Higher pending sales forecast busier season in local market
Pending sales remained above the 500 level once again in October, forecasting a stronger market for the winter real estate season in the Sarasota area. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months - a positive sign. In October 2008, 549 properties were reported pending, compared to only 446 in the same month last year.
Single family unit sales were also higher in October 2008 than in October 2007, while only a little lower than September 2008. There were 306 single family homes sold in October this year, compared to only 264 in October 2007, an increase of 16 percent. Condominium sales were weaker in October 2008, with 63 sales reported, compared to 120 in October 2007.
Another important market tracker - the absorption rate of properties on the market - is lower than last year at this time and has been steadily declining with decreasing inventories since May. Absorption rate is the number of months it would take to sell the entire remaining listed inventory in a particular category, based upon the sales for that particular month. For October 2008, the absorption rate for single family homes stood at 18.2 months, compared to 18.3 months in September 2008, and 31.7 months in October 2007. For condominiums, the absorption rate was 28.7 months in October 2008, compared to 33.5 months in September 2008, and 45.1 months in October 2007.
The single-family median sales price for the 12-month period ending October 2008 was $257,000. This compares to $310,000 for the same 12-month period ending October 2007. For condominiums, the 12-month rolling median sale price was $320,000 at the end of October 2008, and $357,000 for the 12 months ending October 2007, down about 10 percent.
"The strong pending sales in our market indicate that we should expect the winter season to remain stable and stronger than the late summer and early fall," said Helen Sosso, 2008 SAR President. "We are obviously living in historic times, particularly in respect to our national economy. But people continue to look at real estate as a safer place for their investment dollars in relation to other common investments. The stock market has obviously tumbled, and other commodities, like oil, have seen their values cut in half in only a few short months. Real estate has weathered the storm much better, and there are incredible values in our market right now. Families seeking a home as a future investment and a great place to live are still looking at Sarasota."
The current local market continues to demonstrate statistically that we have a great selection of more affordably priced housing for buyers to purchase. In addition, declining inventory levels normally indicate the market is returning to a more historical balance, which eventually leads to normal, long-term price appreciation.
Tuesday, November 25, 2008
Tuesday, November 18, 2008
Sarasota High School no longer a school!
Keys to Sarasota High School were ceremoniously handed over to the Ringling College of Art and Design Monday morning, when officials from the college also showed off plans to house the Sarasota Museum of Art in the historic structure.
Museum president Wendy Surkis said the museum would strongly honor the history of the school, which opened in 1927. That will involve maintaining the roadside exterior and many of the original tile mosaics in the school floor.
“We have nicely married the old and the new,” Surkis said.
The back of the facility will be heavily renovated, with the addition of an auditorium, gift shop, sculpture garden and large installation galleries. The additions are being built with prominent windows.
The second floor of the building will be dominated by the museum, while the first and third floors will have classrooms, including some that will be used for art classes and can be viewed from museum windows as students make art.
Museum president Wendy Surkis said the museum would strongly honor the history of the school, which opened in 1927. That will involve maintaining the roadside exterior and many of the original tile mosaics in the school floor.
“We have nicely married the old and the new,” Surkis said.
The back of the facility will be heavily renovated, with the addition of an auditorium, gift shop, sculpture garden and large installation galleries. The additions are being built with prominent windows.
The second floor of the building will be dominated by the museum, while the first and third floors will have classrooms, including some that will be used for art classes and can be viewed from museum windows as students make art.
Monday, November 3, 2008
Is now the time to donate your Home?
Plunging real-estate values have made it an opportune time for older homeowners to give property to their children, while realizing big savings on gift and estate taxes.
They can do this by moving the home out of their estate with a so-called qualified personal residence trust, or QPRT, which allows homeowners to live in a property for many years before passing it on to their heirs. Though the trusts have been around for many years, many estate planners say now could be a good time to set one up since real-estate values have fallen dramatically in many markets.
QPRTs are one of a number of strategies that wealth advisers and estate planners are recommending as clients cope with beaten-down financial markets and a nasty real-estate landscape. The goal: Put beaten-down assets into trusts now and reap benefits from their appreciation outside of your estate. With real-estate values low, executing a QPRT now ensures your estate won’t contain a more-expensive home down the road, which could trigger a costly tax bill for your estate.
Most estate planners say activity on QPRTs remains quiet these days amid uncertainty over the direction of the estate tax and investors’ timidity in parting with assets during a bear market. But these same wealth advisers say conditions could be ripe – now and in the months ahead – for executing these trusts.
By transferring your home into a QPRT (often pronounced CUE-pert) when the value of your home is most likely at a low point, you’re effectively locking in a lower gift-tax amount when you move the home into the trust. And if interest rates move higher in the months ahead, that discount could be even greater because of the special method the Internal Revenue Service uses to compute the home’s gift-tax value.
“We’re probably heading to a time where it might be a perfect storm” of market conditions that make it the time to set up a QPRT, says Janine Racanelli, head of the Advice Lab at J.P. Morgan Chase & Co.
Henry “Terry” Christensen III, a lawyer at McDermott Will & Emery LLP, says his firm executed about 50 percent more QPRTs earlier this year than it did two years ago. Mr. Christensen says that the trusts are especially popular in California and Florida, where home prices have dropped the most.
Here’s how a QPRT works: Say you’re 60 years old and own a $1 million home. You’d like to leave the home to your children, but worry the property could jack up the value of your estate, perhaps pushing it high enough to trigger the estate tax. (The basic federal estate-tax exemption is $2 million per person for 2008, with the top estate-tax rate at 45 percent.)
To move the asset out of your estate, you can put the home into a QPRT for a term of 10 years (terms can be longer or shorter, depending on your situation). For those 10 years, your living arrangements don’t change – you live in the home and pay all the expenses, including property taxes.
Because you’ve given the home to a QPRT, you’ll have to file a gift-tax return that year, but you stand to benefit from a complex IRS formula that actually discounts your gift amount when you move the home into the trust. Assuming that value doesn’t push you over your $1 million lifetime gift-tax exemption, you won’t have to pay taxes at all.
The formula, among other things, considers your age, the IRS’s current applicable federal rate of 3.8 percent, which is the federal interest rate used to set up trusts or loans to relatives, and the 10-year length of the trust. Assuming your home appreciates 4 percent a year, the formula can nearly halve the value of your house for gift-tax purposes.
After 10 years, the home transfers to your beneficiaries, usually your children. At this point, they own the home, and it’s outside your estate and won’t be subjected to estate taxes. In this example, when the QPRT expires, your home is worth nearly $1.5 million. Assuming you live well into your 70s or 80s, it’s likely to be worth even more.
If you wish to remain in the home, you’ll have to pay fair-market rent to your kids, or risk running afoul of the IRS, which could scrutinize your children for allowing rent-free use of the property. When you die, your children keep the house and don’t have to pay inheritance taxes.
In 1986, Tom and Margie Williams of Columbus, Ohio, bought a lakeside cottage on Walloon Lake in Petoskey, Mich., near the northern tip of the state. Over the years, the couple and their three daughters spent summers there and used the spot for Christmas reunions. The home also had some historical value: Built in 1875, it stands in a lakeside community where Ernest Hemingway spent time as a child.
