Sanibel Island News

Keeping you updated on the market! For the week of February 6

2012-02-07T12:58:00.000-08:00

MARKET RECAP
Some weeks we feel like Sisyphus: We push the boulder up the hill only to have it roll back down again.
This is one of those weeks. Home prices, which were pushed higher through the first nine months of 2011, began rolling back in the fourth quarter of 2011. Unfortunately, it appears they are not finished rolling.
The latest price data from CoreLogic certainly isn't encouraging on that front. CoreLogic's home price index shows that home prices fell 4.7 percent in 2011, thus marking the fifth-consecutive yearly drop. The positive takeaway is that when distressed properties are excluded, home prices only dropped 0.9 percent. The unfortunate takeaway is that CoreLogic sees distressed properties exerting their negative influence through 2012.
S&P/Case-Shiller's home price data was equally frustrating. According to Case-Shiller, home prices were down 3.7 percent year-over-year in November, with 18 of the 20 markets its follows posting loses. We can take some solace in knowing that the aggregate data were skewed by an 11.8 percent drop in Atlanta and a 9.1 percent drop in Las Vegas. Remove Atlanta and Las Vegas, and the data suggest a more price-stable market.
It's easy to get discouraged when you think markets have turned for the better, only to discover they continue to back track. We refused to get discouraged, though, because there is always good news to found.
Consider homebuilders. Their sentiment and activity have improved palpably over the past few months. Residential construction spending, in particular, has been on the mend. In fact, the latest data from the Census Bureau show spending increased a robust 3.8 percent month-over-month in December, which helped lift the year-over-year rate into positive territory at 0.7 percent.
Another bit of good news for housing, and for all businesses for that matter, is that the economy continues to produce jobs. Automated Data Processing estimates that 170,000 new jobs were created in January. Over the past few months, payrolls have been growing at a monthly six-digit clip. More people earning a paycheck means more people spending and investing.
More people earning a paycheck also means more people who can qualify for a mortgage. And mortgages have never been cheaper. Rates fell again this past week after the Federal Reserve announced it will hold interest rates low through 2014. If you consider rates on an after-tax basis, you're looking at effective rates as low as 2.75% on a 30-year, fixed-rate loan. That's less than the rate of inflation.
We would argue that for most people it's more remunerative to finance a home at these low rates and then invest the money elsewhere than it is to use the cash to buy a home outright. Even though home prices have eased in the past couple months, we still think leveraging real estate is a smart move for buyers and investors with a long-term outlook.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Consumer Credit(December)
Tues., Feb. 7,3:00 pm , et
$10 Billion (Increase)
Important. Consumer willingness to take on more debt points to improved confidence and greater spending.
Mortgage Applications
Wed., Feb. 8,7:00 am , et
None
Important. Extended HARP will likely produce a surge in refinance activity in coming months.
Wholesale Trade(December)
Thurs., Feb. 9,8:30 am , et
No Change
Moderately Important. A rising sales-to-inventory ratio points to improving 1 st-quarter economic growth.
International Trade(December)
Fri., Feb. 10,8:30 am , et
$48.7 Billion (Deficit)
Moderately Important. The deficit has been rising on a stronger dollar.

Time for a New Game Plan
The latest news on falling home prices is frustrating because it appears to be a self-fulling prophesy that is difficult to escape: Falling prices generally spur demand, unless more potential buyers expect that prices will continue to fall, then prices keep falling. Unfortunately, more people believe home prices will continue to fall these days.
Falling mortgage prices, specifically rates, are also a negative, in our opinion. First, the prospect of even lower rates impedes potential borrowers and buyers from acting. If there is a good prospect of getting a better rate tomorrow, why act today? Rising rates, or at least the prospect of rising rates, as we've often argued, would get people moving again.
Ultra-low mortgage rates have also homologated the market, meaning everything fits a specific template because most everything is sold to Fannie Mae and Freddie Mac. Private investors simply can't compete with the government-subsidized loans that dominate the market today. This limits the amount of tailoring that can be done to make each mortgage product best fit the borrower's need.
We understand that mortgage rates are an important variable in home affordability, but affordability isn't as important as clarity on the outlook of the economy. If you are secure in you outlook, half a percentage point won't make much of a difference in your buying or financing decision.
Article courtesy of Patti Wilson, Senior Loan officer, Mutual of Omaha Bank.

Market Recap for the week of January 30, 2012

2012-01-29T11:03:00.000-08:00

MARKET RECAP
The data on housing were mixed this past week, but we would say that, for the most part, they listed more positively than negatively.
Last Friday, the NAR reported sales of existing homes rose 5 percent to an annual rate of 4.61 units in December. This marked the third-consecutive month of sales growth. This latest increase helped reduce inventory to 2.38 million units, the equivalent of a 6.2-month supply at December's sales pace.
Pricing was the one bugaboo in the NAR's data. The median price for an existing home was $166,100 for 2011, a 2.5 percent drop from 2010 and the lowest median price since 2002. This is a disappointment, but hardly a disaster. We’ve said many times that national numbers usually lack a meaningful connection to local markets.
The news on distressed properties was a little more encouraging. RealtyTrac reports that homes in some stage of foreclosure dropped 11 percent in the third quarter of 2011 compared to the previous quarter. Of course, part of the improvement is due to the ongoing matter of banks working through last year's auto-signing imbroglio. That said, our own anecdotal evidence suggests an improving distressed-property market.
The new-home market is also improving, just not so obviously. New home sales eased 2.2 percent to an annual rate of 307,000 units in December, which pushed inventory up to a 6.1-month supply. Like existing-home prices, new-home prices were also pressured for the month, with the national median price dropping to $210,300.
Recent new-home data suggest that December's numbers might just be a hiccup: Homebuilder sentiment has improved markedly in recent months, as has the longer-term sales trend.
Speaking of trends, the trend in mortgage rates is expected to hold for the long term. On Wednesday, the Federal Reserve stated that interest rates will remain low until at least through 2014, pushing back a previous date of mid-2013. According to Federal Reserve data, the economy simply isn't growing at the pace it had expected.
The impact of the Fed's revised policy was both immediate and palpable. Before the announcement, the 10-year Treasury note yield had been creeping higher and was yielding 2.06 percent just before Fed Chairman Ben Bernanke stepped up to the mike. After he had stepped down, the yield had dropped to 1.96 percent.
So it appears low base mortgage rates are with us for the long term, but that doesn't mean low-cost mortgages are. A r ecent increase in fees Fannie Mae and Freddie Mac charge lenders will push costs higher. Expect the fee increase to raise borrowing costs a quarter percentage point.
It's worth pointing out that we said “appears” in connection with low mortgage rates. Nothing is certain where the economy and investor behavior is concerned. To be sure, if we were forced to place a bet, we’d likely bet on January 2013 mortgage rates matching January 2012 rates. We suspect most everyone else would place that same bet. That fact, in and of itself, is a contrarian indicator that rates aren't necessarily destined to stay at today's levels.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
S&P Case/Shiller Home Price Index(November)
Tues., Jan. 31,9:00 am, et
0.1% (Increase)
Moderately Important. Prices weakened in the fourth quarter, but are showing signs of stabilizing in January.
Consumer Confidence(January)
Tues., Jan. 31,10:00 am, et
68 Index
Important. Improving confidence will help home sales heading into the spring-buying season.
Mortgage Applications
Wed., Feb.1,7 :00 am, et
None
Important. Activity dropped in the past week, but the four-week trend remains positive.
Construction Spending(December)
Wed., Feb. 1,10:00 am, et
0.2% (Increase)
Important. Spending on residential real estate construction continues to build momentum.
Productivity & Costs(4th Quarter 2011)
Thurs., Feb. 2,8:30 am , et
Productivity: 0.2% (Decrease)Costs: 0.1% (Decrease)
Moderately Important. The drop in productivity and costs reflects slower fourth-quarter economic growth.
Employment Situation(January)
Fri., Feb. 3,8:30 am , et
Unemployment Rate: 8.5%Payrolls: 105,000 (Increase)
Very Important. Falling job growth will further anchor low interest rates.

Buy Low, Be Happy
HomeGain.com, an online real estate marketing firm, recently released a study on homeowner satisfaction. HomeGain found that homeowners with the lowest cost basis were the happiest. Specifically, HomeGain found homeowners who acquired their properties for less than $75,000 were the most satisfied.
Now, HomeGain's survey might seem like an exercise in belaboring the obvious, but it's proof that price really does matter. Despite what has occurred in housing over the past four years, if you purchased a $75,000 home a few years ago, you're likely ahead on your purchase (which is why you're satisfied).
Though it might be obvious, HomeGain's point is, nevertheless, worth driving home to our clients. Price matters, and it matters a lot. Buying at a sufficiently low price can offset many sins.
Low prices are found mostly in depressed markets, which is the housing market today. Depressed markets are ephemeral, so if we want to maximize our clients' happiness in 2020, it behooves us to impress upon them the importance of buying today.
Article Courtesy of Patti Wilson, Senior Loan Officer Mutual Bank of Omaha.

Keeping you updated on the market! For the week of January 2, 2012

2012-01-02T12:02:00.000-08:00

MARKET RECAP
The news is understandably slow the week between Christmas and New Year's Day. The most notable release was last Friday's news on new home sales, which rose to an annualized rate of 315,000 units in November, a 1.6-percent gain over October.

To be sure, we have a long way to go until we reach the normalized construction rate of 1.5-million units per year. Nevertheless, we expect the new-home market to gain pace in 2012. After all, there are only 158,000 units in inventory. Even at the current slow sales pace, this equates to a record low six-month supply

Over the past three years, new-home construction has fallen far below historical norms and also below the level needed to keep pace with population growth. The fact is our country gains roughly 2.7 million people and one million new households annually.

You might not see supply as a problem. We are all familiar with the glut of distressed properties. Indeed, Bank of America expects eight million distressed homes to come to market over the next four years. These homes, we've so often heard, will continue to depress new home construction.
We view B-of-A's outlook with a skeptical eye. There is a likely prospect that many of these distressed properties will simply go away. Destruction is too frequently overlooked in many supply projections. A house is not a permanent structure. Many are destroyed by fire, wind and flood each year. Many more are lost through simple decay and abandonment. Based on U.S. Census data, 300,000 homes are lost annually. That number will surely rise in years to come.

In short, the math – low inventory plus more households minus more home destruction – suggests to us a rebound in new-home construction. We are not alone in this contention, either. Wells Fargo projects that housing starts will continue to rise each year for the next five years before reaching once again the normalized construction rate of 1.5-million units annually by 2017.

Of course, projections are one thing, betting on those projections is another. Here, we see an encouraging trend. Big money is starting to wager on housing. The Wall Street Journal reports that many large hedge funds are investing billions in housing-related investments. Other investors have followed suit. Shares of homebuilders are up 30 percent over the past three months, making them one of the best performing investments in the market.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Construction Spending(November)
Tues., Jan. 3,10:00 am, et
No Change
Important. Residential spending is accelerating and contributing more to economic growth.
Mortgage Applications
Wed., Jan. 4,7:00 am, et
None
Important. Markets are anticipating increased purchase activity to start 2012.
Factory Orders(November)
Wed., Jan. 4,10:00 am, et
2.5% (Increase)
Important. Growing order momentum is indicative of increased economic activity.
Employment Situation(December)
Fri., Jan. 6,8:30 am , et
Unemployment Rate: 8.7%Payrolls: 150,000 (Increase)
Very Important. Job growth is accelerating, which is encouraging for housing, but less so for low interest rates

Up For A New Year
As we approach the end of the old year nearly all of us stop to ask, “How will the new year unfold?” Of course, none of us know with any certainty the answer to that question, but it can be insightful (and fun) to ponder. So, how will 2012 unfold, at least as it pertains to the housing and mortgage markets?

Both markets will obviously be influenced by economic growth, which, in turn, will spur job growth. We see a pick up in economic growth and job growth in 2012.

The economy has been growing at a sluggish rate for too long now. The United States is unique in that Americans tire of pessimism quicker than most other cultures, and then we do something about it. In our opinion, rising consumer confidence points to a lot of pent-up demand that is waiting to bust loose, and will bust loose in 2012.

A pick up in demand, in turn, necessitates new hires. In fact, a recent survey by CareerBuilder.com found that nearly one in four employers is keen to add new permanent full-time employees. These employers are simply waiting for a clear sign the coast is clear. We think they will get that sign in the first quarter of 2012.

Greater economic activity will obviously impact the housing market. We see accelerated sales volume in both the new and existing home markets. We also expect to see prices stabilize in the first half of the year, and then appreciate perceptibly in the second half.

As for the mortgage market? This is much more difficult to call. The Federal Reserve has stated it intends to hold rates low through 2012. However, all it takes are a few persuasive signs that the economy is back on track, and the Fed could easily backtrack from its stated goals. All we can say is that we would be much less surprised to see mortgage rates 50 basis points higher six months from today than 50 basis points lower.
Article Courtesy of Patti Wilson, Senior Loan Officer, Mutual of Omaha Bank
(239) 357-0739
patti.wilson@mutualofomahabank.com

Market Recap December 12 2011

2011-12-12T07:50:00.000-08:00

MARKET RECAP
We tend to view most situations from an optimist's perspective, because optimists are more likely to see solutions that pessimists overlook; therefore, optimists tend to be better problem solvers.
Optimism, we have found, is also usually rewarded. The housing recovery has taken longer than most of us would like, but the market is recovering, and the recovery will likely gain pace as we progress through 2012.
Mortgage delinquencies are one area of continued progress. TransUnion forecasts delinquencies of 60 days or more will peak at 6 percent of all mortgages during the first quarter of 2012, and then fall to 5 percent by year's end. This is actually a continuation of a longer-term trend that has been overlooked: delinquencies this year are expected to fall 7 percent, which follows a 7 percent decline in 2010.
The trend in the National Association of Home Builders/First American Improving Markets Index is also cause for optimism. According to the index, the number of improving housing markets expanded for a fourth-consecutive month, rising 37 percent to 41 in December from 30 in November. The index states that the expansion in both number and geographic diversity of markets is proof that markets continue to grow more heterogeneous; that is, more dependent on local factors than national ones. This is a point we've been making for the past six months.
The news on pricing was less upbeat. CoreLogic reports that house prices dipped nationally month-over-month in October. Year-over-year, prices have declined 3.9 percent, but only 0.5 percent when distressed properties are removed from the equation.
A recent report by Barclays Capital should help ease pricing concerns. According to Barclays, the housing market will be buoyed by improving job growth and by the fact that prices for non-distressed properties are stabilizing without government support. On price stabilization, Barclays housing analyst Stephen Kim writes, “[W]e are amazed at how little attention it [the recovery in non-distressed homes] has been getting from the media and the street.”
We, on the other hand, are less amazed. We've been hammering the point on stabilizing prices for months, but we also know that bad news always sells better than good news.
Speaking of good news, mortgage rates continue to hold steady and near multi-decade lows. We've noticed that the yield on 10-year U.S. Treasury notes has trended lower most of this past week, which has been something of a surprise, given that the economic news, for the most part, has been positive.
Mortgage rates have been holding steady for the past month or so, but we think upward pressure is steadily building – mostly due to an improving economy and job growth (and for a reason we'll explicate below).

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Retail Sales(November)
Tues., Dec.13,8:30 am , et
0.3% (Increase)
Important. Consumers continue to spend more than sentiment measures suggest, thus portending higher economic growth.
Business Inventories(November)
Tues., Dec.13,10:00 am, et
0.5% (Increase)
Important. Careful inventory management coupled with incremental sales growth should lead to improved job growth.
Mortgage Applications
Wed., Dec. 14,7:00 am, et
None
Important. Refinance and purchase activity point to rising lending demand.
Import Prices(November)
Wed., Dec. 14,8:30 am , et
1.5% (Increase)
Important. Rising import-price inflation could pressure interest rates.
Producer Price Index(November)
Thurs., Dec. 15,8:30 am , et
All Goods: 0.1% (Increase)Core: 0.2% (Increase)
Important. Rising core prices (less food and energy) point to rising producer-price inflation.
Industrial Production(November)
Thurs., Dec.15,9:15 am , et
0.2% (Increase)
Important. Continued production growth will eventually stimulate lagging consumer sectors.
Consumer Price Index(November)
Fri., Dec. 16,8:30 am , et
All Goods: No ChangeCore: 0.2% (Increase)
Important. Lower gasoline prices have slowed consumer-price inflation.

