Easing Mortgage Lending Requirement

October 25, 2014 by

Easing mortgage lending requirements will provide great assistance in furthering the housing rebound.

Regulators promise thaw in mortgage credit underway

Regulators who oversee Fannie Mae, Freddie Mac and the Federal Housing Administration are telling mortgage lenders that they’re ready to cut them some slack, and mortgage lenders say they’re ready to run with the ball.

Speaking at the Mortgage Bankers Association’s annual convention, Mel Watt — who runs Fannie and Freddie’s regulator, the Federal Housing Finance Agency — said a pact with the mortgage giants to be unveiled in coming weeks should ease many of the fears lenders have about extending credit to riskier borrowers.

Revisions

Watt confirmed media reports that FHFA has reached an agreement with Fannie and Freddie on revising the representation and warranty requirements, and said lenders can expect to get more clarity in coming weeks. The revisions will still allow Fannie and Freddie to demand that loan originators buy back a loan at any time when there has been a “pattern of misrepresentations or data inaccuracies,” Watt said.

Fannie and Freddie will be able to bring back programs allowing them to guarantee some mortgages with down payments of as little as 3 percent. Like other loans made to borrowers making down payments of less than 20 percent, Fannie and Freddie will require them to obtain mortgage insurance at additional expense.

Positive News for Mortgage Lending

Mortgage Bankers Association President David Stevens called Watt’s speech, and similar remarks from Housing Secretary Julián Castro, “extraordinary announcements and extremely positive” for mortgage lending, the Wall Street Journal reported.

In his address, Castro noted that even former Federal Reserve Chairman Ben Bernanke has said that he had trouble refinancing his mortgage.

“If the former Fed chair is having trouble, imagine the frustration of average folks,” Castro told mortgage bankers. “The pendulum has swung too far in the other direction. There’s been a vacuum in the market and it needs to be filled.”

Inman News 10/2014

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Real Estate, Sarasota Real Estate Market News Tagged With: , , ,

New Life, New Design for Aqua Project Downtown Sarasota

September 24, 2014 by

Redesign for Aqua Downtown Sarasota

downtown sarasota condos - downtown sarasota real estateThe luxury condominium Aqua is undergoing CPR.

The project, at 280 Golden Gate Point in Sarasota, is being redesigned in a new shape that will meet setback requirements, said developer Jonathan McCague.

Aqua, with architecture by Guy Peterson OFA, appeared to be dead in June.

“Unforeseen zoning challenges” was the reason given by the development team when it announced that the project, with eight high-end residences, could not proceed “as currently designed.”

“We tried very hard to reconcile and move forward, and just couldn’t do it,” McCague told the Herald-Tribune in an exclusive interview. “I asked Guy, ‘What can we do? We decided, ‘Let’s start again.’ ”

The original plan is being replaced with a trapezoidal building — the front and rear facades are parallel, with the north wall perpendicular to them. The southern wall will be angled from the narrower front and the wider rear wall, which faces Sarasota Bay.

It will follow the 25-foot setback requirement that buffers it from a neighboring condominium. The new building will still have eight units. But they will be as much as 20 percent smaller, with a corresponding reduction in price, said McCague.

The original units were 3,780 to 6,620 square feet and were priced from $3.3 million to $5.7 million. “The new residences will have a broader appeal with their slightly smaller square footage, translating to a more competitive and attractive price point,” he said.

Amenities including private two-car garages, one boat slip per residence, a full-time concierge, a fitness and yoga studio and state-of-the-art security. Views are of downtown Sarasota, the Ringling Bridge and Sarasota Bay.

The first design used a city-approved 2007 site plan that permitted a second phase to the neighboring condominium. But with Aqua as a distinct project, the 25-foot setback regulation was back in force.

“In order to develop the property in the way they proposed, with the setbacks and plans, that still would have to meet that agreement,” Buster Chapin, senior zoning analyst for the city, told the Herald-Tribune in June. “It’s just a technical issue that needs to be addressed.”

It was addressed by starting over.

“You couldn’t slice and dice the building and still have architectural integrity,” Peterson said.

