*Pinellas County Real Estate Market Trends
*Coastal Concerns
    Red Tide
    Flood Insurance
*My Real Estate Promotions

Greetings….
People from up North, like I was once upon a time, laugh when I tell them Florida has seasons. I see it now, the daylight shines at a different angle, the sky has a different hue, the air a different feel, the clouds a different shape, our season changes soon.

And before it does, greetings with this Summer Newsletter!

I appreciate this summertime along our coast more each year, perhaps part of growing older. Even our most scorching hot summer days close with magnificent serenity. Sunsets along our Gulf coast seem more incredible the more I watch them, a 360 degree panorama from one perch on the dunes. This photo looks south from 26th Avenue in Pass-a-Grille…how clever of the sun, to ignite a brilliant explosion in the southern sky when it has already set in the western horizon.

Pinellas County Real Estate Market Trends…

Last week David Bennett, President and CEO of the Pinellas Realtor Organization, reported July statistics and year over year, there is no let down in median sales price and time to sale for single family homes or townhome/condos. “The median Sales Price for Single Family Homes was up by 4.2% from last year, at $250,000 for July 2018 versus $240,000 for July 2017. The Median Sale Price for Townhomes/Condos was $164,900 for July 2018, up 3.1% from $160,000 in July 2017. The Median Time to Sale for Single Family Homes was 61 days this July, down 7.6% from 66 days last July. Median Time to Sale for Townhome/Condo market was 72 days in July 2018 and 74 days in 2017, down at 2.7%.

The Average Sale Price for Single Family Homes rose from $312,210 in July 2017 to $320,584 in July 2018. The Median Time to Contract for Single Family Homes was 22 days in July 2018, up 15.8% from 19 days last July. The Months Supply of Inventory for Single Family Homes increased 12.0% year-over-year, with a 2.8 Month Supply this July, as compared to a 2.5 Month Supply in July 2017. New Listings for Single Family for July were 1,312, down 9.4% from last July, at 1,448. The Active Listings for Single Family Homes rose 2.4% from 3,049 in July 2017 to 3,122 in July 2018. Dollar Volume for Single Family Homes increased 1.6% year-over-year, with $383.1 million in 2018 versus $377.1 million in July 2017. Year-over-year, Closed Sales for the Single Family were down 1.1% with 1,195 in July 2018 versus 1208 in July, 2017. Paid in Cash sales for Single Family increased 12.6%, from 294 in July 2017 to 331 in July 2018.

The Average Sale Price for Townhome/Condo was $225,849 in July 2018, down from $226,638 in July 2017. The Median Time to Contract for Townhome/Condo market was 31 days. It was 32 days in July 2017. The Months Supply of Inventory for Townhome/Condo fell 3.4%, from 2.9 months in July 2017 to 2.8 months in July 2018. New Listings for Townhome/Condos for July 2018 were at 793, up 4.8% from 757 in July 2017. Active Listings for Townhomes/Condos dipped 5.9% from 2,178 in July 2017 to 2,050 in July 2018. Dollar Volume for Townhome/Condo saw a 2.7% increase year-over-year, with $170.2 million in July 2017 compared to $174.8 million in July 2018. Closed Sales for the Townhome/Condo segment rose 3.1% year-over-year, at 751 in July, 2017, versus 774 in July. Paid in Cash Sales for Townhome/Condo decreased 2.0% from 410 in July, 2018.”

Local beach real estate markets are moving much as they have the past year, though perhaps less seasonally that we have experienced in the past. I see properties sell readily, then some not so fast, low inventory nudging prices upward, amid price reductions and “back on the markets.” The property with the properly-targeted price sells faster.

Click  the following link for market data in the Pass-a-Grille area for the past 3 months of summer:
https://mfr.mlsmatrix.com/DE.asp?k=3031873XRWZH&p=DE-300747420-510&L=1

My website has a program anyone can use to search MLS real time, or create a comparative market analysis for your home. Call me for help to assimilate the information to meet your specific goals, or we can research property not only in your backyard, but all over the world!
http://GulfToGlobalRealEstate.com

Coastal Concerns…

Red Tide:
Up to now our coastal summer weather has been benign, our beaches mostly clear and sparkling. Beaches south of us have not been so fortunate with the Red Tide event, and we are watchful in Pinellas County as this algae bloom lurks off shore. So far we have had minimal signs of its effects, no toxic air, albeit some dead fish washed up a few days ago. There have been no reports that red tide has come on to any of our beaches. So far we are blessed. Be alert of course, but help spread this word. Here is a link to a site where residents and visitors can check conditions at all Gulf Coast beaches…. Click on “beaches” to find your town. As of this morning my beach, Pass-a-Grille, is green flag, water conditions clear, no signs of red tide. https://visitbeaches.org

Flood Insurance:
Doug Izzo,legislative director at the Tampa Bay Beaches Chamber of Commerce, has again shared his research of flood insurance issues. He and the Chamber President have authorized my forwarding it, noting no further updates are expected until November. Here is a link to the most current information, with thanks to TBBCC:
http://www.tampabaybeaches.com/flood-insurance.html.

My Real Estate Promotions…

18132 NASSAU POINT DRIVE TAMPA, FLORIDA, 33647 Offered For Sale At $198,000		LUXURY WATERFRONT 3/3/2 CONDO, GATED COMMUNITY, ST. PETE BEACH …$925,000
Vacation At Home!… in this elegant 3 bedroom/2.5 bath/1 car gar. home on the very popular Nassau Point cul-de-sac in a beautiful PUD Community, Heritage Isles….and for $40 per year, enjoy security and a maintenance free lifestyle with an 18 hole Championship Design golf course, ponds, lakes, lighted tennis courts, volley ball and basketball courts, restaurant/clubhouse, new gym facility, park, playground, and huge family pool. This is a very private unit which backs onto a conservation area, a lovely natural cypress hammock. Unit is upgraded with handsome engineered wood flooring throughout, ceramic tile in kitchen and baths, granite countertops, stainless steel appliances. The comfortable layout includes a foyer entrance, downstairs guest half bath, full laundry room near upstairs bedrooms, open kitchen with eat- in area and pantry, spacious great room and private screened porch. Affordable monthly HOA fees include roof and reserves, insurances, maintenance,pressure washing, painting, landscaping maintenance, water, security patrol. Close access to I-75 and USF, malls, and restaurants.		…this is the first Boca Sands Condo unit available in months!… OPEN HOUSE Sunday, August 26, and Sunday, September 2. 1 to 3 P.M. Look for my associate at the call box or call Joan’s cell 727-580-0822. 5301 GULF BLVD., UNIT F507. $925,000. COASTAL LIVING at its best! Luxury Boca Sands condo, St. Pete Beach, gated community, 2 master suites with balconies, 3rd bedroom plus 3rd full bath, plus private foyer, office, butler’s pantry, laundry, formal dining room, great room, 2 enclosed garages. Dramatic views over open Intracoastal, across the street from the Gulf of Mexico. Click this link for more information…

• RECENT MARKET STATISTICS
• WORLD CLASS REAL ESTATE
• STAGING TIPS

RECENT MARKET STATISTICS:

David Bennett, President and CEO of the Pinellas Realtor Organization, provides a monthly statistical study of our local market activity, month over month, and year to year. His recent study summarizes: “The Pinellas County real estate market is continuing to see the trend of higher sale prices and a shrinking inventory for both the Single Family and Townhome/Condo segments. The Median Sale Price for Townhomes/Condos was $159,000 for March 2018, up 14.4% from $139,000 in March 2017. The Median Sale Price for Single Family Homes was up by 8.7% from last year, at $250,000 for March 2018 versus $230,000 for March 2017. The Months Supply of Inventory for Single Family Homes is down 14.8% year-over-year, with a 2.3 Month Supply this March, as compared to a 2.7 Month Supply in March 2017. The Months Supply of Inventory for Townhome/Condo also fell 17.6%, from 3.4 months in March 2017 to 2.8 months in March 2018.

Real estate markets are local, often seasonal as we know, and isolated communities can be challenged by other events more or less significantly than surrounding areas, such as Hurricane Irma or flood insurance concerns. A local market can experience its own over supply or under supply within any overall strong real estate market.

