An Insider’s Guide to Living the Good Life in Naples

Property buyers in the US are looking at smaller places and are increasingly seeking out smaller homes that are cheaper to furnish and heat.

As a result developers are looking to build smaller properties and make a point of offering well insulated homes and those with eco friendly features. They are also cheaper to build.

Cheaper property is also expected to sell well as they are cheaper to finance in the current recession. And they are cheaper to fit as buyers want cheaper kitchens and other fittings.
Marble kitchen counters are out and Formica is growing in popularity. Most of recent customers are first time buyers who want smaller properties. Typical is a three bedroom, 1,100 square-foot home for $95,000.

A new survey from the American Institute of Architects found that Americans increasingly prefer smaller homes and lower ceilings, in part because of energy costs. According to the trade group 50% of architecture firms find clients are choosing homes with smaller square footage, compared with 13% who said so in 2005.

An analysis of homes sizes over the years shows that new home sizes grew for much of the post-World War Two period, from less than 1,000 square feet in the 1950s to
1,400 square feet in the 1970s and up to more than 2,400 square feet in 2004.

According to US Census data the average home size fell to 2,200 square feet in 2008, the first decline for 13 years and it is expected to fall even further in 2009.

The reversal reflects Americans’ nervousness about the economy and about the stability of their jobs, as well as restrictions lenders have imposed as a result of the ongoing financial crisis. But some experts are warning developers that even cheaper, smaller homes cannot compete with the bargain prices found in the foreclosure sector.

Report Shows 10 Percent Inventory Reduction

NAPLES, Fla.-June 12, 2009- May home sales in all Naples geographic areas showed a substantial increase over 2008, according to a report released by the Naples Area Board of REALTORS

® (NABOR). The report, tracks home listings and sales within Collier County (excluding Marco Island).
Overall pending home sales in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee, and Ave Maria, saw an increase of 101 percent with 1,029 units in May 2009 compared to 511 in May 2008.
“Pending sales in all geographic areas increased at least 50 percent from May 2009 compared to May 2008,” stated Jo Carter, President of Jo Carter & Associates. “This is encouraging as all areas are seeing conditions improve, not just a select few.”
“The market continues to trend upward, with an increase in sales and a reduction in inventory. Home sales increased 36 percent to 5,446 for the 12 months ending May 2009, compared to 4,005 for the 12 months ending May 2008,” stated John Steinwand, President of Naples Realty Services.
The available inventory decreased 10 percent to 10,046 in May 2009 compared to 11,175 in May 2008.

The report provides annual comparisons of single-family home and condo sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary. The statistics are presented in chart format, along with the following analysis: Overall pending home sales for properties under $300,000 saw a 177 percent increase, with 5,160 pending for the 12 months ending May 2009 compared to 1,860 for the 12 months ending May 2008.

The average days on the market decreased 24 percent to 155 in May 2009 compared to 203 in May 2008.

Single-family home sales increased 53 percent with 383 in May 2009 compared to 251 in May 2008; single-family pending home sales saw a 110 percent increase with 603 in May 2009 compared to 287 in May 2008.

Condo sales saw a 24 percent increase with 313 in May 2009 compared to 253 in May 2008.

“A traditional market recovery begins in the lower priced end of the market, and gradually works its way up to the higher price ranges. This trend is now occurring in the Naples area, as the volume of pending sales that are scheduled to close is rising in every price segment,” acknowledged Phil Wood, President of John R. Wood REALTORS®.
According to Tom Bringardner, President of Premier Properties, “Over the last several months, we have not seen a precipitous drop in the median price for properties over $300,000.” For the 12 months ending May 2009, the median price for properties over $300,000 decreased only 1 percent to $550,000 compared to $555,000.
The median refers to the middle value in a set of statistical values that are arranged in ascending or descending order, in this case, prices at which homes were actually sold. It should be noted that in any given period the median could vary greatly if there is an anomaly, a single sale that is significantly higher or lower than other properties in the area.

To view the entire May report, go to www.Naplesarea.com or visit www.NashNaples.com to search inventory of homes.

Total new housing starts have dropped significantly. April figures show that the number of starts is down 54.2 percent from April, 2008. There were only 458,000 homes started in the month. The Commerce Department reports that new housing starts are dropped at levels not seen since 1959. New building permits, another indicator of the health of the construction market, which indicate future building, were also down. They dropped 3.3 percent to 494,000 units, the lowest since records started in January 1960. The have continued downward from 511,000 units in March. That was well below analysts’ estimates of 530,000 units.

Compared to the same period a year-ago, building permits have plunged 50.2 percent.
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This is not bad news for the industry as a whole. It is a fact that builders and those in construction are hurting, as well as the ripple effect on building products and related services, but for the overall market this actually is positive direction. The lack of new construction is allowing the excess inventory to be absorbed, which is what we all need to happen right now.

It is important to make this critical distinction, however. According to the interpretation from the National Association of Home Builders, multifamily units were the hardest hit.
Production of single-family homes actually edged upward in April as builders responded to improving conditions for new-home buyers, according to newly released figures by the U.S. Commerce Department. While overall starts fell 12.8 percent to a record-low seasonally adjusted annual pace of 458,000 units, the decline was entirely confined to the multifamily sector, where production fell 46 percent to a 90,000-unit pace for the month, while single-family starts posted a 2.8 percent gain to 368,000 units.