As the Williamses entered their 60s, they sought estate-planning advice, determined to keep a property near and dear to them in the family without burdening their children with a bigger estate-tax bill.
In 1996, the couple turned the $300,000 home over to a QPRT for a 10-year term. At the time, the applicable federal rate was 7.6 percent. The value of the cottage for gift-tax purposes was only about $120,000. The couple were nowhere near exceeding their lifetime $1 million gift-tax exemption, so they didn’t have to pay taxes on the transfer.
In 2006, the home passed to their children, who now collect rent from the couple in exchange for their right to use the home. “I always tell Margie, ‘Check with the landlord,’“ when something goes wrong, says the 73-year-old Mr. Williams.
The Williamses passed more money to their daughters through other maneuvers in the hope that they’ll maintain the home for years to come. “They’ve kept it this long,” says Margie Williams, “and they won’t have to pay the inheritance taxes.”
These trusts have some quirks. If you die before the trust term expires, the home reverts to your estate, nullifying any potential estate-tax savings. Because of this rule, it’s essential to take stock of your age and health when drawing up the trust.
Also remember that a QPRT is an irrevocable trust, meaning you have to give up the home when the term ends. That type of planning can be tricky - it’s sometimes hard to predict what your relationship with your children will be one or two decades down the line, and there’s no guarantee your beneficiaries will let you stay in the house.
Of course, a QPRT makes sense only if you anticipate your assets will exceed the estate-tax exemption when you die. In 2009, that exemption jumps to $3.5 million.
The tax is set to vanish in 2010, and then return in 2011 with a lower $1 million exemption and a 55 percent top rate. But most estate planners are betting Congress will revise the current structure. Both presidential candidates want to keep the estate tax, though with different exemptions and tax rates.
In addition to uncertainty surrounding the estate tax, some estate planners discourage QPRTs at times like these, when interest rates, including the applicable federal rate, are low. That’s because you get a greater discount on your gift-tax value when the rate is higher. But other advisers tell clients not to focus too much on the rate, especially if your home’s value has declined significantly in the past year or two.
“I think the idea that they’re only attractive when interest rates are high is just a myth,” says Natalie Choate, a Boston estate-planning lawyer and author of a widely used book on QPRTs. “If you wait until interest rates are high, it may be too late because of your health or because the house has appreciated dramatically.”
They can do this by moving the home out of their estate with a so-called qualified personal residence trust, or QPRT, which allows homeowners to live in a property for many years before passing it on to their heirs. Though the trusts have been around for many years, many estate planners say now could be a good time to set one up since real-estate values have fallen dramatically in many markets.
QPRTs are one of a number of strategies that wealth advisers and estate planners are recommending as clients cope with beaten-down financial markets and a nasty real-estate landscape. The goal: Put beaten-down assets into trusts now and reap benefits from their appreciation outside of your estate. With real-estate values low, executing a QPRT now ensures your estate won’t contain a more-expensive home down the road, which could trigger a costly tax bill for your estate.
Most estate planners say activity on QPRTs remains quiet these days amid uncertainty over the direction of the estate tax and investors’ timidity in parting with assets during a bear market. But these same wealth advisers say conditions could be ripe – now and in the months ahead – for executing these trusts.
By transferring your home into a QPRT (often pronounced CUE-pert) when the value of your home is most likely at a low point, you’re effectively locking in a lower gift-tax amount when you move the home into the trust. And if interest rates move higher in the months ahead, that discount could be even greater because of the special method the Internal Revenue Service uses to compute the home’s gift-tax value.
“We’re probably heading to a time where it might be a perfect storm” of market conditions that make it the time to set up a QPRT, says Janine Racanelli, head of the Advice Lab at J.P. Morgan Chase & Co.
Henry “Terry” Christensen III, a lawyer at McDermott Will & Emery LLP, says his firm executed about 50 percent more QPRTs earlier this year than it did two years ago. Mr. Christensen says that the trusts are especially popular in California and Florida, where home prices have dropped the most.
Here’s how a QPRT works: Say you’re 60 years old and own a $1 million home. You’d like to leave the home to your children, but worry the property could jack up the value of your estate, perhaps pushing it high enough to trigger the estate tax. (The basic federal estate-tax exemption is $2 million per person for 2008, with the top estate-tax rate at 45 percent.)
To move the asset out of your estate, you can put the home into a QPRT for a term of 10 years (terms can be longer or shorter, depending on your situation). For those 10 years, your living arrangements don’t change – you live in the home and pay all the expenses, including property taxes.
Because you’ve given the home to a QPRT, you’ll have to file a gift-tax return that year, but you stand to benefit from a complex IRS formula that actually discounts your gift amount when you move the home into the trust. Assuming that value doesn’t push you over your $1 million lifetime gift-tax exemption, you won’t have to pay taxes at all.
The formula, among other things, considers your age, the IRS’s current applicable federal rate of 3.8 percent, which is the federal interest rate used to set up trusts or loans to relatives, and the 10-year length of the trust. Assuming your home appreciates 4 percent a year, the formula can nearly halve the value of your house for gift-tax purposes.
After 10 years, the home transfers to your beneficiaries, usually your children. At this point, they own the home, and it’s outside your estate and won’t be subjected to estate taxes. In this example, when the QPRT expires, your home is worth nearly $1.5 million. Assuming you live well into your 70s or 80s, it’s likely to be worth even more.
If you wish to remain in the home, you’ll have to pay fair-market rent to your kids, or risk running afoul of the IRS, which could scrutinize your children for allowing rent-free use of the property. When you die, your children keep the house and don’t have to pay inheritance taxes.
In 1986, Tom and Margie Williams of Columbus, Ohio, bought a lakeside cottage on Walloon Lake in Petoskey, Mich., near the northern tip of the state. Over the years, the couple and their three daughters spent summers there and used the spot for Christmas reunions. The home also had some historical value: Built in 1875, it stands in a lakeside community where Ernest Hemingway spent time as a child.
As the Williamses entered their 60s, they sought estate-planning advice, determined to keep a property near and dear to them in the family without burdening their children with a bigger estate-tax bill.
In 1996, the couple turned the $300,000 home over to a QPRT for a 10-year term. At the time, the applicable federal rate was 7.6 percent. The value of the cottage for gift-tax purposes was only about $120,000. The couple were nowhere near exceeding their lifetime $1 million gift-tax exemption, so they didn’t have to pay taxes on the transfer.
In 2006, the home passed to their children, who now collect rent from the couple in exchange for their right to use the home. “I always tell Margie, ‘Check with the landlord,’“ when something goes wrong, says the 73-year-old Mr. Williams.
The Williamses passed more money to their daughters through other maneuvers in the hope that they’ll maintain the home for years to come. “They’ve kept it this long,” says Margie Williams, “and they won’t have to pay the inheritance taxes.”
These trusts have some quirks. If you die before the trust term expires, the home reverts to your estate, nullifying any potential estate-tax savings. Because of this rule, it’s essential to take stock of your age and health when drawing up the trust.