Using data searches on the Florida Regional MFRMLS system, I’ve generated 2 graphs specifically for the Pass-a-Grille/Don Cesar/Vina del Mar real estate market where I live.

Historic Count of Active Listings

Historic Sales Price Trend

Pass-a-Grille Area 6 Month Market Snapshot

Single Family

Condominium

Income

Visit my website http://GulfToGlobalRealEstate.com to research your neighborhood market, or build a preliminary Comparative Market Analysis for your own home. When you are ready to sell, call me for more in depth analysis, projections, and targeting your most successful sales position in your market.

WORLD CLASS REAL ESTATE
“In 2017,” NAR chief economist Lawrence Yun reports, “foreign buyers bought more than double the figure in Florida real estate from a decade ago.”
I’m fortunate to be directly engaged with global minded professionals as a Director on The Pinellas International Council of Realtors. At the end of 2017 our local International Council was awarded Platinum by the National Association of Realtors for our achievements and execution of mission. Please visit the PIC website,and see what we do….https://pinellasrealtor.org/pinellas-international-council, and visit the PIC Facebook page.
“The mission of the Pinellas International Council of the Pinellas Realtor® Organization (PRO) is to further enhance the professionalism of REALTORS® serving foreign and U.S. customers engaged in international real estate transactions by providing education, information, networking and marketing resources.”
On May 6 Realtor.com published a report by Nicolas Bedo (www.realtor.com/research/international) on International Demand, March 2018. Tampa/StPetersburg/Clearwater has moved up to position 11 of all Top US markets for International Traffic. In the entire state of Florida, our Tampa Bay rating is only surpassed by the greater Miami (4) and Orlando (7) real estate markets as the area where international real estate buyers are shopping for a home.

STAGING TIPS
What do you think of when you hear the phrase “staging” a home? Certainly a home that is empty sells better with some furnishing. Empty is somehow sad. Often real estate agents suggest hiring a professional designer or “home stager” with interior design contacts. Often this is not in the seller’s budget.
Actually Staging means preparing a home to show, and it does not mean literally, “furnishing.” It means clearing out clutter and leaving a generally sparse canvas where the buyers’ vision takes over. It means simplifying so that essential spaces are defined without clutter, where air, freshness, cleanliness, light, utility, even whimsy, translate into a pleasant invitation.

Sometimes an agent and homeowner will engage a “home stager” who simply counsels sellers about things the agent is uncomfortable to tell them. Don’t take it personally, don’t pay someone else to tell you what the agent should tell you, “clear out and clean up.” No hurt feelings!… Admit it, this simple advice generally applies to every one of us when we prepare a home for sale. Often a good friend or our agent can help us “see” what we need to do..
Work with your agent to determine how to simply and tastefully arrange your rooms so buyers… other people… sense the space and envision living there with their stuff. Serious buyers do not come to see your furnishings. And literally Everyone appreciates a home that is fresh, clean, airy, bright, inviting. Avoid anything that can detract in any way. Fresh paint, sunlight, a spotless kitchen and bath…you can’t go wrong .
Here are a few tips:
Pay attention to the exterior appeal of your home…You may need to pressure wash and/or freshly paint the house. For general appeal a light sunny neutral color will work best.Clear driveways, manicure the yard, pay special attention to the entry sidewalk and door. Paint or replace the front door and any shutters if necessary.
Clean all windows inside and out.
The interior should be immaculate, walls and ceiling unstained and if needed, freshly painted a neutral color. Flooring should be clean and not show traffic patterns. Clean and fresh always wins over worn/used or cluttered, every time.
Limit furniture in each room, simply focus on giving buyers a dimensional perspective. An empty room appears somehow sad, smaller than the same room with sparse furniture. Place only enough pieces of furniture to give buyers a dimensional perspective that an empty room cannot convey..
Less is better. Light and space are basic and necessary features. If you don’t have them, create them. If you have particularly nice flooring or large windows, for example, this is your story. Remove your heavy drapery or the overstuffed couch you enjoyed so many Saturdays slouched upon.
Space, light, a bit of color and whimsy against a fairly neutral canvas, a single colorful painting, a large vase of fresh flowers on a table…. These Invite a smile. Create that mood and you’ll make the most of first impressions.

2910 Pass-a-Grille Way

Sold full price $850,000

Remodeled and rented

Classic mid-40’s 3 bed/3 bath home is located on a double lot only two doors from the dunes and the Gulf of Mexico, along a relatively private ten block section of beachfront.

105 13th Avenue

Pass-a-Grille, Florida, 33706

List $599000, sold $590,000

One of our Pass-a-Grille community treasures, this little 2/1 bungalow, built in 1925, is on the State Inventory of Historic Sites. Cherished by its current owners as a secret beach retreat since 2004, this dear home awaits its new history.

• INSIGHT AND STATISTICS, REAL ESTATE MARKETS…HOW ARE WE DOING?….
• WORLD CLASS SERVICE
• IN MY NEIGHBORHOOD

INSIGHT AND STATISTICS, REAL ESTATE MARKETS…HOW ARE WE DOING?

Reports from the National Association of Association of REALTORS® (NAR) reflect nationwide statistics, and of course, the Pinellas Realtor Organization (PRO) provides a monthly statistical study of our local market activity, month over month over month, and year to year. In reviewing these reports keep in mind, individual real estate markets are local, they are often seasonal, or challenged by other events, and they are cyclical. Even sub-markets such as single family, condos, apartment buildings, office or retail, can experience “bubbles” (generally meaning “over supply”) within a strong overall real estate market.
Selling a Lifestyle, Specializing in you….

Never the blind optimist, bless us all who must live by the sea…There is no better place for me, every day is a gift!.

