NBC-2 Weather 7-day forecast 01-10-14

The islands this week were back to what is often known as the “more reasonable” early January traffic pattern – a slight lull in volume before it picks up again, usually mid-month.

Rental managers, however advise that their call volume already is up 30% from last January. Guess we all know why that is. Cold northern weather is making Florida look more favorable all the time!

Even after having the heat on two nights in a row this week – which is one night more than 2013 – island temperatures are back today into the high 70’s/low 80’s and expected to continue that way.

Friday Update Became a Blog

This blog evolved as a result of email updates that SanibelSusan Realty sends each Friday afternoon to our Sellers, those who have their properties listed for sale with us. Years ago, after their properties sold, several Sellers remarked that they liked getting these Friday Updates and asked about continuing to receive those emails. It didn’t make sense for them to continue to get showing feedback since they no longer had property listed for sale, but if they were interested in the news items and the Multiple Listing Service activity, I was happy to share.

Since then, clients occasionally send me articles that they think others would like and sometimes they send me photographs too. A visit last week from a family here on holiday, resulted in them sending me some terrific bird photos taken during that trip. So please, check out the below pictures from the Shews. If you have similar articles or pictures to share, I hope that you will consider sending them to me too.

This slideshow requires JavaScript.

Homebuyers Willing to Compromise, But Sellers With Unrealistic Expectations

An article posted on REALTOR®Mag on Monday says:

“Faced with tight inventories of homes for sale, more buyers are realizing they may have to bend a little in order to get the home they want. According to a new survey by the real estate brokerage Redfin, 35% of real estate agents said that buyers are now “willing to pay more” to find a home compared to this summer. About 30% of agents also reported that buyers are more “flexible on features,” held “lower expectations” for how far their money would stretch, and were “looking to new construction” due to inventory constraints. Real estate agents also reported that homebuyers were more “prepared to waive contingencies” in order to win a bid.

“Eighty-seven percent of the Redfin real estate agents surveyed cited “limited inventory” as the biggest challenge that homebuyers face nationwide. While homebuyers may be getting more realistic about market conditions, the survey found that sellers are not. Sixty-three percent of agents said that sellers have “unrealistic expectations” about the value of their home. What’s more, 31% of agents say that sellers also are frustrated with the number of homes available that they would be interested in buying.”

9 Housing Markets Soar to New Price Peaks

A Wednesday article in “Daily Real Estate News” shows how Florida fits into the nation’s real estate recovery picture:

“Home prices nationwide remain 17.6% below peak values reached in April 2006, according to CoreLogic’s latest Home Price Index, reflecting November data. Home prices are about 13.3% below their peak when you exclude distressed sales, such as short sales and REOs. However, 21 states as well as the District of Columbia are back to within 10%of their peak value. What’s more, nine of them reached new price peaks in 2013, according to CoreLogic. Those are: Colorado, District of Columbia, Iowa, North Dakota, Oklahoma, South Dakota, Texas, Vermont, and Wyoming.

“The five states furthest from their peak values are: 

Nevada: down 40.5% from its peak value,

Florida:  down 37.3%,

Arizona: down 31.4%,

Rhode Island: down 29.4%,

Illinois:  down 24.5%.”

The Refuge Begins New Tram Parking

This week, the Ding Darling Wildlife Refuge began its seasonal strategy to improve parking at the Refuge Visitor and Education Center.

Along with Tarpon Bay Explorers, Refuge staff are testing a system whereby tram tourists will still buy their tickets at the Visitor and Education Center Parking lot booth, but then will drive south less than half a mile to the Refuge Special Events Parking Lot to board the 90-minute tram tour. The change will be in effect from January through April.

Sanibel & Captiva Islands Real Estate

We had a few condo listings that were vacant this week, so teammate David held some open houses and we also had a handful of showings. I wrote a couple of condo offers that didn’t make it. One was on a property that got multiple offers – you probably know that bidding wars can ensue then. The other was just off the mark in price acceptable to the sellers.

The MLS activity posted over the last seven days is below. You will notice that homes continue to prevail with the most sales. We no longer have any home listings, but are out searching for some. Please pass the word if you know of any homeowners looking to sell. Sanibel’s inventory of homes is down to just a 10-month supply, with the best time to sell between now and Easter.

Sanibel & Captiva Islands Association of REALTORS®

Wish me luck in emceeing our annual Sanibel and Captiva Islands Association of REALTORS® Installation and Award banquet tomorrow night. It is going to be a busy day and night for our incoming President and pal David Schuldenfrei, who also manages VIP Vacation Rentals. He will be speaking tomorrow afternoon at 2014 Everglades Coalition Conference in Naples.

The Everglades Coalition is an alliance of more than fifty local, state and national conservation and environmental organizations dedicated to full restoration of the greater Everglades ecosystem, from the Kissimmee Chain of Lakes into Lake Okeechobee and to the estuaries, through the River of Grass, out to Florida Bay and the Keys. David will discuss the economic impact of water quality as it relates to real estate sales and vacation rentals.

Sanibel & Captiva Islands Multiple Listing Service Activity January 3-10, 2014

Sanibel
CONDOS
3 new listings: Captains Walk #B4 2/2 $350K, Janthina #1A 2/2 $1.1M, Gulfside Place #307 2/2 $1.225M.
1 price change: Anglers Key #201 3/3 now $1.749M.
2 new sales: Mariner Pointe #1083 2/2 listed for $375K, Oceans Reach #4C1 2/2 listed for $825K.
1 closed sale: Sandalfoot #1A1 2/2 $630K.
 
