By ELYSA BATISTA
Thursday, November 8, 2007
It’s all about portability.
At least that’s the case for some Golden Gate and Estates residents, as the January property tax reform amendment vote gets closer.
More than 20 residents turned out for a tax information meeting Wednesday at the Golden Gate Community Center.
The main event was a presentation by Collier County Appraiser Abe Skinner and his staff on the possible effects of a proposed property tax reform amendment on Collier County homeowners.
And residents wanted clarification.
“I thought I understood the amendment,” said resident Rob Stoneburner, 38, of why he attended Wednesday’s meeting. “I just wanted to come in and see what they (county officials) had to say, about how they thought it (the amendment) was going to affect our county and other counties in the state.”
After Skinner made a brief explanation of how the Property Appraisers office works, county staff began the task of explaining the ins and outs of the state’s proposed tax amendment that is going to the voters on Jan. 29.
The proposed amendment would keep the 3 percent Save Our Homes cap, also known as SOH, double the homestead exemption from $25,000 to $50,000 and provide portability of Save Our Homes throughout the state.
The plan would also let homeowners take their Save Our Homes savings with them when they move within Florida, which under current law they lose — leaving many trapped in their current home instead of dealing with a higher property tax bill.
Under the proposal before votes, homeowners who want to buy a more expensive home would be allowed them to take all the SOH tax savings with them.
If a homeowner wants to buy a less expensive house than the one they currently own, the plan would allow them to take a percentage of their Save Our Homes exemption compared with the new home’s market value.
The portability proposal was good news for Rick Haylock, 47.
“I’m going to have to vote for it (the amendment) because of the portability,” said Haylock, an eight-year Golden Gate resident. “The rest of it doesn’t affect me, but the portability does. Right now you can’t sell and you can’t buy. You can’t do anything.”
For business properties the proposed plan provides a $25,000 exemption for business tangible personal property. The exemption would eliminate the need for about 1 million business owners to file.
A cap on tax assessment increases to a maximum of 10 percent a year for non-homestead residential and other non-residential real estate property is also part of the proposal.
But there’s a catch for the 10 percent cap.
Non-residential/non-homestead property owners would have to apply for the cap, just like they do for their homesteaded counterparts.
Another hitch is that both the additional $25,000 SOH exemption and the proposed 10 percent cap for non-residential/non-homestead properties won’t be taken into account by school districts when they do their tax bills.
As for tax breaks for first-time home buyers, elderly homeowners or affordable housing, none are being offered in the proposal.
After the meeting, hosted by the Golden Gate Estates Area Civic Association, Skinner said that even though the amendment is far from perfect he’s in favor of the proposal.
“I’m going to vote for it,” said Skinner, adding that portability was the tipping point for him.
He is concerned, however, with the 10 percent cap for non-residential/non-homestead properties.
“There’s going to be a lot of confusion about it,” said Skinner. “Because people would have to apply for the cap,”
The meeting did help Stoneburner get a better understanding of how the amendment would affect Collier.
And although he’s glad that portability was made part of the amendment, Stoneburner said he still has some doubts.
“I’ve been hoping for it (portability),” he said, adding that the thought of losing his SOH and facing a huge tax bill are the main reasons he hasn’t sold his house. “Portability is good, but there are a lot of things I’m concerned with.”
Stoneburner said he’s concerned about how other counties will fare if too many people take advantage of the portability, and if those seeking home ownership end up losing out because of the amendment.
“You rob Peter to pay Paul,” said Stoneburner. “Somebody is going to end up having to pay something in the end.”
Friday, November 9, 2007
Sunday, November 4, 2007
Naples Market Recovery Lead by Luxury Market
The first sign of a recovery in the Naples, Florida real estate market has shown itself. Pending Sales of residential properties listed above 2 million for the first 3 quarters of 2007 have exceeded the first 3 quarters of 2006:
Pending Sales 2mil+:
2006 = 250
2007 = 257
Gain = 3%
Volume = 900 million
Further analysis of median price for the market segment shows that it bottomed out in the 1st & 3rd quarters of 2005. With overall Naples inventory near 11,000, we may be looking at a market that will move from a buyer's market to a more balanced market in early 2008. Reported by Joe Ballarino, President & Founder, Amerivest Realty.
Posted by Amerivest Realty
Pending Sales 2mil+:
2006 = 250
2007 = 257
Gain = 3%
Volume = 900 million
Further analysis of median price for the market segment shows that it bottomed out in the 1st & 3rd quarters of 2005. With overall Naples inventory near 11,000, we may be looking at a market that will move from a buyer's market to a more balanced market in early 2008. Reported by Joe Ballarino, President & Founder, Amerivest Realty.
Posted by Amerivest Realty
Wednesday, October 31, 2007
Real estate experts believe portability approval may help market.
By Laura Layden
Tuesday, October 30, 2007
Local Realtors watched and waited on the sidelines as Florida legislators debated ways to lower property taxes.
Now that state lawmakers have agreed on a plan that includes Save Our Homes portability, agents say the local market could get a much-needed boost.
“I believe the portability portion of that initiative is likely to be a positive stimulus for local buyers to move up, move down, move around,” said Jim Scartz, president of the Bonita Springs-Estero Association of Realtors.
Save Our Homes caps annual assessment increases at 3 percent on properties with homestead exemptions. But it has left some homeowners feeling trapped because they can’t take their savings with them if they move. If they’re not moving, they’re not selling, and they’re not buying.
The plan legislators approved late Monday would allow homeowners with the Save Our Homes cap to take up to $500,000 in savings with them when moving to a more expensive home within Florida. Even homeowners moving to a less-expensive home could take a percentage of their savings with them.
Voters still must approve the plan on Jan. 29. But if it gets a thumbs up, it would be retroactive to buyers who purchased homes this year.
“I believe there are some families and buyers that were waiting for this initiative. There is pent-up buying power that is local,” said Scartz, a broker/manager with John R. Wood Realtors Inc. in Bonita Springs.
With lower interest rates and asking prices, portability could be the “last piece of the puzzle for local buyers,” he said.
The plan comes as Collier County continues to see a decline in prices and sales. A report by the Naples Area Board of Realtors shows the median home price in the third quarter fell to $375,000, down $15,000 from the previous quarter. There were 786 closed sales, down from 1,326 in the second quarter and 961 a year ago.
In Lee County, 327 existing single-family homes sold in September, down 53 percent from 693 a year ago, according to the Florida Association of Realtors. The median home price fell 11 percent to $231,600.
There is more than a three-year supply of homes on the market in both Naples and Fort Myers.
The property tax plan approved by legislators also would double the state’s $25,000 homestead exemption and cap assessment increases on commercial buildings, vacation homes and investment properties to 10 percent a year.
“If you pull one item out, then it doesn’t work as well as when it is combined with all of the other pieces,” said “JJ” Jones, president of the Realtors Association of Greater Fort Myers and the Beach.
With the doubling of the homestead exemption, homeowners in Lee and Collier counties are expected to save anywhere from $130 to $140 a year in taxes.
There seems to be universal agreement by real estate agents and builders that portability is the most important part of the plan. Many, however, feel that more needs to be done to reduce homeowner costs and get the real estate market back on track.
“This will absolutely give some relief. But it’s not a true solution to the problem,” said Michael Reitmann, executive vice president of the Lee Building Industry Association.