Just over a year ago, August 5, 2016, FloridaRealtors.org published an article by Larry Kendall, author of Ninja Selling,
called “Bubble trouble? Four fundamentals you need to know.”
“ ‘Are we experiencing a real estate bubble?’…This is a question we’re being asked more and more by customers,
investors, media and even our team members. Dr. Lawrence Yun, chief economist for the National Association of
Realtors, doesn’t see a bubble at the present for three reasons:
1. A shortage of supply in both new and resale housing. Bubbles are usually the result of oversupply.
2. Interest rates are lower now than in the bubble years of the mid-2000’s resulting in better affordability.
3. There is no sub-prime lending causing people who are unqualified to buy housing and then default.”
And here we are a year later, FloridaRealtors.org today published this news: “ – Oct. 24, 2017 – U.S. housing markets
are expected to remain healthy through at least the end of 2018, with no housing bubble in sight and no projection of
home prices falling, according to the Fall 2017 edition of The Housing and Mortgage Market Review (HaMMR), released
by Arch Mortgage Insurance Company.
The HaMMR features the Arch MI Risk Index, a statistical model based on recent housing market indicators. The index
suggests that over the next two years, the probability of home price declines in America’s 401 largest cities averages
just 4 percent – an unusually low number.
The trend reflects broad-based favorable fundamentals, such as a tightening job market, relatively low interest rates, a
low number of homes for sale and an overall housing shortage.”
A well considered study/forecast of the real estate cycles in any given market will include four fundamentals, according
to Mr. Kendall. These are employment, appreciation, affordability, and supply vs. demand ratios. As always, consult
your real estate professional who is experienced in the market of your choice for study sources, and for understanding
beyond the plethora of often misleading valuations and false realities offered on-line.
The National Association of REALTORS® (NAR) reported nationwide existing home sales were slightly higher in
September than in August, but were lower on a year-over-year basis for the first time since July 2016. Existing-home
sales totaled 5.39 million, a 0.7 percent increase from August but a 1.5 percent decrease from one year prior. Inventory
increased 1.6 percent to 1.90 million, 6.4 percent below one year ago.
“Home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable
buyer interest in most parts of the country,” says Lawrence Yun, chief economist at NAR. “REALTORS® this fall continue
to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings—
especially at the lower end of the market—and fast-rising prices that are straining the budgets of prospective buyers.”
Inventory is currently at a 4.2-month supply whereas a 6 month supply is considered a balanced market that equally
benefits buyers and sellers.. According to Danielle Hale, Chief Economist for Realtor.com, “Inventories also continue
to plunge, creating challenges for buyers across the country. On the bright side, we’re starting to see home price growth
slow down, with sale prices up only 4.2 percent from a year ago.” (RIS Media, 10/23/17).
David Bennett, President and CEO of the Pinellas Realtor Organization, reported September’s numbers for our local
real estate market this week….”…it comes as no surprise that Hurricane Irma made somewhat of an impact on the real
estate market. Before you get too concerned, there are some important takeaways from this month’s statistics. Yearover-
year, Closed Sales for the Single Family segment in September were down 25.3%, but this is directly related to the
length of time businesses, schools, and other institutions were closed before and after Irma’s impact. Median Sale Price
for Single Family Homes was up 11.7% from last year, at $248,000 for September 2017 versus $222,000 for September
2016 which is a strong indicator that the housing market was just delayed, rather than derailed.”It should also be noted
that there were only 20 business days this September, and even if title agencies, banks, and other major players in the
market were only closed for four days, that is 20% fewer business days to get things done.”
Also factored into the Irma-related drop in closed sales… financed
transactions were delayed before and after Irma passed, because
insurances could not be bound. Additionally, after a natural disaster suchas Irma, it is the general procedure of lenders to employ local appraisers to survey each property for damage prior to proceeding with any closing, since the property is the lender’s security for the purchaser’s loan. I hold open house nearly every weekend, most recently, and repeatedly, in Pass-a-Grille at the southernmost end of St. Pete Beach. I assumed there would be a drop in the number of visitors immediately before and
perhaps for some weeks after Irma, compounded by our intra-season time of year. I was astounded last weekend to have close to the largest open house attendance I ever recall, prospective buyers and visitors from around town, Tampa and Orlando and across our State, as usual, but also a number of out of state groups came by, including a very determined couple from Dallas (Harvey) who have decided they want to buy here, two individual investors, one from Connecticut and the other New Jersey
(Sandy), among visitors from Georgia, Kentucky, and Maryland. What a positive indicator this day was for me. We are doing okay! I am selling a lifestyle and people are coming to buy it. …And not only for those investing in owner occupied or second homes.
As I write this, 10/24/2017, FloridaRealtors.org reports: NEW YORK – Oct. 23, 2017 –” Real estate observers say that house flipping, which declined after the financial crisis in 2008, is on the rise again, thanks to low interest rates and rising home prices. Last year, 5.7 percent of all home sales were flips, the highest level since 2006, according to Attom Data Solutions.” I see this happening very close to home! And beside conventional financing, savvy investors are finding hard money lenders back in town, no income verifying but tightly secured with substantial down payments, higher interest rates, for quick cash, short terms.

WORLD CLASS SERVICE

BRAVO! to the fine group of real estate professionals, the Board of Directors of the Pinellas International Council, with whom I have been honored to serve since the height of the Recession 8 years ago…. The work ethic, cooperative
attitude, passion and generosity of each and every member has truly been the “wind beneath my sail.”
In a letter to the Pinellas Realtor Organization from the National Association of Realtors dated October 13, 2017:
“I am pleased to inform you that your association’s Global Business Council has been
named a Platinum Council in the 2017 Global Achievement Program. Reaching the
Platinum award level places you in the top 11% of councils operating nationwide.
I hope you are as proud of this achievement as we are of the hard work and dedication
that your association has contributed to raising members’ awareness of global business
in your local market. Your council has demonstrated the utmost commitment to helping
members capture their share of the global real estate market in the United States, in
addition to connecting your council and members to the global community in your area.
Enclosed please find your Council’s Platinum badge. On behalf of the 600,000 REALTORS® represented by Global Business Councils across the country, we thank you for your efforts and congratulate you on your outstanding achievement….”
Financing Tips:
For investors who want to make a cash offer to purchase, there are loan programs one can set up to close after the
purchase, especially for owner occupied or second home buyers. There are also investor (flipper) “hard-money”
loans for good credit, substantial down payment, $100k minimum purchase… for example, 40 to 50% down, no tax
returns… quick cash loans are available if secured by low LTV (loan-to-value) loans for high credit score investors,
currently around 9 to 12% annual interest rate amortized over 30 years carrying short term balloons up to five years.
IN MY NEIGHBORHOOD
We meet any challenge!…Amid an assortment of potholes and pitfalls over the Spring and Summer months just past, I
sold three properties right in the midst of our Pass-a-Grille road construction dust bowl.

No one works for you like I do…

Summer Newsletter

Flood Insurance – Whats Coming?

Dear Neighbors, Clients, Friends and Fellow Realtors…
It is a monumental task to find long term solutions to address the sustainability and continuity of the National Flood Insurance Program (NFIP), and still balance the affordability needs of consumers. The issues involving the upcoming makeover of the NFIP are critically important for our coastal communities, including 22,000 communities that depend on it. It is important Congress get this right.

NFIP has been a law for almost 50 years, but has gone through several transitions, most recently in 2014: the Homeowner Flood Insurance Affordability Act. That Act reinstated grandfathering of lower rates, and also changed the process for subsidizing premiums.

NFIP needs the reforms to be reauthorized by September 30 this year. Following is discussion of the seven bills. The reforms submitted and relative issues contained in these bills affect me as a Realtor and property owner, and I have organized my Summer Newsletter to outline the proposed bills and provide a source of information for fellow real estate professionals and property owners.

Address individual concerns to your insurance agent, I am no expert in this field. But I will convey resource information as concisely as I can. I am drawing directly from the summary article published by Inman News on June 30, by Amber Taufen, staff writer, Inman.com/2017/06/30: “NAR Supports Six of Seven Bills Proposed to Re-authorize, Reform National Flood Insurance Program.”
In her article, Ms. Taufen publishes and summarizes a letter from William E. Brown, 2017 President, National Association of Realtors, to Honorable Jeb Hensarling, Chairman, House Financial Services Committee, and Honorable Maxine Waters, Ranking Member, House Financial Services Committee, Washington, D.C.
Following this summation I am directly forwarding the information and resources provided me by Doug Izzo, who is in charge of Legislative Affairs for the Tampa Bay Beaches Chamber of Commerce. Both organizations, NAR and TBBCC, appear closely aligned in their areas of support and/or concern.

The INMAN summary article reports the new legislation would exempt commercial property owners from purchasing flood insurance for properties in “Special Flood Hazard Areas.” The bill that NAR opposes would eliminate “all future grandfathering for existing homeowners who have followed the law, built to code and invested tens of thousands of dollars to reduce their risk, as well as NFIP’s exposure.” NAR further says the flood mapping reforms “don’t go far enough. FEMA must obtain the elevation data necessary to calculate and disclose full risk rates for all homes in the NFIP by transitioning to building specific flood maps like North Carolina’s….It should not be incumbent on homeowners to spend hundreds of dollars to provide information that a federal program funded by their tax dollars should be collecting in the first place.” (NAR President William E. Brown). “NAR is very concerned about the cumulative impact of the bill’s new surcharges and fee increases on the total cost of flood insurance; additional analysis is needed to evaluate the cumulative impact of the collective changes for a range of policyholders….legislation that strikes a balance between the long-term sustainability and affordability of the NFIP.” Concluding the NAR recommendations, NAR President Brown assures Congress the NAR looks forward to working with legislators to “strengthen and improve the 21st Century Flood Reform Act as it works its way through the legislative process.”
Ms. Taufen summarizes: NAR supports 6 of the 7 bills, those containing the following propositions:
Establish an NFIP rate cap of $10,000 per year — NAR supports this but wants to remove a requirement that homeowners file a valid elevation certificate in the previous calendar year to access the rate cap.
Remove barriers to private flood insurance while keeping NFIP viable.
Set standards for communities to develop their own flood maps and clarify the opt-out provision so it applies “only to large commercial portfolios where many buildings could be covered by one private market flood insurance policy.”
Develop plans for mitigating repetitive loss.
Requiring the Federal Emergency Management Administration (FEMA) to use replacement cost values for individual structures instead of a national average..
Double the amount of increased-cost-of-compliance (ICC) coverage and “allow homeowners access to mitigate their property before it floods.”
Below is the letter sent me by Doug Izzo of the Tampa Bay Beaches Chamber of Commerce which provides us direct links to the seven new flood insurance bills, “most good legislation,” he notes. I include it in its entirety:
There are seven flood insurance bills. Most are good legislation. The good bills are listed below

• HR 2875, the NFIP Administrative Reform Act. This bills allows for additional ICC Coverage and improves the claims process.  
• HR 1558, the Repeatedly Flooded Communities Act. It now allows (as opposed to requires) the Administrator to sanction and removes the suspension of communities from the NFIP as a sanction.  It essentially mirrors FEMA’s current sanctioning authority. 
• HR 1422, the Flood Insurance Market Parity and Modernization  Act. 
• HR 2565, Uses replacement costs in determining premium values
• HR 2246, Taxpayer Exposure Mitigation Act of 2017.
• HR 2868 NFIP Policyholder Protection Act. 

