It seems when we are busier the Fridays arrive quicker. Now that it is late July, temperatures and humidity are keeping the days toasty, while vegetation is growing like crazy, particularly after the quick showers which are more often. The East End had three humdingers this week, accompanied by plenty of lightning. As summer progresses, big clouds make it across the causeway, usually resulting in fabulous colorful sunsets.

I took a quick spin this morning to several of the public beach parking areas to see how busy they are. Only one spot available at Gulfside City Park, a couple free at Lighthouse Beach gulf-side, but no one parked then at the bayside parking areas.

Lighthouse beach this morning 7/21/23.

Sanibel lighthouse 7/21/23

Lighthouse bayside parking beach access 7/21/23.

Working from home much of yesterday, it was astounding to see a crew of workers on the 3^rd story roof of the home across the street from me. They were at it from 7 a.m. to 7 p.m. installing a metal roof in temperatures that knocked me over just walking from air-conditioned home to air-conditioned car. They were back again today also. Those roofers and the many workers helping with recovery sure deserve gratitude.

The SanibelSusan Team is also thankful for the two condo listings that went under contract this week. When checking out the islands’ Multiple Listing Service (MLS) statistics, after a couple of news items below, be sure and note that with this week’s home closings, the number of Sanibel home sales in 2023 surpassed the total number sold in all of 2022. The average sale price may be down because many of the sold properties had damage, but unit volume for homes is up. Now that condo complexes are showing improvement, maybe condo sales will pick up.

Bailey’s General Store

Bailey’s Center demo with Wink news interview 7/21/23

It was posted last night that demolition of Bailey’s Shopping Center began this morning and will take about a week. The historic service station is excluded but will be redeveloped along with the rest of the property. The Bailey family is excited for their future resilient plans to begin, but sad so see the buildings go that have served the islands well for over 60 years. Including earlier locations, Bailey’s has been on the island for over 100 years. (Viewing is only available from the shared-use path. The entire Center is a construction zone and not available for public access. Be cautious as large trucks and equipment will be moving in and out.)

Causeway Update

FL DOT photo of bridge damage post-Ian

More construction news was provided at the July Sanibel City Council Meeting during a presentation by Jennifer Dorning who is the Sanibel Causeway Community Liaison with Florida Dept of Transportation. She opened her talk with some background on the 12’ surge that topped with 8’ waves during the peak of Hurricane Ian. As she shared photos of damage, she highlighted that by Day 7 (Oct 11, 2022) the first convoy crossed and by Day 15 (Oct 19) the temporary roadway was open to traffic.

Today, the temporary roadway continues, and the speed limit remains 20 mph. Delays should be expected until construction is complete, but their goal is for 2-way traffic to continue during daytime hours.

Accomplishments to date include adding armor stone to stabilize sheet piles with 80% of the galvanized steel sheeting in.

An unexpected hiccup was the rare least tern nesting noticed a few weeks ago. DOT is working with SCCF to keep these nesting areas undisturbed.

What is happening now:

·        Armor stone is being delivered and could be as many as 30 trucks a day for the next year. These are the huge stones. They are being barged from Punta Rassa over the water to where they will be installed.

·        Installing buried island sheet piles.

·        Removing traffic railing.

·        Delivery of prep material.

·        Begin new road construction. (This has been delayed awaiting a permit from Army Corps for work that needs to be done in the water.) The new road will be raised 2’.  Hurricane Ian was defined by coastal engineers as a 300-year storm. The new construction will be built to withstand that.

·        Much of the work that is being done now, won’t be seen when the roadway is complete.

What’s next?

·        Continue installing sheet piles. Once Army Corps permit is received, installing piles in water begins.

·        Raise road 2’.

·        Protect sides with mattresses.

·        Bury toe protection.

County advises that the new causeway islands will have free parking and the same amenities as were there before, though some may be in different locations.

Total cost estimated at $285 million with Federal government hopefully to reimburse much of that (though it could take years).

Coming up phases of construction may require more night work and limit causeway traffic to one lane during some of those hours. Expect to see those areas well lit and with flagmen.