He noted that lawmakers have yet to deal with the rising cost of homeowners insurance.
“We were very fortunate that we did not have a major hurricane. Otherwise, we would be in deep trouble, especially when it comes to insurance. We have just been spared.”
Brenda Talbert, executive vice president of the Collier Building Industry Association, called the plan a “good beginning.”
“I think everybody is expecting a lot more on tax reform to be meaningful,” she said. “But it’s daunting. There is so much involved with that. You don’t want to put the counties or state in an economic crisis at the same time.”
She said builders are concerned that they could see more local taxes and fees with the statewide cuts.
“Right now we feel we are being taxed to death,” Talbert said.
Kelly Lauman, general sales manager for Pulte Homes of Southwest Florida, said the plan is “definitely a step in the right direction.”
“At this point, any good news is positive for us,” she said.
Joe Ballarino, president and chief executive of Amerivest Realty in North Naples, didn’t favor allowing homeowners to take their entire Save Our Homes benefit with them when they moved.
He’s concerned about how that will hurt local governments.
“Any portability is better than none,” he said. “That’s for sure.”
He doesn’t expect to see much of an impact from the plan until voters approve it and he expects they will.
He said portability is “way overdue.”
“This will certainly improve any price softness we’ve had over the past two years,” he said. “This will help to bring back pricing because we will have more buyers in the marketplace.”
When demand is up, prices generally rise.
When people don’t move, the quality of real estate tends to go down because they aren’t continuing to invest in their homes as time goes on, Ballarino said.
“I like to see people moving on a regular basis. It keeps neighborhoods nice and the houses up to speed. It’s better for everybody,” he said.
Lee County Property Appraiser Ken Wilkinson, the father of the original Save Our Homes amendment, said he couldn’t be happier that portability has been included in the property tax plan. He’s glad to see that school taxes won’t be exempted from the ported savings, which could have cut the benefit by almost half.
“With the market becoming a buyers’ market, I would anticipate this will further encourage buyers,” Wilkinson said.
He said he’s going to be out promoting the proposal in hopes that it will pass on Jan. 29.
“I’m hopeful,” he said. “That is all you can do sometimes. Hope.”
Like others, he wants to see state lawmakers do more.
“I always have the belief that you get what you can when you can and you come back for more,” Wilkinson said.
Tuesday, October 30, 2007
Local Realtors watched and waited on the sidelines as Florida legislators debated ways to lower property taxes.
Now that state lawmakers have agreed on a plan that includes Save Our Homes portability, agents say the local market could get a much-needed boost.
“I believe the portability portion of that initiative is likely to be a positive stimulus for local buyers to move up, move down, move around,” said Jim Scartz, president of the Bonita Springs-Estero Association of Realtors.
Save Our Homes caps annual assessment increases at 3 percent on properties with homestead exemptions. But it has left some homeowners feeling trapped because they can’t take their savings with them if they move. If they’re not moving, they’re not selling, and they’re not buying.
The plan legislators approved late Monday would allow homeowners with the Save Our Homes cap to take up to $500,000 in savings with them when moving to a more expensive home within Florida. Even homeowners moving to a less-expensive home could take a percentage of their savings with them.
Voters still must approve the plan on Jan. 29. But if it gets a thumbs up, it would be retroactive to buyers who purchased homes this year.
“I believe there are some families and buyers that were waiting for this initiative. There is pent-up buying power that is local,” said Scartz, a broker/manager with John R. Wood Realtors Inc. in Bonita Springs.
With lower interest rates and asking prices, portability could be the “last piece of the puzzle for local buyers,” he said.
The plan comes as Collier County continues to see a decline in prices and sales. A report by the Naples Area Board of Realtors shows the median home price in the third quarter fell to $375,000, down $15,000 from the previous quarter. There were 786 closed sales, down from 1,326 in the second quarter and 961 a year ago.
In Lee County, 327 existing single-family homes sold in September, down 53 percent from 693 a year ago, according to the Florida Association of Realtors. The median home price fell 11 percent to $231,600.
There is more than a three-year supply of homes on the market in both Naples and Fort Myers.
The property tax plan approved by legislators also would double the state’s $25,000 homestead exemption and cap assessment increases on commercial buildings, vacation homes and investment properties to 10 percent a year.
“If you pull one item out, then it doesn’t work as well as when it is combined with all of the other pieces,” said “JJ” Jones, president of the Realtors Association of Greater Fort Myers and the Beach.
With the doubling of the homestead exemption, homeowners in Lee and Collier counties are expected to save anywhere from $130 to $140 a year in taxes.
There seems to be universal agreement by real estate agents and builders that portability is the most important part of the plan. Many, however, feel that more needs to be done to reduce homeowner costs and get the real estate market back on track.
“This will absolutely give some relief. But it’s not a true solution to the problem,” said Michael Reitmann, executive vice president of the Lee Building Industry Association.
He noted that lawmakers have yet to deal with the rising cost of homeowners insurance.
“We were very fortunate that we did not have a major hurricane. Otherwise, we would be in deep trouble, especially when it comes to insurance. We have just been spared.”
Brenda Talbert, executive vice president of the Collier Building Industry Association, called the plan a “good beginning.”
“I think everybody is expecting a lot more on tax reform to be meaningful,” she said. “But it’s daunting. There is so much involved with that. You don’t want to put the counties or state in an economic crisis at the same time.”
She said builders are concerned that they could see more local taxes and fees with the statewide cuts.
“Right now we feel we are being taxed to death,” Talbert said.
Kelly Lauman, general sales manager for Pulte Homes of Southwest Florida, said the plan is “definitely a step in the right direction.”
“At this point, any good news is positive for us,” she said.
Joe Ballarino, president and chief executive of Amerivest Realty in North Naples, didn’t favor allowing homeowners to take their entire Save Our Homes benefit with them when they moved.
He’s concerned about how that will hurt local governments.
“Any portability is better than none,” he said. “That’s for sure.”
He doesn’t expect to see much of an impact from the plan until voters approve it and he expects they will.
He said portability is “way overdue.”
“This will certainly improve any price softness we’ve had over the past two years,” he said. “This will help to bring back pricing because we will have more buyers in the marketplace.”
When demand is up, prices generally rise.
When people don’t move, the quality of real estate tends to go down because they aren’t continuing to invest in their homes as time goes on, Ballarino said.
“I like to see people moving on a regular basis. It keeps neighborhoods nice and the houses up to speed. It’s better for everybody,” he said.
Lee County Property Appraiser Ken Wilkinson, the father of the original Save Our Homes amendment, said he couldn’t be happier that portability has been included in the property tax plan. He’s glad to see that school taxes won’t be exempted from the ported savings, which could have cut the benefit by almost half.
“With the market becoming a buyers’ market, I would anticipate this will further encourage buyers,” Wilkinson said.
He said he’s going to be out promoting the proposal in hopes that it will pass on Jan. 29.
“I’m hopeful,” he said. “That is all you can do sometimes. Hope.”
Like others, he wants to see state lawmakers do more.
“I always have the belief that you get what you can when you can and you come back for more,” Wilkinson said.
Local finance officials unsure of portability impact
By MICHAEL PELTIER
Tuesday, October 30, 2007
TALLAHASSEE — Lawmakers’ work may be over but for local government officials, the number crunching has just begun.