However, one (HR 2874  21st Century Flood Reform Act) needs changes. We are urging congress to vote no on the The 21st Century Flood Reform Act, unless major changes are made.
See below for our top concerns with the legislation. 
Raises the flood insurance rate increase from 5% to 8%
Removes Grandfathering
Prohibits offering coverage in the SFHA for new construction
Prohibits covering the replacement value of homes over $1 million

See below for more information on these issues:
Removal of Grandfathering and Prohibition on Coverage for Certain Properties  
Any renewal of coverage on grandfathered property where new maps have been adopted after construction of the structure –The legislation prohibits a renewal of coverage for grandfathered properties that have been remapped into higher risk zones beginning 1/1/21. A grandfathered property is designated as any property built to FEMA’s required Base Flood Elevation and standards at the time of construction and is thus allowed to be grandfathered in to the zone and BFE at time of construction. Under current law, if your community adopts a new map and under the new map, your property is now below the Base Flood Elevation or you are remapped into a new zone, you are not forced to pay a rate based on the new base flood elevation. Those who played by the rules and built as they were told should not be penalized under new, sometimes inaccurate, maps. This scenario is what caused premiums to skyrocket post Biggert-Waters. A helpful overview of grandfathering can be found here.
 New Construction in Special Flood Hazard Areas (A or V zones) – The legislation prohibits offering NFIP coverage for new construction in the Special Flood Hazard Areas after 1/1/21. 
 Any structure with a $1M replacement value cost – The legislation prohibits offering NFIP coverage for any property with a replacement cost value of $1M+ in the Special Flood Hazard Areas after 1/1/21.
·       Rate Increases – The legislation increases the floor of rate increases from 5% to 8%, which compound annually. This provision will impact pre-FIRM subsidized homeowners, which is about 20% of NFIP properties. These properties are already on a glide path to actuarial rates, and Congress does not need to accelerate that. 
The Homeowner Flood Insurance Affordability Act retains the Biggert-Waters requirement that these properties move to actuarial rates but slowed phase in. Congress should not accelerate this mandate. Further, if the provisions regarding grandfathering outlined above are implemented, grandfathered post-FIRM properties will be subject to this increase as well. 
My special thanks to Doug Izzo and the Tampa Bay Beaches Chamber of Commerce for providing us this invaluable source of information.

• BUYER  GUIDELINES AND TIPS
• LEGISLATIVE  NEWS
• FINANCING TIPS

BUYER  GUIDELINES AND TIPS

In the National Association of Realtors 2016 Profile of Homebuyers and Sellers, it was reported 90 percent of buyer and sellers used an agent during the real estate process.  This was not only to negotiate a deal or handle the mountain of paperwork and disclosure issues in a given transaction.  Given the present day  preponderance of on-line data, the plethora of misleading valuations and false realities, and the  well-meaning advice of family and friends, an overwhelming number of buyers eventually  sought  the help of a Realtor.  They looked to a professional real estate counselor as someone they ultimately trusted to help them identify and purchase the most suitable location, properly priced, also affordable, property for their individual needs and wants, and to guide them to the appropriate financing sources.

Buyers need to come to the table with a firm understanding of what kind of home they need and what they can afford to pay for it.  They should narrow their  search to neighborhood(s) that suit  their work, play, school, lifestyle;  they should have an idea of their plans for that home in say, five years.

It’s interesting to note during 2016, for the third year in a row, the average age of a typical homebuyer was 44 years old.  The largest number of buyers were married, but the percentage of single female observed opportunity for single women is making home-buying more feasible for them.

Inventory is now at a 20 year historic low.  Credit, although easing a bit over recent years, remains tight.  Documentation requirements are quite detailed.  Sellers are understandably leery of buyers who have not aligned with a mortgage professional, let alone who have not even started the process with a lender, before viewing their home.    When you find the right home, do everything possible to be, and be viewed in, the best position you can to buy that home, or you could lose it..

 Be Prepared!

To Inman News (www.Inman.com/2016/11/02/poll), there are three major mistakes made by  first–time homebuyers…and they are worth calling to mind for even the  seasoned buyer, especially the one who is in a relocation situation, simultaneously selling and buying, with tight moving deadlines:

• •  Not talking to a lender first…   ‘Pre-qualified”  means a lender has taken a simple glance at your credit score and you’ve had a quick conversation about income.  Get a “pre-approval” which means you have provided that lender with the required income documentation .  Get your paperwork in order, including 3 months asset account statements, two years IRS Returns, paystubs, paper trail of down payment.   A seller will consider your offer stronger if you are pre-approved,  and if you’re competing with a cash buyer, this may be the only foot you have in the door.
  • Waiting too long to make an offer…do your homework, vet your  real estate agent so you feel confident in his or her guidance, narrow your wish list, and search only the most plausible areas and price range for the features you want.  Do your part, i.e. communicate with your agent, and be ready to step up when you find the right property.
  • Offering too little for properties…    Making a strong offer doesn’t necessarily mean making a full price offer.  Sometimes sellers are working in a tight transfer situation, sometimes their property, for whatever reason,  has lingered on the market longer than others in the same area.  A Realtor can  help you determine if these are meaningful considerations when making your offer, and also help you evaluate that market and prevailing conditions and pricing so you feel confident you are not over-paying.

Ten times out of ten, rather than making a low ball offer to that seller, which can immediately move him into an antagonistic position, it’s better to make an offer that at least seems fair or well-thought-out.    There are times, even  where he may not have considered it acceptable under different circumstances, a seller may be inclined to accept rather than counter… given your quick action, your financial qualification, the proposed length of escrow, the number of contingencies you put in the contract.  There are situations where price is not the only seller motivation, terms might play a major role, and your own qualification, sincerity and stability weigh in..  In any event, listen to your agent, and when you decide to make your move, give thought to the structure of your offer and keep it reasonable.

LEGISLATIVE NEWS

April 28, 2017, Tallahassee, Fl.  HB-483/SB  398 has passed, thanks to a multi-year effort by Florida Realtors to reign in the astronomical fees some association management companies have been charging sellers for estoppel certificates when they go to sell their units.

A title  company closing a condominium sale will require an estoppel certificate  be ordered and paid for by the seller, it is an affidavit from the HOA management company that seller is up to date with homeowner association dues and any other pending assessments as of the date of closing and transfer to a new owner.  Whereas a management company should by definition of duty have this information at their fingertips, there has been no control  on what is considered a fair charge for a relative courtesy, putting this information in writing, in the form of a letter of affidavit, to the title company on the seller’s behalf.   

Up to now there has been no cap, no legislation stating what is considered a “reasonable fee” to charge a seller for this letter..    Across our State, there have been  estoppel fees reported as high as  $1610, charged to the seller  of a property that sold for only $190,000!
 
Once signed into law, the statutory cap will go a long way to curb exorbitant fees charged many owners of condos / deed restricted communities by association management companies.    The cap is now proposed to be $250 per unit for owners who are current in their assessments.  An additional  $100 can be charged for “expedited” estoppel certificates (delivered within 3 business days), and another $150 can be charged if that owner is delinquent in assessments.  Thus the maximum will be $500 for a single delinquent expedited estoppel certificate.  There will be a standard estoppel form used across our State, and it will be valid for 30 days.  

