Tag Archives: Southwest Florida

Hooray, It’s Almost October

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One of my favorite months on Sanibel & Captiva Islands is October. That is when the weather is usually as good as it gets, with humidity down and temperatures dropping into the 60’s at night. Traffic is light. Shops and restaurants that were closed for vacations and refurbishment reopen. Snowbirds begin arriving with big smiles on their faces. Schedules are posted with upcoming fall and winter activities, holiday sensations begin. In the real estate business, it is also when we get our new listings for the upcoming “high season” and when we like to adjust any existing listings so that they are well positioned for “season” too. October is just that month when things start hoppin’ on the islands again.

This year is no exception. According to local weather reports, two cool fronts are on their way to SW Florida with our forecast for the weekend and beyond, “perfect”.

When Dave went out this afternoon to do his periodic listing checks, I asked him to snap a few photos which are posted in the slide-show above. They include the playground at Bowman’s Beach, an osprey nest on Tarpon Bay, and the new bike path which was just paved in front of our office. That path now connects most of the town center area including Sanibel’s Community House, Sanibel Square (home of Nanny’s Children’s Shoppe, SanibelSusan Realty, Island Therapy Center, Norm Ziegler’s Fly Shop, BIG ARTS on Periwinkle, Molnar Electric, Nave Plumbing, Sanibel Rental Service, Sanibel Design Center, and Sanibel Bean), Sanibel Library, City Hall, BIG ARTS & the playhouse, the Sanibel Museum & more. How cool is that?

One more tidbit, a new tab has been added above for those wanting to search for Sanibel & Captiva property. Hopefully, by next week, I’ll have figured out how to post more details on each my listings too. In the meantime, the above tab will bring you to the information that is shared cooperatively through our island Multiple Listing Service and the Internet Data Exchange. A full-page of info on each of my listings, including streaming videos and aerials, can be found today at www.SanibelSusan.com 

Ready to Invest in Homes Again

Those who read these blogs probably have figured out that I am a big fan of Lawrence Yun, chief economist for the National Association of Realtors®. Here is what he had to say in the October issue of “Realtor®” magazine. It is a good summary of the status of the economy.

“Americans socked away $250 billion in each of the ten years prior to 2008 – before the onset of the financial crisis. The savings rate was a low 2% to 3% of disposable income. Starting in 2008, consumers became more careful about spending and are now saving some $600 billion a year.

“The adjustments were certainly warranted. But the rise in savings has not affected all sectors of the economy equally. Spending on food, clothing, utilities, and health care has hit new highs. The growing population is fueling these areas, so where are the increased savings coming from?

“Vehicle sales have fallen to about 12 million units a year over the past three years, well below the 16 million to 17 million unit sales pace typical before the slowdown. Then there are home sales. New- and existing-home sales hit $1.2 million and $7.1 million, respectively, in 2005. The comparable figures are now $300,000 and $5 million.

“This process of saving more and reducing debt is known as deleveraging, and it’s not just households doing it. Businesses, banks, and state and local governments are doing it, too.

“Only the federal government has been moving in the opposite direction: spending more using borrowed money. But this trend is likely to reverse soon. The debt ceiling bill enacted in early August all but ensures federal borrowing will slow because it creates a mechanism for $1.5 trillion in spending cuts if Congress fails to act on the recommendations of a new super committee of lawmakers charged with identifying cuts.

“Meanwhile, we can expect deleveraging to slow among businesses and consumers. There isn’t a perfect straight-line path in economics. Deleveraging is big now, but tomorrow will be different. Despite major hurdles in the housing market, there are also signs sales and prices have reached the bottom.”

What’s New at “Ding” Darling Refuge

An e-mail received this week from the “Ding” Darling Wildlife Society, said that the U.S. Fish & Wildlife Service thought of “Ding” Darling Refuge when deciding where to debut one of three new traveling Climate Change interpretive exhibits. Newly arrived at the Refuge’s free Education Center, the exhibit will be at the Refuge through “Ding” Darling Days in Oct and at least until the end of Jan when it will help to kick off the Refuge’s winter lecture series. The background of the climate change exhibit displays a map of coastal refuges, including “Ding” Darling, that are at risk due to climate change, rising sea levels, loss of wetlands and other habitat, flooding and drought. For the complete 2012 Lecture Series Schedule.

Sanibel MLS Activity – September 23-30

Sanibel

CONDOS
4 new listings: Sanibel Arms West #M7 2/2 $399.9K (our listing), Blind Pass #B209 2/2 $479K, Kings Crown #216 2/2 $749K, Lantana #202 4/3.5 $1.899M.

3 price changes: Sundial #B402 1/1 now $395K, Lighthouse Point #318 3/2 now $449K, Clam Shell #C 2/2 now $749K.

1 new sale: Mariner Pointe #1062 2/2 listed for $299K.

2 closed sales: Sanibel Arms #D6 1/1 $180K, Loggerhead Cay #544 2/2 $525K (our listing).

HOMES
1 new listing: 955 S Yachtsman 3/2 $649.9K.
5 price changes: 1214 Par View 2/2 now $499K (our listing), 5657 SanCap 3/2 now $545K, 1284 Par View 2/2 now $549K, 935 Lindgren 3/2 now $624.9K, 5035 Joewood 4/4.5 now $3.75M.
3 new sales: 1672 Atlanta Plaza 2/1 listed for $350K, 617 East Rocks 3/2 listed for $545K, 618 N Yachtsman 3/2 listed for $772.5K(short sale).
2 closed sales:  965 Main 4/2 $216K, 4248 Old Banyan 3/2 $430K.

LOTS
No new listings.
3 price changes: 1299 Par View now $215K, 9056 Mockingbird now $299K, 3411 West Gulf now $3.74M.
No new sales.
No closed sales.

Captiva
CONDOS
2 new listings: Bayside Villas #4319 3/3 $559K, 4306 Bayside Villas 3/3 now $625K, Lands End #1628 3/3 $1.799M.
1 price change: Bayside Villas #4306 3/3 now $625K.

1 new sale: Lands End #1640 listed for $1.899M.

1 closed sale: Lands End #1639 2/2 $1.075M.

HOMES
No new listings.

1 price change: 16585 Captiva 5/4.5 now $2.2M.
No new or closed sales.

LOTS
Nothing to report. 

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

 

Until next week, best weekend wishes & Happy October.

Here’s to the beginning of a wonderful fall & winter “season” on the islands!

Another Great Friday on Sanibel & Captiva Islands

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Today is the first day of fall and this week the first of my snow-bird neighbors returned to the island for the winter. There will be more renewed interest in Sanibel and Captiva Islands as the weather up north begins to turn cool.

Today Dave and I were at Loggerhead Cay condominium where I took some of the above photos. Looking toward the Fort Myers Beach skyline, you can see those afternoon popcorn clouds rolling in. I snapped another photo as we were heading back to the office, along East Gulf Dr where some local vegetation continues to bloom. The final pictures with the colorful umbrella are from one of our favorites listings on Lighthouse Way. It sold and closed this week and though we are very thankful for the sale, we sure are going to miss that house. It is truly a special one. One of these photos is featured in Jim Anderson & Jim George’s book “Sanibel & Captiva – Our Islands In The Sun“. which as been out less than a year and already is an island top seller.


Sanibel’s Millage Rate Dropped to 2.1038

During a public hearing on Tuesday, Sanibel City Council approved a resolution adopting the final FY 2011-12 $47+M budget, lowering the operating budget, and setting the ad valorem millage rate at 2.1038, a decrease of 2.74% from the tentative rate approved earlier. Highlights of the adopted budget include:

  • City salaries will remain flat for the 4th consecutive year.
  • Full-time employees have been reduced through attrition from 142 in FY 2007 to 114 in FY 2012.
  • Pay-down of the City’s pension plan unfunded actuarial accrued liability by $3M.
  • With the exception of the sewer rate, which will increase 3%, all other city fees were held flat.
  • $3.2M is allocated toward general government capital improvements, including $1.4M of capital projects rolled over from the prior years and $1.8M for new projects.