HOMES
7 new listings: 950 Sand Castle Rd 3/2 $549K, 1356 Tahiti Dr 3/2 $699K, 9474 Balsa Ct 3/2.5 $895K, 2749 Wulfert Rd 3/3.5 $995K, 988 Whelk Dr 3/2.5 $1.095M, 542 Kinzie Island Ct 3/3.5 $2.1M, 1133 Golden Olive Ct 3/3 $2.295M.
7 price changes: 1602 Serenity Ln 3/2 now $488K; 1826 Ardsley Way 4/3 now $493.7K; 579 Rabbit Rd 3/3.5 now $574,555; 1504 Angel Dr 4/3 now $895K; 5206 Punta Caloosa Ct 3/2 now $997K; 1838 Buckthorn Ln 3/2 now $1.1M; 2520 Harbour Ln 3/2.5 now $1.235M.
9 new sales: 1645 Sand Castle Rd 3/2.5 half-duplex listed for $439K, 724 Rabbit Rd 2/1 listed for $495K, 420 Lighthouse Way 3/2 listed for $549K, 3205 Twin Lakes Ln 3/2 listed for $599K, 1659 Serenity Ln 3/2.5 listed for $629K (our buyer), 1664 Hibiscus Dr 3/2 listed for $1.298M, 2380 Troon Ct 4/5 listed for $1.95M, 4717 Rue Belle Mer 3/3 listed for $2.195M (short sale), 829 Tulip Ln 5/4.5 listed for $2.295M.
1 closed sale: 4724 Rue Belle Mer 2/2 $615K. 
 
LOTS
No new listings.
2 price changes: 2142 Starfish Ln now $399K, 4318 West Gulf Dr now $749K.
No new or closed sales.
 
Captiva
CONDOS
1 new listing: Lands End Village #1667 2/2 $1.195M
No price changes, new or closed sales.
 
HOMES
1 new listing: 16814 Captiva Dr 4/4.5 $6.995M
2 price changes: 11490 Dickey Ln 3/2 now $859K, 16249 Captiva Dr 3/3 now $2.65M.
1 new sale: 15631 Captiva Dr 5/4.5 listed for $1.715M.
No closed sales.
 
LOTS
Nothing to report.

This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its 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.  If your property currently is listed with another broker, this is not intended as a solicitation of that listing.

Until next Friday, here’s hoping your weather is as nice as ours here! Susan

It is a quiet end to the week on Sanibel and Captiva. Though the islands are busy with visitors and vacationers, most are out enjoying the terrific weather. A brief cool down on Christmas eve has given way to sunny 80-some degree weather again, with the next cool-front not expected until Tues when the high is only expected to go into the low 70’s. Even that temperature makes outdoor lovers happy. The beaches and bike paths continue to see more action than real estate.

Accommodation managers advise that turn-over tomorrow will bring even more visitors. Maybe we’ll get lucky and have some buyers in that new group. Below are a couple of news items, including a real estate summary of 2013 and some 2014 forecasts, followed by a report of the islands Multiple Listing Service action this week.

Sanibel Welcomes a Soldier

SanibelSusan made her last pre-Christmas off-island shopping adventure right after work on Dec 23. I thought it odd when I passed a couple of fire trucks and other vehicles stopped just before the high-rise bridge. Not seeing evidence of an accident, I remember thinking “That’s good; it’s a terrible time to have a fender bender”.

To my surprise, as I drove back on the island a short time later, I was stopped in traffic as a 30′ American flag that had been raised to fly between the top of a pair of ladder trucks, creating a gateway to the island, was being lowered. It was an impressive sight made to provide a patriotic reception for an Army soldier arriving at his Mom’s Sanibel home for the holiday. Thanks to four members of Sanibel Fire and Rescue District and two crewmen from the Iona-McGregor Fire Department, they positioned the two trucks at the base of the Sanibel Causeway high span bridge, hanging the flag which had been borrowed from the City of Fort Myers Fire Department. I am sure that I was just one of many whom when seeing this thought of the many men and women serving our country.

Florida REALTORS – Top Real Estate Stories of 2013

Posted on-line at FloridaRealtors.org, here is a summary of what as happened in the business this year:

“The real estate industry changed in 2013 – in some ways, significantly, Florida REALTORS® has put together its annual recap of the top news stories that impacted Florida’s real estate brokers and agents:

“The (housing recovery) beat goes on – At the start of 2013, it seemed as if only a handful of experts were beating the housing recovery drums. By the end of the year, just about everyone was upbeat – especially buyers and sellers. It has been a steady upward rebound, and it is obvious. The real estate market is improving.

“Make your move – Florida has a 5-month supply for new and existing single-family homes. Normal levels are 6.1 months for new homes, 7.3 months for existing homes. With mortgage interest rates on the rise, Realtors are working to get sellers to list and buyers to commit.

“Price point – With housing prices on the rise, owners began to recoup some of the equity lost during the recession. In January, the median Florida single-family home sold for $145,000; in November, it sold for $169,900 – a 17.2% increase in only 10 months.

“Higher but still low – Long-term mortgage interest rates bottomed out last May at 3.35% when the Fed announced it might taper its long-term bond-buying program. Rates have slowly increased, and many economists predict rates of 5% in 2014 – still low by historic standards.

