More Summertime News on Sunny Sanibel

Posted on July 8, 2022 by SanibelSusan

I hope you had a safe happy July 4^th holiday. Sanibel festivities were terrific with the morning weather perfect – bright sunny, with slight breeze, when the parade passed by the office.

I was joined by regulars who like our shady location – which also is just before the judges’ reviewing area. I took plenty of photos which are posted on Facebook (if you are a social media follower).

If you also follow island restaurants, you may be interested in hearing that The Sandbar (Steak & Seafood) recently changed hands. New owner also is the new owner of The Green Flash on Captiva. I had dinner at The Sandbar this week and it was wonderful, busy as always with locals and visitors, so before you go, be sure and make a reservation.

A little more restaurant scoop is that I heard today that Café Italia (currently in the Publix shopping center across the street from the outlet malls) is moving to Sanibel in September. They will be in the location of former restaurants (Bamboo, Il Tesoro, & Twilight Café) at 751 Tarpon Bay Rd, Unit #2, behind the Art Gallery.

Sanibel & Captiva Islands Real Estate News

I was busy meeting a contractor early yesterday so missed the Realtor® bi-weekly Caravan Meeting. Just one property was on tour for viewing after the meeting. The activity posted since last Friday in the Sanibel & Captiva Islands Multiple Listing Service follows some news below.

Now that the year is half over, and inventory is changing slightly, I thought it would be interesting to compare island sales status today to year-to-date sales during the same time last year and 2020. Usually, the most contracts occur and sales close during that “high season”. Though changes in interest rates do not have a huge bearing on island sales, the shift toward a more balanced market has begun (or so it looks to SanibelSusan). There was little new sales activity, this past week. Data below is from the Sanibel & Captiva Islands MLS today.

Status	SANIBEL
	Condos			Homes			Lots			Total
	#	Avg $	DOM	#	Avg $	DOM	#	Avg $	DOM	#	$ change over previous year
For sale	24	1,328,787	64	38	1,956,447	32	10	1,523,160	281	72
Under contract	17	1,055,752	33	16	1,513,625	20	1	145,000	6	34
Sold 1/1-7/8/2022	93	1,147,421	39	125	1,699,504	60	21	621,083	241	239	+31%
Sold 1/1-7/8/2021	187	862,247	144	237	1,299,038	100	53	706,783	462	477	+20%
Sold 1/1-7/8/2020	80	726,294	155	116	993,923	157	4	849,666	423	200

Status	CAPTIVA
	Condos			Homes			Lots			Total
	#	Avg $	DOM	#	Avg $	DOM	#	Avg $	DOM	#	% $ change over previous year
For sale	9	1,593,055	71	9	6,075,307	90	1	15,500,000	104	19
Under contract	0	N/A	N/A	2	5,622,500	45	0	N/A	N/A	2
Sold 1/1-7/8/2022	27	1,468,575	51	19	5,723,973	134	0	N/A	N/A	46	+73%
Sold 1/1-7/8/2021	39	1,006,830	184	34	2,846,629	278	1	2,000,000	129	74	-4%
Sold 1/1-7/8/2020	15	882,666	104	13	3,188,230	332	2	1,925,000	462	30

Is It OK to Self-Insure Our House?

Posted on-line at FloridaRealtors® in late June, this Question/Answer was reposted from the South Florida Sun Sentinel, by Gary M. Singer:

‘As property insurance grows more expensive, homeowners study other options. If an owner has paid off the mortgage, is self-insurance an option?

“FORT LAUDERDALE, Fla. – Question: We own our home outright, without a mortgage. Because of the insurance crisis, what is the feasibility of self-insuring our house rather than renewing our policy at an ever-higher cost? –Thomas

“Answer: Under certain circumstances, it is feasible to go without homeowner’s casualty insurance. Even still, it is rarely, if ever, a good idea or a sound financial policy.

“Banks and other mortgage lenders are good at making money and protecting their investments.

“I often look at what mortgage lenders require of their customers to gauge the risk of a proposed action. For example, when asked whether a homeowner needs title insurance when purchasing a home, I respond that although they are not required by law to have this valuable coverage, every lender I have dealt with requires title insurance when lending money.

“If a bank thinks it is necessary to protect their investment in your asset, you should afford yourself the same protection. Lenders also require their borrowers to have a casualty insurance policy for many of the same reasons.

“Most people think of insurance as covering the small events – a fender bender, prescription drugs or a leaking water heater. While this is important, minor claims rarely exceed the cost of the policy, especially when considering the deductible.

“When insurance shines is when the rare severe event happens. Not having health insurance and developing a serious health condition bankrupts many people. A dented fender is easy enough to live with, but replacing a totaled car can cost decades of car insurance premiums.

“Similarly, if your house suffers a significant casualty – for example, a lost roof and flooding from severe weather, a fire, or even a guest hurting themselves on your lawn – the costs to the homeowner can be more than a lifetime of insurance premiums.

“While no one enjoys paying their insurance bills, especially when they seem to increase every year, it still makes sense to grit your teeth and write a check.”

Upcoming BIG ARTS Community Chorus Concerts

If you are a follower of the BIG ARTS Community Chorus, you may be interested in marking your calendar for their upcoming concert events. As a chorus alto since the beginning in 1992, the pandemic caused SanibelSusan to miss a couple of seasons. Here’s hoping that things are back to more normal this fall. If you are interested in singing with us, please let me know and I will get you on our message alerts.

The chorus Holiday Concert will be Wednesday December 7 at 7 p.m. in BIG ARTS Christensen Auditorium.

The spring concert also at 7 p.m. in BIG ARTS Christensen Auditorium is scheduled for Wednesday March 29, 2023.

Also in spring 2023, a new special concert is scheduled. This one, at the same BIG ARTS location, will be Tuesday April 4 at 6:30 p.m. and a combined effort with the singers of the Sanibel School Seahorse Chorale, under the direction of Joey Giangreco..

Sanibel & Captiva Islands Multiple Listing Service Activity July 1‑8, 2022

Sanibel

CONDOS

2 new listings: Sundial #C310 1/1 $875K, Wedgewood #104 3/3.5 $3.695M.

No price changes.

3 new sales: Seashells #9 2/2 listed at $650K, Sandalfoot #2A2 2/2 listed at $850K, Sundial #N301 3/2 listed at $1.328M.

1 closed sale: Colonnades #10 1/1 $455K.

HOMES

5 new listings: 531 Birdsong Pl 3/2 $799K, 1289 Par View Dr 3/2 $1.1M, 1018 S Yachtsman Dr 3/3 $1.295M, 917 Lindgren Blvd 3/2 $1.692M, 9020 Mockingbird 3/2 $1.795M, 5855 San-Cap Rd 3/2 $2.275M.

3 price changes: 446 Lake Murex Cir 2/2 now $899K, 1382 Tahiti Dr 3/2 now $995K, 437 Lake Murex Cir 5/3 now $1.95M.

1 new sale: 1031 Bird Watch Way 3/2 listed at $950K.

3 closed sales: 1236 Sandcastle Rd 2/2 $932,111, 1710 Dixie Beach Blvd 3/2 $2.195M, 2915 Wulfert Rd 5/5.5 $3.495M.

LOTS

Nothing to report.

Captiva

CONDOS

No new listings.

1 price change: Tennis Villas #3113 1/1 now $535K.

No new or closed sales.

HOMES

No new listings, price changes, or new sales.

1 closed sale: 1114 Schefflera 4/3.5 $3.6M.

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

June on Sanibel & Captiva – More Inventory & Other News

Posted on June 10, 2022 by SanibelSusan

It’s Susan, reporting another sunny Sanibel Friday. Lee County schools are out, family vacations are beginning, and plenty of spring/summertime fun events are being announced.

Luckily, the heavy rains last weekend, didn’t cause much long-term flooding and it resulted in some terrific shelling for those enthusiasts. Now that the ground is saturated, islanders will be keeping a close eye on future rainy events. Meanwhile, the Anchor Dr bunnies are loving the juicy vegetation at my house. There were two munching in my yard this morning as I headed out to work. I love those little guys!

Sanibel & Captiva Islands Association of Realtors®

Some good news at the Sanibel & Captiva Islands Association of Realtors® Caravan meeting yesterday. As incoming Association Prez, Realtor® Greg Demaras mentioned in his opening remarks, there has been 100% increase in Sanibel home listings compared to ten days ago when there were only 11 homes for sale. (Actually, today the number of Sanibel homes available according to the islands MLS is up to 26. More inventory is becoming available.)

The other percentage mentioned was that the number of properties open for Caravan viewing was up 400% from the last meeting two weeks ago, when there was only one available to see. These may be subtle market changes, yet still worth watching.

One of the properties open for Caravan viewing was our new listing on South Yachtsman Dr. The action posted in the island Multiple Listing Service (MLS) since last Friday follows a couple of news items below.

2022 SCIS Designation Classes

Also. yesterday morning, I taught the 2022 Resort & Second-Home Market module for the Sanibel & Captiva Islands Specialist (SCIS) designation.

My 10^th year teaching that class and it’s always fun. The 12 attendees this year included nine taking the classes or the first time and three Realtors® working on their renewal.

They all tolerated my insistence that the class photo be taken with them wearing funny resort-wear props.

Wishing them much success in their resort & 2nd home market business.

Governor DeSantis Vetoes SB 2508

Posted Wed, Jun 8, 2022 by Sanibel-Captiva Conservation Foundation (SCCF):

“Today, in a move that is a significant win for Florida’s environment—Governor DeSantis exercised his executive power to veto Senate Bill 2508. This bill would have undermined the extensive work by SCCF and our partners to base the Lake Okeechobee System Operating Manual (LOSOM) on sound science and an equitable distribution of water. It would have had a chilling effect on water management decisions related to discharges from Lake Okeechobee, perpetuating the harmful “hold and dump” practices that currently allow for high-volume discharges to our coastal communities during the wet season. In addition, the bill would have accelerated the destruction of wetlands by allowing private reviewers to process expedited dredge and fill permits for utilities, resulting in further deterioration of water quality. Furthermore, it would have negatively impacted the Florida Forever land acquisition program by allowing the Florida Department of Agriculture and Consumer Services to compete with the Department of Environmental Protection for state funding.

“We thank Governor DeSantis for demonstrating great political courage in vetoing this harmful bill. Our coastal communities in Southwest Florida have been devastated by declining water quality and harmful algal blooms for far too long. The red tide bloom in 2018 resulted in more the 425 tons of dead sea life being removed from the beaches of Sanibel, and more than $47 million in economic losses. Scientists with SCCF and the University of Florida’s Center for Coastal Solutions recently published data linking pollution from stormwater runoff and harmful algal blooms. We now know that preventing harmful nutrients from reaching the coast is one way to reduce the extent and severity of red tide events in the future. This is not only critical for the ecology of our coastal waters, but it is also essential for protecting the quality of life of our residents, and Florida’s economy.

“SCCF remains engaged in the LOSOM process with the Army Corps, South Florida Water Management District, and our environmental partners to eliminate the harmful discharges that contribute to harmful algal blooms. With extensive modeling we have demonstrated that an equitable distribution of water can meet the needs of all stakeholders without any being sacrificed. By vetoing 2508, Governor DeSantis has confirmed that he is listening to stakeholders, and will not let politics take priority over sound science.

“We sincerely thank all of you who spoke out against this harmful bill.”

Housing Market Is Strong – But Time to Sell?

Posted Mon, Jun 6, 2022 on FloridaRealtors® and sourced to Daily Commercial, by Don Magruder. He is the CEO of Ro-Mac Lumber & Supply Inc., and he is also the host of the “Around the House” Show which can be seen at AroundtheHouse.TV. More good news here about Florida.

“Housing remained resilient – Fla. more than many states – but signs suggest a slowdown in price increases. Still, investors moving away from stocks may be a wild card.

“NEW YORK – The Florida and national housing market remain very strong by every metric, but the overall health of the United States’ economy, inflation worries, interest rate hikes, and the downward spiral of many investment markets are starting to create some buts in the housing forecast long-term.

“The overall economy will affect housing especially regarding increased interest rates, but through the first quarter of 2022, housing has been very resilient.

“In March, per the United States Census Bureau, United States housing starts hit an annual seasonal rate of 1,873,000 which was 0.4% higher than February, and 6.7% above the previous year.

“Within those numbers, single-family homes cooled by almost 5%, but multi-family housing bolstered the sector to an increase. Because of the COVID-19 pandemic, multi-family housing projects have been delayed, but with the current rental demand, most expect multi-family housing to grow.

“The dirty secret about these numbers is that starts would have been higher if not for supply chain woes. Housing starts and production are being suppressed because of serious supply chain issues throughout the country.

“The Monthly New Residential Sales report from the Census Bureau tells a different story, which may suggest interest rates and the economy may be slowing new home sales. Sales were 763,000 units which is 12.6% below the previous year, but the median price rose to $436,700 with a 6.4-month supply at current sales volume.

“The buyers remain in the market, but many are being priced out by higher interest rates and soaring prices for homes. This may be an inflection point in which home sellers will have to start reducing the prices to attract buyers since the low interest rate environment is going away.

“Some point to the fact that a late winter weather surge could have hampered sales in March and getting buyers back in the market may soon become a priority for sellers. In short, housing prices coupled with higher interest rates are too much for many buyers.

“Florida’s housing numbers are somewhat robust as compared to the national housing markets. Florida Realtors® reports that first quarter sales of housing were down 2.6% compared to the previous year, but housing inventories across the state were down to 1 month or a 10.2% drop as compared to the previous year.

This indicates sales were subdued because there were simply not enough houses in the market for sale. Additionally, the median sales price jumped 21.3% from the previous year to $385,000 while new listings for the quarter were flat from the year before.