A day after Florida lawmakers passed a proposed property tax reform package that backers say will save taxpayers $12.5 billion over the next five years, school, county and municipal finance officials are trying to decipher from which pocket those savings will come.
Officials will have to wait until Jan. 29 to see if voters sign off on a proposal to double the homestead exemption, expand Save Our Homes protections and place caps on non-homestead properties.
But the speculation already has begun, even by groups that support portions of the plan.
“The cumulative effect of these assessment caps, the millage rollback and caps already in place, and the added exemptions, may thwart the ability for counties to provide the services their citizens demand,” said Teresa Jacobs, Florida Association of Counties president, in a statement following the vote.
Government financial officers in Lee and Collier counties say it’s too early to tell what impact the proposal will have on local coffers. Further, school officials must rely on promises made by lawmakers not to harm school funding by replacing lost local revenue with state funds.
Meanwhile, Lee County Property Appraiser and Save Our Homes founder Ken Wilkinson said Tuesday the “official” numbers are nothing but smoke.
Allowing homeowners to take Save Our Homes with them would result in a real estate rebound and subsequent economic boom that would erase the effects on local governments and schools, proponents said.
“This is an economic stimulant the likes of which we’ve never seen,” Wilkinson said. “It couldn’t have come at a better time. Overall I think it will be a plus.”
The increased homestead exemption is pretty straightforward.
The plan calls for increasing the exemption to $50,000. The first $25,000 would apply to all local taxes. The second $25,000 exemption, however, would only be placed on non-school related property taxes.
For some communities in Southwest Florida, the homestead issue is less dramatic because a small percentage of properties have a homestead exemption, Marco Island City Manager Bill Moss said.
Moss estimated that 75 percent of property on Marco doesn’t qualify for a homestead exemption.
“The impact for both Marco Island and Naples is going to be less dramatic than in other parts of the state,” said Moss, who has been hired as city manager in Naples.
Portability is another issue.
The proposal allows homeowners to take their Save Our Homes benefits with them when they move. Those purchasing more expensive homes can take all of the benefits with them up to $500,000. Those homeowners who downsize can take a portion of their savings with them.
For example, a resident purchasing a more expensive home who now lives in a home valued at $300,000, but who pays taxes on $100,000, would deduct the $200,000 from a new home’s just value for tax purposes.
Homeowners wishing to downsize could take a portion of their current Save Our Homes benefits.
For instance, say an owner of a $500,000 home wants to purchase a $300,000 home. The owner’s current house is assessed under Save Our Homes at $250,000. Portability would require their new home to be assessed at three-fifths of its just value, or $150,000.
Combined with the homestead and a $25,000 exemption for tangible personal property, lawmakers estimate the changes would cost schools and local governments $12.5 billion over five years.
Included in that statewide figure, city and county government funding in Collier would drop by $182 million compared to collections if the changes weren’t in place. Lee County governments would see a $380 million drop.
But just how many homeowners will decide to move is up for interpretation.
Lawmakers said as much Monday during the debate, when numerous speakers said it was at best an educated guess that will depend on many factors outside their control.
Moss and others in local government say they have yet to crunch the numbers.
For local budget writers, portability remains the biggest question mark.
They not only lack data, but also the rationale under which the figures were arrived at. So far, they haven’t gotten either.
“Portability won’t be easily quantified,” said Lisa Roberson, director of finance for Bonita Springs.
School officials aren’t affected by the additional homestead exemption because it doesn’t apply to school taxes. Portability is of greater concern because it could potentially dip into future revenues.
State officials estimate that public schools statewide would see a $2 billion reduction in future revenues based on lower property taxes paid by homeowners who move but are protected by Save Our Homes.
Collier and Lee schools would see potential revenue cut by $85 million and $109 million, respectively, according to House estimates.
Bob Spencer, executive director of financial services for Collier County public schools, said educators must wait until spring to see if lawmakers follow through on promises to do no harm to public school funding.
Secondly, educators must determine what lawmakers meant when they said it.
“We have to wait for a definition of what ‘hold harmless’ means,” Spencer said. “Does it mean all components of the tax or just some of it? I don’t have the answers and I don’t think anyone else does either.”
Tuesday, October 30, 2007
TALLAHASSEE — Lawmakers’ work may be over but for local government officials, the number crunching has just begun.
A day after Florida lawmakers passed a proposed property tax reform package that backers say will save taxpayers $12.5 billion over the next five years, school, county and municipal finance officials are trying to decipher from which pocket those savings will come.
Officials will have to wait until Jan. 29 to see if voters sign off on a proposal to double the homestead exemption, expand Save Our Homes protections and place caps on non-homestead properties.
But the speculation already has begun, even by groups that support portions of the plan.
“The cumulative effect of these assessment caps, the millage rollback and caps already in place, and the added exemptions, may thwart the ability for counties to provide the services their citizens demand,” said Teresa Jacobs, Florida Association of Counties president, in a statement following the vote.
Government financial officers in Lee and Collier counties say it’s too early to tell what impact the proposal will have on local coffers. Further, school officials must rely on promises made by lawmakers not to harm school funding by replacing lost local revenue with state funds.
Meanwhile, Lee County Property Appraiser and Save Our Homes founder Ken Wilkinson said Tuesday the “official” numbers are nothing but smoke.
Allowing homeowners to take Save Our Homes with them would result in a real estate rebound and subsequent economic boom that would erase the effects on local governments and schools, proponents said.
“This is an economic stimulant the likes of which we’ve never seen,” Wilkinson said. “It couldn’t have come at a better time. Overall I think it will be a plus.”
The increased homestead exemption is pretty straightforward.
The plan calls for increasing the exemption to $50,000. The first $25,000 would apply to all local taxes. The second $25,000 exemption, however, would only be placed on non-school related property taxes.
For some communities in Southwest Florida, the homestead issue is less dramatic because a small percentage of properties have a homestead exemption, Marco Island City Manager Bill Moss said.
Moss estimated that 75 percent of property on Marco doesn’t qualify for a homestead exemption.
“The impact for both Marco Island and Naples is going to be less dramatic than in other parts of the state,” said Moss, who has been hired as city manager in Naples.
Portability is another issue.
The proposal allows homeowners to take their Save Our Homes benefits with them when they move. Those purchasing more expensive homes can take all of the benefits with them up to $500,000. Those homeowners who downsize can take a portion of their savings with them.
For example, a resident purchasing a more expensive home who now lives in a home valued at $300,000, but who pays taxes on $100,000, would deduct the $200,000 from a new home’s just value for tax purposes.
Homeowners wishing to downsize could take a portion of their current Save Our Homes benefits.
For instance, say an owner of a $500,000 home wants to purchase a $300,000 home. The owner’s current house is assessed under Save Our Homes at $250,000. Portability would require their new home to be assessed at three-fifths of its just value, or $150,000.
Combined with the homestead and a $25,000 exemption for tangible personal property, lawmakers estimate the changes would cost schools and local governments $12.5 billion over five years.
Included in that statewide figure, city and county government funding in Collier would drop by $182 million compared to collections if the changes weren’t in place. Lee County governments would see a $380 million drop.
But just how many homeowners will decide to move is up for interpretation.
Lawmakers said as much Monday during the debate, when numerous speakers said it was at best an educated guess that will depend on many factors outside their control.
Moss and others in local government say they have yet to crunch the numbers.
For local budget writers, portability remains the biggest question mark.