HARP 2.0 and Supply and Demand
A few weeks ago, we wrote about changes in the Home Affordable Refinance Program, dubbed HARP 2.0. This latest incarnation of HARP will impact the supply-and-demand dynamics in the mortgage market, namely due to the removal of the 125-percent loan-to-value cap.
More borrowers will qualify for mortgage loans; that obviously means there will be more demand for mortgage loans. What's more, demand could increase sooner rather than later, particularly if borrowers who don't need HARP, but want to exploit today's low rates to avoid the possibility of a delay, ratchet up demand.
To be sure, HARP 2.0 will be a good deal for many mortgagors who have been unable to refinance because of diminished home equity. Many of these mortgagors will benefit, even if mortgages rates were to rise a full-percentage point or more.
Now, we're not forecasting a percentage point rise in rates when HARP 2.0 kicks into gear, but more demand does tend to raise costs, including the cost of mortgage financing. This is something borrowers who don't need HARP but who could take advantage of today's rates should think about, because many of them won't benefit if mortgage rates move significantly higher.
Article courtesy of Patti Wilson, Senior Loan Officer, Mutual of Omaha Bank.

Two Real Estate Reports Suggest Florida Rebound

2011-11-17T11:55:00.000-08:00

CHICAGO – Nov. 17, 2011 – Two national studies – one from Realtor.com and one from Trulia – suggest that some Florida markets are poised for a real estate rebound.

“This is a positive trend for Florida,” says John Tuccillo, Florida Realtors chief economist. “While Trulia and Realtor.com aren’t completely accurate in home prices and sales – mainly because they base their numbers on only homes listed on their website – it’s useful to look at visitor behavior and note the trends. If Trulia says more visitors are doing a home search in the Miami market, for example, it probably follows that Miami is experiencing an upswing in demand.”
Realtor.com’s Top Ten Turnaround Report

In Realtor.com’s “Top Ten Turnaround Report,” six Florida cities were considered good bets for an upswing in sales. Realtor.com, which is owned by The National Association of Realtors®, says it created a formula to rank a city’s turnaround potential based on recent price appreciation, changes in inventory, median age of inventory, number of Realtor.com searches by visitors and area unemployment.

Realtor.com attributes the Florida cities’ success to year-over-year home price increases, reductions in inventory, lower unemployment rates and, in some cases, an upswing in international buyers.

Realtor.com’s turnaround list includes:

1. Miami: Ranked No. 1 in the report, Miami hit the top based on “a healthy inventory that is only half the size from a year ago,” a lower foreclosure rate than the national average, and an increase in condo sales.
2. Orlando: While No. 2, Realtor.com says Orlando had more home searches than any other city when compared to the total number of listings. It also had a significant drop in the number of foreclosures.
3. Fort Myers-Cape Coral: Median prices in Fort Myers-Cape Coral have increased year-over-year, foreclosures are down, inventory is lower and foreign buyers are attracted to the area’s real estate prices.
4. Phoenix-Mesa, Ariz.
5. Fort Lauderdale: Inventory has decreased and prices have increased, says Realtor.com.
6. Sarasota-Bradenton: About one in 10 foreign buyers look in Sarasota-Bradenton for a home, Realtor.com says. Listing prices have increased and inventory has decreased.
7. Lakeland-Winter Haven: According to Realtor.com, the number of distressed sales has decreased significantly and prices have gone up.
8. Boise City, Idaho
9. Fort Wayne, Ind.
10. Ann Arbor, Mich.

Trulia’s Metro Movers Report

Trulia has debuted a new report that analyzed its home searches.

In one study, Trulia looked at the number of people who searched for housing in a city – including renters – and compared it to the number of city residents looking elsewhere for a home. An area with a high number of inbound searches and a low number of outbound searches, Trulia reasons, suggests an increased demand for housing.

According to the study, the North Port-Bradenton-Sarasota area had six times more searches by inbound people than outbound people, landing it in the list’s No. 1 position, but four other Florida cities also made the top 10 list:
1. North Port-Bradenton-Sarasota
2. Riverside-San Bernardino-Ontario, CA
3. Charleston-North Charleston-Summerville, SC
4. Fort Lauderdale-Pompano Beach-Deerfield Beach
5. Cape Coral-Fort Myers
6. West Palm Beach-Boca Raton-Boynton Beach
7. Fort Worth-Arlington, TX
8. Oxnard-Thousand Oaks-Ventura, CA
9. Las Vegas-Paradise, NV
10. Orlando-Kissimmee-Sanford

Trulia also looked at the Chicago and New York City markets to see where residents wanted to move. Three Florida cities ranked in the top 10 for Chicago residents: Tampa-St. Petersburg-Clearwater (No. 4), Cape Coral-Fort Myers (No. 6) and Orlando-Kissimmee-Sanford (No. 10).

In New York City, five Florida cities made the list: Miami-Miami-Beach-Kendall (No. 2), Orlando-Kissimmee-Sanford (No. 3), West Palm Beach-Boca Raton-Boynton Beach (No. 5), Fort Lauderdale-Pompano Beach-Deerfield Beach (No. 6) and Tampa-St. Petersburg-Clearwater (No. 7).

© 2011 Florida Realtors®

NAR: Gradual recovery for housing and economy in 2012

2011-11-15T12:39:00.000-08:00

ANAHEIM, Calif. – Nov. 15, 2011 – Although the housing market struggled to maintain an even footing in 2011, gradual improvement is expected in 2012 and beyond, according to projections at the 2011 Realtors® Conference & Expo.

Lawrence Yun, chief economist of the National Association of Realtors (NAR), said home sales should be stronger. “Tight mortgage credit conditions have been holding back homebuyers all year, and consumer confidence has been shaky recently,” he said. “Nonetheless, there is a sizeable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely. This demand could quickly stimulate the market when conditions improve.”

Yun projects growth in Gross Domestic Product to be 1.8 percent this year, then rising moderately at a rate of 2.2 percent in 2012. With job growth of 1.7 to 2.2 million next year, the unemployment rate is expected to decline to 8.7 percent by the second half of 2012. Mortgage interest rates should gradually rise from recent record lows and reach 4.5 percent by the middle of 2012.

“Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year,” Yun said. “Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more homebuyers to take advantage of current opportunities.”

Existing-home sales are forecast to edge up about 1 percent this year, and then rise another 4 to 5 percent in 2012. Based on NAR’s current projection model, existing-home sales would total 4.96 million in 2011.

Housing data
NAR says it is benchmarking its existing-home sales statistics, and it expects total sales to be lowered for recent years. However, it doesn’t expect many changes to previously reported percentage comparisons, median prices or the month’s supply of inventory. NAR expects to publish its improved measurement methodology soon.

“NAR began its normal process for benchmarking sales at the beginning of this year in consultation with government agencies, outside housing economists and academic experts,” NAR said in a release. “There will be no notable change to previous characterizations of the market in terms of sales trends, monthly percentage changes, etc.”

In the 2010 U.S. Census, the government stopped reporting home sales data, which NAR used as a benchmark. As a result, the association had to develop a new independent score to use as a baseline for its calculations. Preliminary data using the new benchmark will “undergo broad review shortly by professional economists and government agencies. After any issues that may surface in the review process are addressed, we will update monthly seasonal adjustment factors and publish revisions.”

Housing forecast
New-home sales are expected to be a record low 302,000 this year, rising to 372,000 in 2012. Housing starts are forecast to rise to 630,000 next year from 583,000 in 2011.

“Although a double-digit growth in new-home sales and housing starts sounds encouraging, the projections remain historically soft relative to long-term underlying demand,” Yun explained.

With falling inventory, the median home price should rise in 2012. “Home prices have yet to show a definitive stabilization pattern in most areas. Still, given an over-correction in prices, there likely will be moderate appreciation in 2012,” Yun said. “Once home prices turn positive on a sustained basis, consumer confidence will rise and help the broader economy to improve,” Yun added.

Richard Peach, senior vice president at the Federal Reserve Board of New York, said the economy is under-performing. “Nearly two-and-a-half years since the end of ‘the great recession,’ the economy continues to operate well below its potential,” he said. “Among the significant structural impediments are the legacy of the housing boom and bust, and fiscal contrition at the state and local level.”

Peach said the current business cycle remains 7 percent below its peak and is longer than other recession cycles since 1953. He added the employment to population ratio is historically low, and there’s been a shift in the distribution of income, with corporate profits up strongly while employment compensation is down.

Peach believes there is a sizeable level of shadow inventory that will result in rising foreclosures. “My idea is to allocate certificates to 2.5 million service members who served in Afghanistan and Iraq that could be used as a downpayment on a foreclosed home in the Fannie or Freddie portfolio,” he said.

© 2011 Florida Realtors®

Market Recap November 14, 2011

2011-11-12T12:58:00.000-08:00

Keeping you updated on the market! For the week of November 14, 2011
MARKET RECAP
If we were to survey the landscape to see if people rate the decline in housing prices as either a curse or a blessing, we are sure most would say curse. After all, most homeowners have suffered a loss of equity over the past five years.
However, there is an upside to the decline in home prices, particularly for first-time homebuyers and owners looking to trade up, and that's affordability. According to financial data provider Fiserv, the monthly mortgage payment for a median-priced single-family home is 40 percent cheaper than it was five years ago, falling to $700 from $1,140.
Lower prices are really the only way to remedy a supply glut. Watching an asset's price fall is unpleasant, to be sure, but prices fall only so far and the glut clears, and then prices generally rise.
For example, Miami was one of the most overbuilt metropolitan regions and suffered serious price deflation. But the glut in Miami appears to have cleared, thanks to lower prices stimulating more demand. In the third quarter of 2011, Miami home sales jumped 51 percent from a year ago. What's more, prices are again on the rise: the average sales price in Miami for a single-family home has risen 19 percent year-over-year.
It is more informative to focus on local numbers than it is to focus on national numbers. The National Association of Realtors reports that the national median single-family home price slipped 4.7 percent year-over-year to $169,500 in the third quarter. That said, the NAR's national median price really doesn't mean much to any specific local market.
The bottom line for us is that we've seen enough evidence of markets clearing to suggest more markets will resemble Miami in 2012. Fiserv, though expecting some price weakness over the next few months, expects most major markets to post significant price gains in the second half of 2012.
What will financing rates look like in 2012? We thought mortgage rates would be higher this year than in 2010; that hasn't been the case. The Federal Reserve has plainly stated that it is buying long-term securities in order to hold long-term borrowing rates low. It can be silly to fight the Fed.
Then again, markets can be potent forces. Consider this past week: news that another Mediterranean country, Italy , is close to insolvency did little to move interest rates or mortgage rates. In other words, investors weren't rushing into U.S. Treasury securities. In fact, Treasury rates and mortgage rates held steady for the week.
When the Greek crisis occurred, Treasury rates and mortgage rates dropped perceptibly. The fact mortgage rates hardly moved with the latest crisis suggests markets might be less willing to accept ultra-low rates in exchange for a haven from risk.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Producer Price Index(October)
Tues., Nov. 15,8:30 am, et
All Goods: 0.2% (Decrease)Core: No Change
Important. Underlying producer price inflation is easing but remains at elevated levels.
Retail Sales(October)
Tues., Nov. 15, 8:30 am , et
No Change
Important. The long-term sales trend suggests consumers are more optimistic than confidence measures state.
Mortgage Applications
Wed., Nov. 16,7:00 am, et
None
Important. Purchase activity continues to post steady (and encouraging) gains.
Consumer Price Index(October)
Wed., Nov. 16,8:30 am, et
All Goods: 0.1% (Decrease)Core: No Change
Important. A decrease in CPI will relieve pressure for interest rates to rise.
Home Builder Index(November)
Wed., Nov. 16,10:00 am, et
18 Index
Important. Gains in homebuilder stocks point to growing builder confidence.
Housing Starts(October)
Thurs., Nov 17,8:30 am, et
605,000 (Annualized)
Important. More regions are experiencing a rising level of starts.

Learn from the Past, But Focus on the Future
This is advice we try to pass onto our clients. It's important to learn from the past, but it's just as important to focus on the future.
What we've learned from the past is to avoid an asset whose short-term growth rate has far exceeded its historical average annual growth rate. That's not what we have today with housing. We have an asset class – residential real estate – that has reverted to historical norms and is priced to appreciate going forward.
This is a difficult concept for many people to accept. We naturally anchor to the recent past, but doing so can mislead. In 2006, many people thought home prices could only go up; in 2011, many people think home prices can only go down. What we can learn from the past is that trends don't last forever. Buying assets people are selling, and selling assets people are buying, can be very profitable.
We've been saying for the past year that residential real estate is priced to be profitable. Our belief hasn't changed, which is why we continue to say real estate financed with a mortgage loan will be one of the better performing assets over the next decade.
Courtesy of Patti Wilson, Mutual of Omaha Bank. (239) 357-0739

Market Recap Week of October 17, 2011

2011-10-17T08:23:00.000-07:00

MARKET RECAP
We've reported frequently on the encouraging data on home prices. The most recent encouraging data comes courtesy of Zillow, which shows that home prices inched 0.1 percent higher in August, with the average home price moving to $172,600. Zillow's data also show that the national foreclosure rate dropped to 9.2 homes out of every 10,000 homes, down from 10.9 homes out of every 10,000 in 2010.
Unfortunately, the good vibes on pricing and foreclosures were tempered by a warning that foreclosures will accelerate once the controversial robo-signing imbroglio passes. In fact, Zillow believes foreclosure inventory will pressure home prices and that prices won't bottom until 2012 “at the earliest.”
It's possible we could see national average and median home prices fall. Locally, prices could just as easily fall, stagnate, or rise. In fact, a rise might be more in the offing for many local markets. After all, national data is skewed by a few regions – Nevada , Arizona , Central Florida and Central California . Overall, we still see prices firming and rising in many markets, though that trend might not be reflected in national numbers.
As for mortgage rates, we can say categorically that they have been rising nationally and locally since last Friday, thanks in part to an employment report that showed the economy created more jobs in September than most economists had expected. In many markets, rates were up 20 basis points on the 30-year fixed-rate loan. This shouldn't come as a surprise; the yield on the 10-year US Treasury note – the foundation for long-term mortgages – has risen 35 basis-points over the past 10 days.
To be sure, mortgage rates could reverse course and return to the long-term down trend, but there is a real danger to a strategy predicated on returning to the long-term trend in a market that has been trending higher; that is the obvious: the short-term trend might not reverse.
Another danger is supply and demand. Falling mortgage rates do stimulate demand, but if supply isn't rising at an accommodating pace, there is no guarantee that an ultra-low mortgage rate will be filled. Loans, like all good and services, are rationed by price. If you can get a higher price for your product, you get it.
In short, if someone is satisfied with his rate, the best strategy is to ignore the daily vicissitudes and lock. Regret is a tough emotion to overcome, particularly in a market that is showing signs of wanting to move higher.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Industrial Production(September)
Mon., Oct. 17,9:15 am, et
0.2% (Increase)
Important. The rising production trend is encouraging for the economic outlook.
Producer Price Index(September)
Tues., Oct. 18,8:30 am, et
All Goods: 0.4% (Increase)Core: 0.1% (Increase)
Important. Producer prices remain subdued and non-inflationary.
Home Builders Index(October)
Tues., Oct. 18,10:00 am, et
14 Index
Important. Activity remains at multi-decade lows, though some markets are showing increased activity.
Mortgage Applications
Wed., Oct.19,7:00 am, et
None
Important. The uptick in purchase applications could signal improved October home sales.
Consumer Price Index(September)
Wed., Oct.19,8:30 am, et
All Goods: 0.3% (Increase)Core: 0.1% (Increase)
Important. Consumer prices are pushing the Federal Reserve's upper-range target and could turn inflationary.
Housing Starts(September)
Wed., Oct.19,8:30 am, et
590,000 (Annualized)
Important. Starts remain at a three-year depressed level.
Existing Home Sales(September)
Thurs., Oct. 20,10:00 am, et
4.9 Million (Annualized)
Important. After surging in August, sales are expected to pull back to the longer-term trend.

