In today’s video, I am lucky enough to be filming from Tuscany, Italy. And as part of our continuing focus on global buyers, I want to talk about foreign exchange rates and business expansion, and how those two things affect our real estate market in Sarasota.

Market Expansion is the Key to Unlocking Growth

In business, companies primarily have two ways to grow: either by finding new consumers of their product (either domestically or internationally), or by getting existing customers to increase their purchases of goods or services.

Real estate works the same way. For the real estate market to grow, it needs to attract a larger pool of buyers. In Florida, close to 1 of every 4 properties is sold to a global buyer. These buyers (like most buyers) are looking for good value. However, they have an advantage in the strength of their own currency against the dollar.

An Illuminating Example

In 2011 the Euro was trading at 1.41 dollars per Euro. So a US property that sold for $1m would cost a Eurozone buyer about 700,000 Euro. However, there was still uncertainty in the market and many buyers were still reticent. By 2012, that same purchase cost about 815,000 Euro, an increase of about 16%.

Now, in August of 2013, that purchase costs about 750,000 Euro, a saving of about 8%. One of our German clients chose to purchase this year instead of last, which has resulted in a gain of 8%.

Eurozone buyers purchasing this year have the benefit of this gain, purchasing properties at great historical value, and investing in the US stability which has good long-term prospects, especially in the luxury market.

Stable Markets Come Out on Top

Global economies are still a tricky thing: as money moves from distressed economies to stable economies. Neither buyers nor investors like economic uncertainty. With our stabilized market comes renewed certainty in Sarasota real estate. This means as an international buyer you are putting your money in a sound and safe asset, and as a seller, you should be sure to ask how your property is being marketed to the global buyer.

Call Lee with any questions: 941.587.0740.

Today’s video is filmed from the shores of Lake Dunmore, just outside of Middlebury, Vermont. Watch below to find out how the
Sarasota property market has wised up, and which properties are appreciating in today’s market.

Sarasota Market: Rising Tides vs. Pockets of Appreciation

In this month’s newsletter, I want to talk about the increased activity in the Sarasota market during the second quarter of 2013. There is an old adage that a rising tide lifts all boats. That’s not necessarily true of the Sarasota market this quarter, or any quarter in recent memory. The rising tide in Sarasota is definitely not distributed equally.

While some properties are selling at higher prices than a year ago, there are very specific factors that ensure they do so. As I have shared previously it is still about location, setting, highest and best use of the property, and condition of the house. These variables determine which properties command a premium, and it is those properties only on which we’re seeing appreciation.

Q2 2013 – Positive Health and Growth Across the Board

Here are my takeaways from the market in the second quarter as we enter summer 2013:

• Good news is that it’s an active market across the board and there have been increased closings at all price points compared to the same period a year ago. Closings between April and June were up by 10% on the same period last year. There were more than 1,000 sales each month during the quarter, which is indicative of stable market health.
• As I predicted, after a slow start in the first quarter of this year, sales in the luxury market were up 57%. Yet relative to a year ago they increased by 1.7%
• Sales of distressed properties decreased 28% since the second quarter of 2012. They now account for 20% of the present market, which means the market is becoming healthier too.

A Shrewd Market

There are still properties on the market that continue to depreciate from 2011, as well as those that have appreciated. Rather than a bubble market that is rising uniformly, this is a shrewd market: prices are rising where the features and characteristics of the property justify a higher price.

Also as a future note, Long-term interest rates have increased between 25-30% in the past several months, and we are waiting to see how they will affect the market.

If you are contemplating selling a property that is newer or has been updated, in a great location, and has a great setting, now is the time to sell. Call Lee today at 941.587.0740.

In today’s video, I am standing in Plaza Mayor, Madrid, Spain, host city for SIMA – one of the largest international real estate trade shows in Europe. My team and I have been here for four days to help promote Sarasota, as part of the convention’s spotlight on Florida as an investment destination.

International Networking and Understanding our Foreign Buyers

Our time here has been illuminating. We’ve had the opportunity to meet many people from a wide range of countries, who are interested in what Sarasota has to offer, whether in investment, relocation, or vacation terms. For me it’s been a great chance to understand what drives other foreign buyers in their interest in Sarasota.

From our conversations here in Spain, what is interesting is that Europeans choose Florida not only for the great weather and solid investment potential, but for several other factors: including the ease of our purchase process, our University education system, our secure government, and our title guarantees and insurance – all of which they may not have in their own country. Read a related article here: “A French & Floridian Love Affair: Investments In Sarasota in Paris.