“Here is another key fact; homes on the market were down to 53 days as compared to 64 days a year ago. The Florida housing market remains red hot, and builders simply cannot build enough units timely with all the supply chain disruptions.

“Two other big facts about Florida’s housing market that cannot be ignored are the percentage of cash sales for new homes and the rate of foreclosures. For the first quarter, cash buyers made up 33.5% of all the homes sold while foreclosures across the state were down 34.8% to a measly 362 units, which is nothing for a state of 23 million people. It seems money is moving out of Wall Street and other investments to real estate, and that most homes are in good shape financially.

“With all these first quarter numbers and economic data, where does the housing market go the rest of 2022? First, the Florida market will probably be one of the most robust markets in the country, but all markets, including Florida’s, will start seeing some capitulations in housing prices.

“Low interest rates have shielded sellers for some time, and with a forecasted rise in interest rates in June and July of half points on top of the May half point increase, something has got to give on pricing.

“What about Wall Street investors? Here is the big but: Do large amounts of money flow out of riskier investments on Wall Street and cryptocurrency find a safe haven in real estate? That is a possibility as builders and investors build rental housing for a population dealing with a lack of housing.

“Unlike some of the funny money investments on Wall Street, housing does provide one huge advantage as a tangible investment that delivers real value like a place to live and a nice tax advantage, plus there is a genuine need for more housing in America.

“It appears housing will cool some in other parts of the country, which should help ease supply chain disruptions. Additionally, pricing overall will moderate, probably knocking out the over-exuberance; but in Florida, unless the economic conditions deteriorate significantly, expect housing to remain strong.

If you are a home seller, the environment suggests you sell sooner rather than later.”

Sea Turtle Update

Posted Tues, Jun 7, 2022 by SCCF (Sanibel-Captiva Conservation Foundation). All sea turtle research and monitoring is conducted by trained individuals operating under Marine Turtle Permit #047:

“As of today, 296 loggerhead and 3 green turtle nests have been laid on Sanibel and Captiva Islands! Fortunately, the impacts of last weekend’s storm on our nests were minimal and we only lost 5 on both islands to storm surge.

“Sea turtles have a nesting strategy that accommodates for natural events such as storms. Each nesting female turtle deposits several nests throughout the duration of the nesting season – essentially hedging her bets to make sure that even if a storm hits at some point during the nesting season, there is a high probability that at least a few of the nests will incubate successfully.

“If you see a new nest on the beach that hasn’t been marked yet, please keep your distance. While well intentioned, marking it with beach objects or walking on the tracks makes it much more difficult for our staff and volunteers to interpret the field signs. To help our sea turtles, please remember to turn off all white lights visible from the beach (including flashlights), fill in holes at the end of the day, and remove furniture from the beach at night.”

Volunteers Needed for Beach Bucket Program!

Coastal Watch has partnered with the City of Sanibel and Bailey’s General Store to install Beach Bucket Stations at a few Sanibel beach access points. The project objective is to provide beachgoers with a vessel to collect trash as they enjoy the beach. The stations will be located at Lighthouse Beach, Tarpon Bay Beach, and Bowman’s Beach. They are looking for volunteers that frequently visit these areas or live close by, who are willing to check on the stations and make sure all buckets are accounted for and in good condition. If interested email coastalwatch@sccf.org.

At SanibelSusan Realty Associates

Join Dave, Lisa, and I as we wish our long-time teammate, Elise, well in her new position beginning Monday at Florida Gulf Coast University. We have worked together so long; she is like family.

Our loss is FGCU’s gain. Plus, she sure will enjoy her commute going from hours to just minutes. Best wishes on your new adventures, Elise!

Sanibel & Captiva Islands Multiple Listing Service Activity June 3-10, 2022

Sanibel

CONDOS

3 new listings: Sandalfoot #1A3 2/2 $1.175M, Sundial #F403 2/2 $1.325M, Sanibel Surfside #122 2/2 $1.54M.

3 price changes: Sanibel Arms West #B8 2/2 now $875K, Gulf Beach #107 2/2 now $999K, Sanctuary Golf Villages #5-2 3/3 now $1.198M

4 new sales: Seawind #110 2/2.5 listed at $895K; Tarpon Beach #105 2/2 listed at $1,297,555; Pine Cove #101 3/2 listed at $1.65M, Gulfside Place #101 3/3 listed at $2.495M

1 closed sale: Sundial #B206 2/2 $1.3M.

HOMES

8 new listings: 1236 Sand Castle Rd 2/2 $929K, 1031 Bird Watch Way 3/2 $950K, 1835 Farm Trl 3/2 $993K, 4052 Coquina Dr 3/2 $1.25M, 9409 Moonlight Dr 3/2.5 $1.282M, 671 Durion Ct 3/2 $1.395M, 585 Chert Ct 3/2 $1.549M, 437 Lake Murex Cir 5/3 $2.199M.

2 price changes: 446 Lake Murex 2/2 now $934K, 947 Lindgren Blvd 3/2 now $1.456M.

1 new sale: 4612 Rue Belle Mer 3/2 listed at $1.495M.

2 closed sales: 4577 Brainard Bayou Rd 3/2 $771K, 1196 Sand Castle Rd 2/2 $875K.

LOTS

1 new listing: 1994 Wild Lime Dr $350K.

1 price change: 3005 Turtle Gait Ln now $995K.

No new sales.

1 closed sale: 3938 West Gulf Dr $853,750.

Captiva

CONDOS

No new listings, price changes, or new sales.

2 closed sales: Marina Villas #790 2/2 $10925M, Lands End Village #1610 3/3 $3.6M.

HOMES

1 new listing: 16163 Captiva Dr 3/2 $4.125M.

1 price change: 11517 Andy Rosse Ln 4/4.5 now $4.995M.

No new sales.

1 closed sale: 15261 Captiva Dr 4/4.5 $10.25M.

LOTS

Nothing to report.

Until next Friday,

Susan Andrews, aka SanibelSusan

Coming Up on Memorial Day Weekend 2022 on Sunny Sanibel

Posted on May 27, 2022 by SanibelSusan

Another quiet week is wrapping up on the islands and at SanibelSusan Realty. Summer-like weather has made for warm sunny days, some with record high temperatures, but with occasional evening showers cooling things down and contributing to springtime growth spurts. After an extended drought, things are greening up here and many flowering trees still are busting blossoms.

Turtles and tortoises are on the move depositing their eggs. Winter birds are migrating north, along with the people-birds aka snowbirds, while our year-‘round avian friends including snowy plovers, herons, and owls also are producing offspring.

Not to be missed, the baby bunnies are back, both at my home and office. It’s nice to say that traffic again is light, while wildlife continuing abundant.

Sanibel & Captiva Islands Association of Realtors®

Yesterday was the May monthly membership meeting at the Association of Realtors®. No longer offered via Zoom, it was great to see more in-person attendees including a couple of new affiliates. Due to an unexpected speaker cancellation, the two meeting sponsors, David Wright from Sanibel-Captiva Community Bank (SanCap Bank) and David Arter from Private Client Insurance Services (PCIS) provided quick updates on their businesses.

Mortgages – David Wright, SanCap Bank, said now is the first time in his lifelong lending career that portfolio loans at his bank have better terms than government-backed financing. Though SanCap Bank still offers loans from many outside sources, including Fannie & Freddie, their in-house offerings are at lower rates/points and can be quickly approved, right at his desk. (Just another excellent reason to bank local.)

Insurance – David Arter, PCIS, provided highlights from the Special Florida Legislative Session about property insurance that wrapped up late Wednesday. Though not signed into law just yet, the measures passed by lawmakers this week may not immediately reduce premiums, but they do get at the heart of the problem and will have a long-term positive effect on stabilizing insurance in Florida. It took lawmakers three days to debate, discuss, and ultimately pass some significant property insurance reforms that will go a long way in helping to alleviate Florida’s ongoing property insurance crisis. Some of the topics included:

Improving affordability for policyholders through a new $2 billion 2-year program
Improving accessibility and protecting policyholders from nonrenewal
Preventing fraud in claims
Holding insurers accountable
Creating more consumer choice on roof repairs
Transparency to improve the marketplace for consumers
Curbing unscrupulous roof claims
Home hardening grants to help Floridians make homes safer.

Caravan – During the Caravan segment of the meeting, there were no new sales or new island listings announced, also no price reductions. One property was open for Caravan viewing (Gulfside Place #101). Next Caravan is in two weeks, on June 9.

After a couple of news items below is the action posted since last Friday in the Sanibel & Captiva Islands Multiple Listing Service. Here at SanibelSusan Realty, yesterday we received a new canal-front home listing. As we work on some advance marketing, we also await departure of May renters so that our photographer may film next week – for a “best first impression” when the listing is promoted worldwide.

Today, according to the Sanibel-Captiva MLS, on Sanibel, there are 14 homes, 21 condos, and 8 lots for sale. Captiva has 8 homes, 8 condos, and 1 lot. Inventory is creeping up, but just a little.

Lawmakers Pass Condo Reforms

The same special session for insurance reform discussed above was expanded to include condominium reform in response to the tragedy in Surfside, FL last June. Lawmakers acted quickly on this, unanimously passing a Building Safety bill in both chambers. It provides several measures designed to increase building safety and prevent the types of issues that lead to the Surfside collapse. Specifically, the bill:

Creates a statewide “milestone inspection” requirement for condos and cooperative buildings three stories or higher 30 years after initial occupancy, and 25 years after initial occupancy for buildings located within three miles of the coast.
Requires inspections every 10 years after a building initial “phase 1” inspection.
Requires an additional, more intensive inspection, or a “phase 2” inspection if a building initial inspection reveals substantial structural deterioration.
Beginning in 2024, condo associations are required to conduct a structural integrity reserve study at least every ten years and prevents needed reserves from being waived.

Florida’s Economic Resiliency

This week, Florida Chief Financial Officer Jimmy Patronis issued a report which outlines how Florida’s economy outpaced the nation. Key findings of the report show even after the global pandemic, Florida’s economy continued to grow and outpace the U.S. economy; Florida’s finance and real estate industries suffered no economic dip; and Florida’s COVID-19 policies allowed Florida’s economy to make a quick rebound leading to exceptional growth.

A Recession Does Not Equal a Housing Crisis

The one thing every Homeowner needs to know about a recession is that a recession does not equal a housing crisis. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession as “a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”

To help show that home prices don’t fall every time there’s a recession, requires a look at the historical data. There have been six recessions in this country over the past four decades. As the CoreLogic graph shows, going all the way back to the 1980s, home prices appreciated four times and depreciated only two times.

That first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

Bottom Line – We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History shows a recession doesn’t equal a housing crisis.

Remodel Underway at SCCF Nature Center

Earlier this month, contractors started extensive renovations to transform the former Sanibel-Captiva Conservation Foundation (SCCF) Nature Center into an energy-efficient collaborative space intended for more interaction among staff members and volunteers, and with visiting scientists.

The design by Sanibel architect (& Sanibel Chorus fellow alto) Amy Nowacki features more than 20 offices and workstations, an indoor lab space, bathrooms with shower for those commuting by bike or coming in from the field, outdoor decks, and solar panels. The remodel is being done by Benchmark General Contractors and is expected to be completed in November. It will also include a reception area with space for volunteers and a large board room with seating for 42 people for presentations.

Originally constructed in 1977, the aging structure was no longer meeting the needs of the organization, which currently employs a staff of 36 at five different locations across Sanibel. For more than 40 years, the building was a popular visitor attraction that once featured a touch tank, box turtle and indigo snake exhibits, a gift shop, and a butterfly house. It also offered regular educational programs on wildlife and island ecosystems.

Stay tuned for a community celebration with a ribbon-cutting for the freshly renovated facility in November. Click here to see a story map of all SCCF Trails and facilities.

Sanibel & Captiva Islands Multiple Listing Service Activity May 20 ‑ 27, 2022

Sanibel

CONDOS

4 new listings: Spanish Cay #A4 2/2 $649.9K, Seawind #A110 2/2.5 $895K, Sanibel Arms #G8 2/2 $1.295M, Seascape #302 3/3.5 $2.495M.

No price changes.

3 new sales: Loggerhead Cay #323 2/2 listed at $850K, Seawind #A106 2/2.5 listed at $899K, Compass Point #201 2/2 $939K.

1 closed sale: Breakers West #A4 2/2 $825K.

HOMES

5 new listings: 542 Boulder Dr 2/2 $1.195M, 1313 Seaspray Ln 3/3 $1.895M, 2729 Wulfert Rd 4/4.5 $2.148M, 1740 Dixie Beach Blvd 3/2.5 $2.625M, 4353 Gulf Pines Dr 3/2.5 $2.85M.

No price changes.

3 new sales: 1545 Serenity Ln 3/2 listed at $799K, 1827 Middle Gulf Dr 2/2 listed at $950K, 1270 Par View Dr 3/2 listed at $1.699M.

4 closed sales: 6471 Pine Ave 2/2 $935K, 733 Durion Ct 3/2 $1.6M, 746 Windlass Way 4/3 $2.15M, 1543 San Carlos Bay Dr 4/4 $2.25M.

LOTS

Nothing to report.

Captiva

CONDOS

1 new listing: Sunset Beach Villas #2235 4/3 $1.979M.

No price changes or new sales.

4 closed sales: Beach Villas #2418 2/2 $1.2M, Marina Villas #901 2/2 $1.2M, Beach Villas #2324 2/2 $1.295M, Beach Villas #2438 3/3 $1.55M.

HOMES

1 new listing: 11524 Andy Rosse Ln 5/5.5 $3.995M.

No price changes or new sales.

