The Rich Take a Hit As Well

Published: Monday, March 23, 2009 at 1:00 a.m.
Last Modified: Friday, March 20, 2009 at 11:42 a.m.
Southwest Florida's real estate market has always had something of a dual personality -- the high-end waterfront properties catering to the affluent, and the "normal" market inhabited by everyone else.

The high-end retreats of the islands have operated in their own universe sometimes, as it was thought money flooding in from the well-to-do around the country and the world would cushion the blow of any regional economic challenges.

Of course, now we are in the midst of a global financial crisis, with economies around the world sputtering and stock markets struggling. The real estate market, fed by a Wild West atmosphere of lawless lending and speculation during the boom years, got completely out of control and is largely responsible for sparking this disaster. The upper bracket of properties have not been immune -- they are in this mess with the rest of us.

So it may be natural to ask, with 2008 likely to go down as one of the worst economic years in modern history, did people still buy those million-dollar Sarasota mansions on the beach and bay? And how much of a hit did sellers have to take to move those homes?

Deborah Beacham, an agent with Michael Saunders & Co. specializing in high-end properties, recently put together a report looking at just that issue -- looking specifically at single-family homes (no condos) in 2008 that were listed at $1.5 million and up and had either a waterfront view or boating water. Beacham grouped sales by locale: Bird Key, Casey Key, Lido/St. Armands, Longboat Key, Mainland Waterfront, and Siesta Key.

Beacham found while the total volume of such sales was down 20 percent overall -- $218.3 million in 2008 compared to $271.4 million in 2007 -- that "many individual properties retained most of their value" in 2008 compared with 2007. That does not mean buyers were not getting a discount off the list prices. On average, most properties in that upper bracket sold for about 82 percent to 86 percent of their asking prices in 2008. But those figures are about the same as how similar properties performed in 2007.

Now, a few caveats are in order, the first being that nothing compares to what was going on during the boom. Beacham found that if you bought a high-end waterfront property during the height of the boom in 2005-06, you were unlikely to be in the black these days. But for those who bought such homes prior to the boom, their values were still holding steady enough today that they are in profitable territory.

The other caveat I'll add is that the bulk of the 2008 crash really began in earnest in September, and so a buyer who bought in March 2008 likely had a different set of calculations than one who did in November.

But that said, back to the numbers.

Beacham found that the number of sales was the same or higher in 2008 on Lido and Longboat, as well as for the mainland waterfront. Sales were slightly down on Siesta Key, dropping from 24 in 2007 to 21 in 2008. But overall, not bad.

One place where there was a noticeable collapse of sales was on Bird Key, where only 6 homes valued at $20 million sold in 2008, compared with 15 homes at $58 million on 2007. The lack of action on Bird Key may show that even rich buyers are focused intently on price just like everyone else these days -- as the average ratio of sales price versus list price was 90 percent on Bird Key, the highest of any area studied.

What is more, that 90 percent figure is exactly what it was on Bird Key for 2007 sales, too, suggesting that Bird Key sellers were sticking to their asking prices, Beacham's report found.

By contrast, every other area studied in the report -- ones that already had lower sales-list price ratios to begin with compared to Bird Key -- saw even further drops of between 1 to 3 percentage points in 2008 compared to 2007. This would seem to indicate those sellers were more willing to negotiate in 2008 as the market continued to fall. Siesta Key sellers, for example, settled for 83 percent of their asking prices in 2008, compared to 86 percent in 2007.

It is interesting as well that the Bird Key homes took longer to sell on average in 2008, 292 days, compared to 2007's average of 246 days. So basically Bird Key sellers stuck their guns, and buyers decided they would be better off elsewhere.

Even for the rich, it seems, it is definitely a buyers' market these days in Sarasota.


This story appeared in print on page D12, Sarasota Herald Tribune, March 23, 2009, by Aaron Kessler

Fed cuts interest rates to lowest level in 4 years

WASHINGTON (AP) – May 1, 2008 – Scrambling to shore up the faltering economy, the Federal Reserve cut interest rates to the lowest point in nearly four years as the nation teetered on the edge of recession.

Wall Street rallied at first Wednesday but then pulled back, concerned that the reduction might be the last for a while.

In fact, the Fed’s trim was smaller than those of recent months amid indications the central bank might pause to see if months of powerful rate-cutting medicine and billions of dollars in stimulus checks will be enough to lift the country out of its slump.

Chairman Ben Bernanke led a divided Fed, in an 8-2 vote, in slicing its key rate by one-quarter percentage point to 2 percent.

In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Both rates are the lowest since late 2004.

The Federal Reserve, which has been dropping rates since last September, turned much more forceful early this year when housing, credit and financial problems worsened. Rate reductions in January and March alone marked the most aggressive intervention in a quarter-century in an effort to re-energize consumers and businesses.

“The substantial easing of monetary policy to date ... should help to promote moderate growth over time and to mitigate risks to economic activity,” the Fed said, strongly hinting that more cuts may not be needed.

Enthusiastic Wall Street investors drove the Dow Jones industrial average up more than 178 points – lifting it above 13,000 for the first time since early January – right after the Fed action. Then traders’ caution returned, and the index ended the day 11.81 points below where it started.

Although the Fed didn’t take another reduction off the table, a growing number of economists believe the central bank is winding down its rate-cutting campaign. Barring another hit to economic growth, they believe rates probably will stay where they are – perhaps through the rest of this year – in part because the Federal Reserve is concerned that further cuts could join with galloping energy and food prices and spread inflation dangerously higher.

By all accounts, the country’s economic health is fragile.

The economy crawled ahead at a pace of just 0.6 percent from January through March as housing and credit problems forced people and businesses to hunker down, the Commerce Department reported hours before the Fed’s action. Growth had been just as feeble in the prior quarter.

Job losses for the first three months of the year neared the staggering quarter-million mark, and a government report on Friday is expected to show that employers shed jobs again in April. The unemployment rate, now at 5.1 percent, also could creep higher in April and hit 6 percent early next year, analysts say.

“Recent information indicates that economic activity remains weak,” the Fed said. “Household and business spending has been subdued, and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.”

Two members – Charles Plosser, president of the Federal Reserve Bank of Philadelphia, and Richard Fisher, president of the Federal Reserve Bank of Dallas – opposed cutting rates Wednesday, a crack in the usually unified front the Fed often shows the public.

Both men have a reputation for being especially vigilant about fighting inflation. At the Fed’s previous meeting in March, they opposed cutting rates by a whopping three-quarters point and preferred a smaller reduction.

“The Fed didn’t completely shut the door on rate cuts but they closed it part way,” said Mark Zandi, chief economist at Moody’s Economy.com. “I think the overall message was they’ve done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed.”

Bernanke’s juggling act is getting harder. Fed policymakers are trying to bolster economic growth, and at the same time they are mindful that they can’t let inflation get out of hand. The very rate reductions the Fed depends on to energize the economy can also sow the seeds of inflation down the road.

At the same time, many economists believe the economy already is declining.

Under one rough rule, if the economy contracts for six straight months it is considered to be in recession. However, that didn’t happen in the last recession – in 2001. A panel of experts at the National Bureau of Economic Research that determines when U.S. recessions begin and end uses a broader definition, taking into account income, employment and other barometers. The bureau’s finding is usually made well after the fact.

The Fed’s previous rate reductions, which take months to work their way through the economy, should help lift growth in the second half of this year. The government’s $168 billion economic-stimulus package – including tax rebates that started flowing to bank accounts on Monday – also should help energize activity, the Bush administration, Bernanke and private economists have said.

The biggest weight on the economy is the housing crisis, which has pushed foreclosures to record highs and caused financial institutions to rack up billions of dollars in losses.

For mortgage rates, the Fed’s latest cut probably won’t have much, if any, impact.

On the Net: Federal Reserve: http://www.federalreserve.gov/

Copyright © 2008 The Associated Press, Jeannine Aversa (AP Economics Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Wall Street Journal

From The Wall Street Journal

Sunny Side of the Street
America's wealthy see buying opportunities in sluggish real-estate market
By AMY HOAK
MarketWatch - April 16, 2008

CHICAGO -- Is now a good time to buy real estate? The size of your paycheck likely will play a big part in how you answer that question.

