Sanibel and Captiva had another touch of island-style winter yesterday with temperatures barely out of the 60’s, but with bright blue skies and a fairly stiff breeze. It has been more of the same is today, then expected to be back to the high 70’s tomorrow, until the next mini-chill arrives. This time of the year, temperature changes often are the residual effects from pre-spring storms in the northeast.
Yesterday at the islands’ Association of Realtors® morning caravan meeting, more sales were announced followed by comments like “the market was late in getting rolling this winter”. Often the most island sales activity is from mid-January to Easter, but for some reason, this year that action picked up late. With Easter early this year, March could quickly make up for lost time. The recent snowstorms probably will help.
With just three weeks of high season left, plenty of price reductions were announced at yesterday’s meeting too. The above photos are the views from our listing at Mariner Pointe #1061 (price just reduced to $549,900). (More info and streaming video under the “Search SanibelSusan Listings” tab above.)
Rumor has it that the first car transport recently was spotted, that’s usually a sign that the first group of snowbirds are about to take flight.
The action posted since last Friday in the Sanibel & Captiva Islands Multiple Listing Service follows a couple of news items below. The first was posted on line today at FloridaRealtors®. Their source is Copyright © 2018 The Kiplinger Washington Editors, Pat Mertz Esswein. Though lengthy, it’s worth the read.
What Will Happen With Home Prices This Year?
“New Jersey is the poster child for the high-cost, high-tax states where housing markets – and homeowners – are supposed to suffer under the new tax law. Patrice and Kalvin Sosoo, of Teaneck, N.J., have a toddler, Kingsley, and a baby on the way, so they’re in the market for a larger place. But the Sosoos aren’t deterred by the new rules, even though housing costs for their next home are likely to be higher.
Under the new law, homeowners with existing mortgages taken out before Dec. 15, 2017, can continue to deduct interest on up to $1 million of mortgage debt. After that date, the limit for all “acquisition debt” – money used to buy, build or substantially improve a home – falls to $750,000. The deductibility of interest on home-equity loans or lines of credit, old or new, that are used for other purposes – such as paying for a vacation, a car or a college education–disappears. Plus, the deduction for state and local taxes, including property taxes, will be capped at $10,000.
“While living in their first home, the Sosoos itemized deductions on their federal tax return, including $11,000 in annual property taxes. The Sosoos have set a price limit of $700,000 on their next home, so they will still be able to deduct all of their mortgage interest. But they’ll take a major hit on the deductibility of their state and local taxes; they estimate that property taxes alone will run them about $15,000 annually.
“Taxes here are crazy, and the $10,000 limit kind of hurts,” says Patrice. But when they file their taxes for 2018, a tax-rate cut and the higher standard deduction could offset at least some of the loss in state and local tax deductions.
Limited damage
“The new law raises the standard deduction to $12,000 for single filers, $18,000 for head-of-household filers and $24,000 for married couples who file jointly. That may make the limits on deduction of mortgage interest and state and local taxes a moot point for many homeowners, who will benefit by switching from itemizing to taking the standard deduction.
“And despite the agitation that followed passage of the tax law, the changes will affect relatively few homeowners. In 2017, about 100,000 home buyers, or just 3.9% of all buyers nationally, took out a mortgage that exceeded $750,000, and they’re mainly concentrated in the Bay Area of California and the New York metro area, according to ATTOM Data Solutions, which analyzes property data.
“ATTOM also found that 4.1 million homeowners, or 4.4% of all homeowners, paid more than $10,000 in property taxes, and they’re concentrated in high-tax counties in the Bay Area, Connecticut, Illinois, New Jersey, New York and Texas.
“But high-earners in places with lower property taxes could also hit the limit. Many high-income homeowners who are subject to the alternative minimum tax were already limited to deducting interest only on mortgage or home-equity debt used to buy, build or improve their homes, and they were prohibited from deducting state and local taxes.
What do the changes to the tax law mean for home prices?