They not only lack data, but also the rationale under which the figures were arrived at. So far, they haven’t gotten either.
“Portability won’t be easily quantified,” said Lisa Roberson, director of finance for Bonita Springs.
School officials aren’t affected by the additional homestead exemption because it doesn’t apply to school taxes. Portability is of greater concern because it could potentially dip into future revenues.
State officials estimate that public schools statewide would see a $2 billion reduction in future revenues based on lower property taxes paid by homeowners who move but are protected by Save Our Homes.
Collier and Lee schools would see potential revenue cut by $85 million and $109 million, respectively, according to House estimates.
Bob Spencer, executive director of financial services for Collier County public schools, said educators must wait until spring to see if lawmakers follow through on promises to do no harm to public school funding.
Secondly, educators must determine what lawmakers meant when they said it.
“We have to wait for a definition of what ‘hold harmless’ means,” Spencer said. “Does it mean all components of the tax or just some of it? I don’t have the answers and I don’t think anyone else does either.”
Tuesday, October 30, 2007
Lawmakers pass property tax measure
By MICHAEL PELTIER
Monday, October 29, 2007
TALLAHASSEE — Responding to skyrocketing coastal property values and taxes, Florida lawmakers Monday passed a proposed constitutional amendment backers say would cut local property taxes by $12.5 billion over the next five years.
After 11 days of number crunching and posturing, House and Senate members agreed to double the state’s $25,000 homestead exemption and allow homeowners to take tax cap benefits with them when they move.
Further, lawmakers agreed to expand the tax cap concept by limiting assessment increases on commercial structures, vacation homes and investment property to 10 percent a year.
But in a late-filed counter proposal, the Senate stripped other House-backed provisions affecting low-income elderly residents, first-time home buyers and waterfront businesses.
The omissions prompted many to criticize the plan as an opportunity lost, but others saw the compromise measure as a glass half full.
Allowing homeowners to take their Save Our Homes savings with them, a concept known as portability, would help jump-start the real estate market, a major economic engine. Backers also pledged to continue reform efforts.
“Tax reform and relief is not over. We’re coming back next year and hopefully the year after that,” said Rep. Nick Thompson, R-Fort Myers. “We can always come back and address this issue. And I intend to and I hope you are too.”
Others, however, said the hit to schools and other scuttled provisions were a rallying cry for many who said the taxpayer benefits didn’t justify the cuts to schools.
“This is not even close to being good enough,” said House Democratic Leader Rep. Dan Gelber, D-Miami Beach.
Voters must approve any changes Jan. 29, when members of both parties also cast ballots in the state’s presidential primary election.
Citing polls and facing a requirement that any proposed constitutional amendment must be approved by 60 percent of voters, leaders said a more comprehensive package of savings wouldn’t pass. Instead, lawmakers accomplished what they could.
The plan increases the homestead exemption from $25,000 to $50,000. The additional exemption would not apply to taxes levied by public schools, which are required under another constitutional amendment to reduce class size.
Based on 2006 tax levies, Collier County homeowners would save an additional $140 a year. Lee County homeowners would annually save about $130.
Moreover, the proposal expands the popular Save Our Homes measure, allowing homeowners to take accrued savings with them if they purchase a new, more expensive home.
A homeowner whose current home is now worth $300,000 but is paying taxes on $200,000 because of Save Our Homes, can take that $100,000 cushion with them to lower their taxable value on their new home..
A person who buys a less expensive home will carry a portion of the tax savings with them.
Sen. Burt Saunders, R-Naples said the relief package comes at a critical time as the Florida real estate market suffers from stagnant housing stock and a foreclosure rate three times the national average. Allowing portability will help, but lawmakers must do more. “There will be other things coming down the pike in future legislatures, but this package is very good,” Saunders said.
The final Senate version removed benefits to first-time home buyers and a House-backed plan to base homestead exemption on a county’s median value home that would have provide more relief to Southwest Florida homeowners.
The portability provision by itself was enough for many lawmakers to support a plan that was much less aggressive than previous plans.
“The baby in this bathwater is portability and if we don’t deliver portability and some tax reforms to the citizens of Florida they’re going to be upset, because it’s what we need to jump-start this economy,” said Rep. Garrett Richter, R-Naples. “This is very mediocre, but it’s better than nothing.”
The tax package, which is expected to save homeowners $240 a year, would cost school districts more than $2 billion in lost revenue over the next five years.
Sen. Dave Aronberg, D-Greenacres, said the ability of homeowners to purchase new homes would help jump-start the real estate market and by doing so will further insulate schools from lost revenue.
“I think this bill will pay for itself,” Aronberg said.
Contact this correspondent at mpeltier1235@comcast.net.
Tax proposal Q&A
HOMESTEAD EXEMPTION
Q: How would the plan affect my homestead exemption?
A: The plan doubles the homestead exemption to $50,000. The second $25,000 exemption wouldn’t affect school tax collections.
Q: How much would I save?
A: Based on 2006 tax levies, Collier County homeowners would save an additional $140 a year. Lee County homeowners would save about $130 yearly.
Q: Are there additional benefits for a first-time homebuyer?
A: No
Q: Are there any additional benefits for low-income, elderly homeowners?
A: No
Q: Does the plan provide additional tax breaks for affordable housing?
A: No.
PORTABILITY
Q: Does the plan expand Save Our Homes?
A: Yes. The plan would allow homeowners to take their Save Our Homes with them when they move within Florida. For homeowners looking to purchase more expensive homes, the plan would allow them to take all the tax savings with them.
Q: What if I want to purchase a less expensive home?
A: The plan would allow you to take a portion of the Save Our Homes savings with you. The level of savings you could take with you would be based on the percentage of your current Save Our Homes savings compared with your home’s market value.
Q: I purchased a new home in April. Does the portability provision help me?
A: Yes, the proposal would be retroactive to Jan. 1, 2007.
Q: What does the proposal do for commercial property owners?
A: The proposal would cap tax assessment increases to a maximum of 10 percent a year.
Q: What does the proposal do for businesses?
A: The plan would provide a $25,000 exemption for tangible personal property. The exemption would eliminate the need for about 1 million business owners to file.
Q: I own a second home, what does the plan do for me?
A: The proposal caps assessments at a 10 percent increase a year.
A DONE DEAL?
Q: What happens next?
A: The proposal will be included on the ballot Jan. 29, when voters go to the polls in Florida’s presidential primary. To go into effect, the proposal must be approved by 60 percent of voters at the polls.
— Compiled by Correspondent Michael Peltier
Monday, October 29, 2007
TALLAHASSEE — Responding to skyrocketing coastal property values and taxes, Florida lawmakers Monday passed a proposed constitutional amendment backers say would cut local property taxes by $12.5 billion over the next five years.
After 11 days of number crunching and posturing, House and Senate members agreed to double the state’s $25,000 homestead exemption and allow homeowners to take tax cap benefits with them when they move.
Further, lawmakers agreed to expand the tax cap concept by limiting assessment increases on commercial structures, vacation homes and investment property to 10 percent a year.
But in a late-filed counter proposal, the Senate stripped other House-backed provisions affecting low-income elderly residents, first-time home buyers and waterfront businesses.
The omissions prompted many to criticize the plan as an opportunity lost, but others saw the compromise measure as a glass half full.
Allowing homeowners to take their Save Our Homes savings with them, a concept known as portability, would help jump-start the real estate market, a major economic engine. Backers also pledged to continue reform efforts.