Thank you Florida Realtors!

FINANCING TIPS

The Home (Mortgage) Run…
When buying a home, or refinancing your present mortgage, it’s wise to consult a mortgage specialist to match your individual needs and goals with the right mortgage, in this case  a Fixed Rate Mortgage amortized over 15 years versus 30 years.  If you borrow $100,000 for 15 years at an available rate of 3.65% you’ll end up paying $130,008.60 in principal and interest.  Borrow for 30 years at a rate of 4.02% annual interest rate, you’ll pay $172,284.85.  Thus you’ll save $42,276.25 if you can afford the 15-year loan with a monthly payment of $722.27 versus $478.57 per month for a 30-year program.  The $243.70 extra per month adds up to $43,866 over the 15-year term of the loan.

However, consider this:  each year that a mortgage amortizes, a smaller portion goes to pay interest…which is tax deductible … while a larger portion repays principal.  As you continue to lose deductions you must earn more pretax dollars to make the monthly payments.  Consult your tax advisor.  Depending on your tax bracket, you may need to earn more than a dollar pretax, say $1.43 per dollar at a 30% tax bracket, to pay each nondeductible dollar.

After accounting for lost interest deductions, let’s look again at this scenario.  You would need   $154,750 in pretax income to pay off the 15 year loan.  But with more dollars going to interest, you would need to earn just $146,442 to make 15 years of payments ($8,6142) on the 30-year loan.  The difference, $8,308 is the  cost of making extra payments totaling $43,866 on the 15 year loan .

Although you still owe $86,142.43 on the 30 year mortgage after 15 years, the lower payment lets you save $243.70 per month.  If you have the discipline to invest these monthly savings, say in stocks or mutual funds, and the portfolio returns 10% after tax over 15 years, it could grow to enough to pay off your mortgage with a few dollars left over.  ……All food for thought perhaps, in a perfect world.  Consult your personal financial advisor.

Here’s an example of one solid strategy if you select a 30 years program…make one extra payment each year on the anniversary of your loan, you will pay off your 30 year mortgage two years four months early, saving $8,322.24.

The bottom-line advantage of a 30 year mortgage is flexibility.

RECENT MARKET STATISTICS

Pinellas County…
David Bennett, CEO of the Pinellas Realtor Organization, reports some powerful numbers ending the first quarter of 2017 in our County. Dollar Volume for Townhomes/Condos was $199.3 million in March 2017, an increase of 35.6% from $147.0 million in March 2016. Dollar Volume for Single Family Homes increased 21.5% year-over year, with $408.9 million in 2017 versus $336.6 million in March 2016.   Median time for contract and sale has reportedly decreased across the board.  The Median Sale Price for Single Family Homes was up 15.0% from last year, at $230,000 for March 2017 versus $200,000 for March 2016. Average Sale Price for Single Family Homes grew 16.0%, at $299,356 in March 2017 versus $258,152 in March 2016. The Median Sale Price for Townhomes/Condos was $139,000 for March 2017, up 4.5% from $133,000 in March 2016. Year-over-year, Closed Sales for the Single Family segment were up 4.8%, and Closed Sales for the Townhome/Condo segment grew an impressive 26.3%.

New Listings for Single Family for March were 1,607, up 4.8% from last March, at 1,533. New Listings for Townhome/Condo for March 2017 were at 1,063, up 5.6% from 1,007 in March 2016. The strong seller’s market grew even stronger in March, with Months Supply of Inventory down 6.9% year over-year for Single Family Homes, with a 2.7 Month Supply this March, as compared to a 2.9 Month Supply in March 2016.   Months Supply of Inventory for Townhome/Condo fell an astounding 15.0%, with 3.4 months in March 2017 and 4.0 months in March 2016.

Representing more than 8,000 members, the Pinellas Realtor® Organization is one of the Tampa Bay area’s largest professional trade associations. The organization advances and promotes the real estate profession through professional development programs, government affairs, and political advocacy and maintains a high standard of conduct by real estate professionals through professional standards training and administration.

Two Historic Market Graphs,  Pass-a-Grille Area. ( including Don Cesar, Pass-a-Grille and Vina del Mar)

GLOBAL TRENDS HIT HOME:  RECAP OF GLOBAL TRENDS AND INTERNATIONAL ACTIVITY 2016/THE PINELLAS INTERNATIONAL COUNCIL, THE  GLOBAL REAL ESTATE PROFESSIONAL.

DYNAMICS OF THE VACATION/SECOND HOME MARKET

RECENT MARKET STATISTICS, PINELLAS COUNTY

CALLING ALL FIRST TIME HOME SELLERS

In this issue…

• BUYING HERE AND ABROAD: INTERNATIONAL ACTIVITY IN REAL ESTATE……
• VACATION/SECOND HOME/INVESTMENT/RETIREMENT ………
• A FEW FINANCING TIPS….
• RECENT MARKET STATISTICS…..
• WHY YOU SHOULD NEVER BUY OR SELL WITHOUT AN AGENT…

The PROFILE OF INTERNATIONAL ACTIVITY IN U.S. RESIDENTIAL REAL ESTATE is out, published by the National Association of Realtors on 7/6/2016. The report finds the increase in price of U.S. real estate together with the depreciation of foreign currencies against the U.S. dollar has made foreign investment in U.S real estate quite a bit more expensive than during the previous survey period. The median sale price of an existing home became 45% pricier for Venezuelans, 24% pricier for Brazilians, and at least eight other countries including China and Canada saw a double- digit increase measured in their country’s currency.

Yet foreign buyers purchased 214,885 residential properties, approximately 3 % more than in the previous 12 month period.

Foreign buyers typically purchase more expensive properties. The median purchase price this period slipped to $277,380, from a year ago, $284,900, due to a lower number of non-resident foreign buyers. But overall foreign buyers most commonly purchased a home priced between $250,000 and $500,000 while 10 percent paid over $1 Million or more.

Exactly half of all international transactions were all cash purchases, slightly down from the 55% a year ago, but still roughly double the overall share of existing sales. Predominantly all cash purchases were made by non-resident foreign buyers, 73%, and by those from Canada, China and the United Kingdom. Five states accounted for over half, 51 percent, of the total residential property purchases made by foreign nationals: Florida, 22%, California, 15%, Texas, 10%, Arizona, 4%, New York, 4%.

According to this survey, the National Association of Realtors also notes a 50% increase in the number of Realtors who report working with U.S citizens to purchase property outside of our country….. topped by Mexico, then Costa Rica, Philippines, Colombia and Canada. The majority, 87% of these, planned to use the property as a vacation home or residential rental unit.

The 2016 NAR INVESTMENT AND VACATION HOME BUYERS SURVEY is highly significant for local markets. The report states U.S. vacation home sales are at a high level propelled by baby boomers’ demand for vacation homes. Down slightly from the 2014 peak, 2015 was still the second highest level since 2006. Furthermore, according to NAR chief economist Lawrence Yun, “the expanding pool of buyers amidst a dwindling number of bargain-priced properties led to tighter supply and fewer sales, causing the price of the vacation home to rise.” The median vacation home price nationwide was $192,000, an increase of 28% in 2015 over 2014.

RSPS, Resort and Second Home Property Specialist, is a designation of expertise in the vacation and second home marketplace, especially effective training where vacation and second home purchases represent a high percentage of market activity. We stay abreast of issues that can specifically affect the buying decisions of these buyers, while helping them attain and balance vacation, short term and long term investment goals.

For over 100 years Florida has been a top vacation market in our nation. Today visitors come from around the nation and around the world, to enjoy the natural beauty, recreation, many amenities and lifestyle our State offers. And every year a significant number of those visitors decide to buy a vacation home, to invest in property in our communities.