“We redesigned it and we are really excited about it. The building, in my sense, becomes more dynamic now because it is thinner in the front and has a more vertical sense to it, instead of being more boxy. It has a very clean language.”

The top two floors are penthouses, with taller ceilings. The penthouse floors partially extend over the lower floors. “We are celebrating the penthouses by projecting them out,” Peterson said.

Renderings are being refined and will not be released for about two months.

McCague said he “has his ducks in a row” and that the project will be in full compliance with zoning and permit regulations.

Peterson is the design architect for the project. The working drawings will be done by the architect of record, Parker Walter Group.

The project is being marketed by Premier Sotheby’s International Realty agents Cheryl Loeffler and Joel Schemmel.

Peterson’s original plan of a square building will be shelved at his First Street office, perhaps for use at another site. “Do you have one in mind?” McCague asked.

Sarasota Herald Tribune September 23, 2014

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Construction, Downtown Sarasota Real Estate, Sarasota Lifestyle Tagged With: , , ,

Sophisticated Urban Loft Project Underway Downtown Sarasota

September 24, 2014 by

VanGuard-Lofts-downtown-sarasota-condos

Downtown Sarasota Urban Loft Project

Tetra Terra Development (TTD) will build an upscale residential project of just six units in the Rosemary District north of downtown Sarasota.

Vanguard Lofts is being designed by Halflants + Pichette Architects of Sarasota.

Veteran Realtor Frank Lambert of Premier Sotheby’s International Realty will be the exclusive listing agent, said Judy Green, president and CEO of the real estate brokerage.

Vanguard Lofts will be designed with the urban infill philosophy of walkable city environments, with live/work spaces within walking distance of shopping, dining and entertainment venues.

The project will have three loft units and three garden units. The loft are priced from $745,000 for three bedrooms and three baths broad views of downtown Sarasota and partial views of Sarasota Bay.

The loft units will have 2,325 square feet of air-conditioned space. With terraces, balconies and private two-car garages, for 3,503 total square feet.

Loft living downtown sarasotaFeatures include balconies in each bedroom, 20-foot living room ceilings with floor-to-ceiling glass, and “floating” wood stairways to lofts overlooking the living room. The contemporary kitchen and baths will have high-end fixtures.

A fitness room will be on the second floor and a conference/media room on the third floor.

Priced from $530,000, the two-bedroom, two-bath garden units will have a home office and 1,468 square feet of air-conditioned space. They will have 400-square-foot private courtyard entryways, patios, porches, and private two-car garages in 2,280 total square feet.

The garden units will have landscaped private yards, covered wood patios, and 13-foot ceilings with floor-to-ceiling glass, along with a sidewalk entry and street parking.

Buyers will get three hours with a designer to select interior fixtures and finishes, with groundbreaking is expected by year’s end. VanguardLoft.com

Sarasota Herald Tribune Sept 2014

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Construction, Downtown Sarasota Real Estate, Sarasota Lifestyle Tagged With: , ,

Five of the Top Housing Markets for Executives are in Florida

August 24, 2014 by

Where the CEO’s Live

Five of the Top Housing Markets for Executives are in Florida

When it comes to real estate, many chief executives take a sunny outlook: Five of the top housing markets for CEOs are in Florida, including Miami, Sarasota and Vero Beach.

“These guys didn’t get to where they are by making poor financial decisions.” said Doug Grant, an agent with Coldwell Banker in Naples Florida, who says sales of $2 million-plus, single-family homes are up 83% in the first quarter, compared with last year.

Florida is also a popular destination because there is no individual state income tax – a fact that attracts buyers from New York and elsewhere, according to Elana Bluntzer with ONE Sotheby’s International Realty in Miami.

Charles DallAcqua, the 59-year-old chief executive of Leading Response, a marketing-services company, moved to Sarasota, Fla., from Annapolis, Md., in part because it was near one of his company’s call centers at the time. He and his wife, Valerie, live in a 3,600-square-foot waterfront Mediterranean-style home.