“Moody’s Analytics expects the housing market to continue recovering in 2018, the seventh year since the market hit bottom. But Moody’s predicts that by 2019, home prices nationally will be 3.7% lower, on average, than they would have been otherwise.
“The value of tax benefits was baked into home prices in high-cost, high-tax areas, so home prices will rise more slowly as prospective buyers try to contain the after-tax cost of homeownership. Some renters may rent longer or choose not to buy at all. Some buyers will look for less-expensive homes. Sellers of higher-end trade-up homes will feel more pressure to lower their prices.
“There buyers not only will hit the mortgage-interest and tax caps but also will be more likely to take the standard deduction and discontinue itemizing, especially if they have no other sizable deductions besides housing costs, says Andres Carbacho-Burgos, a housing economist at Moody’s Analytics.
“High-cost counties that will see home-price appreciation slow are concentrated on the West Coast, in the largest metro areas of Texas, in Chicago, and in the states from Massachusetts to Virginia. New Jersey is the worst case because it has the highest average property tax rate of the 50 states and the largest share of high-tier markets. Moody’s figures that by mid-2019, New Jersey’s home prices will fall by 2% from the year before.
“The trend of people moving from high-cost to lower-cost states will accelerate, says Lawrence Yun, chief economist at the National Association of Realtors. Home prices will continue to rise in states such as Arizona, the Carolinas, Colorado, Florida, Nevada, Texas and Utah as more people move in than out. But prices in Connecticut, Illinois, New Jersey and New York will decline as more people leave.
Home prices around the U.S.
“Prices increased nationally by 5.4% in 2017, compared with 5.8% in 2016, according to Clear Capital, a provider of real estate data and analysis. Jobs fueled demand from millennials and Generation Xers, who competed for a dearth of starter and trade-up homes and drove up prices.
“Home values rose in 269 of the 299 cities tracked by Clear Capital, going up by double digits in about one-seventh of them. With the exception of San Jose, Calif., epicenter of the tech boom, the places with the biggest gains were mostly smaller cities on the West Coast, in the Mountain states or in Florida that are attracting buyers priced out of larger cities nearby or have thriving economies. The cities where prices lost ground have moribund economies. They’re mostly located in Upstate New York, the Rust Belt and the South.
“CoreLogic, a financial data and analytics company, forecasts that prices will rise by about 4% in 2018, reverting to their historical pace. Frank Nothaft, chief economist at CoreLogic, says that in late 2017, CoreLogic analyzed home prices in the largest 100 metro areas and found that about one-third of them were overvalued by 10% or more, based on the long-term relationship between income and home prices.
“Are they in bubble trouble? “No,” says Nothaft. “It’s more an amber warning light indicating erosion of affordability.”
“Nothaft says historically low mortgage rates have helped to mask declining affordability, and when rates edge up in 2018, affordability will erode, adding to the potential for a slowdown in sales and price appreciation.
An unbalanced market
“The U.S. homeownership rate reached 64.2% in 2017, and it’s on a sustainable upward track, according to the U.S. Census. (The homeownership rate peaked at 69.2% in 2004.) Throughout 2017, the number of new homeowners exceeded the number of new renters, and first-time home buyers accounted for nearly one-third of all home sales. Millennials are making their first foray into ownership, and Gen Xers are transitioning from renting back to owning, says Yun. But until the inventory of new and existing homes increases, many would-be first-time buyers will be forced to continue renting.
“Existing homeowners are staying put longer than ever, and the share of repeat home buyers fell slightly between 2016 and 2017. Many homeowners would like to sell, but they fear they won’t be able to find another home they want. Others don’t want to give up their cheap mortgages.
“New homes are the key to unlocking the inventory stalemate, and with more new homes coming to market, the acuteness of the overall housing shortage is past, says Yun. “This year won’t be as bad for buyers as 2017, but it won’t be back to normal, either,” he says.
“As the housing market approaches the spring sales season, one thing is sure: Most people buy or sell homes for reasons other than tax benefits. “They’re getting married, having kids, or they’ve changed their jobs, or they’re retiring,” says Ralph McLaughlin, chief economist at Trulia, an online real estate marketplace. “The tax benefits are of less importance to them.”