Public access to the causeway is prohibited during construction. Expect to see the new roadway approximately 3’ higher than before. It was also noted that the Punta Rassa boat ramp needs repair and probably won’t be open to the public until some time in 2024.

Sanibel City Council Post-Ian Update

At the Tuesday monthly City Council Meeting, City Manager Dana Souza announced what he said was the last formal monthly Post-Ian Update. He said finance updates will continue to be provided during the budget process which runs through the end of September. Below are highlights from his presentation:

Both Building & Planning Departments are settled at 2475 Library Way available to help owners and contractors looking for guidance.

All Sanibel public beach parking facilities have reopened with the last being Lighthouse Bayside Park on June 30. For the parking areas requiring a permit, only Access 4 on West Gulf Dr is still closed.

Parking permit revenues are up, while causeway counts are sluggish compared to 2022. Sunday traffic has been exceeding 4,000 vehicles indicating that more day-visitors are coming. The Chamber of Commerce is working with the County in hopes of convincing them to forgive weekend tolls for a period for those visitors coming to support restaurants/businesses. May be in August, stay tuned.

Debris removal total is up to 2,392,390 cubic yards. All removal registrations have ended, though waterway cleanup continues. Expected to finish by the end of the month. If you notice any water areas needing help, contact Public Works. Note: Waste management (weekly trash pickup) will not pick up construction debris.

Building permits – 5,500 have been issued. Code enforcement efforts are for compliance, but 234 stop work orders have been issued or construction stopped.

Huge thanks were offered to Public Works for their efforts in getting public areas and beach parking open.

Sanibel & Captiva Islands Real Estate

There was no Association of Realtors meeting this week, but our listings sure had action. Below with data from the islands MLS (Multiple Listing Service) are updated summary tables of the residential sales statistics. After that are the activity with our listings this week and that posted in the MLS since last Friday.

Sanibel & Captiva Islands Multiple Listing Service Activity July 14-21

Sanibel

CONDOS

No new listings.

1 price change: Sanibel Siesta #403 2/2 now $734K.

3 new sales: Sunset South #11A 2/2 listed at $599K, Sandpiper Beach #206 2/2 (SanibelSusan listing) listed at $799K, Gulfside Place #318 2/2 (SanibelSusan listing) listed at $1.295M.

3 closed sales: Sundial #I105 1/1 $310,095; Sundial #I104 1/1 $450K, Snug Harbor #122 2/2 $1.575M.

HOMES

6 new listings: 1624 Bunting Ln 3/2 $724K, 5892 San-Cap Rd 3/3 $775K, 1986 Wild Lime Dr 3/2 $859K, 1258 Sand Castle Rd 3/2 $879,900; 5685 San-Cap Rd 3/2 $1.265M; 4355 West Gulf Dr 4/4.5.5 $5.75M.

5 price changes: 1284 Par View Dr 2/2 now $599K, 1535 Centre St 2/2 now $649,555; 1835 Farm Tr 3/2 now $845K, 2042 Wild Lime Dr 3/2 now $849K, 2255 Troon Ct 4/5.5.5 now $3.495M.

3 back on market: 969 Fish Crow Rd 3/2 $845K, 4797 Rue Helene 3/2 $1.348M, 1175 Bird Ln 4/3.5 $4.25M.

6 new sales: 1399 Albatross Rd 3/2 listed at $714K, 4052 Coquina Dr 3/2 listed at $725K, 540 East Lake Rd 3/2 listed at $975K, 1171 Seagrape Ln 3/3 listed at $999K, 1297 Par View Dr 3/2 listed at $1.2499M, 1036 Whisperwood Way 3/3 listed at $1.299M.

7 closed sales: 9421 Moonlight Dr 3/2 $625K, 228 Daniel Dr 3/2.5 $850K, 617 East Rocks Dr 3/2 $950K, 3251 Twin Lakes Ln 3/2 $1.075M, 950 Cabbage Palm Ct 3/2 $1.225M, 513 Lighthouse Way 3/3 $2.1M, 2963 Wulfert Rd 4/6 $3.3M.