Mostly, though, CEOs are attracted to other CEOs, says Barbara Ackerman, a Sarasota, Fla.-based agent with Coldwell Banker. “Once you please one CEO, they refer you to the next,” she said.

Filed Under: Downtown Sarasota Real Estate, Sarasota Lifestyle, Sarasota Real Estate Market News

Sarasota Named Among Top Small Towns for Luxury Home Buyers

July 24, 2014 by

beau-ciel viewWhat do the Principality of Monaco and the city of Sarasota have in common? According to Christie’s International Real Estate, they are two of 10 of the most popular small communities for wealthy home buyers.

In Luxury Defined, Christie’s report on the luxury residential property market in 2013, Sarasota is listed as a “Jewel Box Market,” which is characterized as a community with a population of less than 150,000 that has a large percentage of wealthy residents and “quality lifestyle offerings.” The report cites the 8% of the local properties worth $1 million or more and a positive trend in the luxury market last year as reasons for Sarasota’s inclusion.

“Jewel Box” markets as defined by Christie’s International Real Estate include:

  •  Bedford, N.Y.
  •  Jackson Hole, Wyo.
  •  La Jolla, Calif.
  •  Martha’s Vinyard, Mass.
  •  Sylt, Germany
  •  The Principality of Monaco
  •  Montecito, Calif.
  •  Punta del Este, Uruguay
  •  Lugano, Switzerland
  •  Sarasota
Filed Under: Sarasota Lifestyle Tagged With: , ,

Cash is King in Southwest Florida Real Estate – Sarasota Market Update

May 22, 2014 by

Cash_buyers_sarasotaCash buyers continue to make up the bulk of Southwest Florida’s residential real estate transactions.

Sales of single-family homes and condominiums using cash accounted for 67 percent of all transactions in Sarasota County in January, according to a new report from data provider RealtyTrac. That was up from 62 percent in December, and from 45 percent one year earlier.

Home and condo sales closed with cash totaled nearly 60 percent of all sales in Manatee County in January, down from 64 percent from the previous month but up from 35 percent over the year.

Buyers, meanwhile, paid cash for 88 percent of the residences sold in Charlotte County, up from 83 percent in December and more than triple the 24 percent rate one year earlier.

As well, Florida remained the cash-buying capital of the nation at 65.5 percent of all home sales, RealtyTrac noted. The U.S. average was 44 percent.

The influence of institutional investors — such as giant equity fund Blackstone Group of New York — appears to be waning across the region.

Institutional buyers — defined as entities purchasing at least 10 properties a year — accounted for just 1.2 percent of residential sales in Sarasota in January. That compares with nearly 4 percent in December and 6 percent one year earlier.

In Manatee, institutions bought 7.5 percent of all homes, down from 15.5 percent the prior month and by 11 percent for the year.

In Charlotte, they accounted for 19 percent of residential sales, lower than the 30 percent the month before but higher than the 15 percent over the year.

Seven percent of sales statewide were purchased by institutions. The U.S. rate was 5.2 percent, a decline from 8.2 percent for the year and the lowest level since March 2012.

“Many have anticipated that the large institutional investors backed by private equity would start winding down their purchases of homes to rent, and the January sales numbers provide early evidence this is happening,” said Daren Blomquist, vice president at RealtyTrac.

“It’s unlikely that this pullback in purchasing is weather-related, given that there were increases in the institutional investor share of purchases in colder-weather markets such as Denver and Cincinnati, even while many warmer-weather markets in Florida and Arizona saw substantial decreases in the share of institutional investors from a year ago,” he added.

Florida had three metro areas with the largest drops in institutional investor shares of purchases: Fort Myers-Cape Coral, 70 percent; Tampa, 48 percent; and Jacksonville, 21 percent.

RealtyTrac said it looks as if big investors have moved to other parts of the country, with major increases in Austin, Texas, Cincinnati, Denver and Raleigh, N.C.

Meanwhile, lenders seem to be relying less on short sales to get rid of their distressed properties. Short sales are transactions in which lenders agree to allow a home to sell for less than the value of the mortgage.

Those sales totaled 14 percent of all residential deals in Sarasota in January, down from 20 percent a year earlier.