Mortgage Closing Costs Up 8.8% 

The Sept issue of REALTOR® magazine included the following article: “Closing costs on mortgages have increased dramatically nationwide, spiking on average 8.8% from a year ago, according to a survey from Bankrate. Origination, title, and third-party fees on a $200,000 loan average $4,070, up from $3,741 from Bankrate’s survey at the same time last year. Analysts attribute the increase to lenders having to do extra work in approving mortgage applications due to increased scrutiny and tighter lending regulations. New York remains the most expensive state to close a loan at an average of $6,183. Arkansas remains the lowest at an average of $3,378.”

More Visitors Coming to SW Florida from Scandinavian Countries 

The Lee County Port Authority announced that Scandinavian tour operator Comefly will bring back its nonstop weekly service from Aalborg (which is the 4th largest city in Denmark) and SW Florida International Airport on Dec 19. The flights will operate on Mondays from Dec 19 through Apr 9. For more info, go to http://comefly.dk.

Just Off Island

Shell Point Retirement Community, just off island, is converting the Country Inn & Suites hotel (which they own) on Summerlin Rd, at Shell Point’s entrance and just two miles from the Sanibel causeway, into a new assisted living facility called The Springs at Shell Point. The hotel which has been in operation since 2001, closed as a hotel last week and soon will begin a $2M renovation to convert the building in the nonprofit community’s third assisted living facility. It is estimated to open in Feb 2012 with 105 units, offering heated swimming pool, exercise facilities, transportation, dining, 24-hour healthcare staffing, and a professional activities director.

Realtors® Fighting for Healthy Housing Market

Ron Phipps, National Association of Realtors® 2011 President, was quoted in the last REALTOR® magazine saying” I’m fighting for a healthy housing market for my grandchildren. That means creating a new secondary mortgage market that works with private lenders to serve all borrowers in all market conditions. It means preserving the mortgage interest deduction. And it means fighting a regulatory proposal that would require home buyers to put 20% down on a mortgage; it is not needed for sound underwriting and would disproportionately hurt first-time buyers and minorities.” The National Association’s elected leaders have testified before Congress and regulators and have mobilized members through the Realtor® Action Center. A recent call-to-action drew letters from 125,000 Realtors® asking U.S. House of Representatives members to cosponsor a House Resolution, affirming the value and importance of the mortgage interest deduction. On opposition to the 20% down payment proposal, more than 2/3 of the U.S. House and more than half the Senate have declared their support for the Association’s position.

House Fails to Vote on Extending Loan Limits

There was another call-to-action posted this week as the conforming loan limit on government-backed mortgages is set to expire Oct 1 because attempts to extend them have not gained traction in Congress. As the posting indicated “The math is simple: If Fannie Mae, Freddie Mac and FHA buy higher cost loans, more buyers will net a lower interest rate.” In 2008, Congress raised limits up to $729,750 in some areas to make larger mortgages available in high-priced housing markets. The limits will drop to $625,500 in the many areas, mostly affecting housing markets on West and East Coasts. The National Association of Home Builders has said it fears more than 17 million homes nationwide will become ineligible for more affordable federal funding if the loan limit expires. Federal Reserve Chairman Ben Bernanke has said he’s confident that the private market, including investors and insurers, would step up to fill the void by offering jumbo loans when the conforming loan limits expired – although likely at a higher cost to borrowers.

Home Building Slide Continues

An AP article on Tuesday reported that “builders broke ground on fewer homes in August, a reminder that the housing market remains depressed. The Commerce Department said Tuesday that builders began work on a seasonally adjusted 571,000 homes last month, a 5% decline from July. That’s less than half the 1.2M that economists say is consistent with healthy housing markets. Single-family homes, which represent roughly 2/3 of home construction, fell 1.4%. Apartment building plunged 12.4%. Building permits, a gauge of future construction, rose 3.2%. Hurricane Irene also slowed construction in the Northeast. Overall, homebuilding fell to its lowest levels in 50 years in 2009, when builders began work on just 554,000 homes. Last year was not much better.

“While home construction represents a small portion of the housing market, it has an outsize impact on the economy. Each home that is built creates an average of three jobs for a year and about $90K in taxes, according to the National Association of Home Builders. After previous recessions, housing accounted for at least 15% of economic growth in the United States. Since the recession officially ended in June 2009, it has contributed just 4%. Cash-strapped builders are struggling to compete with deeply discounted foreclosures and short sales, when lenders allow borrowers to sell homes for less than what is owed on their mortgages. And few homes are selling. New-home sales fell in July to a seasonally adjusted annual rate of 298,000, the weakest pace in five months. This year is shaping up to be the worst for sales on records dating back a half-century. “Renting has become a preferred option for many Americans who lost their jobs during the recession and were forced to leave their homes. Still, the surge in apartments has not been enough to offset the loss of single-family homebuilding. Another reason sales have fallen is that previously occupied homes are a better deal than new homes. The median price of a new home is nearly 28% higher than the median price for a resale. That’s almost twice the markup in a healthy housing market.

“The trade group said Monday that its survey of industry sentiment fell slightly to 14 in September. The index has been below 20 for all but one month during the past two years. Any reading below 50 indicates negative sentiment about the housing market. The index hasn’t reached 50 since April 2006, the peak of the housing boom.”

This Winter at BIG ARTS

When I went to BIG ARTS this week to sign up for community chorus, it reminded me that often island visitors, and sometimes even residents, are not aware that in addition to their many musical performances, special events, movies, and exhibits, BIG ARTS also offers a wonderful selection of classes and workshops. Here is a smattering of some that are available this winter: Painting & Drawing (from acrylics & oils, to watercolors, pastels, mixed media, decorative painting, Chinese painting, still life, with models, & more); Fine Crafts (including jewelry, metal-smithing, collages, papier-mache, basketry, printmaking, glass fusing, & more); Pottery (clay, sculpting, wheel throwing); Dance/Fitness (tap, jazz, hip hop, youth, Pilates); Discussion Groups; Language; Music (chorus, band, & lesson); Technology & Art (iPhone, iPad, iPod, iCloud, iPhoto, iTunes, Facebook & Social Media, Mac, photography, Photoshop, & more); Theater; Writing; and the Winter Academy, which is a variety of multi-week sessions on topics as varied as health care, music, story telling, creative thinking, psychology, and law. It is always good to sign up early.

Sanibel & Captiva MLS Activity September 16 – 23

Sanibel 

CONDOS
1 new listing: Sandpiper Beach #105 2/2 $640K.
5 price changes: Captains Walk #F7 2/1.5 now $229K; Tennisplace #E33 2/1.5 now $278K; Sundial #F408 1/1 now $303K; Loggerhead Cay #232 2/2 now $585K; High Tide #B202 2/2 now $1,447,500M.
No new or closed sales.

HOMES
2 new listings: 1436 Sandpiper Cir 2/2 half-duplex $315K, 2560 Coconut Dr 4/3 $538K.
5 price changes:  1123 Sand Castle Rd 3/2 now $544.9K, 4215 Gulf Pines Dr 5/3.5 now $619K, 1449 Tahiti Dr 3/3 now $659K, 1339 Par View Dr 3/2 now $769K, 2294 Wulfert Dr 4/4 now $1.089M.
1 new sale: 4632 Rue Belle Mer 3/2 listed for $549.9K.
6 closed sales: 491 Rabbit Rd 2/2 $339K, 495 East Lake Rd 3/2 $342.5K, 1525 Wilton Ln 3/3 $482K, 3550 Bunny Ln 3/2 $485K, 697 Birdie View Pt 3/2 $555K, 536 Lighthouse Way 4/4.5 $2.15M (our listing).

LOTS
No new listings.
5 price changes: 1657 Sabal Sands Rd now $299,999; 0 Gulf Pines Dr now $319K; 4309 Gulf Pines Dr now $319K; 2562 Coconut Dr now $449K; 6401 Pine Ave now $779K.
No new sales.
1 closed sale: 629 Lighthouse Way $550K.

Captiva

CONDOS
No new listings.
1 price change: Tennis Villas #3120 1/1 now $229K.
No new or closed sales.