While many average Americans are skittish about the housing market, some of the country's richest citizens see the current conditions as perfect for buying, according to the Annual Survey of Affluence and Wealth in America, released on Tuesday by the American Express Publishing Corp. and Harrison Group, a market research and consulting firm.

Seventy-seven percent of the wealthiest people surveyed think real estate presents a "real opportunity" right now. In the survey, "wealthy" meant having discretionary household income of more than $500,000 a year.

And these high-income earners are putting their money where their mouths are: 40% said they are in the market to acquire real estate this year.

The survey was originally conducted late last year with 1,800 people representing the wealthiest 10% of American households. But the more recent figures are from a follow-up survey with a smaller sample of the original participants, conducted last week to ensure the study reflects rapidly changing market dynamics.

Other survey participants are "upper middle class," with incomes between $100,000 and $149,000; "affluent," with incomes between $150,000 and $249,000; and "super affluent," with incomes between $250,000 and $499,000.


Associated Press
The wealthy aren't alone in their belief that the real-estate market represents a buying opportunity: 67% of the upper-middle-class participants also agreed with that statement, as did 72% of the affluent and the super-affluent.

"There are bargains out there...severe price pressure across the board," said Jim Taylor, vice-chairman of Harrison Group. That said, at the very top of the market, there is an abundance of buyers and that is holding prices steady at that level, he added.

Still, the wealthiest were the most committed to buying soon. Only 17% of upper-middle-class participants said they were in the market to buy real estate this year, while 24% of the affluent and 26% of the super-affluent said the same.

Home sweet second -- and third -- home

Forty-one percent of those in the wealthy category said owning a second home was "almost a requirement" for people of their economic means, according to the survey.

Thirty-three percent of the wealthiest who said they intended to buy this year are now in the market for a second home, and 25% said they are in the market for a finished third home, according to the survey.

"They're treating it as a portfolio play, rather than a recreation play," Taylor said. "They've moved off the notion that it's just pleasure real estate," he said, adding that the wealthy use second homes to help balance their overall investment portfolio.

Recession now, but rebound coming

Seventy-nine percent of the survey's respondents said the country is in a recession now, but 88% said they are confident that property values will eventually rebound. Still, 18% of respondents said the equity in their home is worth less than what they owe.

Many respondents expressed significant anxiety over the recession, Taylor said. That was especially true of the upper-middle-class and affluent groups, he said.

But not everyone is worried about their own financial stability. Taylor said he expects the number of millionaires to increase by another 6% this year.

Passion for home improvement

A separate survey of senior-level executives found that high earners often are passionate about improving their homes -- even more passionate than they are about spending time on the golf course.

Thirty-nine percent of 552 high-level executives said they were passionate about home improvement, compared with 32% who said the same about playing golf, according to a recent survey by Doremus, a business communications agency.

"Home is seen by most as a respite from the world, a place where people feel they can be themselves." said Hope Picker, director of research for Doremus, in a news release. "And high-powered senior-level executives are no exception.

"Golf is a game, but it's another form of competition and, in many cases, it's also a surrogate conference room where business is conducted and deals made. But home, even for many high-level professionals, is a safe haven. In addition, home-improvement projects tend to be both tangible and finite, in contrast to much of their work."

The company recommended that marketers interested in reaching these high-net-worth individuals should target them through publications, broadcasts and online sites that feature decorating and improvement ideas for the home and garden. End of Story

Amy Hoak is a MarketWatch reporter based in Chicago.

Posted by Deborah Beacham

March sales in Sarasota top 500 for first time since July 2007

For Immediate Release
Sarasota Association of Realtors®
April 22, 2008
For more information, contact Kathy Roberts, 941-328-1170

March sales in Sarasota top 500 for first time since July 2007
Pending sales highest in a year, indicating improving market for summer

Overall property sales in the local market for March 2008 topped 500 for the first time in eight months, according to statistics pulled from the Sarasota MLS system. There were 514 property sales reported in the Sarasota MLS, easily topping the February 2008 sales of 423.

There were 344 single family homes sold by SAR members in March 2008, along with 170 condominium units. This compares to 294 single family sales in February and 129 condominium sales, which means March saw an overall increase of 21.7 percent over February.

Single family homes saw a small decline in the median sale price, from $285,000 in February 2008 down to $266,750 in March 2008 – a 6.3 percent decline. But condominiums saw a small increase in the median sale price from $230,500 in February
2008 to $235,000 in March 2008.

“Once again, the local Sarasota market is proving its resilience, even as the state and national housing market statistics continue to show weakness,” said Helen Sosso, 2008 SAR President. “It is remarkable how our local real estate practitioners are weathering this downturn, and proving once again the value of a professional Realtor® during difficult times. As we’ve been saying for more than a year, this is a prime buyer’s market, with historically low interest rates, moderating prices, and an incredible, high quality inventory of homes on the market.”

One of the continuing bright spots in the March 2008 report was the strength in pending sales, which stood at 674 – the highest level in the past year. In March 2007 pending sales were at 706. Pending sales have been edging upward since December 2007, when there were 374 pending sales.

Pending sales counts the number of signed contracts in a month, and is a leading indicator of sales activity. There is a direct correlation between pending sales and closed sales that are reported in the following month or two.

Inventory levels were lower in March 2008 at 10,025 single family homes, compared to 10,596 in March 2007, and down slightly from February 2008, when there were 10,035. Condominium levels also decreased from the March 2007 level of 6,180 to 5,702 in March 2008, but up slightly from the February 2008 level of 5,588.

The days on market, which translates to the average time it took to sell a property, was at 152 days for single family homes, slightly higher than the 144 days in March 2007, but lower than the 160 days in February 2008. Average days on the market for condos was 181, a healthy drop from the 199 days reported in March 2007, and much lower than the 219 days in February 2008. The days on market reflects a quicker pace of sales, meaning the size of the current inventory should begin to decline going forward.

The local Sarasota-Bradenton MSA continued to fare better than the overall state. The MSA was down by 15 percent for single family home sales and 17 percent for condominiums, comparing March 2008 to March 2007. For the overall state, single family homes declined 26 percent comparing March 2008 to March 2007, and condominium sales were down 24 percent month to month.

In fact, the smaller Sarasota-Bradenton market again sold more overall properties than the Miami market. There were 1,022 overall sales reported for the local MSA, compared to only 609 in Miami.

The median sale price dropped by 18 percent for single family homes, and by 32 percent for condominiums in the MSA. This compares to 15 percent and 20 percent statewide in the two categories, respectively.
####

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These Web sites offer:

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• Banner advertisements throughout the Web site
• National/international online campaign on The New York Times Web Site gives access to all of Premier
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Since the Internet spans the globe, pockets of your target market are scattered around the world. With just a few clicks of your mouse, search engines and interested consumers can be targeted at once, compared to traditional media, such as newspaper and magazine advertising. It’s the Premier Internet advantage that gives you an edge above the rest of the competition!

36 Hours in Sarasota, Florida - from The NY Times

36 Hours in Sarasota, Fla.
By PAUL SCHNEIDER - The New York Times
Published: December 30, 2007
link to original article

SET on a sparkling bay, behind a necklace of sandy barrier islands, the resort town of Sarasota was pioneered in the Roaring Twenties by the immensely wealthy John and Mable Ringling of circus fame. The couple didn’t come to get away from the clowns and freaks; they brought the entire circus with them to pass the winter in warmth and style. To this day, this scrubbed, suntanned and artsy little town offers just enough of a city vibe to sustain great food and a little night life. Plus, the circus still comes down in the winter.

Friday 5 p.m.

1) FLASHING COCKTAIL
Get sand between your toes before the sky goes dark, and head to Lido Key beach, a relaxing stretch of white sand across the bay from downtown Sarasota. Park near the Ritz Carlton Beach Club (1234 Benjamin Franklin Drive) and make a beeline for the Lido Key Tiki Bar (941-309-2581). Leave your shoes in the car but don’t forget to bring cash, so you can order the signature Green Flash Cocktail, a rum, pineapple and Midori concoction served with flashing ice cubes. A resident bongo player is there to provide a live soundtrack for the spectacular sunsets.

