Coming to the Quay Sarasota

Another residential tower could be coming to the Quay Sarasota site along the bayfront.

On Wednesday, the city’s Development Review Committee reviewed plans for Bayso, an 18-story, 150-unit building slated for the south end of the property at U.S. 41 and Fruitville Road. Units in the building will range from 1,600 to 4,000 square feet, with prices starting at $800,000.

Bayso - The Quay Sarasota

City staff offered some technical feedback to the initial site plan at Wednesday’s meeting. Planning Director Steve Cover was mostly positive about the proposal and encouraged the developer to consider more ambitious designs for landscaping and screening the building’s parking garage.

“You really have an opportunity to do something spectacular here, since this is part of the main entrance to the Quay site,” Cover said.

The Kolter Group is the developer behind the Bayso project. The Kolter Group is responsible for another high-rise on the Quay site: The Ritz-Carlton Residences, an 18-story, 73-unit building on the waterfront north of The Ritz-Carlton, Sarasota. Kolter also developed The Mark, an 11-story mixed-use project at State Street and Lemon Avenue.

“We think we’re very well positioned in terms of size of our units and price point,” Kolter Urban Regional President Brian Van Slyke said.  “Some of our competition in Sarasota is offering larger units for sale, but we think we’ll be filling a need in a currently underserved market.”

In February, the city’s Planning Board approved plans for a 12-story building with 241 apartments and 12,750 square feet of ground floor retail on blocks two and three of the Quay site, which fronts U.S. 41 north of Fruitville Road.

Sarasota Observer June, 2020

Home Prices Up in 94 Percent of Major U.S. Markets

Homes Prices up for 2019Across the country, home prices remain on an uptrend, escalating in 94 percent of major metropolitan markets, according to the latest National Association of REALTORS® quarterly report, based on findings for the fourth quarter of 2019. In the fourth quarter, the existing-home median price was $274,900, a 6.6 percent gain year-over-year.

Buyers continue to lean on low mortgage rates, the report shows. In the final quarter of the year, household incomes rose to $79,740—an increase of roughly $2,650 year-over-year. At the same time, to afford a mortgage, NAR estimates home buyers needed $48,960, or about $3,940 less, year-over-year, due to lower mortgage payments. In the fourth quarter, the average 30-year fixed mortgage was 3.76 percent.

For first-time home buyers, affordability also expanded last quarter. To afford a mortgage, the average first-time home buyer needed $48,288, or approximately $575 less year-over-year, and their average monthly mortgage payment slid to $1,006, assuming a 10 percent down payment.

Still, housing options remain sparse. At the end of the fourth quarter, 1.4 million existing homes were on the market, an 8.5 percent deficit year-over-year, according to the report.

“We saw prices increase during every quarter of 2019 above wage growth,” explains Lawrence Yun, chief economist at NAR. “It is challenging—especially for those potential buyers—where we have a good economy, low interest rates and a soaring stock market, yet are finding very few homes available for sale.”

In the fourth quarter, appreciation climbed considerably in 18 major markets, including:

  • Trenton, N.J. – 18.2% year-over-year
  • Boise City-Nampa, Idaho – 13.7%
  • Gulfport-Biloxi, Miss. – 11.8%
  • Kingston, N.Y. – 11.2%
  • Albuquerque, N.M. – 11.1%

Meanwhile, the coasts continued their high-price streak, with the costliest homes in:

  • San Jose, Calif. – $1.25 million (-0.3% year-over-year)
  • San Francisco, Calif. – $999,000 (3.9%)
  • Anaheim-Santa Ana, Calif. – $828,000 (3.6%)
  • Urban Honolulu, Hawaii – $812,600 (0%)
  • San Diego, Calif. – $655,000 (4.6%)
  • Boulder, Colo. – $630,400 (6.4%)
  • Los Angeles-Long Beach, Calif. – $617,300 (7.2%)
  • Seattle-Tacoma, Wash. – $528,800 (8%)
  • Nassau County, N.Y. – $496,600 (3.7%)
  • Boston-Cambridge, Mass. – $482,800 (4.9%)

To afford these areas, a family has to make more than $100,000, assuming 5 percent down on a 30-year fixed mortgage, according to the report.