“Cashing in – Institutional investors flush with cash fueled the recover in 2013, as they picked up blocks of distressed properties – condos and single-family homes. Last January more than 50% of Florida home sales were all-cash transactions. Economists cite the need for a loosening of lending standards and job certainty in order to lure first-time buyers into the market.

“World piece – International sales remained strong in Florida, with Miami a notable hotspot in 2013. Canada continued to be a major source of buyers – accounting for about 30% of international transactions. Buyers from Venezuela, Brazil, Argentina, Columbia, Peru, and China also grew. At the same time, European buyers from the U.K., Germany, and France figures less prominently.

“Rules were made to be broken – A potential threat failed to materialize this year. To avoid another real estate market meltdown, lawmakers forced federal agencies to create minimum loan terms and a “qualified mortgage” (QM). Some experts feared the new rules might require a mandatory 20% down payment. However, the QM rule issued in February struck a balance that lowers risk yet still provides mortgage access for most consumers; a specific-yet-similar QRM rule issued in August did the same.

“Then the floodgates opened – Initially heralded as a long-overdue relief measure for homeowners at risk of flooding, 2012’s Biggert-Waters Flood Insurance Reform Act extended the nation’s National Flood Insurance Program (NFIP) for five years and took steps to make the program financially self-sustaining. But initial relief turned to shock when insurance premium renewals arrived in the mail. For some homeowners, rates jumped as much as 800% making some homes unaffordable and short-circuiting some sales under contract. Lawmakers, Realtors and homeowners are working on a number of fixes to ease the unexpected burden on homeowners and sellers.

“When it’s not good to be No. 1 – Banks in Florida started aggressively clearing out the inventory of foreclosed homes, opening the door to a “normal” real estate market. Except for a brief drop to No. 2 status, Florida was the No. 1 U.S. foreclosure state in 2013. In the third quarter alone, the number of homes in some phase of foreclosure rose 22% over the previous quarter, with Florida hosting one in five U.S. foreclosure auctions. The trend is good for the state’s long-term real estate health but not for many Floridians losing a home.

“Property insurance casualties – The property insurance market shifted some in 2013. Florida-owned Citizens Property Insurance ramped up an aggressive push to cut its number of policies. Multiple changes raised some rates, bumped some owners to private carriers and nixed many hurricane mitigation insurance discounts.

“Grease that oils the mortgage market – How can the U.S. minimize the risk of another mortgage meltdown? Lawmakers and regulators wrestled with that question in 2013. FHA added fees and extended insurance on its mortgages, making those loans less desirable. Fannie Mae and Freddie Mac, which free lenders to fund more homes by buying mortgages, are still government owned – but what should happen next? NAR (National Association of REALTORS®) wants continued government involvement; others, however say Fannie and Freddie should go completely private. The discussion continues.

“Just call me John.Doe.Realtor – The hottest new REALTOR® marketing tool announced in 2013: A domain name issued by NAR will allow members to use a new “.realtor” in the URL for their personal websites. Many first-to-sign-up REALTORS chose their name, giving them a powerful marketing tool, with a website URL customers can easily remember, such as “John.Doe.Realtor”.

“Giving back: We salute you – A proud moment for Florida Realtors: The gift of home ownership for a wounded warrior. The highlight of Great American Realtor Days 2013 was awarding a home to retired Army Sgt. Michael Burke of Port St. Lucie, his wife, Nicole, and children Bryce and Layla.

“100 and still going strong – Realtors’ proudest celebration in 2013: The Code of Ethics – the outline of positive business behavior and best practices that separates Realtors from other real estate licensees – turned 100 years old. The Code of Ethics added new language this year to ban discrimination based on sexual orientation and gender identity.”

3 Big Reasons Why Home Sales Are Falling 

Posted on-line last Friday at “Daily Real Estate News” and sourced to REALTOR® Magazine Daily News and “What Fed Tapering Means to You,” The Wall Street Journal (Dec 19, 2013):

“Existing-home sales dropped in Nov, falling 4.3% from Oct sales, and marking the first time in more than two years that home sales are below year ago levels, the National Association of REALTORS® reports. What’s behind the drop in sales? NAR’s chief economist Lawrence Yun pinpoints three main factors: Higher mortgage rates, constrained inventories, and continuing tight credit.

“1. Higher mortgage rates: The 30-year fixed-rate mortgage is up nearly a full percentage point in the past year, causing home buyers to face an increase in borrowing costs. The 30-year fixed-rate mortgage increased to 4.26% in Nov compared to a 3.35% average in Nov 2012, Freddie Mac reports. The Federal Reserve announced this week that it would begin winding down its bond-buying stimulus program next month, which is expected to result in higher mortgage rates. The average 30-year fixed-rate mortgage could likely rise to 5% or 5.5% next year, Yun notes.

“2. Tight credit: New rules defining Qualified Mortgage will take effect soon, and could leave more borrowers on the sidelines. “New underwriting rules to protect borrowers, effective in Jan, will prohibit many loan features, set tighter limits on the amount of debt a borrower can have and still get a mortgage, and require that lenders accurately measure a borrower’s ability to repay,” says Steve Brown, NAR’s president. “This means that qualified borrowers are getting a loan that they are very likely to be able to repay, but some borrowers may wind up paying much more for their mortgage, or not get a loan at all due to the tougher standards. The new rules may tighten credit too much, but we’re hopeful regulators will make adjustments if this proves to be true.”