3 closed sales: 17201 Captiva Dr 5/4.5 $5.5M, 16280 Captiva Dr 6/6 $8.6M, 15855 Captiva Dr 4/3.5 $8.795M.

LOTS

Nothing to report.

Wishing you a safe thoughtful Memorial Day weekend.

Susan Andrews, aka SanibelSusan

It’s Graduation Weekend for Lee County High School Seniors!

Posted on May 20, 2022 by SanibelSusan

Another Friday has arrived, again without much rain this week until a front from the Caribbean quickly passed through last night, waking many in the wee hours of this morning. Good thing I did a quick drive by one evening on the way home to see my favorite Apple Blossom Cassia tree (at Sanibel Moorings). Betcha the raindrops damaged its splendor.

Forecasters say this weekend will bring more evidence that the rainy season has begun. We hate to see the sparkling clear waters surrounding the islands get stirred up, but that typically is what happens during summer storm season.

Today, SCCF (Sanibel-Captiva Conservation Foundation) issued its weekly water quality report, which shows good conditions now, probably contributing to great fishing with 54 catches last Saturday at the “Ding” Darling & Doc Ford’s Tarpon Tournament.

SCCF photo of Lighthouse beach

There was no Association of Realtors® meeting yesterday, while here in the office, almost all our listings are sold. One more is scheduled to close early next week. After a couple of news items below is all the action posted in the island Multiple Listing Service since last Friday.

First, this weekend is graduation for Lee County high school seniors.

Best wishes to teammate Elise’s son Ryan who gets his diploma on Saturday… and is heading next to Florida Gulf Coast University (FGCU). Congratulations, Ryan (and family!.

Sanibel City Council Scoop

City Council held its regular meeting on May 3. A couple of their key decisions were:

Traditional fourth of July fireworks display was approved. This will be the first since 2019.
Road resurfacing project to be completed this summer on Sanibel-Captiva Rd between Tarpon Bay and Rabbit Rd.
Share-use path system-wide repairs approved, to be complete by Nov.

Sellers Feel Shame if They Don’t Get Bids

Posted last Friday (May 13, 2022) on FloridaRealtors® and sourced to Realtor.com (May 12): “Some sellers hear about today’s bidding wars and pre-emptively overprice their home, only to feel shame – “What’s wrong with my house?” – if no bids come in.

“CHICAGO – Homes are selling within days or even hours – except for the homes that aren’t. When that happens, those homes’ owners say they often feel embarrassed and angry and wonder what could be wrong with their house.

“In the current seller’s market means, many homes end up in bidding wars. Fierce competition is the talk of the town and the topic of many media stories since 87% of March home sales were listings on the market for less than a month. Half of properties typically stayed on the market for only 17 days, according to the National Association of Realtors® (NAR).

“But home sellers with different experiences say their egos were bruised. Jessica Clark in Lincoln, Neb., says she and her husband were trying to sell their home in late 2020, which initially looked promising for a quick sale. They had constant buyer tours – but they received no offers. “We felt defeated and so worried,” she says. Their house lingered on the market for more than a month, while other homes were selling within days. Finally, they received an offer below the asking price, even though they heard everything else was selling for way above asking price. “It wasn’t the best,” she told realtor.com. “But we felt forced to accept.”

“Sellers whose homes linger on the market may need to have a heart-to-heart talk with their real estate agent about the next steps to renew interest. Could their house be priced too high? More sellers are having to drop their asking prices. Also, discuss what is turning off buyers. Are repairs needed? A real estate agent could suggest home staging, decluttering, or even minor renovation to help boost interest.

““A hot market leads people to believe that, because the house down the street had a bidding war and fast sale, they will follow suit,” says Laurie Leinwand, a licensed professional counselor of Three Steps Forward. “When reality falls short, there’s disappointment. Your objective is to sell. Let go of the timeframe. It will happen when it’s supposed to. If it takes a little longer, that’s OK.””

What Locals Are Saying

Here on Sanibel and Captiva, there have been similar discussions – same subject as above. A couple of Realtors® at our Caravan Meeting last week said, “with so little for sale here, if listings aren’t selling, they either are overpriced or in need of help.” That pretty much agrees with the above article.

Below is a quick summary of how long it has been taking island properties to sell (days-on-market). Note DOM (days-on-market) are the number of days from when a listing appears in the MLS until it either goes under contract or closed. Amounts shown are averages. Also, a “pending” contract has no contingencies, is just awaiting (or pending) closing.

Hard to believe there are just nine Sanibel homes for sale today! That’s a new record low and compares to 112 homes already sold/under contract year-to-date.

Status	Sanibel						Captiva
	Condos		Homes		Lots		Condos		Homes		Lots
	#	DOM	#	DOM	#	DOM	#	DOM	#	DOM	#	DOM
For sale	17	79	9	56	8	297	7	34	8	60	1	55
Under contingent contract	11	18	13	15	4	116	6	43	2	99	0	N/A
Under pending contract	8	20	25	24	0	N/A	2	12	3	141	0	N/A
Sold 2022 thru 5/20	73	42	94	70	18	245	15	44	13	142	0	N/A
Sold 2021	287	113	355	89	69	442	64	145	44	261	2	731
Sold 2020	193	174	289	161	23	393	47	134	27	315	4	448

Islands Night Tickets

Islands Night at Hammond Stadium has been happening since 1993. This year, 30 years after introducing this local celebration, Bailey’s General Store has turned over management and promotion of the event to the Sanibel & Captiva Islands Chamber of Commerce. 2022 Islands Night will be Wed, June 1, when the Fort Myers Mighty Mussels meet the Tampa Tarpons for an evening of baseball, including a pre-game parade, and islander camaraderie. Gates open at 6 p.m., the parade starts at 6:15, and game time is 7 p.m. Free tickets are available at the Chamber visitor center, Huxters Market & Deli, and any retailers at Bailey’s Shopping Center. Sponsorships also are available, find more details under the Calendar of Events at www.Sanibel-Captiva.org.

Shoreline Stabilization Project Begins on Woodring

This week, installation of a living shoreline began on Woodring Rd. This project is scheduled to complete in 90 days, weather permitting. For years, the area has been prone to erosion during storms and high winds. The living shoreline will help reduce erosion while providing habitat benefits for fish and wildlife. These shorelines incorporate the use of structural and organic materials such as wetland plants, oysters and sand, with limited use of rock and concrete. The project funding is by a grant from the Florida Department of Environmental Protection Resilience Implementation Program.

Sanibel & Captiva Islands Multiple Listing Service Activity May 13 – 20, 2022

Sanibel

CONDOS

2 new listings: Seawind #A106 2/2.5 $899K, Sanctuary Golf Villages I #3-5 2/2.5 $1.299M.

1 price change: Sanibel Surfside #116 2/2 now $1.495M.

5 new sales: Pelicans Roost #302 2/2 listed at $1.389M, Sanddollar #B301 2/2 listed at $1.699M, White Pelican #124 2/2 listed at $1.699M, Atrium #301 3/3 listed at $1.949M, Somerset #A301 3/2.5 listed at $3.25M.

2 closed sales: Captains Walk #D5 2/1 $569K, Sanibel Arms West #H7 2/2 $890K.

HOMES

1 new listing: 1270 Par View Dr 3/2 $1.699M.

No price changes.

6 new sales: 1752 Serenity Ln 3/2 listed at $899K, 2010 Wild Lime Dr 3/2 listed at $1.1M, 1985 Wild Lime Dr 3/2 listed at $1.299M, 4202 Old Banyan Way 3/2.5 listed at $1.511M, 4640 Rue Belle Mer 3/3 listed at $2.495M, 1558 San Carlos Bay Dr 3/3.5 listed at $4.35M

4 closed sales: 1072 Blue Heron Dr 3/2 $939K, 1560 Royal Poinciana Dr 3/2 $1.475M, 1311 Sand Castle Rd 3/2 $1.475M, 824 Birdie View Pt 3/3 $1.75M.

LOTS

Nothing to report.

Captiva

CONDOS

1 new listing: Tennis Villas #3113 1/1 $569K.

No price changes, new or closed sales.

HOMES

1 new listing: 11505 Gore Ln 5/5 $3.89M.

1 price change: 11529 Andy Rosse Ln 4/4 now $4,298,765.

1 new sale: 16221 Captiva Dr 5/5.5 listed at $7.25M.

No closed sales.

LOTS

Nothing to report.

Until next Friday, enjoy!

Susan Andrews, aka SanibelSusan

Sanibel/Captiva Springtime Wonderfulness Is Now

Posted on April 29, 2022 by SanibelSusan

Though the islands continue to need rain (heard on the local news that SW FL is about 5” behind normal accumulation), traffic now is nearly perfect with very few waits anywhere. Midweek, I did a quick drive-around to some of the island resorts and beach accesses. Plenty of parking everywhere and several hotels/condos had few cars.

Back when I used to vacation on Sanibel, we always said the best months are May and October – schools still in session, weather not too hot or too cold, and traffic light, with not as many visitors here then. It surprised me to see such a drastic change in occupancy post-Easter as last year after “season” during the pandemic, occupancy stayed quite high. I guess folks are traveling again – and not just to Sanibel and Captiva.

New Island Businesses

Sometimes social media is ahead of the curve on scoop. two new Sanibel businesses were mentioned on Facebook this week:

Island Seafood Market Sanibel recently opened at 2330 Palm Ridge Rd. Hours are Monday through Saturday 9 a.m. to 4 p.m. (closed Sundays). They advertise that they are family owned and operated, specializing in local seafood. They own their boats and catch their fish!
JRods Surf, Fish & Style is officially opening May 1 at 630 Tarpon Bay Rd. They already are selling merchandise through their website ShopJRods.com

1^st Sea Turtle Nesting of 2022 Season

Following up on last week’s post by SCCF that the 2022 sea turtle nesting season has begun (April through October), the first loggerhead turtle nest was spotted and staked Wednesday morning (April 27), the same day that the first nest was discovered last year. Don’t forget to keep the beaches clean and unlit after dark. More tips at http://www.SanCapLifesavers.org

Historical Museum & Village Switches to Summer Hours

Sanibel’s museum and village at 950 Dunlop Rd changes to off-season summer hours on May 3. Those are Tuesdays through Saturdays from 10 a.m. to 1 p.m. The museum also will close on August 1 and reopen October 18, going back then to their regular in-season hours which are Tuesdays through Saturdays from 10 a.m. to 4 p.m. Guided tours are at 10:30 a.m., depending on docent availability. For more info, visit http://sanibelmuseum.org

Summer Fees for Wildlife Drive

At the J.N. “Ding” Darling National Wildlife Refuge, admission fees for Wildlife Drive remain the same after season ends. The $10 vehicle fee, however, is good for three days starting May 1 and running through September. Show receipt at entrance booth when returning. Daily fees for bikers and walkers remain $1 each visit for visitors age 16+.

Real Estate Scoop

April Association of Realtors® Breakfast Meeting – Yesterday was the monthly breakfast meeting of the Sanibel & Captiva Islands Association of Realtors®. Speaker was J.P. Fraites, Florida Realtors® Public Policy Rep. He provided highlights from the 2022 Florida legislative session which ended last month and produced the largest state budget ever (well over $100 billion). He highlighted several items including great strides in affordable housing (particularly for first responders, teachers, and medical workers) and, of particular interest to islanders, a record $1.6 billion for various water quality initiatives.

He also mentioned how Gov DeSantis has called a special session for May 23-27, bringing lawmakers back to the Capitol that week to address problems in the property-insurance system. Though there were changes to Florida insurance law in 2021 including limiting fees of attorneys who represent homeowners in lawsuits against insurers and a reduction to two years to file claims, the House and Senate were unable to agree on another bill.

Other unfinished issues included proposals to change building codes, like putting additional inspection requirements on condominium buildings. Like insurance, that likely will come up again in 2023.

Association of Realtors® Summer Schedule – During the summer, the Sanibel & Captiva Islands Association of Realtors® weekly Caravan Meetings change to bi-weekly. That usually doesn’t occur until June, but with so few new listings this year, that schedule will begin now. The next caravans will be May 12 and 26, with the monthly Membership breakfast meeting also on May 26.

Only one new listing was announced at the meeting, an off-island listing. According to the Sanibel & Captiva Islands Multiple Listing Service (MLS), today the islands together have just 20 condo, 20 homes, and 11 residential lots for sale – just 51 properties. That is compared to 185 closed and 75 pending sales year-to-date.

After a couple of news items below is the action posted in the local MLS since last Friday.

What Are Novice Sellers’ Top 3 Mistakes?

This article from the May 2022 issue of “Florida Realtor®” magazine:

“With soaring home prices and high demand, homeowners find it a great time to sell. But some sellers – particularly first-timers – may be so caught up in the “hot housing market” headlines that it clouds their expectations.

“Real estate professionals shared with realtor.com some of the mistakes of rookie home sellers in the current market:

“Unrealistic price expectations: It’s a seller’s market, but that doesn’t mean a sky-is-the-limit pricing strategy will work. “First-time sellers often erroneously believe that the list price means the desired purchase price,” says Lindsay Reishman, founding partner at the Reishman Group in Washington, D.C. “In fact, the list price simply indicates an approximate appropriate price, and its purpose is to drive interest to the property.”
“Accepting the highest offer: Some buyers make giant bids to beat out the competition, but those offers can fall apart. Real estate pros say some sellers become so focused on the highest number that they overlook a bid’s reliability. Home offers can fall apart for a number of reasons, including financing, appraisals or inspections. “In this market, it’s not uncommon for a buyer to submit an offer for a home sight unseen,” says Deborah Ann Spence, a broker at Fierce Real Estate Corp, in Bala Cynwyd, PA. “Then, if the buyer doesn’t like what he eventually does see, the offer can be withdrawn, and the property is likely to lose traction.”
“Trying to FSBO: “For sale by owner” may tempt homeowners who believe a seller’s market offers them an opportunity to DIY their home sale. However, the FISBO route could limit the home’s exposure to larger pools of buyers since FSBOs can’t be listed on the multiple listing service. And even if the home bets buyers’ attention, a real estate agent is critical to navigate the process, help with paperwork and sort through multiple offers.”