“Rising home values typically create wealth gains for existing homeowners as shown in NAR’s latest study,” says Yun. “However, areas that are deemed ‘too expensive’ will obviously have trouble attracting residents and companies looking to do business there. We need a good balance that benefits both current and future homeowners, but right now, the balance is still in favor of home sellers.”

Rismedia.com February 12, 2020

After Steady Declines in 2019, Luxury Home Prices are Stabilizing in Some U.S. Markets

luxury home pricesLuxury Home Price Report

According to Redfin, the average sale price for luxury homes in the U.S. rose 0.3 percent year-over-year to $1.6 million in the third quarter of 2019. Even though that’s essentially flat, it marks the first time luxury prices did not drop after three straight quarters of decline.

For this analysis, Redfin tracked home sales in more than 1,000 cities across the U.S. (not including New York City) and defines a home as luxury if it’s among the 5 percent most expensive homes sold in the quarter. In the other 95 percent of the market, home prices increased 3.6 percent annually to an average of $319,000 in the third quarter.

Sales of homes priced at or above $1.5 million rose 3.2 percent in the third quarter. The increase comes after three straight quarters of dipping sales in the luxury sector, including a 12 percent annual drop in the first quarter of 2019. Sales of homes priced below $1.5 million experienced a similar annual increase, with a 2.9 percent rise.

Supply of homes priced at or above $1.5 million rose 9.3 percent year-over-year in the third quarter, the sixth consecutive quarter of growth, albeit the smallest annual increase in a year.

The big increase in luxury supply was largely driven by a boost in the number of high-priced homes hitting the market. New listings priced at or above $1.5 million rose 6 percent year over year in the third quarter, while new listings of homes priced below $1.5 million dropped 4 percent.

“Because recession fears peaked over the summer, I expected luxury home prices and sales to dip. But it appears that nerves alone weren’t enough to scare off wealthy homebuyers,” said Redfin chief economist Daryl Fairweather. “The U.S. economy grew faster than expected in the third quarter, partly as a result of healthy consumer spending. Those results, along with flat luxury home prices and rising sales, go to show that Americans are basing their spending habits on their own personal financial situation rather than concerns about global economic tensions. For many, that means strong incomes and good employment prospects.”

Luxury U.S. housing market summary

Biggest luxury price gains

Luxury prices increased in more than two-thirds of the markets tracked by Redfin. West Palm Beach tops the list, with a 128.3 percent year-over-year increase to an average price of more than $3.7 million. It’s followed by two other cities in Florida: Clearwater (up 49.3% to $1.6 million) and Delray Beach (up 47.3% to $2.6 million).

West Palm Beach Redfin agent Elena Glatko said one driving force in the particularly large year-over-year price increase in West Palm Beach in the third quarter was dozens of sales in a new luxury condo building. Sale prices for individual units spanned from roughly $4 million to more than $12 million. Glatko also noted a few other factors that contribute to the area’s strong luxury market.

“Homebuyers can get a lot more for their money in West Palm Beach than in more expensive places like Miami and Palm Beach Island,” Glatko said. “And I’ve noticed that both luxury buyers and sellers feel that real estate is one of the assets least susceptible to economic changes. They believe that over time, luxury real estate is a better investment than the stock market.”

Biggest luxury price declines

Luxury home prices in Charleston, South Carolina declined 17.6 percent to an average of $1.6 million in the third quarter, a bigger drop than any other city. Next come Virginia Beach (down 7.6% to $1 million) and Reno (down 6.9% to about $1.5 million).

Luxury prices also declined in San Diego (down 4% to about $2.6 million), Miami (down 3.8% to about $2 million), San Jose (down 3.2% to about $2.3 million) and Scottsdale (down 1.5% to about $2 million).

“There’s been less activity in the luxury market in Miami over the last few years, and now it’s definitely shifting toward buyer’s favor,” said local Redfin agent Jessica Johnson. “Sellers in the area can’t get away with overpricing their home because buyers are less willing to overpay when they know luxury prices aren’t increasing in Miami–if they can’t get a good deal on one particular luxury home, they can probably go down the street or to another neighborhood and find a seller who is willing to negotiate with them.”

