Tag Archives: Housing market

Thankfulness Abounds as the Sun Shines Brightly on Sanibel & Captiva Islands

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Temps 11-28-14It’s just SanibelSusan at the office today following our chilliest morning of the season yet – 48 degrees F this morning, though it now has warmed up to 64. From the forecast, it looks like this will be our last cold day for a while. Temperatures are expected to get back into the high 70’s/low 80’s before the weekend ends, and continue into next week. We probably will be wearing shorts again by island luminary nights next weekend, December 5 and 6. 

Thanksgiving Day on the island was clear and cool. Lots of families are here vacationing. It’s a great start for the Master Arts & Crafts Fair which began today at The Community House across the street from Sanibel Square. This usually is one of their most attended events of the year, so The SanibelSusan Team is hopeful for some walk-in traffic. 

free_christmas_tree_ipad_wallpaper_s-13The BIG ARTS Community Chorus sings two sets there tomorrow (Saturday) morning and then sings again tomorrow night at the South Seas Plantation tree lighting – all good practice for our Holiday Concert which is Tuesday, December 9 at BIG ARTS Schein Performance Hall. Tickets are going fast! 

Below are a couple of real estate news articles followed by the activity posted in the Sanibel & Captiva Islands Multiple Listing Service over the past seven days.

5 Reasons Housing Markets Are Thankful

realtor logoHere is SanibelSusan’s 2-cents worth on an article posted Wednesday on “Realtor® Magazine” on line:

“The housing market has seen plenty of challenges the last few years, but could brighter days be ahead? Based on recent housing reports, some markets are reporting a rosier picture now than for the first half of the year — and growing optimism heading into next year for a lasting turnaround. 

“Reason for Good Cheer? Here are five market gauges that many in the real estate industry are thankful for this holiday season: 

“1. Mortgage rates are still low. Home buyers can take advantage of borrowing costs that remain near historical lows. Last week, the 30-year fixed-rate mortgage averaged 3.99% nationwide, marking the sixth consecutive week of averages near 4%. In October, the 30-year fixed-rate mortgage reached its lowest average of the year at 3.97%. “If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist,…Still, many economists aren’t expecting the rate surge in the new year to be quite as drastic as previously seen. Fannie Mae recently revised its forecast for 2015, expecting low mortgage rates to stick around longer into the year. Fannie Mae now projects rates will average 4.3% next year, a drop of about two-tenths of percentage points from its forecast earlier in the year.” 

Susan says: Most island sales continue to be “cash”, but the consumer confidence generated by the low interest rates definitely helps the market on Sanibel and Captiva. For those buyers looking to finance, the good times continue. The time is right for a real estate loan!

“2. Home sales have been inching up. In many markets, more sales are being reported. Existing-home sales in October were above year-over-year levels for the first time in 12 months, according to the National Association of REALTORS®’ latest report. Sales are at their highest annual pace since September 2013.  The job market may be a big contributor behind that increase, says Lawrence Yun, NAR’s chief economist. “This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases,” Yun said in a recent statement.” 

On Sanibel and Captiva, home sales also continue to improve. Last year, 197 homes sold on Sanibel. Year-to-date, there have been 187 closings with another 29 Sanibel homes under contract = 216 which is the first time the number of Sanibel homes sold has passed 200 since 2005 when 266 homes sold.

On Captiva, 18 homes sold last year, compared to 23 closed sales to-date there, with another home under contract = 24 home sales or about the same as years 2011 and 2012.

“3. Buyers are getting more choices. Home buyers are finally getting more selection in homes for-sale. Unsold inventory is 5.2% higher than a year ago, representing a 5.1% supply at the current sales pace.  “The growth in housing supply this year will likely prevent the drastic sales slowdown and coinciding spike in home prices we saw last winter due to low inventory,” Yun says. “However, more housing starts are needed to increase supply, meet current demand and keep price growth in check.” New-home construction is gradually picking up in the latter half of the year, also bringing more inventory into many markets. Single-family housing starts rose 4.2% month-over-month in October to 696,000 units, reaching the highest level since November 2013, the U.S. Department of Housing and Urban Development and U.S. Census Bureau reported. What’s more, the future looks bright that the increase will stick around for the time-being: Building permits — a gauge for future building activity — increased 4.8% in October to an annual rate of 1.08 million units. “The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing,” says Kevin Kelly, chairman of the National Association of Home Builders. ‘We expect continued momentum into next year.””