Are you looking for your own vacation home?… there’s no better place than the Tampa Bay area.
How about a second home or vacation retreat along our Gulf Beaches or beautiful downtown St. Petersburg? The market is tight, search here in real time:
CLICK THE LINKS BELOW FOR A LIST OF
ALL CONDOS, GULF BEACHES, PRICED UNDER US$300K
SF HOMES ON BEACHES PRICED UNDER US$500K
ALL BEACH WATERFRONT HOMES UNDER US$800K
ALL LUXURY NEW CONSTRUCTION CONDOS, (Beaches, Tierra Verde, St. Petersburg)
BEACH-FRONT SF HOMES ON THE GULF
IN REAL TIME!

Today U.S citizens and foreign nationals alike search the globe for retirement destinations, vacation/second homes, and investment properties.
Here is a fun article describing 25 different retirement destinations across the globe……. including Ottawa, CA; Aurora, Colorado; Portland, Oregon; Panama City, Panama; Cascais, Portugal; Kilarny, Ireland; Valencia, Spain; Managua, Nicaragua; Bordeaux, France….. Charlene Oldham, March 25, 2016, writes, “retirement means more than golf and gardening for an increasing number of Americans looking for fun outdoor activities, international adventures and cutting-edge cuisine later in life. And while there are countries, cities and states that offer more affordability for retirees, the best place to retire really depends on what you’re seeking.”

….Check it out! “25 Coolest Places To Retire In The World,” by Charlene Oldham.
(https://www.gobankingrates.com/author/charleneo/)

Real Estate Professionals who have attained the Certified International Property Specialist (CIPS) Certification and are Trans National Certified (TRC) are adept at guiding global real estate investors, either foreign nationals entering our country to purchase a property, or U.S. citizens wishing to buy property abroad. We are part of a unique global network of real estate professionals who share resources and business ethics, who achieve specialized training on critical aspects of the international transaction, including regional market and cultural differences, differences in business practice and types of ownership, closing procedures, exchange rates, tax issues, title issues…

A FEW FINANCING TIPS I’VE FOUND USEFUL IN MY BUSINESS….
3% Down Loans!… Lenders are now offering 3% down conventional fixed rate loans up to $417,000… Minimum credit scores range 620 or better, down payment assistance may be available through gifts or community assistance programs and may require borrowers to complete homebuyer education courses. Banks are offering these loans as they cut back on their origination of Federal Housing Administration loans (FHA) , federally insured loans which they consider more costly and riskier, and penalty- laden if mistakes are made in the origination.

A note on the FHA front… NAR’s recent Call To Action campaign and Realtors who responded helped push HR 3700, the “Housing Opportunity Through Modernization Act,” through the U. S. Senate unanimously, already passed by the House. This bill when signed by the President, will roll back FHA restrictions on condominium financing, among other provisions, specifically lowering the owner-occupancy requirement. This move will help first-time home buyers and lot-to-moderate buyers enter the condo market, surely, but it will also boost the ability of retirees to attain FHA insured Reverse Mortgages and stay in their homes with more comfort.

Jumbo loans, which were once considered riskier loans and carried higher interest rates, now carry lower interest rates than conventional, conforming, loans. Over the past couple years the spread in annual interest rate between the jumbo loan and the conventional home loan has narrowed. Formerly around 1.5 %, this spread narrowed to around 1% difference a year ago, and recently has flipped. Smaller loans, conventional loans, are backed by Fannie Mae and Freddie Mac, Jumbos are not, which made them inherently riskier. But conventional loans are now more
expensive for lenders to offer, and so the thinking goes, the well heeled borrower presents less risk of default, thus a better bet overall.

With the uncertainty that followed the Brexit vote and the strong dollar, U.S. interest rates receded, and it is generally expected the Federal Reserve won’t raise our interest rates anytime soon, at least not until next year. This will likely entice new buyers and investors to enter our real estate markets. Not being a financial analyst or economist or any sort, I advise everyone to consult your financial advisor. But several rules of falling mortgage rates seem especially prudent to me now, as described by Lou Barnes, Inman.com, June 21, 2016. Written before the Brexit vote, he states odds may favor slightly lower rates. But it’s likely most prudent to think the downtrend is past, don’t expect or even hope it will continue. The time is Now. Don’t consider an ARM unless the spread between fixed and adjustable is wide, i.e. Not Now. Why buy with a 15 year loan when you can take advantage of these low rates for 30 years? Why be in a hurry to pay back a loan at these historically low rates? Build equity, enjoy your retirement, diversify investments….

RECENT MARKET STATISTICS BEGINNING WITH NATIONAL REAL ESTATE TRENDS: Florida Realtors News and Events, 6/29, article picked up a CNBC 6/23/16 source, “New Warning Lights for Rising Home Prices.” This article reflected a report by the National Association of Realtors (NAR) that the national median price of an existing home reached a new record in May, $239,700, a price primarily driven upward by repeat buyers trading up or downsizing from current homes. Opportunities for first-time home buyers continue to dwindle, however, due to affordability issues. According to NAR’s chief economist Lawrence Yun “We’re seeing flashing yellow lights on affordability,” where home prices are rising way too fast compared to people’s income and wage growth. Even with historically low mortgage rates we are facing housing affordability challenges. Rental demand has been fueling construction activity, but multi-family housing starts are beginning to slow as most of this activity was centered in higher-priced urban rentals where supply is now high, points out Diana Olick, CNBC Research analyst. While low mortgage rates and job growth create healthy demand, the tight supply of homes on the market continues to constrain sales….’a pressure cooker effect,’ says Andrew LePage of CoreLogic…where the
traditional pressure release valve, new home construction, isn’t helping much, given new home sales are running over 40 percent below historically normal levels.

A global client asked me last week about buying existing multi-family housing. Current trends indicate this could be a valid investment opportunity, there is housing demand especially in areas of economic growth and availability of entry/mid level jobs, or where single family home inventory is limited, or where millennials and young families are often priced out of owning their own home. ( On real estate as an investment vehicle, a good read, Real Estate Investing by Amelia Josephson, March 29, 2016, https://SmartAsset.com/investing/real-estateinvesting.)

…Continuing to the PRO (Pinellas Realtor Organization) Statistics Report for June, 2016 for our County:

As reported by PRO, compliments of David Bennett President and CEO: Pinellas County Real Estate Statistics for June 2016 show an Absorption Rate for Single Family homes has risen steadily this year to an all-time high which dates back as far as January 2012. The Absorption Rate is the rate at which homes are selling in a given timeframe.

• The number of Closed Sales for Single Family homes for June 2016 was up 0.3% over June 2015, while Closed Sales for Townhome/condos was up 3.6% over June 2015.
• Median Sale Price for Single Family was $220,000 this June, versus $185,000 last June, a huge increase of 18.9%. Median Sale Price for the Townhome/Condo segment was also way up from last June at 16.7%, or $140,000 for June 2016 versus $120,000 for June 2015.
• New Listings for Single Family for June 2016 were 1,493, up 5.2% from last June, when they were 1,419. New Listings for Townhome/Condo for June 2016 were 761, up 1.3% from 751 in June 2015.
• While New Listings for single family and Townhome/Condo were up slightly from last June, Total Active Listings for June 2016 Single Family and Townhome/Condo combined were down 6.9% from June 2015.

Thus Months Supply of Inventory continues to reflect a seller’s market when priced astutely. Single Family inventory is down 13.2% year-over-year, with a 3.3 month supply this June, as compared to a 3.8 month supply in June 2015. Months Supply of Inventory for Townhome/Condo was down 9.1% year-over-year, with 4.0 months in June 2016 compared to 4.4 months in June 2015. Active listings for June 2016 Single Family and Townhome/Condo combined were 6,707, down 6.9% from 7,207 in June 2015.

(Representing nearly 7,000 members, the Pinellas Realtor® Organization is one of Tampa Bay area’s largest professional trade associations. The organization advances and promotes the real estate profession through professional development programs, government affairs, and political advocacy and maintains a high standard of conduct by real estate professionals through professional standards training and administration.)

THE HOME SEARCH AND HOMEBUYING TRENDS ARE SHIFTING with the rise of digital technology, and it appears today’s consumer may be searching for the next best thing sooner rather than later. More frequent moves might be the norm rather than the traditional 5 to 7 years, given how everything has sped up in recent years.