 

World Property Journal November, 2019

The Quay Sarasota Project – Potential to Shift the Epicenter of Downtown Sarasota

Quay Sarasota ProjectWith nearly 700 high-end residences and more than 200,000 square feet of commercial, retail and restaurant space spread over 15 acres, the Quay Sarasota project has the potential to shift the very epicenter of downtown Sarasota.

In addition to the roughly $1 billion investment master developer GreenPointe Holdings anticipates, the Quay property also benefits from pending upgrades to a 52-acre, municipally owned site adjacent to it.

The 52-acre “The Bay” project also is likely only to enhance, rather than compete, with GreenPointe’s offerings. That’s because city leaders and planners have mandated that the property be devoid of commercial space and condos and be improved with open space and event-driven amenities.

Taken together, the Quay and the Bay could easily alter where tourists and residents alike dine, congregate, shop and play when each reach critical build out a decade from now.

But Edward Burr, GreenPointe’s president and CEO, believes that even after the Quay’s six planned towers, embedded retail and restaurants and connected entertainment space are completed, the project won’t compete directly with the city’s historic downtown that was created in the 1920s.

“I view the Quay Sarasota as merely an extension of the city’s downtown,” says Burr. “I don’t see it shifting the focus of downtown; I expect it will simply complement what’s there, the existing entertainment and restaurants.

To date, two vertical developments have been announced for Quay Sarasota: a luxury, 73-unit condo tower being developed by The Kolter Group, and a 241-unit apartment tower by a division of homebuilder Lennar Corp.

The 18-story Ritz-Carlton Residences, where some units are being marketed for as much as $8 million, is under construction now and is slated for delivery late next year.

Lennar Multifamily’s planned 11-story apartment complex has yet to be formally approved by city officials. The $150 million project, which is slated to break ground sometime in the second quarter of next year, will require about 24 months to build, Burr says.

Like Water Street Tampa, the $3 billion project in Tampa that will encompass 53 acres in that city’s downtown and Westshore Marina District between St. Petersburg and Tampa, another 52-acre, mixed-use development that will be a ground-up neighborhood of high-end residences, shops, restaurants and amenities, Quay Sarasota could transform the urban core of Sarasota through critical mass alone.

The associated commercial space also is expected to have a profound impact. GreenPointe has retained commercial real estate brokerage firm The Shopping Center Group to oversee Quay leasing.

Burr says he expects the next ground-up development, following the Ritz-Carlton Residences and the Lennar apartments, will either be a “condo project with a higher-end price point or a hotel, or both.”

Quay Sarasota is entitled for a 175-room hotel. That component likely wouldn’t debut until the close of 2022 or the first half of 2023, he says. The bulk of the Quay development is expected to be completed by the end of 2025, Burr believes.

And even as the vertical projects progress, other development is slated to occur on the site, which is adjacent to a 266-room Ritz-Carlton Sarasota hotel.

GreenPointe has pledged to install a marina and a one-acre park within the project, and state transportation officials are planning a traffic calming roundabout at North Tamiami Trail and Fruitville Road, at the Quay’s entrance. It is scheduled to be completed by the end of next year.

An internal main street, Quay Commons, is on tap to be ready by the first quarter of 2021, as well.

Although Quay Sarasota is perhaps GreenPointe’s most urban project at present, it isn’t the Jacksonville-based company’s only Gulf Coast endeavor.

In Tampa, GreenPointe is developing Triple Creek, a 990-acre master-planned community with more than 2,000 homesites, and Belmont, a 930-acre community with more than 2,000 residences and 180,000 square feet of commercial space.

In Lakeland, the company is building Bridgewater, a 700-acre tract slated for more than 860 homesites and commercial space.

And in Fort Myers, GreenPointe is working on Hampton Lakes, a 413-acre project planned for more than 400 homes and River Hall, a 1,500-acre property scheduled to contain roughly 2,000 homes.

“Our core competency is developing communities with a sense of place,” says Burr. “We work hard to balance the economic realities of a place with the demands of that particular marketplace.”

Business Observer October 25, 2019

Sarasota-Manatee Foreclosure Rates On the Rise

foreclosure ratesForeclosure rate rises 23% in Sarasota and Manatee counties.