Also remember that a QPRT is an irrevocable trust, meaning you have to give up the home when the term ends. That type of planning can be tricky - it’s sometimes hard to predict what your relationship with your children will be one or two decades down the line, and there’s no guarantee your beneficiaries will let you stay in the house.
Of course, a QPRT makes sense only if you anticipate your assets will exceed the estate-tax exemption when you die. In 2009, that exemption jumps to $3.5 million.
The tax is set to vanish in 2010, and then return in 2011 with a lower $1 million exemption and a 55 percent top rate. But most estate planners are betting Congress will revise the current structure. Both presidential candidates want to keep the estate tax, though with different exemptions and tax rates.
In addition to uncertainty surrounding the estate tax, some estate planners discourage QPRTs at times like these, when interest rates, including the applicable federal rate, are low. That’s because you get a greater discount on your gift-tax value when the rate is higher. But other advisers tell clients not to focus too much on the rate, especially if your home’s value has declined significantly in the past year or two.
“I think the idea that they’re only attractive when interest rates are high is just a myth,” says Natalie Choate, a Boston estate-planning lawyer and author of a widely used book on QPRTs. “If you wait until interest rates are high, it may be too late because of your health or because the house has appreciated dramatically.”
Will Interest rates drop to zero?
Just how far will the Federal Reserve go in lowering interest rates to save the country from a long and painful recession?
Ratcheting its key rate from the current 1 percent all the way down to zero can’t be ruled out. But there are risks in taking such an unprecedented step: namely, that it wouldn’t work in turning around the economy and breaking through a stubborn credit clog.
Eventually, a zero percent rate – virtually “free” loans for banks – could trigger a speculative investment frenzy that could feed a bubble that pops, wreaking havoc on the economy. Former Fed Chairman Alan Greenspan – now partly blamed for the current problems – has called today’s crisis a “once-in-a-century credit tsunami.”
Emphatic as it was, the bold rate reduction the Fed ordered Wednesday and the possibility of even lower rates ahead are no panacea. Even lower rates won’t necessarily entice skittish Americans to spend and squeezed banks to lend more freely – forces at the heart of the economic woes.
With any luck, though, the Fed’s action will cushion the blow to the country, which is on the brink of – or already in – its first recession since 2001.
The Fed slashed its key rate by half a percentage point to 1 percent, a rate not seen since 2003 and part of 2004. The rate hasn’t been lower since 1958.
In a gloomier assessment of the economy, Fed policymakers said “the pace of economic activity appears to have slowed markedly” as consumers and businesses cut back on spending, and economic slowdowns in other countries sap demand for U.S. exports, which have helped keep the economy afloat.
Moreover, the “intensification of financial market turmoil” is likely to weigh on consumers and businesses, further reducing their ability to borrow money, the Fed said.
Underscoring the Fed’s sense of urgency is this fact: It took just 13 months for Fed Chairman Ben Bernanke, a student of the Great Depression, to ratchet down rates to the 1 percent mark. It took his predecessor, Greenspan, 2 1/2 years.
Many economists predict Fed policymakers will drop the rate again to half a percentage point, which would mark an all-time low, on or before Dec. 16 – its last scheduled meeting of the year. The Fed left the door wide open to more rate cuts, pledging to “act as needed” to revive the economy.
“We are in a crisis situation and everything is on the table,” said Richard Yamarone, an economist at Argus Research. “If conditions deteriorate considerably, the Fed could go down to zero. It is absolutely a possibility, but I don’t believe it is likely.”
Yet even if the Fed were to lower its key rate to zero, that might not reverse the bunker mentality of consumers and lead them to ramp up spending.
More than in recent recessions, consumers have retrenched as vanishing jobs, shrinking paychecks and nest eggs, and sinking home values have made them feel less wealthy and less inclined to spend. Consumer spending – the single biggest chunk of overall economic activity – probably fell in the July-to-September quarter. That would mark the first quarterly drop since late 1991, when the country was emerging from a recession.
And just because borrowing costs are cheaper doesn’t mean banks will feel more inclined to increase lending to people and businesses.
“The problem is not the interest rate,” said Sean Snaith, an economics professor at the University of Central Florida. “It is that no one is willing to loan, regardless of what the rate is. Lower rates will not make the problem go away. The credit crunch will take time to resolve. This is another action to just chip away at the gridlock in this economy, but we shouldn’t expect a miraculous turn of events from this.”
The Fed’s move Wednesday meant the prime lending rate used to peg rates on home equity loans, certain credit cards and other consumer loans dropped to 4 percent. Even if the Fed were to cut its main rate to zero, the prime rate would fall to 3 percent but no lower.
The Fed’s previous rate reductions, in fact, were blunted by the credit crunch. The Fed slashed rates by a whopping 3.25 percentage points, from 5.25 percent to 2 percent, between September 2007 and April 2008, one of the most aggressive campaigns in decades. On Oct. 8, the Fed lowered rates again to 1.5 percent in a coordinated action with other central banks around the world.
The Fed probably would want to stop short of zero, so it saves precious ammunition – meaning additional rate cuts – should the economy take a turn for the worse later on, some economists said.
Others believe the Fed would want to avoid the fate of Japan, which failed to revive its economy even after its central bank slashed rates to zero in 1999 and kept them there for six years before bumping them up again. Japan became mired in a decade of lost growth in the 1990s after real-estate prices collapsed. That caused a severe bout of deflation, which is a destabilizing drop in prices.
“Cutting rates to zero is a fairly desperate measure, and a lot of stigma is attached to it,” Snaith said. “It would bring on comparisons to Japan.”
There’s also the worry that dropping rates to all-time lows would feed the type of speculative boom and painful bust that the country is now suffering through. Greenspan lowered rates to 1 percent in summer 2003 as he sought to aid the economy’s slow recovery from the 2001 recession and fend off a remote – but dangerous – risk of deflation. He kept rates at that historically low level for a year.
Critics contend that those low rates fed the housing bubble and lax lending standards that eventually burst and imperiled the economy. The meltdown drove up foreclosures and forced financial companies to rack up huge losses on soured mortgage investments, laying low storied Wall Street firms and causing banks to fail.
Instead of dropping rates to zero, the Fed probably will turn to other weapons to battle the crisis.
The Fed has already created first-of-its-kind programs, such as getting cash directly to companies by buying up mounds of “commercial paper,” the short-term debt firms use to pay everyday expenses such as payroll and supplies. That program, which started Monday, is helping to relieve credit stresses, economists said. The Fed also is providing loans to banks, has moved to provide a financial backstop to the mutual fund industry and has injected billions of dollars in financial markets here and abroad.
The Fed could opt to expand programs by enlarging loans it’s now making, providing loans to other types of companies, or buying more and different types of debt. The Fed’s balance sheet has doubled to $1.8 trillion in recent months, reflecting those other activities to get credit flowing again.
Because the Fed has wide latitude in these areas, many economists believe Fed policymakers are more likely to continue this route than to lower its key rate to zero.