“Tax reform and relief is not over. We’re coming back next year and hopefully the year after that,” said Rep. Nick Thompson, R-Fort Myers. “We can always come back and address this issue. And I intend to and I hope you are too.”
Others, however, said the hit to schools and other scuttled provisions were a rallying cry for many who said the taxpayer benefits didn’t justify the cuts to schools.
“This is not even close to being good enough,” said House Democratic Leader Rep. Dan Gelber, D-Miami Beach.
Voters must approve any changes Jan. 29, when members of both parties also cast ballots in the state’s presidential primary election.
Citing polls and facing a requirement that any proposed constitutional amendment must be approved by 60 percent of voters, leaders said a more comprehensive package of savings wouldn’t pass. Instead, lawmakers accomplished what they could.
The plan increases the homestead exemption from $25,000 to $50,000. The additional exemption would not apply to taxes levied by public schools, which are required under another constitutional amendment to reduce class size.
Based on 2006 tax levies, Collier County homeowners would save an additional $140 a year. Lee County homeowners would annually save about $130.
Moreover, the proposal expands the popular Save Our Homes measure, allowing homeowners to take accrued savings with them if they purchase a new, more expensive home.
A homeowner whose current home is now worth $300,000 but is paying taxes on $200,000 because of Save Our Homes, can take that $100,000 cushion with them to lower their taxable value on their new home..
A person who buys a less expensive home will carry a portion of the tax savings with them.
Sen. Burt Saunders, R-Naples said the relief package comes at a critical time as the Florida real estate market suffers from stagnant housing stock and a foreclosure rate three times the national average. Allowing portability will help, but lawmakers must do more. “There will be other things coming down the pike in future legislatures, but this package is very good,” Saunders said.
The final Senate version removed benefits to first-time home buyers and a House-backed plan to base homestead exemption on a county’s median value home that would have provide more relief to Southwest Florida homeowners.
The portability provision by itself was enough for many lawmakers to support a plan that was much less aggressive than previous plans.
“The baby in this bathwater is portability and if we don’t deliver portability and some tax reforms to the citizens of Florida they’re going to be upset, because it’s what we need to jump-start this economy,” said Rep. Garrett Richter, R-Naples. “This is very mediocre, but it’s better than nothing.”
The tax package, which is expected to save homeowners $240 a year, would cost school districts more than $2 billion in lost revenue over the next five years.
Sen. Dave Aronberg, D-Greenacres, said the ability of homeowners to purchase new homes would help jump-start the real estate market and by doing so will further insulate schools from lost revenue.
“I think this bill will pay for itself,” Aronberg said.
Contact this correspondent at mpeltier1235@comcast.net.
Tax proposal Q&A
HOMESTEAD EXEMPTION
Q: How would the plan affect my homestead exemption?
A: The plan doubles the homestead exemption to $50,000. The second $25,000 exemption wouldn’t affect school tax collections.
Q: How much would I save?
A: Based on 2006 tax levies, Collier County homeowners would save an additional $140 a year. Lee County homeowners would save about $130 yearly.
Q: Are there additional benefits for a first-time homebuyer?
A: No
Q: Are there any additional benefits for low-income, elderly homeowners?
A: No
Q: Does the plan provide additional tax breaks for affordable housing?
A: No.
PORTABILITY
Q: Does the plan expand Save Our Homes?
A: Yes. The plan would allow homeowners to take their Save Our Homes with them when they move within Florida. For homeowners looking to purchase more expensive homes, the plan would allow them to take all the tax savings with them.
Q: What if I want to purchase a less expensive home?
A: The plan would allow you to take a portion of the Save Our Homes savings with you. The level of savings you could take with you would be based on the percentage of your current Save Our Homes savings compared with your home’s market value.
Q: I purchased a new home in April. Does the portability provision help me?
A: Yes, the proposal would be retroactive to Jan. 1, 2007.
Q: What does the proposal do for commercial property owners?
A: The proposal would cap tax assessment increases to a maximum of 10 percent a year.
Q: What does the proposal do for businesses?
A: The plan would provide a $25,000 exemption for tangible personal property. The exemption would eliminate the need for about 1 million business owners to file.
Q: I own a second home, what does the plan do for me?
A: The proposal caps assessments at a 10 percent increase a year.
A DONE DEAL?
Q: What happens next?
A: The proposal will be included on the ballot Jan. 29, when voters go to the polls in Florida’s presidential primary. To go into effect, the proposal must be approved by 60 percent of voters at the polls.
— Compiled by Correspondent Michael Peltier
Tuesday, October 23, 2007
Here's the deal: "Buy Now!"
Campaign touts area’s amenities and value
By Karie Partington
Originally published — 4:18 p.m., October 20, 2007Updated — 10:08 p.m., October 20, 2007
A campaign being rolled out by area builders and developers encourages potential buyers to reinterpret the negative news they’ve been hearing about the local housing market.
Sliding prices? Affordability.
Record inventories? Broad selection.
The “Buy Now!” campaign also offers reminders of Southwest Florida’s steady growth, its enviable climate and its many beaches. Low mortgage rates and the area’s increasingly diverse economy are features mentioned in the campaign as well.
“Buy Now!” got its start with a $40,000 grant from the National Association of Home Builders.
Donations from local companies tied to the building trade bumped the budget up to $150,000, said JoAnn Orr, assistant executive vice president of the Lee Building Industry Association.
Additional buy-in from the media in the way of reduced advertising costs and in-kind donations of services by a handful of local public relations firms makes “Buy Now!” the equivalent of a $500,000 campaign, she said.
“We all understand that reporters have to report the news, but bad press has shaken the confidence of people to go out and spend their money,” Orr said.
The key component of the campaign is its Web site — www.buynowswfl.com, which spells out in detail the factors that weigh in favor of making a real estate purchase in Lee County. The site also allows visitors to submit requests for additional home-buying information and offers those affected by the industry’s downturn to contribute money toward the campaign.
Photos on the site are of tantalizing beach scenes and lush golf courses.
“Buy Now!” kicks off Oct 25 and continues through Nov. 18. A second phase is planned for February.
The effort includes newspaper, magazine, radio, television, Internet and billboard advertising.
Also planned is a publication containing information about the area’s lifestyle, its economy and testimonials by recent home buyers.
While the thrust of the campaign is home buying, Orr said another goal is to give a boost to businesses that specialize in home repairs and remodeling.
“This is about more than just ‘buy a new home.’ The message is also that this is a great time to add a deck, have your house pressure cleaned, plant flowers,” Orr said. “Everyone has felt the slowdown in the housing market. Anything people can do to support the area’s tradespeople is a help.”
James McCord, who founded American Dream Builders in Golden Gate Estates 11 years ago, contributed $1,000 toward the “Buy Now!” campaign.
“I think this campaign has the potential to help our industry,” he said. “I think we’re pretty darn close to the bottom but there are too many doomsayers who say we’re not.”
McCord specializes in building homes that working families can afford. He expanded over the years to Lehigh Acres, Cape Coral and North Port, and during the couple of years leading up to the market’s 2005 peak he was building 170 to 190 homes per year, he said.
McCord said he’s seeing signs of revival after a year in which his business produced “next to nothing.” Inquiries from potential home buyers picked up in his Golden Gate Estates office about three months ago.