More Southwest Florida homeowners are struggling to pay their mortgages.

The number of residential properties with a foreclosure filing rose 23% as of mid-year in the Sarasota-Manatee region, according to a new report from real estate researcher ATTOM Data Solutions.

While foreclosures nationwide were down during the first half of 2019, the local increase was not that unusual. Foreclosure starts were higher in four out of 10 metros across the country. A total of 1,277 residential properties, or one in every 327 homes in the Sarasota-Manatee area, were in some stage of distress. That represents 0.31% of the housing units in the region.

But those filings – default notices, scheduled auctions and bank repossessions – are nearly 90% off their peak levels reached in 2008-2010 during the depths of the housing crash.

Florida posted the nation’s fourth-highest foreclosure rate at 0.39%, with the year-over-year increase the second highest in the U.S. The national foreclosure rate was 0.22%.

“Our mid-year 2019 foreclosure activity helps to show an overall view on how foreclosure activity is trending downward,” said Todd Teta, chief product officer at ATTOM. “Of course, you still have pockets across the nation where foreclosure activity is seeing some flare-ups. Foreclosure starts is a good indication of markets to watch. For instance, in looking at the largest markets across the nation with the greatest annual increase in foreclosure starts, four out of the five markets were in Florida.”

Charlotte County reported 379 filings, or one in every 271 housing units. That was 19% higher than the year before.

Last year foreclosure activity in Sarasota-Manatee receded to its lowest level since 2006, and has now held for several years at what analysts consider a normal volume of troubled homeowners. Filings have tumbled from the days when the region posted one of the top foreclosure rates in the nation.

Florida reported the third-longest average foreclosure timelines, from filing to completion, at 1,073 days. The national average was 716 days.

Fifth Third boosts pay

Fifth Third Bancorp is bumping the minimum wage it pays to employees to $18 per hour.

An estimated 4,900 workers will get the $3 hourly raise starting Oct. 28. Fifth Third, the sixth-largest bank in the Sarasota-Manatee metro area, said the increase recognizes the contributions of employees in driving the success of the bank and its customers.

“A competitive compensation and benefits package is essential to our ability to attract and retain the industry’s best and brightest,” said chairman/president/CEO Greg D. Carmichael.

The raise will bring those workers about $500 more per month on a pre-tax basis. It will cost the bank about $15 million a year.

The Cincinnati-based bank raised its minimum wage from $12 to $15 in January 2018, which it says contributed to a 16% annual reduction in employee turnover last year among workers most affected by that wage. The higher wage primarily impacts employees in retail branches and operations support functions such as customer contact centers. It will not be paid to employees who work on a commissioned basis, whose earnings typically run above $18 per hour.

Herald-Tribune August 2019

Sarasota Home Prices Near Pre-Recession Peaks

Sarasota Home PricesAfter wild swings before and after the economic downturn, home prices are inching closer to their pre-recession peaks in the Sarasota-Manatee County region.

Single-family homes and condominiums sold for a median $260,000 in the two-county area during the second quarter of 2019, a 4% increase over the year, according to a new report from real estate researcher ATTOM Data Solutions.

That price is just 3% off the pre-recession median high of $267,500 set in late 2005, just before the housing bubble burst. The Sarasota-Manatee area is one of 31 metro areas among the 108 largest in the U.S. where home prices still fall short of their pre-bust pinnacles.

That’s no surprise, given how deeply local home prices plunged during the downturn. The median price hit bottom at $127,000 in early 2011, a 53% dive from the peak, ATTOM’s report shows.

After the recession, local prices rebounded to double-digit annual gains, but those have slowed in recent years.

“In the general housing market, all indices have been pointing to modest appreciation in accordance with historical norms of 3% to 5%, but not the accelerated rates we have experienced since 2012,” said Robert Goldman, an agent with Michael Saunders & Co. in Venice. “If sellers failed to recognize this shift, then a tug of war of sorts would arise, wherein it would take longer, on average, to sell a home, the spread between final sold price and original list price would widen, and inventory would increase with the potential for stagnant pricing. There appears to be a growing body of evidence for this.”