Calmer Market Ahead

This week, the spring 2022 issue of “Realtor” magazine also arrived. Here’s the article by Lawrence Yun, National Association of Realtors® Chief Economist:

“The past two years have been quite exceptional for real estate. Home sales boomed. Home prices rose at the fastest rate in modern times. However, such a strong housing market created growing pains. Inventory shrank to its lowest count ever. Even through the recent winter months, the inventory that has made it onto the market has typically attracted multiple bidders – and increasingly, investors offering cash. Twenty-two percent of recent transactions were investor purchases, up from 15% a year ago, and 27% of transactions were cash-only deals, up from 19% a year ago. That’s putting a strain on first-time buyers. Moreover, mortgage rates are notably higher as the Federal Reserve moves from a quantitative easing monetary policy, quickly buying up mortgages, to what is in essence a quantitative squeezing that does the opposite. With all this in mind, what’s ahead?

“Let’s begin with the jobs picture. Although the unemployment rate is back to normal at 4%, the economy is still short by nearly 3 million jobs compared to before the pandemic. But that hasn’t held back housing sales. Existing-home sales reached 6.12 million in 2021, the best since 2006. The median home price reached an all-time high of $347,100 a one-year gain of 16.9%.

“A few states actually have more jobs now than before the COVID-19 days. They are Utah, Idaho, Texas, Arizona, Georgia, and Montana in order of performance. Those are also the states experiencing extra strong real estate activity, both in residential and commercial markets. Jobs are important.

“What now, given the diminishing pandemic – fingers crossed – and rising mortgage rates? Office workers will need to get back to the office. Maybe the new work model will be some form of hybrid, with a few days each week spent in the office. This still means locational choices do not have to be inherently dependent on big-city-downtowns. It’s fine to live farther from the city, given less time spent on the commute. Higher mortgage rates, though, will lock out some would-be buyers. In very high-cost areas, the increase means about $500 more in monthly mortgage payments for the typical borrower. Consequently, home sales will come down 2% to 4% in 2022. If inflation remains stubbornly high and the Fed is forced to be even more aggressive, then home sales could fall by as much as 10%.

“Prices will keep rising, though, since getting to a balanced market will take time. The turnaround may occur by the middle of the year. Expect calmer home price gains of 3% to 6% per year in 2022 and 2023.”

Sanibel & Captiva Islands Multiple Listing Service Activity

April 22-29, 2022

Sanibel

CONDOS

1 new listing: Sanctuary Golf Villages I #6 3/3 $1.398M.

1 price change: White Pelican #124 2/2 now $1.699M.

2 new sales: Breakers West #A4 2/2 listed at $849K, Nutmeg Village #211 2/2 listed at $1.15M.

4 closed sales: Sundial #I307 1/1 $595K, Mariner Pointe #733 2/2 $65K, Sand Pointe #131 2/2 $1.325M, Pine Cove #201 3/2 $1.899M.

HOMES

5 new listings: 750 Oliva St 3/2 $1.495M, 2474 Wulfert Rd 3/3/2 $2.195M, 2658 Coconut Dr 3/2 $2.495M, 1690 Sabal Palm Dr 5/3 $3.177M, 1520 Angel Dr 4/3.5 $3.995M.

No price changes.

7 new sales: 778 Cardium St 3/3 listed at $849K, 600 Boulder Dr 3/2 listed at $935K, 9076 Mockingbird Dr 3/2 listed at $985K, 1202 Sand Castle Rd 4/2.5 listed at $1.25M, 3910 Coquina Dr 3/2 listed at $1.299M, 746 Windlass Way 4/3 listed at $2.275M, 2658 Coconut Dr 3/2 listed at $2.495M.

1 closed sale: 1600 Sabal Sands Rd 3/2 $1.4M.

LOTS

1 new listing: 2462 Wulfert Rd $348K.

1 price change: 1321 Seaspray Ln now $995K.

No new or closed sales.

Captiva

CONDOS

1 new listing: Gulf Beach Villas #2003 1/1 $925K.

No price changes.

1 new sale: Gulf Beach Villas #2027 3/2 listed at $1.595M.

No closed sales.

HOMES

No new listings or price changes.

1 new sale: 15261 Captiva Dr 4/4.5 listed at $11.25M.

1 closed sale: 15867 Captiva Dr 7/6 $11M.

LOTS

Nothing to report.

Once the rainy season begins, the clear aqua-looking water disappears, but it’s still looking pretty now. Happy Friday!

Until next week, Susan Andrews, aka SanibelSusan

Easter Blessings & Springtime 2022

Posted on April 15, 2022 by SanibelSusan

As high season winds down on the islands, it’s great to have another week when the islands are busy with families visiting for the Easter holidays. Some were here this week, some arrive tomorrow, plus local schools are off today and Monday.

Here in the office, it still is quiet. We are thankful for another closing this week, an inspection contingency ending soon on another listing, plus a couple of other listings without contingencies just awaiting closings.

Below are a couple of news items, followed by more details on the island real estate action since last Friday.

We continue to market for new listings. As of today, according to the Sanibel & Capti a Islands Multiple Listing Service, Sanibel has just 41 properties for sale (16 condos, 15 homes, and 10 lots), while Captiva has 14 (6 condos, 7 homes, 1 lot). Many prospective buyers are watching the market carefully, several have us on the lookout for a property that matches their needs. Next is an interesting article geared toward those waiting.

Waiting on the Housing Market to Crash? Don’t, Experts Say

Here’s How Today’s Market Is Different From the Great Recession Housing Bubble

Posted on April 6, 2022 by Jon Reed with NextAdvisor in partnership with TIME:

“Home prices are higher than they’ve ever been, and they show no signs of stopping. The median U.S. home listing price was $405,000 in March 2022, the first time it’s broken the $400,000 price threshold, according to date from Realtor.com. That is an increase of 26.5% over two years.

“Homebuyers might see similarities between what’s happening today and the 2006 housing market where home prices became increasingly unaffordable until the bubble burst, helping trigger the worldwide financial crisis we came to call the Great Recession.

“Stressed-out buyers might be thinking these high prices are a bubble just waiting to pop again. In fact, 77% of homebuyers believe there’s a bubble where they live, according to a recent Redfin survey.

“Today’s market differs significantly from what happened 15 years ago, when high home prices were instead driven by loose lending practices and rampant investor speculation in the market.

“Waiting for the market to crash might not yield the result buyers hope for, experts say. “There’s not really any room there to be a bubble right now. It’s not like people have borrowed too much and it’s not like homes are overvalued,” says Daryl Fairweather, chief economist at Redfin.

“There are a lot of reasons why it seems like we are in a bubble, but at its heart, the issue is simple; supply and demand are driving up prices. “It’s just that there aren’t enough homes for everybody that wants one,” says Fairweather.

Here’s what is different about today’s market, what’s behind the record-high prices, and what buyers can do to navigate the process.

“Things Have Changed Since 2006 – The current market and that of the mid-2000’s share some similarities. Namely, housing prices were up and often unaffordable for buyers. The causes are different, experts say.

“The previous bubble came after a period in which lenders were more lax about writing loans and more people were in the housing market as an investment rather than to buy a home to live in. “Mortgage underwriting was considerably more loose back in 2006,” says Robert Dietz, chief economist at the National Association of Home Builders. “It was easier to get a mortgage to speculate in the housing market. That is not the case today.”

“Different home loans, such as adjustable-rate mortgages with big “balloon payments” due at the end of the term, meant people got into homes thinking they could afford the payments, finding out later that their payments grew dramatically to unaffordable levels, Fairweather says. “There was a lot of financial engineering, there was a lot of predatory lending, there was a lot of bad borrowing on people not having a lot of equity, not having as much of a cushion, that led to the housing bubble,” she said.

“Those types of loans are far less common today, and there is more oversight of home lending in the wake of the crisis of the late 2000’s, experts say. Today most borrowers get 30-year fixed-rate mortgages, which don’t come with the risk of payments suddenly rising dramatically as rates increase, Fairweather said. “If you own a home, you’re still paying what you paid when you got your fixed-rate mortgage.”

“There Aren’t Enough Homes – There are two major ways homes enter the market: Somebody builds a new one or somebody sells an old one. Both of those pipelines are out of whack. “Today it’s really just about lack of supply,” Dietz says.

“Builders Are Struggling to Catch Up – The limited supply of new homes is due to factors both old and new, Dietz says. For the last decade, builders haven’t put up houses at the rate they needed in order to handle today’s demand, which he says has probably created a deficit of a least a million homes. At the same time, costs have gone up since the pandemic. Deitz blames the constraints in the market to what he calls the “five L’s”:

Labor: Builders are having a hard time finding skilled workers, particularly in hot markets such as Texas.
Lots: There’s about a year’s supply of lots available, when the market needs two to three years.
Lending: Homebuilders, especially the smaller companies, face a tighter market for borrowing the money needed to build.
Lumber & building materials: Lumber prices were about $350 per thousand board feet in January 2020. That’s about $1,300 now, Dietz says. On top of lumber, there are shortages and delays in things like garage doors and microwaves.
Laws & regulations: Issues like zoning can limit how many homes can be built in a certain amount of space.

“The tight housing market means new construction is even more important for buyers trying to get a home. While new homes typically account for less than one in 10 sales, that figure is now about one in three, Deitz says. Supply chain issues also mean new homes take longer to build – from a typical time of about six and aa half months to now about eight months.

“When you add all those together, it’s just gotten a lot harder to build homes,” he says.

“Fewer People Are Selling – Existing homes make up most of the market, but the supply of those is down also. Some of that has to do with the affordability issues affecting buyers. A survey by Discover Home Loans found 79% of homeowners would rather renovate their homes than move.

“High home prices might seem to encourage people to sell their homes and cash in, but most of those people would have to buy another home and pay those high costs. “If they try to buy again, they’ll be facing a really tough market as a buyer,” Fairweather says. “The only people who are really in a good position to sell and buy again are people who are downsizing or moving to a more affordable area.”

“There Are More Buyers – The supply constraints mean there aren’t as many homes for people to compete for, but those open houses are also busier than ever. That’s because more people are deciding homeownership is right for them at the moment.

“There’s a lot of demand for homes right now,” Fairweather says. “A lot of people are looking.” Part of that is that millennials are entering their prime homebuying years, experts say. Many members of this big generation are in their 30’s, often married with children. “We are seeing a big push from millennials to buy a home,” Fairweather says. “That’s been years in the marking.”

“The pandemic has also made remote and hybrid work a possibility for many. That means you don’t have to live close to an office and you might need more space than you can find in an apartment. Remote work means owning a home is a possibility for more people, Fairweather says, adding to demand.

When Will the Housing Market Calm Down? It will likely take a while before the inventory of available homes matches up with demand. Experts surveyed by Zillow predicted it’ll be two years before monthly inventory returns to pre-pandemic norms. They estimated it could be 2024 or 2025 before the portion of first-time buyers again reaches the 45% seen in 2019.

“Rising mortgage rates – they’ve gone from near 3.3% at the start of the year to near 5% in just three months – will likely take some buyers out of the market and slow the rise in home prices. “It should weaken demand, but there’s so much demand it’s hard to say how much it will really impact things like sales and home prices,” Fairweather says.

“Higher mortgage rates might not directly lead to lower prices – supply and demand will still be the big factors – but it could make life a little easier for buyers, Dietz says. “The bidding wars are going to cool off.”

“The factors driving up prices aren’t likely to subside anytime soon, Dietz says. “I don’t think buyers should be betting on any really significant price declines. If anything, as interest rates move higher, the cost of buy a home is going to go up.”

What Can Homebuyers Do In this Market – As Redfin’s survey found, many buyers think the market is in a bubble right now, and they might be tempted to wait for it to burst, some economic cataclysm that suddenly makes a house affordable. Experts caution against hoping for that.

“I think you want to be strategic and you want to be patient,” Dietz says. “Patient is different from waiting for a crash. Buyers will have to look harder and widen their search, he says. There are ways to get creative: if you work is hybrid and you only have to go to an office two or three times a week, reconsider your commute and think about it on a weekly basis rather than as a daily burden. That means you could look farther away from work where housing is sometimes cheaper.

“You can also consider other options, Dietz says. One is to look at new construction if you haven’t already. Keep in mind there is a longer lag time than usual, but it could be easier than competing for scarce existing homes with the mob of other potential buyers (and investors and flippers with cash offers). There are also options other than the single-family home, such as townhouses.

“Any slowdown caused by higher mortgage rates will make the market a little easier for buyers who are patient, Fairweather says. “By the end of summer there should be more homes on the market as not as many buyers will be taking them off the market,” she says.

“The market could be in for a shift this year as it copes with higher mortgage rates, Fairweather says. You may want to slow down and consider your options. “I don’t think it’s wise to try to rush the market now because right now the market is adjusting,” she says.

Should Fourth of July Fireworks Return to Sanibel?

The below article from the latest Santiva Chronicle asks for opinions on this:

“Fireworks on the Fourth of July have been a part of the day’s festivities since nearly as far back as the country’s beginning. But the pandemic canceled that tradition and the return of fireworks this year on Sanibel is up in the air.

“In a hearty discussion among City Council members last week, many of them indicated it might be time to discontinue the 30-minute fireworks show on the Fourth. Fireworks are prohibited on the island, for good reason, with this one traditional exception.