“3. Constrained inventories: Housing inventory in Nov fell 0.9% to 2.09 million existing homes available for sale. The total housing inventory represents a 5.1-month supply at the current sales pace, NAR notes. One factor is a shrinking number of distressed homes – foreclosures and short sales. Distressed homes accounted for 14% of Nov sales compared to 22% in November 2012, NAR notes. “There is a pent-up demand for both rental and owner-occupied housing as household formation will inevitably burst out, but the bottleneck is in limited housing supply, due to the slow recovery in new home construction,” Yun notes. “As such, rents are rising at the fastest pace in five years, while annual home prices are rising at the highest rate in eight years.” The national median home price for existing-homes was up 9.4% year-over-year in Nov, averaging $196,300 nationwide.”

Job Growth to Drive 2014 Housing Market

In the same vein, “Daily Real Estate News” on Monday sourced an “Investor’s Business Daily” report called “How Will Housing Recovery Fare In 2014?” as saying:

“”The housing recovery is expected to remain strong in the new year, driven by economic growth and an improving employment picture, economists say. In fact, job growth likely will be one key to driving housing growth in the new year. An estimated 2 million or more jobs will be created in 2014, predicts Lawrence Yun, National Association of REALTORS®’ chief economist.

“As employment picks up, greater demand for housing is expected to occur and a surge in homebuilding activity. Celia Chen, housing economist at Moody’s Analytic, predicts a “homebuilding boom” in 2014 that will spark even more jobs — from construction workers to manufacturers — and bring about greater demand for housing overall.  “The homebuilding boom in 2014 drives our strong economic forecast,” Chen said. “Homebuilding generates a lot of jobs.” The housing recovery is expected to continue on its path in the new year with home prices continuing to rise (although at a slower pace); sales to rise slightly; and the foreclosure crisis expected to finally draw to an end.

“”For the general consumer, the market will be good in 2014,” says Lawrence Yun, chief economist at the National Association of REALTORS®. “Home values will continue to rise, but not sharply, but there won’t be a decline.” Yun notes 2014 will be the second consecutive year of a “very respectable recovery,” marked by a 20% cumulative rise in existing-home sales over the past two years and nearly a 20% increase in home values. However, he notes that existing-home sales will likely plateau in 2014. Sales have already been slowing in the latest reports. Yun says home prices rose 11% in 2013, but growth will likely be slower in 2014 at a pace of 5%. The reason for the slowing pace of home prices, he says, is mostly being driven by “less affordable conditions from higher prices and higher mortgage rates.” Thirty-year fixed-rate mortgages are expected to rise above 5% in the second half of 2014 (up from a current average of 4.47 percent this week).

“”While rates will be higher than what they were, they won’t be at a level that will discourage home purchases,” says Jay Brinkmann, chief economist at the Mortgage Bankers Association. MBA is predicting interest rates to also average about 5% in 2014. 

“Meanwhile, the distressed housing crisis is expected to fade away in 2014. Daren Blomquist, vice president at RealtyTrac, says that 2014 will likely be the year “we transition back to normal.” About 85,000 foreclosure filings a month nationwide are expected by the first quarter of 2015. “The market has worked through most of the bad loans that triggered the crisis to begin with,” Blomquist says. Still, some loans need to be “cleaned up.””

Sanibel & Captiva Islands Sales Stats for 2013 Compared to 2012

Bringing these articles closer to home, below is a summary of the almost-end-of-2013 sales action compared to 2012 and inventory today (Dec 27, 2013). To put these statistics in perspective, also shown are the number of sales and average sale prices during “the peak” in 2006. The market rebound is slow.

                        CONDOS                 HOMES                        LOTS

                        #          Avg $             #          Avg $                #          Avg $

SANIBEL

For sale           161      716,196         180      1,308,786         86        686,988

Sold 2013        157      574,511         194       908,986           25        423,162

Sold 2012        151      551,244         183       823,598           33        487,687

Sold 2006        143      866,972         156       1,143,682        18        523,917

CAPTIVA

For sale           35        804,663         35         3,254,083        4          2,388,750

Sold 2013        36        659,185         18         2,522,056        2          675,000

Sold 2012        35        836,129         26         1,536,019        3          1,221,667

Sold 2006        21        1,362,476      10         2,307,375        4          2,218,750

Sanibel & Captiva Islands Multiple Listing Service Activity December 20-27

Sanibel
CONDOS
2 new listings: Seashells #36 2/2 $335K, Coquina Beach #5B 2/2 $395K.
4 price changes: Spanish Cay #F6 1/1 now $285K, Coquina Beach #4F 2/2 now $429.9K, Mariner Pointe #812 2/2 now $459K (our listing), Loggerhead Cay #331 2/2 now $495K.
No new or closed sales.
 
HOMES
No new listings.
2 price changes: 1809 Bowman’s Beach Rd 3/2 now $475K, 696 Durion Ct 3/2.5 now $599K.
1 new sale: 984 Sand Castle Rd 3/2.5 half-duplex listed for $355K.
2 closed sales: 1655 Sand Castle Rd 2/3 half-duplex $425K, 659 Donax St 2/2 $435K (our listing & sale).
 
LOTS
3 new listings: 4626 Buck Key Rd $199K, 9277 Belding Dr $239.9K, 6217 Starling Way $1.495M.
No price changes.
1 new sale: 2403 Blue Crab Ct listed for $499K.
No closed sales.
 
