It’s a buyer’s market!

“We expect first-time homebuyers will be the largest segment next year,” says Ed Forman, president Watson Realty Corp., Jacksonville. “That includes a high percentage of single women buying their first property.”

The same pricing dynamics benefit working-age families in their 30s and 40s who may be moving into a starter home or looking for a move-up with more space for children, according to Mike Pappas, president and CEO, The Keyes Company, Miami. “For these buyers in particular, lower pricing is making Florida homes very attractive,” he says.

In many Florida markets, affluent buyers are picking up luxury properties as primary residences or second-homes – a trend likely to continue. “The high end of the Florida market has held up quite well,” says Brad Hunter, director, South Florida region, MetroStudy in Boca Raton.

International buyers remain an important component of the state’s market, especially in coastal areas like Miami, Fort Lauderdale, Naples and Sarasota, as well as Orlando/Kissimmee. Florida Association of Realtors research studies show buyers from Canada, United Kingdom, Mexico, South America and Europe generate more than 15 percent of residential transactions.

On the other hand, the traditional flow of retiree buyers to Florida remains uncertain in the year ahead. Slower economic conditions in the Northeast and Midwest – two prime feeder markets for Florida – may make it harder for retirees with modest incomes to make the big move to Florida. Many retirees are also faced with less purchasing power due to declines in their investment portfolio and may opt to stay put.

However, the number of Baby Boomers reaching age 65 continues to increase and many of these prospective buyers will be considering Florida when the nation’s economic condition improves.

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Florida still a prime location for relocation

Long one of the fastest growing states in the nation, Florida continues to benefit from a natural population growth as well as in-migration from other U.S. and international locations. Between 2007 and 2010, Florida is to add an average of 209,000 residents a year, according to Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. “Although Florida remains a major destination for retirees, far more young and middle-aged people move into the state to find work than their older counterparts arrive to retire,” Smith said.

While Florida’s overall population growth has slowed significantly from the early 2000s, the bureau’s projections show the rate will soon increase again, reaching about 317,000 a year between 2010 and 2020. That would be similar to the peak years of the 1980s and 1990s.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. His analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That included about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths). “It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”

On the domestic side, the strongest traditional “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.

“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR).

In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.

One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.

According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.

As Riley said, “The bottom line is that hundreds of people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”

Ready to make the move to Naples? Call Today! MARI VESCI REALTORS, Inc. 800-248-3724

Labels: buy naples real estate, naples fl real estate, Naples Real Estate Market

Home sales rise 36 percent over a year ago in Naplea area, NABOR reports
By: NDN Staff
Originally published 12:31 p.m., Friday, June 12, 2009

NAPLES — May home sales in the Naples area increased substantially over May 2008, according to a report released early this afternoon by the Naples Area Board of Realtors (NABOR).

Overall pending home sales in the greater Naples area, which includes the Naples beach area, North Naples, central Naples, East Naples, Immokalee and Ave Maria, saw an increase of 101 percent with 1,029 pending sales in May compared to 511 in May 2008.

The available inventory decreased 10 percent to 10,046 in May compared to 11,175 in May 2008, NABOR reported.

Other findings:

**Overall pending home sales for properties under $300,000 saw a 177 percent increase, with 5,160 pending for the 12 months ending in May compared to 1,860 for the 12 months ending in May 2008.

**The average days on the market decreased 24 percent to 155 in May compared to 203 in May 2008.

**Single-family home sales increased 53 percent with 383 in May 2009 compared to 251 in May 2008; single-family pending home sales saw a 110 percent increase with 603 in May 2009 compared to 287 in May 2008.

**Condo sales saw a 24 percent increase with 313 in May 2009 compared to 253 in May 2008.

**For the year ending in May 2009, the median price for properties over $300,000 decreased only 1 percent to $550,000 compared to $555,000. The median refers to the point where half of the sales are for more, and half for less.


RELATED LINK: www.naplesarea.com

Labels: naples fl real estate, naples florida home sales, Naples Real Estate Market, Naples Real Estate Statistics

State approves controversial plan to build docks on Vanderbilt Channel in North Naples
By ERIC STAATS
Tuesday, June 9, 2009

NAPLES — A developer’s controversial plan to build docks on Vanderbilt Channel in North Naples won Florida approval Tuesday.