LOTS

Nothing to report.

Captiva

CONDOS

Nothing to report.

HOMES

1 new listing: 11517 Wightman Ln 4/3 $3.45M.

No price reductions

1 new sale: 11516 Wightman Ln 5/4.5 listed at $3.75M.

No closed sales.

LOTS

Nothing to report.

This representation is based in part on data supplied by the Sanibel & Captiva Islands Association of Realtors Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy.  Data maintained by the association, or its MLS may not reflect all real estate activity in the market.  The information provided represents the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.

Enjoy your weekend! Susan Andrews, aka SanibelSusan

The Florida rainy season has begun. Last Friday, just after posting my weekly update, there was a brief shower on Sanibel’s East End and another longer downpour on Wednesday evening. Though vegetation and wildlife desperately needed water, the news reported inland flooding and continued damage to many properties still wearing blue tarps, awaiting roof repairs. That rain also unfortunately provided proof that my standing-seam metal roof, inspected and thought to be undamaged from Hurricane Ian, still needs maintenance. It has solar tubes which provide wonderful light in my little ground-level home, but one leaked, so resealing is ordered. Just another hiccup in the recovery process.

Following up on my island travels last week, I also again viewed a few more communities over the holiday weekend. It hardly seemed like a holiday with very few vehicles about, though public beach accesses were busy, and it was nice to see contractors working at several single-family homes. On Monday, I even saw workers at Tantara condos. Otherwise, condo build-back continues to be slow. We are thankful that our condo listings are in pro-active associations, but it has become evident that it will be a long time before many other complexes will be ready for occupancy.

My other observation was that many more homes have been demolished and those lots cleared of debris. Often in the same neighborhood there are other properties that haven’t been touched. Many new homes already are being constructed, an astounding number really and perhaps a sign that the new Sanibel Building Dept is quickly processing permits. There should be an update on that next week during the Tuesday, June 6, monthly City Council Meeting.

Hurricane Season

It’s here again! Yesterday, on June 1, the first day of 2023 Hurricane Season, Tropical Depression #2 got named at 5 p.m. From the northern area of the Gulf of Mexico, forecasters predicted today that it would not have a direct impact on Florida as it travels south and fizzles out.

Tropical Depression #1 was already taken by a storm discovered in post-season analysis, which formed in January.

Sanibel-Captiva Conservation Foundation Update on Sea Turtles

SCCF photo of Sanibel’s first turtle nest 10 years ago, in 2013

“As of May 30, our nighttime sea turtle tagging team has encountered 86 unique sea turtles this nesting season. This includes turtles with existing tags that staff can identify and document, as well as turtles that were tagged for the first time this year. “Sea turtles without tags could be first-time nesters, returning turtles that weren’t encountered by the team in previous years, or turtles that have nested on other beaches that aren’t monitored by nighttime teams,” said SCCF Sea Turtle Biologist Savannah Weber. “We’ve been seeing an average of four or five sea turtles each night, which is nearly twice the average last year at this time.”

“After SCCF applies tags to these turtles — which allows staff and other scientists to see the individual’s nesting and movement patterns — our team also gets the pleasure of “naming” the turtle. Themes in past years have included shells, ice cream flavors, spices, and Pokémon. This year, the theme is female musical artists. “Some of the names we’ve given turtles include Tina Turner, Fergie, Gwen Stefani, Reba McEntire, and Dolly Parton,” Weber said.

“Previously tagged turtles seen this year have included frequent nesters such as Venus and Conch, who have been encountered every one-to-two years since 2016. Staff were also pleased to see the return of Junonia, a satellite-tagged loggerhead who has nested on Sanibel for six of the past seven years.

““Generally, sea turtles exhibit ‘natal homing,’ which means nesting females will lay nests near the same beach they hatched from,” Weber said. “Some turtles have very precise natal homing, where they lay nests within a few miles from the exact spot of beach from which they hatched. Others have more general homing, where they may lay anywhere within the general region of where they originally hatched.”