No matter the relief tactics, though, the economy is due for more pain. The unemployment rate, now 6.1 percent, could hit 8 percent or higher by next year. Home prices are likely to keep sinking for some time, and nest eggs will continue to be battered.
“We’ve been in pain, and it will get much more severe over the next six months,” predicted Mark Zandi, chief economist at Moody’s Economy.com. “The economic damage of the financial panic has already been done, and the Fed is trying to limit the damage as best it can.”
Ratcheting its key rate from the current 1 percent all the way down to zero can’t be ruled out. But there are risks in taking such an unprecedented step: namely, that it wouldn’t work in turning around the economy and breaking through a stubborn credit clog.
Eventually, a zero percent rate – virtually “free” loans for banks – could trigger a speculative investment frenzy that could feed a bubble that pops, wreaking havoc on the economy. Former Fed Chairman Alan Greenspan – now partly blamed for the current problems – has called today’s crisis a “once-in-a-century credit tsunami.”
Emphatic as it was, the bold rate reduction the Fed ordered Wednesday and the possibility of even lower rates ahead are no panacea. Even lower rates won’t necessarily entice skittish Americans to spend and squeezed banks to lend more freely – forces at the heart of the economic woes.
With any luck, though, the Fed’s action will cushion the blow to the country, which is on the brink of – or already in – its first recession since 2001.
The Fed slashed its key rate by half a percentage point to 1 percent, a rate not seen since 2003 and part of 2004. The rate hasn’t been lower since 1958.
In a gloomier assessment of the economy, Fed policymakers said “the pace of economic activity appears to have slowed markedly” as consumers and businesses cut back on spending, and economic slowdowns in other countries sap demand for U.S. exports, which have helped keep the economy afloat.
Moreover, the “intensification of financial market turmoil” is likely to weigh on consumers and businesses, further reducing their ability to borrow money, the Fed said.
Underscoring the Fed’s sense of urgency is this fact: It took just 13 months for Fed Chairman Ben Bernanke, a student of the Great Depression, to ratchet down rates to the 1 percent mark. It took his predecessor, Greenspan, 2 1/2 years.
Many economists predict Fed policymakers will drop the rate again to half a percentage point, which would mark an all-time low, on or before Dec. 16 – its last scheduled meeting of the year. The Fed left the door wide open to more rate cuts, pledging to “act as needed” to revive the economy.
“We are in a crisis situation and everything is on the table,” said Richard Yamarone, an economist at Argus Research. “If conditions deteriorate considerably, the Fed could go down to zero. It is absolutely a possibility, but I don’t believe it is likely.”
Yet even if the Fed were to lower its key rate to zero, that might not reverse the bunker mentality of consumers and lead them to ramp up spending.
More than in recent recessions, consumers have retrenched as vanishing jobs, shrinking paychecks and nest eggs, and sinking home values have made them feel less wealthy and less inclined to spend. Consumer spending – the single biggest chunk of overall economic activity – probably fell in the July-to-September quarter. That would mark the first quarterly drop since late 1991, when the country was emerging from a recession.
And just because borrowing costs are cheaper doesn’t mean banks will feel more inclined to increase lending to people and businesses.
“The problem is not the interest rate,” said Sean Snaith, an economics professor at the University of Central Florida. “It is that no one is willing to loan, regardless of what the rate is. Lower rates will not make the problem go away. The credit crunch will take time to resolve. This is another action to just chip away at the gridlock in this economy, but we shouldn’t expect a miraculous turn of events from this.”
The Fed’s move Wednesday meant the prime lending rate used to peg rates on home equity loans, certain credit cards and other consumer loans dropped to 4 percent. Even if the Fed were to cut its main rate to zero, the prime rate would fall to 3 percent but no lower.
The Fed’s previous rate reductions, in fact, were blunted by the credit crunch. The Fed slashed rates by a whopping 3.25 percentage points, from 5.25 percent to 2 percent, between September 2007 and April 2008, one of the most aggressive campaigns in decades. On Oct. 8, the Fed lowered rates again to 1.5 percent in a coordinated action with other central banks around the world.
The Fed probably would want to stop short of zero, so it saves precious ammunition – meaning additional rate cuts – should the economy take a turn for the worse later on, some economists said.
Others believe the Fed would want to avoid the fate of Japan, which failed to revive its economy even after its central bank slashed rates to zero in 1999 and kept them there for six years before bumping them up again. Japan became mired in a decade of lost growth in the 1990s after real-estate prices collapsed. That caused a severe bout of deflation, which is a destabilizing drop in prices.
“Cutting rates to zero is a fairly desperate measure, and a lot of stigma is attached to it,” Snaith said. “It would bring on comparisons to Japan.”
There’s also the worry that dropping rates to all-time lows would feed the type of speculative boom and painful bust that the country is now suffering through. Greenspan lowered rates to 1 percent in summer 2003 as he sought to aid the economy’s slow recovery from the 2001 recession and fend off a remote – but dangerous – risk of deflation. He kept rates at that historically low level for a year.
Critics contend that those low rates fed the housing bubble and lax lending standards that eventually burst and imperiled the economy. The meltdown drove up foreclosures and forced financial companies to rack up huge losses on soured mortgage investments, laying low storied Wall Street firms and causing banks to fail.
Instead of dropping rates to zero, the Fed probably will turn to other weapons to battle the crisis.
The Fed has already created first-of-its-kind programs, such as getting cash directly to companies by buying up mounds of “commercial paper,” the short-term debt firms use to pay everyday expenses such as payroll and supplies. That program, which started Monday, is helping to relieve credit stresses, economists said. The Fed also is providing loans to banks, has moved to provide a financial backstop to the mutual fund industry and has injected billions of dollars in financial markets here and abroad.
The Fed could opt to expand programs by enlarging loans it’s now making, providing loans to other types of companies, or buying more and different types of debt. The Fed’s balance sheet has doubled to $1.8 trillion in recent months, reflecting those other activities to get credit flowing again.
Because the Fed has wide latitude in these areas, many economists believe Fed policymakers are more likely to continue this route than to lower its key rate to zero.
No matter the relief tactics, though, the economy is due for more pain. The unemployment rate, now 6.1 percent, could hit 8 percent or higher by next year. Home prices are likely to keep sinking for some time, and nest eggs will continue to be battered.
“We’ve been in pain, and it will get much more severe over the next six months,” predicted Mark Zandi, chief economist at Moody’s Economy.com. “The economic damage of the financial panic has already been done, and the Fed is trying to limit the damage as best it can.”
Monday, September 29, 2008
Statement from Sarasota Association of Realtors
Despite a late summer and early fall dominated by depressing economic news across the nation, property sales in the Sarasota MLS did not see a dramatic change from the previous month, continuing a traditional slower summer sales season.
Overall sales stood at 440 in August, only slightly lower than the 454 in July. In fact, sales in August 2008 were actually higher than in August 2007, when only 430 overall single family homes and condos were sold.
The biggest decrease from last year was in condominium sales, which fell to 84 this year compared to 122 last year. The August 2008 report continued to show strength in pending sales, which stood at 536, just off last month's total of 584. In August 2007 only 456 pending sales were reported, which forecasts a stronger market for the fall and winter months. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months.