Mortgage Market Debate
It's no secret that a lot of mortgage lending is in government-backed loans. Nationally, Fannie Mae, Freddie Mac, and the FHA back nine in 10 new mortgages. The federal government is looking to pull back and see if more private investors and lenders can be lured into the market.
There are legitimate concerns with a prospective federal pull back. There is the possibility of reduced available credit, thus leading to fewer sales and lower home prices. We've already seen some reduction in volume in higher priced homes when limits on loans backed by Fannie and Freddie declined at the beginning of October.
There is also the concern that sellers will find that fewer potential buyers qualify to purchase their properties. Less liberal down payments and lower loan limits could also hamstring trade-up buyers who want to tap their home equity as a down payment for their new residence.
Here's the conundrum: If we went to return to a more market-driven lending environment, we have to attract private investment, which means rates would have to rise. Private lenders and investors require a greater return than public sources of funds. It's worth noting, though, that many private lenders are flush with money they could put to work. What's more, private lenders and investors will add diversity to the market, which it is currently lacking.
The point is, we can see the mortgage market changing. We can't say whether it will be a net positive in the short term, but we think it raises the uncertainly level enough for borrowers to seriously consider taking advantage of the mortgage market as it is today.

This Mortgage Matters Compliments of Patti Wilson,
Senior Loan Officer Mutual of Omaha Bank.
Email to: patti.wilson@mutualofomahabank.com

Home Listing Prices Rising in Florida

2011-09-26T12:20:00.000-07:00

ORLANDO, Fla. – Sept. 26, 2011 – Prices are rising in Florida.

Florida cities have had the largest year-over-year increases in average list prices, according to the latest real estate data from Realtor.com. Based on August data of 2.2 million listings in 146 markets, Florida cities make up nine of the top 10 places for highest year-over-year list price spikes.

Nationwide, the average list price is $320,325, up 2.36 percent year-over-year.

Here are the top 15 cities boasting the highest percentage of year-over-year increases in average list prices.
1. Miami
Average list price: $640,332
Year-over-year increase: 27.4%
2. Fort Myers-Cape Coral, Fla.
Average list price: $443,570
Year-over-year increase: 26.27%
3. Central-Fla. rural service area
Average list price: $405,809
Year-over-year increase: 19.41%
4. Punta Gorda, Fla.
Average list price: $267,066
Year-over-year increase: 16.37%
5. Macon, Ga.
Average list price: $193,520
Year-over-year increase: 15.98%
6. Sarasota-Bradenton, Fla.
Average list price: $466,785
Year-over-year increase: 15.86%
7. Naples, Fla.
Average list price: $713,087
Year-over-year increase: 15.13%
8. West Palm Beach-Boca Raton, Fla.
Average list price: $591,895
Year-over-year increase: 14.68%
9. Ocala, Fla.
Average list price: $193,360
Year-over-year increase: 12.07%
10. Lakeland-Winter Haven, Fla.
Average list price: $181,409
Year-over-year increase: 11.48%
11. Orlando, Fla.
Average list price: $319,419
Year-over-year increase: 10.56%
12. Portland-Vancouver, Ore.-Wash.
Average list price: $314,537
Year-over-year increase: 10.52%
13. Boise City, Idaho
Average list price: $212,588
Year-over-year increase: 10.43%
14. Springfield, Illinois
Average list price: $174,537
Year-over-year increase: 9.12%
15. Shreveport-Bossier City, La.
Average list price: $211,414
Year-over-year increase: 8.34%

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News
© 2011 Florida Realtors®

Keeping you updated on the market!

2011-09-20T12:10:00.000-07:00

For the week of September 19, 2011

MARKET RECAP
The major mortgage servicers are getting their house in order, as foreclosures have accelerated in the past month. RealtyTrac reports that mortgage servicers started foreclosure on more than 78,800 properties in August, a 33-percent increase from July levels.
Most of us were aware that the foreclosure lull was only a temporary reprieve. That said, the growing rate of foreclosures has revived concerns over excessive inventory. The Cato Institute, an economic think thank, estimates an oversupply of three million houses, about a million more than actually demanded.
With so much inventory on the market and more to come, pricing becomes an issue: More supply means lower prices, which, in turn, means more negative equity. Concerning the latter, CoreLogic estimates that nearly 11 million properties, roughly 22.5 percent of all U.S. homes, were worth less than the underlying mortgage in the second quarter of 2011.
The prospect of more price depreciation and more negative equity has increased calls for more government action. Problem is, efforts to date have had only marginal benefits or have had negative unintended consequences: Cato reports that government efforts to revive housing have helped the most expensive markets while actually depressing prices in the cheapest markets.
At this point, it might be best to let the market run its course. We’ve noted in past editions that when prices fall, demand increases, then prices increase. We've seen this economic truism at work to encouraging effect in a few hard-hit markets. The Orlando Regional Realtor Association reports that the median price for homes in its area has increased 15.1 percent year-over-year.
We've also often noted that real estate is local. The national numbers on foreclosures and negative equity can be big and scary, but they also carry no relevance to any one particular market.
Mortgage rates are another matter; they tend to adhere closely to a national average. Rates at the national level dropped a few basis points this past week on most mortgage products.
There are many reasons for the drop in mortgage rates. One of the more interesting is a rumor that the Federal Reserve is contemplating purchasing longer-term Treasury securities (such as the 10-year note) to drive down long-term interest rates, which would help keep mortgage rates low. Because markets are forward looking, it is possible that the market is getting a jump on the Federal Reserve.
We've been in the minority in questioning the economic benefits of ultra-low mortgage rates. Our rationale is that low rates, and the anticipation of even lower rates, are delaying buying and refinancing decisions today. Our rationale isn't unfounded. Richard Fisher, president of the Federal Reserve Bank of Dallas , believes low rates are limiting economic growth because businesses have an incentive to delay borrowing for expansion. They see no reason to act today if interest rates are expected to stay low tomorrow. We see the same effect in housing.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis

Home Builders Index(September)
Mon., Sept. 19,10:00 am, et
16 Index
Important. A slowdown in existing-home sales is causing more cancellations of new-home contracts.
Housing Starts(August)
Tues., Sept. 20,8:30 am, et
590,000 (Annualized)
Important. Starts remain anemic with mild strength in the multifamily component.
Mortgage Applications
Wed., Sept. 21,7:00 am, et
None
Important. A pick up in purchase applications suggests improving sales for September.
Existing Home Sales(August)
Wed., Sept. 21,10:00 am, et
4.75 Million (Annualized)
Important. Economic uncertainty is slowing sales volume.
Federal Reserve FOMC Meeting Announcement
Wed., Sept. 21,2:15 pm, et
Federal Funds Rate: 0.0% to 0.25%
Important. Markets will be parsing the Fed's transcripts for directions on long-term rates.
FHFA Home Price Index(July)
Thurs., Sept. 22,10:00 am, et
0.5% (Increase)
Important. Despite sluggish summer home sales, prices should continue to improve.

A Novel Solution, But Can It Work?
We like it when people think outside the box. Radar Logic, a data and analytic firm, has sent a proposal to Washington on a loan-restructuring plan we find intriguing.
Mortgage News Daily offers an example of Radar logic's plan in practice: A loan with an original balance of $190,000 has been paid down to $186,000, then goes into default. A foreclosure occurs and a subsequent sale of the REO property nets $99,000. The loss suffered by the lender would be $87,000. Under Radar Logic's plan, a restructuring occurs based on borrower information and the appraised value of the home to produce a new loan of $125,000. The restructuring would result in a loss of $61,000 for the lender, but a 26-percent larger recovery.
So what's the incentive for the lender? The restructured loan would also include an equity participation certificate (EPC). While the homeowner would be granted a portion of the appreciation rights, the lender would hold an equity position through the EPC in anticipation of appreciation of the underlying collateral.
There are a couple obvious risks: 1) Radar Logic's contention that its plan will reduce the perception of over-supply and prices rise fails to materialize; and 2) the borrower defaults on the restructured loan. That said, at least Risk Logic is thinking, and we like that.

Courtesy of Patti Wilson, Senior Loan officer, Mutual of Omaha Bank.
Email to: patti.wilson@mutualofomahabank.com

Check all the current listings for the Sanibel/Captiva Islands here www.SanibelHomeSeeker.com

Market Recap end of August 2011

2011-08-31T11:47:00.000-07:00

The woes of homebuilders and anyone dependent on home building continue. The July report on new home sales shows that the annual sales rate has fallen to 298,000 units, hitting a five-month low. The good news is that supply isn't expanding. In fact, only 165,000 homes are in inventory. This is a record low and a 6.6-month supply at the going sales pace.
Homebuilders face a cluster of problems: bargain-priced foreclosures; higher lending standards; and skittish buyers, many of whom have been further put off by the recent stock market sell-off. Mounting concerns of a double-dip recession and rising cancellation rates have only exacerbated homebuilder worries. The chief concern now is that builders could be forced to cut prices, something they've been fighting tooth-and-nail.
Despite the recent spat of bad news, home prices continue to hold their own, and in many instances are moving higher – at least month-over-month. The FHFA home price index for June increased 0.9 percent after posting 0.4 percent and 0.3 percent increases in May and April respectively.
However, does the slump in new and existing home sales portend falling home prices? We remain optimistic that prices will hold. People are understandably wary about big-ticket purchases, like a home, because of slow job growth and stagnating economic activity. But all have a reservation price (a price they will not sell below). Houses (that is, habitable houses) won't be given away, they'll be taken off market if the sales price doesn't exceed the reservation price.
Reservation prices could fall and the monthly price trend could reverse, of course. That said, we think most of the bad news is baked into the system, so we don't think there will be any heavy discounting. In short, we still think a home is a worthwhile investment in today's market.
Mortgages have also been holding a price trend. Bankrate reported that its weekly survey on rates posted another all-time low. It's worth noting, though, that after the survey was released, yields on the 10-year Treasury note spiked 10 basis points, which points to higher mortgage rates in the next survey.
A surfeit of negative news has kept mortgage rates low. This has lead many analysts to opine that ultra-low mortgage rates are the new norm. We think this is a dangerous way of thinking (which we'll explain below) and that it is still best to take advantage of rates unseen in over 50 years.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Personal Income & Outlays(July)
Mon., Aug. 29,8:30 am, et
Income: 0.3% (Increase)Outlays: 0.5% (Increase)
Moderately Important. Income and outlay growth are sluggish, but both categories continue to post gains.
Pending Home Sales Index(July)
Mon., Aug. 29,10:00 am, et
90 Index
Important. July should hold gains posted in June, but recent data suggest some regression in August.
S&P Case-Shiller Home Price Index(June)
Tues., Aug. 30,9:00 am, et
1.0% (Increase)
Moderately Important. Early summer sales prices have shown modest improvement.
Mortgage Applications
Wed., Aug. 31,7:00 am, et
None
Important. Purchase activity hit a 15-year low, which points to lower near-term home sales.
Factory Orders(July)
Wed., Aug. 31,8:30 am, et
0.8%(Increase)
Moderately Important. The yearlong trend in orders still suggests overall economic growth.
Productivity & Costs(2nd Quarter)
Thurs., Sept. 1,8:30 am, et
Productivity: 0.7% (Decrease)Costs: 2.6% (Increase)
Important. Falling productivity and rising costs are indicative of a sluggish labor market.
Construction Spending(July)
Thurs., Sept. 1,8:30 am, et
0.2% (Increase)
Important. Government and commercial spending are pacing any growth.
Employment Situation(August)
Fri., Sept. 2,8:30 am, et
Unemployment Rate: 9.1%Payrolls: 110,000 (Increase)
Very Important. Unexpected job strength (like in July) could move interest rates higher.

Is This the New Norm?
We've gone down the higher-inflation, higher-interest rate road many times in the past, only to find ourselves doubling back. There is an interesting trend occurring with banks, though, that could persuade us to go down it once again.
One of the more vocal criticisms of banks is that they haven't been lending as much as they should. There is some validity to the criticism; banks have been squirreling away a higher amount of reserves with the Federal Reserve, which has attenuated loan supply and, therefore, money supply, thus keeping inflation in check.
Data released by the Federal Reserve show this period of containment appears to be ending. In other words, excess bank reserves are leaking into the economy and money supply is growing. Because we operate in a fraction-reserve banking system, which means one dollar can be sufficiently leveraged to produce nine more, more reserves put to work can quickly raise inflation pressure.
This all might seem abstruse to the layperson unfamiliar with the intricacies of the Federal Reserve and fractional-reserving banking. All we are saying is that it is folly to write off price inflation and the possibility of higher mortgage rates, because there is no “normal” when it comes to financial markets.
Courtesy of Patti Wilson, Senior Loan Officer, Mutual of Omaha Bank
patti.wilson@mutualofomahabank.com

Pending home sales slip in July but up strongly from 2010

2011-08-29T12:26:00.000-07:00

WASHINGTON – Aug. 29, 2011 – Pending home sales declined in July but remain well above year-ago levels, according to the National Association of Realtors® (NAR). All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June; but it’s 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.
“The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy,” says Lawrence Yun, NAR chief economist. “We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations and streamlining the short sales process.”
The PHSI in the Northeast declined 2.0 percent to 67.5 in July but is 9.7 percent above July 2010. In the Midwest the index slipped 0.8 percent to 79.1 in July but is 18.8 percent above a year ago. Pending home sales in the South fell 4.8 percent to an index of 94.4 but are 9.5 percent higher than July 2010. In the West, the index rose 3.6 percent to 110.8 in July and is 20.6 percent above a year ago.
“Looking at pending home sales over a longer span, contract activity over the past three months is fairly comparable to the first three months of the year – and well above the low seen in April,” Yun says. “The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market.”
© 2011 Florida Realtors®

The Basic Steps of Foreclosure -easy to follow

2011-08-27T13:19:00.000-07:00

WASHINGTON – Aug. 24, 2011 – In recent news, Fannie Mae has publicly assured homeowners going through foreclosure that they will be protected from losing their homes while applying for a federally funded loan modification. Homeowners can apply for a modification at any point before or during the foreclosure process.
If a modification is approved, homeowners can keep their homes if they make their adjusted payments. Absent that, here are the stages of a typical foreclosure:
1) In default: A loan is in default when a mortgage payment is 30 days late.
2) Warning: When a loan is 60 days past due, the bank, credit union or mortgage company warns that foreclosure is the next step.
3) Proceedings begin: After 90 days, the lender refers the loan to its foreclosure department, and hires a local lawyer to begin foreclosure proceedings.
4) Sale advertised: The lender's lawyer advertises the property for sale for four consecutive weeks in a local newspaper. The sheriff's sale date is listed in the advertisement.
5) Sale held: The sale is held on the published date. A sheriff's employee conducts a courthouse auction and the highest bidder wins, usually the bank that owned or serviced the mortgage.
6) Sheriff's deed: The winning bidder gets a sheriff's deed that lists the last date the homeowner can redeem, or take back, the property, usually six months from the date of the sheriff's sale. During this redemption period, the homeowner can live in the property or try to sell it.
7) Redemption period: To redeem a property, the homeowner must pay off the mortgage and all interest and late fees, court and attorney fees, title and appraisal fees, taxes and insurance. Otherwise, they will be evicted from the home.
Copyright © 2011, Detroit Free Press. Distributed by McClatchy-Tribune Information Services.

LESS THAN ONE IN FIVE HOMES HAVE FLOOD INSURANCE!

