Florida Realestate En

12/09/2023

FIVE LUXURY PROPERTIES FOR SALE IN SARASOTA

Sarasota is one of the favorite places for buyers to invest in luxury real estate. As of July 20, five luxury residential properties with stunning views, an upscale location, elegant rooms and a number of additional amenities are for sale.

The first property is a house of 281 m2 with four bedrooms for $825,000. It has a large swimming pool, a well-maintained private territory, a garage for three cars. The house is located near schools, educational centers, restaurants. Nearby there are medical and rehabilitation centers, as well as a rejuvenation Center and a surgery clinic.

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The latest property news on Florida.RealEstate. Five luxury properties for sale in Sarasota. All about properties in Florida!

03/16/2023

REAL ESTATE SALES IN TAMPA REACHED SEVERAL BILLION DOLLARS IN 2022

The year 2022 turned out to be extremely profitable for the commercial property market in the Tampa Bay area. 20 largest transactions alone brought the county a total of over $2 billion.

Active in-country migration, a rapid rent growth, and a healthy labor market made this part of Florida a juicy deal for investors looking for profit. Apartments and multi-family houses sold like hot cakes.

For instance, Novel Midtown, a project with 390 residences, was purchased for $236.5 million by CBRE Investment Management only a year after its formal opening. The residential complex offers 1, 2, and 3-bedroom apartments, as well as a seawater pool, co-working spaces, and a yoga studio.

Spanning 52,600 sq m, the Sirata Beach Resort with 382 rooms was sold to Columbia Sussex, a hospitality operator, for $207 million, which broke the previous record of the hotel value in Pinellas County ($202.6 million for the DonCesar Hotel in 2017).

Nine15, a high-rise 23-storey building with 362 luxurious apartments, went to a limited liability company owned by Goldman Sachs for $184 million. Residents can choose between studios and 1 or 2-bedroom apartments here.

In the first half of the year, the market was particularly active. Zach Nolan, Managing Director at JLL Capital Markets, noted that the sales reached a historic high in 2021 but the current year has almost broken that record. By the third quarter, however, the market cooled down a little. Mr. Nolan believes the reason to be concerns about inflation and growing interest rates, which created uncertainty in the investment market.

Despite the smaller amount of transactions in general, buyers are still ready to shell out considerable amounts for first-rate properties in densely populated downtown parts of the city.

https://florida.realestate/news/

03/15/2023

BUYERS OF RESIDENTIAL PROPERTIES IN FLORIDA USE CASH PAYMENTS TO AVOID HIGH MORTGAGE RATES

Discouraged by mortgage rates that surpass 6%, first-time buyers of residential properties increasingly prefer to pay in cash to avoid high expenditures.

The latest report by the Redfin brokerage shows that this October, 32% of homes sold in the USA were paid for in cash. According to the company’s data, this is 29.9% more than last year and the highest since 2014.

Redfin started monitoring this trend more than a decade ago. Cash purchases are understood as transactions with no documented mortgage loans.

Wealthy buyers of residential properties pay in cash now because higher mortgage rates force them to avoid loans and hefty monthly payments they entail, says Chen Zhao, Senior Manager – Economics at Redfin. The average rate on a 30-year mortgage is currently 6.34%.

This October, the number of residences purchased for cash grew the most in the following locations compared to October 2021:

• Riverside, California: 38% of properties paid for in cash
• Cleveland, Ohio: 47% of properties paid for in cash
• Cincinnati, Ohio: 44% of properties paid for in cash
• Montgomery, Pennsylvania: 31% of properties paid for in cash
• Philadelphia, Pennsylvania: 37% of properties paid for in cash

Cash transactions were the most prevalent in Florida. The cities where such sales were the most popular include Jacksonville (with over 50% of all sales made in cash) and West Palm Beach.

According to Redfin experts, a part of the reason why cash transactions are so common in Florida is the great number of wealthy investors.

The National Association of Realtors identified in a separate report that cash accounted for 26% of residential property sales in November, as well as in October, compared to 24% in November 2021. Before the COVID-19 pandemic, the share of cash transactions rarely exceeded 20%.

Private investors or buyers of existing homes, who accounted for the majority of cash transactions, purchased 14% of properties in November compared to 16% in October and 15% in November 2021, the report of the National Association of Realtors says.