Manatee reported a 14 percent rate of short sales, compared with 16 percent a year before. And short sales comprised 8 percent of transactions in Charlotte, compared with 14 percent a year ago.

Owners also may be shying away from short sales because a popular tax break on forgiven mortgage debt expired at the end of 2013. That deduction saved short sellers thousands of dollars in taxes.

Florida led the nation, though, with a 15 percent level of short sales. The U.S. rate was just 6 percent.

The median sales price of all residential properties — including regular and distressed sales — climbed region wide over the year.

Sarasota posted a 22 percent gain to $154,000, Manatee reported a 7 percent gain to $155,000, and Charlotte rose 6 percent to $115,500.

Florida’s median price was $135,000, up 15 percent for the year.

Sarasota Herald Tribune, May 2014

Filed Under: Downtown Sarasota Real Estate, Sarasota Lifestyle, Sarasota Real Estate Market News Tagged With: , ,

Mother’s Day Celebration – Hyatt Sarasota

April 30, 2014 by

Celebrate Mother’s Day at the Hyatt Regency Sarasota – Sunday May 11

MothersDay2014 (1)

Filed Under: Sarasota Events, Sarasota Lifestyle

Top 10 Countries Racing to Buy American Homes

April 24, 2014 by

international buyers10 countries racing to buy American homes

International homebuyers are attracted to the United States for a number of reasons. These include favorable housing prices, good weather, the country’s relative economic stability and an attraction to America in general. As the housing market improved and home prices rebounded, the interest of foreign buyers in U.S. properties has soared.

Interest in U.S. property increased dramatically in a number of countries between 2009 and 2013. In all, interest in home buying, according to housing market firm RealtyTrac, increased by 95% or more in 10 countries, and at least doubled in nine of these nations. Interest in U.S. property by residents of the United Arab Emirates rose 352%, the most out of any country. Based on subscription data provided by RealtyTrac, these are the 10 countries where interest in buying American homes is on the rise.

Overseas buyers likely see value in the U.S. housing market. In an interview with 24/7 Wall St., Daren Blomquist, vice president of RealtyTrac, said, “The U.S. real estate market is coming off of a rough patch and entering recovery mode. And so international buyers see it as a great time to jump in and catch the U.S. market on the upswing.” According to the Case-Shiller 20-City Composite Home Price Index, the U.S. housing market is just beginning to rebound from its lows set in March 2012.

While tepid growth may dissuade some potential homebuyers, these countries have many exceptionally wealthy residents. Three of these countries — Germany, the United Kingdom and China — each had more than 10,000 ultra high net worth residents last year and were in the top five countries globally in that measure. China’s total number of ultra high net worth residents is even greater if the 3,180 ultra wealthy residents of Hong Kong are included.

Another key factor that drives many prospective homebuyers to consider the United States is common language. English-speaking countries accounted for 68% of international residents looking for homes in the U.S. Much of this interest came from U.S. neighbor Canada, which alone accounted for 45% of all international interest. The United Kingdom and Australia also each accounted for more than 10% of all interest, ranking second and third among all countries, respectively.

However, language does not explain the increased interest from countries such as the UAE and China, Blomquist noted. Additionally, much of the growth in foreign interest has come from European nations, including Switzerland and France. Six of the countries with the largest percentage increases in property seekers are located in Europe.

Another likely important factor in driving international interest in U.S. homeownership may be America’s reputation as a relative safe haven for investors. For many buyers, Blomquist noted, the U.S. represents “the most stable country out there.”

Concerns about the financial systems in Italy and China may contribute to demand for U.S. homes from those countries as well. Worries in China, Sweden, Canada, Switzerland and the U.K. about the local housing market may also be driving U.S. investment.

To determine the 10 countries where the interest in buying American homes is on the rise, 24/7 Wall St. reviewed subscriber data from RealtyTrac. We also reviewed figures on real (inflation-adjusted) GDP growth, population and other macroeconomic factors from the International Monetary Fund’s (IMF) World Economic Outlook. Figures on the number of ultra high net worth individuals, defined as people worth $25 million or more, are from Wealth-X.