Here on the islands, where build-out is near, we do not have that same increase in inventory and new product. With just 142 Sanibel homes currently for sale (and 44 on Captiva), island Realtors® just hope there is have enough product to sell this winter. Condominium inventory is low too, with just 122 Sanibel condos for sale (37 on Captiva), compared to the 168 Sanibel condos that have sold this year (23 on Captiva). The island market continues to rebound! 

“4. Foreclosures are falling. In October, distressed home sales dropped into the single digits for the third month this year. Distressed sales, which include foreclosures and short sales, fell to 9% in October, compared to 14% a year ago, NAR reports. Foreclosures and short sales typically sell at a discount — 15% or 10% below market value, respectively — and can place downward pressure on overall home prices in an area. The decrease in foreclosures is helping more home values to stabilize in communities. 

Still, while distressed sales are trending downward overall, several pockets across the country are still battling elevated levels, particularly in judicial states like Florida, Maryland, and New York, NAR President Chris Polychron recently said in a statement.”

Thankfully, the islands did not have many foreclosures, but for those Realtors® who sell off-island throughout the other communities in Lee County. They agree.

“5. Home prices are stabilizing. The median existing-home price for all housing types in October was $208,300 — 5.5% above October 2013, according to NAR’s latest report. It marks the 32nd consecutive month of year-over-year price gains. The double-digit gains in prices from last year have mostly faded away. “Many of the fastest-appreciating real estate markets last year have now settled into a more sustainable pattern of single-digit appreciation,” Daren Blomquist, vice president of RealtyTrac, a real estate data provider, said at the end of October. Still, the gains in home prices over the past year have made home owners feel more optimistic about selling. Forty-four percent of about 1,000 home owners surveyed in Fannie Mae’s October 2014 National Housing Survey said now is a good time to sell, marking an all-time survey high.”

Yes, island prices are stabilizing too. The average Sanibel home price has been over $800K since 2011, while condo prices did not really jump until this year. 2014 Sanibel average condo price = $666,072. That average has not been over $600K since 2010. 

On Captiva where the market is smaller, the averages are not as discerning; but even so, the average Captiva home price was $2.8M this year, compared to $2.5M last year, and $1.5M in 2012. Average Captiva condo sale price this year is $646,350, not much different from last year, $659,185.

Luxury Sales Outshine Rest of the Market 

CNBC_Logo_FlatCNBC posted an article last week that was reposted in the “Daily Real News” on Friday. It relates to our island market: 

“Sales of million-dollar homes are soaring: Deals on existing homes priced above $1 million climbed more than 16% in October compared to a year ago, according to National Association of REALTORS® housing data. The increase was bigger than any other price segment. “There is little volatility in the stock market. It is whoppingly higher, so people in the top 10% of wealth are really feeling confident now,” says Lawrence Yun, NAR’s chief economist.

“Sales are also rebounding for listings in the $750,000 to $1 million range, up 12% year-over-year according to NAR. Meanwhile, sales of homes priced under $100,000 dropped 6% year-over-year in October. The largest growth in luxury markets were mostly centered in Miami; Los Angeles; Riverside, Calif.; and New York. International buyers—particularly those from China, Canada, Europe, Russia, and South America—are continuing to help drive up the U.S. luxury market.

“Other markets that are often considered “affordable” are seeing bigger pockets of luxury taking hold too. For example, in Houston, the median home price has risen above the national average and landed No. 6 on a survey by the real estate brokerage Redfin of markets with the most million-dollar sales, beating out Boston, Washington, D.C., and Seattle. “It’s the new economy of the energy boom and other industries moving inland and taking dollars with them,” says Nela Richardson, chief economist for Redfin. “Our agents are going crazy in Houston.”” 