Meanwhile, according to the Redfin report, an increasing number of new buyers use cash in an attempt to avoid the interest rates that have doubled since last year.

In 2021, a fixed-rate 30-year mortgage was available at 3.27% on average.

https://florida.realestate/news/

03/14/2023

NEW YORKERS CONTINUE TO MIGRATE TO SOUTH FLORIDA

Statistics show that New York residents wanting to escape the state’s harsh winters in Florida have mostly been migrating to Orlando, Miami, and Tampa over the past five years.

140,000 New Yorkers moved to Florida because it has no state income taxes or payroll taxes, making it a magnet for billionaires and major companies.

New York as a whole has lost 83,400 residents who decided to move to Florida since 2018. Tampa received the greatest number of domestic migrants, whose number reached 34,000 people. 23,500 and 25,900 New Yorkers settled in Orlando and Miami respectively.

Wealthy New York residents usually opt for Miami. Their average household income is still 60.2% higher than that of locals, which drove the rents up.

Many expected that the higher level of net migration from New York to Florida markets would stabilize or reduce as employees are called back to New York offices or when New York migrants start missing the Big Apple lifestyle, notes Ben Witten, Head of Real Estate at Placer.ai. Recent data, however, clearly shows that these trends continue to accelerate, especially in Orlando.

Miami was affected by this wave of migration later, as COVID-19 restrictions forced the majority of people newly arrived to South Florida to go south during 2020 and afterwards.

140,000 people is a fantastic number, taking into account that the same number of Florida land plots is expected to go underwater by 2050 because of the climate change.

The tax base of Miami-Dade County may reduce by approximately $3.8 billion due to the rising sea level but it is not yet clear whether the new wave of taxpayers will improve the state’s economy.

https://florida.realestate/news/

03/13/2023

FLORIDA GOVERNOR RON DESANTIS TAKES MEASURES TO HELP AN “AVERAGE PERSON” AFFORD A HOUSE

As the number of new construction permits dropped to a historic low last month (the lowest since 2020), Don Peebles, Chair and Chief Executive Officer at Peebles Corporation, warns of a “double blow” to the market, making housing unaffordable for an average American.

He also welcomes Florida’s initiative that tries to rectify this situation. He calls the absence and reduction of demand a “double blow” because buyers and consumers can no longer afford what they could purchase last year, as the property price does not match the market value. Meanwhile, credit markets are essentially unwilling to finance development.

Mr. Peebles’ comments are particularly relevant now that the volume of new housing construction in the USA dropped again in November, as high mortgage rates, combined with the universal inflation, continued to cool the demand and the once-overheated housing market.

Mr. Peebles believes that high interest rates are forcing most people out of the market or reducing their buying capacity to a product they are unwilling to buy and this is likely to continue.

Last Friday, Florida Governor Ron DeSantis (a Republican) adopted a law designed to improve the state’s problematic property insurance system. This bill creates a reinsurance fund of $1 billion, reduces legal expenses, and makes some clients leave the state-funded insurance company.

Florida has been doing everything in its power to keep its insurance market stable since 1992, when Hurricane Andrew laid waste to Homestead and bankrupted several insurance firms, so many of the remaining companies were wary of issuing or extending their insurance policies in this state. Homeowners’ risks are also growing, as the climate change makes hurricanes and torrential rains stronger.

Something definitely needs to be done with the uncontrollable insurance costs, yet homeowners are taking huge risks when they insure in Florida or California, where forest fires rage, Mr. Peebles believes. Steps taken by Governor DeSantis are intended to help an average person afford their own home.

The real estate expert declared that Florida had no other choice but to intervene. The high insurance premiums will, however, prevent many people from moving to this state. People cannot relocate to Florida unless they can afford to purchase a home and insure it. Consumers are severely affected, so the state administration had no choice but to help the taxpayers. Mr. Peebles thinks it was a smart move and encourages other states to follow Florida’s example. He predicts that housing construction will revive as soon as inflation is under control.

https://florida.realestate/news/

03/10/2023

REAL ESTATE PRICES IN MIAMI-DADE ROSE AGAIN, AS THE HOUSING AFFORDABILITY CRISIS IN SOUTH FLORIDA CONTINUES

The value of South Florida real estate continues to increase and many local residents are feeling the effects. According to a report published by the Miami Association of Realtors, prices of single-family houses and condominiums grew by 9 – 14% in November in Miami-Dade and Broward Counties, compared to the same month of 2021.