“Mortgage outlook: Rates will ratchet up
“The 30-year fixed rate has lingered at about 4% or less since mid-2011, but this is the year mortgage rates will begin to rise from historic lows. The Federal Reserve is all but certain to continue ratcheting up short-term rates, and yields on 10-year Treasuries, which are tied to the 30-year mortgage rate, have already jumped. In early February, the national average 30-year fixed rate was 4.2%, according to Freddie Mac. By the end of 2018, Kiplinger expects the 30-year fixed rate to hit 4.5% and the 15-year fixed rate to reach 4.2%, up from 3.7% in early February.
“Borrowers who have a FICO credit score of 720 or higher and a down payment of at least 30% will get the best rates. Lenders will look at your whole credit profile, however, and consider factors that will offset risk, such as making a larger down payment or having other assets, says Guy Cecala, publisher of Inside Mortgage Finance. You still must be prepared to produce heaps of documentation of your income and assets and answer persnickety questions.
“With rising home prices and increasing equity, homeowners who haven’t refinanced yet could still snag a low fixed rate. As rates rise, 5/1 and 7/1 adjustable rate mortgages, which lock in a lower rate for five or seven years and then default to a one-year ARM, could gain popularity. Rates on jumbo loans (with a loan amount of $453,100 or more or, in high-cost areas, $679,650 or more) may be even lower than on conforming loans, says Cecala.
“When you shop, include an independent mortgage broker or two along with your bank or credit union and nonbank lenders such as Quicken, Caliber Home Loans or LoanDepot. Brokers may be able to find a cheaper deal through their wholesale channel than you could by approaching lenders directly.”
Congratulations to Shell Festival Winners
The island papers this week include the “Ribbon Report” from the 2018 Sanibel Shell Show. It was great to read of that some of our friends, clients, blog followers, and chorus pals won awards!
- Dianne Reich’s sailor’s valentine received a 2nd place ribbon.
- Cheri Hollis’s shell photo got a 3rd place ribbon.
- Barb Walling’s professional flower arrangement made of shells won a 1st place ribbon. Barb’s professional sea-life arrangement also earned a 1st place.
Congratulations to all who participated.
Upcoming Island Events
35th Annual Sanibel-Captiva Lions Club Fine Arts & Crafts Fair – next week, 3/16 & 3/17 at The Community House across the street from SanibelSusan Realty. Fri 9 a.m. to 5 p.m. Sat 9 a.m. to 4:30 p.m.
The Launch – Sat 3/24 from 6 to 10 p.m., celebrating The Past, Present & Future of Our Coastal Heritage, sponsored by Coastal Keepers at The Sanibel Community House. To make a reservation call (239) 472-8585.
Sanibel & Captiva Islands Multiple Listing Service Activity March 2-9, 2018
Sanibel
CONDOS
5 new listings: Sandpebble #4D 2/2 $439K, Sanibel Moorings #1611 2/2 $509K, Breakers West #A4 2/2 $549.9K, Sundial East #T301 2/2 $845K, Sundial East #P204 2/2 $899K.
3 price changes: Mariner Pointe #1061 2/2 now $549.9K (our listing), Lighthouse Point #321 3/2 now $679K, Loggerhead Cay #163 2/2 now $799,999.
4 new sales: Mariner Pointe #241 2/2.5 listed at $629K, Sundial West #J408 2/2 listed at $679K, Snug Harbor #211 2/2 listed at $769K, Sanddollar #B301 2/2 listed at $1.149M.
2 closed sales: Blind Pass #D101 2/2 $415K, Seascape #202 3/3.5 $2.195M.
HOMES
2 new listings: 9471 Peaceful Dr 3/2 $469K, 330 East Gulf Dr 3/2 $1.15M.