But industry specialists find roughly three quarters of Americans who are looking to buy a home want to work with… have in their pocket… at their back side…both a mortgage professional and a real estate professional. If they’re serious. Especially seasoned buyers. And most sellers don’t try to sell without a Realtor, whether first time sellers or seasoned sellers.They want expertise in Pricing, Positioning, Predicting, Presentation/Staging, Marketing, Negotiating, Problem Solving, Market Knowledge, Exposure, Community Involvement, Professional Networks, Inspections, Repairs, Service Contractors, Connections, The Closing Process….

And if you’re also going for Experience, Trusted Advisor, Available Point Person… Call me.
Surprise is never a good thing when it comes to buying or selling a property.

Topics for June

• GLOBAL TRENDS HIT HOME
• THE DYNAMICS OF HOME FLIPPING
• A FEW FINANCING TIPS
• RECENT MARKET STATISTICS

TAMPA BAY is in the TOP 10 U.S. CITIES SEARCHED BY INTERNATIONAL CONSUMERS

Realtor.com has released data from a recent analysis of global consumer searches:  1st place was Miami, 5th was Orlando, and TAMPA BAY is 7th!… exceeding even the most enthusiastic expectations of real estate professionals in the global arena.

One such group is the Pinellas International Council, which operates under the umbrella of the Pinellas Realtor Organization.  The PIC mission is to promote our area to other global real estate organizations so that we generate worldwide recognition of our beautiful Gulf Coast of Florida, our unmatched location and access,  our opportunities for living,  vacation, retirement, investment, business growth, recreation, sports, beaches,  our vibrant cultural community….  PIC promotes education and understanding  to encourage investment in our home communities. These goals are being achieved, as confirmed by this recent Realtor.com survey, through educational programs, conventions, cultural exchange events, and  professional interaction and cooperation with and  among real estate professionals around the world.   At any point in time PIC  consists of approximately 12 volunteer and  nominated directors and chair persons, PRO staff, and several hundred Realtor members and Affiliates  who expand our own  business  opportunities and resources globally to benefit our consumers as well as our Realtor association,  while exhibiting  high professional standards  and generating positive economic and cultural impact for the communities we serve.

Many accomplished Realtor members build on this focus by pursuing  NAR’s (National Association of Realtors) CIPS Certification.  Through this  program a Realtor is awarded the Certified International Property Specialist certification, joining an inspiring network of professionals around the world who  take extended courses, train and partner with  associated global professionals,  to provide an exclusive level of service, knowledge, resources and expertise to all our  consumers, sellers and buyers …whether it’s our  next door neighbor Harry, looking for a vacation home in Costa Rica, or Antoine over in France  who wants a condo on St. Pete Beach.  The recent count of CIPS designated real estate professionals totals about 2,804 worldwide,  in 40 different countries including the USA.  It is an elite group.

Home Flipping Trends

The Florida Realtor Association published an article in their Florida Realtors News on-line edition of 5/9/2016 containing the following statistics and  sourcing about  home flipping:    RealtyTrac is a real estate information company, also an online marketplace for foreclosed and defaulted properties in the United States. It was founded in 1993 and is based in Irvine, California.  First Quarter  2016 RealtyTrac reports Home Flipping at 6.6 % of single-family and condo sales nationwide, a 20% increase quarter-over-quarter and a 3% increase year-over-year…still 26% below the peak of home flipping activity, which was 9% of home sales in the first quarter of 2006…still impressive.  A Home Flip, for this article, is a property that is sold in an arms-length transaction for a second time within one year of the most recent sale.

Home flipping can be positive for a housing market especially when it is responsible, but when it becomes too aggressive or careless financially,  it can contribute to an unbalanced market or produce unrealistic pressure on the market.  Controlling factors can include investors who use their own money, as a healthy degree of caution is built in.  Also a controlling factor is the availability of third party financing for such transactions.  Realty Trac reports 71% of home flippers currently pay cash while only 37% paid cash at the height of the flipping boom prefacing the recession..

RealtyTrac further reports that Florida metro areas have hit a new high, 1 in 10 homes are sales involving a flip.  The Tampa Bay area exceeded the national average by 10.8%.  Obviously there is profit to be had for the savvy real estate investor.  I am working with a gentleman who currently owns about 250 properties which he is in some stage of flipping.

In short, responsible flipping activity can be a management-intensive and lucrative operation as well as a beneficial impetus to markets.  Of course, like anything else, there can also be too much of a good thing.

Some market effects related to home flipping  may prove unsettling…… Home shopping has turned out to be a frustrating operation for  several Realtor friends and  would-be home owners.  Home flipping surely  could contribute to this in some arenas, magnified by an already low inventory market.  This includes all price ranges, but it  seems  most frequently to affect homes priced in lower to median price ranges and even up to around $300k or $350k, depending on the local market pricing parameters.  It is a range where first time home buyers/owners and young families moving up might expect  to purchase a home.

I understand some of my fellow agents are carrying a standard ‘as is ‘ purchase contract form for every home they arrange to show a buyer in some of our extreme  low-inventory areas.  They have learned if their buyer decides he wants to buy one of the properties they see that day, they should present a purchase offer then and there.  If it is a particularly good or suitable property or reasonable buy, the property is likely to have another offer before the agent can return to her office to write one up.

Any buyer who needs a mortgage to finance his purchase faces competition from all-cash buyers.  Cash is king for most home sellers, especially including REO bank owned situations, and the home flipper is most likely ready with his own cash funds available to make his offer appealing…. which leaves a lot of folks shut out of these “deals”, including first time home buyers and, young families.  For them, home shopping becomes an ORdeal and sometimes a heart breaking one.  That is why it is important buyers work with a professional, take the right steps in the right order, work closely with  their agents to be ready to move quickly, and to obtain proper written proof of pre qualifying for their purchase through a mortgage originator or financial institution prior to the first shopping trip.  That is why it is important that these buyers be able to find  appropriate financing in the first place, which they can afford, so their offer to a seller to purchase his property is as strong as possible.

Cause and effect, opportunity or not, metro areas change.  Only seasoned economists would try to predict how close we might come to some home flip pressure cooker effect.  How will our communities and metro areas and demographics transform or evolve in years to come?  What I can say for sure is the movement of real estate is a fascinating study and will always play a dominant role.

A few financing tips I have found useful in my business…..

VA Mortgage Guarantee Financing is available in our area for up to $750K for owner-occupied single family home purchase.

Conventional mortgages, both fixed and adjustable programs, may be re-negotiated once in their lifetime, generally for a fee somewhere around $350.  For example, I  have a conventional fixed rate mortgage for $400K at 4% annual fixed interest rate for 30 years, my principal and interest payment is $1908.66.  Say I inherit some cash, or sell another property I own 3 years later and I  am able to make a lump sum payment to principal in the amount of $200K.  That  leaves me with a $200K mortgage balance.  I would be able that one time, to  request my mortgage be re- amortized at the lowered principal amount of $200K.  I pay my mortgage down to $200K principal balance and re amortize it  over the remaining 27 years at  4% even if the market interest rates had increased since my original purchase….thus my new payment, over the remaining 27 years, would be $1010.42.

…Great Information….for example, for the buyer who wants to buy a retirement home, but for whatever reason he has not yet sold his home up north. He doesn’t want to be strapped with a big mortgage for life, and refinancing is expensive with additional risk that rates may be higher a year or so down the road..  This plan allows the buyer the flexibility to buy the retirement home now and substantially lower the mortgage payments once he retires or sells his other property without refinancing

Real Estate Statistics Summary

Now for a summary of recent Pinellas County Real Estate Statistics for April 2016, taken  from information published monthly to Realtor members of our Pinellas Realtor Organization by CEO David Bennett.

Single Family Inventory is down 9.6% from April 2015 and Single Family property inventory is  sitting at a 3.4 month supply  for April 2016, the same as March 2016.   Townhome/condo supply sits at a 4.3 months in April 2016 compared to 4.9 months in April 2015.   Markets are moving across the board and  buyers can continue to expect a very competitive Single Family market in Pinellas County for well priced listings.    Comparisons are made on a year-over-year model so that seasonal fluctuations are not a factor of the analysis.