The average cost of a single-family home in Miami-Dade was $550,000 in November, which is 9% higher than $502,750 a year ago. The average apartment price was $395,000, or 14% more than $326,790 last year.

Ken Johnson, Finance Professor at the Florida Atlantic University, says that the low supply remains the key problem in the Miami housing market. He also declared that turning vacant houses into long-term rentals instead of leasing them out via Airbnb could improve the situation significantly.

The huge number of Airbnb users took long-term lease off the market, replacing it with short-term stays, Professor Johnson explains. People who own a second house in South Florida and those who come to the Sunshine State only for the winter, from places like Boston and New York, should think about leasing their property to locals. This will boost the supply and reduce the rent.

Professor Johnson is sure that the society will have to put pressure on local homeowners associations because their introducing strict rules to limit the rent is the key driver behind the rent crisis. There is no proof that leasing an apartment in your building has a negative effect on its value.

Clidiane Aubourg is a resident who felt the pressure of the housing affordability crisis. She used to own a property in Miami Beach that she had to sell to make the ends meet. Aubourg is one of many Miami residents trying to find a new home. The rent on her apartment in Little River used to be $900 per month but gentrification and the unstable housing market changed her community.

Throughout most of the pandemic, Aubourg (53) worked remotely as a customer support representative from her home in Little River. From June to November, she was looking for a new job and fell behind with the rent. Her landlord initiated the eviction process.

The woman applied to the Emergency Rental Assistance Program in October and was granted the right to participate in it in December. She had trouble using this assistance, however, because the program depends on whether the landlord is ready to accept it and the appointed social worker was not able to find a leasing office or landlord to deal with the program.

Aubourg checked every available residential project within a 40-minute drive from Miami but all in vain. She used to belong to the middle class but it is over now.

https://florida.realestate/news/

03/09/2023

SOUTH FLORIDA REAL ESTATE MARKET IS BEGINNING TO STABILIZE

The recent data on the South Florida real estate market is good news for potential buyers interested in local residences. Statistics show that sales of existing properties have been slowing down for ten consecutive months, which means that buyers stand a better chance of successful negotiations with sellers and purchasing the houses and apartments they like.

Angelique Hibbert, Real Estate Professional from South Florida, believes that the market is beginning to stabilize. Out of ten transactions, about three or four sellers help buyers to bear considerable costs because the market is no longer growing at rapid rates.

To give a vivid example, a certain property was listed for $700,000 and viewed 15 times but only three people were actually interested enough to purchase. The home has been in the market for four days, which is a lot. A short time ago, it could take four hours to close.

Things are looking brighter for buyers in South Florida but there is still a long way to go. Despite high interest rates, it’s better to purchase real estate now than to wait for better conditions, Hibbert says. If you wait for the interest rate to lower, the price will grow over that time. So a property worth $925,000 will cost $1.2 million by the time the interest rate reaches the level of 4 – 5%. Whether you can afford such a difference is anyone’s guess.

Ms. Hibbert recommends buyers to negotiate with sellers now, as sales have slowed down sharply, and then refinance when the interest rates finally go down. The real estate professional believes that it’s better to get the best possible price offer right now and then wait for the interest rate to adjust. In her opinion, this will be a better deal eventually.

https://florida.realestate/news/

03/07/2023

HOW ADMINISTRATIONS OF SOUTH FLORIDA CITIES HELP RESIDENTS WHO CANNOT AFFORD THE RENT

Many South Florida residents are facing challenges due to rent surges. Administrations of cities across the state offer assistance. Although the general rent hike started to slow down, it is still significantly higher than a year ago. The average rent in South Florida is $2,827, which is 16% greater than in 2021.

Salaries cannot catch up with the rising cost of living. It remains a grave problem for many residents who are struggling to pay the rent here, says Linda Taylor, CEO at H.O.M.E.S., a non-profit organization that helps low-income people to find affordable housing.

The rent currently shows no signs of considerable reduction, so tenants’ budgets will probably remain limited in the nearest future.