2011-08-20T10:43:00.000-07:00

NEW YORK – Aug. 19, 2011 – Less than a fifth of U.S. homeowners have a flood insurance policy that protects their property and personal belongings, even though more than four out of every five natural disasters nationwide involve flooding, according to the Insurance Information Institute (I.I.I.).
Coverage for flood damage resulting from surface water, including storm surge caused by hurricanes, is excluded under standard homeowners and renters insurance policies. Flood coverage is available from the National Flood Insurance Program (NFIP) and from a few private insurance companies.
During the first six months of 2011, the federal government declared 28 major flood disasters. This put the U.S. well ahead of the pace set in 2010 when 50 federally declared major flood disasters occurred during the entire year.
“People tend to underestimate the risk of flooding,” says Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “But, in fact, 90 percent of all natural disasters in this country involve flooding. It is important to note that there is a 30-day waiting period for flood insurance to go into effect, so don’t delay purchasing this important financial protection.
”The percentage of homeowners with flood insurance was highest in the South, at 19 percent. Thirteen percent of Midwestern homeowners had a flood insurance policy in 2011, along with 12 percent of homeowners in the West and 5 percent in the Northeast.
Consumers can find out their risk of flood and the cost of a policy by going to the NFIP’s website: FloodSmart.gov.
NFIP provides coverage for up to $250,000 for the structure of a home and $100,000 for personal possessions. It provides replacement cost coverage for the structure of a home but only actual cash value coverage for possessions. Replacement cost coverage pays to rebuild a home as it was before the damage. Actual cash value is replacement cost coverage minus depreciation. Flood insurance is also readily available for renters.
There is a 30-day waiting period after applying for flood coverage and paying the premium before the policy goes into effect.
The only exceptions are:
• If a homeowner purchases flood insurance in connection with making, increasing, extending or renewing a loan.
• If a lender determines that a loan on a property that does not have flood insurance should be protected by flood insurance, there is no waiting period as long as the premium is presented at the completion of a loan application.
• There is a one-day waiting period if a homeowner purchases flood insurance during the 13-month waiting period following the effective date of a revised community flood map issued by FEMA, the agency with oversight over NFIP.
“Flood insurance is also easy to buy. It can be purchased from the same agent or company representative who sold you your home or renters insurance policy,” said Salvatore. “So to file a flood insurance claim, you can simply get in touch with your insurance company.”
© 2011 Florida Realtors®

MARKET RECAP

2011-08-12T10:05:00.000-07:00

Keeping you updated on the market! For the week of August 8, 2011
MARKET RECAP
Over the past couple weeks we've featured good news on home prices. This week, the good news continues... sort of. Clear Capital reports that home prices improved by 4.1 percent nationally in the second quarter of 2011 compared to the same year-ago quarter. On the flip-side, Clear Capital also says it expects home prices to decline 2.4 percent in the second half of 2011.
We're not quite ready to put any money on Clear Capital's price prediction, because its own data show that all four U.S. regions posted quarterly gains, led by a 6.3 percent gain in the Midwest – the first widespread, non-tax-credit-induced gain in five years.
Reduced inventory levels have helped support prices in recent months. We've noted in past editions that inventory levels have been falling, thanks in large part to a dearth of new-home construction and fewer homes listed for sale.
Normally, shrinking inventory is a positive, because it means demand is rising, which leads to higher home prices. Of course, times aren't normal. In today's environment, an inventory decline also reflects the slow pace at which banks are processing foreclosures, thus pushing the number of newly initiated foreclosures to a three-year low. Concurrently, the backlog of homes in foreclosure has been pushed up to 2.1 million.
The principal concern is that if these homes hit the market in a flood, the price trend could reverse course. Then again, if they hit in a trickle, the up trend could continue unabated. At this point, we think a trickle is more likely than a flood.
Mortgage rates are a more difficult call. After slightly rising the past few weeks, rates tumbled over the past few days, and are the lowest they've been in eight months. There are a number of contributing factors to the mortgage-rate drop: U.S. Treasury securities are again viewed as the ultimate haven. The yield on the 10-year Treasury note has fallen 100 basis points over the past six months and now yields a mere 2.5 percent. (The 30-year fixed rate mortgage tends to be two percentage points higher than the 10-year note.)
The fact is that risk of default was never a concern for U.S. debt investors, or yields would have been rising instead of falling. Investors are more concerned with a slowing economy, and with good reason: gross domestic product grew only 1.3 percent in the second quarter. This puts the annual growth rate far below the Federal Reserve's expectation for 2.7-to-2.9 percent GDP growth this year.
The prospect of a slowing economy, in turn, has pulled a lot of money out of stocks and directed it toward bonds. Stocks have been on their longest losing streak since the financial crisis of 2008; the S&P 500 has lost over 1,000 points over the past 10 trading days.
Fortunately, the economy hasn't ground to a halt. ADP's latest employment report shows that private-sector payrolls grew by 114,000 jobs in July. It's not great, and more job growth is needed to sustain a recovery, but it does show that parts of the economy continue to thrive and grow. That said, the 30-year fixed-rate mortgage is unlikely to clear 5 percent in the near future.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Productivity & Costs(2nd Quarter 2011)
Tues., Aug. 9,8:30 am, et
Productivity: 0.8% (Decrease)Costs: 1.6% (Increase)
Important. Productivity appears to have reached a temporary high, which could lead to a hiring spurt if the economy improves.
Federal Reserve FOMC Meeting Announcement
Tues., Aug. 9,2:15 pm, et
Federal Funds Rate: 0.0% to 0.25%
Important. Short-term rates remain near zero, but talk of more monetary easing could roil credit markets.
Mortgage Applications
Wed., Aug. 10,7:00 am, et
None
Important. Refinance and purchase activity spike on a drop in mortgage rates.
International Trade(June)
Thurs., Aug. 11,8:30 am, et
$47.9 Billion(Deficit)
Moderately Important. The deficit has widened on a weakening dollar.
Retail Sales(July)
Fri., Aug. 12,8:30 am, et
0.5% (Increase)
Moderately Important. Sales have slowed along with economic growth.
Another Contrarian Indicator
We like to keep our eyes open for novel indicators that a market might have reached a saturation point and is ready to turn. We think the Wall Street Journal has provided us with one: Reality television shows are jumping into the foreclosure-deal market, the WSJ reports.
If you think back five years, shows featuring buying and flipping homes were all the rage. Their peak popularity coincided with a peak in the housing market. (As an aside, anyone interested in collectibles should note the surfeit of shows – pawn shops, pickers, storage-unit hunters, and antique auctions – that are the rage today.)
We view the rising popularity of foreclosure shows positively: For one, it raises interest (and prices) on foreclosed homes, which will help clear the market sooner. More important, these shows suggest a market saturation point, and a possible turning point toward fewer foreclosures and higher-priced foreclosures.
Of course, this “reality-show” indicator is far from scientific, but than again, the past frequently is prologue, and these shows have frequently pointed to market tops and bottoms.

Email to: patti.wilson@mutualofomahabank.com
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National Association of Realtors - Pending Home Sales Rise in June

2011-08-01T07:39:00.000-07:00

NAR: Pending home sales rise in June
WASHINGTON – July 28, 2011 – Pending home sales increased in June following a wide swing down in April and then up in May, according to the National Association of Realtors® (NAR). Month-to-month activity increased in the West and South but declined in the Midwest and Northeast. However, all regions show strong double-digit gains from a year earlier.The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 90.9 in June from 88.8 in May, and is 19.8 percent above the 75.9 reading in June 2010, which was the low point immediately following expiration of the homebuyer tax credit. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said there may be some increase in closed existing-home sales.“For the majority of transactions, the lag time between pending contacts to actual closings is one to two months. Therefore, the two consecutive months of rising activity should lead to overall improvement in closed sales in upcoming months,” he said. “Though a higher than normal cancellation rate can hold back final closing figures, it could well be that some past cancellations are nothing more than delayed buying decisions rather than outright cancellations.”Yun said tight credit and economic uncertainty have been constricting the market. “The best way to ensure a more solid recovery in housing is to simply return to normal, sound credit standards so more creditworthy homebuyers can get a mortgage,” he said.
“Washington also should not rock the boat with policy changes that would negatively impact affordable credit or otherwise increase the cost of buying or owning a home,” Yun added.
The PHSI in the Northeast slipped 0.4 percent to 68.9 in June but is 19.4 percent higher than June 2010. In the Midwest the index fell 3.7 percent to 79.7 in June but is 26.4 percent above a year ago. Pending home sales in the South increased 4.4 percent to an index of 99.2 and are 19.1 percent higher than June 2010. In the West the index rose 6.4 percent to 107.0 in June and is 16.4 percent above a year ago.
Existing-home sales this year are expected to total 5.0 million, slightly higher than 2010. Similarly, little change is forecast for aggregate home prices with several indicators, including NAR’s median prices, showing recent signs of stabilization.
© 2011 Florida Realtors®

Housing Starts Surge 9 Percent; Signal A Strong Fall Season

2011-07-20T07:09:00.000-07:00

by Chris Brown on Wednesday, July 20, 2011 at 8:46am
Builders are busy once again.
According to the Census Bureau, Single-Family Housing Starts rose to 453,000 on a seasonally-adjusted, annualized basis in June – a 9 percent spike from the month prior and the highest reading in 3 seasons.
A “Housing Start” is defined as a home breaking ground on new construction.
June’s reading is largest one-month jump since June 2009. The reading surprised Wall Street despite that the Homebuilder Confidence survey may have foreshadowed the results.
Monday, the National Association of Homebuilders reported that builders are more confident about the future of the new home sales market, and forecast a large increase in sales over the next 6 months.
For buyers of new construction, the news is mixed. Rising confidence may mean that builders in Orlando are less willing to negotiate on upgrades and/or price, but rising construction levels add inventory to an already fragile market.
Adding to the nation’s home supply without a corresponding increase in buyer demand shifts negotiation leverage away from builders.
The Census Bureau also reported on Building Permits.
In June, permits for single-family homes rose by 1,000 units nationwide on a seasonally-adjusted, annualized basis. This, too, bodes well for housing because 89 percent of homes with permits start construction within 60 days.
Momentum should carry forward into fall.
If you’re buying new construction in Florida , ask your real estate agent about local home supply, and how the market is trending. With mortgage rates low and the fall buying season approaching, you may find some of your best deals in the next few weeks.

Wealthy Americans upgrade to pricier Primary Homes

2011-07-13T12:24:00.000-07:00

NEW YORK – July 13, 2011 – Amid still-depressed housing numbers that dominate headlines, a new survey by the independent New York City-based Luxury Institute and the Institute for Luxury Home Marketing finds that high net-worth U.S. homeowners are taking advantage of the downturn and trading up into higher-priced primary residences.
Lured by lower prices, one in four U.S. consumers with an annual income of $150,000 or more have bought a residential property since 2008 at a median purchase price of $509,000 – an increase of 3.2 percent from the 2005 to 2007 period.
Most new residences (83 percent) are single-family homes and two-thirds of those are in suburban settings. Seventeen percent plan to purchase additional property this year, while 23 percent of those younger than 50 plan to buy in 2011.
More than one-third (37 percent) of the wealthy value their homes at $1 million or higher, while 32 percent assess their primary residence to be worth $500,000 or less.
Seventy percent of wealthy homebuyers used a real estate agent to help with their property purchase, and two-thirds of that group says they would work with the same agent again.
“Luxury is the good news story in real estate,” says Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing. “The number of wealthy households has jumped back to pre-recession levels and affluent home buyers are actively purchasing.
The National Association of Realtors’ statistics show that national home sales at $1 million and above were up more than 18 percent year-over-year in 2010. Strong activity continues this year as well.”
For complete details from this WealthSurvey on wealthy homebuyer attitudes, plans and marketing preferences, visit LuxuryInstitute.com.
© 2011 Florida Realtors®

Florida Mortgage rates moved slightly higher.

2011-07-11T13:25:00.000-07:00

Keeping you updated on the market! For the week of July 11, 2011
MARKET RECAP
The past week was slow on housing news, which is understandable given the Independence Day weekend. Mortgage rates moved slightly higher, and it's possible they could start trending higher through the month.
One reason is hiring, which is on the rebound. ADP's National Employment Report showed that private sector employment rose to 157,000 new jobs in June, nearly triple May's rate and well-ahead of the consensus estimate of 68,000 from Reuters. June’s employment figures suggest the economic recovery, which slipped in the spring, has found new traction. New traction, in turn, could pressure interest rates to move higher.
Real estate research firm DataQuick reported that sales of existing homes in Phoenix reached a six-year high of 9,837 in May. This regional piece of housing news is important for the economics lesson it imparts. We've noted many times in the recent past that lower prices stimulate sales and are the most efficient, most expedient means of clearing high inventory. The Phoenix market is proving that to be true.
DataQuick also reported that 40 percent of the Phoenix sales were for homes less than $100,000, which is a 40 percent increase from year-ago sales. The median price of a home in Phoenix stayed consistent at $120,000, which is actually a good sign: increased demand is causing more distressed inventory to hit the market that needs to be cleared. With both supply and demand increasing, prices are likely to hold steady going forward. Once the excess supply is absorbed, prices can then start moving higher.
Many of the homes sold in Phoenix were investment rental property. This makes sense; many people are still shut out from the mortgage market due to either bad credit or insufficient down payment. This is producing a renaissance in rental properties. The Wall Street Journal reports that the average nationwide rate for apartments and home rentals is up 6.7 percent year-over-year. Rent increases for studio apartments and five-bedroom homes were particularly vigorous, rising 14.3 percent and 12.1 percent, respectively. Rent.com expects even more rent hikes this year.
This upward price trend in rents suggests to us that buying an owner-occupied home will become a more viable option over the next couple of years. Here, again, is another economics lesson: as investors buy rental properties because of rising rents, they also stimulate interest in more potential homebuyers who are renting. This is one reason we are bullish on the long-term outlook for housing.

Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
International Trade(May)
Tues. July 12,8:30 am, et
$44.3 Billion (Deficit)
Moderately Important. Falling petroleum prices are shrinking the deficit.
Mortgage Applications
Wed., July 13,7:00 am, et
None
Important. Higher purchase activity reflects a rise in home sales.
Producer Price Index(June)
Thurs., July 14,8:30 am, et
All Goods: 0.4% (Decrease)Core: 0.2% (Increase)
Important. Falling energy prices have slowed producer-price increases, but inflation remains a concern.
Retail Sales(June)
Thurs., July 14,8:30 am, et
0.4% (Decrease)
Moderately Important. Sales are easing on fewer big-ticket purchases and falling gasoline prices.
Consumer Price Index(June)
Fri., July 15,8:30 am, et
All Goods: 0.1% (Decrease)Core: 0.2% (Increase)
Important. Consumer-price inflation remains elevated, so an unexpected rise could send interest rates higher.
Industrial Production(June)
Fri., July 15,9:15 am, et
0.7% (Increase)
Moderately Important. Capacity utilization continues to increase, suggesting strong business-sector growth.

Time to Remove the Monkey Wrench from the Gears
Trouble financing a home purchase is the one variable that could derail our prediction of a housing recovery. Bloomberg News recently ran a compelling article that encapsulates our most frequent lament: we need more liberal and subjective underwriting standards to get more buyers into homes. Bloomberg writes, “While a record share of Americans want to buy homes, U.S. policies [on banking and lending], often working at cross-purposes, are making it more difficult.”
We've been saying for months now that the market has gone too far in the direction of excessively high standards. Security-filings data provided by Fannie Mae show that nine of 10 mortgages it bought in the first quarter of 2011 were for borrowers with credit scores higher than 700, a 32 percent increase in the percentage of these higher-score loans. Meanwhile, the average credit score for FHA loans was 701 in April, up from 669 three years earlier.
There is a disconnect at work. People, a lot of people in fact, still want a home. In May, a record 5.5 percent of Americans said they wanted to purchase a home, according to the Conference Board, a New York research firm. This is frustrating, especially when considering we have the expertise and experience to price risk, but many people don't want to apply for a loan because they believe it is a waste of time.
It's no a waste of time; we want to speak with anyone interested in a purchase or refinance loan. However, if there was a cause that we could all get behind, it is loosening up the lending purse strings and getting more people mortgages who are worth the risk and can afford it.

