There are many factors at play in our community that affect the property market – some more obvious than others. Today I’m discussing the three highly acclaimed colleges we are lucky to have in our town and the positive impact they have on life here, and of course, the Sarasota real estate market.

There are numerous benefits to living in a college town, from access to incredible intellectual talent to diverse programming and idealistic students. CNN commentator and author Fareed Zakaria calls higher education America’s best industry and I happen to agree. Not only on a personal level – what could be more important than shaping the lives of young people? – but from a business standpoint: a community’s value is increased by its assets and the caliber of universities in Sarasota definitely has a positive impact on property values.

I have maintained that one of the better ways to protect real estate values and our local economy is for industry diversification and better quality and therefore higher paying jobs. Colleges play a big part of bringing both good quality jobs to the area, and also paving the way for young graduates to pursue idealistic goals and solve challenges facing global populations, often by creating opportunity in our own neighborhoods. In this month’s newsletter I share some of the work that is being done both on and off campus by Sarasota colleges, which is adding to the economic and social fabric of our community.

USF Sarasota-Manatee (University South Florida Sarasota-Manatee)

The newest and largest addition to the Sarasota university roll call celebrates its 40th anniversary this year. Program highlights which have benefited our community include:

• Age Friendly Sarasota – An initiative to engage government, businesses, and organizations in building a lifelong community by creating more livable environments.
• Culinary Innovation Lab – This is open to the public, and craft beer brewing courses in partnership with four breweries.
• A successful women’s rowing team which may transition to division 1 this year – a major boon for any town.
• The fastest growing program is biology, where students get to partner with Mote Marine to learn from some of the world’s foremost experts and gain a love for the protection of our waterways.

New College of Florida (NCF)

NCF has been delivering high quality education in Florida since 1960. Boasting more Fulbright Scholarships than many of its Ivy League counterparts, NCF demonstrates the huge benefits of this prestigious international program. With 155 participant countries, Fulbright awards allow students and teachers to bring and learn valuable skills and lessons globally.

In the last five years, 33 awards have been given to the NCF community (which is consistently ranked in the top 5 public liberal arts colleges in the country). For me, one of the strongest examples of the importance of having great higher education opportunities in our community is the role modeling, mentoring, and tutoring which can be of benefit to our 350 different community organizations.

• Many of the faculty at NCF have received substantial grants to conduct research. In fact, over $3M has been awarded locally since 2008. These awards have come from multiple entities including the National Science Foundation, the National Endowment for Humanities and even the US Army.
• NCF students have donated 41,000 hours of community service during the past five years. This is valued at about $1,000,000. This commitment to service is reflected in our larger community as well.

Ringling School of Art and Design

Sarasota’s oldest school is the Ringling School of Art and Design. It was created by Sarasota’s most famous citizen, John Ringling, in 1931. While the number of students and reputation has grown, it is still committed to teaching artists. John Ringling also leaves a powerful cultural legacy of philanthropy which is still palpable in Sarasota today.

• Part of the school’s legacy is that its presidents have been actively engaged in the community for decades – with one even serving as mayor of Sarasota. Rarely a week goes by that I don’t meet someone locally who has attended Ringling.
• Ringling is also a great draw for international students with 20% of the incoming class this year coming from outside the US.
• And here is one of the best benefits of having great schools in your backyard: the community gets the first chance at having this highly artistic and talented group remain locally after graduation.

Students (and the community) get four years to sample and experience Sarasota, which is uniquely positioned to capture the imagination and innovation of youth, their enthusiasm and creativity, and the growth mindsets that contribute to a diverse community.

Robert Berdahl, President of the American Association of Universities, agrees. He says:

“engaged citizens, students, faculty, and staff bring their energy and expertise to their communities in such ways as mentoring and tutoring in K-12 schools, sponsoring community health clinics, spearheading environmental initiatives, and providing ongoing assistance to elderly and disadvantaged residents.”