Asking and selling prices are in a state of flux here, he said. Single-family homes are selling at 89% of original list price and condos at 90%, less than the customary 92% to 93%. Residential sales that used to take 60 to 75 days to close now need 90 days.

“All in all, barring unforeseen events, we should settle into a neutral market, with modest and sustainable appreciation, provided sellers have realistic expectations, in alignment with where the market is, rather than where one wishes it to be,” Goldman said.

Sarasota-Manatee homeowners are holding on to their properties longer, an average of 8.25 years before selling. That compares with two to three years during the frenzied buying-and-selling before the housing crash.

Those homeowners who sold in the second quarter realize an average price gain of $63,198, or 32.1% from their original purchase price. That was 5% higher over the year.

Nationwide, home and condo sales rose nearly 11% over the quarter and 6.4% annually to a median $266,000 — a new price peak. Homeownership also hit a new high at an average 8.09 years.

“As warmer weather brings a rush of house hunters to the market, the latest spike in median home prices marked the largest quarterly increase since the second quarter of 2015 and the third-biggest increase since the market started climbing out of the Great Recession in 2012,” said Todd Teta, chief product officer at ATTOM.

In Sarasota-Manatee, cash buyers are still major players. They accounted for nearly 43% of all home and condo sales during the April-June period, the eighth-highest ratio among the U.S. metros studied. Nationwide, cash sales were down to a 25% share.

Sarasota Herald Tribune July 18, 2019

Retirement Options – What’s Your Strategy?

retirementSarasota
Recently Recognized by TopRetirments.com as one of the best places to retire in the U.S.  Sarasota, FL.
Some consider this thriving city midway down the Gulf Coast to be the cultural capital of Florida, after Miami. Sarasota has a great downtown with many interesting neighborhoods. An impressive array of cultural facilities is available in Sarasota. Barrier islands like Siesta offer great beaches and developments where retirees can put their feet up.

Retirement Strategy
One of the most important aspects of retirement planning is making housing plans. The reality is that you need a place to live in retirement and there are a lot of different options. Furthermore, even if you decide to just keep the status quo and age in place, there are a lot of factors to consider.

The home is often a retiree’s largest asset, with the median wealth in homes for a 65-year-old couple at $192,552, according to the U.S. Census data. This represents about two-thirds of the median retiree’s assets. Furthermore, the home comes with a cost, which is often the largest expense for retirees at nearly $20,000 a year. So let’s look at 10 different retirement housing options, ranging from aging in place all the way through nursing home care at the end of life.

Aging in place
What is it: Roughly 83% of retiree homeowners want to stay in their current home for as long as possible.

Pro: The homeowner gets to keep consistency in their life. They know their house, understand the costs associated with it, have an emotional attachment to it, and know the surrounding area. In many cases this can be the most enjoyable and stress-free way to live in retirement.

Con: Often retirees have outgrown their current homes. Perhaps they raised a few kids and have a lot of extra maintenance, rooms and costs associated with keeping up the house. While it might work early in retirement, it could become a burden as they age. The current home also might not be friendly for aging in place. The home could have too many stairs, not a lot of senior amenities, and be far away from senior services like health care.

Home sharing
What is it: For some homeowners, the desire to age in place is there, but the finances just don’t make sense, especially if the person is single. So one option is to take on a roommate. Home sharing is mostly engaged in by women in retirement, with over 4 million senior women sharing a home with at least two other women. There are home-sharing services that help pair up homeowners with potential roommates, both from a financial and compatibility standpoint.

Pro: Home sharing can be a great way for a homeowner to age in place, add companionship to their life, and improve their finances. The homeowner is able to charge rent and likely split utilities, which can add much-needed cash flow. Additionally, it allows the homeowner to have someone else live with them who is in a similar stage of life.

Con: Not everyone wants to share their home with a stranger or another person. Furthermore, the decision to bring someone into your home carries a bunch of risks. For one, you might not get along. Additionally, there can be a lot of headaches from renting a room if the renter is unable to meet their payments. It can be hard to evict a person, especially a senior.

Relocating/downsizing
What is it: When you are working, living close to work is important for many people. However, once you retire, that need is gone. All of a sudden, location desires change. Additionally, the house you were living in might no longer fit your needs, so relocating to a better fit can make sense.