Courtesy Patti Wilson, Mutual Bank of Omaha.

2011-07-01T12:08:00.000-07:00

Historic Sanibel Lighthouse Decked Out For Independence Day

Historic Sanibel Lighthouse located at Lighthouse Beach, 1 Periwinkle Way, has been decorated with traditional patriotic red, white and blue bunting in celebration of Independence Day. The decorations will remain through Tuesday, July 5. Sanibel Lighthouse is the most photographed icon in Lee County and is a historic as well as a navigational and marine landmark.

The Sanibel Lighthouse was the first lighthouse on Florida's Gulf Coast north of Key West and the Dry Tortugas and was completed in 1884. It is a popular sightseeing destination for tourists, locals, and island residents. The lighthouse was placed on the National Register of Historic Places in 1974 and also identified as a Historic Site and Structure within the 1976 Sanibel Plan.

For more information on Sanibel history click here.

Cash Deals Dominate Some Luxury Markets

2011-06-30T07:50:00.000-07:00

Cash Deals Dominate Some Luxury Markets

Cash is king in high-end real estate this year, serving to stabilize the market as tight credit conditions and depreciated home values continue to plague the embattled real estate sector.
At least 30 percent of all purchases were financed with cash between mid-April and mid-May, according to the May 2011 Realtors Confidence Index by the National Realtors Association, and the numbers are even more robust for the luxury property market.
In the Fort Lauderdale, Florida area, 57 percent of all single-family homes purchased and priced over $1 million were cash buys between Jan.1 and May 31 of this year, says Vickie Arcuri, an agent with EWM Realtors. In the million-dollar plus condo market, 42 out of the 47 units sold during the same time period were cash purchases.
The south Florida market is particularly hot for out-of-state and foreign investors, who often find it more difficult to secure financing.
“Tight credit and lending criteria are some of the reasons why cash is so popular and it significantly affects the upper-end of the market,” says Arcuri. Jumbo loans — those too big for underwriting by Fannie Mae and Freddie Mac — typically have higher interest rates than government-backed mortgages. The loan amount that falls into jumbo loan territory varies from one local real estate market to another. In the Fort Lauderdale area, a jumbo loan is anything above $620,000.
When you wave cash around, you can lower the purchase price and dictate the terms of the deal so much more effectively” said Ross Levine, a partner in the law firm of Schwartz, Levine and Kaplan. He recently represented a seller looking to offload a $4.5 million Manhattan property — a smooth deal made easy because of cash.
“The sellers said they would have never gotten the deal done if they had … (used) … a bank because the jumbo loan market makes it difficult to get a loan. Beginning on October 1, the government will dial back on the size of mortgages it guarantees in high-cost areas like San Francisco, New York and Washington.
Arizona is also benefiting from a cash spending spree — it’s a hot market for snowbirds, retirees, and those looking to purchase second homes. In 2005, only 11 percent of sales were cash, compared to 30 percent in 2009 and 43 percent in 2011, says Lynn Murtagh, branch manager of Coldwell Banker Residential in Scottsdale, Arizona.
In the north Scottsdale area, 45 percent of all sales were cash purchases for the month of May. In the high-end market — homes priced at $850,000 or more — 66 percent were purchased with cash, says Murtagh.
Even some of the top metropolitan markets around the country are seeing cash purchases on the rise. In Las Vegas, 49 percent of purchases were cash in the second quarter of this year, according to data from the popular real estate site Zillow. In Los Angeles, 33 percent of second-quarter buys were financed with cash compared to 17 percent in the same quarter of 2009. In San Fransisco, 24 percent were cash buys for the same time period versus 16 percent in the second quarter of 2009.
Cash buyers are propping up the market, increasing the number of properties sold, decreasing the level of inventory and flushing distressed properties through the system, says Jim Gillespie, CEO of Coldwell Banker Real Estate.
“If cash buyers evaporated tomorrow, real estate would be in a lot more difficult position. They are stabilizing the market even though they’re purchasing 10 to 15 percent below value,” he says.
For the seller, cash buys mean no appraisal or mortgage contingencies and faster closing dates, while the buyer enjoys the piece of mind knowing they don’t have a mortgage payment, can tap their home equity if needed, and can negotiate some extra perks in their favor.
Levine is currently representing a 23-year-old cash buyer looking to purchase a $2.5 million ground-level Manhattan property. Concerned about privacy in the all-glass building, she was able to negotiate renovations with the developer.
“She wanted to tint the windows but arguably that would permanently alter the structure and we needed the board’s consent. So I carved that language in the contract, which requires the board to approve the tinting before closing. There is no way if she had a bank with 80 percent financing that they would have ever entered into this kind of deal,” Levine says.
While a cash buy may be the sexier option at the moment, here are a few things to keep in mind for buyers and sellers.
Get educated on valueAn appraisal contingency — a condition that the purchase price of the property must be appraised at an agreed upon amount or the purchase can be canceled without penalty — is not required for a cash sale. But it may be a good idea to put an appraisal clause in your agreement to ensure you’re not overpaying. If you don’t want to go the appraisal route, be sure to solicit a market analysis from a real estate agent.
“Realtors have the tools to do an in-depth market analysis, giving the buyer a ball-park figure. They can show a buyer exactly what’s been sold in that area because we have access to a lot of data and information,” says Ingrid Carlos, branch manager of Coldwell Banker Residential in Hollywood, Florida.
Don’t make a low-ball offer. A common misconception among cash buyers is that you can deeply discount the purchase price. But with so many cash offers flooding the market, competition is steeper than you may think. Often times, the property will go to someone more well-informed on the local market.
“Typically in the luxury market, we don’t have a lot of distressed properties and distressed sellers. Owners of these properties are very secure financially and can hold onto the property for an extended period of time without accepting a low-ball offer because they’re desperate,” Arcuri says.
Don’t get swayed by the overall weakness of the real estate market. “Buyers will see the market has come down a certain percentage, and they will go in with an offer price that is discounted the same percentage on the listing price instead of realizing the news is trying to tell them that the market has come down that percentage over a number of years,” Carlos warns.

Make sure the buyer has the cash. If selling a luxury property, you want to be sure the potentially buyer can pony up seven figures when the bill comes due. A letter from the buyer’s financial institution stating the funds to finance the purchase price are available is a must. An account statement will also work, providing the funds will come from that account.
“Anyone can put an offer in writing, but if you don’t have the proof to back it up than it’s just writing on a paper and not a legitimate offer unless there are proof of funds,” Carlos says. “Sometimes buyers are reluctant to give that information and then they lose out on the potential transaction because a seller won’t even look at their offer.”
Sandy Schwartz, another partner in Levine’s firm, says if a cash buyer presents a seller with an offer it’s important to have a clause in the agreement prohibiting the buyer from seeking a mortgage at a later point in negotiations. “I represented a buyer once who lead me to believe it was an all-cash deal on a multi-million-dollar property. After he spoke to his financial adviser, and after we were already in the contract, he said he wanted to get a mortgage. There was no prohibition in the contract from obtaining the mortgage and the closing was 30-45 days later than what the seller had anticipated,” Schwartz says.
That may have inconvenienced the seller, but it worked out well for the buyer — he was left with all that cash, ready to wave at the next big deal down the road.
Courtesy Reuters Wealth June 29, 2011.

Top Picks for International Buyers

2011-06-17T12:23:00.000-07:00

Top picks for international buyers
NEW YORK – June 17, 2011 – International buyers are taking advantage of real estate bargains in the United States. Last year, international buyers reportedly spent $41 billion on purchasing homes in the U.S.So which cities do they most have their eye on?Ten out of the 24 most popular American cities for international buyers are in Florida, according to Trulia. Last year, Europeans, Canadians and Brazilians reportedly spent about $13 billion on homes in Florida alone.Here are the most popular Florida cities for international buyers, according to Trulia, in order of demand:
1. Cape Coral, Fla.
2. Miami
3. Fort Lauderdale, Fla.
4. Naples, Fla.
5. Fort Myers, Fla.
6. Miami Beach, Fla.
7. Kissimmee, Fla.
8. Orlando, Fla.
9. Jacksonville, Fla.
10. Tampa, Fla.
© 2011 Florida Realtors®

Hurricane Season is only six days away!

2011-05-29T10:24:00.000-07:00

GAINESVILLE, Fla. – May 26, 2011 – Hurricane season is only days away, and a University of Florida researcher says that planning is important for everyone, but especially for older adults or their caretakers.
Hurricane season begins June 1 and preparations can take a little longer and require a bit more attention to detail for older adults and their caregivers, says UF’s Linda Bobroff, a family, youth and community sciences professor who helped update a disaster preparation guide.The guide, called Disaster Planning Tips for Older Adults, is for anyone planning for disaster, but it includes special recommendations that apply to older adults.For example, the guide notes that everyone in hurricane-prone areas needs, ideally, a two-week supply of drinking water – one gallon per person, per day, and more if you have pets. But because older adults become dehydrated more easily, it’s a good idea to store more water than recommended. It also suggests that planners make sure the jugs aren’t too heavy, and a sanitized two-liter plastic soda bottle might be a better option than gallon jugs. Caps should be easily removed by someone with arthritis.Everyone needs a three- to five-day nonperishable food supply, the guide says, but for older adults, dietary needs such as low sodium or high fiber foods should be considered. Smaller cans of food that can be eaten at one meal or as a snack are helpful, because older adults are more vulnerable to food-borne illness. And make sure you have a manual can opener.
It’s vital for families to talk about disaster scenarios before they happen, Bobroff says. If a family has already decided what to do in an emergency, it can save precious time that would otherwise be spent debating whether or not to go and haggling over what to bring.“You have to talk about it,” she says. “Just knowing that if the roof blows off, or if we start to get flooded, we’re leaving – having the plan already mapped out helps.”
Carolyn Wilken, a UF associate professor emeritus, and Emily Minton, program coordinator for UF’s Elder Nutrition and Food Safety Program, also contributed to the update.For more information on preparing for disasters, visit the Extension Disaster Education Network (EDEN).© 2011 Florida Realtors®

Straight talk on determining the market value of your home

2011-04-24T09:10:00.000-07:00

THE MARKET VALUE OF YOUR HOME IS DETERMINED IN SEVERAL WAYS

The market Value of your Home IS NOT:
What you have in it.
What you need out of it.
What it is appraised for.
What you have heard your neighbors house sold for.
What the tax office says it’s worth.
What it’s insured for.
Based on memories and treasures.
Based on price of homes where you are moving.

The True Market Value of Your Home IS:
What a Buyer is Willing to Pay for the Property – TODAY
Based on today’s market.
Based on today’s competition.
Based on today’s financing.
Based on today’s economic conditions.
Based on the buyer’s perception of property condition.
Based on location.
Based on normal marketing time.

As a Seller You Control:
The price you ask.
The condition of the property.
Access to the property.

As a Seller You Do Not Control:
Market conditions.
The motivation of your competition.
Value.

Warning Signs:
AGENT elimination – if agents are previewing, or if they preview, but do not show it, they are eliminating your property
BUYER elimination – if your home is being shown with no results, buyers are finding better properties in your price range.
In either case, this is an indication that your home is not priced at current market value.
REMEMBER: Price Overcomes All Objections

Florida Realtors pushed for short sale bill

2011-04-22T11:43:00.000-07:00

Florida Realtors pushed for short sale bill
WASHINGTON – April 21, 2011 – U.S. Rep. Tom Rooney (R-Fla.) and U.S. Rep. Robert Andrews (D-N.J.) introduced bipartisan legislation last week to speed short sales by requiring lenders to decide whether to accept an offer within 45 days.“This bill addresses the biggest obstacle for homebuyers and owners in short sale situations,” says Patricia Fitzgerald, president of Florida Realtors and a key contact to Rooney, who lives in Tequesta, Fla.“We’ve worked with The National Association of Realtors® (NAR) and through Patti as the FPC (Federal Political Coordinator) since last August or so,” says John Sebree, Florida Realtors vice president of public policy. “This federal legislation is one of the goals of our short sale work group.”H.R. 1498 – the “Prompt Decision for Qualification for Short Sale Act of 2011” – will bring the processing time for short sale price approvals in line with the time required for other types of real estate deals by mandating a quicker response from the lender – at most 45 days after submitting the request for short sale approval.“Due to the economic crisis, the number of short sales in Florida is rising, but lenders haven’t always been able to keep pace,” says Rooney. “By requiring lenders to make decisions on short sales within 45 days, this legislation would speed transactions and help prevent homes from going into foreclosure.”© 2011 Florida Realtors®

Florida's existing home, condo sales up

2011-04-20T13:22:00.000-07:00

ORLANDO, Fla. – April 20, 2011 – Florida’s existing home and existing condo sales rose in March, according to the latest housing data released by Florida Realtors®. Existing home sales increased 12 percent last month with a total of 18,522 homes sold statewide compared to 16,540 homes sold in March 2010, according to Florida Realtors.
Statewide sales of existing condos last month rose 24 percent compared to the year-ago sales figure.Seventeen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home and existing condo sales in March; 17 MSAs also had higher condo sales.
It’s the fourth consecutive month that Florida Realtors has reported higher year-over-year existing home and existing condo sales statewide.“A variety of housing opportunities is available at attractive prices across the state, while mortgage interest rates remain historically low,” said 2011 Florida Realtors® President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “Favorable conditions like these spark the interest of buyers – who should consult a local Realtor to find out more about their local markets.”
Florida’s median sales price for existing homes last month was $126,300; a year ago, it was $136,000 for a 7 percent decrease. Analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.The national median sales price for existing single-family homes in February 2011 was $157,000, down 4.2 percent from a year ago, according to NAR.
In California, the statewide median resales price was $271,320 in February; in Massachusetts, it was $270,000; in New York, it was $245,000; and in Maryland, it was $208,258.
According to NAR’s latest industry outlook, a strengthening economy will continue to bolster the housing market’s slow recovery. “Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by unnecessarily tight credit,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 9,703 units sold statewide last month compared to 7,830 units in March 2010 for an increase of 24 percent. The statewide existing condo median sales price last month was $84,300; in March 2010 it was $94,800 for an 11 percent decrease. The national median existing condo sales price was $150,400 in February 2011, according to NAR.The interest rate for a 30-year fixed-rate mortgage averaged 4.84 percent in March, down slightly from the 4.97 percent average during the same month a year earlier, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
© 2011 Florida Realtors®

Sanibel's Beaches Rank with Trip Advisor

2011-04-17T11:33:00.000-07:00

http://www.tripadvisor.com/PressCenter-i4642-c1-Press_Releases.html

UF survey: Florida’s real estate outlook perks up in several areas

2011-02-06T09:22:00.000-08:00

UF survey: Florida’s real estate outlook perks up in several areas
GAINESVILLE, Fla. – Feb. 2, 2011 – Optimism has increased slowly but steadily in Florida real estate markets through the fourth quarter of 2010, a new University of Florida survey finds.The fourth quarter Survey of Emerging Market Conditions found improvement in several key categories, including the outlook for sales in new single-family homes and condominiums, office occupancy, retail occupancy, land investment and capital availability.Much of the optimism derives from politics with the defeat last fall of Amendment 4, a proposed constitutional amendment that would have required a referendum for all changes to local government comprehensive land-use plans, said Timothy Becker, director of UF’s Bergstrom Center for Real Estate Studies. The conclusion of mid-term elections also eased respondents’ uncertainty as it provided a clearer picture of the future.“The state welcomed a new governor who has promised to make Florida a more business-friendly state,” Becker said. “If he can succeed on his goals, respondents believe it will have a positive impact on the real estate market. Any help in attracting new business to move or form in the state will no doubt have a positive impact on job growth.”Survey respondents’ expectations for occupancy and rent increased across every property type. The investment outlook rose in a majority of the property types, and the statewide outlook was the highest since the survey’s inception in 2006. Additionally, private capital is abundant as investors seek the few good products on the market. Overall, the market appears to be improving and will continue to improve at a slow pace over the next year.Despite the positive outlooks in many asset classes, respondents’ optimism is tempered by troublesome economic factors, most notably Florida’s high unemployment rate of 12 percent. Respondents also relayed fears over federal, state and local budget issues.“Local revenues continue to decline as property values decline, placing a tremendous burden on local budgets,” Becker said. “This will require tough decisions by local officials.”The outlook for single-family and condominium sales increased slightly in the fourth quarter, but Becker said home builders continue to have a negative outlook because financing is difficult to obtain and lower prices in the foreclosure and short-sale market take potential customers away from the new housing market. Unexpectedly, however, respondents’ outlook for investment in residential development increased for both single-family homes and condominiums. Becker said the low cost of fully developed lots provides incentive for investors and developers.Expectations for office and retail occupancy continued to improve. Occupancy expectations in the office sector increased, and the outlook for rental rates increased slightly but is expected to continue lagging inflation. In the retail sector, occupancy expectations improved for all property types.Becker said respondents believe occupancy will increase in neighborhood centers and large retail centers. Accordingly, the investment outlook in retail increased for neighborhood centers while declining for the remaining property types.Land investment and capital availability also rose this quarter. More respondents believe land is beginning to be priced at levels that support longer-term investment, despite the fact that lack of financing for land purchases continues to be a concern. The optimistic outlook for capital is due in large part to respondents’ belief that future availability will increase.“Respondents believe there is a need to add additional apartment units based on the fundamentals and expect development financing to be available for that sector,” Becker said. “Private equity continues to be plentiful for quality core assets and valued-add assets.”Expectations for apartment occupancy and the industrial sector were mostly stable.© 2011 Florida Realtors®