These are the countries racing to buy American homes.

10. Germany

> Growth in prospective homebuyers: 95.2%
> Share of int’l prospective buyers: 2.6% (7th highest)
> GDP per capita: $39,468 (18th highest)
> Ultra high net worth population: 17,820 (2nd highest)

Germans accounted for 2.6% of all of RealtyTrac’s international homebuyers looking for U.S. property between 2009 and 2013. During that time, home searches rose by more than 95%. Contributing to Germans’ ability to afford international property was the country’s high number of ultra high net worth individuals last year of 17,820, second only to the United States. Despite the weakness of the eurozone economy and Germany’s own slowing growth, no major eurozone country grew faster in 2013. However, interest in U.S. properties has tapered off recently, despite the euro’s gains against the dollar. Between 2012 and 2013, the number of German prospective homebuyers to RealtyTrac rose by just 3.4%, less than most foreign nations during that time.

9. Sweden

> Growth in prospective homebuyers: 100.0%
> Share of int’l prospective buyers: 2.0% (9th highest)
> GDP per capita: $40,870 (14th highest)
> Ultra high net worth population: 1,070 (25th highest)

The number of Swedes interested in buying U.S. real estate doubled between 2009 and 2013. Much of this growth happened last year, when the number of Swedish home searches to RealtyTrac rose by 43%. Like many countries with many residents looking for homes in America, U.S. property may be considered an especially good investment, especially as their country’s economy has been stagnant. Sweden’s gross domestic product has grown less than 1% in each of the past two years. Additionally, many Swedes might find U.S. home prices more affordable. U.S. home prices remain below last decade’s highs, while many market followers believe Swedish home prices are precariously high.

8. Canada

> Growth in prospective homebuyers: 107.7%
> Share of int’l prospective buyers: 45.0% (the highest)
> GDP per capita: $43,146 (9th highest)
> Ultra high net worth population: 4,980 (8th highest)

Canadians make up the largest share of international U.S. home-buying interest, accounting for 45% of total international RealtyTrac subscriptions between 2009 and 2013. The U.S. geographical proximity to Canada and the cultural similarities between the two nations may explain the interest of Canadian investors. The strength of the Canadian economy may have also given residents more opportunities to invest. Last year, the average Canadian household’s net worth, the total value of all assets minus all debt, exceeded that of the average U.S. household. Residents may also find U.S. properties attractive because some consider Canada’s housing market to be overvalued by some.

7. Australia

> Growth in prospective homebuyers: 121.9%
> Share of int’l prospective buyers: 11.0% (3rd highest)
> GDP per capita: $43,042 (10th highest)
> Ultra high net worth population: 3,405 (11th highest)

Australians accounted for 11% of all of RealtyTrac’s international subscribers, third most after the United Kingdom and Canada. The country’s strong economic growth — at least when compared to other major developed economies — likely contributed to the increased interest in buying U.S. property. Australia’s economy grew by 3.7% in 2012 and an estimated 2.5% last year, according to the most recent IMF figures. By contrast, countries in the developed world grew by just 1.4% in 2012 and 1.3% in 2013. Despite recent declines, the Australian dollar has also gained considerably against the U.S. dollar in the past few years, also potentially contributing to the increased interest.

6. United Kingdom

> Growth in prospective homebuyers: 153.8%
> Share of int’l prospective buyers: 12.1% (2nd highest)
> GDP per capita: $37,299 (21st highest)
> Ultra high net worth population: 10,910 (4th highest)

U.K. interest in owning American property has jumped in recent years, including a 34.6% increase in the number of residents looking for property on RealtyTrac alone. Economic reasons could influence prospective homebuyers — residents may see U.S. homes as a safe or profitable investment. The U.K. government’s Help to Buy program, which provides financial help to prospective homeowners in the U.K., has drawn controversy. Detractors of the program have expressed concerns that home prices in the U.K. could rise to unsustainable levels. According to a June 2013 study by the National Association of Realtors, U.K. residents primarily buy single-family homes in suburbs and resort towns in the United States.

