As a result, there will be fewer buyers who qualify at each price point.

In yesterday’s post our resident mortgage expert, Dean Hartman, explained that interest rates will rise as we proceed throughout the year. That will have a negative impact on demand.

3.) Many of today’s sales will not create a buyer

In a normal market almost every sale creates another buyer. However in today’s market many of the sales are short sales or foreclosures. They do not create an additional buyer. Again DEMAND DOES NOT INCREASE.

4.) There is a ‘shadow’ inventory of foreclosures coming to the market

There is a large volume of foreclosed properties which are currently being held by banks. In the near future these houses will come to the market at discounted properties. How many? In an article in the Wall Street journal this past week titled How Many Homes Do Banks Have Up Their Sleeves? the following estimates were reported:

Barclays Capital uses foreclosure data from mortgage securities to estimate that there are slightly more than 600,000 homes in the process of foreclosure.

RealtyTrac, which examines public records, estimates the number is closer to 700,000.

Independent housing economist Tom Lawler combines data from Fannie Mae, Freddie Mac, the Federal Housing Administration, Federal Deposit Insurance Corp., and securitization trusts to conclude that there are actually about 500,000.

As these properties come to market there will be an increase in supply of homes. This will create downward pressure on prices.

In addition, more and more families are finding it difficult to keep up with their mortgage payments. And once they fall behind, they are finding it almost impossible to catch back up.

Last week Housing Wire ran an article titled In Housing, a Supply Problem of Epic Proportion . The article reported:

To understand the depth of the problem here: we’ve already got 4.7 million loans either 90+ days delinquent or in foreclosure, according to LPS data.

How do these numbers compare to numbers in the past? Here is a chart from the LPS report showing both foreclosure and delinquency percentages over the last fifteen years:

The 90+ day delinquencies will eventually end in either a foreclosure or a short sale. Again an increased supply of distressed properties can only negatively impact prices going forward.

5.) It isn’t always about the money

If you are considering whether or not to sell your home there must be a reason. Perhaps it is time to move-up to that dream home on the water. Maybe the time has come to downsize and have the freedom to travel more. Maybe you miss the rest of your family who now live in a different part of the country.

Selling a home should not ONLY be about the money. Sometimes it is about moving ahead in your life and doing the things you want to do or need to do. Don’t let money get in the way of living your life.

What does this mean to you?

If you are thinking of selling your house, consider the theory of supply and demand. After this spring, demand might wane because of the exiting of government support and the supply of distressed properties will probably increase dramatically. Now is probably the time to sell.

http://kcmblog.com/2010/03/24/5-good-reasons-to-sell-your-house-now/

Half-Price homes? Canadians Pounce on the Sunbelt

2010-03-27T22:45:00.002-04:00

From Stella Giudicelli at Moneycorp:

A client of ours whom I talked to today said this article appeared on the front page of his newspaper last week. He said that this article helped him make a decision to buy now, rather then holding off. Once again, the exchange rate is very important for your international clients. Please ask your Canadian clients if we can contact them to discuss this matter. We will give them a much better exchange rate then their banks. It’s worth shopping around!

Click on the link below to read the article:
http://www.yourhome.ca/homes/newsfeatures/article/779603–half-price-homes-canadians-pounce-on-the-sunbelt

2010-03-26T10:04:00.002-04:00

5 Good Reasons To Buy A Home Now

by Steve Harney on March 22, 2010

If you are considering whether or not to purchase a home in the near future, let us discuss why this might be the optimal time to do so. There are five excellent reasons to buy a home now instead of waiting until later. Let's go over them quickly in this post.

1.) The Homebuyer's Tax Credit

The federal government, in hopes of stimulating the economy, has made available to eligible first-time homebuyers a tax credit of eight thousand dollars ($8,000). The tax credit also makes six thousand five hundred dollars ($6,500) available to eligible move-up buyers. This tax credit is scheduled to end this spring. The home in question must be in contract by April 30, 2010 and you must close the transaction by June 30, 2010. To see if you are eligible, you can go to http://www.federalhousingtaxcredit.com/home.html

The Fed has announced that they will be definitely exiting their plan to purchase mortgage-backed-securities. That plan has lowered interest rates on a 30 year fixed rate mortgage by two full percentage points since its inception in October, 2008. [2]Almost every expert believes interest rates will increase immediately once the Fed backs away. Some, like Morgan Stanley, believe rates can return to the seven percent level that existed before the Fed involvement. What can that mean to you? In the adjourning graph, we can see that even if prices continue to soften, the change in interest rates could dramatically increase your monthly costs.

2.) Low Interest Rates Currently Available

The Fed has announced that they will be definitely exiting their plan to purchase mortgage-backed-securities. That plan has lowered interest rates on a 30 year fixed rate mortgage by two full percentage points since its inception in October, 2008. Almost every expert believes interest rates will increase immediately once the Fed backs away. Some, like Morgan Stanley, believe rates can return to the seven percent level that existed before the Fed involvement. What can that mean to you? In the adjourning graph, we can see that even if prices continue to soften, the change in interest rates could dramatically increase your monthly costs.