He’s now seeing the same trend in Lehigh Acres and North Port.
“Things are improving, but all it will take to stop that is one more editorial or one more news report that’s negative,” he said.
Despite the lagging market, Barb Clark sold her home off Daniels Parkway in order to build one in Avalon Preserve Estates in Fort Myers.
“We figured what we were losing on the selling end we were more than making up for on the buying end,” she said.
Without revealing specific dollar amounts, Clark said she and her husband priced their house aggressively last September and accepted an offer eight weeks later, allowing them to start construction on a new home that included a swimming pool in the standard price. They closed on that house March 30 and have no regrets, she said.
“Some people still seem to be holding out but they’re not considering that they’re getting a great deal on the other end,” she said.
By Karie Partington
Originally published — 4:18 p.m., October 20, 2007Updated — 10:08 p.m., October 20, 2007
A campaign being rolled out by area builders and developers encourages potential buyers to reinterpret the negative news they’ve been hearing about the local housing market.
Sliding prices? Affordability.
Record inventories? Broad selection.
The “Buy Now!” campaign also offers reminders of Southwest Florida’s steady growth, its enviable climate and its many beaches. Low mortgage rates and the area’s increasingly diverse economy are features mentioned in the campaign as well.
“Buy Now!” got its start with a $40,000 grant from the National Association of Home Builders.
Donations from local companies tied to the building trade bumped the budget up to $150,000, said JoAnn Orr, assistant executive vice president of the Lee Building Industry Association.
Additional buy-in from the media in the way of reduced advertising costs and in-kind donations of services by a handful of local public relations firms makes “Buy Now!” the equivalent of a $500,000 campaign, she said.
“We all understand that reporters have to report the news, but bad press has shaken the confidence of people to go out and spend their money,” Orr said.
The key component of the campaign is its Web site — www.buynowswfl.com, which spells out in detail the factors that weigh in favor of making a real estate purchase in Lee County. The site also allows visitors to submit requests for additional home-buying information and offers those affected by the industry’s downturn to contribute money toward the campaign.
Photos on the site are of tantalizing beach scenes and lush golf courses.
“Buy Now!” kicks off Oct 25 and continues through Nov. 18. A second phase is planned for February.
The effort includes newspaper, magazine, radio, television, Internet and billboard advertising.
Also planned is a publication containing information about the area’s lifestyle, its economy and testimonials by recent home buyers.
While the thrust of the campaign is home buying, Orr said another goal is to give a boost to businesses that specialize in home repairs and remodeling.
“This is about more than just ‘buy a new home.’ The message is also that this is a great time to add a deck, have your house pressure cleaned, plant flowers,” Orr said. “Everyone has felt the slowdown in the housing market. Anything people can do to support the area’s tradespeople is a help.”
James McCord, who founded American Dream Builders in Golden Gate Estates 11 years ago, contributed $1,000 toward the “Buy Now!” campaign.
“I think this campaign has the potential to help our industry,” he said. “I think we’re pretty darn close to the bottom but there are too many doomsayers who say we’re not.”
McCord specializes in building homes that working families can afford. He expanded over the years to Lehigh Acres, Cape Coral and North Port, and during the couple of years leading up to the market’s 2005 peak he was building 170 to 190 homes per year, he said.
McCord said he’s seeing signs of revival after a year in which his business produced “next to nothing.” Inquiries from potential home buyers picked up in his Golden Gate Estates office about three months ago.
He’s now seeing the same trend in Lehigh Acres and North Port.
“Things are improving, but all it will take to stop that is one more editorial or one more news report that’s negative,” he said.
Despite the lagging market, Barb Clark sold her home off Daniels Parkway in order to build one in Avalon Preserve Estates in Fort Myers.
“We figured what we were losing on the selling end we were more than making up for on the buying end,” she said.
Without revealing specific dollar amounts, Clark said she and her husband priced their house aggressively last September and accepted an offer eight weeks later, allowing them to start construction on a new home that included a swimming pool in the standard price. They closed on that house March 30 and have no regrets, she said.
“Some people still seem to be holding out but they’re not considering that they’re getting a great deal on the other end,” she said.
Friday, October 19, 2007
Economist: Only place for region's housing to go is up.
Henry Fishkind told local economic conference attendees it's going to take time to get rid of the inventory of homes.
By Karie Partington
Originally published — 12:39 p.m., October 18, 2007
Updated — 11:23 p.m., October 18, 2007
Southwest Florida has reached the bottom of its housing slump, but a significant turnaround may take some time.
That’s the message economist Henry Fishkind delivered at the Southwest Florida Regional Economic Outlook Conference in Fort Myers on Thursday afternoon.
Fishkind, of Fishkind and Associates, told attendees the volume of housing transactions has stopped going down, and appears to be bouncing along the bottom. However, there remains a 36-month inventory of homes for sale in Lee County and a 12-month inventory in Collier.
“We’re at the bottom of the housing cycle, but it’s going to be long and flat, I’m afraid,” he said.
Fishkind called the difference in inventory between Lee and Collier “astonishing,” and said it is likely because the higher cost of building in Collier kept speculation at a minimum as compared to neighboring Lee.
“It’s going to take time for that inventory to be absorbed because there’s so much of it,” he told an audience of about 250 at the Harborside Convention Center in downtown Fort Myers.
The hardest-hit housing segment when it comes to values, he said, is the condo market.
“Condos are at a great risk,” he said.
The good news, he said, is that other segments of the area’s economy, including tourism, health care, education and government, all remain strong.
And more good news is this: There are multiple factors that weigh in favor of an eventual housing market recovery. Chief among them statewide is the fact that Florida’s growth is expected to continue at a rate of 300,000 to 400,000 per year. Locally, Fishkind said the new terminal at Southwest Florida International Airport is a boon because “people tend to live within 45 minutes of a major airport.”
Thursday’s event — the 20th annual — is sponsored by the Chamber of Southwest Florida. Over the years Fishkind’s forecast has become a conference highlight and a much-anticipated barometer of the local economy.
Fishkind said property tax relief efforts in Florida have been ill-conceived, and may have unintended consequences, like a 15 to 20 percent reduction in property tax revenues and the loss of services that add to the state’s quality of life.
At the national level, Fishkind said “we’re probably as close as it gets to a recession” due to factors like high energy costs, the housing correction and sub prime mortgages, but he’s optimistic it won’t happen.
“The Fed has done a great job of quelling uncertainty,” he said, referring to the Federal Reserve’s half-percent interest rate cut in September.
Chamber of Southwest Florida President Steve Tirey said he found no surprises in Fishkind’s analysis. He said businesses have learned to be lean and efficient during the housing downturn, traits that will serve them well as the area recovers. Growth, he added, is expected to bring 16,000 to 20,000 new jobs over the next year to the five-county area that includes Lee, Collier, Charlotte, Hendry and Glades.
Area business leaders have been significantly affected by the current economy, according to the results of a Southwest Florida business climate survey unveiled at the conference. Sixty-seven percent of respondents said the housing slowdown had hurt their level of business activity, and 62 percent said they believed the regional economy would become less stable in the upcoming year.
During a panel discussion at the conference, Babcock Ranch developer Syd Kitson said there may be opportunities to be had in the current market. Babcock will be a community of 20,000 homes in Charlotte and Lee Counties when it is built.