Sales prices for single family homes decreased somewhat in August, falling to $226,250 from last month's median of $250,000. But condominium prices saw a resurgence to $295,000 from July's $252,500. This means most property is apparently holding its value better locally, which also means the local market is doing better than the statewide and national downward trends.
"The national financial crisis has obviously dominated the news this month, but fortunately our market appears to be weathering yet another storm very well," said Helen Sosso, 2008 SAR President. "These are difficult times for many businesses and industries, and the real estate industry is no exception. But the Sarasota market is blessed with many fundamental strengths and attractions, one of which is our highly skilled and professional group of real estate brokerages and agents. In difficult times, the guidance of member agents in the SAR is vital to achieving your most advantageous property transaction."
Inventory levels in August 2008 dropped for the sixth consecutive month, and are the lowest they have been since late 2005. There were 6,461 single family homes listed, compared to 8,677 in July 2008, and 2,407 condos listed, compared to 4,599 condos listed last month. However, some of this discrepancy is likely attributable to the new MLS system which became operational in early August and resulted in the elimination of much of the duplication in property listings between the five area member associations (including the Manatee Association of Realtors).
The current local market, despite the negativity in the national news, continues to demonstrate statistically that we have a great selection of more affordably priced housing for buyers to visit and purchase. In addition, declining inventory levels normally indicates the market is returning to a more historical balance, which eventually leads to normal, long-term price appreciation.
Overall sales stood at 440 in August, only slightly lower than the 454 in July. In fact, sales in August 2008 were actually higher than in August 2007, when only 430 overall single family homes and condos were sold.
The biggest decrease from last year was in condominium sales, which fell to 84 this year compared to 122 last year. The August 2008 report continued to show strength in pending sales, which stood at 536, just off last month's total of 584. In August 2007 only 456 pending sales were reported, which forecasts a stronger market for the fall and winter months. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months.
Sales prices for single family homes decreased somewhat in August, falling to $226,250 from last month's median of $250,000. But condominium prices saw a resurgence to $295,000 from July's $252,500. This means most property is apparently holding its value better locally, which also means the local market is doing better than the statewide and national downward trends.
"The national financial crisis has obviously dominated the news this month, but fortunately our market appears to be weathering yet another storm very well," said Helen Sosso, 2008 SAR President. "These are difficult times for many businesses and industries, and the real estate industry is no exception. But the Sarasota market is blessed with many fundamental strengths and attractions, one of which is our highly skilled and professional group of real estate brokerages and agents. In difficult times, the guidance of member agents in the SAR is vital to achieving your most advantageous property transaction."
Inventory levels in August 2008 dropped for the sixth consecutive month, and are the lowest they have been since late 2005. There were 6,461 single family homes listed, compared to 8,677 in July 2008, and 2,407 condos listed, compared to 4,599 condos listed last month. However, some of this discrepancy is likely attributable to the new MLS system which became operational in early August and resulted in the elimination of much of the duplication in property listings between the five area member associations (including the Manatee Association of Realtors).
The current local market, despite the negativity in the national news, continues to demonstrate statistically that we have a great selection of more affordably priced housing for buyers to visit and purchase. In addition, declining inventory levels normally indicates the market is returning to a more historical balance, which eventually leads to normal, long-term price appreciation.
Tuesday, September 23, 2008
Could this happen in Longboat Key?
Residents of the city of Petah Tikva, a suburb of Tel Aviv, have been asked to take their pooch to their local vet, where a DNA sample can be collected.
The city hopes to build a database so faeces can be matched to registered dogs and their masters.
Owners who scoop up their dog's poo and put it in specially marked bins on Petah Tikva's streets will be eligible for rewards - like pet food coupons and dog toys.
But owners who leave their pet's droppings on footpaths could face a fine.
If the voluntary programme takes off, the city will consider making it mandatory for owners to provide DNA samples from their dogs.
Tika Bar-On, the city's chief veterinarian, came up with the plan and said so far, dog owners had reacted positively to the initiative.
"[Residents] are co-operating because they want their neighbourhood to be clean," she said.
She added there was many other applications vets could use the DNA database for - such as research of genetic diseases, investigating canine pedigree and identifying stray animals.
The city hopes to build a database so faeces can be matched to registered dogs and their masters.
Owners who scoop up their dog's poo and put it in specially marked bins on Petah Tikva's streets will be eligible for rewards - like pet food coupons and dog toys.
But owners who leave their pet's droppings on footpaths could face a fine.
If the voluntary programme takes off, the city will consider making it mandatory for owners to provide DNA samples from their dogs.
Tika Bar-On, the city's chief veterinarian, came up with the plan and said so far, dog owners had reacted positively to the initiative.
"[Residents] are co-operating because they want their neighbourhood to be clean," she said.
She added there was many other applications vets could use the DNA database for - such as research of genetic diseases, investigating canine pedigree and identifying stray animals.
Sarasota Ballet Lectures
Oct. 1
Sarasota Ballet will be holding a series of five lecture
demonstrations at the Historic Asolo Theater. Hosted
by guest choreographers and company dancers, the
lectures will preview and examine the major works that
will be performed during the 2008-2009 season. Cost is
$25 for each lecture or $100 for all five. Call 941-360-7399
Sarasota Ballet will be holding a series of five lecture
demonstrations at the Historic Asolo Theater. Hosted
by guest choreographers and company dancers, the
lectures will preview and examine the major works that
will be performed during the 2008-2009 season. Cost is
$25 for each lecture or $100 for all five. Call 941-360-7399
Tuesday, September 9, 2008
Prudential Real Estate Affiliates wins J.D. Power and Associates award
Prudential Real Estate is ranked “Highest in Satisfaction for Home Sellers Among National Full Service Real Estate Firms,” in J.D. Power and Associates’ 2008 Home Buyer/Seller Study SM.
The inaugural study measures customer satisfaction of home buyers and sellers with major national real estate companies and includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.
Among home sellers, Prudential Real Estate achieved a score of 793 on a 1,000-point scale. “We are very proud of this distinction, as it underscores the quality of our affiliates and their hard-working sales professionals,” said Laurie Keenan, president of Prudential Real Estate. “This recognition is especially rewarding because it comes from a most discerning group: our customers. To be sure, our sales professionals are the local experts, and sellers appreciate their ability to market and price homes right.”
The inaugural study measures customer satisfaction of home buyers and sellers with major national real estate companies and includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.
Among home sellers, Prudential Real Estate achieved a score of 793 on a 1,000-point scale. “We are very proud of this distinction, as it underscores the quality of our affiliates and their hard-working sales professionals,” said Laurie Keenan, president of Prudential Real Estate. “This recognition is especially rewarding because it comes from a most discerning group: our customers. To be sure, our sales professionals are the local experts, and sellers appreciate their ability to market and price homes right.”
Red Sox for Sarasota ?
Officials trying to prop up the sagging economy here are convinced they have found a remedy: annexing a piece of Boston Red Sox.