“Since SCCF’s tagging project began in 2016, staff have encountered over 950 unique individual sea turtles. Over 350 sea turtle nests have been laid on Sanibel and Captiva Islands this season.”

SCCF Also Reports Bald Eagle Chicks

“A total of nine bald eagle chicks fledged this year on Sanibel, Captiva, and North Captiva, despite Hurricane Ian wiping out all known nests. With the help of partners and volunteers, SCCF monitors bald eagle nests on the islands during the nesting season (Oct. 1 to May 15) and reports data to the Audubon Society’s Eagle Watch Program.

““It was a challenging season for bald eagles, but they wasted no time rebuilding their nests and laying eggs,” said SCCF Shorebird Technician Aaron White. “Rebuilding is a particular feat for bald eagles, which typically re-use and build upon the same nest year after year.”

“Among the 10 breeding pairs SCCF monitors, seven successfully nested and fledged chicks. Two pairs didn’t renest, while one nest failed due to an unknown cause. “The eagles really bounced back from Hurricane Ian, and we’re hopeful the rest of the nesting wildlife across the islands will do the same,” White said.”

Impacts of Ian Advance Restoration of Grasslands

Also in their recent update, SCCF posted: “The current clearing of dead vegetative debris that created a fire hazard on many SCCF preserve lands will have the long-term effect of accelerating the restoration of native habitats.

“”State contractors are doing their best to maneuver through the habitats with minimal disturbance to living native flora,” said Wildlife & Habitat Management Director Chris Lechowicz.  The dead trees and shrubs created a fuel load that increased the chance of wildfires. “Removing them will provide native grasses and ground cover plants an opportunity to take hold again from remaining seed sources in the ground and from any plantings we do to fill in the areas,” he added.

“Prior to development, Sanibel was mostly a vast open canopy grassland that was kept in that state by wildfires and a hydrology that limited freshwater to the center of the island along the Sanibel Slough during the long dry season. Historical aerial photographs show that buttonwood, a freshwater-loving tree in the white mangrove family, bordered the Sanibel Slough because it was the wettest part of the island. “Historically, natural wildfires would consume young buttonwoods that attempted to establish outside of this buffer of the river on higher land,” Lechowicz said.

“In the early 1990s, the City of Sanibel adopted a weir control policy to better manage surface water on the island. The objective of the policy is to attempt to retain as much fresh surface water as possible for the environmental benefit of the interior wetlands as long as developed areas are not adversely impacted.

“The weir system allows the water level to be kept higher on the west end of the island as opposed to the east end because there are more conservation lands and less developed areas west of Tarpon Bay Road.

“Post-Ian, saltwater inundation of the freshwater wetlands caused highly brackish water to stand for long periods of time. As a result, woody vegetation had higher mortality on the west end because the salty water inundated those root systems longer. “The storm surge seemed to ‘turn back the clock’ slightly by decreasing living hardwood densities that overtook the expansive grasslands we once had,” said Lechowicz.”

Floridians a Bit More Confident in May

Posted on Florida Realtors Wednesday, May 31 by Kerry Smith:

“UF: After a drop in April – the only one in 2023 so far – Floridians’ consumer outlook rose modestly again in May as the state bucks national trends.

“GAINESVILLE, Fla. – Florida continues to defy national trends. According to the monthly consumer sentiment study from the University of Florida’s (UF) Bureau of Economic and Business Research, consumer sentiment among Floridians inched up one-tenth of a point in May to 68.8 from a revised figure of 68.7 in April – the only month so far this year that saw a decline. Nationally, consumer sentiment fell 4.3 points.

““Despite the ups and downs in consumer sentiment observed over the last 12 months, Florida’s consumer confidence has trended upwards, with a notable increase of 8 points in May compared to a year ago,” says Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research. “This positive trend is consistent with a strong labor market and aligns well with the general decline in inflation levels since its peak in June,” says. “Nonetheless, it is worth noting that consumer confidence continues to remain at historically low levels.”

“Among the five components that make up the full index, three increased and two decreased.