Gov. Charlie Crist and the Cabinet voted 3-1 to approve Signature Communities’ plans to build 49 slips along a mangrove shoreline west of Vanderbilt Drive and east of Delnor-Wiggins Pass State Park. Attorney General Bill McCollum voted no.

The docks, part of the Dunes project, required approval of a lease of state submerged lands and plans to place riprap beneath the dock and dredge.

Vanderbilt Beach residents and the Conservancy of Southwest Florida have opposed the plans, saying the docks will ruin the waterway by destroying mangroves and harming manatee habitat. Backers of the project said the concerns are overblown.

The project still needs Collier County approvals and a permit from the U.S. Army Corps of Engineers but Tuesday’s approval was an important step.

“I’m disappointed,” Vanderbilt Beach Residents Association Secretary Kathy Robbins said as she traveled back to Naples from testifying at Tuesday’s hearing in Tallahassee.

Tuesday’s outcome was different than in October 2007, when a deadlocked Cabinet offered opponents a glimmer of hope with a tie 2-2 vote on the submerged land lease.

Back then, McCollum and Chief Financial Officer Alex Sink voted no. Sink cited inadequate submerged land lease fees.With today’s proposal, Signature Communities agreed that instead of paying a one-time $31,000 lease fee, the project would also pay any fee increases the Cabinet or the state Legislature approve within two years of the lease going into effect, according to the lease.

Also changed since the October 2007 vote, the developer has agreed to deed 54 acres of submerged land and deed another 66 acres above the mean high water line to the state of Florida.McCollum cast the sole dissenting vote Tuesday, saying the new wrinkles in the project aren’t enough.“I don’t see the change,” McCollum said.

Besides Robbins, two other members of the Vanderbilt Beach Residents Association made the trip to Tallahassee for Tuesday’s hearing.The Conservancy sent a letter June 1 to the Cabinet, saying the Dune projects is incompatible with the designation of Wiggins Pass as an Outstanding Florida Waterway and that it failed to meet the “public interest test” required for approving submerged land leases.

“This is certainly no casual, slight or NIMBY type of opposition,” attorney Bill Hyde, an attorney for opponents, told the Cabinet.

Backers of the project also were at the hearing, including a fishing guide who said the project would not harm the ecosystem he relies on for a living.The guide, South Bay Marina owner Justin Finch, said having additional boat docks at the Dunes will alleviate overcrowding at county boat ramps.

Dunes resident Pam Mac’Kie told the Cabinet that the Dunes only wants what others in the neighborhood already have.“We’d like please to have access to the waterway too,” said Mac’Kie, a former Collier County commissioner.

Dunes attorney Steve Lewis told the Cabinet that the project is “not unreasonable” and meets state standards.

“I would suggest we’re not even remotely overreaching,” Lewis said. “We’ve done everything anyone asked us to do and more.”

Labels: Boat Docks Naples, Boating in Naples, Docks on the Vanderbilt Channel, The Dunes

Bernanke: Economy on pace for ‘09 turnaround

WASHINGTON – June 5, 2009 –

The pace of economic contraction is slowing, indicating the economy could bottom out and then turn up later this year, Federal Reserve Chairman Ben S. Bernanke told the House Budget Committee on June 3. He cited recent reports, including a flattening out of the decline in consumer spending and signs of a bottom in the housing market.

Bernanke said the economy “has contracted sharply since last fall, with real gross domestic product [GDP] having dropped at an average annual rate of about 6 percent during the fourth quarter of 2008 and the first quarter of this year,” Bernanke told the committee. He said 6 million jobs have been lost since the downturn began, and recent labor market information “suggests that sizable jobs losses and further increases in unemployment are likely over the next few months.”

Bernanke said consumer spending, which dropped sharply in the second half of 2008, has been “roughly flat” so far in 2009, and “consumer sentiment has improved.” He also said the Obama Administration’s economic stimulus could boost spending. However, the Fed chairman said a weak job market, the loss of housing wealth, and tight credit conditions could hamper consumer spending, which would be a key component of any recovery.