Captiva
CONDOS
No new listings, price changes, or new sales.
2 closed sales: Tennis Villas #3121 1/1 $194K, Bayside Villas #5102 1/2 $244K.
 
HOMES
Nothing to report.
 
LOTS
Nothing to report.

This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its 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.  If your property currently is listed with another broker, this is not intended as a solicitation of that listing.

Happy New Year from Susan & The SanibelSusan Team (David, Elise, & Lisa)

Island Christmas preparations continue with near-full occupancy expected on both Sanibel and Captiva beginning tomorrow.

Here is a little real estate news, following by the activity posted in the Sanibel and Captiva Islands Multiple Listing Service over the last seven days…

Sanibel/Captiva Islands REALTOR® Happenings

Our last monthly REALTORS® breakfast meeting was yesterday. As chair of this year’s Professional Development Committee, I borrowed the script used at the Florida REALTORS® 2013 Professional Standards Forum and tweeked it to fit members of our leadership team and the committee, who willingly donned costumes to fill their acting roles in different ethics and arbitration-related predicaments. Since REALTORS® are bound by their Code of Ethics, it is important to offer reminders and stay up-to-date on Code changes made as the industry and profession evolve.

The presentation offered good lessons and got a few laughs too! Big thank you to the cast of characters: Amanda Curran with Superior Title; Joel Goodman, Lori Pierot, Deb Smith, and Martha Smith with VIP Realty Group; Susan McCallion with Pfeifer Realty; Art and Dustyn Corace with ReMax of the Islands; and Tiffany Burns with Royal Shell. The skit featured them visiting me (the Doctor, a shrink, in The Real Estate Zone). Who knew I could diagnose Buyer Kleptomania and Psychological Egoism?

During the Caravan portion of the meeting, only a few new listings and sales were mentioned. Most announcements were price reductions. That is typical of the lull pre-holiday and before high season hits. Next week, because of Christmas, there will be no Thursday meeting, but starting Jan 2 the open house caravans pick up again every week, rotating between west-end and east-end.

This morning, I spoke with the rental manager for one of the larger Sanibel rental companies. He said that yesterday was a record day for them with incoming booking calls. He also said that peak day is usually mid-January, so it was early this year – or the record again may be broken soon. Perhaps, the boom is weather related. Only one booking was for Christmas, but he also said that there are few vacancies left for the next two weeks! We REALTORS® sure hope these island holiday visitors want to buy real estate!

Wondering About Island Christmas Weather Predictions & More?

Now through the weekend, daily highs are forecast to be spring/summer-like – in the high 80’s. An island-style cool-down is expected by Christmas Eve day when the daily high is only expected to be 71 degrees. But it will be back up into the high 70’s by Christmas and continue to be warm right into the following weekend.

Once again this year, the only thing that will be white on Sanibel and Captiva will be the beach sand – which is looking great on both islands. Beach-renourishment equipment was removed from Captiva this week! Hooray!

Below is one of the songs that the BIG ARTS Community Chorus asked the audience to sing with them during their holiday concert last week.

Set to the tune of “Winter Wonderland“, the words sure are fitting. Words written by local Fort Myers cartoonist and harmonica-player Doug MacGregor.

Sea Gulls Sing (set to Winter Wonderland)

Seagulls sing, are you list’nin’?

At the beach, surf is glist’nin’,

A beautiful sight, a sunset tonight,

Walkin’ in a winter wonderland.

—

Stored away are the snow skis,

Here we stay in our short sleeves,

You sing a new song, “This is where we belong!”

Livin’ in a winter wonderland.

— 

In the yard we can trim a palm tree,

Then pretend to shovel lots of snow,

You’ll say, “Do you miss it?” I’ll say, “No, ma’am.

I feel younger by the minute, don’t you know.”

Misinformation Spreading Regarding National Flood Insurance Program

Chris Heidrick with Heidrick and Co Insurance (www.SanibelInsurance.com) wrote the below editorial that was featured in several local papers this week. With flood insurance on the minds of so many island property owners, prospective buyers, and REALTORS®, it clears up some misconceptions.

“I am amazed at the amount of information the media is spreading regarding the National Flood Insurance Program (NFIP). The most recent and perhaps the most egregiously uneducated piece was an Editorial titled “Flooding Taxpayers Again”, published by the “Wall Street Journal” on Dec 1, 2013. This is especially disappointing as The Journal is such a well respected publication. However, this editor clearly spent no time at all researching the topic before irresponsibly spreading misstatements to readers. Here are the facts:

“1. The National Flood Insurance Program is NOT subsidized by taxpayers. Not one cent. Rather, the taxpayers provide a line of credit that is used as policyholder surplus. Prior to Katrina, the NFIP has drawn from and re-paid on this credit, with interest. Katrina and Sandy caused this credit line to baloon to an untenable level, but the NFIP is current in its repayments, with interest. To date, the NFIP has not defaulted and Congress has not forgiven the debt, so the NFIP has not cost taxpayers one cent.

“2.  The NFIP has stated in its own Congressional testimony, in its own manuals and on its own web site that the only properties that are not paying “actuarially correct” rates are those that were constructed prior to the NFIP. In other words, 80% of NFIP policies are written on properties that were constructed to FEMA requirements and are paying premiums that are “actuarially correct”. As such, the NFIP has not encouraged growth in flood prone areas. Rather, it has successfully established building guidelines that have mitigated risk and created a self-funding mechanism that has allowed over $45 billion of flood losses to be paid by those choosing to live in flood-prone areas rather than taxpayers. It has also helped prevent blight in older communities with older pre-existing structures that may occur in the absence of a flood insurance solution.

