Archives for May 2018

Bayfront Group Refines Concept Plans

bayfront projectA singular vision for redeveloping the bayfront near downtown is coming into focus

Just three days after The Bay Sarasota stopped collecting surveys on a series of concepts for redeveloping more than 50 acres of city-owned waterfront land, the planning group was busy dissecting the information the public had submitted.

Based on more than 1,000 surveys — about two-thirds of the total results — some community priorities had already become clear. So, too, had some areas of public concern.

The feedback, both positive and negative, will inform the final master plan. As The Bay tries to build support among residents and city officials in pursuit of an ambitious bayfront vision, the group continues to express confidence that an actionable plan is coming together.

That’s not to say there are no questions regarding the path The Bay is taking. More than four years after Sarasota Bayfront 20:20 formed as a grassroots coalition to redevelop the property, residents have spoken out against plans to replace the Van Wezel Performing Arts Hall and reconfigure the 10th Street Boat Ramp. Not everyone is behind the group’s broader approach to putting together a plan.

At this point, The Bay isn’t looking for unanimous support. Bill Waddill, The Bay’s managing director, said the positive responses have largely outweighed the criticisms — but the group will address all the input it receives as it refines its plans.

“We’re going to have debate and disagreement,” Waddill said. “People raise issues and concerns. That’s fine. That’s healthy. That’s what happens in these processes — it’s now getting more and more real.”

On Tuesday, The Bay held a board meeting to discuss the latest stage of the process. After presenting three concept plans in April, the group is working with the planning firm Sasaki to consolidate the survey results into a single plan.

The surveys provided insight into some community preferences. Some examples: About 90% of respondents said they liked the waterfront walking paths included in each plan. Between 70% and 75% of the public endorsed the outdoor performance spaces in each concept. Nearly 80% liked the pedestrian bridges included in one plan.

The bayfront planners will use the Bride the Divide concept as a starting point, but forthcoming changes will reflect public input.

Overall, the public ranked the three plans relatively closely. The leading concept was “Bridge the Divide,” which featured the pedestrian bridges, a performing arts center spanning the canal near 10th Street and an emphasis on green space. As a result, Sasaki plans to use that concept as a starting point for developing a final plan.

Already, the group has identified some changes it wants to make based on public input. They include reconfiguring the proposed performance arts center to preserve views of the bay, creating more opportunities to activate the waterfront and exploring options for honoring the Van Wezel building.

Before the end of the month, Sasaki planners intend to return to the city with more revisions — including more information about expenses and a possible governance setup for the land.

“What you’ll see next won’t necessarily look like the ‘Bridge the Divide’ scheme,” said Gina Ford, Sasaki’s lead designer for the project. “We’re trying to morph it and integrate other things the community said it liked.”

Constructive criticism

As the plans for the bayfront become more detailed, so do the criticisms. One of the challenges The Bay faces is deciding how to respond to individual concerns.

In some cases, the group is willing to admit it’s missing the mark. Some of the strongest negative responses to the concept plans were tied to how they would affect boat access to the water. A.G. Lafley, chairman of the Sarasota Bayfront Planning Organization, encouraged the group to make a better effort to reach out to local boaters and to research what’s made other boat ramps successful.

“We have a community that’s fairly large that we have to get connected to and understand,” Lafley said.

The Bay is handling a push to preserve the Van Wezel slightly differently. About 17% of the survey responses reviewed so far offered comments about the Van Wezel. A majority expressed a desire to keep the building.

The planning group has repeatedly said its proposal for a new performing arts hall reflects the Van Wezel’s belief the existing venue is operationally limiting. At Tuesday’s meeting, The Bay members pointed out those pushing hard for the preservation of the Van Wezel were a vocal minority of respondents.

Still, the group has always expressed an intent to honor the Van Wezel in some form, no matter what happens to the current structure. Based on the results, the group committed to seriously explore the opportunities to repurpose the Van Wezel building. Waddill also stressed that, no matter what decision the city came to, it would be a long time before a new performing arts hall could even be built,  which means there’s plenty of time to carefully consider the Van Wezel’s future.

“It’s a series of decisions that will happen over years,” Waddill said.

In some cases, the planning group is standing behind its expertise despite some negative feedback. Surveys showed 36% of the public disliked the proposal to include a waterfront drive cutting through the green space in the Bridge the Divide scheme. Sasaki planners said this was an important feature for circulation during major events, for access for older residents and to connect the park to the fabric of the city.