5. Italy

> Growth in prospective homebuyers: 178.4%
> Share of int’l prospective buyers: 1.9% (10th highest)
> GDP per capita: $29,598 (34th highest)
> Ultra high net worth population: 2,075 (14th highest)

Italian interest in U.S. homes rose considerably in recent years. Residents looking for homes in the U.S. rose by 178% between 2009 and 2013, despite Italian GDP falling by 2.4% in 2012 and 1.8% last year. In fact, the faltering economy may encourage many Italians to consider U.S. property as a relatively good investment. Italy is also home to a number of extremely wealthy citizens with the resources to invest globally. As of last year, there were more than 2,000 ultra high net worth individuals in Italy — 14th most globally — despite the fact Italy’s population totals an estimated 61 million, 24th most in the world.

4. France

> Growth in prospective homebuyers: 190.0%
> Share of int’l prospective buyers: 2.8% (6th highest)
> GDP per capita: $35,680 (24th highest)
> Ultra high net worth population: 4,490 (9th highest)

Interest in the United States from French residents has soared recently. Searches for homes on RealtyTrac from France nearly tripled from 2009 to 2013, and rose by nearly 60% last year alone. One reason for this may be that France had nearly 4,500 ultra high net worth residents as of last year, more than in all but eight other countries globally. However, France’s economy has also flatlined in recent years, which can often prevent foreigners from buying U.S. property. Simultaneously, many observers and residents have criticized President Francois Hollande’s socialist policy decisions and the resulting high taxes. A number of reports indicate that residents may be leaving the country due to high taxes and tough regulations.

3. Hong Kong and China

> Growth in prospective homebuyers: 254.2%
> Share of int’l prospective buyers: 4.1% (4th highest)
> GDP per capita: $52,687 (7th highest)
> Ultra high net worth population: 13,855 (4th highest)

China’s residents are a major source of international interest in U.S. real estate. China and Hong Kong, collectively, accounted for 4.1% of all international searches on RealtyTrac, more than any other non-English speaking country. One factor that may contribute to this demand is the high number of ultra wealthy residents in mainland China and Hong Kong, where a total of 13,855 such individuals live — more than in all developed nations but the United States, Germany and Japan. In recent years, many wealthy Chinese citizens have considered, or expressed interest in, moving to the United States. Additionally, while China’s economy remains one of the fastest growing in the world, concerns about slowing economic growth and rampant shadow banking activity in the country are considerable. A relatively wealthy population, and concerns about wealth protection, may encourage Chinese residents to consider U.S. property.

2. Switzerland

> Growth in prospective homebuyers: 269.7%
> Share of int’l prospective buyers: 2.1% (8th highest)
> GDP per capita: $45,999 (8th highest)
> Ultra high net worth population: 6,330 (7th highest)

The number of Swiss residents interested in U.S. property has risen dramatically in recent years. Only the United Arab Emirates had a larger increase in the number of prospective homebuyers than the small Alpine nation. Swiss residents accounted for 2% of all international searches despite a population of just roughly 8 million — smaller than New York City. Despite its size, Switzerland was also home to more than 6,300 ultra wealthy residents last year — more than all but a handful of countries. Also helping to make U.S. properties more appealing, or at least more affordable, is the considerable appreciation of the Swiss franc against the dollar over the past five years, up nearly 27% in that time.

1. United Arab Emirates

> Growth in prospective homebuyers: 352.2%
> Share of int’l prospective buyers: 1.1% (12th highest)
> GDP per capita: $29,877 (31st highest)
> Ultra high net worth population: 1,050 (26th highest)

While UAE residents accounted for just 1.1% of RealtyTrac’s international searches, interest in U.S. property from the country has boomed. Between 2009 and 2013, the number of UAE subscribers rose by 352%, the largest percentage increase of any country. One reason may be the relatively high number of residents who can afford international property ownership. While the country has just 9 million residents, it had more than 1,000 ultra high net worth residents last year. Much of this wealth is likely connected to the country’s oil industry. Roughly 40% of the emirates’ GDP was tied to oil and natural gas output, according to OPEC, and oil prices have risen considerably in recent years.