Sarasota Climbing the Ranks as Foreign Investors’ Choice

Sarasota is consistently ranked in the top four destinations in Florida for foreign buyers, and with international clients making up 22 percent of total transactions in the state, that number is significant and growing more so year-on-year. It seems many savvy European investors realize the enormous value the Sarasota lifestyle offers, in addition to the potential returns to be achieved in investment property here.

To my new friends made in Madrid, I look forward to welcoming you to Sarasota. Hasta Luego!

Meeting with Deputy Chief of Mission to the US Embassy in Madrid, Luis Moreno

Meeting International Investors at the Florida Stand

Today I am standing in front of one of my newest listings, a canal-front home with 129 feet of waterfront on Bird Key. This barrier island is five minutes to downtown Sarasota’s cultural district and five minutes to the beaches of Lido Key.

Today I want to talk about the stability of Sarasota’s luxury real estate market. A considerable amount of global money has purchased Sarasota real estate here in the past few years and as I wrote about before, has helped to internationalize Sarasota. Please watch the video below to learn who’s buying what in Sarasota, how they’re choosing to finance, and what that means for the community and real estate market.

In my opinion the most stable segment to invest in is the luxury market. This sector has performed more steadily than others over the last few years of turbulence. For global buyers in particular, this is extremely attractive.

Money Talks And Cash is the Loudest!

An interesting indicator I have noted is that cash buyers are far more prevalent now in the luxury sector of the market. This is a positive indicator that there is great confidence in the value of Sarasota property as it stands now. Back in the boom years of 2004-5 only a third or so of buyers paid cash, the rest borrowed cheap money on over-priced assets.

Now during the first four months of 2013 the number of cash Buyers has increased by almost a hundred percent from 2004. In the luxury market, this is clearly demonstrated with over 70 percent of waterfront property and luxury condominiums being purchased for cash.

Future Looks Rosy for Sarasota Real Estate – We’re on Solid Ground

I take this as a sign that cash buyers are savvy enough to recognize the investment potential and long term desirability of our community. This is a solid validation for Sarasota and with two-thirds of all purchases in cash, you can be sure this is good for the Sarasota economy, as well as helping to protect the market from another bubble situation.

The old adage “bags of cash” seems to have come back to Sarasota. And these purchases are real in every sense: bought and paid for at a very realistic market value. To use our British buyers’ terminology I could go so far as to describe them as “sound as a pound.”

Today I want to talk about Sarasota’s real estate market during the 1st quarter of 2013 and reveal the positive indicators which are present in the market.

Please watch today’s video, from one of Sarasota’s prime locations, to learn my advice on where to find value in the Sarasota market.

First Quarter Leading the Way

The first quarter is typically a big showings time, as people come to escape the winter gray and experiment with sunshine. Sales from the activity typically show up in the statistics from March to May. I expect the numbers for the 2nd quarter this year to be very solid.

That said, this quarter not only paved the way for a great second quarter but was solid in its own right. Here are the numbers:

• Closings are up 9% from the 1st quarter of 2012.
• Sarasota still remains very affordable with 90% of the market under $500k.
• The distressed market shrunk by about 3.3% from the same period last year and is less than ¼ of our total market.
• And the luxury market – properties listed for more than $1m – actually had a 3% decrease in closings. This is primarily from a very slow January. I expect to see very strong luxury numbers in the 2nd quarter.

Premium Features Commanding Premium Prices

The major theme that I am seeing in Sarasota real estate market is that properties that are new or updated, have the right setting, and are prime location are selling for premium – whereas others properties are selling for a good value based on historical data.

Again, Buyers that are willing to change out a kitchen, have a limited view, tolerate some road noise, or have a less than perfect location are still getting really good values. As Albert Einstein said, “Imagination is everything – it is the preview of life’s coming attractions.”

Any question, Call Lee @ 941.587.0740.

Mark Twain said:

“I shall never use profanity except in discussing taxes.”

I’ll refrain from the profanity, but I do want to discuss one of life’s two certainties.

Florida has long been the destination of choice for sun-seekers looking for warmer climes, beautiful beaches and an ocean breeze. But a lesser-known draw to the sunshine state is its accommodating tax laws, something the financially savvy have long been aware of. In fact, from a wealth preservation and tax savings perspective, claiming Florida as your primary residence may be a strategic financial decision.

Today I’m filming from the spectacular private beachfront at one of our newest listings on Siesta Key, 3910 Solymar, one of the luxury beachfront properties that set Sarasota apart. I’ll explain the Florida tax laws that benefit you, and a key differentiator which sets Florida apart when it comes to protecting your main asset: your home.