Pro: Relocating can help free up home equity and reduce expenses if the homeowner downsizes. It is also possible to move to an area with a lower cost of living or to a state that has lower taxes. Additionally, a benefit of relocating in retirement can be to move closer to family or to improve one’s quality of life by moving to warmer weather or closer to recreational activities.

Con: Relocating means getting used to a new area and home. Moving always has costs associated with it also, whether it is hiring movers, closing costs or just travel costs. Lastly, if the decision to relocate eventually does not work, it is very hard to undo.

Renting
What is it: If you are already renting this would be the status quo. However, for homeowners, one option is to sell the home and rent. In some cases, you can engage in a sale-leaseback agreement and sell your current home and continue to rent it back. In other cases, you can sell and move to a new rental location.

Pro: By selling and renting, you can free up home equity for other needs and possibly reduce your expenses. Renting also provides more flexibility in that you can move more freely than if you owned. Additionally, renting can take some of the home upkeep and maintenance off the table. This can be very valuable to seniors as they age. While it might have been enjoyable to mow the lawn and take care of the property at an earlier age, as one ages it can become difficult and expensive to hire out, so renting can be a way of controlling the costs of living.

Con: One of the biggest downsides of renting is just that most homeowners don’t want to do it. A survey of retirement age homeowners found that only 5% wanted to sell their home and rent. For many Americans owning their home is part of the American dream, so renting just doesn’t fit their vision of a successful retirement, even if it is the best financial outcome for them.

Village concept
What is it: The Beacon Community near Boston is often credited as being the first official “village model,” but communities taking care of seniors together have been around forever. The village model is about allowing seniors to age in place in their homes but with the support they need. In many cases, the village model is set up similar to a homeowners association where dues are paid into the “village” or “community,” which in turns provides services like transportation, events and some basic care.

Pro: The village model can help reduce costs as seniors share services and costs with others needing similar assistance. By allowing seniors to age in place for longer, they can avoid having to move into more expensive senior housing like assisted living facilities before they need to.

Con: While there are a few hundred village models in the country, that is not a lot of options. For many seniors there is no village model option in their area. Additionally, services are limited, so the retiree might still need to move as their needs for services grows. Furthermore, there is a cost associated with the village model, so that could impact cash flow.

Age-restricted (active adult) communities
What is it: Generally in the United States, you cannot discriminate based on age, gender or race when it comes to housing options because of the Fair Housing Act of 1968. However, The Housing For Older Persons Act of 1995 allows for communities to restrict housing options to older individuals as long as certain parameters are followed. Essentially, there are two forms of age-restricted housing options. The first requires that at least 80% of the occupied units have at least one person who is 55 or older living in the home. The other type is a bit more restrictive as it requires all residents to be at least age 62, including both spouses.

Pro: One of the biggest benefits is companionship. Seniors decide to live near and around those going through a similar part of their life and retirement. The communities often provide a variety of services, clubhouses and recreational activities.

Con: There can be additional costs associated with living in such communities, so it is not always the cheapest housing option. Furthermore, with a 62-and-over community, adult children cannot move in if they don’t meet the age requirement. Additionally, for spouses with large age gaps, they can be prohibitive also.

Continuing care retirement communities
What is it: Continuing Care Retirement Communities (CCRCs) offer a continuum of care throughout retirement, often starting with independent living. Most of these communities require the senior to move in when they are in good health and can live independently. Over time, the senior can stay in the same community but receive different levels of care and senior housing, ranging from assisted living to long-term care to end-of-life care.

Pro: CCRCs allow a senior to age in place in the same community but receive services and long-term care as their needs change. This is also a way to control and, in some cases, prepay your long-term care costs. The communities also often provide food, transportation and recreational activities.

Con: The biggest concern with CCRCs is whether the entity will be able to fulfill its promises over time. CCRCs are typically for-profit businesses that can run out of money and go out of business. Additionally, many require down payments in the hundreds of thousands of dollars. So, if the entity goes bankrupt, seniors could lose these down payments.

Assisted living
What is it: Assisted living offers a combination of housing and care services. Typically when someone moves into an assisted living facility they need help with some activities of daily living and are in the early stages of needing long-term care services. However, the person can still live mostly independently.