In Sarasota, the combined efforts of the student bodies, faculty, and staff of these three schools continue to make an indelible mark on the fabric of our community. In my estimation, however, there is still so much more that can be done to leverage the greatness of culture, academia, and excellence. Collectively, the economic impact is hundreds of millions of dollars and for our real estate values and quality of life as a three-college town, there is no limit to the possibilities.
Let me take you on a tour of our three-college town today: 941.587.0740.

In recent months’ real estate newsletters, I have discussed various market segments, and how I feel there is opportunity in certain niches. Today, I am taking a clear stand that we are in a seller’s market, something I have not been able to state since before the crash.

Watch my video below to find out how and why we’ve reached this point.

Why Is Sarasota Now a Seller’s Market?

There are many complex reasons a market tips more in favor of sellers, but in the most simple terms, it is because there are not as many properties for sale as there are buyers looking. See our article on the mathematics of inventory for more information on this principle.

Contributing Factors in Q2 2015

• Interest rates have begun to creep upward, the number of cash buyers is decreasing, and foreign exchange rates are showing a lot of volatility.
• The number of properties sold is up over 5%, despite smaller inventories and a perceived lack of choices.
• The distressed market decreased by about 19% to just over 14% of the market. This is a signal that fewer properties are underwater and/or more property owners in this segment feel better about their property and are able to make payments. This is a healthy sign for the local economy.
• The luxury market – properties listed for $1M and more – rebounded sharply from a moribund first quarter and sales increased over 17% from the second quarter a year ago. In the second quarter of this year, this segment now accounts for over 4% of total sales, which I have not seen since I began tracking the market in 2010. I think this signals that prices have risen and buyers are comfortable making these larger purchases.

Also for the first time, the amount of inventory sold under $200k is now less than 50% of the total market. Meaning prices are on the rise, and inventory is in shorter supply.

What Does this Mean for the Sarasota Real Estate Market?

A recent article suggested the astronomical prices achieved in 2005/2006 would be reached once again in 2017. This means that by then most property owners (who purchased during the speculative boom) should be at par or with equity available. This is a welcome relief to Sarasota property owners. Now buyers need to decide if they are investing in Sarasota real estate for the long haul, if they are speculators who are bullish on the market, or if they are staying on the fence.

While there is always controversy surrounding the local real estate market, with improvements in infrastructure, our cultural amenities, schools, and most importantly industry diversification and better-paying jobs, Sarasota is preparing itself for a self-sustaining, healthy community for the rest of the decade. Good news indeed.

Today I am standing in front of a turtle nest here on Turtle Beach, south Siesta Key. The incredible wildlife we have all around us in Sarasota is one of the many reasons we enjoy the Sarasota lifestyle so much.

Turtle Key is a great example of that lifestyle. It takes its name from the turtles which nest here May through October – some of the multitudes laying roughly 168,000 eggs a year across Sarasota County. It’s a wildlife lover’s dream. I for one always enjoy seeing the Mote sea turtle patrol find and mark new nests.

Each and every micro market in Sarasota has its own particular magic, and its own very specific lifestyle. As a buyer your first choice is which of those suits your lifestyle wants. Then it’s a question of what’s available in each of these markets for your budget?

If we take the segment between $500k and $1M as an example (about 20% of the market) there is about 8.5 months of inventory and it is growing, which is favorable for buyers.

However there is massive variation in what you get within that price range, depending on the micro market, the home’s age, water views, proximity to the islands and many other factors.

Availability Comparisons Between Sarasota’s Islands:

To get a sense of what you can get in this price range on the Sarasota islands, let’s start with Bird Key — an island with 511 single-family homes. Bird Key has only one property in the price range, whereas on Siesta Key there are roughly 116 different choices.

However, of these Siesta Key homes, only 16 are single-family homes on the water and the newest was built in 1983. The majority of single-family houses are mid-20th century ranches. If we head out to Longboat Key, there are roughly 119 in this price range. The newest was built in 1993 and there are 37 waterfront single-family homes.