Here are the programs offered to limited-budget tenants by administrations of cities across South Florida:

PALM BEACH COUNTY

The Emergency Rental Assistance Program assigned over $82 million, with about $14.7 million remaining in the fund. The county has now helped 10,202 households to pay the rent, utilities, and moving expenses. Approximately $77 million was spent directly on rental assistance, $2.2 million on relocation, and $3.2 million, on utility bills.

The program accepts requests until 5 p.m. on December 16, whereupon it will temporarily close until February 1 due to a large number of requests received.

The county uses various sources of funding to help as many people as possible. For instance, on January 3, the Administration will start taking requests within the Emergency Food and Shelter Program for a monthly rental benefit of up to $2,000 for a term of three months for people under risk of eviction.

BROWARD COUNTY

Broward County also implements the Emergency Rental Assistance Program. As of now, households in need received about $79.6 million: $76.3 million as direct rental assistance, $2 million as relocation assistance, and $1.3 million on utilities.

There are approximately $9 million left in the fund, so the County still accepts requests.

BOCA RATON

This city assists tenants by using federal grant funds. Under this program, people are eligible for a one-time subsidy for a term of up to six months to cover overdue housing payments of up to $15,000 per family.

To qualify for the program, the highest annual income must be no more than $51,550 for a single person or $73,600 for a family of four.

CORAL SPRINGS

Coral Springs uses its share of $1 million in federal funds to provide financial assistance to tenants whose rent increased by more than 5% from April 2020 until present time. To qualify, tenants must rent a home in Coral Spring and have documentary support that their rent rose by over 5%. They are eligible for up to $3,600 for six months.

There is approximately $746,365 left, so requests are still accepted. Assistance has been provided to 76 families so far.

FORT LAUDERDALE

Tenants whose rent was raised in April 2020 or later can apply for assistance in Fort Lauderdale. Under this program, qualifying applicants can receive up to $3,000 for six months.

This program will operate until the funds are exhausted or it’s no longer needed. There is about $355,000 left in the fund at the moment. 81 applicants have been helped.

https://florida.realestate/news/

03/06/2023

WALT DISNEY WORLD SHARED INTENTIONS OF CREATING AN AFFORDABLE RESIDENTIAL COMMUNITY IN FLORIDA

Walt Disney World’s intention to build a residential community originated in the company’s past. One of Walt Disney’s last ideas was the Experimental Prototype Community of Tomorrow (EPCOT) designed to develop the American business and urban living. Disney considered the creation of a mixed-use residential environment the most important task faced by the US society. He intended to design a city whose development could be controlled, so as not to repeat the urban expansion scenario that the USA experienced in the early 20th century. After Disney died, his idea was abandoned, as the company management was not sure they could create and control a large urban space. Fifty five years later and upon careful consideration, Walt Disney World chose The Michaels Organization to build its first residential community.

The Michaels Organization is going to build over 1,300 apartments on the premises of Walt Disney World. The park that will span approximately 80 acres will create new jobs in Central Florida and solve the housing crisis in the state.

This project will be located only a few kilometers from the Magic Kingdom Park, with schools and shops nearby. The construction of this promising community will be funded by private sources.

John J. O’Donnell, CEO at The Michaels Organization, says their goal is developing a project that will hopefully inspire other organizations and municipalities to build high-quality affordable housing.

Walt Disney World will interact with The Michaels Organization throughout all design and construction processes. Further data, such as the schedule of residences construction, will be posted next year.

Other US companies also support regional development. Handel Architects, for instance, is planning to hire at least 30% of minority- and women-controlled businesses to build Angels Landing, the third tallest tower in Los Angeles Downtown. Similarly, the Lucas Museum decided to hire locals and increase the number of subcontracts with enterprises owned by women, minorities, and veterans.

https://florida.realestate/news/

03/03/2023

HURRICANE IAN’S EFFECT ON FLORIDA: HOW A TRAGEDY OPENED UP NEW OPPORTUNITIES FOR THE REAL ESTATE MARKET

Assumptions that the number of houses sold in Collier County in October will drop drastically after Hurricane Ian proved to be inaccurate, as closed and non-closed sales increased by 23.7% and 8.7% month-on-month respectively. Although 525 deals were canceled or outstanding, the total amount of real estate sold over the month surged by 72.7%, up to 2,325 properties, compared to only 1,346 properties in October 2021.