“3. The cited measure that passed the House in June of 2013 did not in any way address the older properties that are not paying an “actuarially correct” rate. It proposed to delay the implementation of Section 207 of Biggert-Waters, which eliminates Grandfathering. Grandfathering creates certainty in the real estate market by shielding homeowners from wildly fluctuating premiums as rate maps are periodically revised. Grandfathering is not a subsidy. The NFIP has stated that it collects an adequate and “actuarially correct” premium from each risk class as a whole to pay its claims. Removal of Grandfathering is a kin to requiring airlines to charge each passenger the exact same fare or requiring pre-existing structures to be updated each time a building/zone code is revised. 

“4. The amount of private capital that would be required to completely privatize the National Flood Insurance Program is immense and prohibitive. While there may be a few insurers who enter the market on a limited basis, there are not enough to replace the NFIP.  Biggert-Waters went far beyond what was needed to fix the NFIP and created a great deal of collateral damage in the process. When Section 207 is implemented in late 2014 many more than the 20% of policies impacted by Section 205 will feel the effects. The NFIP has stated that the only class of business that is not paying an “actuarially correct” premium is older structures that pre-date the program. The NFIP has also stated that this class is paying a rate of 40-45% of what is needed. Based on this, all Congress needed to do is require the NFIP to increase premiums for these policies (referred to as pre-FIRM) by 25% each year for four years. This simple solution would not have forced families out of their homes, created increased/unnecessary uncertainty in the real estate market or cost the taxpayer a single penny. And, it may have been simple enough for even the Editor of the Wall Street Journal to accurately convey.

“Christopher W. Heidrick, CPCU, ANFI, CFP, principal, Heidrick & Co. Insurance, Sanibel”

Top 10 ‘Winter Wonderlands’

Last week REALTOR®Mag on-line posted the below article. If you are not partial to Sanibel & Captiva Islands (like me & where these photos were taken), now might be a good time to plan a holiday visit next year to one or more of the cities described in the article.

“Homes.com evaluated cities to find the best “winter wonderlands,” municipalities known for their holiday observances and winter festivities.  The following locales landed at the top of the list: 

• Atlanta: It features Macy’s Great Tree at Lenox Square along with the store’s “Pink Pig” train and an annual Children’s Christmas Parade.
• Saranac Lake, NY: It hosts an annual winter carnival that dates back to 1897 with a massive Ice Palace (made from ice bricks that lights up the town every night).
• Chicago: Among twinkling lights at the Lincoln Park Zoo and gift shopping on Michigan Avenue, it also features a German holiday celebration at the Christkindlmarket with German foods and entertainment.
• Lava Hot Springs, ID: The city boasts a tradition with its annual Fire & Ice Festival on Main Street, where residents run down snowy streets in bikinis and boots.
• Boston: The city features university choral concerts, and Frog Pond on Boston Common becomes a place for ice skating and sledding down the snowy banks.
• Nashville: The city’s southern belle homes get decked out in holiday lights with “authentic holiday antiques” that “showcase everything from trees trimmed antebellum style to historic holiday dress.” 
• Baltimore: The city’s Hampden neighborhood features a light display that garners national recognition and residents each year light up their homes for a big holiday display on 34th street (which shares its name with the New York street in the holiday film “Miracle on 34th Street”).
• Grapevine, TX: Branded the “Christmas Capital of Texas,” the city offers up more than 1,400 holiday events over 40 days, such as performances at the Grapevine Opry and gift shopping at the International Christmas Market.
• Denver: The historic lower downtown area, nicknamed LoDo, features an “artistic flair” to the holidays as art students compete in the LoDo Aglow Window design contest, decorating store windows for the holiday season.
• Park City, UT: The Park District offers a gingerbread house competition and a winter sports event known as the Deer Valley Celebrity Ski Fest, which brings celebrities and Olympic athletes together to raise funds for charity.

Learn more about what makes each city a “winter wonderland” at Homes.com.”

The Most Overvalued Housing in the World

On Monday, “Daily Real Estate News” posted this article which was sourced to “The Huffington Post Canada” and CBS News. I hope it means that our sales to non-U.S. buyers stay on the upswing:

“Homes in Canada are overvalued by 60%, according to a new report from Deutsche Bank that looks for the most overvalued housing markets among 20 developed countries. This makes Canadian homes the most overvalued in the world, according to the study. The study compares housing prices to historical norms. When compared to rent, home prices in Canada were found to be 88% overvalued. In terms of income levels, home prices compared were found to be 32% overvalued, according to the Deutsche Bank study.

““It’s true, housing does look very overvalued in Canada, particularly here in Toronto and in other major cities like Vancouver for example,” says David Madani of Capital Economics. The Bank of Canada recently warned that high household debt levels—which have been rising with increasing home prices—are one of the country’s biggest economic risks. However, many real estate professionals there are not seeing reason for alarm. “There’s no bubble,” Desmond Brown of Royal Lepage told CBC News. “We have the low interest rates, we have the immigration of 100,000 people coming into Toronto every year; there’s no bubble in Toronto.”