“Making Progress”

The Fed chairman said businesses “remain very cautious and continue to reduce their workforces and capital investments. On a more positive note, firms are making progress in shedding the unwanted inventories that they accumulated following last fall’s sharp downturn in sales.”

Bernanke said the Fed continues to believe economic activity will turn up later this year, based on improvements in consumer spending and housing demand supported by fiscal and monetary stimulus and stabilization in foreign economic activity. Inflation is likely to remain low over the next year, Bernanke said.

However, he warned that the forecast is dependent on continuing improvement in credit markets, and he said that “even after a recovery gets under way, the rate of growth of real economic activity is likely to remain below its longer-run potential for a while, with unemployment continuing to rise even after the economy turns around.

Concerns about the job market were heightened by Wednesday’s release of the ADP National Employment Report. The private sector report, which has become more closely watched in recent months, said employment decreased by 532,000 in May, vs. a revised decline of 545,000 jobs in April.

While the ADP report showed a slight improvement, it was “another in a list of ‘less bad’ economic reports,” said Alan Gayle, senior investment strategist at RidgeWorth Capital Management. “We do believe that the market expectations are shifting from simple survival to sustainability, so less bad is not good enough.”

Copyright © 2009 The McGraw-Hill Cos., Business Week Online, Phil Mintz. All rights reserved. The Associated Press contributed to this report.

Labels: Economy, naples fl real estate

The upside of Florida real estate: 15 market positives

Let’s take a look at some of the opportunities for today and the future of Florida’s real estate market....

1. Great prices. Statewide, the existing-home median sales price was $161,200 in the fourth quarter of 2008; a year earlier, it was $216,600 for a decrease of 26 percent.

2. The time is right. Home sales volumes are rising again – a clear signal that today’s “buyers market” may be changing soon. In fourth quarter 2008, statewide sales of existing single-family homes were up 13 percent compared to the same period last year, according to FAR statistics.

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is still plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.

4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2009 includes an $8,000 tax credit for first-time buyers. President Obama’s 2009 economic stimulus package also identifies and offers incentives to help home buyers with mortgages. Talk to a local mortgage lender about state and federal incentive programs. How to get the $8,000 credit.

6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 economists forecast that Florida will be the third-most-populated state in the country. Florida’s population is expected to swell about 75 percent by 2030. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.

7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a top retirement destination.

9. Business-friendly state. Florida has always been a business-friendly state – no state income taxes, plus incentives from local municipalities encourage businesses to set up shop here. Even with the current economic downturn nationwide, Florida leaders continue to keep business needs in the forefront of planning for the state's future. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.

10. Positive investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the third quarter 2008 survey, the investment outlook for various types of Florida properties remains steady. “People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” said Dr. Wayne Archer, director. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”

11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group.

12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.

14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.

Call today to find your piece of paradise, MARI VESCI REALTORS, Inc. 239-566-8989 or email vesci@vesci.com

Labels: naples fl real estate, naples florida home sales, Naples Real Estate Market

NAR: Pending home sales up for third month
WASHINGTON – June 2, 2009 –

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” says Lawrence Yun, NAR chief economist. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West, the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.

NAR President Charles McMillan says there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans to buy down the interest rate or make a larger downpayment.”NAR’s Housing Affordability Index (HAI) is in record territory. The index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. Tracking began in 1970.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.

Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability.

“In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” Yun says. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”

The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun says.©

2009 FLORIDA ASSOCIATION OF REALTORS®

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Details of FHA’s $8K downpayment advance released

WASHINGTON – May 29, 2009

The U.S. Department of Housing and Urban Development (HUD) released more details today about its program to help first-time homebuyers use a tax credit as part of a downpayment.

HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.

“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”

The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.

“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.Lenders have some flexibility on payback requirements for the upfront loan of the tax credit, though HUD also created rules to protect homebuyers from onerous terms.

To read the complete overview in Mortgagee Letter 2009-15, go to: http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2009_MORTGAGEE_LETTERS/09-ML-15%20USING%20FIRST-TIME%20HOMEBUYER%20TAX%20CREDITS.PDF

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