Sales of single-family homes located in the area rose 0.8% in the second quarter of this year compared to last year. Homes priced under $300,000 tend to sell best. Perhaps it is time to consider whether it is the right time for you to invest in the Southwest Florida real estate market.

Currently, Southwest Florida looks like an attractive investment for future homeowners. With a steady stream of buyers moving to the Sunshine State and buying in the Southwest Florida real estate market, acting now will put you ahead of the curve when the prices predictably go up in 2019.

There are more reasons why it is time to consider investing or even selling your Southwest Florida property:

1. As of October, 2018 mortgage rates in Florida are 4.73% for a 30-year fixed and 4.02% for 15-year which is still considered quite low.
2. Limited resale inventory, homeowners looking to sell their property often receive multiple offers. The continuing increase in home prices and higher re-sale value of homes in the area are driving demand and creating some difficulty for buyers. In fact, a recently listed homes or lots can sell in as little as 3 days!
3. New projects are planned to break ground in the area. Just one of the many is Allegiant Air’s $420 million Sunseeker Resort Charlotte Harbor in Port Charlotte. Where there is major development in an area, property prices tend to rise. You might want to seriously consider buying a home promptly or lose that window of opportunity.

The last quarter of 2018 is indeed very exciting for the Southwest Florida real estate market! We can’t wait for more developments to come.

Greg Boland
Suncoasteam Realty LLC,
C-941-979-0482
greg@suncoasteam.com
https://www.sctre.com

The post Southwest Florida Real Estate Market appeared first on Southwest FL Real Estate.

Analyzing the right time to buy a home in Southwest Florida, otherwise known as “Market Timing”, is difficult to calculate. Personal and societal economics are in constant change. Nevertheless, we all need someplace to live and a home is one of our biggest investments. Even if you are considering a second home, it is a large consideration.

During the past several years, especially the last two, prices for homes and condos in Southwest Florida have climbed and the deals that came during the downturn are gone. That is not to say that we’ve rebounded to the peak or that there are no deals to be had. A prudent shopper with the aid of a dedicated real estate agent will always find the best deal in the market to buy a home in Southwest Florida. However, all is relative. A great deal today may be 10 or 20 percent higher than it was only three years ago.

Economists report that home prices increased 5.5% during 2017. That means a home priced at $200,000 in 2016 had increased to $211,000 during 2017. If home price appreciation returns to a more normal and sustainable level in 2018, that is 2.5% – 3% increase, that same home would again cost more. A low end increase of 2.5% would make a $211,000 home cost $216,265 the next year and $221,672 the year after that, more than $21,000 increase in two years.

Perhaps even more important than home price appreciation is an increase in mortgage rates. the cost of a mortgage has been at historic lows through the last decade. However, when the Federal Reserve sets the target level of federal funds rates, banks usually adjust their mortgage rates. Most economists expect that rate to rise in 2018 and hold as long as the economy remains steady.

As of this writing (1/8/2018), mortgage rates are below 4% (one quote I found was 3.875% for a 30 year fixed and 3.375 for a 15 year fixed). Using those numbers, a $200,000 home, 20% down payment, $160,000 mortgage at 3.875% would cost $752.38 per month, principal and interest (This does not include escrows for taxes and insurance). If mortgage rates for the same home and loan amount reach 5% as predicted, the monthly payment would increase to $858.91, an increase of over $100 per month. With taxes and insurance, that total can be over $1,200 per month.

Many people who hope to buy a home in the next year will move those plans up due to these numbers. Purchasing a home now, can save tens of thousands of dollars over the life of a mortgage and even if one purchases with cash, the saving can be significant.

For more information on purchasing a home in Southwest Florida, please call or email Your Suncoasteam, 941-235-7474 or sales@avalonsuncoast.com.

And if you wish to browse the market, click here to search the Southwest Florida MLS.

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A recent study by Standard & Poor’s and its research partners have determined that home prices across the nation are rising at a moderate rate. This is good news as real estate markets show recovery but have not returned to panic speculation.

This, coupled with strong consumer confidence suggests a good time to buy a home. According to economic indicators, consumer confidence rose in August 2016 to its highest level of the year. Lynn Franco, director of economic indicators at The Conference Board said “Consumers’ assessment of both current business and labor market conditions was considerably more favorable than last month. Short-term expectations regarding business and employment conditions, as well as personal income prospects, also improved, suggesting the possibility of a moderate pick-up in growth in the coming months.” The percentage of consumers who expect the economy to improve over the next 6 months rose while those expecting a decline decreased.

Home prices have increased in Florida over the last several years. However, prices have not gotten out of hand and homes are still affordable. In most areas, prices are still about 10 percent below peak. Low interest rates have helped first time buyers and encouraged refinancing of existing loans. In addition, FHA has expanded availability of low down payment mortgages.

Southwest Florida is still a bargain. Port Charlotte and Punta Gorda still provide exceptional value. There are many nice condos available in Port Charlotte for well below $100,000. At this writing, there are over 60 three bedroom, 2 bath homes available in the Port Charlotte / North Port area for under $150,000. Some are even priced below $100,000.

In Punta Gorda Isles, waterfront homes start are available at this writing pried under $300,000. The median asking price of a waterfront pool home in Punta Gorda Isles is $589,900 today. Compare this to anywhere else in Florida and you will see the incredible values.

Your Suncoasteam would be happy to send you a report of currently available properties. Don’t hesitate to call or email. Or you can do your own research at https://suncoasteam.com

The post Home Prices in SW Florida appeared first on Southwest FL Real Estate.

Sarasota Homeownership

According to research by the National Association of Realtors (NAR), the rate of homeownership has fallen to its lowest level since 1965. Today in many areas, people are renting homes when they actually can afford to buy.

For most people, owning a home is their most secure and valuable investment. Homeownership is a way to save money each month without the pain. Rather than handing over the rent to an investor, a homeowner pays a mortgage. The mortgage is tax deductible and at the same time adds to their savings in the form of home equity. Home equity is considered wealth building by economists.

The NAR report has found that the North Port-Sarasota-Bradenton MSA (Metropolitan Statistical Area) is among the best areas in Florida for renters to buy. The report found that over 28% of renters can afford to buy a home in this MSA. Furthermore, historically low mortgage rates are adding to the affordability of homeownership.

If you are currently renting your home or know someone who is, please give us a call. We can help you analyze your budget and put you in touch with a mortgage company to get you pre-qualified for a mortgage. Your Suncoasteam (941-235-7474, sales@avalonsuncoast.com) will help you find the right home to live comfortably and build your wealth.

The post Homeownership in Sarasota Area appeared first on Southwest FL Real Estate.

During August, 2015 there were 1,037 single family homes reported sold in the MLS of Charlotte and Sarasota Counties.
Ave. Listing Price: $302,862
Ave. Selling Price: $289,067
Ave. Selling Price as a Percent of List Price: 95%

344 of the reported sales were in Charlotte County
The average selling price was $200,072, 96% of the list price.
693 of the reported sales were in Sarasota County.
The average selling price was $333,243, 95% of the list price.

In Charlotte County, there were a number of foreclosure homes that sold under $50,000. These homes were mostly in Port Charlotte with a few in Punta Gorda. Such homes usually sell in a very short time frame and often above the asking price. White there were a number of homes sold in Charlotte County approaching one million dollars, only one exceeded that amount. A home on Gasparilla Island (north end of Boca Grande) which sold for $2.1 million.

There were far fewer low priced homes sold in Sarasota County, although Sarasota still had its share of foreclosures. 28 of the homes sold in August in Sarasota County, FL exceeded one million dollars.

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