8 p.m.

2) CEVICHE CHOICES
Darwin Santa Maria, the chef and owner of the Selva Grill (1345 Main Street, 941-362-4427; http://www.selvagrill.com/), is originally from Peru, and the flavors of his country of mountains and coasts infuse almost everything on the menu. And everything on the menu is worth trying, as Selva serves quite possibly the best food in town. The ceviches de la casa alone offer 10 choices ($11 to $17), not including the daily specials. It’s a tough decision, but the Selva ceviche, made with corvina, cusco corn and roasted camote (sweet potato), tastes like the first day of summer. It’s served up in a lively space, with a crowded bar and friendly patrons who wave to one another as they come and go.

10 p.m.

3) RHYTHM AND BALLS
Sarasota’s night life is a mixed bag, so for surefire action, head to the Gator Club (1490 Main Street, 941-366-5969; http://www.thegatorclub.com/), a popular dance club with red brick, polished brass and R & B tunes. Not a dancing fool? Head upstairs to the billiards bar, where they serve 125 different single-malt Scotches. Don’t try them all. For other options, pick up a copy of Creative Loafing (http://www.sarasota.creativeloafing.com/), a free arts and entertainment weekly.

Saturday 8:30 a.m.

4) POLISH THAT BACKHAND
Your morning tennis is about to begin. Though the Colony Beach and Tennis Resort (1620 Gulf of Mexico Drive, 941-383-6464; http://www.colonybeachresort.com/) is a little frayed, it frequently ends up on the lists of top tennis resorts for its first-class instruction. Most patrons sign up for multiday packages, but the pros are happy to accommodate shorter lessons (dial extension 2312 to reserve). The adult clinics start at $50 for a 90-minutes lesson and private lessons start at $80 per hour. And if your traveling partner doesn’t need as much help with follow through, the glorious white sands of Longboat Key beach is a ball toss away.

1 p.m.

5) HEALTHY TO GO
The thing about Floridian sprawl is that the best eats are sometimes in the most unassuming places. Such is the case with Simon’s Coffee House (5900 South Tamiami Trail, 941-926-7151; http://www.simonstogo.com/), which serves one of the best lunches in town in a nondescript shopping plaza. Nothing fancy, just whole grain breads, meaty panini, fruity smoothies and creative sandwiches like roasted butternut squash, with soup, ($9.50) that taste too good to be vegan. It’s a local favorite.

2 p.m.

6) VIVA LA SIESTA
Sarasota Bay has plenty of sandy beaches on the gently lapping Gulf of Mexico. But Siesta Public Beach, on Siesta Key, is widely considered by locals to be the fairest of them all, with talcum-powder-soft sands that never get too hot to the touch. And it draws a mixed crowd — the young and ancient, locals and tourists, active volleyball players and laid-back lollygaggers. Best of all, it rarely feels crowded.

5 p.m.

7) AMBER AND BANDANAS
St. Armand’s Circle is the vaguely touristy heart of Sarasota shopping. There are a few big-name stores like Tommy Bahama, but mostly it’s jammed with smaller boutiques like the Baltic Amber Gallery (9 North Boulevard of the Presidents, 941-388-2651, http://www.ambershowroom.com/), where handmade earrings from Latvia, Poland, and elsewhere start as low as $18 a pair. If you forgot your bathing suit, there are plenty to choose from at the Beach House (331 John Ringling Boulevard, 941-388-1025; http://www.thebeachhouseswimwear.com/). If you forgot sandals, check Foxy Lady West (481 John Ringling Boulevard, 941-388-5239, http://www.foxyladysarasota.com/). And if you forgot your New Year’s resolution, grab a homemade waffle cone at Big Olaf Creamery (561 North Washington Drive, 941-388-4108), a sort of homegrown Ben & Jerry’s.

8 p.m.

8) PAN-AM DINING
By day, sleepy Hillview Street seems an unlikely spot for night life, but when the weekend rolls around, good luck finding a parking spot. A handful of buzzing restaurants and bars have recently opened along this block-and-a-half stretch. For lively ambience and inventive food, go to the Table (1936 Hillview Street, 941-365-4558, http://www.thetablesarasota.com/), an upscale restaurant that serves so-called Atlantic Rim cuisine, which blends Caribbean, South American and southeast American flavors. Favorites include spring rolls with Havana short ribs ($7.95) and grilled salmon encrusted with Venezuelan crab and served with purple sticky rice ($23.95). Ask for a table in the back room; a D.J. starts spinning at the bar around 9 p.m. By 10 p.m., it’s a full-on dance.

10 p.m.

9) ROCK ON
If D.J.’s aren’t your thing, head next door to the Five O’Clock Club (1930 Hillview Street, 941-366-5555; http://www.5oclockclub.net/), a rocking dive bar that’s been showcasing live music since 1955. On any given night, there might be reggae or an eccentric AC/DC tribute band.

Sunday 10 a.m.

10) WEIRD GROWTH
Had enough sun and sand? Stroll around the Marie Selby Botanical Gardens (811 South Palm Avenue, 941 366-5731; http://www.selby.org/), a 9.5-acre park with bamboo, banyans and shady benches where you can enjoy great views of Sarasota Bay. But the real prize is the tropical display house, which has rare orchids, psychedelic caladiums and a strange yet beautiful society of pitcher plants that trap insects.

1:00 p.m.

11) FREAK SHOW
The Ringlings left behind more than just a circus. They amassed a large art collection, including a series of gargantuan paintings by Rubens that are displayed at the John and Mable Ringling Museum of Art (5401 Bay Shore Road, 941-359-5700; http://www.ringling.org/), on the 66-acre bayside estate where they wintered. But the main event is the Howard Bros. Circus, a miniature model of the Ringling Bros. and Barnum & Bailey Circus at its height in the early 20th century. Created over half a century by a passionate circus fan, Howard Tibbals, the three-quarter-inch-to-the-foot scale replica covers 3,800 square feet and is, as one might say, the Greatest Historical Installation on Earth.

The Basics
JetBlue has direct flights from Kennedy Airport to Sarasota, with round-trip fares starting at about $200 for travel next month. More flights and airlines service the much bigger Tampa airport, which is about an hour’s drive away.

If your budget is up to it, the Ritz-Carlton, Sarasota (1111 Ritz-Carlton Drive, 941-309-2000; http://www.ritzcarlton.com/) offers all the usual big hotel pleasures, plus access to its private beach club on Lido Key. Double occupancy rates range from $399 to $5,000 a night.
Groovier and cheaper in-town lodging can be found at the Hotel Ranola (118 Indian Place, 866-951-0111; http://www.hotelranola.com/). Rooms with full kitchens start at about $159 a night.
On Lido Key, Coquina on the Beach (1008 Ben Franklin Drive, 800-833-2141; http://www.coquinaonthebeach.com/) has clean and simple rooms that offer views of the Gulf of Mexico, but not a whole lot more. Double occupancy with beach views start at $189.

November Sales

Jan. 2, 2008

*The following press release was sent to local media on Dec. 31 at 11 a.m.*

November sales numbers indicate 2007 mirroring 2006

Property sales in the Sarasota market are off by only 7.2 percent for the first 11 months of 2007, compared to the same period in 2006. The total sales dollar volume is also close to the 2006 figure, bolstered by stronger condominium sales and sale prices during 2007.

More condominiums sold over the first 11 months of 2007 than in 2006, 1,973 to 1,924, for an increase of almost 3 percent. The median sale price for condos also increased, from $315,000 in the first 11 months of 2006, to $335,000 for the first 11 months of 2007 - a 6.3 percent increase. The figures are in stark contrast to the overall state of Florida, in which condominium sales are down 27 percent year-to-date and prices are down 3 percent year-to-date.

During the same time period, local prices dropped for single family homes, from $345,000 to $306,500 (11 percent), and sales fell from 4,127 in 2006 to 3,640 in 2007 (11.8 percent). While these numbers tended to pull down the overall local market, the drop has not been nearly as much as the drop seen statewide during 2007, when sales have dropped 29 percent.

