Southwest Florida Housing Market Remains Steady, Appeals to All Buyers

More homes may be on the market, but this inventory increase has not dampened the spirit of real estate developers across Florida.

At the 2006 Luxury Living Showcase Developer Roundtable, hosted by Michael Saunders, those in the Florida home loan industry were confident about the future of their market. Saunders stated that this influx of new houses for sale simply provided buyers with a wide range of choices.

“We had none last year,” said Saunders, CEO and president of Michael Saunders & Company. “We had unsustainable appreciation, and we had to catch our breath. What we have now is a sustainable and a very, very healthy market.”

Why has The Gulf Coast and Southwest Florida fared so much better than other areas of the country? A large reason is its economy. While there have been concerns about a downturn in the real estate market, the Florida home loan experts just don’t see it.

Instead, they see a healthy market and strong demand from baby boomers that will help sustain the market.

Al Piazza, who has helped develop properties in Miami and is developing a project in downtown Sarasota, said he doesn’t see any bursting bubble.

“We saw investors disappear and the crowd control problem is over, but now we are selling to real buyers,” Piazza said. “The job growth exceeds the ability to supply housing. The projected population growth also supports the market.”

A Florida home loan for all income classes

Saunders said the market would continue to support all of the new homes in each price range.

“It is a more measured inventory and a normalization compared to where we were just six months ago,” she said. “When we hear about people reducing prices because they won’t sell, it is probably because they were too high in the first place. It’s time to get real.”

Tim Morris, of Corvus International, who helped develop a condominium community on Longboat Key, said his company is looking to interior counties, such as DeSoto, to build larger developments.

“By going to DeSoto, we can get 10,000 acres at a time and they perceive growth as good and help us,” Morris said. “We would create golf courses and lifestyle centers in the $300,000 to $500,000 range.”

More than half of the buyers are seeking homes in the $300,000 to $700,000 range. Kevin Daves, who helped bring the Ritz-Carlton to downtown Sarasota, said the area remains unique when compared to other parts of Florida.

“The market is still wide open to everyone,” Daves said. “We really don’t compete, because not everyone is looking for the same thing.”

Randy Moore, who is developing condominiums on Longboat Key, said the costs of building is higher and new hurricane codes are adding to the prices. While the added costs can sometimes be a problem, the added security is also a selling point.

“For the consumer, they ask what the benefit is and want all of the amenities,” Moore said. “The quality of construction and design today is much higher than three to five years ago.”

It’s true. These days, if you’re searching for a new house and a Florida home loan, you are looking for hurricane-proof properties. Understandably, buyers are willing to pay extra for this safety.