Cash Buyers – Sarasota-Manatee No. 2

July 20, 2015 by

Cash Buyers SarasotaCash Buyers

Cash on the table remains the preferred method of payment for home buyers in Southwest Florida.

The Sarasota-Manatee region ranked second among the 100 largest U.S. metro areas for cash buyers in April, according to a recent report by data provider CoreLogic.  The two-county region ranks second among major U.S. metropolitan areas for the highest share of cash buyers of single-family homes and condominiums.

Cash buyers have dominated the Sarasota-Manatee real estate market for several years, even leading the nation for the top share in April. But no-loan buying has actually slowed down, as 58.1 percent of home sales were closed with cash in May 2014.

Nationwide, all-cash buying dropped to 24.6 percent in May, its lowest level since November 2009, RealtyTrac reported.

  • Florida led the nation with a cash sales share of 51.4 percent, CoreLogic said
  • Alabama was second at 48.5 percent, followed by West Virginia at 48.3 percent and New York at 45.4 percent.
  • The West Palm Beach-Boca Raton-Delray Beach region posted the nation’s highest share of cash sales at 59.1 percent. Cape Coral-Fort Myers was third at 58.1 percent, and Fort Lauderdale-Pompano Beach-Deerfield Beach was fifth at 56.9 percent.
  • Syracuse, New York, reported the lowest share of cash sales at 11.0 percent.

Locally, Realtors say smaller investors have become key players in home sales while large institutional investors — who commanded the market during its early rebound — have stepped back. Retiring baby boomers who have sold homes up North also are paying cash for homes here.

“As housing transitions from an investor-driven, cash-is-king market to one more dependent on traditional buyers, sales volume has been increasing over the last few months and is on track in 2015 to hit the highest level we’ve seen since 2006,” said RealtyTrac vice president Daren Blomquist.

Institutional investors — those that buy at least 10 properties a year — accounted for just 1.7 percent of home and condo sales in Sarasota-Manatee in May, down from 4.8 percent one year earlier.

The share of distressed sales — homes in some stage of foreclosure — also has declined from 24.8 percent to 15.5 percent of all sales over the year.

Realtors say the region is in a sellers’ market, with high demand and a dwindling supply of existing homes for sale.

In Sarasota and Manatee, the median sales price for homes and condos was $155,000 in May, down 1 percent for the year.

But as usual, distressed sales pull down those numbers. Non-distressed homes sold for a median $180,000, or 9 percent ahead of last year, while distressed properties changed hands for $105,000, a 9 percent drop.

“Distressed sales in May represented a significantly smaller share of a growing home sales pie as an increasing number of non-distressed sellers continued to cash out on the equity they’ve gained over the last three years of rising home prices,” Blomquist said.

“But those distressed sales are still acting as a drag on home prices, selling at a median price that is 43 percent below the median price of a non-distressed sale — the biggest gap we’ve seen since we began tracking that distressed discount in January 2006,” he added.

Herald Tribune July 2015

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

Home Buying Season in Full Swing – Downtown Sarasota

March 26, 2015 by

Southwest Florida’s home buying season is in full swing — Home-buyers-1and it’s shaping up to be one of the busiest ever.

Despite rapidly rising home prices and lingering inventory woes, homes from Parrish to Punta Gorda continue to change hands at the fastest clip on record, and most industry watchers don’t foresee it slowing any time soon.

The surging activity in February comes during the busiest time of the year for real estate in Florida, with snowbirds and vacationers in town, some scouting for homes.

Coupled with pent-up demand from the Great Recession, and restored stock wealth for many retirement buyers, the market is poised for another robust spring, area Realtors say.

“People are able to sell their homes up north and plan retirement,” said Gloria Weed, branch manager of Michael Saunders & Co.’s office in Lakewood Ranch. “I have lived here for 30 years, and I have just never seen so many people here during season. Just look at the traffic.”

“The more people who’re here, the more who like, the more who decide they want to live here and buy homes here,” Weed said.

  • Agents sold 1,875 existing homes and condominiums during February in Sarasota, Manatee and Charlotte counties, according to figures released Monday from the industry trade group Florida Realtors.

That was up 12.8 percent from a steady January and 8.8 percent ahead of the same time in 2014, which finished as the best year for real estate activity in history.

Because housing contracts typically take 30 to 60 days to close, these figures represent deals that were likely first inked in December or early January, the start of the region’s season.

Those existing sales also do not count new homes, which also are selling at post-recession bests.

“It’s the continued growth and exposure in other areas,” said Peter Crowley, broker and co-owner of Re/Max Alliance Group. “You couple that with miserable winters up North, and I just believe we’re the beneficiary. The buyer demand continues to be very strong.”