“A newly-released RE/MAX survey projected that average home prices in Canada will rise 3% in 2014 to average $390,000. That would follow a 4% increase in home prices this year. Some of the countries found to have the most overvalued housing, according to the study, are: 

Canada: 60%

Belgium: 56%

New Zealand: 51%

Norway: 49%

Australia: 40%

France: 33%

U.K.: 31%

Sweden: 24%

Finland: 22%

Spain: 16% 

“Meanwhile, the U.S. was found to be undervalued by 6%. The most undervalued real estate is found in Japan, which is undervalued by 39%.”

Home Owners Stand to Recapture More Equity in 2014

An article posted in “Mortgage Daily News” and reposted by “Daily Real Estate News” this week says:

“The number of underwater homes continues to slip, with 791,000 properties regaining equity during the third quarter, CoreLogic reports. Currently, about 13% of all homes with a mortgage – or 6.4M – remain in negative equity compared to 14.7% – or 7.2M – at the end of the second quarter. An estimated 42.6M homes in the U.S. have positive equity. About 20% – or 10M – of those homes, however, have less than 20% of equity or what is considered “under-equitied,” according to CoreLogic.

“What’s more, about 1.5M properties have less than 5% and are considered near-negative equity. They are the most at risk if prices happen to fall, CoreLogic reports. The following states have the highest levels of negative equity and account for 36.4% of all the negative equity in the country:  

Nevada: 32.2% of properties have negative equity

Florida: 28.8%

Arizona: 22.5%

Ohio: 18%

Georgia: 17.8%

“The majority of the homes that have positive equity are in the high-end housing market. Ninety-two percent of homes valued at more than $200,000 have equity compared to 82% of homes values at less than $200,000, CoreLogic found. “We should see a further rebound in consumer confidence and economic growth in 2014 as more homeowners escape the negative equity trap,” says Anand Nallathambi, president and CEO of CoreLogic. “Home price appreciation has helped more than 3M property owners regain equity since the first quarter of 2013.””

Sanibel & Captiva Multiple Listing Service Activity December 13-20

Sanibel
CONDOS
1 new listing: Blind Pass #D105 2/2 $439K.
1 price change: Coquina Beach #4F 2/2 now $429.9K.
No new sales.
5 closed sales: Mariner Pointe #1013 2/2 $375K, Island Beach Club #310C 2/2 $525K (our listing), Sanctuary Golf Villages I #6-3 3/3 $660K, Nutmeg Village #214 2/2 $830K, Tamarind #B301 2/2 $1.69M.
 
HOMES
1 new listing: 5049 Joewood Dr 6/7.5 $3.995M.
6 price changes: 450 Leather Fern Pl 3/2 now $599K, 420 East Gulf Dr 3/3 now $769K, 1306 Par View Dr 3/3.5 now $847K, 1528 Angel Dr 3/2 now $896.5K, 2279 Troon Ct 3/4 now $1.295M, 1528 San Carlos Bay Dr 3/3 now $1.995M.
5 new sales: 5111 San-Cap Rd 3/2 listed for $249K, 562 Lake Murex Cir 3/2 listed for $699K, 3808 West Gulf Dr 3/2 listed for $699K, 211 Daniel Dr 3/2 listed for $749.9K, 1950 Woodring Rd 3/3.5 listed for $1.975M.
3 closed sales: 1211 Periwinkle Way 3/2 $435K, 1860 Ibis Ln 3/2 $625K, 1277 Par View Dr 4/3.5 $980K.
 
LOTS
2 new listings: 9239 Dimmick Dr $169.9K, 4586 Buck Key Rd $225K.
2 price changes: 6081 Henderson Rd now $239K, 5821 Pine Tree Dr $539K.
No new or closed sales.
 
Captiva
CONDOS
1 new listing: Sunset Beach Villas #2337 2/2 $725K.
No price changes, new or closed sales.
 
HOMES
1 new listing: 17041 Captiva Dr 2/2 $1.695M.
No price changes, new or closed sales.
 
LOTS
Nothing to report.
This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its 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.  If your property currently is listed with another broker, this is not intended as a solicitation of that listing.

Merry Christmas from Susan & The SanibelSusan Team (David, Elise, & Lisa)

Happy post-Thanksgiving to all! SanibelSusan ran the office solo today and this morning it was quiet, but this afternoon was busy busy busy. Spent time talking with prospective buyers referred to me by island clients. Love it when that happens! We are going out to look at property in the morning.

The Sanibel Masters Art Fair is today and tomorrow at The Community House across the street and that event usually brings some walk-in traffic, but none yet. Maybe Teammate Lisa will have some tomorrow.

Holiday Business

David and Lisa get called on occasionally to work with off-island buyers. We refer to that as The SanibelSusan Team across-the-pond business. Yesterday, David sold a Gulf Harbour condo. Now we can add a Thanksgiving Day sale to our holiday business repertoire. When we say that Realtors® often go the extra mile and sometimes work 24/7, we aren’t kidding. Years ago, like Dave, I made a holiday sale too, on Christmas. We are thankful for every transaction regardless of the day! Way-to-go, Dave!

This week, we also are thankful for a closing on Tuesday and our fabulous new gulf-front condo listing (see the view below). Our weekly reports with showing feedback and the activity posted in the Sanibel and Captiva Multiple Listing Service are below, after a few news items.