HOMES
No new listings or price changes.
1 new sale: 16891 Captiva Dr 3/2 listed for $1.295M.
No closed sales.

LOTS
Nothing to report. 

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

Until next Friday, here’s to more wonderful weather and clear sailing for all,

SanibelSusan

P.S. If you noticed that the blog this week is posted in a new theme, you are right. I’m still technically challenged by all of this; but the old dog is working on some new tricks, so stand by. As always, your comments are appreciated.

Today’s Roseate Spoonbill & Other Realtor Stuff

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While driving onto the island this morning, I noticed a lone roseate spoonbill wading just off the causeway. It was unusual, first since it was alone – as they are often seen in groups, but also because it had such a distinct color difference between its upper and lower body – snowy white on top and bright pink, almost fuscia, from the wings down. Too bad I wasn’t in a spot where I could stop and take a quick picture. It made me go back to the office and Google these birds again. Here’s a little “did you know” about these wonderful animals.

Spoonbills eat shrimp. Shrimp eat algae and the algae make their own red and yellow pigments, called carotenoids. Some scientists believe that the pink coloration that roseate spoonbills acquire as they mature is due to their diet of carotenoid-rich organisms like shrimp. The more they eat, the pinker they get. Flamingos are close relatives of the roseate spoonbill. They both have pink feathers, but the flamingos are much larger, with a longer neck. From March through October, roseate spoonbills prefer bays, marshes and estuaries along the Gulf Coast. Occasionally they will travel inland through the eastern third of Texas. In winter, most roseate spoonbills migrate to Central and South America, and the West Indies.

The slideshow above has photos taken by my friends, Doris and Hans from Switzerland. Love their island pix! They like roseate spoonbills almost as much as SanibelSusan.

September Realtor® Membership Meeting

Even with the island quiet, we had a good turn-out yesterday at our monthly Sanibel & Captiva Islands Association of Realtors® membership meeting. Ada Shissler, one of our semi-retired members, who started Sanibel Beautification and also is a long-time island boater, gave a presentation on our local canals and the benefits of our area to those who enjoy being on the water. Her pointers on things Realtors® should know when selling waterfront property in Southwest Florida were well received. As a boater myself, it was good to learn a few tidbits from a gal who put herself through college working as a member of the Seamen’s Union on the Great Lakes. I thought I knew Ada pretty well, but sure didn’t know that about her past. The locals call that “learning about a life B.S.” (before Sanibel).

Galloway Captiva Triathlon

Due to this event permitted by Lee County, Sanibel-Captiva Rd will be closed on Sunday, Sep 18, from 6:45 a.m. to 8:45 a.m. for traffic heading on and off of Captiva Island in the area of Blind Pass. Traffic on Sanibel-Captiva Rd at Blind Pass will be routed in a one-way circular pattern around Pine Ave to Coconut Dr and Mangrove Ln back to Sanibel-Captiva Rd area until Captiva Rd is re-opened. Instead of making that loop, you might want to consider stopping for breakfast at Sunset Grill located at the corner of San-Cap and Pine. Their gulf view is terrific and their chow is great!

Future Rental Bookings

Today, I again had lunch with colleague Dave Schuldenfrei who manages VIP’s Rental Divisions. He concurred that the islands are very quiet now, though his company does have a few units booked both this week and next. More importantly, he said that future bookings are well ahead of past years at this time. He thinks we will have a busy winter on the islands. We all hope so! If you know someone looking for a rental have them check out VIP’s offerings at www.VIP-VacationRentals.com

Sanibel & Captiva MLS Activity September 9-16

Sanibel
CONDOS
2 new listings:  Colonnades #43 1/1 $169K, Duggers Tropical Cottages #2 1/1 $286K.
2 price change:  Lighthouse Point #217 3/2 now $400K, Sunward of Sanibel #101 3/2 now $775K.
1 new sale:  Pointe Santo #C7 2/2 listed for $749K.
No closed sales.

HOMES
4 new listings:  1948 Roseate Ln 2/2 $389K, 490 Old Trail Rd 3/2 $459K, 476 Las Tiendas Ln 3/2 $679K, 927 Limpet Dr 3/3 $749K (foreclosure).
5 price changes:  1755 Jewel Box Dr 3/2 now $629K, 618 N Yachtsman Dr 3/2 now $772.5K (short sale), 557 N Yachtsman Dr 4/3 now $789K, 1066 Bailey Rd 3/3 now $1.895M, 4949 Joewood Dr 5/5 now $2.975M.
No new sales.
2 closed sales:  4797 Rue Helene 3/2 $542.5K, 2622 Coconut Dr 3/3 $1.35M.
 
LOTS
2 new listings:  5321 Punta Caloosa Ct $420K; 2427,41, & 57 (triple parcel) Palm Ridge Rd $950K.
3 price changes:  437 Lake Murex Cir now $249.9K, 513 Sea Walk Ct now $325K, 4954 Joewood Dr now $469K.
No new or closed sales.
 
Captiva
CONDOS
No new listings.
1 price change:  Bayside Villas #5134 1/2 now $285K.
1 new sale:  Lands End Village #1639 2/2 listed for $1.225M.
No new or closed sales.

HOMES
1 new listing:  16891 Captiva Dr 3/2 $1.295M.
1 price change:  11514 Andy Rosse Ln 4/4 now $2.395M.
No new or closed sales.

LOTS
Nothing to report.

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

The Sun is Out & There Still Is Time to Come to the Islands for the Holiday. Plenty of Vacancies Here!

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We were hoping that the islands would be busy during the upcoming 3-day weekend, but today when we checked the bookings for our seasonal-rental condo listings, we found plenty of vacancies. Perhaps that is weather related as it rained here much of this week. It’s bright and sunny out now though!

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There has been plenty of action today from the work crews and construction equipment working on the new bike path directly in front of our office. When the work is done our Listing Coordinator Elise is going to have a first-hand view of every biker that passes by. Bet that brings us more business! Meanwhile, we are open all weekend for those buyers looking to make their island purchases before “season”.

Sanibel Scoop

It’s a good indication that “season” is just around the corner when the local papers start reporting more upcoming events. Here are a couple of newsworthy items from the “Island Sun” this week:

  • Sanibel 1927 Community House rendering showing proposed improvementsSanibel Community Association launches $3.5 million campaign to preserve, renovate, and modernize The Community House (The 1927 House). It’s exciting. To learn more, visit www.SanibelCommunityHouse.net or log on to the website especially designed for the capital campaign at www.The1927House.org.
  • International Coastal Cleanup is September 17. This year, the Sanibel-Captiva Conservation Foundation will coordinate the cleanup on the beaches of Sanibel and Captiva, working with the Ocean Conservancy, Keep Lee County Beautiful, and The City of Sanibel. In this international effort, hundreds of thousands of volunteers around the world will form the largest one-day event on behalf of clean oceans and waterways. Just report for duty at 9 a.m. on the Saturday, the 17th at the SCCF Nature Center at 3333 Sanibel-Captiva Road or at Captiva Kayak at 11401 Andy Rosse Lane on Captiva. Cleanup lasts until noon. Then, bring your bags of trash and debris back to SCCF and join fellow volunteers for hotdogs on the porch!
  • Mark your calendar: CROW’s (The Clinic for the Rehabilitation of Wildlife) has announced that the 30th Annual Taste of the Islands will be on Sunday, November 13 at Sanibel Community Park (right across the street from our office on Periwinkle Way).

National Debt Ceiling Agreement

According to the National Association of Realtors® (NAR) “The Washington Report”, the debt ceiling agreement signed into law on August 2 has no direct impact on real estate tax rules or spending provisions. No tax laws of any kind were changed, nor were any housing programs cut. The legislation provides very broad dollar targets for overall spending reductions over 10 years, through 2021. The broad categories of reduced spending are defense and some so-called “discretionary” domestic spending. Beyond the target dollar amounts, no specifics are provided. Even though the package has no revenue provisions and makes no changes to the mortgage interest deduction (MID), carried interest or any other tax/revenue rule, we are not out of the woods yet. The next 100 days could be the most important part of the battle over MID and carried interest. NAR will be engaged actively in lobbying Congress on the importance of preserving real estate tax provisions.