Florida Realtors Report: 2010 Profile of Home Buyers and Sellers

2011-01-11T09:59:00.000-08:00

Florida Realtors Report: 2010 Profile of Home Buyers and Sellers
ORLANDO, Fla. – Jan. 5, 2011 – The 2010 Profile of Home Buyers and Sellers in Florida looks at the traits of the state’s current real estate clients, and it identifies the characteristics of today’s homebuyers. It describes the motivations of recent homebuyers and sellers in Florida so real estate professionals can track the changing demands of consumers.
Characteristics of homebuyers
• Forty-four percent of recent homebuyers were first-time owners compared to 50 percent nationwide.
• The typical first-time buyer was 31 years old, while the typical repeat buyer was 54 years old; nationwide, first-time buyers were typically 30 and repeat buyers were 50 years old.
• The 2009 median household income of Florida buyers was $63,300 – slightly lower than the median income of buyers nationwide, $72,200.
• The median income was $53,500 among first-time buyers and $84,300 among repeat buyers.
• Nineteen percent of recent homebuyers were single females, and 11 percent were single males. Nationwide, twenty percent of recent buyers were single females, and 12 percent were single males.
• For 30 percent of recent homebuyers, the primary reason for the home purchase was a desire to own a home.
Characteristics of homes purchased
• New home purchases were at the lowest level in nine years nationwide – 15 percent of all recent home purchases. But in Florida, 18 percent of homes were new.
• The typical home purchased was 1,800 square feet, built in 1998, and it had three bedrooms and two full bathrooms.
• Seventy-eight percent of homebuyers purchased a detached single-family home.
• The median price of a home was $161,000 compared to $179,000 nationwide.
• When considering the purchase of a home, 73 percent of buyers considered commuting costs very or somewhat important.
The home search process
• For four in ten homebuyers, the first step in the home-buying process was looking online for properties.
• Eighty-nine percent of buyers used the Internet to search for homes.
• Real estate agents were viewed as a useful information source by 98 percent of the buyers who used an agent while searching for a home.
• The typical buyer searched for 12 weeks and viewed 15 homes. This compares to 12 weeks and 12 homes viewed by the typical buyer nationwide.Home buying and real estate professionals
• Seventy-nine percent of buyers purchased their home through a real estate agent or broker.
• Seven percent of buyers purchased a home in foreclosure – slightly higher than the share of buyers nationally.
• Forty-four percent of buyers found their agent through a referral from a friend or family member.
• Seventy-two percent of buyers would definitely use their real estate again or recommend the same agent to others.
Financing the home purchase
• Eighty percent of homebuyers financed their home purchase compared to a much higher percentage, 91 percent, of buyers nationwide.
• The typical buyer financed 93 percent of their home purchase.
• Forty-six percent of buyers said they made some sacrifices, such as reducing spending on luxury items, entertainment or clothing.
• Twenty-eight percent of buyers reported their mortgage application and approval process was somewhat more difficult than expected, and 16 percent reported it was much more difficult than expected.Home sellers and their selling experience
• A real estate agent assisted 86 percent of home sellers. Nationwide, 88 percent of sellers used a real estate agent when selling their home.
• Recent sellers typically sold their homes for 94 percent of the listing price, and 63 percent reported they reduced the asking price at least once. Among all sellers nationally, sellers typically sold their homes for 96 percent of the listing price, and 57 percent reduced the asking price at least once.
• Thirty-nine percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.
Home selling and real estate professionals
• Thirty-nine percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 23 percent used the agent they worked with previously to buy or sell a home.
• Eighty-eight percent of sellers reported that their home was listed or advertised on the Internet.
• Among recent sellers who used an agent, 81 percent reported they would definitely (61 percent) or probably (20 percent) use that real estate agent again or recommend the agent to others.
For-sale-by-owner (FSBO) sellers
• The share of home sellers who sold their home without the assistance of a real estate agent was 10 percent, or slightly higher than the national share of 9 percent.
• The primary reason that sellers chose to sell their home using a real estate agent was to avoid paying a commission or fee.
Download the complete 2010 Report of Home Buyers and Sellers in Florida here. The report is also available on the Florida Realtors’ website Research page at floridarealtors.org.
© 2011 Florida Realtors®

Captiva Island Unites to create Captiva Holiday Village

2010-11-24T12:42:00.000-08:00

Captiva Island businesses including restaurants, art galleries, shops, real estate offices, tour operators andresorts will introduce the Captiva Holiday Village beginning Friday, November 26 and continuing every weekend through December 19. Offering an array of events, holiday shopping, entertainment, parades, live music and decorations, the village will be a winter wonderland in a subtropical paradise.
“The Captiva Holiday Village is the result of local businesses coming together to offer our guests an unforgettable island holiday experience,” said Paul McCarthy, co-chair of the village committee.
Captiva Holiday Village begins at ‘Tween Waters Inn, continues to Andy Rosse Lane (extending between the gulf and the bay) and proceeds down to Chadwick’s Square, located across from South Seas Island Resort.
For more information visit www.CaptivaHolidayVillage.com

2nd Annual 10K Race for FISH

2010-10-15T08:35:00.001-07:00

2nd Annual Sanibel 10K Race 4 FISH
Saturday October 16, 2010Introduction Friends In Service Here (FISH) is the leading non-profit, non-sectarian, human services organization focused on “neighbors helping neighbors” on Sanibel and Captiva. The 10K Race 4 FISH on October 16th is our key fundraising event for 2010. The race will be held on Sanibel and is run in conjunction with the Fort Myers Track Club. We are expecting over 500 runners this year, most of the runners will be from South West Florida, including a significant number of Sanibel and Captiva residents who will be taking part. We have even had some early entries from as far away as Indiana!
We serve over 900 clients on Sanibel and Captiva, and in 2009 with our 195 FISH volunteers we delivered the following services:
Provided 9,475 miles of transportation on 304 medical related appointments
Delivered 1,906 hot meals to the housebound or those living alone
Provided 237 pieces of medical equipment
Collected and distributed 31,574 lbs of food from our Food Pantry to 60 families
Provided $74,025 of emergency financial assistance to 75 families/ individuals
Made 699 daily reassurance phone calls with investigative follow up if no answer
Made 225 client visits for those housebound needing interactive conversation
Encouraged 320 participants to come to our monthly ‘Friendly Faces Luncheon’
Helped 552 walk in clients at the Walk-In-Center
Provided 56 holiday meals
Helped 17 young people with Youth Scholarships, including lunch.

10 tips for hiring a home remodeling contractor

2010-09-06T12:23:00.000-07:00

YORK, Pa., – Sept. 3, 2010 – An uptick in homeowners are opting to remodel to increase a potential sales price or just upgrade their living space. According to StateofLife.com, remodelers should keep the following in mind:
Tip No. 1: Does your contractor have proof of insurance?Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can’t do this – stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use – those individuals should have active insurance cards faxed or mailed to you as well.
Tip No. 2: Check references and see photos Ask for at least three references with two for the same type of project you’re planning – and call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you’re planning a bathroom remodel, you may want to check with another contractor.
Tip No. 3: Does your contractor take debit or credit cards?Besides your ability to earn a few points, bonus miles or cash back, credit card acceptance is a good sign that a contractor is financially savvy and has a bank behind his business. Even many small, one-man shops take cards if they have a good relationship with their business bank or credit union.
Tip No. 4: Manners and appearance If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? The way a contractor treats his tools is a direct connection to how he’ll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home.
Tip No. 5: Clean up policy If your improvement is a multi-day project, will the contractor clean up at the end of every day or will he leave the dust, wood chips and other mess lying there for day No. 2?
Tip No. 6: Will the contractor put it in writing? Is your contractor willing to put both his bid and the scope of work in writing? If not – walk away immediately. Many homeowners have been duped by contractors who verbally say what’s included, but, in the middle of the job, require extra money to finish, effectively holding the owner hostage with an uncompleted home project.
Tip No. 7: Availability Can the contractor get the job done in your timeline rather than his timeline? On the flip side, if you can’t find a good contractor that’s willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.
Tip No. 8: The use of subcontractors Does your contractor do everything himself or will he subcontract work? For example, if remodeling a bathroom, you may need a plumber, electrician and carpenter. It’s okay if the contractor subcontracts work out to these specific trades – it shows he wants the work done right – and it’s standard practice for the contractor to mark up the services to earn a profit. To save money, owners can subcontract the work themselves, but managing a total project brings its own challenges.
Tip No. 9: Quoting and billing procedure Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example, most contractors will charge a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? Clarify that with your contractor upfront. Also: What is the payment or billing policy? If money is required upfront, go back to No. 1 and No. 2 above to make sure you have the contractor’s references checked and have a copy of his contractor’s insurance.
Tip No. 10: Did your contractor get the permits? Ask your contractor to take care of the permits. Although permits cost money, the inspection process also protects you from poor workmanship and makes sure everything is being built to code.
© 2010 Florida Realtors®

Sanibel/Captiva Ten Year Real Estate Market Analysis

2010-08-16T08:34:00.000-07:00

CLICK TO ENLARGE GRAPHS Attached are two sets of bar graphs: One for single family homes, the other for condominiums. The top graph shows the number of closed sales each year, since 2001. The bottom graph shows the average closed sales price for each of those years. For 2010, it is for the number sales and the average closed sales price, through August 11th.

Number of Closed Sales. For both homes and condos, the peak in the number of sales was reached in 2004/2005. In 2006, the number of sales dropped precipitously by about 42%. Since that time, the number of sales has remained fairly steady. However, we do note that the number of home sales in 2010 should be about equal to 2009 (and the three previous years), since we're about 7.5 months into the year and the seasonal sales are behind us. However, condo sales seem to have picked up quite a bit. We are in mid-August, 2010, and we are only 8 sales short of 2009 sales. As you can see, condo sales over the past four years dropped further than the single family home sales, so we needed this portion of our market to make a rebound - of sorts.

Average Sale Prices. The average sale price of SF homes continued to surge upward into 2007, even though the number of sales had slowed in 2006. The same is true for condominiums, with average sales price rising through 2006, even though the number of sales had dropped, starting in that year. When we look at the rise and fall of the average sale prices, it shows that for single family homes, the increases from 2001 through 2007 were at an average of 10.6% per year. For the three years since, the average price declines were at an average of 11% per year - almost exactly the same rate. No precipitous rise or fall, which we feel speaks strongly of the Sanibel/Captiva market. On the condominium side, the average rise in sales price was 11.4% per year and the average decline was 9.4%. Again, no precipitous rise or fall in these average sales prices.

To see everything thats for sale on Sanibel and Captiva please visit my website at http://www.sanibelhomeseeker.com/

Single Family Housing Permit Applications on Sanibel Exceed Four Previous Years -20th Permit Application for Current Fiscal Year-

2010-08-04T07:07:00.000-07:00

Kathy Carik
07/29/2010 09:28 am
Today Sanibel City Manager Judie Zimomra announced that the City has received the 20th single-family home permit application for the current Fiscal Year, which started October 1, 2009.
In comparison, for the entire Fiscal Year of 2005, 16 single family home permits were issued on Sanibel; in 2006, 19 single family home permits were issued for the entire year; in Fiscal Year 2007, 17 single family homes were constructed; and in 2008, 11 permits were issued for new single family homes on Sanibel Island.
Upon releasing the statistics, Zimomra stated, "As a community Sanibel offers an excellent quality of life to our residents. As our City continues to reach build-out the remaining lots on the Island are very desirable, perhaps even more so during the current economic climate. We are especially pleased that our new construction is not confined to a single neighborhood but is occurring Island-wide.”
For information on property for sale in Sanibel or Captiva please see my website at www.SanibelHomeseeker.com

It's Paradise.........for buyers

2010-07-21T06:18:00.000-07:00

"It's Paradise … for buyers"headlined a recent Fort Myers News Press article
We all know what the big news is in the Gulf. And it doesn't just concern vacationers. We'd be naïve not to realize that homebuyers, although they have a longer horizon of interest, would be wondering about the effect of the BIG Spill on property values on Sanibel and Captiva.
Since we had planned to dedicate this issue of the Islands Telegraph to the local real estate scene anyway, let's launch right into it.
The article referenced above is accompanied by a photograph of a Periwinkle Way motel, recently sold for $1.75 million. (Unstated in the article is the fact that the sale of the motel was brokered by Royal Shell Real Estate.)
We are on the leading edge when it comes to knowing what is happening on the islands and making it happen. We've seen average prices for single family homes on Sanibel recede to 2004 levels. Single family homes on Captiva are at 2001 levels. Condo prices on both Sanibel and Captiva are back to those of 2002.
At Royal Shell Real Estate, we are seeing generally good news on Sanibel and Captiva. Cases in point: For 2010 year to date, listings sold are up 40% over the same period in 2009. The total dollar volume of sales YTD 2010 is up 10.37%, while the average sale price is down 21.15%.
Analysis: This is a superb time to buy real estate on Sanibel and Captiva. Real Estate sales are up; Real estate prices are down. Average prices are down to where they were well before the real estate "bubble" drove them up.
Case in point: Royal Shell Real Estate has current condo listings as low as $185,000.
And the larger, more luxurious homes on the islands are moving well. A Captiva 3/3/1 bayfront private home sold for $2,500.000, 20% below the listed price. A 3/3/0 Beach Villas condo on Captiva sold for $780,000, about 6% below listed price. A sweet 2/2/0 condo unit at Sanibel's Loggerhead Key sold for $416,000, almost 13% below the listed price.
Here's one waiting to be snapped up: $2,350,000 on Captiva's Roosevelt Channel, after a $100,000 price reduction. Check with our Captiva office for details.
As you can see, the prices are good, the values are great, the traffic is active. Local mortgage brokers are placing loans on all types of properties and 30-year fixed rate mortgages are at the lowest since they started tracking them decades ago. This is an excellent time to tap into a deal on your home, second home or investment home on Sanibel-Captiva.