Find out more about why mortgage rates may soon spike

3.) Location, Location, Location

There is a tremendous selection of properties currently available. More and more buyers are seeing the opportunities that exist in today's real estate market. As more purchasers enter the market, many of the best values (determined by price, location, or both) will be gobbled up first. This is an opportunity for you to purchase that dream house your family has always relished.

As the Washington Post reported [4] last week, waterfront properties are at bargain prices:

For investors, second-home buyers or retirees who have been sitting on the sidelines for years, 2010 may be the time to dive into the beach market. Prices are now almost back to 2001 levels, and buyers previously priced out of this market may now be able to afford their dream home. In addition, the sheer inventory of available homes is quite favorable to a beach buyer.

4.) Real Estate Has Always Been a Good Long Term Investment

Though prices in many markets will continue to feel downward pressure in 2010, in the long term real estate will eventually return to historic returns. Even in the past decade, real estate was a better investment than the stock market as shown by the table below:

5.) The House Is a Home First and an Investment Second

In our culture today we are moving away from extrinsic values (power, money and prestige) and moving back toward more intrinsic values (wanting meaning in our lives). The home has always been a place where friends and family gather to share our live experiences whether at a party or over a simple dinner. We may be too focused on the cost of a house without taking into account the cost of delaying a return to the more fulfilling experiences a home brings with it.

What does this mean to you?

Only you truly know. But if you have a desire to settle down in your own home and enjoy everything that comes with the homeowner experience, this is probably the time to act.

http://kcmblog.com/2010/03/22/5-reasons-to-buy-that-home-now/#more-3445

Sarasota and Manatee Counties: Year over end sales comparison

2010-03-26T09:37:00.008-04:00

In Manatee and Sarasota Counties, sales and pending sales for the month of February continued to paint a picture of sustained recovery across both areas. The number of homes for sale declined by as much as 24% (in Sarasota County) versus last year, while sales were up by as much as 27.2% ( in Manatee County);

*Data courtesy of Trendgraphix

Longboat Key Video

2010-03-22T09:26:00.003-04:00

Between the destinations of Lido Key and Anna Maria Island, LONGBOAT KEY is a fine mix of tasteful luxury and manicured surroundings. Just minutes from the heart of Sarasota, the long and narrow island feels like a secluded community with an elegant flavor of its own.

Home sales are UP

2009-11-25T14:03:00.002-05:00

From Fox Real Estate News - sales are up nationwide based entirely on the increased sales activity in the South! I was checking on local statistics and pending sales are up, closings are up, inventory is coming down. All great information if you've been wondering what the market is doing.

Have an ARM?

2009-10-22T05:33:00.003-04:00

Loved this post from CNN-Money about whether or not you should refinance your ARM. There are good times to make a decision to do that and get with a fixed rate mortgage and conventional wisdom will tell you that you SHOULD go with the stability a fixed rate mortgage offers you. But sometimes its best to wait and that is what I really liked in this article. Everyone's circumstances are different and its not a good idea to assume you should switch. Take a look at where you are, what your terms are, what you might be looking to do in the next 3-10 years, assess your job situation and your children's needs. THEN you are in a better position to make a call on whether or not to refinance.

And when you do - give me a buzz so I can help you find a GREAT mortgage lender!

Really - Still waiting for prices to fall in Sarasota?

2009-10-06T12:59:00.001-04:00

Please watch this from MSNBC's Today Show! Sarasota is the #1 place in the country to be buying a home RIGHT NOW!

Visit msnbc.com for Breaking News, World News, and News about the Economy

Buying Up The Market

2009-10-01T15:10:00.002-04:00

I just simply do not care what people say about the next "foreclosure wave". I think its not going to look like bargain hunters hope it will look like. I am of the opinion that if lenders truly are holding onto a "shadow inventory" (see Wall St. Journal for a series of articles on that) then they are going to be strategic about releasing them and not flood the market which is what it would take to drive prices down with any significance.

So what does the "new" market look like. It looks like this. Properties that are truly distressed and the big bargains are snapped up fast. Cash investors are grabbing them before they hit the market or multiple offers are common. When people are buying and pendings are up - we are getting back to normal and that's just hard data.

So count me happy to see people buying!

Timing is EVERYTHING

2009-09-22T14:15:00.002-04:00

In the life of a Real Estate Agent are the ups and downs of closings. Wow - real pressure cookers! With the mortgage market the way it is (standards are tighter, requirements are tougher etc) getting to closing is more stressful than ever.

So, the last thing we need is anything else to worry about! But in our world, we have had an issue that is worth talking about again - preclosing credit checks.

Buyers get very very excited as they approach the purchase of their home and many times they want all kinds of fun new things to put in it. In their zeal to get moved in as soon as possible, they will go shopping for furniture, for draperies, for a new lawn mower, etc. And so many places offer them "# days same as cash" - offers that are really good deals.

But Don't Do It, Buyers!

Its not a new thing, this preclosing credit check. Its been done forever. But now it can totally shut down a closing - even after the papers are signed but before the transaction is funded. Lenders will run a credit check at the last minute and if there is new credit activity - even inquiries, lenders will pull the financing.

So the best advise is to wait. Wait until you are closed, the papers are signed, the money has been distributed and the keys are in your hands. Then shop. Shop til you drop! Stimulate the economy and make your new home as beautiful as you can!