The number of closed sales for Single Family and Townhome/Condo combined for April 2016 was 2,202, up 4.8% from 2,102 in April 2015.   Year-over-year, the Single Family closed sale segment was up 0.9% and the Townhome/Condo segment was up considerably more, 10.6%.   County-wide Median Sale Price for Single Family was $200,000 this April, versus $180,000 last April, a substantial increase of 11.1%.  Median Sale Price for the Townhome/Condo segment was up 9.1% from last April, at $138,000 for April 2016 versus $126,500 for April 2015.

New Listings for Single Family for April 2016 were 1,512, up 3.9% from last April, when they were 1,455.   New Listings for Townhome/Condo for April 2016 were 952, up 3.9% from 916 in April 2015.    Months Supply of Inventory for Single Family was way down again, 17.1% lower than last April.   Months Supply of Inventory for Townhome/Condo was down 12.2% year-over-year.   Active listings for April 2016 Single Family and Townhome/Condo combined were 7,035, down 7.0% from 7,562 in April 2015.

Summary:

• Closed Sales April 2016, 2202/ April 2015, 2102, +4.8%
• Paid in Cash, April 2016,974/April 2015, 989, -1.5%
• New Listings, April 2016, 2464/April 2015, 2371, +3.9%
• Inventory (Active), April 2016, 7035/ April 2015,7562, -7.0%

(Representing nearly 7,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations. The organization advances and promotes the real estate profession through professional development programs, government affairs, and political advocacy and maintains a high standard of conduct by real estate professionals through professional standards training and administration.)

Best regards,

joan

BE   SMART   WHEN   LISTING  YOUR   REAL   ESTATE   FOR   SALE

Statistics are out for Pinellas County Real Estate Activity, March 2016, thanks to the Pinellas Realtor Organization* and CEO David  Bennett. This is a county-wide  report; there will be individual communities that experience  somewhat different models. Generally speaking the best news for a healthy real estate market, properly priced properties sell.

For Pinellas County as a whole, homes went under contract more quickly and closed faster for more money year-over-year for March. Closed sales for Single Family and Townhome/Condo combined for March 2016 was 2,069, up 1.9% from 2,030 in March 2015.  Broken down,  Single Family sales were up 18.7% and Townhome/Condo sales were down 2.2% year-over-year.  The median sales price for March 2016 was $200K whereas March 2015 it was $175K.  Active listings (inventory)  are down all around from last year this time.

Last month Florida Realtors® added the Median Percent of Original List Price Received statistic… For Single Family, it was 95.9% in March 2016, up 1.8% from 94.2% in March 2015. Townhome/Condo was 94.5% in March 2016, up .07% from 93.8% in March 2015.  Reminder, this is County-wide.

Summary Statistics March 2016 compared to March 2015:

• Closed Sales…  Up 1.9%
• Paid in Cash… Down 10.4%
• New Pending Sales… Down 7.9%
• New Listings… Up 1.7%
• Pending Inventory… Up 1.8%
• Inventory (Active Listings) Combined Single Family Homes & Townhomes/Condos… Down 7.9%. 

*Representing more than 6,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations. The organization advances and promotes the real estate profession through professional development programs, government affairs, and political advocacy and maintains a high standard of conduct by real estate professionals through professional standards training and administration.

If you are a prospective seller you’ll likely interview a number of real estate professionals in your market to determine your best “fit”… i.e. the overall reputation, the expertise, the networks and marketing plan offered, the references, the service you expect and the hands on management of the program best suited to your specific goals.

You next major decision will be PRICING.

The following graphic was generated directly off our MLS Matrix system for St. Pete Beach, 33706.  It shows the spread between the median ORIGINAL offering/list price and the median price where these properties actually sold. What must be factored into your pricing decision is time on the market, because it is proven today just as it was before we had computers, the longer a property sits the lower the sales price.

The take away is this, pricing a property for the most successful sale is not only a science,  based on what actual statistics tell you, it is also an art that the professional Realtor develops over years of experience and intimate study of your home real estate market and the relative sales climate at any given time.

I just read a great article written  by Joseph A. Rand, a managing partner of Better Homes and Gardens Real Estate, which was  published in an on-line newsletter dated  5/1/2016 in the  professional real estate journal, Inman.com .  Here I’ve paraphrased and commented on his valuable discussion about  the  6 BIG MISTAKES sellers  make in pricing their property.

1.   Biggest mistake, pricing to what has not sold rather than what WAS sold.

When I was a new Realtor the saying went like this, “Price a little high, and a little low…”  given a stable market, you can successfully price a little higher than what just sold, but also price it  lower than what is currently offered  for sale, i.e. the competition.

In today’s world, the real estate market is quite transparent, and consumers have many sources available at their fingertips to educate themselves about  current and historic market trends locally as well as globally, along with all specific sales data.

2.  Overvaluing the amenities.

What is important to one owner may not be important to another, or even preferred, such as granite countertops and high end fixtures and appliances.  Even a pool may be a drawback, perhaps for  an out -of -town owner who doesn’t prefer the added maintenance and liability, or a  family with an infant who are concerned about family safety.

3.  Reflecting improvements you’ve made dollar for dollar in the list price for your home.

Although not a set rule,  buyers may not appreciate the improvements you’ve made along the way as much as you did when you    paid for them, especially if they’re a bit out-dated or used up.   A car never brings the same price 5 minutes off the lot.  I believe it’s safe to say, dollar for dollar return, a fresh coat of paint and/or colorful or pleasant manicured curb appeal is your best investment…after de-cluttering, de-personalizing the home as much as possible so that it appeals to the widest range of prospective buyers.  They are not buying you along with the house.

4. Pricing with your next home purchase needs in mind.

Buyers won’t care what you need to net for your next purchase.

5.  Pricing according to on line computer estimates, Zestimates, automated valuation models.

These sites are available everywhere, even on some agents’ websites (!), fun tools to “see where you are today”…  But these are macro-level, at-a-glance  unwarrantable  valuations  that no one, even the people who create them, believes to be accurate enough or substantive enough to be  dependable indicators of where a property is properly placed on the market.  A good buyer, one who will pay the price,  will also seek professional guidance and expertise.

An example given by Mr. Rand:

www.inman.com/2015/02/23/have-a-problem-with-zestimate-more-avms-are-coming-your-way

“For homes with Zestimates of , say, $400K, only half those homes are going to sell inside a range of about $368K to $432K.  The other half is worth more or less than that range.”  What if an agent knocks on your door and suggests you list your home in a range of $368k to $432K, then adds he’s confident you have a 50% chance of selling it in that range….?  That’s essentially what you get with an AVM.

6. Ignoring feedback and traffic indicators.

Really look at the listing to selling to time ratios when you price your property.   AND once you have listed your property on the active market,  stay engaged.  Listen to what the market is telling you:  listen to what buyers are saying and feedback from showing agents, watch the traffic patterns, on-site and on-line, keep up with what your neighboring competitors are doing, and find out what your  prospective buyers bought instead of buying your property.

Your agent should be prepared, in writing,  to help you make an informed decision about pricing your property.  Then your agent will be kind, your agent will be understanding, and  ultimately your agent will do his or her best job to continuously counsel you and to ensure you’re not still sitting in your home six months later, along with the other Un Solds.

I’m happy to provide any reader a  3 month  snapshot, real time, of  market statistics in our  community.  I’ll also  provide  a more detailed  report  containing a wealth of information on your community, current and recent  statistics as well as real estate market trends in your area.

Further, I can provide an  analysis of  a specific property in relation to these statistics and trends, valuable information for assessing  the proper market position of any residential property in the area…and for establishing the proper marketing plan if you’re ready to sell.

TIME IS MONEY.  BE SMART, INTERVIEW, ASK QUESTIONS AND DISCUSS VIABLE GOALS.   A REAL ESTATE AGENT’S PRIMARY GOAL IS HELPING YOU REACH YOURS.

If you’d like to receive a comprehensive, professional report to help you assess the viability of your goals in investing, selling, buying or remodeling  a property, please contact me today.