Pending local sales, a strong indicator for future market activity, have been heading up for two successive months, following a lull in September. Pendings reached 489 in November for combined condos and single family homes. They were only at 446 in October, and only 397 in September. Normally, sales begin to pick up as seasonal residents and tourists begin to arrive in the winter months.

Word on the street indicates activity has already been on the increase at open houses, and real estate agents are beginning to get busier as the season starts to heat up, both good signs from a market undergoing a positive transition.

In total, 5,613 closings were reported through the end of November 2007, compared to 6,051 closings through the end of November 2006. The total volume of sales for the first 11 months of 2007 was $2.7 billion, compared to $2.98 billion in 2006. If the trend continues through the end of December, 2007 will rank is one of the five top years in the history of SAR for volume of sales, despite the gloom and doom of media reports.

"The buyer's market that was predicted for 2007 has definitely come true, and the message we have stressed that now is the time to buy is proving out," said Joe Hembree, 2007 SAR President. "It's really difficult to time a market's bottom, but 2007 numbers have consistently indicated that the Sarasota market is fast reaching normalcy. With the Fed continuing to ease interest rates, this remains an incredible time to get into a local home."

There are many other factors that continue to make Sarasota a great choice for potential home buyers, including the affordable cost of living, tremendous natural beauty, great education system, fabulous restaurants, recreational and cultural opportunities, safe and clean environment, and world-class health care.

Sarasota Association of REALTORS®

Sarasota Association of Realtors | 3590 S. Tuttle Ave. | Sarasota | FL | 34239

Premier Introduces Online Marketing Initiative

NAPLES, FL., November 27, 2007 – Premier Properties of Southwest Florida, Inc., Realtors has announced a major upgrade to its online property marketing program, adding the New York Times, Wall Street Journal and Sarasota Herald Tribune to its distribution outlets.

“We recognize the power of the Internet in today’s real estate business,” comments Dick Borel, Director of Premier’s e-commerce Division. “And we believe these outlets to be extremely powerful at reaching prospective buyers for luxury real estate in Naples.”

As part of this program, all Premier listings are now available in the New York Times online real estate listings, as well as on its Great Homes & Destinations site. The #1 newspaper site in the United States, http://www.nytimes.com/ claims 1.3 million unique visitors for its real estate site, and 348,000 unique visitors, with a mean household income of $287,000 and a mean age of 45, for its Great Homes & Destinations site. Forty percent of this latter group plan to purchase real estate as an investment in the next 3 years.

Premier also is now affiliated with a second major upscale national newspaper, the Wall Street Journal, in its website, http://www.wsj.com/. As part of this new agreement, the site’s real estate listings section now includes all Premier listings, as does the Real Estate Partners site, of which Premier has become a member.

In Sarasota, where Premier recently established a full-service office, the company has become the exclusive sponsor of the Herald Tribune’s real estate section at http://www.hearldtribune.com/, as well as a banner advertiser. In addition, all Premier listings appear among the site’s listings.

The Premier e-commerce network incorporates 125 interconnected Top Tier websites, and offers preferred access to Premier real estate listings on http://www.naples.com/, http://www.bonitasprings.com/, and http://www.marcoisland.com/, as well as http://www.premier-properties.com/ and http://www.premiersarasota.com/ . Search engine optimization is performed on an ongoing basis, so these sites regularly appear among the first five recommended sites when key search words are entered.

“The reach of this network is extremely broad,” continues Borel. “In fact, nearly 20% of the visits to http://www.naples.com/ are from people outside the United States. We are confident that this comprehensive system of online marketing well serves both those who list property with Premier, and those looking for Southwest Florida luxury property.”

Premier Properties is the exclusive Southwest Florida affiliate of Christie’s Great Estates, with full service offices in the Village on Venetian Bay in Park Shore; on Broad Avenue South, Bayfront, and 5th Avenue South in Old Naples; The Premier Gallery at the Northern Trust Bank Building on Tamiami Trail North; at the Naples Grande Hotel; on Vanderbilt Beach Road in North Naples; The Esplanade Shoppes on Marco Island; the Promenade at Bonita Bay; and the Plaza at Five Points in Sarasota. The Premier Properties Commercial Division is located in Bonita Springs and the Developer Services Division and Rental Division are in the Quarles & Brady Building in Naples. Information is available by visiting http://www.premier-properties.com/. Premier Properties is a division of the Lutgert Companies.

October 2007 home sales up 14 percent over September

Nov. 28, 2007

*The following press release was sent to local media on Nov. 28 at 11 a.m.*

October 2007 home sales up 14 percent over September

Members of the Sarasota Association of Realtors® reported an increase of 14 percent in October 2007 sales compared to September 2007, when only 234 single family home sales and 104 condominium sales were reported. October sales of 264 homes and 120 condos indicate a market beginning to heat up after the normally slower September, and ahead of the usual return of tourists and seasonal residents in the early winter months.

In addition, the market continues to mirror 2006 sales figures. Combined sales of homes and condominiums in the Sarasota real estate market slid by a modest 3 percent in October 2007, compared to October 2006, and prices also dropped slightly for the same period. The statistics continue to indicate that the local market is fairing much better than the overall state of Florida, and has weathered the real estate downturn well.

Year to date, sales in the Sarasota market are off only 6 percent from the same period in 2006. The total sales dollar volume is also close to the 2006 figure - bolstered by a big jump in the median selling price of condominiums. The median sale price for condos has increased from $310,000 in 2006 up to $345,000 in 2007 through the first 10 months of the year. Single family home prices dropped by 11 percent during the same time period.

In total, 5,250 closings were reported through the end of October 2007, compared to 5,590 closings through October 2006. The total volume of sales for the first 10 months of 2006 was $2.56 billion, compared to $2.77 billion in 2006. These numbers represent a major increase from only six years ago. In 2001, the year-to-date sales volume through the end of October was only $2.05 billion - indicating a 35.1 percent increase in terms of overall real estate market dollars.

"As we have stated throughout this year, the numbers reflect that we are returning to normalcy, and the drop in prices coupled with the quality inventory represents a tremendous opportunity for buyers in our market" said Joe Hembree, 2007 SAR President. "While some areas of the state and nation have seen dramatic sales drops, we have been consistently performing better than most other regions in the state. Sarasota's resiliency and strong fundamentals in our market should propel us into 2008."

The Sarasota-Bradenton Metropolitan Service Area (MSA), which includes all of Sarasota and Manatee counties, also saw improving numbers in October 2007 relative to the entire state.

Condominium sales in the MSA were up 10 percent in October 2007 compared to October 2006, and prices were level, down less than 1 percent. This compares to the overall state drop of 20 percent, and a drop in prices of 8 percent. Sarasota figures were also up 11 percent month to month.

Residential sales dropped by 17 percent in the MSA, with prices sliding 5 percent. The Sarasota residential sales were down only 8 percent for the month, but this also compares favorably to the overall state, which saw a 29 percent drop in sales and an 8 percent price slide.

Many other factors are beginning to forecast a better 2008 for Florida.

Economist Hank Fishkind, president, Fishkind and Associates in Orlando, recently noted Florida's job market is fundamentally strong. "Outside of the construction industry, Florida is generating a significant number of new jobs, particularly in leisure and hospitality, healthcare, trade and education," said Fishkind in an FAR interview.

With a growing consumer market, an expanding talent pool, a supportive government and a strong asset base, Florida offers an attractive environment for business growth. The state had 12 cities named to Economy.com's Business Vitality Index - more than double the number of leading cities in any other state.

In addition, Forbes magazine named 11 Florida metro areas "best places for business and careers," based on criteria such as cost of doing business, job growth and educational attainment.

With such a vibrant job market, the stage is set for additional movement to the state, and many will likely relocate to the Sarasota area. Relocation brings home buyers, and buyers will see a market offering a wide assortment of quality, well-priced homes, experts agree.