“We wait for these cycles,” he said. “In the late ‘80s and early ‘90s a lot of companies took advantage of the downturn and invested.”
In that same discussion, though, some panelists acknowledged the pain that has accompanied the housing slump.
“I know countless people in business who are just trying to get through,” said Blake Gable, vice president of Naples developer Barron Collier Cos.. “For the next 12 to 18 months it’s more about surviving than growing.”
By Karie Partington
Originally published — 12:39 p.m., October 18, 2007
Updated — 11:23 p.m., October 18, 2007
Southwest Florida has reached the bottom of its housing slump, but a significant turnaround may take some time.
That’s the message economist Henry Fishkind delivered at the Southwest Florida Regional Economic Outlook Conference in Fort Myers on Thursday afternoon.
Fishkind, of Fishkind and Associates, told attendees the volume of housing transactions has stopped going down, and appears to be bouncing along the bottom. However, there remains a 36-month inventory of homes for sale in Lee County and a 12-month inventory in Collier.
“We’re at the bottom of the housing cycle, but it’s going to be long and flat, I’m afraid,” he said.
Fishkind called the difference in inventory between Lee and Collier “astonishing,” and said it is likely because the higher cost of building in Collier kept speculation at a minimum as compared to neighboring Lee.
“It’s going to take time for that inventory to be absorbed because there’s so much of it,” he told an audience of about 250 at the Harborside Convention Center in downtown Fort Myers.
The hardest-hit housing segment when it comes to values, he said, is the condo market.
“Condos are at a great risk,” he said.
The good news, he said, is that other segments of the area’s economy, including tourism, health care, education and government, all remain strong.
And more good news is this: There are multiple factors that weigh in favor of an eventual housing market recovery. Chief among them statewide is the fact that Florida’s growth is expected to continue at a rate of 300,000 to 400,000 per year. Locally, Fishkind said the new terminal at Southwest Florida International Airport is a boon because “people tend to live within 45 minutes of a major airport.”
Thursday’s event — the 20th annual — is sponsored by the Chamber of Southwest Florida. Over the years Fishkind’s forecast has become a conference highlight and a much-anticipated barometer of the local economy.
Fishkind said property tax relief efforts in Florida have been ill-conceived, and may have unintended consequences, like a 15 to 20 percent reduction in property tax revenues and the loss of services that add to the state’s quality of life.
At the national level, Fishkind said “we’re probably as close as it gets to a recession” due to factors like high energy costs, the housing correction and sub prime mortgages, but he’s optimistic it won’t happen.
“The Fed has done a great job of quelling uncertainty,” he said, referring to the Federal Reserve’s half-percent interest rate cut in September.
Chamber of Southwest Florida President Steve Tirey said he found no surprises in Fishkind’s analysis. He said businesses have learned to be lean and efficient during the housing downturn, traits that will serve them well as the area recovers. Growth, he added, is expected to bring 16,000 to 20,000 new jobs over the next year to the five-county area that includes Lee, Collier, Charlotte, Hendry and Glades.
Area business leaders have been significantly affected by the current economy, according to the results of a Southwest Florida business climate survey unveiled at the conference. Sixty-seven percent of respondents said the housing slowdown had hurt their level of business activity, and 62 percent said they believed the regional economy would become less stable in the upcoming year.
During a panel discussion at the conference, Babcock Ranch developer Syd Kitson said there may be opportunities to be had in the current market. Babcock will be a community of 20,000 homes in Charlotte and Lee Counties when it is built.
“We wait for these cycles,” he said. “In the late ‘80s and early ‘90s a lot of companies took advantage of the downturn and invested.”
In that same discussion, though, some panelists acknowledged the pain that has accompanied the housing slump.
“I know countless people in business who are just trying to get through,” said Blake Gable, vice president of Naples developer Barron Collier Cos.. “For the next 12 to 18 months it’s more about surviving than growing.”
Wednesday, October 17, 2007
The Top 10 Reasons It's a Great Time to Buy Real Estate!
by Paul Pastore
1. Selection, selection, selection. There are about 57,000 resale homes on the market in Maricopa county (Phoenix). Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 5,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
2. No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
6. There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. R.L. Brown estimates that builders have thousands of specs ready for immediate occupancy.
7. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
8. Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to Maricopa and Queen Creek in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
10. Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business.
It's a great time to buy real estate!
Friday, September 14, 2007
Real Estate Rebound Imminent
Economist and VP of research at the National Association of Realtors predicts market will reverse by early next year
By VICTORIA MACCHI, Daily News correspondent
Originally published — 3:06 p.m., September 13, 2007
Updated — 7:40 p.m., September 13, 2007
The downturn in the Southwest Florida real estate market should reverse itself by next year, a national economist told a gathering of Naples area Realtors and brokers Thursday.
“The recovery will not be a robust recovery ... but nonetheless it will be an improvement,” said Lawrence Yun, senior economist and vice president of research at the National Association of Realtors. “What people experienced back during the (real estate) boom was a once-in-a-lifetime situation,” he added.
Yun expects that by early 2008, the decline in the local real estate market will reverse, however, not to the peak levels that had the Naples market aflutter in recent years.
He said the impact on the local real estate market was “due to a lack of confidence, not necessarily due to the lack of financial wherewithal. But with the pent-up demand accumulating, it’s just a matter of time before it’s unleashed onto the market”
Some local brokers who attended Yun’s talk blamed the media for giving the perception that the market is bad, which in turn hurts foreign investment who base real estate choices on media input.
Others attributed the market downturn to the overzealous mortgage firms and the bottoming-out of subprime lending.
More stringent U.S. visa restrictions have also affected the number of foreigners investing in Naples real estate, according to Yun.
Brenda Talbert, executive vice president of the Collier Building Industry Association, said the adjustment in the real estate industry “seems to be landing where the normal market would be.”
This may be a tough pill to swallow for those in construction. According to Talbert, middle management in the industry has taken the hardest hit during the real estate downturn. According to a statement released last month by the Agency for Workforce Innovation, statewide the number of employees working in the construction industry fell 2.8 percent to 610,000 from July 2006 to that same period this year.
“There’ve been a lot of layoffs,” said Talbert. “Workers with transferable skills have been able to go into commercial construction and remodeling, it’s middle management that is taking it on the chin.”
Relocation is costly, but often the only solution for those who are laid off from the industry.
According to local real estate associate broker Birgit Wolf, “it was a good time to bring (Yun) in and give Realtors a bit more confidence.”
Foreign real estate investors are holding off on local investments now “because of the media” according to Wolf, who has been an area Realtor for six years.
Other Realtors said that investors were the ones who needed the reassurance, not their real estate agents.
“Everybody is sort of not knowing what is going to happen next and how far we’re going to have to wait until the market turns,” said Hilda Díaz-Perera, a local broker who attended Yun’s speech.
“I think we have the subprime rate that really killed us, because investors don’t have any confidence at all,” she added. “There is no confidence. They don’t want to put their money in real estate.”
For Díaz-Perera the key is “to clean up the mortgage business … so that the people are offered products that are going to be good, not porous...”
Yun was quick to point out, however, that the Naples real estate market is not like most others in the country.
“The current real estate cycle is very unique in that nearly all past local real estate market cycles have been associated with prolonged job losses. Yet jobs are continuing to be added to the local economy.”
The next step, according to the economist, “is to construct more affordable homes”, which he says would require the collaboration of the local government and permit boards to expedite the process and get those hit by the downturn in construction back in the real estate market.