Check How Mobile-Friendly Your Website Is

SANSLogoAn article this week in “Daily Real Estate News” says that Google soon will be labeling websites “mobile-friendly”. Naturally, the first thing I did after reading the article was to take the Google on-line test to see how www.SanibelSusan.com fares. The answer is: “Awesome! This page is mobile-friendly.”

The article says: “The purpose of the new label is to help prevent frustration among mobile searchers, who are growing tired of visiting sites with too-small text, difficult-to-tap links, or sites that have to be scrolled sideways to view all the content. Google started adding the “mobile-friendly” label to its mobile search results last week. To earn the label, Google says a site must meet the following criteria: 

  • Software that is not easily viewed on mobile devices (such as Flash) is avoided. 
  • The text is readable without the visitor having to zoom in.
  • The site automatically sizes the content to fit the screen, so that visitors don’t have to scroll across or zoom to view the page’s contents.
  • Links are far enough apart so visitors can tap them with ease.

“To find out how mobile-friendly your site is, Google offers a Mobile-Friendly Test. You can plug in your URL and you’ll receive a report on how mobile-friendly the page is. The criteria could later be used to determine where your site falls in search results.

““We see these labels as a first step in helping mobile users to have a better mobile web experience,” Google writes in a statement announcing the new labels. “We are also experimenting with using the mobile-friendly criteria as a ranking signal.”” 

RSPS (Resort and 2nd-Home Property Specialist)

RSPS LogoI got a phone call today with a referral from a fellow RSPS. That is a Realtor® who also holds the Resort & 2nd-Home Property Specialist designation. Though I teach the segment about this same subject during our local Association of Realtors® island designation class series, it has always surprised me that only six local Realtors® (yours truly included) have taken the time to earn this national designation. I know for a fact that many island property owners also own property in other resort areas like the mountains of Aspen, Steamboat Springs, New England’s White Mountains, and the Carolinas; the beaches of Cape Cod and Hawaii, plus the Pacific/Atlantic seaboards, and the Great Lake areas. So, I hope those referrals keep coming, the islands are a great fit for buyers looking to invest in the resort and 2nd-home market. 

Sanibel & Captiva Islands Multiple Listing Service Activity November 21-28 

Sanibel

CONDOS

4 new listings: Colonnades #11 1/1 $195K, Island Beach Club #330E 3/2.5 $795K, Sand Pointe #214 2/2 $749K, Somerset #B101 3/2.5 $2.2M (our listing). (Below are a few more photos of this new listing at Somerset at The Reef. The streaming video with showing the fabulous beach/Gulf of Mexico views and waterside enclosed balcony is being prepared later today. It will be posted soon!)

1 price change: Seashells #15 2/2 now $324.9K.

3 new sales: Sundial #J203 1/1 listed for $425K, Sundial #G101 2/2 listed for $445K. Compass Point #101 3/2 listed for $1.169M.

3 closed sales: Ibis at The Sanctuary Ibis #301 2/2 $421K, Nutmeg Village #107 #2/2 $615K, Plantation Village #B321 3/3 $2.075M. 

HOMES

6 new listings: 1712/1714 Sand Pebble Way 4/2 duplex $399K; 999 Dixie Beach Blvd 3/2 $599K; 9032 Mockingbird Dr 3/2 $649,946; 1490 Middle Gulf Dr 3/4.5 $1.859M; 1137 Golden Olive Ct 5/3.5 $2.275M; 1204 Isabel Dr 3/3.5 $4.1M.

4 price changes: 564 Hideaway Ct 3/2 now $589K, 1717 Windward Way 3/2 now $649K, 1528 Angel Dr 3/2 now $849K, 1272 Isabel Dr 3/3.5 now $3.895M.

8 new sales: 1644 Bunting Ln 3/3 listed for $495K, 660 Durion Ct 2/2 listed for $549K, 1477 Albatross Rd 4/3 listed for $598.8K, 1207 Par View Dr 3/2 listed for $759K, 1674 Sabal Palm Dr 3/3 listed for $865K, 501 Sea Walk Ct 3/2 listed for $889K, 9448 Cotten Ct 3/2 listed for $898K, 1779 Venus Dr 4/5.5 listed for $3.998M.