14 price changes: 9225 Belding Dr 3/2 now $449.9K, 225 Daniel Dr 3/2.5 now $719K, 9028 Mockingbird Dr 4/3 now $869K, 3941 Coquina Dr 3/2 now $949K, 5313 Punta Caloosa Ct 4/3 now $965K, 1724 Bunting Ln 3/4 now $975K, 1304 Eagle Run Dr 3/3 now $1.0995M, 824 Birdie View Pt 3/3 now $1.169M, 580 Lake Murex Cir 4/2 now $1.195M, 529 Lighthouse Way 3/3 now $1.22M, 534 N Yachtsman Dr 3/2 now $1.298M, 2857 Wulfert Rd 4/5 now $1.598M, 490 Sawgrass Pl 3/2.5 now $1.675M, 4689 Rue Belle Mer 5/6.5 now $6.995M.
6 new sales: 1625 Sand Castle Rd 3/3 half-duplex listed at $619K, 1342 Junonia 3/3 listed at $669K, 1295 Par View Dr 3/2 listed at $675K, 5757 Baltusrol Ct 3/3 listed at $1.497M, 6021 Sanibel-Captiva Rd 4/3/2 listed at $2.499M, 1304 Seaspray Ln 3/2.5 listed at $4.345M.
3 closed sales: 1943 Sanibel Bayou Rd 3/3 $629.5K, 1307 Par View Dr 3/3 $970K, 1077 Bird Ln 4/4/2 $5.5M.
LOTS
No new listings.
3 price changes: 9226 Kincaid Ct now $159K, 1204 Par View Dr now $329K, 4995 Joewood Dr now $2.495M.
No new sale or closed sales.
Captiva
CONDOS
2 new listings: Marina Villas #803 2/2 $749K, Beach Homes #17 4/3 $3.395M.
No price changes or new sales.
1 closed sale: Beach Cottages #1403 2/2 $1.125M
HOMES
No new listings.
1 price change: 15138 Wiles Dr 6/5.5 now $6.999M.
No new sales.
1 closed sale: 11521 Andy Rosse Ln 7/8 $2.25M.
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.
Until next Friday, Susan Andrews, aka SanibelSusan
38th Annual Kiwanis Spaghetti Dinner – tomorrow night, Saturday, Feb 24, at The Community House, dinner served 4 to 8 p.m. followed by raffles, silent & live auctions, music, & fun. All to benefit island youth. Can’t beat the all-you-can-eat price – $11 at the door, kiddos 9 and under free.
81st Sanibel Shell Festival – next week, Thursday, Friday, & Saturday, Mar 1, 2, and 3 at The Community house. Open 9 a.m. to 5 p.m., except Saturday when it’s over at 4 p.m.
As announced in the “Island Sun” this week, Sanibel Sea School has added seasonal classes for 4- to 6-year olds to the organization’s schedule of field-based marine science learning opportunities. The program will be called Sea Squirts, and will be offered through mid-April. Like the nonprofit’s classes for 6- to 13-year olds, Sea Squirts Day Camps will cover a different topic each week, and activities including crabbing, rock flipping, mud walks, and more… each class will be two hours long. More info and registration at 
“The need for at least one tub is most common among two specific homeowner groups. The first is young families with small children, since many parents consider a traditional tub safer than a shower, says Stephanie Mallios, a sales rep with Coldwell Banker Residential Brokerage in Short Hills, N.J. The second group is luxury home owners whose houses usually have multiple bathrooms….”
It’s SanibelSusan reporting that all’s well on another sunny Sanibel Friday. I won’t mention the traffic which is worse than I ever remember it pre-weekend. It’s been a constant stream of cars tying up Periwinkle, coming onto the island until midday, when it changes to heavy traffic in both directions. From mid-afternoon on, as usual there is extra traffic heading off-island. Last night it cleared up by 6:30 p.m.
We had good action with our listing this week, with several more showings scheduled tomorrow during turn-over in some of the vacation rentals. With the big annual Arts and Crafts Fair across the street from the office both tomorrow and Sunday, we hope for some walk-in business.