 

Filed Under: Downtown Sarasota Real Estate, Sarasota Real Estate Market News Tagged With: , ,

3 major things you need to know about the 2014 housing market

March 28, 2014 by

housingwire.com 3/17/2014

The following list was put together by a veteran housing economist, asked by HousingWire for his opinion on the near-term future of the markets we cover daily. Here’s David Berson’s take on the 3 things you need to know about housing in 2014.

No. 1: 2014 should prove to be the strongest year for housing activity since before the Great Recession

Housing activity (home sales and housing starts) has increased modestly over the past several years, but is still at levels well-below sustainable trends. For both economic and demographic reasons, 2014 should be the year when activity reaches the highest level since 2006/2007.

Propelling home sales are job growth and housing affordability. The latter reflects the interplay of household income, mortgage rates and house prices. In 2013, while housing activity picked up, it was a year when job growth remained low and virtually unchanged from the previous year. Moreover, affordability, while still high, fell sharply in the second half.

Most economists expect an improved job market in 2014, with employment growth accelerating and the unemployment rate continuing to decline. That jobless rate drop will reflect more of a pickup in employment than further declines in the labor force participation rate. This will be the key factor improving housing demand this year, even if mortgage rates rise and affordability declines. While the housing market tends to do especially well when the job market improves and mortgage rates decline simultaneously, that combination of events occurs only rarely.

More often, either job gains accelerate while mortgage rates rise, or job gains decline while mortgage rates drop. Typically, housing activity expands in the former case and contracts in the latter. People buy homes when their job and income prospects improve – even if it’s more expensive to do so – rather than buy when it is inexpensive to do so but they’re worried about keeping their jobs.

No. 2: Demographics should start to favor housing activity

The demographic factor most affecting the housing market is household formations. Newly formed households may buy or rent, but they reside somewhere as an independent unit. On average, roughly 1.2 million households form every year in the United States and they each demand a housing unit. Household formations are affected by the job market, as people “double-up” when worried about their job and income-earning prospects.

The Great Recession and the modest job recovery in the years following induced many people who might have lived independently to move in together. That’s most noticeable in the rise in the share of young adults living with their parents, primarily because of the weak job recovery.

Reflecting the slow pace of household formations, there is an increasing pent-up demand for households. After all, most of these young adults would prefer the freedom of being on their own (and their parents really don’t want them as full-time residents, either). We estimate the economy is short by more than three million households.

If the economy expands at a faster pace this year, bringing a more rapid rate of job creation, that should translate into more households, raising housing demand. We won’t see all three million missing households return to the housing market at once. (That wouldn’t be a good thing for the housing market anyway, since that would be on top of the 1.2 million households that normally would develop this year; such a surge would swamp the existing housing supply). Beginning in 2014, the pace of household formations should accelerate to an above-trend pace for several years, pushing up housing demand.

No. 3: Mortgage availability shouldn’t worsen and may improve

Mortgage credit isn’t nearly as easy to get as it was during the housing boom, and it shouldn’t be. Still, compared with recent years, mortgage availability has increased slightly. And reasons exist for mortgage availability to be no worse in 2014 than in the past few years. Actually, it may be somewhat easier to get a mortgage loan.

With the dislocations in mortgage lending since the housing bubble popped,Fannie Mae and Freddie Mac have increased their share of the mortgage market significantly. When combined with lending from the Federal Housing Administration and the Veteran’s Administration, the government or government-sponsored share of mortgage lending has climbed to more than 90 percent in recent years. That is an untenable situation in the long run, but is unlikely to change much this year.

The good news is that new Qualified Mortgage lending rules from theConsumer Financial Protection Bureau exempt home mortgages that qualify for purchase or securitization from Fannie and Freddie. As a result, mortgage lenders won’t have to tighten their mortgage-underwriting requirements in response to QM as long as they sell their loans to the GSEs.