“They are detonated at the end of Bailey Road, near San Carlos Bay. Concern was raised over the heavy metals and chemicals found in fireworks polluting the water. Plus, the loud booms scare wildlife. But our environmental experts have said they support the detonation location and see it as a trade-off for 30 minutes of human enjoyment as we celebrate the freedom of our country.

“Is it time to bring back the fireworks on Sanibel? Now is the time to voice your opinion. Council members will be discussing the fate of the island’s fireworks show in their May 3 meeting. Contact Sanibel City Council….”

Heavy Traffic Advisory

Sanibel Police Chief Bill Dalton issued a “Heavy Traffic Advisory” for this weekend, Saturday and Sunday, April 16 & 17, 2022. Heavy traffic is anticipated along Periwinkle Way to Tarpon Bay Rd due to several island events taking place.

Saturday – 6 to 10 p.m. – SCCF’s 9^th Annual Beer in the Bushes Event, 1300 Periwinkle Way.

Sunday – 8 a.m. to 1 p.m. – Sanibel Farmer’s Market at City Hall, 800 Dunlop Rd.

Sunday – 9 a.m. & 11 a.m. – Easter Services at The Sanibel Community Church, 1740 Periwinkle Way. (There also is a 6:30 a.m. sunrise service on Causeway Island A.)

Sanibel & Captiva Islands Multiple Listing Service Activity April 8-15, 2022

Sanibel

CONDOS

3 new listings: Sanibel Arms West #H7 2/2 $889K, Nutmeg Village #211 2/2 $1.15M, Somerset #A301 3/2.5 $3.465M.

3 price changes: Pointe Santo #B44 2/2 now $1.4M, Gulfside Place #117 2/2 now $1.695M, White Pelican #124 2/2 now $1.789M.

1 new sale: Colonnades #10 1/1 listed at $449K.

4 closed sales: Blind Pass #D204 3/2 $815K (our listing), Cyprina Beach #8 2/2.5 $1.43M, Compass Point #192 3/2 $1.81M, Junonia #301 4/2 $2.45M.

Blind Pass condos

HOMES

3 new listings: 778 Cardium St 3/3 $849K, 1667 Sabal Sands Rd 3/3 $1.05M, 5075 Joewood Dr 4/4.5 $4.49M.

2 price changes: 1311 Sand Castle Rd 3/2 now $1.445M, 660 Anchor Dr 6/4 now $2.895M.

No new sales.

4 closed sales: 320 Palm Lake Dr 2/2 $900K, 3015 Singing Wind Dr 2/2 $975K, 3822 Coquina Dr 4/3.5 $1.6M, 2451 Blind Pass Ct 4/4.5 $2.901M.

LOTS

No new listings.

2 price changes: 5642 Baltusrol Ct now $399.9K, 5648 Baltusrol Ct now $399.9K.

No new sales.

1 closed sale: 544 Lake Murex Cir $650K.

Captiva

CONDOS

No new listings, price changes, or new sales.

2 closed sales: Tennis Villas #3128 1/1 $549K, Beach Villas #2633 2/2 $1.399M.

HOMES

2 new listings: 1114 Schefflera Ct 4/3.5 $3.6M, 11529 Andy Rosse Ln 4/4 $4.495M.

No price changes.

2 new sales: 17201 Captiva Dr 5/4.5 listed at $5.65M, 15009 Binder Dr 4/5.5 listed at $7.5M.

No closed sales.

LOTS

Nothing to report.

Happy Easter,

Susan Andrews, aka SanibelSusan

It’s Not a Joke – It’s an Overcast Friday in Paradise

Posted on April 1, 2022 by SanibelSusan

Rumor has it that some snowbirds already have headed north, but you couldn’t prove it this week by the heavy traffic in SW Florida. More wonderful breezy sunny weather has made for perfect days for outdoor lovers. Beaches, waterways, and bike paths have been busy.

With limited rain since Florida’s storm season ended last fall, forecasters have reported fire danger for much of central and south Florida. Rainy season usually doesn’t begin until May, but with unusual weather events in many places in recent years, who knows what 2022 will bring.

Weathermen say a front is arriving today that may stall over the weekend bringing a few occasional showers. That should help, so far it’s just turned from sunshine to overcast.

Real Estate Scoop

There were a couple of Association of Realtors® sponsored events this week with a Flood Insurance Seminar at the Community House Tuesday evening. With presentations from two Sanibel & Captiva Islands Association affiliate members, Dave Arter with Private Client Insurances Service and Chris Heidrick with Hedrick & Co. Insurance, the focus was the National Flood Insurance Program (NFIP) new FEMA (Federal Emergency Management Agency) 2.0 Rating System for flood insurance. It recently went into effect to more fairly charge flood rates. Unfortunately, on barrier islands like Sanibel and Captiva, that usually means higher premiums. Presenter examples often included a former $800 annual premium jumping to $8,000. Luckily, the new system limits increase to 18% per year.

Their final take-away slide had the following advice:

Don’t let your flood policy lapse! Risk rating 2.0 rates will apply.
If your premium is escrowed, you still are the responsible party.
Be prepared for 18% premium increases for the foreseeable future
At renewal, you may receive a request for additional information (type of construction, number of floors, square footage, etc.). Speak to your insurance agent to avoid “Provisional Rates”.
Speak with an insurance agent for advice, specific to any property you are buying.
Always get the elevation certificate AND the seller’s flood declaration page, when buying a home

Tuesday afternoon was a Zoom class for members of Realtor® Association Professional Standards Committees. At least ten associations throughout the state attended including two members from Sanibel and Captiva. The presenter, Shannon Allen, is an attorney and Florida Realtors® Director of Local Association Services. With Realtors® governing themselves on ethics and arbitration through their local groups (which include Ombudsmen, Grievance and Professional Standards Committees), it was insightful to hear how a hot market and the electronic age have caused nuances. Luckily in a small Association like the islands, complaints are rare.

At the Association Thursday morning Realtor® Caravan meeting, attendance was light, but at least there were two new listings open for viewing. After a couple of news items is the activity posted since last Friday in the Sanibel & Captiva Islands Multiple Listing Service.

Final Car Show of the Season

San-Cap Motor Club is hosting its final “Cars & Coffee Cruise-In” of the season tomorrow, April 2 from 9 to 11 a.m. at Periwinkle Place shopping center. Exhibitors are suggested to arrive by 8:30 a.m. to secure a good spot. They include antique cars, hot rods, muscle cars, all makes and models, including motorcycles. There is visitor parking behind the shopping center.

Community Chorus Spring Concert

Another annual event is the Spring Concert of the BIG ARTS Community Chorus. SanibelSusan has missed singing with them this year but has followed their progress and upcoming program – which is terrific. Tickets are on sale now and night of the concert, which is Wednesday, April 6 at 7 p.m. in the BIG ARTS Performance Hall. Link for tickets: https://my.bigarts.org/3260/3262

SCCF’s “Beer in the Bushes”

Yet another annual unofficial end of season celebration is right around the corner. The popular fundraiser for the Sanibel-Captiva Conservation Foundation will be Saturday, April 16 from 6 to 10 p.m. Tickets are available online at www.beerinthebushes.com.

Real Estate Trends to Watch This Spring

Posted online Tuesday, March 28, 2022 on FloridaRealtors® and sourced to Realtor.com, 2022 INFORMATION, INC. Bethesda, MD.

“Realtor.com: Home sellers may continue to hold the upper hand, but buyers may be more sensitive to price increases; and more inventory could enter the market.

“SANTA CLARA, Calif. – Home sellers will likely continue to hold the upper hand this spring, says a realtor.com® housing report that also uncovered upcoming trends.

“Buyers are likely to become more sensitive to price increases. Mortgage rates are on the rise and are expected to continue to increase this year. As home shoppers face higher borrowing costs, they may need to tighten their budgets or even step back from the market as home prices increase as well. That could help to moderate price trends, realtor.com says. The trend occurred last year, even when mortgage rates were at historical lows but home prices were climbing by double-digit annual gains. In early May 2021, the number of sellers who made price adjustments rose by 17.8% compared to the start of the year.

“More inventory will likely hit the market. Buyers may see the benefit of a greater housing supply. Still, the number of homes for sale is expected to remain historically low this year, though more options are likely to become available. Builders are adding more homes to the inventory. Also, more homes typically come on the market during the spring season. Realtor.com notes that based on historical trends, by mid-August the number of sellers with actively listed homes usually rises 17.4% over the beginning of the year. If that trend holds true, it could mean more options for buyers and more competition for home sellers.

“Sellers may face trade-offs. Homeowners who have to sell and buy could face a dilemma: If they hold out for peak asking prices on their home, they also could end up paying a premium for the home they buy, realtor.com says. Listing prices usually reach their highest levels in the summer. But home seller-buyers who delay will face more competition from other sellers and the possibility of missing out on buying opportunities.

““We all know that homes are selling lightning-fast right now,” says Rachel Stults, managing editor at realtor.com. “But that doesn’t necessarily mean your house will sell itself. Before you list your home this spring – or any other time this year – make sure you’ve taken steps to get it ready, including cleaning and decluttering, getting cost estimates on repairs you might need to make, and talking to agents to see who would be a good fit for your needs. No matter when you decide to list, whipping your home into shape beforehand will help you sell faster and for more money.”

Sanibel & Captiva Islands Multiple Listing Service Activity March 25 ‑ April 1, 2022

Sanibel

CONDOS

2 new listings: Coquina Beach #5A 2/2 $779K, Sanibel Moorings #1042 2/2 $869K.

1 price change: Pointe Santo #C26 2/2 now $1.195M.

4 new sales: Loggerhead Cay #201 2/2 listed at $995K, Sand Pointe #131 2/2 listed at $1.295M, Island Beach Club #P4E 2/2 listed at $1.799M, Junonia #301 4/2 listed at $2.4M.

4 closed sales: Captains Walk #C5 2/1 $591K; Donax Village #9 2/2 $746K; Sanibel Surfside #225 2/2 $1,022,222; Pointe Santo #A2 2/2 $1.371M.

HOMES

6 new listings: 9476 Balsa Ct 3/2 $1.195M, 3822 Coquina Dr 4/3.5 $1.595M, 479 Las Tiendas Ln 4/3 $1.68M, 733 Durion Ct 3/2 $1.695M, 746 Windlass Way 4/3 $2.495M, 1558/1545 San Carlos Bay Dr 3/3.5 $4.7M.

No price changes.

3 new sales: 1600 Sabal Sands Rd 3/2 listed at $1.2M, 1190 Sand Castle Rd 3/2 listed at $1.35M, 4577 Brainard Bayou Rd 3/3 listed at $1.725M.

11 closed sales: 799 Casa Ybel Rd 5/3 duplex $840K, 4560 Brainard Bayou Rd 3/2 $889K, 1666 Middle Gulf Dr 3/2 $1.05M, 4563 Brainard Bayou Rd 3/2 $1.3M, 1437 Causey Ct 3/2.5 $1.365M, 1174 Harbor Cottage Ct 3/3 $1.507M, 2711 Wulfert Rd 4/4/2 $1.65M, 2695 Wulfert Rd 4/4/2 $1.8475M, 5817 Sanibel-Captiva Rd 4/3 $2.1M, 444 Lighthouse Way 5/4.5 $3.75M, 1077 Bird Ln 4/4/2 $5.5M.

LOTS

1 new listing: 3005 Turtle Gait Ln $1.15M.

No price changes or new sales.

1 closed sale: 2310 Wulfert Rd $290K.

Captiva

CONDOS

2 new listings: Lands End #1610 3/3 $3.7M, Beach Homes #6 3/3 $3.749M.

No price changes or new sales.

3 closed sales: Bayside Villas #4210 1/2 $594.5K, Lands End #1659 2/2 $1.3M, Beach Cottages #1404 2/2 $1.609M.

HOMES

No new listings.

1 price change: 15261 Captiva Dr 4/4.5 now $11.25M.

No new sales.

1 closed sale: 11549 Wightman Ln 3/4 $3.395M.

LOTS

1 new listing: 15819 Captiva Dr $15.5M.

No price changes, new, or closed sales.

Until next Friday,

Susan Andrews, aka SanibelSusan

Superb Sanibel Springtime

Posted on March 25, 2022 by SanibelSusan

SanibelSusan reporting that another week has flown by with a few rumblings about the additional visitors here because of Lee County Schools on break.

For the most part those folks enjoyed wonderful breezy sunny weather. A cool front that arrived yesterday briefly turned sunshine to clouds, but more spectacular weather is expected over the weekend.

It’s a gorgeous Friday afternoon with highs forecast to only be in the low to mid 70’s until Monday when temperatures again reach into the 80’s. Springtime in Florida is superb.

Real Estate Scoop

At SanibelSusan Realty, another listing is under contract and a few more action items accomplished for upcoming closings.

At the local Association of Realtors® monthly breakfast meeting yesterday, there were no new listings or price reductions announced and no properties open for Caravan viewing. This is the fourth week in a row without any listings to see.

The article below is a good summation of the market in Southwest Florida. If you are thinking of selling, it is to your benefit to list now, before the annual snowbirds start heading home. If you are a buyer, don’t think that waiting for the market to normalize will happen anytime soon.

See below the news for the action reported in the Sanibel & Captiva Islands Multiple Listing Service since last Friday.

The Pulse of Southwest Florida Real Estate

I received an email this week from local attorneys Henderson Franklin who sponsored the 2022 Market Trends event which took place on March 16 with speakers Randy and Justin Thibault from Land Solutions, Inc. and Denny Grimes from Keller Williams Realty. Here are some tidbits from that article with a recap of 2022 Market Trends by Alessandro Secino:

“The presentation discussed the current conditions of the real estate market in Southwest Florida and provided a future forecast about what the market may look like in the coming year. The presentation also focused on the primary areas of the real estate sector: residential development, resale properties, and the commercial market.