 “Current economic conditions: Floridians’ opinions about current economic conditions portrayed a slightly more optimistic outlook in May. Views of personal financial situations now compared with a year ago increased slightly by nine-tenths of a point from 62.6 to 63.5. Similarly, opinions as to whether it’s a good time to buy a big-ticket household item such as a refrigerator or furniture increased 1.7 points from 59.6 to 61.3.

 “Future expectations: The three components focusing on Floridians’ attitudes about the future were mixed. Expectations of personal finances a year from now decreased slightly, three-tenths of a point, from 83.6 to 83.3. On the other hand, expectations about U.S. economic conditions over the next year increased slightly – three-tenths of a point from 66.3 to 66.6 – but the outlook for U.S. economic conditions over the next five years dropped 2.6 points from 71.7 to 69.1.

“Florida’s labor market has remained robust, with strong demand for workers and a consistently low unemployment rate, according to the report. In April, the state’s unemployment rate held steady at 2.6% for the fourth consecutive month, which is lower than the national rate. Moreover, the leisure and hospitality industry showed the largest percent change in job gains over the year, experiencing an increase of 7.3%.

““Despite concerns about persistent inflation, the recent turmoil in the banking sector and the possibility of further interest rate hikes, we anticipate that consumer confidence among Floridians will continue to trend upward in the months ahead,” says Sandoval. “This is based on the expectation that Florida’s tourism industry will experience an increase in demand during the upcoming summer season.”

“Sandoval adds a caveat, however, saying that outlook “may change drastically if the debt-ceiling standoff fails to be resolved and payments on U.S. government debt are not made.”

“The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.”

Sanibel & Captiva Islands Real Estate

There was no Sanibel & Captiva Islands Association of Realtors meeting this week, but next Thursday morning is a Caravan Meeting at BIG ARTS.

Below with data from the island MLS (Multiple Listing Service) are updated summary tables of the residential sales statistics and the action posted since last Friday in the MLS.

Sanibel & Captiva Islands Multiple Listing Service Activity May 26 – June 2

Sanibel

CONDOS

1 new listing: Sanibel Siesta #403 2/2 $759K.

No price changes.

1 new sale: Seashells #33 2/2 listed at $435K.

2 closed sales: Blind Pass #F210 2/2 $560K, Loggerhead Cay #412 2/2 $740K.

HOMES

2 new listings: 1446 Sandpiper Cir (1/2 duplex) 2/2 $679K. 766 Donax St (duplex) 4/2.5 $799K.

3 price changes: 658 Donax St 3/2 now $699K, 9114 Mockingbird Dr 3/2 now $999K, 540 East Lake Rd 3/2 now $1M.

6 new sales: 1044 Sand Castle Rd 3/2 listed at $724.9K, 617 East Rocks Dr 3/2 listed at $998,995; 3311 Twin Lakes Ln 3/3 listed at $1.143M, 425 Lake Murex Cir 3/2 listed at $1.19M, 3205 Twin Lakes Ln 3/2 listed at $1.245M, 5750 San-Cap Rd 3/2 listed at $1.75M, 450 Sea Walk Ct 4/3.5 listed at $2.225M.

5 closed sales: 1720 Middle Gulf Dr 3/2 $810K, 1565 Bunting Ln 3/2 $890K, 3050 West Gulf Dr 3/2.5 $1.43M, 1057 Seahawk Ln 3/2.5 $1.5M, 1520 Angel Dr 4/4.5 $3.03M.

LOTS

No new listings or price changes.

1 new sale: 1872 Middle Gulf Dr listed at $799K.

1 closed sale: 2563 Coconut Dr $1.25M.

Captiva

CONDOS

No new listings, price changes, or new sales.

1 closed sale: Marina Villas #906 2/2 $1.15M.

HOMES

1 new listing: 1101 Tallow Tree Ct (1/2 duplex) 4/4 $4.95M.

No price changes, new or closed sales.

LOTS

Nothing to report.

This representation is based in part on data supplied by the Sanibel & Captiva Islands Association of Realtors Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy.  Data maintained by the association, or its MLS may not reflect all real estate activity in the market.  The information provided represents the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.