Monthly Membership Meeting – Yesterday was the February monthly Membership Breakfast Meeting and Caravan for the local Association of Realtors®. Guest speaker was Julie LePore with FIRPTA Solutions, Inc. FIRPTA is the Foreign Investment in Real Property Tax Act of 1980 and it covers the disposition of U.S. real property interest by a foreign person. I’ve covered it in my updates before, but she mentioned a couple of points many Sellers don’t realize.
FIRPTA – If you are selling real estate in the U.S. and are NOT a foreign Seller, there still is a form required by FIRPTA. These Sellers must sign a Certificate of Non-Foreign Status which indicates that FIRPTA withholding is not required. So, don’t be surprised if the title company handling your closing asks you to sign a form that includes your social security number or tax identification number.
LCEC (Lee County Electric Coop) posted this info in their February “LCEC News”. With most prices increasing, it’s great to hear that LCEC’s electric rates have remained the same. “Rates actually have decreased over the past four years…Even after spending more than $30 million on Hurricane Irma restoration, rates will remain the same for 2018. As a cooperative, LCEC is eligible for partial FEMA reimbursement for disaster recovery….”
Sanibel-Captiva Rotary Club’s 35th Art & Craft Fair – with over 100 artists & food court – tomorrow & Sunday, Feb 17 & 18 at The Community House and Sanibel City Park across the street from SanibelSusan Realty Associations. Open from 10 a.m. to 5 p.m. on Saturday, 9 a.m. to 4 p.m. on Sunday.
Annual Kiwanis Spaghetti Dinner – an island favorite for nearly 40 years, Saturday Feb 24 from 4 to 8 p.m. at The Community House. Funds raised go to island youth education and recreation activities including scholarships. (If you are on-island and need a ticket, give me a call, I know who delivers… just got my ticket today.)
Annual Peek at the Unique – annual fundraiser tours of four unique island residences, hosted by The Zonta Club of Sanibel-Captiva on Saturday Mar 10 from 9 a.m. to 3 p.m. Transportation by air-conditioned buses. Tickets required. More info at zontasancap.com, tickets at Eventbrite or 
Yesterday was the Association’s November general membership meeting, held following an 8 a.m. breakfast at The Sanctuary Clubhouse. Sponsor was Simmons Law Firm. Speaker was Rae Ann Wessel, Sanibel-Captiva Conservation Foundation (SCCF) Natural Resource Policy Director.
Sanctuary Club General Manager & COO, Ken Kouril gave attendees an update on membership. As he said, “if you build it, they will come”.
Rae Ann’s slide presentation included a progress report of the status of the EAA (Everglades Agricultural Area) reservoir which works with the CEP (Central Everglades Project). The project was approved by voters in 2000, but now 17 years later, it still has not been built. She noted an earlier FloridaRealtors® study on how water quality affects real estate values, not just within the Caloosahatchee Estuary area, but also inland.
Annual Sanibel Thanksgiving Celebration – You-know-who is singing with the BIG ARTS Community Chorus. Hope to see you there. Sunday, Nov 19, at 6:45 p.m. at The Community House with music and song. Sanibel School’s Seahorse Chorale also is singing. Free admission, but please bring a donation for FISH of San-Cap.
Here’s a little info about the top ten airlines serving Southwest Florida (from the Oct/Nov 2017 “Gulfshore Business” magazine). All of the airlines mentioned below fly out of Southwest Florida International Airport (RSW), except Allegiant (Punta Gorda Airport). Their number of passengers to Southwest Florida and their headquarters, follow their name.
Happy Thanksgiving!
Tomorrow, Nov 4
One of my favorite economists, Lawrence Yun, posted a good article in the November/December 2017 Realtor® magazine. Though following this topic is like following a moving train, his advice applies regardless of the political outcome.
It’s SanibelSusan, reporting another week of progress on sunny Sanibel Island. More storm debris piles have disappeared, more cars are on the roadways, many of the establishments closed in September have reopened, and the shelling continues to be fantastic.