2 closed sales: 3990 Coquina Dr 3/2 $570K, 1777 Serenity Ln 5/4.5 $754K.

LOTS

No new listings, price changes, or new sales.

1 closed sale: 776 Birdie View Pt $375K. 

Captiva

CONDOS

1 new listing: Bayside Villas #5320 3/3 $650K.

No price changes or new sales.

2 closed sales: Bayside Villas #5230 1/2 $280.5K, Sunset Beach Villas #2218 2/2 $568.5K. 

HOMES

3 new listings: 14981 Binder Dr 3/3 $1.149M, 11500 Chapin Ln 4/4.5 $2.195M, 15009 Binder Dr 4/5.5 $4.295M.

3 price changes: 43 Oster Ct 2/2.5 now $784.9K, 15747 Captiva Dr 6/6.5 now $5.995M, 16428 Captiva Dr 7/8/2 now $9.5M.

1 new sale: 11520 Laika Ln 2/2 listed for $2.75M.

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. 

Our ad in the local “Island Sun” this week including a special thank you to all of our clients, colleagues, and business associates who have contributed toward making it another great year for SanibelSusan Realty Associates. We always are thankful to be living and working on this wonderful island, but especially enjoy thanking those who have helped to make it possible! Best holiday wishes to all! SanibelSusan (Susan Andrews)

Summer Brings Popcorn Clouds to Sanibel & Captiva Islands

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It’s SusanSusan reporting that we have had another quiet week on the islands. The weather has settled into a nice summer pattern of sunny days with an occasional passing shower which is keeping the islands lush and tropical.

The photos below were taken earlier this afternoon as I was on my rounds getting ready for some showings tomorrow. On the photo of the causeway are the storm clouds just off island, then turning the other direction I took the blue sky photo showing San Carlos Bay toward Pine Island Sound. The lake view in The Dunes shows the cloud progression in just a few minutes.

Our summer island joke is that the storms can’t afford the $6 toll, when in reality it probably has something to do with the surrounding water temperature. Some afternoons we get a shower and some we don’t.

Below are a couple of news items followed by the activity posted in the Sanibel and Captiva Multiple Listing Service this week.

July Sanibel & Captiva Islands Association of Realtors® Monthly Membership Meeting

SanCapAssnLogoThere was a good turn-out yesterday at our monthly Association of Realtors® membership meeting which was sponsored by our friends at Barrier Island Title Services, Inc. Janet McBee (owner), Nanci Berlin (manager), Angie Martin (who handles most of my closings), & Jackie Martin were all in attendance. Nanci thanked members for their continued support and reminded us that this is their 25th year in business on the islands. Congratulations!

Sanibel Surveys logoThe educational segment of the meeting included a presentation by Andy Johnson, owner of Sanibel Surveys. Here is some of the information he shared regarding the three control lines on the islands. Andy particularly mentioned that these lines sometimes get incorrectly lumped together and called CCCL’s (Coastal Construction Control Lines) when in fact there are actually three different lines and only one is the true Coastal Construction Control Line today. Below is some info learned from Andy’s presentation as well as some websites:

The Differences in Coastal Control/Setback/Erosion Control Lines

State of FL SealCoastal Construction Control Line (CCCL) – is the line established by the State of Florida that defines that portion of the beach-dune system subject to severe fluctuations based on a 100-year storm surge, storm waves, or other predictable weather conditions. It is part of Florida’s coastal management program and it is regulated through the Florida Department of Environmental Protection. It provides protection for Florida’s beaches and dunes while assuring reasonable use of private property. Property may not be modified or constructed seaward of this line without approval from the State. (See more info on http://www.dep.state.fl.us/beaches/programs/ccclprog.htm.)

Here on the islands, many of us refer to this line as the 1991 line. As part of the sales contract prepared when an offer is written to purchase a property that is forward of the CCCL line, a Coast Construction Control Line rider is required. Note, in the case of a condo purchase, it may be that some of the common elements are in front of this 1991 line, but not the actual unit itself. Since a condo owner usually will own a share of the common elements, like a beach-side swimming pool, a prospective buyer should be made aware of the line if it intersects the property anywhere.