Boston’s on-the-field success in recent years has made the organization a darling among fans and marketers so the emerging power of the Red Sox name, fueled by frenetic fans who travel widely to see their team play, has created a level of interest from Sarasota. Officials here are trying with all their civic might to poach the club’s spring training operation from Fort Myers, where it has been since 1993.
There have been friendly calls from local politicians to team executives, a pledge to build a replica of Boston’s Fenway Park, and discussions about both a public land purchase and an increase in the tourism tax to pay for the stadium and improvements to an existing minor league complex. A grass-roots organization called “Citizens for Sox” has even formed to help in the effort.
The officials here say the team would attract more tourists and businesses than any other major league franchise. They hope the relocation would help lift real estate prices, increase the number of flights to and from Boston and boost construction.
“This is not just about baseball,” said Joe Barbetta, a Sarasota County commissioner. “It is about the Red Sox brand.”
Kelly Kirschner, the commissioner from the city of Sarasota who has teamed with Barbetta to try to attract the team, added from across the table, “We have never seen 4,000 people get together about anything, let alone a baseball team.”
The Red Sox are among a handful of teams with the flexibility to leave their spring training cities because they hold opt-out clauses in their current deals. The club’s existing agreement with Lee County allows the team to leave Fort Myers after 2009 spring training if it pays $1 million. After that, the amount decreases by $100,000 a year until the agreement expires in 2019.
On Tuesday, Sarasota County voted to buy 1.2 acres in downtown Sarasota for $4.8 million. The plan calls for a 10,000-seat stadium next to the site of Payne Park, where the Red Sox held spring training from 1933 to 1942 and from 1946 to 1958. Officials in Sarasota have been in discussions with the Red Sox for several weeks, and they expect to make their formal offer by mid-September.
Sarasota finds itself searching for a team because the Cincinnati Reds decided last year to leave for Goodyear, Ariz. To find a new team, officials began studying which clubs could relocate and soon fell in love with the idea of landing the Red Sox.
“Certainly it’s because their star has never been brighter,” said John Yarbrough, the official in Fort Myers who is in charge of the effort to keep the team. “There is no team, except for maybe the Yankees, that has the following they have right now. It’s a sign of the slow economy that more municipalities haven’t come out pushing for them.”
The Red Sox have done what seemed nearly impossible five years ago. In 2004, they rallied from three games down to the Yankees in the American League Championship Series and went on to win the World Series for the first time since 1918. Then they won another title last season.
Sarasota, which was home to a Class A affiliate of the Red Sox from 1994 to 2004, appears to be the only city beyond Fort Myers interested in taking them, although Disney officials are also making a quiet push. Disney World is already home to the Atlanta Braves during spring training at its Wide World of Sports complex in Orlando. The Red Sox’ chief operating officer, Mike Dee, toured the center in July.
But the interest from Sarasota appears to be the strongest, and its officials argue that the benefits of attracting the team would exceed the economic activity associated with a schedule of roughly 17 spring training games. Many of Sarasota County’s approximately 350,000 residents, like those elsewhere on Florida’s Gulf Coast, are retirees from the Midwest.
But the officials say the Red Sox could attract more people from the Northeast. “If the Red Sox come, it would bring in direct flights from Boston, and it would attract people from New York to New Hampshire,” Barbetta said, referring to his hope that those people might decide to relocate to or retire in Sarasota.
A consultant’s study for Sarasota showed that the Red Sox would generate $46.5 million a year in economic activity, nearly double the amount associated with the Reds. And in the 2007 edition of “Turnkey Team Brand Index,” a study that ranks the brand strength of 122 teams in Major League Baseball, the N.F.L., the N.B.A. and the N.H.L., the Red Sox finished fifth in fan loyalty among all major franchises and first in baseball. (The New York Times Company owns 17 percent of New England Sports Ventures, the parent company of the Red Sox.)
“We asked fans how much a team is a part of their daily routine, to what degree do they support a team, how often do they watch them on TV and how much they go to games,” said Len Perna, the president of Turnkey Sports and Entertainment. “There is no doubt that their performance on the field over the past few years has had an impact on their brand, but there are other teams that have won and don’t have the same glow.”
He added: “What makes them different is that they have done everything else right. This group of owners has made Fenway Park part of the team’s future and not pushed for a new stadium. That endeared them to many Bostonians, and the loyalty has extended from there.”
But Wayne Genthner, a charter boat captain who lives in Sarasota, is wary of the display of affection by public officials.
“They’re in love with them all right — you know how that can deceive you,” he said.
Genthner spoke out this week at a public meeting regarding the purchase of land for the stadium.
“It’s corporate welfare for professional baseball, and they have basically said you can eat out of the public trough,” he said in a telephone interview Wednesday. “We need help developing tourism from September through December. That is when we really need the help. People don’t vacation down here, and that is where we need the help. I want them to spend on tourism, but they need to be smart about it.”
For their part, officials 80 miles down the coast in Fort Myers say they want to keep the Red Sox. But they do not seem to be nearly as active about their interest as their counterparts in Sarasota. Fort Myers is also home to the Minnesota Twins during spring training, and city officials say the local economy is built around both teams.
Yarbrough said he had told the Red Sox that Fort Myers would make a counter-offer after Sarasota made its proposal.
“March is the lifeblood of our economy and our community,” Yarbrough said. “Could we survive without two teams? It would hurt our year-round economy.”
Dee said the Red Sox had noticed a clear difference in approaches from the cities.
“The outpouring of discussion and interest from Sarasota has been tremendous — it has been comprehensive in nature, and everyone has been very aggressive and supportive,” he said. “In Fort Myers, for whatever reason, they decided to wait it out.”
He added, “But they are confident and convinced that Sarasota is going to be unable to do this, and they are sort of gambling on this.”
What will Sarasota do if the Red Sox shun the offer?
“We would pursue another team,” Barbetta said. “And we won’t give up.”
Boston’s on-the-field success in recent years has made the organization a darling among fans and marketers so the emerging power of the Red Sox name, fueled by frenetic fans who travel widely to see their team play, has created a level of interest from Sarasota. Officials here are trying with all their civic might to poach the club’s spring training operation from Fort Myers, where it has been since 1993.
There have been friendly calls from local politicians to team executives, a pledge to build a replica of Boston’s Fenway Park, and discussions about both a public land purchase and an increase in the tourism tax to pay for the stadium and improvements to an existing minor league complex. A grass-roots organization called “Citizens for Sox” has even formed to help in the effort.
The officials here say the team would attract more tourists and businesses than any other major league franchise. They hope the relocation would help lift real estate prices, increase the number of flights to and from Boston and boost construction.
“This is not just about baseball,” said Joe Barbetta, a Sarasota County commissioner. “It is about the Red Sox brand.”
Kelly Kirschner, the commissioner from the city of Sarasota who has teamed with Barbetta to try to attract the team, added from across the table, “We have never seen 4,000 people get together about anything, let alone a baseball team.”
The Red Sox are among a handful of teams with the flexibility to leave their spring training cities because they hold opt-out clauses in their current deals. The club’s existing agreement with Lee County allows the team to leave Fort Myers after 2009 spring training if it pays $1 million. After that, the amount decreases by $100,000 a year until the agreement expires in 2019.