“Overall, the end of 2021 was a continuation of the rapid growth that comprised 2020 and 2021, as waves of new residents and businesses enter the market. All sectors of the market are currently seeing growth, but nowhere is this more evident than with residential development and resale, as low inventory coupled with high demand has prompted dramatic price increases across the three counties of Lee, Collier and Charlotte. The ultimate question, however, will be whether this will continue or will the market begin to decline as prices continue to creep up higher.

“Residential Development – In 2021, Southwest Florida saw a 47% increase in new single-family residential permits issued amongst the three counties, with Lee County seeing the highest increase of 59%. Total residential permits increased 39% percent to approximately 25,000 permits. These percentage increases, while dramatic, still pale in comparison to the number of permits issued in 2005, which numbered around 44,000 permits prior to the crash in 2008. Similarly, multi-family residential permits increased by 19% over the last year.

“These numbers illustrate that low resale inventory is driving up the prices, leading buyers to seek new construction and rental properties. Presently, the current inventory of resale properties cannot match the demand of new homebuyers entering the market, leading to homes rising in value by as much as 77% in some areas over the last year.

“As a result, new buyers who cannot find already built homes or are priced out of the market are now turning to rental properties until inventory becomes available or prices soften. The same is true for sellers who took advantage of increased home values are renting until prices come back down.

“With resale inventory so low, it begs the question of where is all this new development going? Most of the new development is taking place inland from the coastal communities. The two leading developments in terms of total permits issued are Ave Maria and Babcock Ranch, which account for a combined 1400 new permits in 2021.

“In many respects, the theme for 2021 was rising prices. This is especially true for the real estate market in Southwest Florida. These dramatic price increases led to shifting behaviors from buyers and sellers, but until either supply increases or demand lessens, prices are going to continue to rise.

“Resale Market – The resale market in Southwest Florida is what presenter Danny Grimes calls “the greatest market of all time,” and for a good reason. 2021 saw a record number of homes sales in Lee County with over 19,000 homes sold, an increase of 16% over the previous year.

“In addition, home prices have similarly increased; from January 2020-January 2022 in Charlotte County, median sales prices increased by 50% from $240,000 to $360,000. The areas within Southwest Florida are also areas with the best location such as Captiva, Boca Grande, and in the Park Shore Drive/ 5th Avenue area in Naples.

“While the market in Southwest Florida is seeing unprecedented numbers of sales, there are not enough properties to meet the demand of buyers. Currently, inventory levels are down between 20 and 30% amongst the three counties, which is not necessarily a bad thing, as high inventory and high prices are conditions that may lead to a bubble and subsequent crash. If there is a true downside to the current market, it is that there are no properties in Southwest Florida under $100,000. Even vacant properties in Lehigh Acres, an area considered most affordable within the region, have seen a 90% increase in vacant land values.

“Almost every person involved in the real estate industry in Southwest Florida is trying to determine when will this market will begin to decline again? There is no predictable answer to this question, however we will begin to see the signs of this when properties are going up for sale and not being purchased or sitting on the market for longer periods of time.

“Commercial Property – Commercial sales volume over the last year has nearly doubled, with an over 87% increase, which surprisingly enough is mostly attributable to retail sales. In 2020, investors were fleeing retail assets with COVID shifting commerce electronically, however 2021 saw current retail properties shifting from retail spaces selling goods, to a more service-based retail user such as car washes, gas stations, and convenience stores. With these new users, we are seeing existing retail spaces being revitalized by new companies such as Sprouts who are acquiring properties within existing shopping centers.

“Despite the increase in retail, industrial properties are also in high demand despite only accounting for 19% of the 87% increase in sales volume. Rental rates for industrial properties are up almost 10% in the last year along with increases in construction of industrial spaces.

“Finally, office spaces (much like retail) saw investors moving away from those assets due to the work-from-home shift COVID brought on. However, office space properties accounted for 26% of the overall growth in sales volume over the last year. Presenter Justin Thibault likened this increase in office space sales going from a pandemic to an endemic stage, where workers are heading back to the office in more hybrid models. In a sense we are learning to live with more hybrid work models, and office space properties are increasing as a result.

“Overall, the commercial market — which was perhaps on the shakiest footing as a result of COVID — has begun to rebound and grow. As we see larger companies like Amazon move into the area, the demands for commercial properties should also increase. Charlotte County may very well be the beneficiary of this new investment as there is room to build industrial properties within proximity to the airport in Punta Gorda.

Take-Away – The Market Trends report focused largely on current market conditions, which is not surprising considering the increases in growth throughout all sectors of the Southwest Florida real estate market. With that said, it is difficult to ascertain what the future may hold, as it appears the current growth is not showing signs of slowing down. As we enter a post-COVID economy and already experiencing rising inflation and global turmoil, it will be interesting to see if we begin to see a slowdown in the real estate market here in Southwest Florida.”

Will Ukraine War Impact Florida Real Estate?

Posted March 15 on FloridaRealtors and sourced to 2022 Media Group, by Derek Gilliam.

“On the one hand, Fla. is the No. 1 state for Russian RE investing – 29% of all U.S. purchases. On the other, Russian buyers make up only 0.8% of all foreign purchases.

“NAPLES, Fla. – Over the past six years, Russian buyers of U.S. real estate have preferred the sunny coasts of Florida over property in any other state in the nation. Wealthy Russians have reportedly bought so many luxury condo properties in the north Miami city of Sunny Isles Beach that some have termed it “Little Moscow.” “They love to be here, and they like to spend their money and enjoy their life,” Lana Bell, a South Florida real estate agent told NewsNation.com.

“But it’s not just the wealthy Russian elites seeking Florida sunshine. Across the state from Warm Mineral Springs in North Port all the way up to small town of Steinhatchee near the Panhandle, Russians and Eastern Europeans have established communities, according to population data from the U.S. Census Bureau’s American Community Survey.

“Over the past six years, 29% of Russian real estate transactions in the United States occurred in Florida, the most in the nation, according to a report from the National Association of Realtors® (NAR). But even as countries across the world impose sanctions on Russia for invading and waging a brutal war against its neighbor Ukraine, the impact to U.S. home or property prices is not expected to be meaningful, even without any Russian purchases of Florida real estate.

““Russia has little direct impact on the U.S. real estate market as it accounted for less than 1% (0.8%) of all foreign buyers who purchased U.S. residential property from April 2015 through March 2021, according to data from NAR’s survey of foreign buyer transactions of its members,” covering about 5,000 respondents, the report said. Any effect from the loss of Russian purchases would tend to be at the high end, as the NAR’s report notes that Russian buyers buy more luxury properties than the average Florida buyer.

“Still, with the transition of the pandemic to a different phase, the loss of Russian buyers could be offset by the resumption of purchases by people from other countries, as well as within the U.S. Craig Cerreta, the managing broker for Premier Sotheby’s International Realty’s Sarasota office, said the pandemic caused a near shutdown of foreign buyers, but that the segment has been bouncing back in recent months.

“During the COVID pandemic, real estate prices have drastically increased in Florida as migration brought new residents to the state, with people retiring early or enjoying the ability to work remotely.

“Tight supply – Historically, Cerreta said, Canadians, followed by residents of the United Kingdom, have accounted for the majority of international real estate transactions in the Sarasota market. “There is no question that they (Russian purchasers) are small” locally, he said. “But they are typically high-end buyers.”

“The NAR data says that the average Russian real estate transaction was about $650,000. The average for all international buyers was about $480,000. But, with the demand seen for Florida properties, combined with historically low number of properties for sale, any loss of Russian purchases are being more than made up from demand from other buyers, Cerreta said. Cerreta recently sold a home he owned in the Sarasota area. During the open house, more than 170 people viewed the residence and 21 people made an offer. Three of the offers came from people in California, something that surprised the longtime real estate agent, as Californians have historically not been a large market for the west coast of Florida.

“Any loss of demand from Russian buyers for luxury properties or other property types won’t be felt in the Sarasota market, he said. In February, 72% of all real estate sales in the Sarasota market closed at or above the list price compared to 43% at or above list price in February 2021, Cerreta said. “There’s not enough inventory to meet demand,” he said of the Sarasota market.

“Sergei Sokolov, a Realtor with Sarasota’s Michael Saunders & Co., was born in Ukraine but moved to the United States when he was 5 years old. The now-47-year-old real estate professional, fluent in Russian and Ukrainian, said Russian speakers often want a Realtor who speaks their language. The first house he sold in Sarasota in 2004 was to a Russian speaker, and he does about three or four transactions a year. Sokolov specializes in entry level homes typically in the $350,000 to $400,000 price range, with the majority of his Russian-speaking buyers already living in the U.S. or Canada and unlikely to be impacted by the Russian-Ukrainian war. “I don’t expect there to be much of an impact on my business,” he said. “There’s just a lot more demand than there is supply.”

“Varied buyers – The next closest U.S. state for Russian buyers was Georgia with 16% of all Russian purchases of U.S. real estate, roughly 13 percentage points behind Florida. New York (13%), California (8%) and Illinois (5%) rounded out the top five states for total transactions from Russian buyers. The NAR report said that even in Florida, purchases of real estate made by Russians accounted for just 0.2% of the Sunshine State’s real estate transactions from July 2020 to June 2021. Those numbers may be skewed as the pandemic caused many governments to restrict travel to other countries.

“A 2020 profile on international residential transactions in Florida conducted by the NAR with Florida Realtors, the largest trade organization in the state, concluded that foreign buyers accounted for $15.6 billion in real estate transactions from August 2019 to July 2020 – about 11% of the state’s sales. The total transaction volume for Florida real estate in that time period was $137 billion dollars.

“However, in that report that largely accounted for sales just prior to the pandemic, Russia did not rank among the top 15 counties for any Florida metro besides Miami. The Miami metro market, the largest in Florida, had just 2% of home sales go to Russian buyers.

“The largest group of foreign buyers by transaction volume came from Latin America and the Caribbean with about 37% of the total value of homes purchased by international citizens. Canadian buyers had the most transactions at 21% followed by Brazil (7%), Argentina (6%), Venezuela (5%), Columbia (5%) and the United Kingdom (5%).

“The metro area of Miami-Fort Lauderdale-West Palm Beach had the lion’s share of foreign buyers with 47.3% of all purchases. The Tampa-St. Petersburg-Clearwater metro accounted for 11%; Orlando-Kissimmee-Sanford had 9.7%, North Port-Sarasota-Bradenton had 6.9% and Cape Coral-Fort Myers came in at 4.7%.

“Larger economic issues – While Russians account for a tiny fraction of all real estate purchases in Florida, the real impact of the conflict may be felt at the gas pump as international buyers cut ties with Russian energy. President Joe Biden announced a ban on Russian oil earlier this week.

“Chris Jones, president of Florida Economic Advisors and a University of South Florida faculty member at USF in the economics department, agreed with the real estate experts that the reduction in demand from Russian buyers for U.S. real estate won’t shift home prices in Florida. However, the impact of rising gas prices could be dangerous for the U.S. economy, he said. He anticipates that gas prices will increase at least another 50 cents before the end of May, with peak price per gallon of gasoline surpassing $5 per gallon this year. As people pay more at the pump, they have less money to spend on goods and services that drive the economy, which he believes will lead to a decrease in the nation’s economic output. He said he fears that the American economy could be headed toward “stagflation” because of the rising gas prices. Stagflation happens when an economy has rising inflation at the same time as slowing economic output. “We’re already halfway there,” he said, pointing to rising inflation.

“Rising gas prices will also have an impact by raising prices on nearly all goods and services which could then cause fewer people to be able to afford to purchase residential property. Less demand, caused largely by rising gas prices, would then impact Florida’s real estate market.”

Sanibel & Captiva Islands Multiple Listing Service Activity March 18-25, 2022

Sanibel

CONDOS

1 new listing: Pine Cove #201 3/2 $1.899M.

2 price changes: Island Beach Club #210C 2/2 now $1.395M, Junonia #301 4/2 now $2.4M.

2 new sales: Shell Island Beach Club #5C 2/2 listed at $1.279M, Lighthouse Point #227 3/2 listed at $1.395M (our listing).

7 closed sales: Sundial #I402 1/1 $650K, Sandalfoot #5B1 1/1 $759K, Loggerhead Cay #242 2/2 $765K, Lighthouse Point #112 3/2 $830K, Sanibel Inn #1E 2/2 $850K, Loggerhead Cay #584 2/2 $875K, Sand Pointe #218 2/2 $1.1M.

HOMES

6 new listings: 4577 Brainard Bayou Rd 3/2 $749K, 1600 Sabal Sands Rd 3/2 $1.2M, 1190 Sand Castle Rd 3/2 $1.35M, 9405 Beverly Ln 3/2 $1.485M, 1311 Sand Castle Rd 3/2 $1.495M, 6176 Henderson Rd 4/3 $2.995M.

No price changes.

5 new sales: 5307 Ladyfinger Lake Rd 3/3 listed at $968.5K, 661 Anchor Dr 3/2 listed at $1.295M, 1243 Sand Castle Rd 4/4 listed at $1.745M, 1543 San Carlos Bay Dr 4/4 listed at $2.499M, 2451 Blind Pass Ct 4/4.5 listed at $2.895M.

4 closed sales: 1230 Anhinga Ln 4/2 duplex $699K, 5289 Ladyfinger Lake Rd 3/2 $945K, 402 Tiree Cir 3/2 $1.15M, 645 Oliva St 3/3 $1.301M.

LOTS

No new listings, price changes, or new sales.