The planners said they wanted to communicate to the public that the park driveway would be a small road that would not disrupt the green space with an overwhelming urban feeling.

“We can design it to be a low-speed, beautiful park experience,” Ford said.

There are some critics of the overall scope of The Bay’s work thus far. At Tuesday’s Downtown Improvement District meeting, board member and developer Mark Kauffman said he was upset about the inclusion of restaurants and parkland in the concept plans. He thought the bayfront redevelopment should be focused on cultural institutions, and he feared too many different ideas were being incorporated.

“These people tried to do everything for everybody,” Kauffman said.

Waddill said it’s easy to lose sight of just how much land is available. By way of comparison, he points to the area around the Straz Center for the Performing Arts in Tampa. That hub, which includes multiple theaters, the Tampa Museum of Art, Glazer Children’s Museum, Curtis Hixon Waterfront Park and a 932-space parking garage, is 23 acres.

He understands why Kauffman and others have the instinct to advocate for a more focused vision, whether it’s for a district celebrating the arts or for public parkland. He wants to assure the public that there’s plenty of land to do both, with room to spare.

“I’ve had some questions about why it seems like we’re trying to do a lot in this space,” Waddill said. “The answer is: We have 53 acres.”

 

Sarasota Observer, May 3, 2018

Florida Real Estate Market Healthy but Challenged

Florida Real EstateFlorida Home Prices Up, Inventory Down and Interest Rates are Iffy.

The Florida real estate industry is healthy, though several thorny challenges confront residential sales, one of the nation’s leading economists told a gathering of about 80 agents and brokers Wednesday morning.

Lawrence Yun, chief economist and senior vice president of the National Association of Realtors, covered the proverbial waterfront during his presentation at the 12th annual Global Conference, a production of the Realtor Association of Sarasota and Manatee and the Global Business Council held at RASM’s Sarasota headquarters.

The daylong conference focused on the international real estate market, though Yun incorporated many domestic points in his presentation, “Economic and Real Estate Market Outlook.”

Foreign Buyers and Florida

On the tax reform law, “We’ll have to wait and see whether this impacts home buying in the future or not,” Yun said. But he echoed a sentiment expressed by many: The Florida market will be a “big beneficiary of net migration” from Americans fleeing such high-tax states as New York and New Jersey as the tax law chews into their income-tax deductions. “We’re already seeing that.”

Last year, foreign buyers bought $23.8 billion in Florida real estate, more than double the figure from a decade ago. Seventy-three percent of those 2017 purchases were all-cash, Yun said, because wealthy international buyers don’t need mortgages. The foreign property purchases account for 11 percent of the value but only 6 percent of the sales volume, indicating those purchases were primarily high-end homes.

The top international buyers of U.S. real estate last year came, in order, from China, Canada, Mexico, India and the United Kingdom.

Although most of the Chinese purchases were in California, “the Florida market certainly has a larger share of foreign investors,” Yun said. “We have greater contact with people of other nationalities.”

The state, he said, is also “raising the confidence of foreign buyers” with safe property investments that are bound to appreciate.

National Economic Picture

During the first quarter of 2018, a rising number of households expressed more confidence in the economy and their financial position, but only 68 percent of consumers felt now is a good time to buy a house, the lowest percentage in two years. That’s according to NAR’s first-quarter Housing Opportunities and Market Experience survey.

Income, debt and anxiety are stopping some from buying.

“They need to believe things will turn out well after buying,” Yun said. The “very, very competitive” nature of the current residential market — with inventory down 13 percent, prices up 9 percent and mortgage rates expected to rise again — is being met with caution. “They’re feeling rushed to buy.”

From 2011 to 2017, income grew by 15 percent but housing prices surged by 48 percent, Yun said. “This is a big concern for renters,” he said, and an obstacle to converting to home ownership.

Consumers should not wait for mortgage rates, at 4.5 percent now, to fall, not with the Federal Reserve forecast to raise its benchmark interest rate two more times this year and three in 2019.

“Two years from now, mortgage rates could be 6 percent,” Yun said. “Don’t take the current rates for granted.”

While national existing home sales rose last year to their highest level in 11 years, the pending home sales index has stalled and inventory continues to fall, he said. “Builders have been under-producing,” Yun said, and the annual increases in construction since the subprime disaster have been “very minimal.”