Rising prices

That swelling demand has pushed the median price for a single-family home in the North Port-Bradenton-Sarasota area up 12.5 percent over the year to $225,000 in February. The median is the midpoint: half the homes sold for more, half for less.

Of the Florida metropolitan areas where home data is tracked, only Port St. Lucie, Jacksonville and Lakeland saw their single-family housing prices climb faster.

Condominium prices in this region similarly rose by 6.8 percent of the year to a $175,000 February median.

The recent price gains have sparked fears of housing affordability for working- class families, with average rents similarly growing at historic levels, while worker wages generally have remained stagnant.

The Federal Reserve also is expected to ease its bond buying strategy this year and raise interest rates, which could begin to impact the cost of mortgages, which have remained a key selling point.

The average fixed interest rate for a 30-year, conventional mortgage in February rose slightly to 3.71 percent, but still remains historically low, according to Freddie Mac.

Some analysts remain skeptical on the industry’s future. They point to lingering foreclosures, investor impacts, tight financing availability and poor wages.

Some also question whether there is enough full-time owner occupiers to support the market’s sustained recovery. “There’s a tremendous amount of hype in the marketplace,” said Jack Mc-Cabe, a Florida real estate consultant. “We all know what happened the last time we saw this. I think we’re in a transition stage, and I really believe we will be back to a buyer’s market by the end of the year.”

The bigger picture

The sales trend was similar across the Sunshine State, where Realtors sold 26,961 existing homes in February, up 15.3 percent from January and a 15.2 percent increase from the same time last year.

The statewide price for a single-family home reached a February median of $179,995, up about 9 percent over the year, according to Florida Realtors.

Across the country, home sales improved as inventory shortages pushed price growth to its fastest pace in a year.

  • Existing home sales rose 1.2 percent from January to a seasonally adjusted annual rate of 4.88 million in February, which was also 4.7 percent higher than a year ago — the fifth consecutive month of annual gains, according to data released Monday by the National Association of Realtors.

The median home price last month also jumped nearly 8 percent to $202,600, the largest national increase since February 2013.

Those improvements were driven largely by a stock of existing homes for sales that remains below a year ago at a 4.6-month supply, which measures the time it would take to deplete the inventory at the current sales pace if no new homes were added to the market.

“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels,” NAR Chief Economist Lawrence Yun said in a statement. “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.”

“With all indications pointing to a rate increase from the Federal Reserve this year — perhaps as early as this summer — affordability concerns could heighten as home prices and rents both continue to exceed wages.”

“It’s the continued growth and exposure in other areas. You couple that with miserable winters up North, and I just believe we’re the beneficiary. The buyer demand continues to be very strong.”

– Peter Crowley, broker and co-owner of Re/Max Alliance Group

Herald Tribune 3/24/2015

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

CitySide – Downtown Sarasota New Developments

January 14, 2015 by

Construction on CitySide Apartments to begin in April

cityside_downtown_sarasotaSarasota’s Rosemary District – Urban Contemporary Architecture

Rosalyne Holdings, headed by Bruce Weiner of Longboat Key, is developing the project with Ascentia Development Group (ADG) and expects to have a building permit by March.

CitySide is a four-story complex designed with urban contemporary architecture. Phase 1 will offer 228 units on the northeast corner of Boulevard of the Arts and Cocoanut Avenue. Phase 2 will have about 250 units directly across May Lane from Phase 1.

“CitySide will address the growing demand for rentals in or near downtown Sarasota,” said Weiner.” It will also bring new vitality to the area, while maintaining the rich culture that makes the 128-year-old Rosemary District so unique.

The Rosemary District is a quiet area, awaiting development and revitalization to help reach its potential. It’s a part of Sarasota’s urban appeal, just north of Fruitville. With ample land available and the district in close proximity to core downtown amenities, industry experts say the Rosemary District area is ripe for a transformation. A surging interest to build in the Rosemary District has officials confident the density boost will help make developments there more economically viable.

The ongoing plans to revamp the Rosemary District come a midst a rising real estate market, which has pushed demand for condos and rental apartments to near decade highs.

Rents are expected to range from $1,000 to $2,000 a month and designed to meet the needs of a growing professional population seeking Sarasota’s downtown urban appeal. CitySide residences will have one and two bedroom options, along with two bedroom, plus den floor plans. Residences will range in size from 700 to 1,200 square feet.

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

Downtown Sarasota Developments – New Construction

December 17, 2014 by

Echelon on Palm – Downtown Sarasota New Construction

downtown-sarasota-by-nightDowntown Sarasota’s construction boom will continue well into 2015, the result of newly unveiled plans that include another luxury condominium tower and the first new office building in eight years.