“Ding” Darling Days – Beginning on Sunday, Oct 15, with “Free Family Fun-Day” including live wildlife presentations, a traveling learning lab, butterfly house, wildlife arts and crafts, free Wildlife Drive admission and tram tours, plus hot dogs. During all of next week, there are birding, biking, paddling, and boating tours, plus special daily programs. It wraps up next Saturday, Oct 21, with “Free Conservation Art Day” where attendees can meet Federal duck stamp artists and enjoy cartooning, nature photography, wood-carving demo. Free Wildlife Drive admission that day too. See full calendar of events at 
Sanibel Historical Village and Museum – Reopens Tuesday, Oct 17, and will be open Tuesdays through Saturdays from 10 a.m. to 4 p.m. Guided tours are at 10:30 a.m. and 1:30 p.m.
Panelists include James Evans, Director of City of Sanibel’s Department of Natural Resources; Dr. Eric Milbrandt, Director of the Marine Lab at the Sanibel-Captiva Conservation Foundation; and Dr. Erhard Jones, an environmental engineer and professor emeritus at the University of Wisconsin.
Each May, our local Association of Realtors® hosts an event long-know by some old-timers as the “Over-the-Hump Party”. It is a fundraising event for the RPAC (Realtor® Political Action Committee) as well as celebration that we again made it through high season.
SanibelSusan’s lobster dinner donation again raised close to $1K and of course I did my share of buying too.
A Happy Mother’s Day to all Moms!
Sanibel & Captiva Islands had another week of good weather and little traffic – or at least until late yesterday when a boat slid off a trailer coming out of Sanibel Harbour onto Summerlin Road just after the toll booth going off island.
As Florida’s legislative session comes to a close, Florida Realtors® Vice President of Public Policy, Carrie O’Rourke, emailed the members of FloridaRealtors® Think Tank (yes, I am one of those) a summary of what she said is “is shaping up to be one of our most successful sessions in recent memory.” Here are some excerpts:
As follow-up to last week’s posting about sea turtle nesting season beginning, the first nest of the season was found Saturday, April 29, near Gulfside Place condos. The nest has been staked off by volunteers from SCCF’s (Sanibel-Captiva Conservation Foundation) Sea Turtle Monitoring Program. Reports say that this year’s first nest is early, but not as early as last year when the first one was found on April 20 on Captiva.
The local Association of Realtors® Caravan meeting yesterday was well attended. Not many sales were announced, but a few more price reductions, and new listings. With high season wrapping up, more sales closed this week, so below is another update based on today’s Sanibel & Captiva Islands Multiple Listing Service data. A report on the activity posted this week follows a few news items.
It was great to hear on Wednesday that the Florida Senate took action to protect Florida’s unique waterways by passing SB 10. This legislation will accelerate the process of building a reservoir south of Lake Okeechobee. Scientists have determined that increased storage, treatment and conveyance of water south of Lake O are essential to stop the damaging discharges to the coastal estuaries.
Happy Easter! from Susan Andrews (aka SanibelSusan)
It was another quick, but busy meeting at the Sanibel & Captiva Islands Association of Realtors® weekly caravan meeting yesterday. I was happy to be one of the sale announcements (our condo listing at Coquina Beach). Also, we already have had good results from announcing a price reduction at Beachcomber #A102. Can’t beat that gulf-front location for $1.445M (photos below)
I bet the Sanibel Library won’t mind if I repeat a few tidbits that I enjoyed from their last mail-out. Always good to get a reminder about what is offered here. It also is a great place to park Sunday mornings for Farmers’ Market.
Good article by Lawrence Yun, NAR Chief Economist, in the March/April 2017 issue of “Realtor®” magazine:
Sunset Sing Cruise – The Sanibel BIG ARTS Ensemble (30 members) is singing aboard Captiva Cruises sunset cruise on Sunday, April 2. This alto is part of the entertainment. A few tickets still are available (call 472-5100 or online at 
Until next Friday, don’t be fooled tomorrow… it’s already spring!