Sales of new homes surged in April by the biggest amount in 14 years in the U.S., although the median price of a new house also dropped by the largest amount on record. (more…)

What is the state of the Florida housing market? It may have suffered a fall two years ago, but segments are returning. (more…)

Area banks are racking up millions of dollars in bad debt, thanks to the softening Southwest Florida housing market. (more…)

A trio of reports on Tuesday showed that the future of the Southwest Florida housing market remains murky even among signs that it is outperforming most of the Sunshine State. (more…)

Are there more signs of life in the Southwest Florida housing market? Some local builders seem to believe there are. (more…)

As community leaders debate housing options with prices attractive to working families and first-time home buyers, those potential Florida mortgage seekers find themselves investigating old housing stock in developments that were once desirable, then declined, and now look good again.

Because, well, they’re there - and they’re affordable.

(more…)

Recent housing headlines have been ugly: Foreclosures. Declining Florida mortgage activity. Low sales. Eroding home prices.

(more…)

When Matt Kihnke paid $15.5 million for a Bradenton apartment complex in March 2005, the real estate investor was primed to become the architect of another condo conversion success story.

(more…)

Local real estate experts shared a positive outlook about the Southwest Florida housing market at the Bonita/Estero Market Pulse ‘07 Thursday night.

How quickly it will turn around, they said, depends on sellers’ willingness to reduce home prices in Florida. A sold-out crowd of more than 250 came to Three Oaks Banquet and Conference Center in Estero.

The event was presented by the Bonita-Estero Association of Realtors and the Bonita Springs Area Chamber of Commerce.

Jim Scartz, managing broker of John R. Wood Realtors in Bonita Springs, said the market has begun to turn for single-family homes, but the over-saturated condo market will take a little longer to bounce back.

After the boom of 2004-05, he said, sales prices in 2006 reflected closings on newly constructed homes that were bought six to 18 months earlier.

The Office of Federal Housing Enterprise Oversight reports that Lee County’s median housing prices rose 120 percent over five years — an average of 24 percent per year from 2002 through 2006.

The prices were not reflective of the true market in 2006, and as many as 60 percent of the listings had unrealistic prices. Even now, Scartz said, about 35 percent of the inventory falls into that overpriced category, hence why Florida home loan demand has slowed.

But sales have increased over the past three months, and he expects the number of homes for sale to decrease throughout 2007 as Florida mortgage activity picks up.
“What we are seeing is the properties that offer a water front location, a golf course or other special amenities are generating the most interest,” Scartz said.

But many investors expecting a quick flip bought condos without many amenities and away from the Gulf. Scartz said they will face the most difficult time selling their properties. Still, Scartz said his company predicts 2007 will be the third best year on record for real estate sales, with 2008 comparable to the 2004-05 boom.

Mike Timmerman, of Hanley Wood Market Intelligence, expects a slower turnaround. He said the existing home sales pace will remain slow in 2007 but might pick up as prices are adjusted downward.

“There has been a decrease in sales over the 18 months since September of 2005,” Timmerman said. “… On the positive side, most cycles don’t last more than 18 to 24 months.”

He said pressure from the resale market is causing developers to offer price reductions to cut cancellations and spur sales. Because of the 2004-05 boom, Scartz said, builders stayed busy completing previously sold homes. Now that those homes are built, layoffs aren’t surprising.

However, he expects builders to begin looking for land for new projects by the end of 2007, which will bringing jobs back to the local construction industry.

Scartz said baby boomers will have a tremendous impact on the local Florida housing market. The volume and number of home sales is up slightly over 2006 in the under-$500,000 category, although the average list price of sold properties is 7 percent less than last year, he said.

Homes in the $500,000-plus category show 2007 already stronger than 2006 in units, volume and average list price.

“Prices always take off with a roar at some point after the plateau, achieving far higher levels than in the past,” Scartz said.

On the commercial front, Andrew DeSalvo of Premier Commercial Properties said the Bonita-Estero market is affected by increased impact fees and insurance rates.

However, he said, property taxes and material costs should be stabilizing and subcontractors are available for work.

He said retail in Bonita and Estero equals 41 percent of Collier County’s total retail market and 21 percent of Lee’s. The three regional malls in south Lee have reached virtually 100 percent occupancy.

SOURCE: The News-Press

A state House council Wednesday supported a measure to keep property taxes low for some Florida homeowners, earning praise from Manatee County leaders trying to offer more affordable housing in the area.

Rep. Keith Fitzgerald (D-Sarasota), pushed his bill - which may greatly help those in need of affordable Florida mortgage loan financing - through the Government Efficiency and Accountability Council by unanimous vote.

The proposal would ensure that homes built on community land trusts, which are designed to provide permanent low-cost housing, are not subject to the kind of rising property taxes plaguing other state homeowners.

When moving into homes set up by a community land trust, people are buying only the building with their Florida mortgages, not the land. The houses are relatively inexpensive, but to make sure they stay that way, the land trust limits how much owners can ask for them if they move.

Fitzgerald’s bill creates a framework for taxing the land-trust homes at rates reflecting that resale limit, instead of their fair market value.

By keeping the homes’ property tax rates low, Fitzgerald said, his proposal would pave the way for more Floridians to become homeowners.

“Working people, young people, people on fixed incomes are having a very difficult time finding places to live, and it affects the entire economy,” Fitzgerald said.

The Manatee Chamber of Commerce is also backing new affordable housing measures, hoping they can help attract workers wary of home costs in the Southwest Florida housing market.

As of December, the median price for a Manatee County home was more than $240,000, said Robert Bartz, president of the chamber. At the same time, the median household income for the county hovers just under $45,000.

“To us, that’s a very sad state,” he said.

Chamber officials have been keeping in touch with the area’s legislative delegation to make affordable housing a top priority, Bartz said.

“I think whatever they’re doing in Tallahassee right now, it’s admirable,” he said.

Fitzgerald’s bill, which has a companion measure in the Senate, has to be heard in one more council before reaching the House floor.

“It’s a big challenge,” Fitzgerald said. “Anything we can do to help them keep housing stock in the affordable category is very important.”

What’s next?

The bill has to clear the House Policy and Budget Council before it can be heard by the entire House. A similar Senate bill must then advance through the Senate’s committees on Community Affairs, Finance and Tax and General Government Appropriations. The Senate bill is still waiting to be heard for the first time.

Hopefully, this measure achieves success and will allow for greater Florida mortgage affordability for residents of Southwest Florida.

SOURCE: Bradenton Herald