2 closed sales: 2829 Wulfert Rd $320K, 1340 Eagle Run Dr $515K.

Captiva

CONDOS

No new listings.

1 price change: Marina Villas #709 2/2 now $1.145M.

3 new sales: Tennis Villas #3128 1/1 listed at $549K, Beach Villas #2635 3/3 listed at $1.6M, Lands End Village #1628 3/4 listed at $3.5M.

No closed sales.

HOMES

No new listings or price changes.

2 new sales: 16280 Captiva Dr 6/6 listed at $8.9M, 15867 Captiva Dr 7/6 listed at $11.7M.

3 closed sales: 30 Urchin Ct 3/2 $1.253M, 57 Sandpiper Ct 2/2 $1.325M, 16611 Captiva Dr 6/6 $7.1M.

LOTS

Nothing to report.

Though Sanibel’s spring weather is superb, the islands need rain. Fingers crossed that we get some soon!

Until next Friday, Susan Andrews aka SanibelSusan

Woohoo, More Sanibel Closings, Listings, & Sales!

Posted on March 18, 2022 by SanibelSusan

Another week has flown by with the islands again busy with more visiting families on spring break. It sure is a good thing that states and schools have vacations at different times. As it is, locals are counting down to Easter, when traffic usually eases as snowbirds start heading north. We love the extra winter business and understand why so many want to be here, but too many at once can be challenging to drivers.

Heads-up, roads and bike paths probably also will be busy next week as Lee County schools are out today and next week. With the forecast for more sunny days and temperatures in the low 80’s, those visiting should be happy!

SanibelSusan Realty

Blind Pass condos

It was nice to get a new surprise listing over the weekend. One that managed to go under contract within hours, even before we got to see it and have it photographed, as it has a rental guest. Blind Pass #D204 is the 3-bedroom condo mentioned in the Multiple Listing Service activity summary, posted after a couple of news items below. We appreciate that the Blind Pass rental office allowed us to use their photos to get the listing posted.

Another new listing was signed and posted in MLS as “coming soon”, then it became “active” today. The difference between those listing statuses is that “coming soon” listings are only available for Realtors® to see, while “active” listings are syndicated to the public and many real estate sites. It was professionally photographed early, thanks to JMA Photography. This condo, a direct bay-front Lighthouse Point 3 bedroom has showings beginning tomorrow.

View from Lighthouse Point #227

A 3^rd new listing also signed and posted in MLS as “coming soon” is a condo in Windjammer Village in The Landings in Ft Myers. That listing is occupied but will be available to show in April. It also has been professionally filmed, including streaming video.

With closings, it was another week with a nice one of those. Thanks to Realtor® Wendy Kirschner for bringing that buyer.

Island Inventory

Every week, we continue to get calls and emails from prospective buyers and renters. It is frustrating when we often can’t help them. It certainly pays to have a Realtor® on the lookout though as we often hear of listings coming on the market or cancellations.

Though 1^st quarter isn’t over yet, it is amazing to see what is happening with sale prices and days-on-market (DOM). Some are saying that prices are beginning to stabilize, but I’m not a believer – or not yet. As long as demand remains high and inventory low, buyers must be poised to pounce, while most sellers are smiling.

Below is an update of island inventory as of this morning, March 18, 2022, data from Sanibel & Captiva Islands Multiple Listing Service). Looking at just residential property, only 15 condos, 10 homes, and 11 lots are for sale on Sanibel. Just 8 condos and 8 homes on Captiva. With 113 closed sales and another 91 properties under contract, the sellers’ market continues.

Status	SANIBEL
	Condos			Homes			Lots
	#	Avg $	DOM	#	Avg $	DOM	#	Avg $	DOM
For sale	15	1,387,533	56	10	2,919,250	44	11	1,439,545	350
Under contract	30	1,100,726	18	42	1,826,950	44	10	504,155	113
Sold to-date 2022	37	966,863	47	52	1,710,807	78	8	762,625	184
Sold 2021	287	875,127	113	355	1,341,881	89	69	698,862	442
Sold 2020	193	733,136	174	189	950,426	161	23	606,233	393

Status	CAPTIVA
	Condos			Homes			Lots
	#	Avg $	DOM	#	Avg $	DOM	#	Avg $	DOM
For sale	8	1,339,250	20	8	7,929,875	116	0	N/A	N/A
Under contract	4	1,209,000	32	5	4,515,800	29	0	N/A	N/A
Sold to-date 2022	10	1,488,402	51	6	3,952,416	196	0	N/A	N/A
Sold 2021	64	1,150,373	145	44	2,988,520	261	2	2,950,000	731
Sold 2020	47	821,713	134	27	2,923,148	315	4	2,537,500	448

Americans Moving to Sun Belt States

From the April 2022 issue of “Florida Realtor” and sourced to 2022 News World Communications, Inc.:

“Both U-Haul and United Van Lines listed Florida as a top destination state. The National Association of Realtors® (NAR) chief economist credits affordability, job creation and lower taxes for the moves.

“Job-rich, low-tax states such as those in the Sun Belt are attracting many Americans as housing prices rise, recent reports show. Zillow and U-Haul both cited Florida and Texas as hot relocation destinations in separate reports, while Unit Van Lines listed Florida and South Carolina among the top states for inbound migration…

“Meanwhile, U-Haul reported in its annual Grown Index that Texas edged out Florida for the largest net gain of one-way trucks in 2021, while California and Illinois saw the greatest net losses.

“And United Van Lines reported in its 45^th annual National Movers Study that two Sun Belt states made the top five for inbound migration in 2021: South Carolina (63%) and Florida (62%) joined Vermont (74%), South Dakota (69%) and West Virginia (63%).

“States such as Illinois (67%), New York (63%), Connecticut (60%), and California (56%) appeared once again at the top of the list for outbound migration….”

Seawall Approved at Spanish Cay

It was good news to read the below article in today’s “Island Sun”. This approval has been long in coming.

“The problem of crumbling and cracked seawalls on man-made canals was under discussion at the Sanibel Planning commission meeting last week when commissioners approved replacing the seawall behind Spanish Cay condominiums on Middle Guld Drive.

“Seawalls were allowed as a special conditional use in many subdivisions bordering San Carlos Bay including Shell Harbor north and south of Periwinkle Way, Sanibel Harbour, Sanibel Isles and Water Shadows. The Sanibel Land Development Code includes standards for repairing nonconforming use seawalls on humanmade bodies of water.

“The seawall at Spanish Cay borders the manmade canal separating it from Beachview Estates. Repairs to the seawall bordering a narrow walkway required commission approval of a long form development permit.

”Complicating the matter was that removal of the seawall could not result only in loss of land bordering the water, but also cause a very high probability of undermining buildings that are 10 feet or less from the existing seawall.

“To avoid damage to structures, engineering firm Hans Wilson and Associates proposed a plan that includes replacing the seawall cap and installing a 10- to 12-foot shelf of rock riprap with a maximum 2:1 slope and consisting of limestone that is 12 to 36” in diameter.

“Two concerns addressed by the commission were rainwater downspouts from each building that discharged water directly into the canal and the limited vegetation along the seawall. The condominium association accepted a proposal to relocate the downspouts to prevent discharge into the canal or onto neighboring properties, and to install native vegetation along the path where possible…

“Native vegetation will also be planted within the riprap to provide a habitat for aquatic species to live or hide within the voids of the riprap.

“Planning commissioners voted unanimously in favor of the project.”

International Buyers Are Back

Another article in the new “Florida Realtor®” magazine says “Canada and South America are strong markets this year. Global buyers are looking for all types of properties – not just vacation homes…

“Stifled by COVID-19 the past couple of years, global buyers are finally seeing restrictions lifted and opportunities in U.S. properties.

“For decades, Florida has been a preferred U.S. market for foreign real estate buyers seeking a vacation home, primary residence or an income-generating commercial investment. But the travel restrictions imposed in spring 2020 by the COVID-19 pantenic dramatically slowed global purchases.

“Two years later, international buyers are returning to Florida, creating new business opportunities… Some of Florida’s traditional global markets are expected to see a bigger rebound than others this year. For instance, Canadian snowbirds are traveling again to Florida, and buyers from Latin American and the Caribbean are active throughout the state. On the other hand, there may be fewer buyers from China or European nations that imposed travel bans and lockdowns in late 2021 due to the omicron variant….

“According to the 2021 Profile of International Residential Transactions in Florida, Latin American/Caribbean buyers made up 46% of the global market followed by Canadians at 18% and Europe at 15%… Countries with good relations and economic ties with American are the best targets….”

Sanibel & Captiva Islands Multiple Listing Service Activity March 11-18, 2022

Sanibel

CONDOS

5 new listings: Captain’s Walk #D5 2/1 $569K, Breakers West #A4 2/2 $849K, Loggerhead Cay #201 2/2 $995K, Lighthouse Point #227 3/2 $1.395M (our listing), Island Beach Club #210C 2/2 $1.495M.

1 price change: Junonia #301 4/2 now $2.49M.

Bridge over Clam Bayou heading to Bowman’s Beach

7 new sales: Sundial #I307 1/1 listed at $595K, Blind Pass #D102 2/2 listed at $685K, Breakers West #C1 2/2 listed at $799K, Blind Pass #D204 3/2 listed at $799.9K (our listing), Sanctuary Golf Villages I #5-3 2/2.5 listed at $859K, Sundial #B206 2/2 listed at $1.3M, Sedgemoor #101 3/3.5 listed at $3.995M.

5 closed sales: Sanibel Moorings #1411 1/1 $510K, Sunset South

Bowman’s Beach

#11C 2/2 $1.025M, Sanibel Moorings #122 2/2 $1.08M (our listing), Shell Island Beach Club #A5 2/2 $1.2M, Lantana #101 4/3.5 $2.395M.

HOMES

1 new listing: 2451 Blind Pass Ct 4/4.5 $2.895M.

3 price changes: 1243 Sand Castle Rd 4/4 now $1.745M, 1543 San Carlos Bay Dr 4/4 now $2.499M, 488 Lighthouse Way 4/4 now $5.495M.

2 new sales: 1072 Blue Heron Dr 3/2 listed at $949K, 244 Palm Lake Dr 3/2 listed at $1.268M.

2 closed sales: 2276 Starfish Ln 4/3.5 $1.8M, 475 Sawgrass Pl 3/3.5 $2.1M.

LOTS

No new listings, price changes, or new sales.

2 closed sales: 2486 Wulfert Rd $219K, 3304 Saint Kilda Rd $590K.

Captiva

CONDOS

4 new listings: Tennis Villas #3128 1/1 $549K, Beach Villas #2312 1/1 $1.075M, Gulf Beach Villas #2027 3/2 $1.595M, Lands End Village #1628 3/4 $3.5M.

No price changes.

1 new sale: Bayside Villas #4210 1 /2 listed at $594.5K.

1 closed sale: Bayside Villas #5226 1/2 $625,026.

HOMES

1 new listing: 1106 Tallow Tree Ct 3/3 half-duplex $4.2M.

No price changes, new sales, or closed sales.

LOTS

Nothing to report.

Until next Friday,

Susan Andrews, aka SanibelSusan

It’s Gonna Be a Rare Chilly Florida Weekend

Posted on January 28, 2022 by SanibelSusan

This week the downward effects of cold fronts up north brought some chilly weather to the islands. Most locals turned their heat on for the first time in many months. With daytime highs in the 60’s to low 70’s, an even chillier weekend is forecast. While northern states are slated for lots of snow, temperatures here both Saturday and Sunday are expected to go only into the mid-50’s, with freeze warnings in some of SW Florida. Certainly not bikini weather, though most vacationers make the best of it, while we locals continue to enjoy wearing our once-a-year clothes. On a positive note, there were a couple of evenings with nice sunsets again this week. All now after 6 p.m. Hooray!

At SanibelSusan Realty

After posting our blog last week, The SanibelSusan Team had a busy real estate weekend. Teammate Dave and I both fielded inquiries and offers. Wed, we received a new condo listing which already is generating interest with showings scheduled before guest check-in tomorrow. Thank goodness, our photographer, Jim Anderson, fit us into his busy schedule with him filming it this morning. Fingers crossed that he will Photoshop the sky which today looks like I remember it in New England when it was about to snow.

Tues, we had a nice closing this (the results of a multi-year group effort Lisa, Dave, Susan). Two more closings are in the works for next week. Phones are ringing with prospective buyers, many worried, as we are, about the limited inventory. We also are meeting with prospective Sellers next week hopefully to boost that inventory.

The details on activity since last Friday, in the island MLS, are after a couple of news items below.

Florida Realtors® Update – What’s Changing for Florida Real Estate?

Posted Jan 21 on Florida Realtors® by Marla Martin:

“2022 RE Trends panel: Big and small biz relocations, plus the here-to-stay wave of untethered remote workers, will impact Fla.’s markets for years to come.

“ORLANDO, Fla. – After almost two pandemic years, changes created to deal with COVID-19 have created major shifts that affect Florida’s real estate markets, according to a panel of site developers, Realtors® and economic development experts who spoke to more than 300 Realtors during the 2022 Florida Real Estate Trends summit Thursday.

““Prior to COVID, we saw a lot of Wall Street firms testing the waters with CEOs looking at homes,” said Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County. “Now, these CEOs are signing seven- to 10-year commercial leases, they’re legally domiciling and, most importantly, they’re buying homes and putting their kids in private schools. We now have zero slots open for any private school in Palm Beach County.”