New Appraisal Rules Effective September 1

A posting by Florida Realtors® yesterday reminded us that appraisers must now follow new rules beginning yesterday, providing the appraisal goes to government-sponsored enterprises (GSE) Fannie Mae or Freddie Mac. A required Uniform Appraisal Dataset (UAD) effective September 1, 2011, also was supposed to impact Federal Housing Administration (FHA) loans, but FHA postponed compliance until January 1, 2012. The FHA delay confused some industry observers who expected Fannie Mae and Freddie Mac to follow suit, and rumors followed. However, the National Association of Realtors® (NAR) told appraisers on August 26 that it confirmed no change for the GSEs even though FHA postponed its compliance deadline. “Appraisal reports submitted to the GSEs on or after (September 1, 2011) are required to be UAD compliant,” NAR said. “You can get more information on UAD requirements by visiting the Fannie Mae or Freddie Mac UAD web pages.” For many appraisers, the change means they must use different software if they have not already made the change. The change affects single family and condominium exterior and full forms only. In general, the new rules say:
• Appraisers must use UAD compliant software.
• Appraisers must standardize the abbreviations they use and values for many form fields.
• They also must use standardized ratings and definitions for quality, condition, view and location sections on the appraisal.

Foreign Investors Will Not Save U.S. Housing Market But May Help Some States

I am frequently asked what percentage of my business comes from foreign buyers. Though that number has increased slightly in recent years, the article I read today in the September 2011 issue of SW Realtor® by Krista Franks offers more insight.

“The combination of declines in home prices and in the value of the dollar is making U.S. homes very affordable for some foreign buyers, according to a Capital Economics report released Thursday. However, the research firm says foreign demand is not likely to bring recovery to the American housing market in the near future.

“The 33% decline in housing values since the beginning of 2006 translates to an even greater decline when the dollar value is compared with some foreign currencies, such as the Chinese renminbi, Canadian dollars, and the euro. In fact, for Canadians, the U.S. homes are more affordable now than any time in the past 35 years. The 33% decline represents at 45% decline when converted to Chinese renminbi and a 43% decline for Canadian dollars. While these percentages relate to average prices, “if overseas buyers are attracted to the many foreclosed properties, which tend to be sold with an extra discount of around 25%, then U.S. housing looks even more attractive,” states the Capital Economics report.

“For the 12-month period ending March 2011, international buyers made up 3.8% of existing homes sales values. This is down from 4.6% during the same period last year. The decline may be more a result of falling prices and the lower dollar value than a decline in foreign interest. According to Capital Economics, the actual number of homes bought by foreign clients has either fallen slightly or not at all. Similarly, the percentage of Realtors® who worked with at least one overseas client for the year remained the same as the previous year – 28%.

“Nevertheless, restoring international sales to their 1998-to-2010 value levels would require a fivefold increase, which is highly unlikely, especially in the short term, according to Capital Economics. While foreign investors may not restore the U.S. housing market over the next few years, they may boost some states’ real estate markets.

“According to the National Association of Realtors®, 58% of all international transactions in the 12-month period ending March 2011 took place in Arizona, California, Florida, and Texas. The lion’s share – 43% – occurred in Florida and California. Florida is seeing an increase in Canadian buyers, while California is experiencing increases from China. Florida’s high number of foreclosures – and thus high number of discounted homes – is likely part of the draw for Canadian buyers. Barring another global financial crisis, foreign investing in the U.S. housing market is likely to increase over the next 10 to 20 years. However, the increase over the next five years will not be enough to recover the market.”

Sanibel & Captiva MLS Activity August 26 – September 2

This is the east-end of Sanibel Island looking west

Sanibel
CONDOS
4 new listings:  Spanish Cay #B1 2/2 $299K, Seawind #A103 2/2.5 $485K, Loggerhead Cay #234 2/2 $575K, Sandpiper Beach #504 2/2 $729.9K.
4 price changes:  Colonnades #9 1/1 now $160K, Mariner Pointe #1062 2/2 now $299K, Sanibel Moorings #1622 2/2 now $350K, Sanctuary Golf Villages I #3 3/3 now $699K.
4 new sales:  Blind Pass #D205 2/2 listed for $289K (short sale), Mariner Pointe #1012 2/2 listed for $299K (our listing), Village of Sanibel #R-1 3/2.5 listed for $339K (foreclosure), Coquina Beach #3E 2/2 listed for $419K.
2 closed sales:  Dugger’s Tropical Cottages #5 1/1 $222K (short sale), Sanibel Arms #D8 2/2 $399.9K.

 
HOMES
3 new listings: 721 Cardium St 2/1 $297.5K, 531 Piedmont Rd 2/2 $329K, 5841 Pine Tree Dr 3/2 $549.9K.
5 price changes: 4632 Rue Belle Mer 3/2 now $549.9K, 940 S Yachtsman 3/2.5 now $595K, 3050 West Gulf Dr 3/2.5 now $750K, 2294 Wulfert Rd 4/4 now $1.139M, 1765 Venus Dr 3/3 now $1.299M.
3 new sales: 495 East Lake Rd listed for $399K, 5659 SanCap Rd 2/2 listed for $549K, 4628 Rue Belle Mer 3/3 listed for $739K.
5 closed sales: 1674 Bunting Ln 3/2 $450K, 3017 Turtle Gait Ln 3/2 $541.5K, 617 Lake Murex Cir 3/2 $550K, 676 Anchor Dr 3/3 $750K, 1670 Dixie Beach Blvd 3/2 $875K.
 
LOTS
No new listings.
1 price change: 4077 Coquina Dr now $289K.
No new or closed sales.
 
Captiva
CONDOS
No new listings, price changes or sales.
1 closed sale: Sunset Captiva #202 2/2 $725K.
 
HOMES
No new listings.
1 price change: 11516 Andy Rosse Ln 6/6 now $2.69M.
No new sales.
1 closed sale: 16167 Captiva Dr 3/3 $1.2M.
 
LOTS
Nothing to report.
 

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

 

Best wishes from The SanibelSusan Team for a pleasant Labor Day weekend.

Flash Mob & Governor at Realtors Meetings in Orlando, While It’s Quiet on Sanibel & Captiva Islands

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Florida Realtors® Annual Business Meetings, Convention, & Trade Expo

As usual for this time of the year, things were pretty quiet on the islands this week when I headed to Orlando to the Florida Realtors® Annual Business Meetings, Convention, and Trade Expo. Naturally, we all breathed a sign of relief earlier on when the Hurricane Irene spaghetti plots moved its path away from Florida. Those summer tropical storms are about the only things that have wrecked havoc with these meetings in past years. (Our thoughts remain with those on the eastern seaboard until that darn storm passes. We have too much experience with them in Florida to take them lightly.) 

Thursday at the convention, often known as Super Sales Day, brings in Realtors® from all over the state, as it is jam-packed with classes and the annual awards luncheon with keynote address. Following the awards, world-class guitarist, stand-up comedian, and personal development expert Mike Rayburn wowed attendees with is “What If…and Why Not?” presentation. If you ever have an opportunity to see or hear him, please do. He’s great!

SanibelSusan Teammates Lisa and Dave came up for a couple of days too, their first convention. So many classes and forums take place (over 50 in total) and sometimes simultaneously that we all come away with excellent info to share. Topics this year varied from handling sales in today’s economic climate, social media trends, and home pricing strategies, with some of the top industry speakers. The trade show alone had more than 125 companies showcasing their latest products, technology and other business tools. We come back invigorated, smarter, and ready to better tackle today’s market.