Sarasota Association of REALTORS®

Constitutional panel may offer voters more property tax relief

TALLAHASSEE, Fla. (AP) – Nov, 2, 2007 – A state commission Thursday began batting around ideas for giving taxpayers more property tax relief than they’ll get even if voters approve a ballot proposal the Legislature passed three days earlier.Several members of the Taxation and Budget Reform Commission, which also has the power to offer voters proposed state constitutional amendments, said they were disappointed with the legislative plan. It’ll be on the Jan. 29 presidential primary ballot.The commission, which meets once every 20 years, cannot put items on the ballot, though, until the November 2008 general election.Commissioners said the legislative plan doesn’t cut taxes enough – particularly for businesses, snowbirds, landlords and recent or first-time home buyers – although lawmakers estimate it would save taxpayers $12.4 billion over five years.The discussion ranged from simply expanding the legislative plan to eliminating property tax collections for schools and replacing those dollars by repealing sales tax exemptions.“We now have to come together and say this is something that we are going to definitely address and it should be our No. 1 priority,” said Commissioner Nancy Riley, president of the Florida Association of Realtors.Duval County Tax Collector Mike Hogan said, “Folks are expecting us to do something.”The full commission didn’t discuss specific alternatives but several came up later during a meeting of the panel’s Planning and Budgetary Processes Committee chaired by former state Rep. Carlos Lacasa, a Miami lawyer.Lacasa said he favors a plan the House had passed before reluctantly accepting a take-it-or-leave-it compromise offered by the Senate.“The Legislature moved the ball in the right direction, but the ball can still be moved further,” Lacasa said.He thinks voters should pass the legislative proposal and then the commission could offer more tax savings in the fall.The Jan. 29 proposal would double the current $25,000 homestead exemption but only for primary homes valued at more than $50,000 – and except for school taxes. That provision is expected to save $240 a year for the average homeowner.The legislative amendment also would let homesteaders take at least part of their existing Save Our Homes benefits along when they move - known as “portability” - up to an assessed value of $500,000.Save Our Homes caps annual assessment increases at 3 percent. The legislative plan would establish a similar cap of 10 percent for businesses, second homes and rentals although increases rarely are that high.Lacasa said he favors a 5 percent cap on non-homestead assessments and a $1 million portability limit, both part of the House plan. He also advocates an additional exemption for first-time home buyers.Riley, of Clearwater, said expanding the portability limit to $1 million is her top priority, saying what that buys “is getting smaller and smaller.”Lake County Tax Collector Bob McKee said replacing local school taxes with new state money generated by repealing certain sales tax exemptions could cut property tax bills by up to 54 percent. Services and an array of goods including food and medicine are exempt from sales tax.“That’s serious money,” McKee said. “It’s not $240 a year ... That’s real tax relief.”The Legislature repealed exemptions for most services in 1987 but quickly restored them after protests mostly from businesses.Commissioner Martha Barnett, a Tallahassee lawyer and former American Bar Association president, was dismayed property taxes have overshadowed longer-range issues such as broadening the state’s tax base.Commissioner Chairman Allan Bense, a former Florida House speaker from Panama City, in an interview said it may be difficult to pass far-reaching property tax relief because it takes votes from at least 17 of the panel’s 25 regular members to put anything on the ballot.“I think maybe we could put some icing on the cake,” Bense said.
© 2007 The Associated Press, Bill Kaczor, Associated Press Writer.

Pineapple Square gets ball rolling downtown

Opening of first national retailer to be followed next week by kitchen store's debut
By TONI WHITT
toni.whitt@heraldtribune.com

SARASOTA -- Just in time for the holidays, two new retailers and a restaurant are set to open at Pineapple Square.Today's grand opening of tony clothier Brooks Brothers newest store marks the near-completion of the first phase of Pineapple Square and the renovation of the existing stores along Lemon Avenue. The 5,100-square-foot clothing store is at the southeast corner of Main Street and Lemon Avenue.Sur La Table, the Seattle-based kitchen store that competes with retailers like Williams Sonoma, is set to open next week. Hyde Park Prime Steakhouse plans to open next month.The development also has leased two other retail spaces on Main Street, outside Pineapple Square, said John Simon, chief executive and partner for Pineapple Square Properties.To Simon, today's grand opening is special because it brings the first national retailer into Pineapple Square."We're trying to bring new retail life to downtown, and we'll be a catalyst for a lot more," he said.Brooks Brothers is bringing one of five new concept stores to downtown Sarasota with its Brooks Brothers Country Club shop.The concept offers a limited selection of suits and shoes and an expanded line of more casual attire, that fits in more with the Sarasota lifestyle, said Michelle Haast, a district manager for the company. The store is airy and white, with hardwood floors and a casual feel.The other country club stores are in The Hamptons, N.Y., Newport, R.I., Tucson, Ariz., and Sandestin, in the Florida Panhandle.Haas said the company opened the Sarasota store because Sarasotans were already traveling to stores in Naples and Tampa, the two closest retail shops, and because the factory store at Prime Outlets at Ellenton does so well.Sur La Table is scheduled to open Nov. 14 on Lemon Avenue and State Street, across from Whole Foods. It will be the 66th store for the company and one of only three in Florida.The company, which sells high-end and handmade kitchen utensils, looks to put its stores in prosperous communities. It has a shop at Palm Beach Gardens mall and another opening this month in Pembroke Pines."Pineapple Square typifies what Sur La Table was looking for in Florida," said Jack Schwefel, the company's president. Schwefel said the company likes to open in downtown spots with a mix of retail and services.Construction workers were still painting, installing shelves and moving installations at the 4,500-square-foot store Monday.Hyde Park Prime Steakhouse, based in Ohio and frequently listed as one of the top steak restaurants in Zagat, is hoping for a December opening, Simon said. The restaurant, in the former Ovo Cafe space at Lemon and State, has not set a definite date because it wants to make sure it has a fully-trained staff before bringing in customers.Pastry Art, a local coffee shop and bakery, was Pineapple Square's first tenant. It has been open for nearly a year on Main and has been in Sarasota since 1997.Simon also is bringing a new wine bar to Main Street, just outside Pineapple Square. Tastings will open next door to Barnacle Bill's Seafood restaurant.Tastings is a regional wine bar that will carry more than 100 wines in stock, available by the taste, by the glass and by the bottle. Every bottle is sold at retail price and can be opened in the store, or taken home to enjoy.Simon also is leasing to Pagliacci, a gift shop and local retailer, which will open at 1429 Main St."Almost all of our retail space in Phase One is leased or occupied," Simon said.He said he is negotiating with six other retailers for space in the second phase of construction and hopes to announce some of the new retailers in January or February. Simon said he hopes to complete the entire Pineapple Square project in 2010.
Last modified: November 06. 2007 4:08AM

As Tax Cut Plan Goes to Voters, Panel Will Look at Others

As one tax-cut plan goes to voters, panel will look at others
By MICHAEL POLLICK
michael.pollick@heraldtribune.com