View from Gulfside Place #319

Holiday Weather

The islands are busy with folks enjoying the breezy and cool, but sunny, weather. On Wednesday night, it was reported that our temperatures went down into the high 40’s, the coldest evening since March. Yesterday, I still managed to take a dip in my pool dip without turning on the heater. The cold weather isn’t lasting long, however. Today through Wednesday daytime temperatures are expected to range from the mid-70’s to low-80’s, and into the 50’s at night.

CBS Developing “Doc Ford” Novels Into TV Series

Fans of Randy Wayne White books were excited this week to hear that the character he created, Doc Ford, the NSA-agent turned marine biologist, inspiration for over 20 novels and three Southwest Florida restaurants, may now get his own network series. Island newspapers and the internet report that producers from CBS have started developing a “Doc Ford” series based on White’s New York Times-bestselling novels. The negotiations between White’s agents and CBS TV Studios lasted more than six months, because he was waiting for the perfect writer to bring Doc Ford to the screen. The pilot should be finished by next fall.

A new Doc Ford novel, “Bone Deep” also is scheduled for release in April. Set in Central Florida’s “Bone Valley”, known for a black market of illegal artifacts and fossils, and a multi-million $ phosphate industry. For more info on Randy, visit www.RandyWayneWhite.com

Happy Thanksgivukkah

If you attended the Sanibel Thanksgiving Celebration at The Community House last Sunday evening, you too probably enjoyed Edina Lessack’s presentation. I was so taken by it that I asked her if she would let me share it in today’s blog. Here are excerpts from her speech:

“We are witnessing a once in a lifetime event unfold on the Jewish calendar with the overlap of Chanukah and Thanksgiving. At first glance it would seem that these holidays are as far apart in theme as they normally are on the calendar. However, as bizarre as it is to experience them at the same time, and at the same feast, it is actually a wonderful realization that they are not mutually exclusive. Indeed Chanukah and Thanksgiving do not contradict but, in fact compliment one another.

“Chanukah is one of the holidays that celebrates the Jewish people’s unique, distinct identity. Regardless of our religion, isn’t this what we try to instill in our children – not to be like everyone else, not to blend in, not to go along with the crowd? Rather, we encourage them to stand up for themselves, stand out and be themselves even if that means being different.

“On the flip side, Thanksgiving is a holiday that reminds us that beyond our distinctions and differences we are one; Jewish, Christian, Muslim, or Atheist, suburbanite or urbanite, red state, blue state, white, brown, or black skin. Regardless of what divides us, we are united, our stories all converge, and ultimately we are one. We are a community, and we want to live in a free society and to preserve that society for future generations.

“So how, at this meaningful season, do we identify?…Or are we Americans? Are we individuals or are we a community? Are we separate or are we united? And the answer to all of these is, of course, YES.

“If we were only individuals, only in it for ourselves, by ourselves, we will never be whole. Indeed, there is a great world out there to be a part of as well as to fix. We need to merge our lives with others, join our stories with brothers and sisters, unite our states: East coast, West coast….  Life is not either/or. Identity is not one or the other. Rather, it is both!”

Sanibel Luminary

For those who inquired about the Luminary night Flash Mob (by Sanibel Community Chorus singers) at Bailey’s Store (the event that I know nothing about):

It will be a week from today (Dec 6) at 5:30 p.m. starting in the produce department. Christmas carols in the parking lot will follow. Tra-la…

Sanibel & Captiva Multiple Listing Service Activity November 22-29

Sanibel

CONDOS

9 new listings: Sundial #H411 1/1 $199K (short sale), Sundial #I402 1/1 $379K, Seawind #A109 2/2.5 $399K, Sanibel Arms West #M8 2/2 $495.9K, Lighthouse Point #113 2/2 $499K, Sundial #O302 2/2 $750K, Tarpon Beach #109 2/2 $789K, Sanibel Arms F8 2/2 $890K, Gulfside Place #319 3/2 $1.295M (our listing).

1 price change: Sanibel Arms West #G7 2/2 now $549K.

3 new sales: Beach Road Villa #106 2/2 listed for $299.9K, Sandalfoot #1A1 2/2 listed for $699K, Golden Beach #2 3/2.5 listed for $1.1M.

2 closed sales: Spanish Cay #F7 1/1 $250K (our listing), Sanibel Arms #C8 2/2 $410K.

HOMES

4 new listings: 1625 Serenity Ln 3/2 $499K, 731 Nerita St 3/2 $559K, 1121 Skiff Pl 3/2 $599K, 940 Lindgren Blvd 3/2 $948K.

2 price changes: 710 Pyrula Ave 2/2 now $598K, 865 Birdie View Point 4/4.5 now $1.495M.

2 new sales: 1009 Dixie Beach Blvd 3/2 listed for $539K, 228 Violet Dr 3/2/2 listed for $895K (short sale).

2 closed sales: 1073 Sand Castle Rd 3/2 $530K, 4585 Bowen Bayou Rd 4/4 $635K.

LOTS

Nothing to report.

Captiva

CONDOS

1 new listing: Lands End Village #1608 3/3 $2.15M.

No price changes.

1 new sale: Bayside Villas #5102 1/2 listed for $292K.

1 closed sale: Sunset Captiva #101 2/2 $769K. 

HOMES

No new listings or price changes.

1 new sale: 16428 Captiva Dr 7/8/2 listed for $10.9M.

1 closed sale.

LOTS

Nothing to report.

This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its 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.  If your property currently is listed with another broker, this is not intended as a solicitation of that listing.

Best wishes for a terrific weekend from SanibelSusan