By VICTORIA MACCHI, Daily News correspondent
Originally published — 3:06 p.m., September 13, 2007
Updated — 7:40 p.m., September 13, 2007
The downturn in the Southwest Florida real estate market should reverse itself by next year, a national economist told a gathering of Naples area Realtors and brokers Thursday.
“The recovery will not be a robust recovery ... but nonetheless it will be an improvement,” said Lawrence Yun, senior economist and vice president of research at the National Association of Realtors. “What people experienced back during the (real estate) boom was a once-in-a-lifetime situation,” he added.
Yun expects that by early 2008, the decline in the local real estate market will reverse, however, not to the peak levels that had the Naples market aflutter in recent years.
He said the impact on the local real estate market was “due to a lack of confidence, not necessarily due to the lack of financial wherewithal. But with the pent-up demand accumulating, it’s just a matter of time before it’s unleashed onto the market”
Some local brokers who attended Yun’s talk blamed the media for giving the perception that the market is bad, which in turn hurts foreign investment who base real estate choices on media input.
Others attributed the market downturn to the overzealous mortgage firms and the bottoming-out of subprime lending.
More stringent U.S. visa restrictions have also affected the number of foreigners investing in Naples real estate, according to Yun.
Brenda Talbert, executive vice president of the Collier Building Industry Association, said the adjustment in the real estate industry “seems to be landing where the normal market would be.”
This may be a tough pill to swallow for those in construction. According to Talbert, middle management in the industry has taken the hardest hit during the real estate downturn. According to a statement released last month by the Agency for Workforce Innovation, statewide the number of employees working in the construction industry fell 2.8 percent to 610,000 from July 2006 to that same period this year.
“There’ve been a lot of layoffs,” said Talbert. “Workers with transferable skills have been able to go into commercial construction and remodeling, it’s middle management that is taking it on the chin.”
Relocation is costly, but often the only solution for those who are laid off from the industry.
According to local real estate associate broker Birgit Wolf, “it was a good time to bring (Yun) in and give Realtors a bit more confidence.”
Foreign real estate investors are holding off on local investments now “because of the media” according to Wolf, who has been an area Realtor for six years.
Other Realtors said that investors were the ones who needed the reassurance, not their real estate agents.
“Everybody is sort of not knowing what is going to happen next and how far we’re going to have to wait until the market turns,” said Hilda Díaz-Perera, a local broker who attended Yun’s speech.
“I think we have the subprime rate that really killed us, because investors don’t have any confidence at all,” she added. “There is no confidence. They don’t want to put their money in real estate.”
For Díaz-Perera the key is “to clean up the mortgage business … so that the people are offered products that are going to be good, not porous...”
Yun was quick to point out, however, that the Naples real estate market is not like most others in the country.
“The current real estate cycle is very unique in that nearly all past local real estate market cycles have been associated with prolonged job losses. Yet jobs are continuing to be added to the local economy.”
The next step, according to the economist, “is to construct more affordable homes”, which he says would require the collaboration of the local government and permit boards to expedite the process and get those hit by the downturn in construction back in the real estate market.
Sunday, June 17, 2007
Naples Season Sales Off 7.7%, Prices Down 10.6%
This morning I pulled year to date Naples, Florida statistics from Sunshine MLS (the local MLS system) to determine how the 2007 season compared to 2006. I compared numbers from January 1 to May 31 for each year and found the following:
Number of Pending Sales
2006 - 2651
2007 - 2448
DOWN 7.7%
Median Price Average
2006 - $443,300
2007 - $396,440
DOWN 10.6%
So what does it mean. These numbers are no where near the poor pending numbers when comparing 2006 to 2005, a time where pending sales dropped 53.1%. Even better news is pricing, 2006 to 2005 saw a gain in median prices by 27%, however we have only given 10.6% back.
This market rewards sellers who price their property correctly and severely penalizes those who don't. With residential inventory over 11,000 units, buyers can find great value if they do their homework.
Of course I recommend hiring a Realtor, our value is really apparent in a normal market like today.
Joe Ballarino
President & Founder
Amerivest Realty
Posted by Amerivest Realty at 6/16/2007
Number of Pending Sales
2006 - 2651
2007 - 2448
DOWN 7.7%
Median Price Average
2006 - $443,300
2007 - $396,440
DOWN 10.6%
So what does it mean. These numbers are no where near the poor pending numbers when comparing 2006 to 2005, a time where pending sales dropped 53.1%. Even better news is pricing, 2006 to 2005 saw a gain in median prices by 27%, however we have only given 10.6% back.
This market rewards sellers who price their property correctly and severely penalizes those who don't. With residential inventory over 11,000 units, buyers can find great value if they do their homework.
Of course I recommend hiring a Realtor, our value is really apparent in a normal market like today.
Joe Ballarino
President & Founder
Amerivest Realty
Posted by Amerivest Realty at 6/16/2007
Wednesday, March 7, 2007
You are cordially invited to attend the official announcement of Victor Ortino for Collier County Sheriff.
Personally meet the candidate and hear why he is running.
Date: Wednesday, March 14, 2007
Time: 6:00 p.m. (Sharp)
Location: Naples Hilton - Grand Ballroom
5111 Tamiami Trail North, Naples
(Just south of Pine Ridge Road on the west side of US 41)
It’s Time for a new Sheriff!
Political advertisement paid for and approved by Victor Ortino, Republican, for Collier County Sheriff
Date: Wednesday, March 14, 2007
Time: 6:00 p.m. (Sharp)
Location: Naples Hilton - Grand Ballroom
5111 Tamiami Trail North, Naples
(Just south of Pine Ridge Road on the west side of US 41)
It’s Time for a new Sheriff!
Political advertisement paid for and approved by Victor Ortino, Republican, for Collier County Sheriff
Wednesday, February 14, 2007
Naples Florida Real Estate: NABOR Reports Surge In January Sales
NABOR Reports Surge in Sales. Read the article at Naples Florida Real Estate: NABOR Reports Surge In January Sales
Return to Kimberle Website www.ISellNaples.com
Return to Kimberle Website www.ISellNaples.com
Sunday, February 4, 2007
A must read book!
If you are looking to bring out the best in yourself and your team you will greatly benefit from Jon Gordon’s new business fable The Energy Bus: 10 Rules to fuel your life, work and team with positive energy. The book tells the story of a man named George. His home life is in shambles and his team at work is in disarray because of his negativity. With a big new product launch coming up in 2 weeks for the NRG-2000 he has to find a way to get it together or risk losing his job and marriage. Yet everything changes Monday morning he walks out the front door to his car and a flat tire. Forced to take the bus to work, George meets a unique kind of bus driver named Joy and an interesting set of characters (passengers) that teach him the 10 rules for the ride of his life as they attempt to help him turn around his work and team and save his job and marriage from an almost inevitable destruction.
For managers and team leaders who want to get their team on their bus and move in the right direction or anyone looking to turn negative energy into positive achievement, THE ENERGY BUS will inspire you to enjoy the ride of your life!
Visit Kimberle's website at www.ISellNaples.com
For managers and team leaders who want to get their team on their bus and move in the right direction or anyone looking to turn negative energy into positive achievement, THE ENERGY BUS will inspire you to enjoy the ride of your life!
Visit Kimberle's website at www.ISellNaples.com
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