In the larger of the two developments, the Ronto Group of Naples plans to build an 18-story condo tower between Gulf Stream and South Palm avenues, investing at least $20 million to compete in an increasingly crowded market for new residential units.

Veteran local developer Mark Kauffman, meanwhile, is preparing to construct a $4.7 million, four-story office building called Centerplex at Ringling Boulevard and Golf Street.

For Kauffman, whose properties include Courthouse Centre and the Hollywood 20/Main Plaza complex downtown, the offices become the latest in a series of new projects in or around downtown.

He already is building Payne Park Plaza, a $1.5 million office and retail development on South Washington Boulevard, near Morrill Street.

The three projects join a post-recession resurgence in downtown construction, with condos, hotels and retail space sprouting from the business district to the bayfront. Ronto Group plans 17 units on a one-third-acre site called Echelon on Palm, executive vice president and co-owner Anthony Solomon said Tuesday.

While a number of new condos are coming online downtown and on nearby barrier islands, Solomon says demand is sufficient for more. “The economy is doing a lot better,” he said. “People are looking for new design and new product, and it’s a good time to launch something.”

The company has purchased a parcel at 624 S. Palm, site of the La Palme Royale bed-and-breakfast, and in March will acquire another parcel at 621 Gulf Stream Ave.

Sixteen floors of the modern design building will contain a single unit, Solomon said, with just over 4,000 square feet of living area. One of the units will be a two-level townhouse on the first and second floors. Parking will be located on the first two floors.

Prices will range from $2.2 million to $4 million, he said, with an average of $3 million. Its penthouse will be the priciest of the units.

The company wants to pre sell at least half the residences before starting construction next summer. Build-out is scheduled to take about 16 months. A sales office will open at the site next month.

This is the first venture in Sarasota for Ronto, founded in 1967 by Jack Solomon and now co-managed with his son. The company has completed more than 10,000 high-rise units, 2,000 single-family homes, several shopping plazas and a hotel, according to its website.

“What attracted us to Sarasota is that it is very similar to Naples in demographics,” Anthony Solomon said. “The site and its views are amazing, and the location is incredible.”

But Echelon on Palm will join a growing field of new projects underway or planned around downtown. Among them: the $120 million Vue on the bayfront, with 141 condos and a 255 hotel rooms; the $31 million mixed-use One Palm Avenue, with 130 hotel rooms and 139 apartments; the $19 million Jewel on Main Street, with 18 units; and the $6 million “Q,” which contains 39 condos on Ringling Boulevard.

Kauffman has filed plans with the city for 30,000 square feet of office space at Ringling and Golf, which would become the first free-standing office project to open downtown since the Great Recession.

“They wanted new, and the locations are pretty incredible for both of them,” said Kauffman, who also developed the P.F. Chang’s China Bistro on Osprey Avenue downtown and redeveloped an office building at U.S. 41 and Siesta Drive housing Fleming’s Steakhouse.

The planned buildings come, however, as the market for new Class A office space remains soft and financing for new office projects remains elusive. During the third quarter, for example, the 2.5 million square feet of existing office space in downtown Sarasota had a 12 percent vacancy. In all of 2013, too, there was net absorption of just 17,532 square feet of office space downtown, according to figures compiled by the Economic Development Corp. of Sarasota County.

Commercial brokers say downtown landlords are now asking about $25 to $27 per square foot in gross rents. “The numbers don’t make sense yet,” said local commercial real estate broker Ian Black. “The market has to turn so that demand will exceed supply.”

Both the Echelon and the Centerplex projects are scheduled to go before Sarasota’s Development Review Committee Wednesday 12/17.

Payne Park Plaza on South Washington Boulevard would contain 8,300 square feet of office and retail space, as well, according to plans. Both commercial projects will be developed on a build-to-suit basis, with a bank occupying two floors in the Centerplex development and a financial firm committing to Payne Park Plaza.

HeraldTribune 12/16/2014

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

Sarasota Construction Projects – Sarasota Lifestyles

November 24, 2014 by

Downtown Sarasota Construction Projects – Development News

The Sarasota housing market continues toSarasota Bay View show signs of strength: In November, at least three housing projects totaling more than 400 units have emerged in neighborhoods near the heart of the Downtown Sarasota. Currently in various stages of development, the projects have the potential to leave a significant mark on the city’s landscape.

ROSEMARY DISTRICT
1401 Fruitville Road
With the Rosemary Residential Overlay District in place, a second developer is seeking to take advantage of the density bonuses created by the new regulations.