Fannie Mae Reports: Dark Clouds Loom But No Recession

An article posted by Florida Realtors® on Tuesday said “The economy was hit by a barrage of disappointing news during the last month, which led to a downgrade in the overall macro economic forecast released today by Fannie Mae’s Economics & Mortgage Market Analysis Group. While the August 2011 Economic Outlook does not forecast a double dip recession, it finds that the chance of a double-dip recession is roughly equivalent to a coin toss. For all of 2011, economic growth is expected to downshift to 1.4% from 3.1% in 2010. Growth is expected to pick up in 2012, but only to about 2.0%, compared to the 3.1% projected in the July forecast.

““Key factors … have revealed that we have a bigger hole to dig out of, which explains the consumer angst over the lack of employment growth,” says Fannie Mae Chief Economist Doug Duncan. “Moreover, European financial market and fiscal policy turmoil, coupled with the U.S. debt ceiling debate, have hit on consumer confidence, which is at recessionary levels.” Duncan says Americans are clearly worried about global, big-picture concerns. “Housing has moved into second position behind general economic concerns among consumers, which is demonstrated in our National Housing Survey results,” Duncan says. “Our July data shows that 70% of Americans think the economy is on the wrong track, up from 60% a year ago. In turn, despite historically low interest rates, consumers are still saying they don’t see this as a good time to go out and borrow money to buy a house.”

“Housing activity is expected to weaken along with the overall economy due to a renewed decline in business and consumer confidence, and a weaker jobs forecast. One exception is the rental housing market. The rental vacancy rate (the share of rental housing that is vacant and for rent) plunged from 9.7% to 9.2% in the second quarter of 2011, and is now at its lowest rate in nine years. A lower rate of homeownership suggests that a rising share of households have gone from owning to renting.”

Increase in Summer Tourism

One of Ann Mitchell’s articles in today’s “Island Sun” had a particularly nice ring to it. “The sound of European accents has been music to the ears of many island businesses this summer, perhaps signaling a return to better days in this tourism-based economy. For the last three to four years, Europeans have stayed away due to factors such as the economy and unfounded fears of oil-marred beaches.

“What makes Europeans such welcome visitors is that being long-haul travelers they tend to stay longer than domestic tourists. They average five to seven days, says Jeff Shuff, general manager of ‘Tween Waters Inn on Captiva. “With Americans, we are lucky if they stay a weekend. That’s why our best seller is our three-night package.” “This is probably the best summer we have had since 2008,” said Shuff, estimating that business is up about 15%. He said a weak dollar is also making Florida vacations a good buy for foreign tourists.

“July occupancy at the Island Inn on Sanibel was 97.1%, which is about as good as it gets, and August “has been terrific,” said General Manager Chris Davison. To date, this month’s business is up 119% year-over-year. Island Inn, owned by dozens of shareholders, had been suffering from outdated management and a private club image. It’s now aggressively seeking business and has undertaken a half-million-dollar improvement program. “Even though we are far from being out of the woods, people are no longer scared to spend and there is pent-up demand,” Davison said. “There is good value here on the islands” and hotel rates are attractive. Lodging operators have been sweetening the deals with promotions such as $80 in dining credits with a three-night stay at ‘Tween Waters Inn, to mark the inn’s 80th anniversary.

“Others, like the Island Inn, put together discount deals with local businesses and attractions in June. Mark Pucher, general manager of Jerry’s Food on Sanibel, also reports “a really, really good summer.” While he didn’t have final numbers, Pucher estimates summer business is up about 7%. “We have seen a lot of Europeans. The oil chased them away last year… but they decided to come this year.” Pucher says about 85% of Jerry’s business is from tourists. “A lot of them saved and didn’t do anything last year so they had extra money to spend.”

“Besides Europeans, summer stalwarts tend to be people within a three-hour drive of Sanibel and Captiva, those living between Orlando and Miami. Billy Kirkland, owner of Billy’s Bikes, called summer business “OK, not the best but not the worst by any means.” He added, “July was definitely better than last year.” Kirkland credits lower gas prices, people feeling a little better about the economy and the good exchange rate for Europeans.

“Earlier this week, reports of Hurricane Irene forming in the Atlantic spurred calls from people with hotel bookings, but as the storm tracked east, fears eased. Predicting future bookings is a guessing game for hoteliers these days because few people make reservations much in advance. Travelers rely heavily on Internet sites such as TripAdvisor and Hotels.com, Davison said. “You will have people booking their reservation from the parking lot on their cell phone,” he said.

“With school back in session, tourism has slowed in late August. As usual, some island businesses have closed or are closing for several weeks to ride out the slowest time of the year, give employees vacation time and do clean-up and maintenance. Among them are Trader’s Store & Café, The Island Cow, Why Knot, Over Easy Cafe and the Sanibel Bean.”

Sanibel & Captiva MLS Activity Aug 19-26

Sanibel
CONDOS
1 new listing: Sanibel Moorings #1312 2/2 $399,999.

1 price change: Cottage Colony West #101 1/1 now $575K.

1 new sale: Pelicans Roost #103 2/2 listed for $590K (short sale).
3 closed sales: Captains Walk #E8 2/2 $240K, Sundial #R203 2/2 $460K, Sand Pointe #227 2/2 $615K.
 
HOMES
5 new listings: 5659 SanCap Rd 2/2 $549K, 1233 Middle Gulf Dr 3/2 $650K, 1048 Fish Crow Rd 3/2 $775K, 411 Lighthouse Way 4/3 $1.395M, 2308 Troon Ct 4/4 $1.695M.
5 price changes: 954 Donax St 3/3 now $399K, 1433 Jamaica Dr 5/4 now $479K, 220 Southwinds Dr 2/2 now $549K (our listing), 6192 Henderson Rd 3/2 now $899K, 1360 Eagle Run Dr 5/3.5 now $999K (short sale).
3 new sales: 6076 Castaways Ln 3/2 listed for $900K, 600 N Yachtsman Dr 3/2.5 listed for $939K (short sale), 2332 Troon Ct 4/5 listed for $1.05M (short sale).
1 closed sale: 791 Pen Shell Dr 4/3 $1.1M.
 
LOTS
1 new listing: 335 East Gulf Dr $335K.

No price changes.
3 new sales: 946 Fitzhugh St listed for $129,555 (short sale), 537 Lighthouse Way listed for $699K, 629 Lighthouse Way listed for $769K.

No closed sales.

 
Captiva
CONDOS
2 new listings: Marina Villas #603 2/2 $550K, Lands End Village #1640 3/3 $1.899M.
No price changes, new or closed sales.
 
HOMES
No new listings.
1 price change:  51 Oster Ct 2/2.5 now $695K.
No new or closed sales.
 
LOTS
Nothing to report.

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

The Islands Are Lush & Green This Week

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The Wentworth by the Sea, New Castle, NH

SanibelSusan is back from a quick long weekend and high class reunion in Maine. That was sooo much fun. If you get to southern Maine and the New Hampshire beach area, staying at The Wentworth by the Sea is always a treat. The view is pretty darn nice at my sister’s home in Kittery Point, ME too.

Hoyt's Island, Kittery Point, ME

Going out of town once again worked like a charm in getting one of our home listings sold. It certainly helps to have such a terrific team here to keep things moving when I can escape for a couple of days. (Thank you to Dave, Elise, and Lisa).

Southwest Florida received a lot of rain this week. We needed it so we really can’t complain, but it makes showing property interesting – dodging showers and mosquitoes – plus heat and humidity. Lisa and I were out yesterday with home buyers and will be out again tomorrow looking at more homes.

Overlooking San Carlos Bay, Sanibel Island

This afternoon, I showed a couple of condos and will be revisiting their two favorites in the morning. (Rumor has it that we are lucky to have this showing activity. I’ve spoken to quite a few colleagues since I returned on Tues and most offices are seeing little or no sales action. It’s just that time of the year.)

The rental organizations also advise that beginning tomorrow visitor traffic is down through the end of Sept.

With all of the economic news this week, I almost hate to mention more, but here is a quick interest rate summary, followed by our weekly report of the Sanibel & Captiva Islands real estate activity over the past seven days.

Pool at Seashells of Sanibel

Mortgage Rates Fall Again

An Associated Press article today said “Experts polled by Bankrate.com this week remain divided on the short-term fate of mortgage rates. An equal number (36%) expect a decrease or, at least, no change. The remaining 28% foresee an increase.