On Tuesday, Sarasota County voted to buy 1.2 acres in downtown Sarasota for $4.8 million. The plan calls for a 10,000-seat stadium next to the site of Payne Park, where the Red Sox held spring training from 1933 to 1942 and from 1946 to 1958. Officials in Sarasota have been in discussions with the Red Sox for several weeks, and they expect to make their formal offer by mid-September.
Sarasota finds itself searching for a team because the Cincinnati Reds decided last year to leave for Goodyear, Ariz. To find a new team, officials began studying which clubs could relocate and soon fell in love with the idea of landing the Red Sox.
“Certainly it’s because their star has never been brighter,” said John Yarbrough, the official in Fort Myers who is in charge of the effort to keep the team. “There is no team, except for maybe the Yankees, that has the following they have right now. It’s a sign of the slow economy that more municipalities haven’t come out pushing for them.”
The Red Sox have done what seemed nearly impossible five years ago. In 2004, they rallied from three games down to the Yankees in the American League Championship Series and went on to win the World Series for the first time since 1918. Then they won another title last season.
Sarasota, which was home to a Class A affiliate of the Red Sox from 1994 to 2004, appears to be the only city beyond Fort Myers interested in taking them, although Disney officials are also making a quiet push. Disney World is already home to the Atlanta Braves during spring training at its Wide World of Sports complex in Orlando. The Red Sox’ chief operating officer, Mike Dee, toured the center in July.
But the interest from Sarasota appears to be the strongest, and its officials argue that the benefits of attracting the team would exceed the economic activity associated with a schedule of roughly 17 spring training games. Many of Sarasota County’s approximately 350,000 residents, like those elsewhere on Florida’s Gulf Coast, are retirees from the Midwest.
But the officials say the Red Sox could attract more people from the Northeast. “If the Red Sox come, it would bring in direct flights from Boston, and it would attract people from New York to New Hampshire,” Barbetta said, referring to his hope that those people might decide to relocate to or retire in Sarasota.
A consultant’s study for Sarasota showed that the Red Sox would generate $46.5 million a year in economic activity, nearly double the amount associated with the Reds. And in the 2007 edition of “Turnkey Team Brand Index,” a study that ranks the brand strength of 122 teams in Major League Baseball, the N.F.L., the N.B.A. and the N.H.L., the Red Sox finished fifth in fan loyalty among all major franchises and first in baseball. (The New York Times Company owns 17 percent of New England Sports Ventures, the parent company of the Red Sox.)
“We asked fans how much a team is a part of their daily routine, to what degree do they support a team, how often do they watch them on TV and how much they go to games,” said Len Perna, the president of Turnkey Sports and Entertainment. “There is no doubt that their performance on the field over the past few years has had an impact on their brand, but there are other teams that have won and don’t have the same glow.”
He added: “What makes them different is that they have done everything else right. This group of owners has made Fenway Park part of the team’s future and not pushed for a new stadium. That endeared them to many Bostonians, and the loyalty has extended from there.”
But Wayne Genthner, a charter boat captain who lives in Sarasota, is wary of the display of affection by public officials.
“They’re in love with them all right — you know how that can deceive you,” he said.
Genthner spoke out this week at a public meeting regarding the purchase of land for the stadium.
“It’s corporate welfare for professional baseball, and they have basically said you can eat out of the public trough,” he said in a telephone interview Wednesday. “We need help developing tourism from September through December. That is when we really need the help. People don’t vacation down here, and that is where we need the help. I want them to spend on tourism, but they need to be smart about it.”
For their part, officials 80 miles down the coast in Fort Myers say they want to keep the Red Sox. But they do not seem to be nearly as active about their interest as their counterparts in Sarasota. Fort Myers is also home to the Minnesota Twins during spring training, and city officials say the local economy is built around both teams.
Yarbrough said he had told the Red Sox that Fort Myers would make a counter-offer after Sarasota made its proposal.
“March is the lifeblood of our economy and our community,” Yarbrough said. “Could we survive without two teams? It would hurt our year-round economy.”
Dee said the Red Sox had noticed a clear difference in approaches from the cities.
“The outpouring of discussion and interest from Sarasota has been tremendous — it has been comprehensive in nature, and everyone has been very aggressive and supportive,” he said. “In Fort Myers, for whatever reason, they decided to wait it out.”
He added, “But they are confident and convinced that Sarasota is going to be unable to do this, and they are sort of gambling on this.”
What will Sarasota do if the Red Sox shun the offer?
“We would pursue another team,” Barbetta said. “And we won’t give up.”
Friday, September 5, 2008
Sarasota Sales Statistics July 2008
The Sarasota MLS saw a traditional summer drop in sales for July 2008 compared to the
previous month, but pending sales numbers remained strong, forecasting a normal fall
sales rebound.Overall sales stood at 454 in July, dropping off from the 559 reported in June 2008.Single family home sales in July 2008 stood at 326, while condominium sales dropped to 128. Sales had been increasing each month in 2008 prior to a June dip, and July continued the downward trend.The July 2008 report continued to show strength in pending sales, which stood at 584. In July 2007 only 476 pending sales were reported, which forecasts a stronger market for the late summer and early fall months. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months.Sales prices appeared to level off in July, remaining at a median of $250,000 for single family homes, while dropping slightly for condos, from $275,000 in June to $252,500 in July. This means property is apparently holding its value better locally, bucking a steeper
downward trend statewide and in many markets across the nation.“We tend to see a different market segment of buyers during the summer months,” said Helen Sosso, 2008 SAR President. “When families are in the market for a home, whether deciding to purchase after renting, or upsizing as the family grows, they tend to search for
homes during the summer months prior to the start of the new school year. These families traditionally shop for more affordable homes near good schools, which is why we normally observe a moderation of the median sales price during the summer. I expect a brisk return of high-end buyers when our seasonal residents return during the fall and winter.” Sosso also noted that while the prices have moderated locally in general, statistics prove that even after the drop in local median sales prices over the past two years, the median sale price in July 2008 is still 9.6 percent higher than five years ago for single family homes, and a whopping 22 percent higher for condominiums.Inventory levels were lower in July 2008 for the fifth consecutive month, and are the lowest they have been since February 2006. There were 8,677 single family homes on the market, compared to 9,108 in June 2008, and 4,599 condos listed, compared to 4,765 last month.The current market statistics continue to reflect a good selection of more affordably priced housing for buyers to visit and purchase. The decline in inventory levels traditionally indicates the market is returning to a more historical balance. As the market approaches equilibrium, the buyer’s market we’ve been experiencing will likely disappear, and price appreciation will return to the market.