Framework Group LLC, a Tampa-based developer, is proposing a five-story, 228-unit apartment complex along Fruitville Road between Central Avenue and Lemon Avenue. With the project, called Sarasota Flats, the group said it hopes to appeal to a broadening market interested in highly amenitized luxury apartments.

The 3.05-acre site is located within the Rosemary Residential Overlay District, which allows for housing projects with a density of 75 units per acre — three times the previous cap. Philip Smith, president of Framework Group, said the incentive to develop in the area was a significant draw.

DOWNTOWN
711 S. Palm Ave.
On Wednesday, the developer behind a planned five-story development on south Palm Avenue appeared before the city’s Development Review Committee.

The condominium complex would replace a single-family residential home at 711 S. Palm Ave., subject to demolition approval.

With 15 units across four residential stories, the development was geared more toward full-time residents., with a goal to attract the end user who will spend significant time here and live here rather than just spending a couple of weeks in Sarasota.

Although the project is in its early stages, concern is already brewing among adjacent property owners about how their sightlines might be affected if the building is not set further back from the sidewalk.

Seaward Development is currently working on plans to bring forward to the city as soon as next month, with a targeted construction date as early as next spring.

DOWNTOWN
1455 Second St.
A site plan has been in place for 1455 Second St. for six years, but the fate of the project has regularly been in question.

On Monday, the City Commission may have helped keep the project afloat, allowing the developer to forgo required payments to an Affordable Housing and Transit Development Fund.

The site plan, approved under the now-expired Downtown Residential Overlay District, calls for a 10-story building with 168 residential units and 16,400 square feet of retail space on the 0.84-acre parcel. Earlier this year, property owner Jesse Biter said he was uncertain whether he could move forward with his plans without another partner coming aboard.

Since then, Carter Acquisitions LLC has agreed to partner with Biter Enterprises in developing the project. Before an agreement is finalized, however, the group sought to avoid the payments to the housing and transit funds as was stipulated following site-plan approval.

Since that approval, the plans have been modified so more than 130 of the apartments are 1,250 square feet or smaller. Bill Merrill, who represented Carter Acquisitions at Monday’s meeting, said the intent of the DROD regulations was to create smaller, more attainable housing units; the required payments to housing and transit were triggered by the number of units larger than 1,250 square feet.

Before the 3-2 vote to forgo the payment, Vice Mayor Susan Chapman questioned whether the smaller apartments qualified as attainable. Jerome Hagley, executive vice president with Carter Acquisitions, said one-bedroom units should range from $1,100 to $1,500, while two-bedroom apartments will be priced from $1,800 to $2,200.

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

Aria – Longboat Key Luxury

November 23, 2014 by

Luxury and Location – Escape to AriaAria-Longboat-Key

Located on renowned Longboat Key, the distinctive residences of Aria offer a nod to Sarasota’s renowned embrace of Art and Architecture. Five pristine acres will feature a private Gulf beach, unobstructed views in every direction, lush gardens and superior amenities. The gracious floor plans, of the 16 exclusive residences, boast private elevator entries, floor-to-ceiling windows, gulf and bay terraces, fine finishes, flowing indoor/outdoor spaces, security and private garages.

Thoughtful design of this project includes the preservation of the historic Villa am Meer Estate. The 1935 Villa am Meer Estate has been meticulously restored, retaining many of the original finishes, including beautiful handmade ceramic tile floors and intricate stained glass windows.

Features

  • Five-acre beachfront location, with 300-foot on the white sands of the Gulf of Mexico
  • Secured gated access with a high-tech monitoring system
  • Four distinctive open floor plans with private elevator access and 10′ ceilings
  • Grand gulf-front terraces with summer kitchens and bay terraces for endless sunrise and sunset views
  • Glass terrace railings and floor-to-ceiling stacking doors with corner openings create a transparent transition between indoor and outdoor living spaces
  • Historic Villa am Meer – A 1935 estate lovingly restored and recreated into a beachfront Residents’ Club with gathering room, private dining room, wine cellar, caterer’s kitchen, fully equipped guest suite, and covered terrace with fire pit
  • Elevated beachside spa and pool with sculptural overhead rain curtain
  • Poolside Cabanas – private seaside gathering rooms for entertaining or peaceful retreat
  • Private two and three car enclosed garages with owner storage
  • First living level Beach Villas with expanded terraces, direct walk-downs to a private 3-car garage, the pool and beach and fire tables – three with private infinity edge pools
  • A separate service elevator, accessed from the garage, allows for pets, and service access without direct residence access
  • The convenience and security of a resident caretaker
Filed Under: Sarasota Lifestyle, Sarasota New Construction, Sarasota Real Estate Market News Tagged With: , , ,

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: , , ,

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

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: , ,

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: , ,
« Previous Page
Next Page »