Enjoy your weekend, Susan Andrews aka SanibelSusan

As the Memorial Day weekend arrives, it is another sunny summer-like day on Sanibel with more of the same weather expected through the holiday (mid-80’s days, low 70’s nights). Islanders continue to anxiously await precipitation as inland communities and the East Coast have already seen the start of rainy season. This is the time of year when we often can see big white popcorn clouds across the bay on the mainland, but joke that they can’t afford the bridge toll to come to Sanibel.

Today, following lunch with a colleague at Rosalita’s (corner of Rabbit Rd and San-Cap), she said, “we’d better hurry, I think it’s going to rain.” There were a few drops on our vehicles, but from there, I took a leisurely drive along the Gulf Drives heading home looking for restoration progress at condos along the way. Other than a couple of brief sprinkles on the west end, there were no showers and nary a drop at my home on the east end.

Concerning activity at condo complexes, it was much the same as last week with workers noticed (mostly roofers) at only a few complexes including Sanddollar, Spanish Cay, Sundial East, Sunset South, Compass Point, Shorewood, Loggerhead Cay, Sanibel Arms West, and Sanibel Arms. For it being just 1 p.m. on a workday, I had hoped to see more action. It is becoming obvious that it will be many months before some of these communities are operational again. With it being the Friday of a holiday weekend, I also expected to see more vehicles on the roadways.  Other than three debris removal vehicles, I saw only a handful of trucks/cars.

On a personal note, my second week back living on the island was even better than the first. As I continue to witness how slowly recovery continues for others, I am sooo thankful to be back home.

The Green Flash

Our server today at Rosailta’s looked familiar. When I asked, she said that she worked at The Green Flash for 25 years. That reminded me that I saw a post on social media this week about that Captiva restaurant. It says “Hello Flash Friends, It’s been a while for an update and we apologize we have been a little busy rabbit. We have heard the rumors and they are 100% false. We will be reopening. The roof has finally been repaired so we can start work on interior items. The date for the reopening will in mid/late September, we have picked a very special weekend to reopen for everyone. Stay tuned for more details and updates on progress of bringing the beloved Green Flash Restaurant back to life. Thank you to everyone that has reached out with love and support.”

The Community House

The Sanibel Community Association also posted a facility update this week. They divided their rebuilding into three phases and currently are working on completing Phase 1 which opens their doors again for meetings, classes, and small gatherings. Contractors also have begun Phase 2. (Phase 1: lobby, offices, bathrooms, and Islander Room; Phase 2: Great Hall, Community Room, kitchen; Phase 3: Founders Historical Room).

They have already announced that the Rotary Club of Sanibel-Captiva will be holding their weekly meetings at The Community House again beginning Friday, June 16. Jerry’s is partnering with them in providing breakfast for the meetings.

Also, beginning Monday, June 19, 10 a.m. to 1 p.m. the original Sanibel Island “Shellcrafters” will be there weekly. These Monday shell crafting classes are free. Participants just pay for supplies (usually between $5-10.) Items will also be for sale, with sales benefiting the operation of The Community House.

South Seas Island Resort

While the resort remains closed, it was announced that the Yacht Harbour Marina is open to dock and fuel up. It also offers ice, water, and snacks. Make reservations at 855-777-3625.

Tarpon Bay Explorers

The J.N. “Ding” Darling National Refuge recreation concession will be offering a 25% discount to any Lee County resident for kayak, stand-up paddleboard, and Hobie fishing kayak rentals June 1 through August 31. “We want people to experience the Refuge and all its beauty,” said Managing Partner Wendy Schnapp. “The bay is a new version of beauty. Though the mangroves are not as lush, the trail is peaceful, clear, and fully accessible. We still see great wildlife daily. Manatees are regularly in our harbor. We hope locals take advantage of the discount and support us, the Refuge, and the island in general.”

Current Tarpon Bay Explorer hours are 8 a.m. to 5 p.m. Monday, Wednesday, Friday, and Saturday (last rentals at 3 p.m.).