“Fixed mortgage rates fell to at or near record lows. That’s good news for the few who can afford to buy a home or are able to refinance. But the rates have done little to lift the ailing housing market.

“Freddie Mac said Thursday that the average rate for the 30-year fixed mortgage fell to 4.32% this week from 4.39%. The 30-year loan hit a record low of 4.17% in mid-November. The average rate on a 15-year fixed mortgage, a popular refinancing option, fell to a record low of 3.5%, from last week’s record rate of 3.54%.

“Mortgage rates tend to track the yield on the 10-year Treasury note. A weakening U.S. economy has led many investors to shift money from stocks to bonds, which are seen as safer bets. That has pushed Treasury yields to historic lows.

“In theory, low mortgage rates should provide a boost to the troubled housing market. But so far they haven’t helped much. Sales of previously occupied homes fell in June for a third straight month to a seasonally adjusted 4.77 million. The pace is lagging behind the 4.91 million homes sold last year – the fewest since 1997.

“New-home sales also declined in June and are trailing last year’s sales, which were the worst on records dating back nearly half a century.

“Many people can’t take advantage of the low mortgage rates. Banks are insisting on higher credit scores and larger down payments from applicants. Others have too little equity invested in their homes to qualify for loans.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. The average rate on a five-year adjustable-rate mortgage fell to 3.13%, its lowest level on records that go back to January 2005. Last week’s reading of 3.18% also was a record low.

“The average rate for one-year adjustable-rate loans plunged to 2.89% from 3.02% last week. That’s a record low dating back to 1984.”

Sanibel & Captiva MLS Activity Aug 5-12

West Gulf Dr beach near Seashells of Sanibel

Sanibel
CONDOS
3 new listings:  Lake Palms #2 2/2.5 $319.9K, Seawind II #5 2/2.5 $599K, Island Beach Club #P1E 2/2 $749.9K.
5 price changes:  Lighthouse Point #332 2/2 now $474K (our listing), Sundial #T403 2/2 now $598K, Kings Crown #313 2/2 now $695K, Kings Crown #215 2/2 now $710K, Sedgemoor #202 3/3.5 now $2.499M.
2 new sales:  Sanibel Arms #D8 2/2 listed for $409.5K, Sand Pointe #133 2/2 listed for $579K (short sale).
1 closed sale:  Spanish Cay #A1 2/2 $315K (our buyer & seller).
 
HOMES
1 new listing:  9470 Balsa Ct 3/2 $799K.
6 price changes:  480 Peachtree Rd 3/3 now $549K; 1538 Royal Poinciana Dr 3/3 now $685K (short sale); 3050 West Gulf Dr 3/2.5 now $769K; 2332 Troon Ct 4/5 now $1.05M (short sale); 1069 Bird Ln 4/3.5 now $2.75M; 1272 Isabel Dr 4/4.5 now $3,999,999.
9 new sales:  965 Main St 4/2 listed for $249K, 998 Greenwood Ct 3/2.5 half-duplex listed for $335K, 1425 Sandpiper Cir 2/2 half-duplex listed for $359K, 3550 Bunny Ln 3/2 listed for $499K, 3017 Turtle Gait Ln 3/2 listed for $599K; 947 Lindgren Blvd 3/2 listed for $749K; 2622 Coconut 3/3 listed for $1.495M, 1751 Jewel Box Dr 4/4 listed for $1,499,999; 536 Lighthouse Way 4/4.5 listed for $2.495M (our listing). 
No closed sales.

LOTS
Nothing to report.
 
Captiva
CONDOS
Nothing to report.
 
HOMES
No new listings.
1 price change:  11512 Andy Rosse Ln 2/2 now $945K.
No new or closed sales.
 
LOTS
Nothing to report.

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

Florida is Cooler Than Much of the Nation & It’s a Great Time to Look at Island Castles

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I was off showing property last weekend and again on Monday. Nothing to show for it yet, but that seems to be the business norm these days. A few prospective purchasers are looking, but few are actually buying (not that uncommon in the summer, but even slower than usual this year).

I heard the same yesterday at our monthly Sanibel & Captiva Islands Association of Realtors monthly membership meeting and our Thirsty Thursday (evening) networking session with our Realtor affiliate members. The general theme is that a few seasoned colleagues are out showing or working with clients who are considering buying or moving up, just not many are making it to contract (thought they think they will eventually). Affiliates are seeing business pick up with owners again making property improvements, remodeling and building.

Unfortunately, it seems that colleagues new to the business are struggling as there seems to be little action from new visitors. Rather, most sales are coming from referrals (we got two new ones this week) or island owners who already love it here and recognize that the time is right. That has been the tone elsewhere too.

I will be attending our Florida REALTOR® annual meetings next month so have been receiving more info lately describing the state-wise business picture. Many Realtor® associations throughout many states are losing members as the economic/housing issues affect their business.

The SanibelSusan Team remains thankful that we continue to have a terrific year. Our 2011 Sanibel annual production stats were updated again this week, and though I have dropped from 3rd to 4th in total sales volume, it still is a very respectable position (out of 296 Realtor® members. That is a drop in our membership too. It seems like just yesterday, we had 330+ Realtors on Sanibel & Captiva.)

Below are this week’s island and real estate tidbits, followed by a summary of showing of the island MLS action since last Friday. Unfortunately there was not much activity.

Shell Harbor and Sanibel Estates Canal System

From Mariner Pointe toward Sanibel Marina, long B4 dredging

City Council on Tues established a special assessment district to fund future dredging of the entrance to the canal system near the Sanibel Marina. Dredging was done earlier this year. Since 1995, the same area has been dredged seven times, with the next project scheduled for 2013 at a cost of $33K. Under the special assessment formula, the City pays 1/3, the marina pays 40%, and the homeowners pay the rest. For each owner, it will amount to $20/year. This assessment will allow the City to control when the work is performed; however, a separate assessment would be needed if future canal soundings find that the internal canals need dredging.

Sanibel City Budget

Also on Tues, City Council left until later in the budget process the question of further paying down the liability on two pension funds (the general employees’ pension fun and the police pension fund) or the sewer debt or both. In recent years, declining property values have reduced tax revenues, but this year taxable values leveled off with only a slight drop from last year. Before further discussion at the next budget session slated for Sept 10, Council has asked staff to bring back further data, however, in her budget message, City Manager, Judie Zimomra noted that “City salaries remain flat for the 4th consecutive year; full-time employees total 114, down from 142 in 2007; health care costs for employees are contained at current levels; the proposed budget would pay down the pension plans’ unfunded liability by over $2.5M; with the exception of sewer rates, all other City fees are held flat; and $2.8M is allocated toward general government capital improvements (including $1M of capital projects rolled over from the prior years).”

Big Mortgages Are Back

I belong to LinkedIn which posted a good article last Saturday in the “Wall Street Journal/Weekend Investor”. Much of that article relates to financing of high-end property and describes how jumbo loans are cheap historically now, compared to conventional loans. Interesting how low interest rates are driving high-end buyers to supersized mortgages “at a pace unseen since the housing boom…. So-called jumbo loans—generally those bigger than $417,000—are a better bargain now than they have been in years…. Not only are jumbo loans cheap relative to historical rates, they are cheap relative to smaller “conforming” loans, which are backed by Fannie Mae, Freddie Mac and federal agencies. The difference between the rates on a jumbo mortgage and a conforming loan is just 0.43 percentage point, the narrowest spread since 2007. That makes borrowing bigger amounts more attractive than it has been in recent years, and also presents opportunities for buyers who might have been previously locked out of pricey markets due to higher rates…Jumbo loans accounted for almost one in every six new mortgages, including new-home purchases and refinances, in the first quarter of 2011….At that pace, the number of jumbo loans issued in 2011 could be the highest in five years, when the housing market was near its peak. That is in part because people are trying to lock in a government-backed jumbo loan now ahead of a planned limit reduction. Starting in October, the federal government will start easing its support of jumbo loans as large as $729,750, which it began as an emergency measure three years ago. The new limits will vary by location, but will drop to $625,500 in top-tier markets such as New York, Los Angeles and Washington, D.C. Many potential buyers are trying to take advantage of substantial price declines of expensive homes over recent years…. That includes people who bought well before the housing bubble and who are still significantly above water now and want to trade up while prices are low. Other prospective buyers who sat out the boom but stayed employed and saved money during the downturn now have money for pricier houses, and the jumbo loan is their ticket in. Depending on location, jumbo loans typically require a down payment of 20% to 30%”…. But borrowers should act quickly. Since lenders won’t be able to sell as many jumbo loans to government-backed agencies—thereby unloading risk—they may not originate as many…. What’s more, the added risk means they likely will raise their interest rates. The upshot: buyers could have fewer choices and face pricier loans…. Still, some housing analysts say that with the government out of the way, more lenders will eventually start competing against one another—perhaps as early as next year. The renewed competition could result in easier lending standards over time.”