Additionally, the rise in mortgage rates already has reduced mortgage origination volumes as refinance activity declines. If mortgage rates rise further this year, as expected, then refinance activity will fall still more. In response, mortgage lenders probably will ease lending standards to the extent possible under the QM rules to boost lending activity by increasing purchase originations. As a result, the increase in new households expected to be created this year, spurred by a stronger job market, should find that qualifying for a mortgage loan will be somewhat easier in 2014 than in prior years.

Filed Under: Downtown Sarasota Real Estate, Sarasota Real Estate Market News Tagged With: ,

Downtown Sarasota Luxury Development

February 22, 2014 by

There’s a lot of excitement surrounding the new development and renewed investment in Downtown Sarasota. With an improving economy, many projects are back on the drawing board, along with some new ones. 

AQUA – Golden Gate PointAqua - Downtown Sarasota

The exquisite nine-story AQUA will offer full-floor luxury residences with floor-to-ceiling glass, soaring ceilings, gourmet kitchens, custom details and expansive terraces overlooking Sarasota Bay. Amenities planned include concierge, private elevator entries, temperature-controlled wine room, private two-car garage, private boat slip with lift, fitness studio, sauna/spa, water front heated pool and spa, along with a rooftop entertaining space.

 

The JewelJewel - Downtown Sarasota

The Jewel will feature tower residences and a sleek modern appeal with unobstructed views of Sarasota Bay. Located at the corner of Gulf Stream Avenue and Main Street, this mixed-use development will offer 18 luxury residences ranging from two-story lofts to a full floor penthouse, with generous balconies, soaring ceilings and floor-to-ceiling glass. Luxury appointments include designer lighting and finishes, interior parking, infinity pool, state-of-the-art gym, poolside steam bath, paddle tennis court and putting green, along with the Emerald Club.

 

 

ONE88  – Golden Gate PointOne88-Development-Downtown-Sarasota

ONE88 will consist of eight residences in a five-story building, with each condo featuring a view of Sarasota Bay and of the marina to the east. Amenities include boat docks, a car lift, a lap pool, private balconies and a rooftop terrace with direct access from the penthouse suites. The condos will be approximately 3,000 square feet and are anticipated to be priced in the mid-$2 million range.

QQ-downtown-Sarasota

Inspiring Design & Extraordinary Living. The Q’s townhome residences, on Ringling,  will offer casual city living, with gracious floor plans, designer finishes, soaring ceilings and magnificent city views, located near cultural venues, dining, shopping and moments to Sarasota Bay.

 

Sansara

Sansara-Downtown Sarasota Real Estate At 300 S. Pineapple Ave. in the Burns Square neighborhood, the multi-use Sansara development project will feature 17 luxury residential units, and first level commercial space, in a zen-inspired design. Residential levels will accommodate two units per floor, ranging from 2,280 to just under 2,800 square feet, while the penthouse is planned to boast over 4,500 square feet, with 14 foot ceilings. Each residence will feature walls of glass the open to beautiful Sarasota Bay Views. A second floor amenities level is planned to include a pool, cabanas, fitness center, spa and yoga studio.

 

 

The former Sarasota QuaySarasota-Quay

The Sarasota City Commission recently denied a Jacksonville developer’s request for a 30-year extension to develop the Quay property.  Commissioner Chapman stated “The Quay property is one of the most valuable pieces of property in the city in terms of affecting our community.” “This is a project that is a bridge between our arts and culture amenities and our downtown.”

VUEVue - Downtown Sarasota Real Estate

Boasting 141 residences, the VUE will offer extraordinary waterfront lifestyles on Sarasota Bay. An impressive 18-story structure at Gulfstream Avenue and U.S. 41 will feature magnificent views, expansive floor plans of 2, 3 and 4 bedrooms ranging from 1,700 to 2,600 sq. ft. and Penthouse residences from 2,800 to 3,500 sq. ft.  Appointments include spacious terraces, contemporary coastal design and designer appointments. Amenities will include a pool, sundeck, club room, fitness center and access to full-service resort amenities of the planned new construction of the adjacent Westin Sarasota Hotel.

Filed Under: Downtown Sarasota Real Estate, Sarasota Lifestyle, Sarasota Real Estate Market News
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