Risk Rating 2.0 Takes Effect: What to Know

If you have questions about the National Flood Insurance Program’s new pricing methodology, below is a recent update posted on-line from the National Association of Realtor’s Insurance Committee chair, Cyndee Haydon, who is from Tampa.

“Q: What Is Risk Rating 2.0? A: When developing flood insurance prices, the NFIP now rates each home individually—rather than by zone—using modern technologies, multiple flood risk variables and property-specific characteristics, including elevation, distance to water and cost to rebuild. A third of flood insurance policyholders are paying a full-risk rate while others are paying a subsidized rate that is gradually increasing to full risk over time. The new methodology does not affect flood mapping or the federal mandate to purchase flood insurance.

“What’s Happening Now? All NFIP policies have transitioned to Risk Rating 2.0 as of May 1, and there have been no reports of delays or disruptions to home sales. In fact, Risk Rating 2.0 can help real estate pros build trust with clients because it helps buyers understand the true actuarial rate over time before they purchase. The rollout of Risk Rating 2.0 has been surprisingly smooth, considering it’s the first major update to NFIP pricing in 50 years.

“Why Were These Changes Needed? After the passage of the Biggert-Waters Act in 2012, REALTORS® uncovered many problems with the previous flood insurance rating methodology, which had not been updated in a half-century. Risk Rating 2.0 was established as a result and provided much needed updates based on actuarial risk, science and common sense.

“Here’s one example: Under the old methodology, an NAR member was quoted an annual rate of $87,000 for flood insurance on a $300,000 home. NAR asked FEMA and independent actuaries how the rate could be so high for the property, a modest home that never flooded, and no one could explain it. Under Risk Rating 2.0, FEMA now uses science to cap the maximum possible NFIP rate at $12,125 per year, which only a few high-value, high-risk property owners would pay. For that same $300,000 home, flood insurance now costs only $1,247 under the new rating system.

“Because pricing in the old methodology was based on national flood zones, older and low-value properties subsidized new, high-value properties. NAR’s Insurance Committee collaborated with FEMA and funded an independent actuarial study to help propose a solution. As a result, Risk Rating 2.0 ensures that each property owner pays for only their own individual risk and no one else’s.

“Risk Rating 2.0 also provides consumers with full disclosure on flood insurance rates. After the Biggert-Waters Act, I helped clients whose rates jumped over $10,000—and they were required to pay it in one lump sum after buying a home. Believe me, you don’t ever want to have to take calls like this from former clients. I didn’t sleep until Congress rolled back and put the rates on a glidepath with the Flood Affordability Act of 2014, which, unfortunately, was only a temporary measure. Risk Rating 2.0 provides a permanent solution, giving new NFIP policyholders the science-based, actuarially sound, full-risk flood insurance rates upfront before they purchase.

“Why Do Some Say NFIP Rates Have Doubled or Tripled? Rates have not doubled or tripled anywhere in the United States. Some media reports are taking out of context a FEMA projection of what the average full risk rate might look like given today’s conditions.  However, those are not actual rates paid by two-thirds of policyholders, and by law, rates cannot increase more than 18% per year.  Also, flood risk is dynamic: Many factors can impact the current projection, including future changes in climate, inflation and the policyholder population. What FEMA data shows is: 1) most policyholders are not paying a full-risk rate and 2) it will take at least five to 10 years before they do if all things stay the same.

“What’s Next?

Now that Risk Rating 2.0 is in place, NAR’s Insurance Committee is turning its attention to other priorities, including:

• NFIP reauthorization.Congress has passed two dozen short-term extensions while continuing to debate meaningful, bipartisan reforms for accurate mapping, affordability through risk mitigation and private flood insurance options. REALTORS® are urging Congress to pass a long-term reform and reauthorization measure that brings stability to real estate markets.
• Climate financial risk.Risk Rating 2.0 is only one example of a federal agency complying with an executive order to underwrite climate risk. Other federal agencies are currently evaluating their exposure to climate risk, which could have significant implications for federal mortgage loan programs, including Fannie Mae and Freddie Mac.
• Hazard Insurance.Most insurance policies cover typical disasters except floods and earthquakes. Rising costs are the number one insurance-related issue in many states, including Florida and Louisiana, and NAR’s Insurance Committee is working to develop a handbook to educate consumers.”