Many new opportunities for renovation emerged in the current market, which attracted the attention of a far wider audience, says Spenser Haynes, Vice President of Business Development at John R. Wood Properties. These circumstances resulted from a tragedy but will prove to be beneficial for the Naples area in the long term.

Responding to Haynes’ statement, Budge Huskey, CEO at Premier Sotheby’s International Realty, said that many old houses severely damaged by the flooding during Hurricane Ian are in high-demand locations, which will kick off a new construction boom with higher-quality outputs.

Admittedly, closed sales reduced by 24.5% in October, down to 662 transactions, compared to 877 in the same month of 2021. Last year was outstanding for real estate in Collier County. The number of pending sales also dropped by 43.3%, down to 673 transactions.

Statistical data shows that the median closure price of $555,000 remained unchanged in September through October. It did, however, grow by 23.3% compared to October 2021, when it stood at $450,000. The median price of a condominium has reduced by 1.6% since September.

Mr. Haynes adds that we are now witnessing a slight increase in the number of new offers from condominium owners who suffered damages and decided to sell their property instead of renovating it, but the hurricane didn’t cause a fire sale situation.

In October, the number of new listings increased by 26.1% compared to September, which is typical for the season, analysts believe. The number of new sales ads in general reduced by 13.9% in October, down to 908 this year compared to 1,054 last October. The number of new single-family listings, however, surged sharply that month, and was only 10 below the 548 new listings recorded in October 2021.

Although interest rates will grow again, now is a good time to purchase a home in Naples, says Dominic Pallini, Broker at Vanderbilt Realty. The overall percent of current list price received is 96.4% and it has been reducing since April. It means that buyers now have more leverage for negotiations.

Mr. Haynes explains that successful negotiations can reduce mortgage payments enough to offset the higher interest rate.

Molly Lane, Senior Vice President at William Raveis Real Estate, believes that a homeowners’ decision to rebuild or sell their property damaged by Hurricane Ian depends, to a great extent, on the location and circumstances. Some retirees with old damaged houses to the west of Naples prefer to sell their properties “as is” and purchase a home in a different location, usually in a more inland and higher part of Naples. New homeowners in affected areas, on the other hand, prefer to invest in renovations.

Mr. Huskey responds that for each homeowner moving out of the area west of Naples, there are two buyers interested in their property.

https://florida.realestate/news/

03/02/2023

SOUTH FLORIDA’S HIGH-END PROPERTY MARKET WILL EXPERIENCE A NEW SURGE

Susan Rindley, South Florida Real Estate Agent and Expert, shared that buyers of upscale residences have been extremely careful over the past few months. But now that the US Senate elections are over, this segment is headed towards a new surge. Ms. Rindley specializes in waterfront estates and luxury condominiums in Palm Beach, Boca Raton, Fort Lauderdale Beach, and South Beach Miami.

The interest rates have grown but they don’t usually affect the upscale property market, the expert notes. Buyers of high-end mansions are careful during the election period, however, because they want to watch how this affects the stock market. Now that the elections are over the luxury property market is going to have a strong season.

Ms. Rindley has recently closed her tenth deal in the current year, selling a house in Boca Raton for $18.6 million. Ten has always been her lucky number, she says, but it takes more than luck to sell real estate worth that much. Ms. Rindley is famous for her first-rate marketing and closing major deals. In 2022, she sold approximately $80 million worth of real estate – an average of $8 million per deal.

She believes herself to be particularly blessed with returning customers who come to her again and recommend her to their friends and relatives.

Ms. Rindley says that districts generating the highest returns in the new homes and upscale properties segment deserve particular attention. In Fort Lauderdale, the average price per square foot in such homes is $1,600 but properties are twice as expensive in a small exclusive waterfront community in Boca Raton where she has just closed her last deal. Susan observes how new homes in Royal Palm Yacht and Country Club sell for up to $3,100 per square foot. SRD Building Corporation from Boca Raton has to be given credit for its incredible work.

According to Ms. Rindley, these are some of the best homes in the market, where you don’t even need to hire an interior designer when the property is completed. Such residences surpass the standard level of average developers.

https://florida.realestate/news/