 

Banks Must Get Back to Business

Another good article posted by the National Association of Realtors® Chief Economist, Lawrence Yun, looks differently at the broader picture and does not have quite as positive a spin as the article above. Here are some excerpts: “You (Realtors®) already know from real-world experience that banks are not lending. But now your experience is backed by hard data from the FDIC. The agency found that in the year ending March 2011, bank deposits rose by $300 billion, assets grew by $80 billion, and profits were up by $12 billion. Yet loan volumes fell $260 billion to $7.24 trillion. The banking industry’s old “3-6-3 rule” says that bankers pay 3% interest to depositors, make loans to depositors at 6%, and be out on the golf course by 3 p.m. That rule now seems to be replaced with a new 0-0-3 rule: Offer nothing to depositors and nothing to those who want to borrow, and earn 3% by buying tradable assets like government bonds. To be sure, profit is not a bad thing. But when banks accumulate profit at the expense of doing what they’re in business to do – make loans – they put brakes on the economy. We might already be seeing the consequences with the economic recovery showing signs of sputtering….What’s…likely (to happen in the months ahead) is that any additional price contractions will be modest. Home values have already fallen considerably, to historically justifiable levels. And in areas where jobs are strong, prices are solid or heading up. But the lesson is clear: A return to banking the old fashioned way can speed the housing recovery.”

Ten Signs Your Property May Be Overpriced

I cannot resist posting this article since it is so “right on”. It was posted this week on Realtor.com and written by a Realtor® from North Windham, CT, with her “10 ways to determine if your property may be priced too high for the market:

10. You priced along with other homes listed for sale, rather than homes that had actually sold.

9. Despite the fact values have fallen all over town and continue to decline, you believe this doesn’t apply to your home.

8. You priced your home based on how much you spent improving it.

7. You priced your home based on an appraisal from well over 3 months ago.

6. You believe your house is “unique” and different from all other homes, despite its similarities in size, age, condition and location to other homes. You believe your homes “uniqueness” warrants a higher price than all those other homes.

5. You sincerely believe that if you just stay on the market for long enough, eventually that one “right” buyer will come along, fall in love with your house and pay whatever you’re asking.

4. Despite many showings, no one has made an offer on your home.

3. Your home has been on the market for a very long time…6 months…12 even.

2. Your Realtor didn’t agree with your pricing, or worse – the original Realtor wouldn’t list your home at “your” price so you had to search for someone else who would.

1. You are getting NO SHOWINGS. This is the number one sign that your home is overpriced. If it’s been marketed, but no one is interested in coming inside, the market has already rejected your home at its current price.”

Sanibel & Captiva MLS Activity July 15-22

Sanibel
CONDOS
5 new listings: Captains Walk #B6 1/1 $175K, Blind Pass #E102 2/2 $439.9K, Sand Pointe #132 2/2 $599K, Sundial #A301 2/2 $949K, Sanddollar #B104 2/2 $995K.
4 price changes: Sundial #D207 1/1 now $237,750; Coquina Beach #5A 2/2 now $329K; Sandalfoot #3D1 2/2 now $500K, Pine Cove #1A 2/2 now $799K.
1 new sale: Sanctuary Heron #2B 3/3.5 listed for $619.9K.
2 closed sales: Loggerhead Cay #101 2/2 $611K, Pointe Santo #E41 2/2 $860K.
 
HOMES
1 new listing: 3705 West Gulf Dr 5/5.2 $3.499M.
6 price changes: 480 Peachtree Rd 3/3 now $574.9K, 1328 Seaspray Ln 4/4 now $649K, 4215 Gulf Pines Dr 5/3.5 now $679K, 1019 Lindgren Blvd 3/2 now $739K, 947 Lindgren Blvd 3/2 now $749K, 1301 Par View Dr 3/3 now $999K,
4 new sales: 617 Lake Murex Cir 3/2 listed for $585K, 676 Anchor Dr 3/3 listed for $819K, 827 Angel Dr 3/2 listed for $850K, 720 Birdie View Pt 3/3 listed for $949.9K.
2 closed sales: 1431 SandCastle Rd 3/2 for $665K, 722 Sand Dollar 3/3 for $1.06M.

LOTS
3 new listings: 3001 Poinciana Cir $159K, 1304 Eagle Run $320K, 5044 Joewood Dr $545K.
2 price changes: 861 Birdie View Pt now $399K, 4954 Joewood Dr now $529K.
No new or closed sales.
 
Captiva
CONDOS
No new listings. 
2 price changes: Tennis Villas #3229 1/1 now $235K, Tennis Villas #3120 1/1 now $237,750.
No new sales.
1 closed sale: Bayside Villas 4212 1/2 $255,750.
 
HOMES
No new listings or price changes.
1 new sale: 15557 Captiva 5/4.5 listed for $2.99M.
1 closed sale: 16227 Captiva 5/3 $1M.
 
LOTS
Nothing to report.

This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its Multiple Listing Service.  Neither the association nor its MLS guarantees or is in any way responsible for its accuracy.  Data maintained by the association or its MLS may not reflect all real estate activity in the market.  The information provided represents the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.  If your property currently is listed with another broker, this is not intended as a solicitation of that listing.
I hope your weekends are great ones. Our island temps are expected to continue in the high 80’s/low 90’s days, mid 70’s at night. Funny how this month we have northern visitors come to Florida to say cool. It would be nice if that would also spark a little real estate activity. Until next week, Susan

It’s Summertime & The Living’s Easy…on Sanibel & Captiva Islands

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Sanibel River Estates deeded beach access

It is the end of another pretty quiet week on the islands. We had a few listings shown this week and I was out showing property too. It couldn’t be a better time to look – easy access, great prices, and low interest rates for those looking for financing.

Calls to Action

On Tues, I attended a presentation at our local Association of Realtors® office by our Realtor® state and national political representatives. It was interesting to hear how slow the wheels of motion are moving in both Tallahassee and Washington on the important issues that are affecting the real estate market both locally and throughout the country. I also answered “calls to action” this week on continuing the National Flood Insurance Program and FHA loan limits. Please keep your state representatives aware of your feelings on these important issues too.

WorldProperties.com

Last summer I became Transnational Referral Certified (TRC) and am one of only two island agents to hold that designation. The designation is sponsored by the International Corsortium of Real Estate Associations (ICREA) which is a global referral network which recently expanded from 41 to 121 countries, including the United States. ICREA is a group of the world’s leading real estate associations and sets standards for international real estate practice and facilitates worldwide real estate transactions through its website, WorldProperties.com. The website is being revised and recently was posted in new Beta version. Listings will only be entered as Realtors® pay to subscribe. SanibelSusan’s listings will be among the first! As the global version of the national website Realtor.com, WorldProperties.com is an excellent source of prospective buyers, particularly those looking to Florida for investment. Over the course of the summer as our listings get posted, I will be updating the listing information to include multiple photos and descriptions more in keeping with international buyers. When they are fully up and running, it will be fun to search for property and then have it translated into one of the many languages that will be offered. Here’s hoping this endeavor brings us more international buyers. We have done a fair amount of business with them already this year and look forward to more.