Monday, September 1, 2008
Beautiful Florida style home in Sarasota
One of Sarasota's most desirable locations- central to beach, shopping, hospitals. Gracious floor plan, guest wing with full bath. Lush, bright interior courtyard brings the outside in. Luxuriously detailed construction includes beautiful in-ground spa. A Napa-style patio off the living room offers private dining in flowering garden under a cypress vine covered pergola. Live the Florida lifestyle in this 3 bedroom 3 bathroom home.Listed at $649,000. Please call Michael for details (941)-504-8018
Awesome Views from Downtown Condo
THE ULTIMATE DOWNTOWN CONDO
Enjoy life to the full from this 2280 s.f. 2 bedroom/2.5 bathroom condo right in the heart of downtown Sarasota with fantastic views of Sarasota Bay, the Marina, the Keys and sunsets
falling into the Gulf of Mexico.
Amenities include huge outdoor pool, state of the art fitness center, guest suite, club room, meeting room, 24 hour concierge, valet parking.
Walk out of the building and you are seconds away from dining, shopping, opera, theaters, or your boat.
This condo is brand new, never lived in.
Listed at $1,175,000
Please call Michael for details 941-504-8018
Is Now Really the time to Buy ?
People ask me this question every day. Buyers want to know if the market is picking up and if now is the right time to buy Florida real estate. To give the most professional and helpful answer I need to understand who the Buyer is. If the Buyer is a real estate investor then it is very difficult to give a fair and honest answer. Historically, the Longboat Key area had always been enjoyed by primary homeowners, long-term vacationers and second-home owners. The short-term real estate investor came onto the scene mainly around 2004/5 ; they were looking to make quick profits by purchasing and selling quickly in a rising market. For those investor buyers, we may be at a bottom but I cannot say we are in a quickly rising market. If on the other hand you are a long-term buyer, the kind of buyer we have been used to on Longboat Key, then most certainly now is the time to buy. If you wait you will certainly miss out. You will not only be spending more but it will also limit your choices; you may miss out on the property you found when you decide you are ready for your purchase.
The Government of Longboat Key
Longboat Key lies in two counties- Manatee on the northern half and Sarasota on the southern half. The island was incorporated as a township in 1955 and is governed by a seven member Town Commission, each serving a two-year term. The Mayor is elected for a two-year term by the Town Commission. Administration is under Town Management with a full complement of departments; building, planning & zoning, finance, town clerk, police and fire/rescue. Additionally the Town maintains coorperative relationships with police and fire rescue in neighboring communities. Lido Key and St. Armands are both in Sarasota County and are governed by the City of Sarasota. The Sarasota City Commission consist of five elected commissioners. The Mayor and Vice-Mayor are chosen by the Commisson and serve one year terms. All elections are non-partisan and Sarasota has a Commission Manager form of governement. The Commission appoints a City Manager. City departments include police, public works, building, zoning and code compliance, finance, housing and Community Development.
Current State of local Real Estate Market
Sarasota market hits highestsales figure since June 2007Home sales in the Sarasota MLS for April 2008 stood at 567 – the highest level in 10 months, and approximately 72 percenthigher than the sales in January 2008. In 2008, sales have been progressively stronger month by month, possibly dueto the influence of the new property tax portability law adopted in late January.Sales have climbed from 329 in January to423 in February, then 514 in March.Bucking the trend of dropping median sales prices for single family homes, Aprilalso saw the median sale price rise to $285,000 from $266,750 in March –about a 7 percent increase.Condominium sales prices have shown a decline of about 8 percent since the first of the year, but they are also beginning to trendupward and have remained at relatively high levels for the Sarasota market. The median sale price for a condominium stoodat $277,000 in April, about 18 percent higher than the $235,000 median sale price in March, but roughly 8 percent off the2008 peak of $303,500 in January. “We are very fortunate to live in a beautiful,vibrant community, with world-class cultureand amenities,” said Helen Sosso, 2008 SAR President. “These obvious factors continue to enhance the value of local properties, and we are seeing this reflected in our stronger sales figures. In addition, it appears we are beginning to see the effects of the recent state legislation which made it easier for families to upsize or downsize, without such a dramatic impact on their property taxes.Portability will likely continue to be a factor as we move forward in 2008.” The April 2008 report continued to reflectstrength in pending sales, which stood at 765 – the highest level in the past year. In April 2007 pending sales were at only 609.Pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pendingsales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improvingmarket in the early summer months.Inventory levels were lower in April 2008 at 9,830 single family homes, comparedto 10,443 in April 2007. Condominium levels also decreased from the April 2007 level of 6,344 to 5,608 in April 2008.Lower inventory normally means a tighter selling market, which tends to put upward pressure on prices over time.Declining inventory is one of the indicators that a market is beginning to return to a more normal, balanced state. In fact, theSarasota MLS statistics reveal a lower level of new listings on the market, combined with higher unit sales, which means the inventory is declining for two reasons and should more quickly reach a healthy equilibrium. The days on market, which translates tothe average time it took to sell a property,was at 166 days for single family homes in April 2008, slightly higher than the 158days in March 2008. The figure has been steadily in the 158 to 160 range throughout the year. Average days on the market forcondos was at 189 in April 2008, lower than the 192 figure in March 2008, and much lower than the 203 days reported inFebruary 2008. The days on market reflects the pace of sales. In general the Sarasota MLS statistics show a rebound throughout 2008 – every month seeing stronger numbers than the month before.
Discover Paradise
Longboat Key, Lido Key, and Siesta Key are ideal beach and bayfront settings for the ultimate Florida vacation and the perfect place to call Home. Stretching between the gorgeous Gulf of Mexico and serene Sarasota Bay, these keys attract many visitors who come to enjoy the average year-round temperature of 73 degrees.
The area is appreciated by wildlife as well, so these waters are home to manatee, dolphins, and fish, while pelicans, osprey, and a variety of shorebirds find sanctuary here. Tennis and golf enthusiasts will find first-class facilities here, and there are several parks on the Keys to visit for a relaxing afternoon.Whether you like to spend your time shelling, biking, shopping, fishing, golfing, or dining, opportunities for these activities are boundless on Longboat Key, Lido Key, St.Armand's Key and Siesta Key. Well known as private island paradises, there are accommodations here to suit everyone, from deluxe suites in plush resorts and condominiums to beachfront cottages and modest hotel rooms.
Sarasota’s many cultural centers are only minutes away including Van Wezel Performing Arts Center, Asolo Theater, Ringling Museum, Sarasota Ballet and Opera,the magnificent Florida West Coast Symphony Orchestra and several live theatres.
The area is appreciated by wildlife as well, so these waters are home to manatee, dolphins, and fish, while pelicans, osprey, and a variety of shorebirds find sanctuary here. Tennis and golf enthusiasts will find first-class facilities here, and there are several parks on the Keys to visit for a relaxing afternoon.Whether you like to spend your time shelling, biking, shopping, fishing, golfing, or dining, opportunities for these activities are boundless on Longboat Key, Lido Key, St.Armand's Key and Siesta Key. Well known as private island paradises, there are accommodations here to suit everyone, from deluxe suites in plush resorts and condominiums to beachfront cottages and modest hotel rooms.
Sarasota’s many cultural centers are only minutes away including Van Wezel Performing Arts Center, Asolo Theater, Ringling Museum, Sarasota Ballet and Opera,the magnificent Florida West Coast Symphony Orchestra and several live theatres.
Subscribe to:
Posts (Atom)