Lee County Setback Line – also sometimes known as the Lee County Coastal Construction Control Line. Lee County first adopted coastal control construction codes in the mid-1970’s. Here, the current CCCL established in 1991 and mentioned above, replaced an earlier 1974 CCCL. Construction seaward of the 1991 CCCL requires a coastal construction permit from the Florida Department of Environmental Protection and Florida Building Code establishes a base flood elevation for buildings located seaward of the 1991 CCCL.

On Sanibel, the state 1974 CCCL was used to establish the Gulf Beach Ecological Zone which is designated for passive recreation and conservation uses only. For that reason, and to add to the confusion, the 1974 CCCL is often referred to as the Coastal Construction Setback Line on Sanibel.

On Lee County websites, a county-wide 1978 CCL is posted on the county aerial maps since that is the map that applied to properties built before the 1991 line was established.

Erosion Control Line – To further complicate things, there is a third line, known as the Erosion Control Line. Captiva residents and businesses have been managing their beaches for decades, improving them as needed with beach renourishment events. CEPD has developed a comprehensive plan to protect the island’s shoreline including support from Federal, State, County and local agencies. The first CEPT renourishment project was in 1961, followed by projects in 1981, 1988, 1996 (this project also included sand on northern Sanibel), 2005 (also including some of Sanibel), and 2013. The land seaward of this line does not convey with a sale.

Want to Find Details on a Specific Property? Realtors®, appraisers, surveyors, insurance agents, and others often use two county on-line resources. Each can be queried by either owner’s name, address, or the property identifier called the STRAP number.

  • http://www.LeePa.org which is the Lee Property Appraiser’s site. It shows property values, deed recordings, legal descriptions, aerial photos, tax code details, and more.
  • http://leegis.leegov.com/leespins/ which is Lee County’s Spatial Information System. It provides some of the same information, but also includes overlays with these control lines shown, where applicable.

Sanibelcityseal logoSanibel Build-Back Ordinance  – In early 2006, Sanibel City Council adopted an ordinance that is important to Sanibel property owners because it clarified and revised the City’s build-back regulations which can relate to properties and improvements seaward of control lines.

These clarifications and revisions to the City’s build-back regulations address when/how nonconforming structures and structures devoted to nonconforming uses, which are substantially damaged by a natural disaster, can be built back.

There are buildings and land uses, within the City, that were lawful when established, but which have become nonconforming under the terms of the Sanibel Plan or the Land Development Code (like a ground-level property seaward of a control line). “It is the intent of the Land Development Code to permit these nonconformities to continue until they are eventually removed, but except as to most nonconforming uses, not to require them to be removed as the result of a disaster, and to allow them to be built back (their reconstruction) after a disaster, subject to reasonable restrictions.”

The City clarified and revised its build-back regulations to ensure that property owners do not suffer the loss of a dwelling unit or a reduction in unit size as the result of a natural disaster. It is also the intent of build-back regulations that nonconforming uses can be reestablished if the building they occupy is built back after a natural disaster. (For more info, the Sanibel Buildback Guide is available on the City’s website at www.MySanibel.com.)

3 Challenges Still Facing the Housing Market

“Daily Real Estate News” on-line on Wednesday said:

realtor logo“Existing-home sales gained momentum in June, reaching an annual pace of 5 million sales for the first time since October 2013, according to the National Association of REALTORS®’ latest housing report. Rising inventories also are pushing the overall supply of homes for sale toward a more balanced market, with unsold inventories 6.5% higher than a year ago, NAR notes.

““Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country,” says Lawrence Yun, NAR’s chief economist. “This bodes well for rising home sales in the upcoming months as consumers are provided with more choices.”

Growing Optimism?

“Still, the market is facing several headwinds that continue to subdue a more robust recovery. NAR noted three in its most recent housing report:

  1. Sluggish new-home construction: While overall housing inventories showed improvement in June, inventory problems continue to weigh on the market and could become more problematic if new-home construction doesn’t increase in more markets, NAR notes. “New-home construction needs to rise by at least 50% for a complete return to a balanced market because supply shortages — particularly in the West — are still putting upward pressure on prices,” Yun notes.
  2. Stagnant wage growth: Yun also noted that stagnant wage growth is holding back what should be a stronger pace of sales. “Hiring has been a bright spot in the economy this year, adding an average of 230,000 jobs each month,” Yun notes. “However, the lack of wage increases is leaving a large pool of potential home buyers on the sidelines who otherwise would be taking advantage of low interest rates. Income growth below price appreciation will hurt affordability.”
  3. Dwindling first-time home buyers: The percentage of first-time buyers continues to be low by historical standards. First-time home buyers made up 28% of the market in June, down from a typical 40% of the market historically.