NAR Home Ownership Matters

Our National Association of Realtors® bus promoting home ownership is back on the road this weekend with July stops scheduled in Georgia, Alabama, and Tennessee. Previous stops covered most of the western and mid-western states, including at our Realtor® headquarters in Chicago.

 

 

What Does It Really Mean When You Hear That Foreclosure Activity Is Down? 

An Associated Press article posted yesterday said that “the number of homes taken back by lenders in the first half of this year fell 30% compared with the same 2010 period, the result of delays in foreclosure processing that threatens to stall a U.S. housing recovery…. The decline reflects lenders taking longer to move against homeowners who have fallen behind on their mortgage payments. The banks are working through foreclosure documentation problems that first surfaced last fall and an ensuing logjam in some state courts. Lenders also have put off on taking action against delinquent borrowers as U.S. home sales have slowed this year. As the processing delays mount, however, so has the backlog of potential foreclosures – homes that otherwise would have been repossessed by lenders this year. RealtyTrac estimates that 1 million foreclosure-related notices that should have been filed by banks this year will be pushed to next year….The delayed filings buy more time for many borrowers behind in payments to remain in their homes, perhaps giving them time to catch up or simply to stall their inevitable eviction. But it also means any eventual foreclosures will happen next year, extending the shadow of distressed properties that hovers over the market.
““The best-case scenario is we don’t get back to normal levels of foreclosure activity until 2015, which means the housing market recovery gets delayed by at least a year,” said Rick Sharga, a senior vice president at RealtyTrac. “And given delays in the time it’s taking lenders to move a home from default to foreclosure and then sell the property, the housing turnaround could conceivably be pushed out to as late as 2016”, Sharga said. “It could be the new reality is we’re going to have to accept the fact that home prices in most markets aren’t going to budge much for the next several years while this overhang gradually, painfully makes its way into the market and gets purchased,” he said.
“In all, some 1.2 million U.S. homes received a foreclosure-related notice in the first six months of this year, RealtyTrac said…Put another way, one in every 111 U.S. households received a foreclosure filing between January and June. Foreclosures typically sell at a discount to other types of homes, weighing down home values. As a result, housing experts say U.S. home prices are unlikely to recover until the glut of foreclosed homes on the market is cleared out. Lenders have been careful not to unload all of their foreclosures on the market at once, and have financial incentives to continue doing so. But the prospect of more foreclosures hitting the market for years to come makes it difficult to predict when home values will stabilize. And that keeps many would-be homebuyers on the sidelines. Between April and June, it took an average of 318 days for a home to go from the first stage of foreclosure to the point where it was sold at auction or taken back by the lender, RealtyTrac said….The foreclosure process took longest to play out in New York at an average of 966 days, or 2.6 years, during the second quarter. New Jersey was second-slowest at an average of 944 days, RealtyTrac said. Homes were on a relative foreclosure fast-track in Texas, taking an average of 92 days to go through the process, the fastest turnaround time in the nation. Despite slowdown in foreclosure activity, several states continue to have outsized foreclosure rates. Nevada continued to lead the nation, with one in every 21 households receiving a foreclosure notice in the first half of this year. Rounding out the top 10 states with the highest foreclosure rate in the first half of this year are Arizona, California, Utah, Georgia, Idaho, Michigan, Florida, Colorado and Illinois.”

What’s Happening With Citizens Property Insurance Corp?

A Tallahassee posting yesterday by News Service of Florida said: “Admonishing lawmakers for making a shaky insurance pool even more precarious, the chairman of the Citizens Property Insurance Corp. on Wed said the insurer should be allowed to sell off a large chunk of its business to private interests. Citizens Chairman James Malone says the move would reduce exposure and allow it to continue offering coverage to the state’s riskiest property. The change would probably raise rates dramatically for hundreds of thousands of policyholders, but Malone says it must be done because the insurer is expected to have 1.4 million policies under its umbrella before the end of next week. Of those 1.4 million Citizens policies, up to 900,000 are likely uninsurable in the private market because they cover older homes, mobile homes and residences along the coast. Malone estimated that the remaining policies could be marketed to some private entity because they involve billions of dollars in assets and a widely dispersed premium base. He envisioned a return to Citizens’ roots – a true insurer of last resort. “That has a value someplace in this open market,” Malone said. “The state of Florida needs money and (some Citizens policies) could be turned into an asset that had a value that people were willing to purchase in the private sector.” Created as the insurer only for those who couldn’t get policies from private companies, Citizens has gone beyond that role to become the largest property insurer in the state. The insurer continues to charge rates that are actuarially too low, many say. Coupled with carrier insolvencies and private market decisions to reduce books of business, Citizens adds about 1,000 policyholders every day. Because taxpayers back the company, critics say the addition of so many policies leaves the state a major hurricane away from financial fiasco. Florida officials have been trying to depopulate Citizens for years. With premium rates held artificially low by lawmakers, however, the gap between Citizens’ insurance rates and private insurance rates continues to widen. So far, lawmakers have tried to provide financial incentives for private insurers to take Citizens policyholders from the pool.”

Sanibel & Captiva MLS Activity July 8-15

Sanibel
CONDOS
1 new listing: Tennisplace #D23 1/1 $175K (short sale).
4 price changes: Sundial #B301 1/1 now $315K, Sundial #C303 2/2 now $499K, Pelicans Roost #302 2/2 now $830K, Wedgewood #305 3/3.5 now $1.475M.
1 new sale: Sundial #G207 1/1 listed for $245K (short sale).
6 closed sales: Spanish Cay #C1 2/2 $332K (our buyer), Heron at The Sanctuary #1B 2/3.5 $500K, Sandy Bend #2 2/2 $535K, Nutmeg Village #206 2/2 $540K, Sundial #E104 2/2 $686K (foreclosure), Signal Inn #13 4/3 $800K.
 
HOMES
2 new listings: 954 Donax St 3/3 $425K, 909 Snowberry Ln 3/3 $2.15M.
4 price changes: 9248 Belding Dr 3/2 now $269K, 317 Palm Lake Dr 3/3 now $645K, 970 Victoria Way 3/3 now $995K, 1052 Whisperwood Way 3/3 now $1.495M.
No new sales.
5 closed sales: 535 Piedmont Rd 3/2 $305K, 1133 Schooner Pl 5/2 duplex $350K, 1528 Angel Dr 3/2 $500K, 1162 Kittiwake Cir 3/3.5 $1.2M, 4443 Waters Edge Ln 3/2.5 $2.1M.
 
LOTS
No new listings.
1 price change: 2418 Blue Crab Ct now $164.9K.
No new or closed sales.
 
Captiva
CONDOS
No new listings.
1 price change: Beach Homes #15 4/3 now $1.995M.
1 new sale: Sunset Captiva #202 2/2 listed for $789K.
No closed sales.
 
HOMES
1 new listing:  15009 Binder Dr 4/5.5 $4.495M.
1 price change:  17061 Captiva Dr 4/3.5 now $1,799,999.
No new or closed sales.
 
LOTS
Nothing to report. 

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

Terrific Videos “Sanctuary Islands: The Sanibel Legacy” & “The History of Southwest Florida: Sanibel – The Untold Stories”

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This message was posted today on www.mysanibel.com:

 “Today, the City of Sanibel released the second in a series of four videos provided by WGCU, documenting the history of Sanibel.

“Residents and visitors can now view the history of Sanibel and learn about the City’s water quality initiatives while in the comfort of their own home or anywhere they are connected to the world wide internet.

“Upon release of the second video, City Manager Judie Zimomra stated, “Everyone interested in our community’s unique history is invited to enjoy this classic video made available from our friends at WGCU.”

“Please click here to view video 2 of 4: “The History of Southwest Florida: Sanibel I – The Untold Stories”

“Please click here to view video 1 of 4: “Sanctuary Islands: The Sanibel Legacy.”

“Video 3 (“Untold Stories of Southwest Florida – Sanibel: After the Ferry) and Video 4 (“Untold Stories of Southwest Florida – The Sanibel Causeway: A Vital Link”) will be released to the City’s website in the near future.”