Pro: For many, assisted living facilities offer the care required to maintain a standard of living desired by the senior. They could need some help with bathing, dressing, mobility or cooking.

Con: Cost. According to 2018 numbers in Genworth’s Cost of Care Study, the average assisted living cost is roughly $48,000 a year. Furthermore, Genworth predicts that this cost will balloon to roughly $86,000 a year by 2038. Additionally, it can be hard to choose the right facility. Plan ahead to determine how you will pay for assisted living and the type of facility and care that you want.

Nursing home
What is it: Nursing homes provide housing and full-time care for individuals needing significant levels of long-term assistance. Nursing home care is less about making a housing decision and more about receiving the level of care you need.

Pro: Care can be significant and help the person live a better lifestyle than they would if they tried to manage alone at home. Additionally, nursing homes can provide skilled care services that might be difficult for family members to provide or expensive to hire out for at home.

Con: Nursing home quality ranges significantly, and so does cost. Furthermore, most people do not look forward to or choose to move into a nursing home, but instead, it is typically driven out of necessity. According to Genworth, a private room in 2018 cost over $100,000 a year on average. Plans for how to fund your care should start well before retirement.

Charity
What is it: Charity housing can mean a few different things. First, there are charities and religious organizations that provide free or reduced-cost housing options for low-income seniors. Another form of charitable housing can come from family members. Many will take in relatives to help them out.

Pro: Charity is going to be in many cases the cheapest form of retiree housing. When it comes to family members taking in a senior, it can also be a great way to spend time with family.

Con: Most people do not want to rely on family members or charities for their housing or other needs. The desire for most people is to live independently. However, living with family and using charitable housing is a viable option for millions.

FloridaRealtors.org  June 12, 2019

Florida Is the Big Winner as the Wealthy Move Out of Northern States

Florida Wins the Wealthy Relocation

Roughly 5 million Americans move from one state to another annually and some states are clearly making out better than others.

Florida and South Carolina enjoyed the top economic gains, while Connecticut, New York and New Jersey faced some of the biggest financial drains, according to a Bloomberg analysis of state-to-state moves based on data from the Internal Revenue Service and the U.S. Census Bureau.

Connecticut lost the equivalent of 1.6% of its annual adjusted gross income, as the people who moved out of the Constitution State had an average income of $122,000, which was 26% higher than those migrating in. Moreover, “leavers” outnumbered “stayers” by a five-to-four margin.

Florida Big Winner

Bloomberg’s analysis included all 50 states and the nation’s capital to provide a fuller picture of aggregate income flows from migration. About 10% of the population moves annually, or about 35 million people, according to the Census Bureau. Most moves are within the same county.

Florida posted a net income influx of nearly 3% of the state’s adjusted gross income in 2016. South Carolina, Idaho and Oregon were also among the largest gainers in the interstate shuffle.

Bloomberg’s tally also included analysis by absolute net gain and loss of income.

New York’s annual net loss was the highest, with a net $8.4 billion leaving the state. Exiting incomes of $19.1 billion were replaced by people who brought in $10.7 billion less in income. Illinois and New Jersey were next with net outflows of $4.8 billion and $3.4 billion, respectively.

Those three states also had three of the four highest proportions of outbound versus inbound residents last year, according to the United Van Lines, the largest U.S. household goods mover.

Florida nets $17.2 billion from inbound moves vs outbound

Florida Wins Wealthy Relocation

Florida was the top financial magnet, reeling in $17.2 billion more than it lost, about seven times the amounts netted by each of the runner-ups Texas, Washington and South Carolina. The Sunshine State was the No. 1 recipient of the wealth exodus from 18 individual states — with New York, Illinois and New Jersey combining to contribute about $8 billion to Florida’s income base.

While long a haven for retirement, Florida’s effort to lure Wall Street executives has gained traction thanks to a provision in the federal tax law passed by the Trump administration that hits residents of high-tax states by putting a lower cap on state and local tax deductions.

Florida is also one of seven states that collect no income tax. The others are Alaska, Nevada, South Dakota, Texas, Washington and Wyoming. While New Hampshire and Tennessee don’t have a state income tax, they do collect taxes on dividends and income from investments.