Oil Free Sanibel chosen for the release of Pelicans, Gannets

2010-07-16T09:40:00.000-07:00

By Anne Mitchell
A large number of brown pelicans and northern gannets rescued from the oil spill along the Louisiana coast were transported to Sanibel Monday and released at an oil-free island beach.
Twenty-one brown pelicans and 11 northern gannets were airlifted in transport crates aboard a U.S. Coast Guard HC-144 Ocean Sentry aircraft from New Orleans Airport to Page Field General Aviation Airport in Fort Myers. They made the trip to Sanibel in four rented vans. The birds, which had been rescued and rehabilitated after being oiled in the Gulf Coast waters, were set free before a crowd of onlookers at Gulfside City Park. The release was authorized and coordinated under the direction of the Unified Commands in New Orleans, Houma, Mobile and Miami with assistance from the National Park Service (NPS), U.S. Coast Guard, Louisiana Department of Wildlife and Fisheries, and the City of Sanibel.
Officials chose Sanibel as a release site based on three criteria, said Dr. Jenny Powers, the NPS wildlife veterinarian who accompanied the birds from New Orleans. “First is the suitability of habitat and then the oil trajectory and weather,” she said. “The release site also needs to be close to an airport.”
Because Sanibel Island lies well outside the area that will likely be affected by oil-spill impact (experts predict a one percent likelihood of impact) and is similar in environment
to the birds’ homelands along the Louisiana, Alabama, and Mississippi coast, and within the species’ home range, it made an ideal release spot.
The birds had been rescued and treated by various agencies in the Gulf Coast states. They were in rehabilitation for 10 to 14 days, according to Dr. Powers. Pelicans have among the best recovery rates among birds impacted by oil, she added. On Sanibel, the pelicans were released at water’s edge following the release of the gannets directly into the water. A crowd of media, refuge staff, and beach-goers gathered to applaud their flawless release.
Rehabilitation center staff banded the birds’ legs with alpha-numeric red bands, as
well as traditional aluminum bands. The red bands allow birdwatchers to more easily identify the birds and the public is requested to help in reporting any sightings to the refuge or at 800-327-BAND. “We’ve only released immature birds up to this point, and they often return to near the vicinity they came from,” said Dr. Powers. “We don’t know what the adults will do.”

NOAA Predicts Oil will NOT Impact Lee County Coastline and Beaches

2010-07-08T13:06:00.000-07:00

NOAA Predicts Oil Will Not Impact Lee County Coastline and Beaches

Updated Oil Spill Map: Miami and South Florida Could Get Hit, But Less Than 1% Chance It Will Hit Southwest Florida

The National Oceanic and Atmospheric Administration (NOAA) has updated its map of where the BP Gulf oil spill may be heading. It appears the crude has almost NO chance of reaching the coast of Lee County. But it is expected to affect much more distant areas of Florida, including the Florida Keys and Miami, according to computer model projections. Albeit less than (<) 1% probability of hitting southwest Florida along the Lee and Collier coastlines, the same NOAA forecast from Friday, July 1 shows a 61% to 80% chance of sheen, tar balls or other oil remnants coming within 20 miles of Florida's east coast, from the Keys north to the Fort Lauderdale area, by Aug. 18, the Associated Press reported. See the NOAA Threat Map below. Unfortunately, other much more distant areas of Florida, including the Florida Panhandle, have already seen beaches littered with tar balls. The agency predicts a low probability of "oiling," for these areas. We in Lee County have sympathy and great concern for our fellow Floridians who have not been so lucky. Most parts of southwest Florida, fortunately, will have less than (<) a 1% chance of oil impact, NOAA said.

Sanibel Beaches June 2010 Attendance Breaks All Previous Years' Levels

2010-07-07T07:14:00.000-07:00

Today the City of Sanibel announced that the June 2010 attendance at the public beaches on Sanibel exceeded all previous years' monthly activity for June. Sanibel City Manager Judith Zimomra reported that "Our beaches are pristine and in excellent condition...and our summer visitors are here." The public parking lots at Sanibel's beaches generated $132,822 for the period between June 1 and June 30th, 2010.

Zimomra went on to state, "These numbers are very important to us inasmuch as the unseasonable cold winter deflated beach parking revenues for First Quarter 2010 by 24%, which was approximately $82,100. "Activity at Sanibel's beaches is a major economic indicator for our community and our region" Zimomra concluded, "Thus, we are committed to maintaining this great asset to world-class destination standards."

The City of Sanibel maintains 24.5 miles of shoreline, of which 11.75 is direct Gulf of Mexico shoreline and can be accessed from 7 public parking lots. All funds generated from the public beach parking lots are utilized exclusively for maintaining the beaches, Fishing Pier, dune vegetation, trails, bathrooms and parking lots. In addition to the revenue generated at the public parking lot, the City receives an annual grant from the Lee County Tourist Development Council to maintain the Beaches.

Sanibel's natural beaches provide habitat for a number of listed and endangered species including least terns, snowy plovers, gopher tortoises and sea turtles. In addition to being maintained in a natural state, Sanibel's beaches are noted for receiving the following recognitions:

2010 Trip Advisor Travelers' Choice Destination Awards - #6, Top 10 Beach & Sun Destinations in the United States
Fodor's Travel - #1, Best Beaches for Seashells
CNN Travel - #1, Best Beaches for Shells
Travel + Leisure Magazine - Top Shelling Beach
Travels.com - #1, Best Florida Beaches for Kids
Women's Health Magazine - Best Beachcombing
Florida Beaches Guide - Florida Best Beaches for Weddings
Florida Beaches Guide - Florida Best Snowbird Beaches
PlacesAroundFlorida.com - Best Shelling Beach
Shermans Travel - #10, Top 10 Family Beaches
2008 Conde Nast Traveler Reader's Choice Award - #10, Island Destination - North America

Click here to view a map of all Sanibel's public beaches and parking lots.

Big Changes to Condo Laws Take Effect

2010-07-05T10:28:00.000-07:00

ORLANDO, Fla. – July 1, 2010 – A massive condominium bill addressing everything from fire sprinkler retrofits to incentives for moving excess condo inventory is among the real estate-related legislation taking effect today. “Legislators introduced more than 50 bills this session dealing with some aspect of condominiums and condominium associations,” says John Sebree, vice president of public policy for the Florida Realtors®. “At the end of the day, there was one – SB 1196 by Sen. Mike Fasano (R-New Port Richey). We worked hard to make sure this 103-page bill contained at least two of the many changes sought by Realtors: incentives for buyers of multiple condo units and repealing the requirement that individual owners carry hazard insurance.” The “bulk buyer” provision seeks to stimulate condo sales by enabling investors to purchase condo units in bulk (seven-plus units) without incurring the legal and financial liabilities of the original developer. The hazard insurance provision repeals a 2008 law requiring unit owners to provide proof of insurance every year. If a unit owner failed to provide a certificate of insurance, the association was allowed to purchase insurance on the owner’s behalf and assess the unit owner for the cost of the insurance. SB 1196 also specifies that: • Florida law no longer requires owners to purchase individual unit owner insurance coverage, though it could still be required by lenders or through the Declaration of Condominium;• Associations of condos over 75 feet high aren’t required to retrofit sprinkler systems;• Lenders must pay more of past-due assessments on foreclosed properties;• Associations may deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association; and• Associations may divert tenant rents to pay for delinquent assessments owed by unit owners. Other laws taking effect today that impact real estate transactions or real estate practitioners provide that: • Documentary stamp taxes on short sales are based on the purchase price, not on the amount of the outstanding mortgage balance. HB 109 by Rep. Evan Jenne (D-Fort Lauderdale) codifies into law a similar ruling in 2008 by the Florida Department of Revenue. • Real estate and appraiser instructors and real estate school permit holders may serve on the Florida Real Estate Commission and the Florida Real Estate Appraisal Board under HB 713 by Rep. Ritch Workman (R-Melbourne).• Home inspectors, mold assessors and mold remediators must be licensed by the state effective July 1, 2010. All applicants are required to complete a 120-hour course. But the Department of Business and Professional Regulation (DBPR) lacked authority to approve the course until July 1. Consequently, the DBPR says it won’t enforce the licensing requirements until July 1, 2011. Visit the department website [http://www.myfloridalicense.com/dbpr/pro/homein/happens.html] for details. On a related note, HB 663 by Rep. Gary Aubuchon (R-Coral Springs) allows these inspectors, as well as appraisers and real estate brokers and sales associates, to take distance learning courses to satisfy pre-license and post-license requirements. A grandfather clause allows some inspectors to get a license without taking the course, providing they’ve conducted at least 120 previous inspections over the past three years.• More housing choices for individuals with disabilities. SB 1166 by Sen. Thad Altman (R-Melbourne) removes, among other things, a requirement that community residential homes for disabled persons be located 1,000 feet from each other within planned residential communities.© 2010 Florida Realtors®

When did the Islands (Sanibel & Captiva) Officially become Special???

2010-06-27T12:31:00.000-07:00

by Barbara Joy Cooley,
President, Committee of the Islands
Just about everyone seems to acknowledge that Sanibel is special and unique. Have you ever wondered when this notion of Sanibel’s special nature began?
Teddy Roosevelt seemed to be aware of it, because he first came to Sanibel and Captiva to join a fishing party in 1914. In the 1930s, the secluded, natural setting of Sanibel and Captiva attracted famous people such as Edna St. Vincent Millay, Anne and Charles Lindbergh, and violinist Albert Spalding, among others.
In 1937, the cartoonist J. N. “Ding” Darling gave a speech to a large audience at a place called Fisherman’s Lodge. Historian Elinore Dormer describes this as the “turn of the road” for Sanibel and Captiva. In her book The Sea Shell Islands, Dormer wrote that, “With a sense of history, The Islander of the following week bore a cover sketch by Matt Clapp of two faces, the Spirit of Captiva and the Spirit of Sanibel, between them the lighted candle, ‘Conservation’.”
Official recognition of Sanibel and Captiva’s uniqueness came in 1939, when, largely through the efforts of “Ding” Darling helping islanders, the
Florida Legislature passed a Special Act (Chapter 19936) to establish a “game and fish refuge” encompassing the islands of Sanibel and Captiva. The act made it illegal for anyone to “catch, hunt, trap or take any wild game, game animals, game birds, or game fish” except those that needed to be removed “in order to maintain a normal biological balance.”
Original Refuge Included Entire
Island
Following the state designation, the Sanibel National Wildlife Refuge was designated in 1945. Its boundaries then included the southwestern part of Captiva and all of Sanibel Island. Nevertheless, Florida continued to sell off pieces of the nearly 2,000 acres of state-owned land on Sanibel for development. “Ding” Darling protested strongly against these sales, and tried to have a more permanent refuge established on the island. Eventually he gave up and sold his Sanibel property. That left the Sanibel-Captiva Audubon Society to take up the cause in the late 1950s. Progress was made, bit by bit. After Darling died in 1962, the U.S. Fish and Wildlife Service and the Darling Memorial Committee worked along with the Audubon group to establish a National Preserve in 1967. Finally the J. N. “Ding” Darling National Wildlife Refuge was dedicated on February 4, 1978. It is this legacy as a special, sanctuary island that eventually propelled Sanibel residents into incorporating as a city – to protect the island from overdevelopment. And it is why codes on Sanibel are particularly restrictive when it comes to development, to protect the natural environment and wildlife.
This is what the Committee of the Islands is all about; its mission is “To
develop and promote policies and positions designed to maintain and enhance the quality of life on the islands and to preserve their unique and natural characteristics.”
If you have stories to share about the legacy of Sanibel and Captiva as special and unique places, we encourage you to send them to the Committee of the Islands at PO Box 88 on Sanibel, 33957, or to coti@coti.org. For more information about the Committee of the Islands, visit www.coti.org.

Foreclosure rescue scam reports increase, new study says

2010-06-23T11:05:00.000-07:00

VIENNA, Va. – June 22, 2010 – The Financial Crimes Enforcement Network (FinCEN) released its first analysis of suspicious activity reports containing information about potential foreclosure rescue scams. The report, “Loan Modification and Foreclosure Rescue Scams – Evolving Trends and Patterns in Bank Secrecy Act Reporting,” analyzed more than 3,500 SARs filed from 2004 through 2009, with the great majority of those reports (3,000) filed last year.“The increase in reporting of suspected foreclosure rescue scam activity could mean that there is an increase in fraudulent activity, but it also reflects an increase in awareness among financial institutions of the fraud perpetrated,” said FinCEN Director James H. Freis Jr.Along with the increase in reported activity, the analysis found that the nature of foreclosure rescue scams shifted too. The latest scams reflect more advance-fee schemes, in which the alleged loan modification or foreclosure rescue specialists say they’ll arrange modification of a homeowner’s mortgage for more favorable repayment terms. Once the scammers receive large advance fees, they rarely, if ever, provide any service.A variation of the advance fee scam involves phony debt elimination programs, in which the homeowners paid advance fees and are given bogus documents or instructed to contact their lenders with specious assertions that the original mortgage debt is illegal.According to the latest FinCEN analysis, the top 10 metropolitan regions, ranked by the concentration of local subjects of all mortgage loan fraud suspicious activity reports tracked between Jan. 1, 2009 and June 10, 2010, are:Miami-Fort Lauderdale-Pompano Beach, FL, came in ranked as No. 1; Los Angeles-Long Beach-Santa Ana, CA, No. 2; New York-Northern New Jersey-Long Island, NY-NJ-PA, No. 3; Chicago-Naperville-Joliet, IL-IN-WI, No. 4; Washington-Arlington-Alexandria, DC-VA-MD-WV, No. 5; Riverside-San Bernardino-Ontario, CA, No. 6; Phoenix-Mesa-Scottsdale, AZ, No. 7; Atlanta-Sandy Springs-Marietta, GA, No. 8; San Francisco-Oakland-Fremont, CA, No. 9; and Orlando-Kissimmee, FL, No. 10.© 2010 Florida Realtors®

Oil Spill Update: Island Beaches Remain Clear

2010-05-28T07:29:00.000-07:00

Last Thursday, Governor Charlie Crist extended the state of emergency regarding the Deepwater Horizon oil spill to include Charlotte, Lee, Collier, Monroe, Dade, Broward and Palm Beach counties. The beaches and shorelines of Sanibel remain in pristine condition with no impact or imminent threat from the oil spill, say city officials. At this time, there is no smell or presence of oil on our local beaches. City staff continues to closely monitor the situation and coordinate planning efforts with local, state and federal partners. The Sanibel-Captiva Conservation Foundation (SCCF) has been working on several fronts in preparation for the possibility of oil from the Deepwater Horizon rig landing on the islands.
• SCCF is registered with the St. Petersburg Unified Command Center as an affiliated volunteer organization.
• In terms of wildlife impacts, since oil or tarballs are considered a hazardous material, SCCF is keeping tabs on when and where training certification opportunities, accepted by the coast guard and BP, will be offered.
• SCCF is working closely with the Florida Fish & Wildlife Conservation Commission on sea turtle and shorebird protocols involving nesting females, nest protection and hatchling survival. They have tasked the foundation with protocols or the potential of oil or tarballs on our beaches.
• SCCF has worked with the City of Sanibel, the J.N.”Ding” Darling National Wildlife Refuge, Captiva Erosion Prevention District and the Captiva Community Panel to supply data and revise geographic response maps and area contingency plans in order to provide
the St. Petersburg Unified Command Center with up to date resource information for protection efforts.
“The level of involvement by local volunteers should the oil reach us is still being clarified but we are keeping a list of people who have called in to volunteer,”
said Erick Lindblad, executive director. To be added to that list, e-mail sccf@sccf.org.
“Realistically, the threat from this incident will probably remain a concern through the summer and into the fall. One major unknown is the possible role of hurricanes,” said Lindblad. “All forecasters acknowledge that a major storm in the gulf could greatly impact how and where the oil or tarballs spread. As we learn more, we will keep you posted.”