While the state's voters scratch their heads over the proposed property tax amendment now winging its way onto a Jan. 29 ballot, a powerful group called the Taxation and Budget Reform Commission is about to begin feverish consideration of even broader budget and tax proposals, one or more of which are likely to end up on November 2008 ballots.The 25-member state-appointed group, which can put an amendment directly onto the November ballot by a two-thirds vote, meets today, its first meeting since the Legislature passed its proposal.Does the Legislature's amendment obviate the need for the commission to look at tax reform?"Absolutely not," said John McKay, a Bradenton resident and a commission member."I've been saying for Lord-how-many-years, the structure is just held together with bailing wire and chewing gum," said McKay, a former president of the Florida Senate. "We cannot continue to keep depending on ad valorem taxes to fund the state because they are so unstable, and it is having a huge detrimental influence on businesses and on second-home property sales."He cites a document that is likely to become a centerpiece of the commission's attempts at budget and tax restructuring: "State of Florida Long-Range Financial Outlook Fiscal Year 2008-09 through 2010-11," which counts the Senate, the House and the Legislative Office of Economic and Demographic Research as co-authors.The upshot of the 95-page study is that the state has to cut $2.3 billion in spending before it even starts the next fiscal year, not counting the further negative impact of the proposed amendment.This is because government has relied too heavily on real estate-related taxes and fees. To some extent these are nonrecurring sources of revenue, being used to fund recurring expenses."In good times that is OK, because people buy a lot of houses, but in bad times it is not good, which is what we are in now," said McKay. "So you've got to find a second source of revenue."That only leads you to one thing, which is sales tax."Meanwhile, another commission member, Lee County Tax Appraiser Kenneth Wilkinson, is also working on a fresh property tax initiative of his own, commission spokeswoman Kathy Torian confirmed. Wilkinson is generally recognized as the father of the Save Our Homes amendment, and has been engaged in a lengthy quest to make accrued Save Our Homes benefits portable as homeowners downsize or upgrade from one Florida residence to another.The Legislature's amendment seeks to do that, but in a limited fashion.Someone who moves to a more expensive house would be able to carry forward up to $500,000 in Save Our Homes accrued benefits, which would go to reduce the taxable value on the new home. If the person downsizes, the exemption would be proportional to the savings on the old house.These proposals and others by commission members are already being vetted by lawyers and prepared for public display, Torian said."One could be completed as early as tomorrow," Torian said Wednesday.Open accessQuite of a bit of the process will be accessible to the public. Committee meetings considering the ideas will typically take place in airport meeting rooms.Torian said that at least a week before a committee takes up a given proposal or set of proposals, she will post the meeting site. There probably will be opportunities for public comment at most of the committee meetings, she said, but it is not guaranteed.Staff members will post detailed minutes of each committee meeting on the Web site. When the full commission starts debating proposals that have emerged from committee -- mostly in the first quarter of 2008 -- staff members will arrange for full transcripts on the Web.Commission chairman Allan Bense has set a soft deadline of Nov. 30 for members to submit their proposals either for a statute or for a constitutional amendment.The first of these proposals could show up as early as today on Bense's desk, said deputy staff director Torian."There could be 20 or 30 different proposal ideas out there right now," Torian said. "Everything will begin hot and heavy now."Within a few days, she expects to add a button marked "Member's Proposals" to the group's Web page, www.floridatbrc.org.Unlike a citizens' initiative, which would require 611,000 signatures by the beginning of February to get onto the November ballot as a proposed amendment, the commission simply needs to agree on a proposed amendment by a two-thirds vote, which means 17 out of 25 members.A simple majority, 13 out of the 25, can send a proposed bill to the Legislature for consideration starting in March.The commission met for the first time in 1990. An amendment adopted by voters in 1998 changed the panel's next appointment to 2007-08 and established that it will meet every 20 years after this.Tax reform dominatesOne commission member whose constituency is really hurting these days is Nancy Riley, president of the Florida Association of Realtors.She would not talk about specific proposals, but she indicated that what the Legislature has wrought for the Jan. 29 ballot is more of a start to tax reform than a finish."It certainly wasn't as much as I hoped for, but at least it was something," said Riley. "It will be a base, and from there we are hoping to expand into other areas."The commission is supposed to consider a broad range of budgetary and tax-related topics such the need for more roads, the state's education system, and so on. But tax reform has so far dominated the public hearings."They didn't talk about the structure of government, or did we need better roads," said Bill Levison, a snowbird who flew down from his home in Lexington, Mass., to attend the Fort Lauderdale hearing and speak his piece."They talked about whether government is getting too much revenue or not enough, whether we should have caps or not on revenues or spending, whether we should keep Save Our Homes or make it portable," he said.Levison founded a tax-cutting group called Broward Activists for Tax Equity that now has 80 members. Its plan, which he provided to the commission in a three-minute speech, focuses on limiting government revenues."Once you limit revenues, you've already prevented runaway taxation, so Save Our Homes wouldn't be necessary, so you could phase it out," Levison said. "We'd try to avoid some sticker shock by phasing it out gradually."
Last modified: November 01. 2007 4:42AM

FED CUTS RATES TO 4.5%

Fed cuts rates to 4.5%
Bernanke and Co. lower interest rates by a quarter of a point to keep the economy on track. But the central bank's inflation concerns signal another cut is unlikely.
By Paul R. La Monica, CNNMoney.com editor at large
October 31 2007: 4:22 PM EDT

NEW YORK (CNNMoney.com) -- The Federal Reserve lowered the target for a critical short-term interest rate by a quarter of a point Wednesday, citing continued concerns about weakness in the housing market.
But the Fed indicated that it is also worried about inflation, a sign that the central bank may be reluctant to cut rates again at its next meeting in December.
The Fed's commentary about inflation spooked the markets at first, and stocks gave up much of their earlier gains from the day. But stocks eventually recovered and moved on to close up for the day.
The widely-expected move comes on the heels of a half-point rate cut by the central bank in September and leaves the federal funds rate at 4.5 percent, its lowest level since January 2006.
Not all of the Fed's policy committee members voted in favor of a rate cut, however. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, preferred no change to the federal funds rate. The Fed also lowered its largely symbolic discount rate by a quarter of a point to 5 percent. That decision was unanimous.
The federal funds rate, an overnight lending rate for banks, is important to the economy since it influences how much interest consumers pay on credit card debt, home equity lines of credit and auto loans. It also impacts how much it costs corporations to borrow money.
Weakness in the housing market and problems with subprime mortgages - loans made to those with less-than-perfect credit - have led to billions of dollars in writedowns at major financial institutions. For this reason, most investors believed the Fed would lower rates again in an attempt to limit the mortgage meltdown's spillover into the broader economy.
The Fed acknowledged the danger of the housing problems. "[T]he pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Fed said in its closely watched statement.
"Housing will continue to be a drag," said Thomas di Galoma, head of U.S. Treasury trading with Jefferies & Co.
"If the Fed sees weaker housing data, they probably will drop rates another quarter point later this year. In the back of everyone's mind, people are wondering how will banks and brokers come out of this. Those fears are not going away overnight," di Galoma added.
But the Fed also said that it felt Wednesday's action, combined with the rate cut in September, "should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets."
There are questions as to whether the credit crisis really has had a major impact on the economy outside of housing. The government reported Wednesday that gross domestic product in the U.S. grew at a 3.9 percent clip in the third quarter, a higher rate of growth than expected.
And some market observers have expressed concerns that with oil prices rising above $90, inflation may still be a threat. So the Fed would be making a mistake by lowering interest rates further, some maintain.
With the dollar weakening against other global currencies, some fear that further rate cuts could fuel even more inflationary pressures.
"This is a hemlock situation. The rate cuts will be self-defeating," said Haag Sherman, co-founder and managing director of Salient Partners, an asset management division of investment bank Sanders Morris Harris Group. "The more you cut rates, the more dollar depreciation you will see and ultimately more pressure on commodity prices like oil and gold."
To that end, the Fed said in its statement that "recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation."
Quincy Krosby, chief investment strategist at the Hartford, said that she was not surprised to see the Fed talk more about inflation.
"I figured that if the Fed cut by a quarter of a point as the market expected, the statement would be more hawkish about inflation. The Fed had to balance their actions and words. You can't have oil at $94 and pretend it didn't happen," she said.
But she added that the Fed is not closing the door on further rate cuts. Rather, she thinks the central bank is trying to gain some control over the market and re-establish that it, and not Wall Street, will dictate what happens to interest rates in the future.
Some have criticized the Fed for responding to pressure from investors to cut rates and have argued that the rate cuts may be bailing out people who made poor decisions.
"In a market like this, you don't want to surprise investors. Nonetheless, this gives Bernanke more flexibility," Crosby said. "I do expect more rate cuts down the road as the housing market affects consumer spending and psychology. But this gives the Fed more flexibility and allows them to have some distance from the market."
The Fed's tough talk on inflation has started to quash hopes for another rate cut at the Fed's next meeting on Dec. 11.
Bond prices fell Wednesday after the Fed's announcement, lifting the yield on the benchmark U.S. 10-Year Treasury from 4.4 percent to 4.45 percent. Yields and prices move in opposite directions and long-term bond yields typically move higher when short-term rates are expected to rise.
Also, prior to this afternoon's rate cut, investors were pricing in a 64 percent chance that the Fed would lower rates by a quarter of a point in December, according to fed funds futures listed on the Chicago Board of Trade. After the meeting, chances of a December rate cut dipped to 44 percent.
"I think the message the Fed is sending is that the dollar has weakened far enough and that they may not be able to cut rates anymore," said Chip Hanlon, president of Delta Global Advisors, an investment management firm. "The signal is that the Fed will hold rates steady in December."