Billionaire hedge fund manager David Tepper, once ranked as New Jersey’s richest resident, moved his main address and the headquarters of Appaloosa Management LP to Florida a few years ago. Real estate mogul Barry Sternlicht told employees of Starwood Capital Group that the firm’s headquarters will shift from Greenwich, Connecticut, to Miami Beach by 2021.

Florida Housing Report: Sales, Median Prices Rise in April

florida housing market

Florida’s housing market reported more sales, higher median prices and increased inventory (active listings) in April compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 26,992 last month, up 6.2% over April 2018.

“Still-low mortgage interest rates and a strong jobs outlook are positive trends for Florida’s housing market,” says 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “Another strong sign: New pending sales for existing single-family homes in April rose 4.4% year-over-year, while pending sales for existing condo-townhouse properties remained at about the same level (-0.8%) as April 2018.

“Buying or selling a home can be a complex process; however, working with a Realtor who understands local market conditions enables consumers to have an expert on their side.”

In April, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 88th consecutive month. The statewide median sales price for single-family existing homes was $259,470, up 2.6% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $194,050, up 2.1% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in March 2019 was $261,100, up 3.8% from the previous year; the national median existing condo price was $244,400. In California, the statewide median sales price for single-family existing homes in March was $565,880; in Massachusetts, it was $390,000; in Maryland, it was $285,000; and in New York, it was $270,000.

Looking at Florida’s condo-townhouse market in April, statewide closed sales totaled 11,817, up 3.2% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“April was easily the strongest month we’ve seen so far this year for home sales in the Sunshine State,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “Prior to April, single-family closed sales for 2019 were actually down year-over-year, but with April’s little surge (up 6.2%), sales in 2019 are now up by 1% compared to where we were through the first four months of 2018.

“The statewide inventory of active listings continued to rise on a year-over-year basis in April, but the rate of this growth continues to slow somewhat. As of the end of April, there were about 95,000 single-family homes listed in Florida’s MLSs (Multiple Listing Services) or 6.6% more than were listed at the same time last year. The total of active listings of condos and townhouses was closer to about 58,500, up 6.4% compared to last year.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.47 percent in April 2019, compared to the 4.14 percent averaged during the same month a year earlier.

FloridaRealtors.org May 21, 2019

Lemon Avenue Streetscape Project

The city is undertaking a seven-month effort to redesign a downtown Sarasota street and park.

Construction on a Lemon Avenue streetscape project is set to begin Monday, a process expected to continue through December as the city invests $3.5 million into redesigning the downtown road and a nearby park.

Lemon AvenueThe project will include the segment of Lemon Avenue between Main Street and Pineapple Avenue. Plans call for the installation of bricked streets and curbless sidewalks, mirroring the look of the Lemon Avenue mall to the north. City officials have called the project an opportunity to improve the pedestrian experience along the street.

During construction, the city will close two intersections to vehicular traffic for extended periods. The intersection of Lemon Avenue and Main Street is scheduled to be closed from mid-June to mid-July, and the intersection of Lemon Avenue and State Street is scheduled to be closed from August to September. In a newsletter, the city said the project timeline is tentative and subject to change.

‘The Lemon Avenue Streetscape project is led by the City of Sarasota to make a more vibrant downtown. Streetscape improvements will stretch from the existing Lemon Ave. mall to Pineapple Avenue and will include replacing the asphalt street with brick pavers, removing the curbs to create a more open, pedestrian-friendly experience and transforming the public area surrounding Paul Thorpe Jr. Park into an attractive, welcoming space.”

Partners

Jon F. Swift Construction is recognized as one of the area’s leading commercial contractors, serving Sarasota and Manatee County public and private sector clients for nearly 40 years.

David W. Johnston Landscape Architects (DWJA) has extensive local experience in planning and implementing streetscape/landscape projects.

Infrastructure Solution Services (ISS) provides consulting engineering services to the Southeastern United States, focusing on Florida.

More information on the Lemon Avenue project is available on a city website.The city intends to provide updates on the project every two weeks once construction begins.

Observer May 8, 2019