In the popular Mainland neighborhood of South-side Village there are approximately 24 choices, the newest being built in 2015 and none on the water.

Choice Varies Hugely Market to Market

The point I want to make about options in this price point is that your experience, and what you can get for the money, varies greatly as you look on different islands or micro markets on the mainland.

If you value living on the beach and watching the sunset from your home, condos – especially on the barrier islands – are going to be the better option. If a spacious home is more important, then it may have to be older, and without those sea views.

As always the choice is yours. And deciding what lifestyle you desire to achieve with your budget should always be your first priority. Call with any questions, 941.587.0740.

With the Sarasota property market recovering, the economy growing, and demand for Sarasota ever increasing, there has been a surge of builders and developers bringing new homes and new condominium projects to the market.

These provide all the shiny benefits of being brand new and up-to-the-minute, and oftentimes are a good buy. They offer great digital presentations of just how the view will be from any particular balcony, and their flashy brochures list amenities and features that it is easy to like. But should you trust all they say?

The answer is yes and no.

Know What You’re Signing

There are usually significant differences in new build contracts which buyers should be aware of going in. While most residential transactions in Sarasota involve a real estate contract designed to give buyers and sellers equal footing, the contracts builders and developers use were uniquely designed to protect their interests and the specific project.

When buying a new build you have plenty of leverage to change the contract, but you should have a high caliber Realtor by your side to make sure what you end up signing is fairly balanced in your interests. This, in our opinion is a critical extra level of protection. Using a Realtor does not cost you anything as their compensation is already built into the developer?s costs. In fact, it may cost you more to not engage one.

The 3 Main Factors to Consider When Buying from Sarasota Real Estate Developers

1) You are protected in your right to negotiate the contract and you should take time to do so.

While they may not like for you to make changes, you should certainly understand what you are signing and be comfortable with requesting changes.

The state of Florida has very specifically laid out procedures and timing regarding disclosures; and buyers having sufficient time to review without deposit money being at risk.

2) The following business terms of the contract can be very negotiable.

• How much initial deposit is requested?
• The payment schedule for subsequent deposits/draws.
• How change orders are handled?
• Which upgrades/changes are best to be completed by the builder/developer and which may be better left to the new owner after they take ownership? The developers’ representative is going to say it is easier and less hassle to have changes made by the builder. But is that really cost effective and in your best interests?

3) Don’t trust that because it’s new that all is in order to get an inspection.

There is a big difference between the inspections completed by the municipality to check the building is code compliant and the checklist of a certified home inspector. Know which code your development is being built to; is it Sarasota building code or Miami-Dade (which was designed with stricter deadlines).

Before I take possession, I want a home inspector to visually and physically examine my new residence – especially since most builders are warrantying the construction. Don’t live with the hot/cold water switched or doors and windows sticking when they are opened and closed.

It is the responsibility of the builder/developer to get these issues resolved. You can also use an inspector to check-up during the different stages of construction from when they pour slab to framing and sheet-rock.

Choose the Best Realtor You Can Find to Make Sure You Get Full Protection and Service

If you pick an excellent Realtor, he or she should have the expertise to make sure you are protected, and pull in other great professionals (such as inspectors) whom they know will do a good job.

Having a Realtor is more than a second set of eyes, it is someone on your team looking out to help you get the best legal, business, and construction value on your purchase. I know it’s easy to get mesmerized by the fancy models and presentations. Instead make a good business decision and bring your Realtor to represent you.

Read our up to date article: “The Essential Guide to Buying New Construction Condos in Sarasota.”

Call me with any real estate questions @ 941.587.0740.

In today’s video I am standing in Phillippi Creek – Sarasota’s largest freshwater estuary – a 7.6 mile creek that has a snook hatchery and is popular for recreational fishing.

Snook are a tropical estuary fish which live in brackish waters and are sometimes known as sergeant fish. All snook caught here must be released back into the water and their population is managed sustainably.