City of Sanibel Plans to use Booms to Protect Shores from Oil

2010-05-07T12:20:00.000-07:00

The continuing oil spill in the Gulf of Mexico and its potential to wash up on local beaches weighed heavily Tuesday on the Sanibel City Council and staff. However, city officials are already making plans to place booms along the beaches and mangroves to keep the crude oil from damaging Sanibel’s environment and its tourism industry. Mayor Kevin Ruane said, “We are continuing to work with our partners, both federal and state, as well as local... (in) planning and preparing for this event.” After the Florida governor’s office on Monday extended the state of emergency from the Panhandle to Sarasota, Ruane and City Manager Judie Zimomra participated in a conference call with the governor. So far the city manager has ordered the finance director to prepare cost tracking forms and has met with representatives of the JN “Ding” Darling National Wildlife Refuge and Sanibel-Captiva Conservation Foundation to coordinate efforts and documentation of pre-disaster conditions. Additionally, the city is coordinating with local partners to document pre-disaster conditions and coordinating identification of environmentally sensitive areas. At the council meeting, Ruane held up various maps as Zimomra described the potential movements of the oil slick and how to combat it. Natural Resources Director Rob Loflin said the gulf loop current is 20 to 80 miles offshore. If oil were to get into the current it would move quickly down the coast, Loflin said. He recommended that Sanibel place booms along 30 miles of beaches and about eight miles of mangroves and openings to the refuge. “If you get this (oil) in the mangroves, there is nothing you can do,” he added. “We have snowy plovers nesting on the beaches and it’s the start of turtle nesting season.” Ric Base, executive director of the Sanibel-Captiva Chamber of Commerce, is stressing to the public that “there is little chance of the spill coming this far east and south. Our beaches are open and clean.” Meanwhile council members were wondering why oil companies drilling in the U.S. are not required to use cut-off valves to stop the oil from spewing out of the sea bed.Vice Mayor Mick Denham said such valves have been mandatory in Norway since 1993 and are required in most other countries. He said Sanibel should lobby elected officials and send a letter to Senator Bill Nelson, who is encouraging communication. “We as a council should begin to lobby for the ultimate in safeguards,” Denham added.

FLORIDA REAL ESTATE HAS HIT BOTTOM

2010-04-29T12:18:00.000-07:00

UF: Florida real estate market has hit bottom
GAINESVILLE, Fla. – April 29, 2010 – Florida real estate markets show the first tentative signs of recovering from the most painful recession in the state's history, according to the latest University of Florida (UF) report.
"Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," says Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies.
But while most of the survey respondents report the market probably won't get any worse, few say it has actually begun to improve yet, Becker says. "One of our respondents summed it up by stating that 'if anything, we will get less bad.'"
On the positive side, private capital – both foreign and domestic – is continuing to enter the state in search of quality investment deals. As banks start to deal with their problem assets, more deals will come to market.
Another good sign: Life insurance companies have started to re-invest in commercial properties after backing off for the last year and a half, Becker says. Because these companies use premiums from life insurance policies to make investments, they are not deterred by the lack of available bank financing.
"(Life insurance companies) see the fundamentals of the economy stabilizing and they see the opportunity to get quality assets at a good price," Becker says. "So if they think things aren't going to get worse and they may actually get better, it follows that they're going to want to start investing again."
On the negative side, unemployment continues to be one of the state's biggest problems, edging up to 12.3 percent in March, its highest level since the state began keeping count in the 1970s. Florida has lost more than 880,000 jobs since 2007.
Although there is a potential for job growth later in the year, even under the most optimistic assumptions it will take three to four years to return to 2006 levels, Becker says.
Also of concern is the continued reluctance of commercial banks to lend money because of pressure from regulators to manage risks along with depressed values that make it difficult to refinance mortgages.
The retail and office markets are the worst off, Becker says. "Until there is an increase in job growth, there is no need for more office space, and people aren't spending as much money as they used to."
Apartments continue to be the best market in the state due to high demand from people moving out of foreclosed homes. "More people are going to be living in temporary spaces than trying to buy homes just because it's gotten a lot more difficult to buy homes from a financing perspective," Becker says.
Statewide, Florida's new housing market will continue to be slow, a result of more foreclosed homes becoming available. "That competition makes it very difficult for new homes to get built and purchased because buyers can often get an equal or nicer home for a much cheaper price on the foreclosure market," Becker says.
One of the strongest areas of the state is South Florida, especially Miami-Dade and Broward counties, with their diverse economies, steady migration and influx of foreign capital. "The glut of condos in South Florida is actually starting to change hands – they're beginning to rent them – and I think there is more life in downtown Miami than there has been in a long time," Becker says.
Orlando, Tampa and Jacksonville also are picking up. "Florida's big cities – those four areas – are less bad off than the rest of the state, and they're going to recover quicker than other places," Becker says.
Jacksonville, in particular, is in a good position because its housing market never got as hot as other markets; and, as a result, it doesn't have as many foreclosures. "I think Jacksonville is primed to really take off, and with the expansion of the port is going to have a lot of jobs coming into the marketplace," Becker says.
A positive note overall is that survey respondents' confidence in their own business has risen for the fifth consecutive quarter. In previous breakdowns by profession, developers and lenders had extremely low expectations for their own businesses, and that has grown substantially in the last few surveys.
"It's always a good sign for us that the lenders think their business is going to get better," Becker says. "Maybe it means there is some light at the end of the tunnel, even though we're still not at a great spot."
© 2010 Florida Realtors®

Congress Extends flood insurance to May 31

2010-04-18T09:16:00.000-07:00

WASHINGTON – April 16, 2010 – Congress approved an extension of the National Flood Insurance Program (NFIP) yesterday and President Obama signed it into law within the hour. The change, part of a larger bill that covered unemployment, extends the flood insurance program to May 31, 2010; and coverage is retroactive to March 28 when the current program ran out.The extension is a patch for the program, and current bills in Congress would solidify the flood program and extend coverage beyond a few months. H.R. 4213, if passed, would extend flood insurance coverage through Dec. 31, 2010.“In theory, the NFIP will now return to normal operations and, since the extension is also retroactive, any new policy applications or renewals that were signed and submitted during the hiatus will be effective from the date of application (or in the case of waiting periods, the waiting period will start from the date of application),” say officials of the Independent Insurance Agents and Brokers of America.The flood insurance extension was part of a larger bill that extends unemployment insurance benefits to June 2.Source: National Underwriter, Arthur D. Postal, April 16, 2010© 2010 Florida Realtors®

Homebuyers' Top Questions about the Tax Credit

2010-03-31T10:57:00.000-07:00

WASHINGTON – March 30, 2010 – The Florida Open House Weekend, April 10-11, is the last, best opportunity to secure up to $8,000 in tax credits for first-time homebuyers (up to $6,500 for move-up buyers).
According to the National Association of Home Builders, the following are top questions asked by prospective homebuyers. In all cases, buyers should check with the IRS or a qualified financial advisor for specific personal advice.
How does a homebuyer claim the tax credit?
The credit is claimed when the homebuyer files or amends his or her federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.
In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).
Does the homebuyer have to sell their current home in order to qualify for the $6,500 repeat homebuyer tax credit?
No – a homebuyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes and rent or use the former home for something else providing it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence and live in it for at least 36 months; otherwise, they must repay the credit.
Do married couples both have to meet the eligibility requirements in order to claim the credit – even if they file taxes separately?
Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time homebuyer tax credit or the $6,500 repeat buyer tax credit, regardless of whether they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.
Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?
There are two exceptions to the April 30 deadline. If the buyer enters into a binding contract by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between Jan. 1, 2009, and April 30, 2010.
For more information on the tax credit and the Florida Open House Weekend, visit Florida Realtors website at: http://www.floridarealtors.org/AboutFar/OpenHouse/index.cfm /index.cfm
© 2010 Florida Realtors®

2010-03-28T11:44:00.000-07:00

1st Annual Edible Molusk Oyster Eating Contest to be held on Sanibel!

When: Saturday, April 17th 2010, 11am - 1pm.

Where: The Timbers Restaurant & Fish Market

Why: To celebrate "Oyster Love" and to raise money for the Bailey- Matthews Shell Museum Mollusk Exhibit.

Rules: Individuals have 90 seconnds to eat as many oysters as possible. Each contestant will receive a tray filled with 30 pre-shucked oysters on the half shell. Supplemental oysters will be given if needed. Each individual may have someone behind them cheering them on and each contestant will be assigned an individual judge to ensure all the oysters are swallowed. The judges will be the ones responsible for counting oyster shells to determine the number eaten. Contestants will be allowed to "flavor or dress" each oyster before the competition begins, but are not allowed to remove the oyster out of their shell prior to the start of the competition. For an oyster to be counted in the final total, it must be in the contestant's mouth at the end of the time limit.

All's Fair: Oysters can be slurped from the shell, hands-on grabbing and throwing them in the mouth or even dumping them in a pint glass and guzzling them. We don't care as song as they end up in the mouth and swallowed within the time limit!

2010-03-20T11:48:00.000-07:00

Sugar Contract
Extended For U.S.

On March 11 South Florida Water Management District’s Governing Board cast a unanimous vote to extend the agency’s contract terms with U.S. Sugar Corp. over the pending acquisition of land that will be used to save the Everglades.
The contract extension was required to secure the acquisition of 73,000 acres of much-needed land that will be the cornerstone of a cost-effective water management initiative designed to sustain the water supply of millions of people and rescue the treasured Everglades ecosystem from certain peril.
“The members of the governing board demonstrated considerable leadership today by committing to this vitally important land acquisition within the Everglades Agricultural Area. This is the best opportunity we will have in our lifetimes to sustain our water supply and build the foundation for all future Everglades restoration projects,” said Kirk Fordham, CEO, Everglades Foundation.
“This land acquisition will save taxpayers money in the long term and provide the South Florida Water Management District an opportunity to prioritize projects around a water treatment and storage footprint that will provide the maximum benefits to residents and the environment.”
The Everglades Foundation has long advocated land acquisition in the Everglades Agricultural Area as the most cost-effective option available for Florida to fulfill its commitment to Everglades restoration. In addition, the foundation expects the revised proposal for U.S. Sugar Corp. land to provide the initial acreage to launch promising water quality projects and allows for the acquisition of additional land for restoration purposes in the near future.
The foundation’s position is that the health of the Everglades is not only vital
to the environment, but also to the economy and quality of life in South Florida.
The organization has assembled a team of scientists, policy experts and communications
professionals and works with partners on several fronts to educate, advocate and litigate -- when necessary -- to advance Everglades restoration. In addition, the foundation provides grants to like-minded local, national and international organizations and collaborates with other business, civic and environmental groups to form coalitions and set priorities to move restoration initiatives forward.

Insurance mitigation forms for Sanibel & Captiva High Value Homes

2010-03-15T10:53:00.000-07:00

Insurance Tip:
High Value Homes
Mitigation Forms
by Marge Meek
Since all the Citizens wind policies had to be rewritten last year, many policy holders had homes just under the $750,000 rule for mandatory opening protection to get wind insurance.
Please note this refers to the value of the "building only", not the total property including the lot.
Many other customers had an additional year to comply. This is the year that everyone must
make the decision on how to meet the opening protection rules. And there are options, not always with Citizens, not always as expensive as people think. Opening protection means all windows, doors, sky lights, etc. must meet the guidelines covered on #8 of the uniform
mitigation form. Citizens will only accept the box marked “basic” or better in providing wind insurance to high value homes. By looking at the form’s explanations of what each category means, the typical customer has no idea which opening protections will satisfy the requirement. Therefore, a contractor or other licensed individual is brought in to fill out
the form. Even then, there is disagreement, as these individuals have been to different classes to get certified and the issue goes on.
Shutters, impact glass and even certain rated films will allow a home to be insured with Citizens. However, there are companies who don’t require those same rules be followed on opening protection to get coverage, thus giving the insured more options. Additionally, homes over $2 million are going to be non-renewed this year as well, unless the agent fills out
documents showing no other coverage is available, and then up to a three-year extension will be given. Once again, there are options. Too often high value homeowners are self insuring when alternatives haven’t been explained to them. Be informed before you discontinue such
important coverage. Take the time to ask your agent to explain the various options available, ask your neighbors what they are doing and ask local suppliers what different types of
opening protection they provide. This is an expensive decision that also affects the
ability to sell your home, if that is your goal.
Marge Meek is a local Sanibel-Captiva insurance agent, who can be reached at mmeek@rosierinsurance.

Barron's Magazine -10 best places for Second Homes

2010-03-10T12:07:00.000-08:00

Sanibel & Captiva Islands rated #8!!!!!

"8. Captiva/Sanibel Island, Fla. Sitting off the coast of Fort Myers, a nerve center of America's foreclosure crisis, the barrier islands of Captiva and Sanibel are the very picture of laid-back living. Linked by a bridge at Sanibel's northern point, the islands are renowned for their pristine beaches and abundant seashells. Then there are the hiking trails; half the island is a nature preserve. The late Robert Rauschenberg is, even in death, one of the largest landowners. His 35-acre spread, complete with studio, is intact on Captiva's northern end.Median Price: $3.5 million Drop From Peak: 40% "

2010-03-04T07:18:00.000-08:00

EGRET HALTS TRAFFIC ON PERIWINKLE!
So there is is this little white egret that has been having trouble deciding which side of Periwinkle he prefers. Completely oblivious to the VERY confused drivers, he has been dashing from one side of the road to the other, only to change course mid stream and dash back the other way!. It's the funniest thing you ever saw and has the motorists in turmoil, bringing the already slowed traffic to a complete stand still as he darts left and right.
Periwinkle Way, the heart of Sanibel is usually busy at this time of year and as residents we allow an extra 20 minutes of journey time "just in case" So imagine the impact this little bird is having..............VERY funny if you're not in a hurry to reach your destination. Perhaps we should take this as a message from Mother nature to slow down and enjoy each day to the fullest!

Sunny and COOOOOOLLLLLLDDDDDD!!!

2010-02-13T12:51:00.000-08:00

So I'm sitting here on sunny Captiva Island in an open house. It's a beautiful sunny breezy day with a clear blue sky. The temp however is very un-Florida like -downright cool if you ask me. I just took a walk through the property and on my way passed a lady in a swimsuit!!! (I have on two shirts, socks and a sweater) Come on people, buy this lovely house!!! http://www.flyinside.com/tour.php?id=34959

Sanibel Farmers Market

2010-01-28T11:46:00.000-08:00

Today as I was munching on my "roasted veggie cous cous" I wondered to myself why last Sunday was my FIRST visit to the Sanibel Farmers Market! The market is held at the Tahitian Gardens shopping center every Sunday from November thru the end of "season". A visit to the market had always been on my "to do" list but my Sundays are busy. I try to get in a swim at the REC center if possible, then if I'm not sitting in open houses I'm often scheduled to man the offices of Royal Shell Preferred Properties, either at the Sanibel or Captiva locations. Anyway, I finally made it to the market this week. Apart from the wonderful fresh veggies, there are also cheeses, fresh fish, sauces and salsa, delightful pastries and the list goes on and on. It's a wonderful place to catch up with friends since almost everyone you know WILL be there! I'm thankful to the organizers of this weekly event -you will be seing me again sooon!

2010-01-22T15:33:00.000-08:00

I just had to ask!
For the past week or so I have been hearing English voices from the house next door on Rabbit Rd. Tonight when I returned from the office by way of Baileys Store, there they were again! Three men, with three of the BIGGEST cameras I have ever seen, all pointing towards an electric pole. Turns out they are on "holiday" from the UK where bird watching is a hugely popular pastime. Apparently every three hours or so an Osprey flies in with a large fish, lands on top of the telegraph pole and eats. These three guys are blown away by the fact that they are able to get within two miles of such an event. It reminded me just how lucky I am to live in a place where Osprey sightings are commonplace.

2010-01-18T09:13:00.001-08:00

NO MORE SOCKS AT LAST!!!!
Finally our normal balmy winter temps have returned and we are able to retire our socks, hopefully until next year. 60's at night and close to 80 during the day for the next week or so. Click here http://www.sanibelhomeseeker.com/ to see all the real esate for sale in this little island paradise I call home.

2010-01-13T13:41:00.001-08:00

The Blind Pass Ecosystem Partnership Cordially Invites You to Attend the Ribbon Cutting Ceremony for the Blind Pass Ecosystem Restoration Project, on Friday, January 15, 2010, 10:00 AM, at Turner Beach Regional Park.

2010-01-13T13:07:00.000-08:00

It's been almost two weeks now that I turned the heat on! This is NOT what I signed up for when I moved to tropical Sanibel & Captiva Islands. Thankfully the weatherman says we should be back to almost 80 degrees by the weekend. It's been really rough on our wildlife. The fish are dying and I hear iguanas are literally dropping out of the trees from the cold.