2007 Sarasota real estate market continues to mirror 2006

Oct. 24, 2007

*The following press release was sent to local media on Oct. 24 at 12 p.m.*

2007 Sarasota real estate market continues to mirror 2006
The Sarasota real estate market this year continues to mirror last year, with sales figures year-to-date for homes and condominiums in the Sarasota MLS declining only a modest 7 percent through the first nine months of 2007 compared to the same period in 2006.

In total, 4,830 closings were reported through the end of September 2007, compared to 5,194 closings through September 2006. These numbers are reminiscent of the market through Sept. 30, 2001, when there were 4,476 closings reported. However, home and condominium prices have obviously increased dramatically during the past six years.

In fact, the total volume of sales for the first nine months of 2001 was only $1.22 billion, while the figure was $2.365 billion, or almost double this year. This is an indicator of how much homes and condominiums have appreciated in only a short time in our area. Despite the recent downturn in median prices from the peak experienced in 2005, for those who owned a home for the past several years, there has still been a substantial increase in value and equity in the property.

Condominium prices were a bright spot, up year-to-date through Sept. 30, with the median sale price for the first nine months at $355,000, compared to only $310,000 for the same period in 2006. This represents an increase of 14.5 percent.

The median sale price of a home was $309,000 year-to-date through September 2007, compared to $350,000 for the first nine months of 2006, for a decline of 11.7 percent.

The Sarasota MLS did show a dip in sales for September 2007, with 234 single family home sales and 104 condominium sales, compared to September 2006, when 316 home and 134 condos were reported sold. However, September is often one of the slowest sales months of the year, prior to the return of seasonal residents and potential home buyers.

"We are continuing to see stabilization in our market numbers as we come out of the slower, end-of-summer months," said Joe Hembree, 2007 SAR President. "Word of mouth indicates we are already seeing an increase in visitors to open houses, and we expect the season will bring a new wave of serious buyers, who will see a market in recovery, with prices lower than people have seen in a few years."

Viewing the statistics generated by the Florida Association of Realtors®, which combines the Sarasota-Bradenton-Venice area as one Metropolitan Service Area (MSA), Hembree noted this region is still doing better than the overall state.

"We were only down 10 percent in terms of condominium sales for the month, while the overall state was down 37 percent," said Hembree. "The median condo sale price also was up by 6 percent for our MSA, while the state was down 4 percent. Our single family home sales were down 25 percent, September to September, while the state was down 38 percent. Ocala's MSA was down 57 percent, and Orlando was down 48 percent. So you can see that we are still performing relatively well in a down market."

On Oct. 16, during a panel discussion concerning the local market, sponsored by SAR and the Time2Buy Sarasota campaign, noted national economist John Tuccillo said all signs are pointing to the first phase of a market recovery now in progress in Sarasota.

The cyclical real estate industry often sees the start of a new phase reflected in lower numbers of listings, which is evident in the Sarasota market. Tuccillo noted this is normally followed by the second phase, a reduction in the number of days on market, and then the third phase, a rise in the ratio of sale price to list price.


Sarasota Association of REALTORS®

$11 BILLION PROPERTY TAX RELIEF PLAN

FOR IMMEDIATE RELEASE
October 24, 2007

HOUSE PASSES $11 BILLION PROPERTY TAX RELIEF PLAN WITH STRONG BI-PARTISAN SUPPORT

TALLAHASSEE – A bi-partisan coalition of Republican and Democratic lawmakers in the Florida House overwhelmingly supported an improved property tax reform plan today expected to provide over $11 billion dollars in property tax relief during the next four years. The measure (CS/SJR 2D) passed by a 108 to 2 vote.

The plan preserves Save Our Homes, ensures portability of accumulated Save Our Homes benefits, caps year-to-year increases on non-homestead and commercial properties, and provides all homestead property owners a Guaranteed Save Our Homes benefit. If approved by the Senate, the measure will once again give Floridians the opportunity to vote for meaningful property tax reform on January 29, 2008.

“The plan we passed today accomplishes is a strong step forward for property tax relief,” said Chairman Dean Cannon (R-Winter Park), the lead property tax negotiator in the Florida House. “It provides meaningful relief to Floridians suffering under the weight of oppressive taxes, it reforms a broken property tax system that is riddled with inequities, and it creates new protections for all property owners from unchecked property tax hikes in the future.”

“We have listened to the concerns of Senators and Representatives, Democrats and Republicans alike and have passed a revised approach to the property tax situation,” said Representative Doug Holder (R-Sarasota). “It’s a bi-partisan product that is a significant improvement over the original plan – providing the same amount of relief but in a more efficient manner.”

The measure passed today:

Preserves Save Our Homes.

Allows “portability” of accumulated Save Our Homes (SOH) benefits.
Homeowners may transfer their SOH benefit to a new homestead anywhere in Florida within 2 years of leaving their former homestead
If “upsizing” to a home of equal or greater just value, the homestead owner can transfer 100% of the SOH benefit to the new homestead, up to a $1 million transferred benefit.
If “downsizing” to a home with a lower just value, the homestead owner can transfer a SOH benefit that that protects the same percentage of value as it did the former homestead, up to a $1 million benefit.

Provides a “Guaranteed Save Our Homes Benefit” for all homestead properties, so that all homestead owners can enjoy meaningful SOH savings without having to wait years to get them (does not apply to school tax levies).
All homeowners will own a SOH benefit that will accumulate on an annual basis and that can be carried with them from home to home (the “accumulated SOH benefit”).
If a homeowner has a small accumulated SOH benefit (like most recent homebuyers or new homestead buyers) they will receive a guaranteed exemption equal to 40% (or 100% for low-income seniors) of the county’s median just value for homesteads.
This is called the “Guaranteed SOH Benefit.” The Guaranteed SOH Benefit applies to home value above $50,000.
Along with using the county median home value approach, this will minimize the impact on small cities and counties. The homeowner will continue to build an accumulated SOH benefit. Once the accumulated SOH benefit is greater than the guaranteed benefit, the homeowner will receive the accumulated SOH benefit.

Provides a 5% assessment cap for all non-homestead and commercial properties in Florida to guarantee property tax predictability and protection for all property owners.
Non-commercial properties will be reassessed at change of ownership.
Non-homestead properties will be reassessed when the property undergoes a substantial modification or change of use.

Creates a new Tangible Personal Property Exemption of $25,000.

Provides for limitations on assessed values of properties used for affordable housing and working waterfronts (does not apply to school tax levies).

Instills accountability for all local property appraisers by requiring every appraiser to be elected.

Sarasota market continues to stabilize after boom years

*The following press release was sent to local media on Sept. 25 at 11 a.m.*

Sales figures year-to-date for homes and condominiums in the Sarasota MLS are close to the market totals experienced in 2006 - declining only a modest 6 percent through the first eight months of 2007 compared to the same period in 2006.

In total, 4,460 closings were reported through the end of August 2007, compared to 4,747 closings through August 2006. These numbers are reminiscent of the market in 2000, when a total of 4,051 closings were reported, and 2001, when there were 4,732 closings through Aug. 31. However, home and condominium prices have increased dramatically during the past seven years.

Pending sales remained above 450 for the month of August, indicating the winter months will likely not see the kind of drop in sales experienced in the later months of 2006. Pending sales climbed by 164 percent from August 2006, when only 170 pendings were reported. This provides a strong indication that the market will not see the stall in sales that occurred during the end of 2006. The higher number of pending sales will likely mean sales activity will remain higher during the next 30 to 60 days.

Condominium prices were up year-to-date, with the median sale price through the end of August at $365,000, compared to only $310,000 for the same period in 2006. This marks a 17.7 percent increase. The median price was only $292,925 for the first eight months of 2005, often cited as a period within the boom years.

The median sale price of a home was $310,000 year-to-date through August 2007, compared to $350,000 for the first eight months of 2006, for an 11.4 percent decline.