“NAR President Steve Brown says that some prospective buyers who have above average credit scores but low down payments are being deterred from home ownership by the high cost of FHA mortgage insurance. “Access to affordable credit continues to hamper young, prospective first-time buyers,” says Brown. “NAR recommends that the FHA reduce high annual mortgage insurance premiums for all qualified homebuyers and eliminate the insurance requirement for the life of the loan. The FHA’s HAWK program is a good start, but it should offer further reductions for participating home buyers.”

“Here are some more housing indicators from NAR’s most recent report.

Home prices: Median existing-home prices for all housing types in June was $223,300, 4.3% higher than year-ago levels. This was the 28th consecutive month for year-over-year price gains.

Distressed homes: Foreclosures and short sales accounted for 11% of June sales, a 15% drop from year-ago levels. On average, foreclosures sold for a discount of 20% below market value, while short sales were discounted 11% in June.

Time on market: The median time on market for all homes was 44 days in June, up from 37 days on market in June 2013. Forty-two percent of homes sold in June were on the market for less than a month.

All-cash sales: All-cash sales made up 32% of transactions in June, up slightly from 31% in June 2013. Individual investors, who account for the majority of cash sales, purchased 16% of homes in June, down from 17% in June 2013.

“REGIONAL SNAPSHOT

Take a closer look at how existing-home sales fared in your area.

Northeast: Existing-home sales increased 3.2%, but remain 3% below year-ago levels. Median price: $269,800, an 0.1% decrease from June 2013.

Midwest: Existing-home sales surged 6.2%, but remain 2.4% below June 2013. Median price: $177,900, up 4.6% from a year ago.

South: Existing-home sales rose slightly by 0.5%, up 1% from June 2013. Median price: $192,600, up 3.4% from a year ago.

West: Existing-home sales increased 2.7%, but remain 7.3% below a year ago. Median price: $301,000, up 7.2% from a year ago.”

Sanibel & Captiva Multiple Listing Service Activity July 18-26

Sanibel
CONDOS

2 new listings: Duggers Tropical Cottages #4 1/1 $299K, Signal Inn #14 2/2 $819K.

3 price changes: Duggers Tropical Cottages #5 1/1 now $298K, Shell Island Beach Club #7A 2/2 now $619.9K, Nutmeg Village #209 2/2 now $730K.

2 new sales: Sundial #G407 1/1 listed for $339K, Sundial #J307 2/2 listed for $539.9K.

2 closed sales: Tennisplace #E31 2/1 $280K, Sandals #D 4/3 $1.8M.

HOMES

1 new listing: 1674 Sabal Palm Dr 3/3 $865K.

2 price changes: 2098 Wild Lime Dr 2/2 now $359K, 419 Lighthouse Way 4/3 now $849.9K.

3 new sales: 581 East Rocks Dr 3/2 listed for $495K (short sale), 676 Anchor Dr 3/3 listed for $949K, 566 N Yachtsman Dr 3/2 listed for $995K.

3 closed sales: 553 Lake Murex Cir 3/2 $579K, 1278 Sand Castle Rd 4/3 $721K, 1058 Fish Crow Rd 4/3 $860K.

LOTS

1 new listing: Lot 27, Leisure Acres $199.9K.

No price changes, new or closed sales.

Captiva

CONDOS

No new listings, price changes, or new sales.

1 closed sale: Sunset Beach Villas #2316 1/1 $475K.

HOMES

1 new listing: 16585 Captiva Dr 5/4.2 $2,799,585.

No price changes or new sales.

1 closed sale: 15361 Captiva Dr 5/4 $2.3M.

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.

Til next Friday,  Susan