A Competitive & Desirable Market = Frustration for Some

For those looking to move to Sarasota and perhaps enjoy the fishing and other elements of our wonderful water lifestyle, it can be a challenging time with lots of competition in some parts of the market.

Recently on Facebook, one of my wife’s friends was lamenting the fact they are having a difficult time buying property in Sarasota with so many bidders in the market. This is true – at some price points in the market competition is fierce – but not in all segments.

Luxury Market Bucking the Trend

In the luxury market, which I define as those properties listed for $1M and more, sales decreased by approximately 15% from the 1^st quarter 2014. In addition there are 22-23 months of inventory which is quite a lot.

I am surprised, as I would have expected an increase in sales from the same quarter last year. Sales were low in Q1 2014 (although they rebounded sharply during the second quarter). It will be interesting to see if the pattern holds true this year as well, and if what we’re seeing is a slowing down in the luxury sector, or if things bounce back in Q2 as they did last year.

How is the Rest of the Market Performing?

From the first quarter a year ago, total sales are up about 1.6%. This is a good indicator of steady growth, and that the market is healthy.

The distressed market is about 2.7% smaller than a year ago, again indicating an improvement in the Sarasota real estate market’s overall health. It is currently a fraction above one in five homes in the Sarasota market.

So Where are the Bidding Wars Happening?

So what about our multiple bidder marketplace? For the segment of the real estate market under $200k there is only about two months of inventory, and for the segment between $200-500k there is five months of inventory.

Both situations can lead to multiple bidders on any property, as six months of inventory is considered a market in balance. Less inventory means more competition for what there is. See my article on supply and demand for a further explanation of how this works.

The price appreciation, and lack of inventory, while frustrating to buyers in this segment (and it does not apply evenly to all neighborhoods), will eventually help bring more properties to the market since at least one in four properties still have negative equity in Florida.

Next Steps if You’re Buying

As I always say, and it’s particularly true if you’re competing in the competitive segments: do your research thoroughly, engage an excellent buyer’s agent to help you, and be ready to jump when you see the property that ticks most of your boxes. If you’re at the luxury end of the market you have the time and leverage to secure yourself some excellent value, or to cut a deal.

In today’s video, I am standing in one of Sarasota’s parks. There are more than 150 local parks in our community, which is almost three times more than the number of National Parks in the United States. This is just another reason why Sarasota so consistently garners national and international applause for its quality of life, most recently being named a “Dream Town” by Coastal Living magazine.

Sarasota’s High Season and High Life

Indeed, Sarasota’s highly regarded lifestyle and “dream town” qualities feed the Sarasota real estate market, and in particular the luxury real estate market. As we reach the middle of our high season – February through April – we see our hotels, beaches and restaurants are at their fullest, with people coming to enjoy that lifestyle, and of course, the splendid weather.

There is a long-standing perception that the high season also brings more real estate activity. But is this true in reality? I am trying to answer this question for the sellers and buyers I work with in the high-end luxury market (properties over $3M).

In this segment, there are currently about 140 properties for sale. During the past 12 months we have averaged about 4 sales each month. This means there is close to three years of inventory in this segment. It makes this segment one of the most opportunity-rich for buyers.

How the Sarasota Luxury Market Behaves

Here are a few observations which define how this part of the market performs regardless of season:

• Buyers in this segment do not need the property but sellers may need to sell the property
• Buyers are looking for value in their purchase
• Buyers prefer new construction and are willing to pay a premium
• Some of the pricing is indiscriminate.

The Luxury Market Performs Solidly All Year

When I looked at month-to-month sales in this segment of the market, they are actually spread throughout the year. Despite perception, during the last 12 months the highest month for closings was September, the month when many places close because it is low season.

So while there may be more activity (e.g. showings) in the busy high season months, I am not seeing a real correlation in an increase in sales. Savvy Sarasota investors take their time and buy throughout the year it seems.