The Sarasota-Bradenton MSA, only three other MSAs in the state experienced better August 2007 to August 2006 comparative numbers for single family home sales, and only three reported better numbers for comparative condo sales.

"I am still convinced that we have weathered this adjustment period in sales volume and prices very well, particularly compared to the rest of the state," said Joe Hembree, 2007 SAR President. "We continue to go through a period of adjustment in the Sarasota market, and there has been some depreciation in both the number of sales and the median price. But we are emerging from the downturn faster and stronger than other markets in the state and nation, and I see no reason to believe we will not continue to see growing strength."

With an eye toward the bigger picture, and discounting the historically abnormal years of 2003-2005, we have seen a return to the normal market experienced as recently as 2001 and 2002, Hembree noted.

Dr. Lawrence Yun, Senior Economist with the National Association of Realtors® indicated in an address at Lakewood Ranch Golf & Country Club on Sept. 14 that he believes there has been a negative spate of news concerning foreclosures, hurricanes, property taxes and insurance increases. This has left potential home buyers with the impression that the bottom of the real estate cycle has not been hit, which he believes is an untrue analysis. In fact, the quarterly figures compiled by FAR and NAR indicate that prices in the local market appear to have bottomed out in the fourth quarter of 2006, and have risen since that time.

"They have jobs, their income is rising, but they are saying, 'I'm going to step back,'" Yun said of the potential home buyers.

But Yun noted July's median price of houses sold in the Sarasota-Bradenton MSA was roughly $277,000, a bargain for the beaches, sunshine, golf, fishing and general location that the region offers. Yun said this means real estate agents need to tell the true story of Florida.

Regarding the hurricane scare, only six Category 3 or greater storms landed on Florida's mainland from 1950 to 2003, although eight touched down between 2004 and 2005. "The chances of that happening again are low," Yun said of the disastrous two-year period.

Yun predicted the Florida housing market will recover from the current malaise, get stronger in 2008 and will be booming again by 2010, once people again realize that Florida's assets are unique.

Home and condominium sales declined in August 2007 to a total of 430 sales, as local families began to settle into the school year and plan ahead for the holidays. However, this figure is still 21.1 percent higher than the low point in the recent local market, reached in December 2006, when only 355 sales closed.

Sales have escalated since then, and have remained stronger throughout 2007.

Sarasota Association of REALTORS®

Fed slashes rates to boost economy

from CNNMoney.com

The Federal Reserve lowers the target on a key short-term interest rate for the first time in four years to 4.75% from 5.25%

NEW YORK (CNNMoney.com) -- The Federal Reserve cut the target on a key short-term interest rate by a half of a percentage point Tuesday to 4.75%, further acknowledgment from the central bank that the mortgage meltdown plaguing Wall Street and Main Street could have a negative impact on the economy.

Stocks surged following the announcement, with the Dow gaining nearly 250 points, or 1.8 percent. The S&P 500 and Nasdaq both shot up more than 2 percent. Bonds fell, sending the yield on the benchmark 10-year U.S. Treasury up to 4.5 percent. (Bond prices and yields move in opposite directions.)

The cut to the federal funds rate, the first since June 2003, was widely anticipated by investors and followed a surprise cut to the Fed's discount rate on Aug. 17. The only question was whether the Fed would lower the federal funds rate by 25 basis points or 50 basis points. (There are 100 basis points in a full percentage point.)

Some investors had thought that Fed chair Ben Bernanke would take a more cautious approach and not cut rates by such a large margin, because a half-point cut could signal the Fed was acting out of desperation to save the economy.

But Alan Skrainka, chief market strategist with Edward Jones in St. Louis, disagreed with that interpretation. He said Wall Street was cheering the rate cut because it proves the Fed is willing to take any moves necessary to ensure the economy is not derailed by problems in the subprime mortgage market, loans made to consumers with less-than-perfect credit.

"We're having champagne and cookies," Skrainka said. "This is not a magical elixir that solves our subprime problems overnight, but it is a big step in the right direction to keep the economy growing. The Fed is sending a strong message that it won't get behind the curve," he added.

click here for complete article from cnnmoney.com

State turns down another insurance rate rise

By JOHN HIELSCHER
Herald Tribune

State regulators shot down another rate increase for a large homeowners insurer.The Florida Office of Insurance Regulation denied a 29.5 percent rate increase sought by insurers of The Hartford Financial Services Group.

The Hartford's six companies cover more than 91,000 Florida homes, including 5,880 in Sarasota, Manatee and Charlotte counties.

The Hartford asked for the rate increase in its "true-up" filing, a price adjustment all state insurers are making after buying their reinsurance that covers the 2007 hurricane season.

Under the insurance reform law, property insurers were expected to cut rates after purchasing the cheaper backup insurance from the state. Instead, dozens of companies first lowered prices but have since filed for sizable rate hikes in their true-up filings that would wipe out any savings for their customers.

The Hartford, for example, lowered rates by 17.7 percent under the new law.It then asked to raise rates by 29.5 percent, which would have meant a net 6.6 percent increase for policyholders.

Insurance Commissioner Kevin McCarty said Hartford's proposed rate increase did not reflect its savings after buying reinsurance from the Florida Hurricane Catastrophe Fund." I am committed to ensuring that insurance companies doing business in Florida are offering policyholders the best rates possible," he said. "

The rates proposed by The Hartford are not in line with this objective." The Hartford, Conn.-based insurer is reviewing OIR's decision and deciding its next step, said Debora Raymond, media relations manager." We believe that our proposed changes are actuarially justified," she said. "The filings we submitted pass on to consumers all of the savings from the temporary increase in catastrophe limits legislation."

The OIR has recently rejected other proposed rate hikes, including from Florida Farm Bureau, Cypress Property & Casualty, First Floridian Auto & Home and Travelers Indemnity Company of America.

Florida Farm is appealing the denial of its 30.3 percent rate hike. At least six companies have withdrawn rate increases after facing scrutiny from the regulators.

Real estate sectors in state strong

From the Sarasota Herald Tribune - 9/6/07
Survey says parts of market, like cap rates, remain stable despite housing turmoil
STAFF REPORT

Foreclosures, dropping sales prices and ballooning inventory. That is most of what you hear these days about the Sunshine State's housing market, but a recent survey of real estate experts coupled with data gathered by the University of Florida's Bergstrom Center for Real Estate Studies suggests that the underlying strength of Florida real estate remains.Cap rates, for example -- a measure of the expected rate of return on a property -- have "remained remarkably undisturbed by current real estate problems," the third quarter "Survey of Emerging Market Conditions" said.

If there is growing apprehension about the real estate market, capitalization rates should increase in response to lenders' rising fears about perceived risk, said Wayne R. Archer, the Bergstrom Center's director, in a statement. But Archer acknowledged that a lot has happened since the center did its third quarter work in July." There's a growing feeling of apprehension or caution, but the results from our survey remind us that the underlying markets for real estate in Florida are still in good shape," Archer said. " Owner residential is the only area of real estate markets where there are problems at this time."Apartments, retail, office, industrial and hospitality all remain stable and healthy," he added. click here for full article...

SURVEY CONCLUSIONS

Some key findings of the third quarter "Survey of Emerging Market Conditions" by the University of Florida's Bergstrom Center for Real Estate Studies:

• Cap rates, a fundamental indicator of perceived risk in value, have remained remarkably undisturbed by current real estate problems.
• Single-family development, while at a low level, continues to be regarded as stable by our expert respondents.
• Condominium markets continue to be regarded as in poor condition.
• Rental markets, including apartments, office, industrial and retail, continue to be regarded as basically stable and healthy.
• The overall outlook for real estate investment has declined somewhat, no doubt reflecting the sobered outlook for housing markets.
• The outlook for the survey respondents' own business continues to decline.
• Cap rates, a fundamental indicator of perceived risk in value, have remained remarkably undisturbed by current real estate problems.

Deborah's Podcast - The upper-end housing market

Premier Properties Realtor Deborah Beacham discusses trends in luxury real estate on the barrier islands with Herald Tribune real estate editor Harold Bubil.
Hear podcast here.