Sunshine State Equals Tax Rebate

During the last several months there has been much discussion on where to live and how to hold on to more of the money that we earn. I have clients coming to Sarasota to establish residency for several reasons including:

• Florida has one of the best homestead protection laws in the US. This protects a Florida resident from losing their home to any creditor or any other lien except in the case of non-payment of mortgage.
• Florida has no state income tax. In NY, state and local governments take over $14 of every $100, in Florida that number is 0.
• Florida is in the top five best states in the US for favorable small business taxes. And for property taxes Florida is in the middle of the pack.

These facts have helped make Florida, and particularly Sarasota, one of the top retirement destinations in the US. The tax laws also help to create an influx of buyers looking for a luxury Florida property, and a tax break, along with the other great Sarasota perks which come for free: lifestyle, water, warmth and sunshine.

If you own multiple homes, you do have to prove your Florida home as your primary residence in order to gain the tax benefits the state offers. You can do this by showing your children – if you have them – are in school here, your utility bills are received here, your tax statements are received here, and your driving license and voter registration are in the state of Florida. If you can demonstrate in these ways that your intent is for your Florida home to be your main residence, then you will get to enjoy, not only the incredible Sarasota living, but may save a lot of your money too. A win win situation.

Note: Since I am not a lawyer I am not giving legal advice. I want to thank Jonathan Gopman, asset protection lawyer, and Juan Villaveces, real estate lawyer, for sharing this valuable information with me.

Live harmoniously with nature, and enjoy your own exclusive piece of the USA’s premier stretch of sand, in this serene beachfront enclave on Siesta Key. Alluring and relaxed throughout, this is Sarasota lifestyle at its finest, and one of Sarasota’s most desirable addresses. Stand-out features of this exquisite 4 bedroom 4.5 bath home include an award-winning swimming lagoon with waterfall, spa and fire pit, and an open kitchen which is the perfect place for your chef to prepare gourmet dinners, or casual family breakfasts.

A crowning feature of this home is its incredible master retreat, nestled in the trees with it’s own private verandah, and an enviable bathroom featuring rain-fall shower head, soaking tub, dual sinks and a bidet.Throughout the property incredible floor-to-ceiling windows, and sliding doors in abundance let in the expansive Florida sunshine and Gulf breezes. To reach the stunning sands and waters of Siesta Key Beach take a walk along your private footpath – stepping over the resident gopher tortoise – to enjoy the great swimming, sunbathing and marine life viewing this spectacular piece of coastline offers.

Interior detailing in this property is of exceptional quality, and delivers the ultra-polished finish which is characteristic of the most luxurious Sarasota living. Features include: Stainless Steel refrigerator, double oven, gas cook top, Fisher Paykel double dish drawer, beverage refrigerator, and a walk-in pantry.

Take a video tour of this stunning home:

Interested in living on Siesta Key? Call Lee with any questions: 941.587.0740.

2012 was indeed a year of transition, as perception about the market finally came in line with reality. It seems there was enough evidence to convince people of the fact the Sarasota property market is no longer going lower. In actual fact, this happened as many as nine months ago – when I wrote about the fact that the best deals were likely over, except in the luxury sector. But it seems now this realization has firmly sunken in. Watch my video below to see how this is affecting the market and prices:

Now, buyers I’m seeing are fully aware the best deals are behind us, but also recognize whatever they buy offers good value. There is finally stability in the market. And that’s reflected in the numbers: overall sales were up 10% from 2011 to 2012 and there were almost 1,000 more closings.

A visibly stable market changes the game plan for many buyers and sellers. Sellers are listing their properties with the aim of moving on to the next stage of their lifestyle ladder, and buyers are realizing that there’s no waiting for a deal.

Here are my key highlights which show how the market’s performing:

• The luxury market (properties listed for $1m and more) represented 3.5% of the total market, which is about a point higher than the 4th quarter for 2011.
• 12% of the market in Sarasota is for properties between $500k and $1m. It has not been over 10% for many years. This means prices are on the up.
• The distressed segment is hovering at about 3 in 10 properties changing hands. This is around where it’s been for the past 12 months, so this sector is stable and not increasing. As the equity in the market increases, there will be less and less distressed properties.
• Closings in the 4th quarter of 2012 increased by 17% over the 4th quarter of 2011, which speaks for itself.
• Finally, properties under $200k represented roughly 55% of transactions. This is significantly lower than previously, which means two things: that prices are rising in this segment, and that we’re getting more buyers at the higher price points.

Everyone’s Looking Lively as the Market Picks up Pace

Many sellers who are ready for a lifestyle change are listing their properties so that they can make that change happen. Buyers realize the best opportunities are long gone, but that they can negotiate out the current market value based on solid data and buy with confidence in their investment.

If you’d like to discuss current opportunities please don’t hesitate to call me directly at 941.587.0740.