“The Real Estate Trends event was part of this year’s Florida Realtors®’ Mid-Winter Business Meetings at the Renaissance SeaWorld Orlando. In addition to Smallridge, other panelists included: Deanna Armel, broker-owner, Armel Real Estate; John Boyd, principal, The Boyd Company; and Melanie Schmees, director of business and economic research, Greater Naples Chamber of Commerce. Florida Realtors Chief Economist Dr. Brad O’Connor and Dr. Jessica Lautz, vice president of demographic and behavioral insights at the National Association of Realtors (NAR) also shared their insights on the 2022 outlook.

“Kelly Smallridge, president and CEO, Business Development Board of Palm Beach County – Unfortunately, the misconception that Florida schools lag and the state’s educated workforce is lacking still lingers among many executives inquiring about relocating their businesses, Smallridge said, and that is “absolutely not the case.” Once they’re in Florida, check out the schools and have their children tested for placement, their perception quickly changes, she said. “The average salary in Palm Beach County is $61,000, while the average salary of the people coming in now is $1 million,” she added – another boon to local businesses and area development.

Many of the business executives interested in moving to Florida want to look at homes first, she said, and may not mention a possible relocation. “When you’re taking a buyer around to see homes, see if they also have any interest in bringing a business here,” Smallridge advised brokers and real estate agents. “You can offer them information to connect with local chambers of commerce or economic development officials. We help them understand all the logistics of what it takes to get them up and running. So, we’re really part of your team. Together, we can land not only the home but the company as well.”

“Melanie Schmees, director of business and economic research, Greater Naples Chamber of Commerce – Like real estate, economic development often involves referrals and regional cooperation, said Schmees. “Naples is a unique market,” she explained. “Right now, we have a 1% industrial vacancy rate; sometimes, we need to direct those interested to other areas near us like Fort Myers. The whole region benefits.” One factor important for ongoing business relocations and continued economic development in Florida will be the consideration of employees’ needs and how they can manage new lives here. “We need to create an environment that works for the workers, not only the business executives,” Schmees said. “Often, their workers are concerned that they can’t make the move. They’re worried they can’t find housing or figure out their cost of living.”

“Deanna Armel, broker-owner Armel Real Estate – “Florida in general is a draw for business and for out-of-state buyers,” she said. “There’s no state income tax, our weather, beaches, and in Orlando, our theme parks. Since COVID (the start of the pandemic), home preferences have changed. People want an office, a pool, flex space and a yard.” According to Armel, the influx of major business relocations and wealthy buyers who can pay cash – like many California residents moving to Florida after selling their homes – has made an impact on the housing market, particularly in the luxury-home sector. “I call it monopoly money,” she said. “Cash is great, but it’s really hurting our buyers who need financing, our veterans, our workers and first-time homebuyers. The competition is unbelievable, especially in new construction. New construction, turn-key, luxury homes: That’s what California buyers want.”

“John Boyd, principal, The Boyd Company – Before the pandemic, about 10% of employees worked remotely, said Boyd. “Today, over half of the workforce works remotely, at least on a hybrid basis, and this change is here to stay. It saves businesses too much in terms of office space, operations and so on. It’s also a great recruiting tool – people like the flexibility.” He noted that economic development is now a “people first operation.” And that, he said, “has established a new class of economic development workers – the residential real estate agent.”

Brightline, the private high-speed rail system running from Miami to West Palm Beach with an expansion in the works to Orlando, is a positive for marketing Florida for economic development, the panelists said. “I think we’ll see a lot of exciting development projects along those Brightline lines, with the ability to connect between Central Florida and South Florida,” Boyd said. Another plus for Florida? “Our state is a magnet for global talent, experience and skill sets,” he added. “Having no state income also attracts industry and development. Business and money tend to go where it feels welcome.””

Loans for Condos? New Rules Start to Have an Effect

Posted on-line Jan 24 at Florida Realtors®, the below article is sourced to the “Daily Breeze” and mortgage broker Jeff Lazerson:

“Fannie’s tighter loan requirements post-Surfside collapse started Jan. 1; Freddie’s start Feb. 28. In the meantime, the list of no-loan condo projects will likely keep growing.

“HERMOSA BEACH, Calif. – A nightmare scenario looms for condo buyers applying for certain types of federally backed mortgages. If you are selling or are looking to buy an attached condominium in a community with five or more attached units, conventional financing from mortgage giants Fannie Mae and Freddie Mac may soon become elusive.

“Beginning Jan. 1 for Fannie and starting Feb. 28 for Freddie, the mortgage giants are putting the screws to a required HOA questionnaire. New questions ask applicants about the structural integrity of the community and whether any code violations are anticipated.

“No doubt, Fannie and Freddie’s updated lender mandates are in response to the Florida condo tower that killed 98 people last June 24. Years of deferred maintenance at the Champlain Towers in Surfside caused the 12-story building to collapse.

“Answering the agencies thoroughly and completely could force lenders to decline a mortgage application. (Remember: Mortgage lenders fund a loan, and then may sell it to Fannie or Freddie).

““Yes, lenders are declining projects even for a simple special assessment for repairs now. Things are just trickling in right now because the guidance started Jan. 1,” said one condo project approval expert, who asked to remain unnamed because he’s not the media spokesman for his company. “Soon enough we’ll see the effects hit all the condo market. I’ve only seen it affect projects with major issues at this point; meaning (the project) has code violations and millions of dollars of repairs underway.”

“Answering these questions honestly or possibly with a guess could bring liability in the form of future lawsuits against HOA stakeholders, such as the property management company, board members, inspectors, engineers and the association.

“If the questionnaire isn’t completely answered because the answers are unknown or undetermined, it might mean the purchase or refinance gets torpedoed.

“Here is a sprinkling of questions included in Fannie Mae’s Form 1076 condominium project questionnaire (posted December 2021 and updated to eight from five pages):

Question: Is the HOA aware of any deficiencies related to the safety, soundness, structural integrity or habitability of the project’s building(s)?

My take: If management didn’t know about any deficiencies, for example, and answered as such, should they have reasonably known these calamities could come up later?

Question: Is it anticipated the project will, in the future, have such violations (zoning ordinances, codes, etc., which are related to safety, soundness, structural integrity or habitability)?

My take: For the love of peace, how could one possibly determine if yet-to-be-written, jurisdictional codes trigger new violations in the condo complex?

“These dubious questions could be akin to a winning lottery ticket for any attorney who lives in the world of HOA litigation.

“Why is this so problematic? The nation has a huge community of really old condos and many of them are backed by Fannie Mae and Freddie Mac mortgages. The U.S. has as many as 156,000 condo associations and cooperatives housing between 27 million and 32 million Americans, according to the Community Associations Institute (CAI).

““Seventy percent of all condo loans in the U.S. are Fannie or Freddie (backed),” said Dawn Bauman, senior vice president of government affairs at CAI. “Sixty to 70% of all condo complexes are more than 30 years old.”

Fannie Mae has a published list of 82 “unavailable” California condo-projects, including the Marina City Club in Marina Del Rey, which has $80 million to $140 million in needed repairs according to a report last year. That a 10-acre complex is one of nearly 1,000 “unavailable” condo projects nationwide. To Fannie Mae, unavailable means a property is ineligible for purchase by the agency.

“One mortgage executive told me Fannie is making the rounds, emphasizing these new condo questions during lender visits. So don’t be surprised if that unavailable list explodes as Fannie collects more intel.

“To be fair, Fannie and Freddie need to dig more deeply to assess and consider condo structural risk before purchasing those mortgages from lenders. The mortgage giants also may disqualify a condo community for other reasons, such as a lack of budget reserves.

“If your loan is denied over the Fan or Fred HOA certification answers, you may be able to get funded on what the industry calls a non-warrantable loan. You should expect to pay perhaps one-half to one point higher in rate than conventional financing. You also might have to provide a larger down payment or have more remaining equity compared with Fannie-type requirements.

“But buyer beware: Non-qualified mortgage lenders that offer the exotic non-warrantable condo mortgages are not a loan approval shoo-in, either.

“For example, California-based LendSure has a condo guidance checklist to help determine investor risks. The common three items it looks at are investor concentration (how many rentals are in the complex), single investor (does one person or entity own a bunch of the units), and litigation against the condo complex, according to Joe Lydon, co-founder, and managing director of LendSure.

“Why so much deferred maintenance? Unit owners are often resistant to increased HOA fees or special assessments for repairs and updates.

“Condo complex building inspections can run $15,000 to $50,000 depending on the number of units, according to Bauman.

““Community Associations Institute is lobbying for laws mandating reserve studies and building inspections,” said Bauman. CAI is also asking Fan and Fred to give HOAs more time to be able to address so many of the new HOA questions. “Five years to ramp-up the requisite building inspections.””

Sanibel & Captiva Islands Multiple Listing Service Activity January 21-28, 2021

Sanibel

CONDOS

7 new listings: Loggerhead Cay #351 2/2 $824K; Lighthouse Point #112 3/2 $864K; Sanibel Moorings #1332 2/2 $874,999; Sanibel Moorings #122 2/2 $1.2M (our listing); Shell Island Beach Club #A5 2/2 $1.2M; Pointe Santo A2 2/2 $1.35M; Sedgemoor #101 3/3.5 $3.995M.

Boardwalk to beach at Sanibel Moorings

1 price change: Gulfside Place #210 2/2 now $1.549M.

6 new sales: Sundial #I402 1/1 listed at $659K, Mariner Pointe #421 2/2.5 listed at $739.9K, Sunset South #11C 2/2 listed at $1.095M, Sand Pointe #218 2/2 listed at $1.099M, Sundial #M303 2/2 listed at $1.249M (our listing), Pointe Santo #A2 2/2 listed at $1.35M.

To beach from Sundial East

2 closed sales: Nutmeg Village #308 2/2 $1.225M, Gulfside Place 124 2/2 $1.45M.

HOMES

4 new listings: 645 Oliva St 3/3 $1.1M, 593 Lake Murex Cir 3/3 $1.395M, 5802 Sanibel-Captiva Rd 3/3.5 $1.495M, 4717 Rue Belle Mer 3/3 $4.95M.

No price changes.

5 new sales: 2030 Sunrise Cir 3/3 listed at $1.625M, 489 Sawgrass Pl 5/5 listed at $2.15M, 1266 Par View Dr 4/4 listed at $2.295M, 435 Bella Vista Way E 3/3 listed at $5.2M, 3767 West Gulf Dr 4/4.5 listed at $7.5M.

3 closed sales: 6429 Pine Ave 3/2 $869K, 1943 Sanibel Bayous Rd 3/3 $1.125M, 2379 Wulfert Rd 4/4.5 $2.495M (our buyer).

LOTS

Nothing to report.

Captiva

CONDOS

No new listings, price changes, or new sales.

1 closed sale: Marina Villas #706 2/2 $950K.

HOMES

No new listings or price changes.

1 new sale: 14865 Mango Ct 2/2 listed at $1.295M.

No closed sales.

LOTS

Nothing to report.

Below is our ad from today’s “Island Sun”.

Until next Friday. Stay warm! Susan Andrews, aka SanibelSusan

Sanibel & Captiva Islands Real Estate News

Is It OK to Self-Insure Our House?

Upcoming BIG ARTS Community Chorus Concerts

Sanibel & Captiva Islands Multiple Listing Service Activity July 1‑8, 2022

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Sanibel & Captiva Islands Association of Realtors®

Governor DeSantis Vetoes SB 2508

Housing Market Is Strong – But Time to Sell?

Sea Turtle Update

Volunteers Needed for Beach Bucket Program!

At SanibelSusan Realty Associates

Sanibel & Captiva Islands Multiple Listing Service Activity June 3-10, 2022

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Sanibel & Captiva Islands Association of Realtors®

Lawmakers Pass Condo Reforms

Florida’s Economic Resiliency

A Recession Does Not Equal a Housing Crisis

Remodel Underway at SCCF Nature Center

Sanibel & Captiva Islands Multiple Listing Service Activity May 20 ‑ 27, 2022

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Sanibel City Council Scoop

Sellers Feel Shame if They Don’t Get Bids

What Locals Are Saying

Islands Night Tickets

Shoreline Stabilization Project Begins on Woodring

Sanibel & Captiva Islands Multiple Listing Service Activity May 13 – 20, 2022

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New Island Businesses

1st Sea Turtle Nesting of 2022 Season

Historical Museum & Village Switches to Summer Hours

Summer Fees for Wildlife Drive

Real Estate Scoop

What Are Novice Sellers’ Top 3 Mistakes?

Calmer Market Ahead

Sanibel & Captiva Islands Multiple Listing Service Activity

April 22-29, 2022

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Waiting on the Housing Market to Crash? Don’t, Experts Say

Here’s How Today’s Market Is Different From the Great Recession Housing Bubble

Should Fourth of July Fireworks Return to Sanibel?

Heavy Traffic Advisory

Sanibel & Captiva Islands Multiple Listing Service Activity April 8-15, 2022

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Real Estate Scoop

Final Car Show of the Season

Community Chorus Spring Concert

SCCF’s “Beer in the Bushes”

Real Estate Trends to Watch This Spring

Sanibel & Captiva Islands Multiple Listing Service Activity March 25 ‑ April 1, 2022

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Real Estate Scoop

The Pulse of Southwest Florida Real Estate

Will Ukraine War Impact Florida Real Estate?

Sanibel & Captiva Islands Multiple Listing Service Activity March 18-25, 2022

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SanibelSusan Realty

Island Inventory

Americans Moving to Sun Belt States

Seawall Approved at Spanish Cay

International Buyers Are Back

Sanibel & Captiva Islands Multiple Listing Service Activity March 11-18, 2022

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At SanibelSusan Realty

Florida Realtors® Update – What’s Changing for Florida Real Estate?

Loans for Condos? New Rules Start to Have an Effect

Sanibel & Captiva Islands Multiple Listing Service Activity January 21-28, 2021

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1^st Sea Turtle Nesting of 2022 Season