Sarasota Herald-Tribune, May 9, 2018

Sarasota Real Estate Market Report – March 2018

Sarasota Real EstateLast month, the Sarasota-Manatee residential real estate market showed an increase in the number of closed sales and pending sales, a continuation in the rise of median prices and a drop in inventory levels.

Home buyers preferred condos and townhouses over single-family homes, a likely sign that snowbird season has been good for one sector of the residential market.

March condo sales rose 9.9 percent in Sarasota to 454 and 9.7 percent in Manatee to 284 year over year. As for single-family homes, Manatee sales fell 0.2 percent to 580, while Sarasota dropped 2.3 percent to 766.

Closed Sales
In the two-county metropolitan statistical area, closed sales for single-family homes and condos reached 5,015 properties so far this year, a 2.3 percent increase from this time last year. Comparing this past month to March 2017, statistics show a 1.4 percent drop in single-family home sales but a jump in condo sales of 9.8 percent.

“With the close of ‘season’ fast upon us, we are once again showing an increase in combined sales in both counties,” said Greg Owens, president of the Realtor Association of Sarasota and Manatee.

“Pending sales showed a combined 14.9 percent increase from February 2018 to March 2018,” he said. “This increase indicates a strong finish going into summer.”

Median Prices
Year over year, single-family median prices in Sarasota rose by 9.3 percent to $287,053 while Manatee dropped by 1.7 percent to $285,000. The median sales price for Manatee condos jumped by 15.1 percent to $201,500 and Sarasota condos increased by 4.3 percent to $240,000.

Combined, pending sales for single-family homes and condos increased by 4.9 percent from March 2017.

Inventory
The decline in new listings is another good indication of the selling season ending, the association said. The number of properties put on the market during March 2018 fell by 7.6 percent from 2017 in the two-county area. Combined inventory in the two-county area dropped by 14 percent from March 2017. Compared with last year, the supply of single-family homes decreased 15.4 percent, while that of condos fell 11.4 percent.

In single-family homes, Charlotte County showed a 2 percent increase in closed sales, to 411, a 10.2 percent jump in the median sales price and a 0.4 percent rise in pending sales. In townhouses and condos, closed sales jumped by 14.8 percent, the median sales price increased 10.8 percent to $176,250 and new pending sales rose 2.2 percent, to 139.

Florida’s Market

Across the state, March’s tight inventory constrained sales and pushed median prices higher, according to the latest housing data released by the Florida Realtors trade association. Closed sales fell by 3.5 percent, while median prices rose by 8.2 percent year over year.

The statewide median sales price for single-family existing homes last month was $250,800, up 8.2 percent from the previous year, while the statewide median price for townhouse-condo properties was $183,000, up 7 percent over the year-ago figure.

“As the ongoing supply of for-sale homes continues to tighten, it can create a cycle of frustration for home buyers, especially those trying to become a first-time homeowner,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “If move-up buyers can’t find a home in their desired price range, then they aren’t likely to leave their current home, which in turn makes entry-level properties even more scarce.

“Buyer demand is high, but the shortfall of inventory — particularly around $250,000 and under — is impacting affordability in many areas.”

March was the 75th consecutive month that the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year.

National Numbers

Across the country, existing-home sales increased for the second consecutive month in March, but lagging inventory levels and affordability constraints kept sales activity below year ago levels, according to the National Association of Realtors. Despite the increase, March sales were still 1.2 percent below a year ago.

“The unwelcome news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford,” Lawrence Yun, NAR chief economist, said in a press release.

The median existing-home price for all housing types in March was $250,400, up 5.8 percent from March 2017 ($236,600). March’s price increase marks the 73rd straight month of year-over-year gains.

Housing affordability is down from a year ago and fewer households can afford the active inventory of homes currently for sale on the market based on their income. That is according to joint research from the National Association of Realtors and realtor.com, an online real estate destination.

Using data on mortgages, state and metro area income and listings on realtor.com, the Realtors Affordability Distribution Curve and Score is designed to examine affordability conditions at different income levels for all active inventory on the market. A score of one or higher generally suggests a market where homes for sale are more affordable to households in proportion to their income distribution.

According to March data, 35 metro areas had better affordability compared to a year earlier, led by Austin-Round Rock, Texas, (from 0.55 to 0.66), Syracuse, New York, (1.04 to 1.1) North Port-Sarasota-Bradenton, (0.60 to 0.66) and Palm Bay-Melbourne, (0.71 to 0.77).

Sarasota Herald-Tribune April 23, 2018