Sanibel & Captiva Islands Association of Realtors

Yesterday, at the monthly meeting of the local Association of Realtors©, Florida Realtors Chief Economist Dr Brad O’Connor provided a Residential Market Update for Lee County. Though not specific to just the islands, he said that the county has seen many of the same trends as the state overall.

For example, what is bolstering home buyer demand? Florida still is a hot place to be right now but in-migration probably is slowing somewhat. Florida is an ideal location for “untethered” remote workers.  In Florida, housing overall is more affordable and spacious relative to Northeast and West Coast and job growth is solid.

Looking at population, Florida has experienced an increase of over 400K+ residents in a single year, with Florida 2^nd only to Texas in growth. That’s over 1,100 new residents per day.

Out-of-state driver’s license exchange statistics continue to show that most new Lee County residents come from New York, followed by Illinois and Ohio, then New Jersey, Pennsylvania, Michigan, Massachusetts, Minnesota, and California.

The median price of closed existing home sales was up 55% in April 2023 compared to 2020, down just a little from the same month last year.

Below with data from the island MLS (Multiple Listing Service) are updated summary tables of the residential sales statistics specific to the islands and the action posted since last Friday in the MLS. There was little sales action this week, with just two Sanibel homes under contract and one Captiva condo. As mentioned before, that slowdown is usual for this time of the year before summer vacations begin.

Sales Scoop

Sanibel & Captiva Islands Multiple Listing Service Activity May 19-26

Sanibel

CONDOS

1 new listing: Heron at The Sanctuary 1 #2A 2/2.5 $1.14M.

1 price change: Lighthouse Point #232 3/2 now $929K.

No new sales.

2 closed sales: Blind Pass #B208 2/2 $590K, Snug Harbor #121 3/2 $1.65M.

HOMES

4 new listings: 1643 Bunting Ln 2/2 $799K, 1241 Par View Dr 3/2 $799.5K, 754 & 756 Donax St duplex 4/2 $1.249M, 1067 Sand Castle Rd 4/2 $1.395M.

7 price changes: 1399 Albatross Rd 3/2 now $714K, 228 Daniel Dr 3/2.5 $995K, 425 Lake Murex Cir 3/2 $1.19M, 235 Palm Lake Dr 3/2 $1.355M, 1202 Sand Castle Rd 4/2.5 $1.629M, 896 Limpet Dr 3/3 now $2.15M, 963 Kings Crown Dr 3/3 now $2.299M.

2 back on market: 4752 Rue Helene 2/2 $699K, 513 Lighthouse Way 3/3 $2.295M.

2 new sales: 1105 Skiff Pl 3/2 listed at $895K, 5294 Umbrella Pool Rd 3/2.5 listed at $1.379M.

5 closed sales: 465 Lake Murex Cir 2/2.5 $645K, 1526 Bunting Ln 5/3 $690K, 1300 Par View Dr 3/2 $1.075M, 926 Lindgren Blvd 3/2 $1.35M, 1224 Buttonwood Ln 3/2.5 $1.425M.

LOTS

3 new listings: 1653 Bunting Ln $499K, 711 Cardium St $649.9K, 2651 Coconut Dr 1.395M.

No price changes, new, or closed sales.

Captiva

CONDOS

No new listings or price changes.

1 new sale: Bayside Villas #5302 3/3 $995K.

1 closed sale: Beach Cottages #1411 3/2 $1.45M.

HOMES

2 new listings: 17170 Captiva Dr 2/2 $3.25M, 11535 Murmond Ln 3/3.5 $3.495M.

No price changes, new or closed sales.

LOTS

Nothing to report.

This representation is based in part on data supplied by the Sanibel & Captiva Islands Association of Realtors Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy.  Data maintained by the association, or its MLS may not reflect all real estate activity in the market.  The information provided represents the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.

Enjoy your weekend,

Susan Andrews, aka SanibelSusan