Savvy Sarasota Luxury Buyers Don’t Buy in Haste

Unlike the equities markets where there is an investment in future potential, luxury real estate buyers and sellers have to agree on a price that makes sense in the present market. And buyers looking for value and specific features or lifestyle are prepared to wait it out until the price and the property is right. This means in the luxury market properties can sit – sometimes for years – if they don’t tick all the boxes.

Call with any questions: 941.587.0740.

In today’s video, I am standing on the Ringling Bridge with downtown Sarasota in the background. This is a great vantage point to see the city’s construction cranes – an illustration of Sarasota’s expansion and growth underway.

There is a saying that goes “the heart of a community is its downtown” and the heart of Sarasota has undergone many evolutions throughout its history. Downtown Sarasota – just like good software – gets upgraded periodically and right now we are currently on the cusp of Sarasota X.0. But what does that look like in 2015?

More Accommodation, More Investment, More Buzz

For me, this starts with the hotels. Currently, downtown Sarasota is anchored by three hotels, the Hyatt with 294 rooms, the Ritz Carlton with 266 rooms, and Hotel Indigo with 95 rooms.

This total of 655 rooms is about to increase by 60% with the addition of two Sheraton properties: the Westin Sarasota and Aloft Sarasota. It does not stop there, however, as there are plans for 750 more hotel rooms in downtown (which would be another 70% increase).

Condos Underway Mean Downtown Community Growth

In addition to more places to stay there will be more places to live. There are currently permits in place to build 199 condominiums and 139 rental apartments. There are about 2,000 condominiums and apartments in the development pipeline. In the next 3-5 years there will be a lot more places to live, stay and play in downtown Sarasota.

What Does Downtown Growth Mean for the Real Estate Market?

With this expansion in new construction, there will be many changes and hopefully, the majority will make downtown even better. One major takeaway for me is that there will be even more people visiting, experiencing, and investing in our community. I believe that this increased exposure will increase demand and drive up prices – especially for single-family homes in and around downtown Sarasota.

Read our new guide to buying new construction condos in downtown Sarasota.

In today’s video, I’m sitting at one of Sarasota’s strategically placed pianos, one of many fun and enjoyable highlights of the sidewalk culture of our downtown area. I’m reporting on the highlights from last year – watch below to get my takeaways and hear how the market did overall.

A Healthy Market a Happy City Makes

Sarasota’s real estate market was healthy in 2014 and more people are investing in Sarasota. This is great news for the overall health of the area’s economy, and for all of us enjoying the wonderful Sarasota lifestyle.

Here are the takeaways from a good solid year:

• Sales during the 4th quarter were up 5.6% from the same period a year ago. There was a total increase from 2013 to 2014 by 3%. Good solid growth!
• The luxury market – those properties listed for $1M and more – is very stable. Sales rose 2% from a year ago.
• Sarasota continues to maintain its affordability, which contributes to its well-roundedness and community health. Over 90% of the properties sold are listed for $500,000 and less.

How About Distressed Sales?

The distressed market has decreased 10% from a year ago, which is good news for the market’s overall health. This market is getting smaller, but it’s still a significant part of our overall market with 1 in 5 properties in this category.

How About Prices in the Sarasota Real Estate Market?

When we hit the bottom in 2012 prices were artificially low. During the past two or three years we had unsustainable appreciation rates as the market recovered itself. The local real estate market has recalibrated now, and from now on we should experience much slower yet steady appreciation. Which is good news as it means the market is stable, and not in any kind of boom-bust cycle.

And What’s the Outlook?

With this appreciation in the past few years, most properties have increased in value, which has had the result of unlocking a lot of trapped equity. This means the numbers of sellers and buyers in the real estate market will increase, as there is more liquidity, which will eventually lead to more balance.

Whatever your plans are for 2015, making a real estate investment in Sarasota can help you enjoy the lifestyle you want by increasing the value of your total portfolio. Let us know if we can help you achieve that and call us at 941.587.0740.