The House and Senate have completed their 60th day of the 2009 legislative session. This is the day the Legislature should be adjourning “Sine Die.”  However, as you have likely heard, the 2009 regular session of the Florida Legislature has been extended for a full week to finalize the budget.  While the session was extended to next week, today still has that “last-day-of-session feel,” since all non-budget legislation had to be considered for final passage today if it was going to have a chance of becoming law. 
 
One of the final bills consideredlast night was SJR 532. This constitutional amendment will ask voters to limit increases in property tax assessments on all non-homestead properties to 5 percent annually. First-time homebuyers could benefit, too, with an additional homestead exemption up to $100,000.

HB 521, the bill that puts the burden of proving that a property tax assessment is correct on the appraiser, not the property owner, also passed both chambers and heads to the Governor. 
 
In the area of property insurance, the Legislature capped rate increases at 10 percent per year for Citizens policyholders (HB 1495). The Legislature also repealed the requirement that, effective Jan. 1, 2010, sellers of property located in a wind-borne debris region, and which has an insured value on the structure of $500,000 or more, provide prospective buyers the structure’s windstorm mitigation rating.
 
The growth management bill (SB 360) we supported passed as a big package. It includes a provision to encourage urban infill by eliminating transportation concurrency, one that allows for expedited comprehensive plan reviews and another that eliminates the development of regional impact process (DRIs) in urban areas. The bill also extends previously obtained permits and approvals by two years, creates a transition process for moving towards a mobility fee system, and streamlines and reduces inefficiency in our approach to growth management.
 
Also, it appears that when the budget is finalized next week, we’ll have $30 million for downpayment assistance to help “front load” the federal first-time homebuyer tax credit.
 
This update was provided by the Florida Association of Realtors.

The Atlantic hurricane season starts June 1 – 30 days from now. Since flood insurance takes 30 days to become effective after a homeowner applies, today marks Floridians last chance to get flood insurance by the June 1 debut.

“Past hurricane seasons have shown that storms can form as early as the beginning of June, so property owners can’t afford to wait to buy flood insurance,” says Ed Connor, acting federal insurance administrator and acting assistant administrator, FEMA Mitigation Directorate.

Many homeowners still wrongly believe that their property insurance policy will cover all damage from a hurricane.

“Homeowners insurance doesn’t cover flood damage and, without flood insurance, property owners may have to absorb the financial losses on their own,” says Connor. “Just a few inches of water can cost thousands of dollars in repairs and, in this economy, few can afford that potential drain on their savings.”

Flood insurance is available through about 85 insurance companies in approximately 20,600 participating communities nationwide. National flood insurance is available to renters, business owners and homeowners, even if it is not required by the terms of a mortgage. While the average flood insurance policy costs about $540 a year, homeowners can protect their properties in moderate-to low-risk areas with lower cost Preferred Risk Policies (PRPs) that start at just $119 a year.

Individuals can learn how to prepare for floods, how to purchase a flood insurance policy and the benefits of protecting their properties against flooding by visiting Floodsmart.gov (http://www.floodsmart.gov) or calling (800) 427-2419.

Many Buyers continue to fence-sit waiting for the market “bottom” stating they are either waiting for the prices to drop another 45% or for fixed interest rates to fall to 2.5%.  (yeah, right!)
 
Regarding interest rates, a little perspective may be in order.  For that reason, Will Dukes has conducted some research on the 30 Year Fixed Mortgage Rate going back to the mid 70’s.  Please click on the attachment provided that will show interest rates are the lowest in the history of our nation and most likely will be in our lifetime.  (Who the heck was buying in 1982 with an average rate of 16% with 2.2 points!)
 
Just as important to understand is this:  for the last several months, rates have continued their historically low levels simply because they are being manipulated by the Federal Reserve and the US Treasury.  15/30 year fixed rates are determined by the prices that investors pay for mortgage backed securities (MBS) as traded on private trading desks across the nation.  Just this week, the Treasury borrowed an additional $101 BILLION dollars in order to continue running the government and to buy more MBS to keep mortgage rates low and stimulate the economy.  THIS WILL NOT CONTINUE!  Eventually, the Fed/Treasury will duck out and rates will gravitate to their natural position.  Prior to Uncle Sam’s buying spree, 30 FRM rates were hovering in the 6.25% range and there is no reason to believe that they won’t head back there eventually.  This is important to convey to your clients who may be unaware and heading for disappointment if they wait too long!
 
Information provided by Will Dukes, Summit Mortgage, wdukes@summit-mortgage.com

Taste of Collier Coming this weekend!

Attention All Yachtsmen! (and women)

Fleets of sailboats take to the Caloosahatchee River for the Fort Myers Sailing Club’s River District Regatta and Boat of the Year event. The first race begins at 10 a.m. on Saturday. For information, call 349-5168 or visit www.fortmyerssailingclub.com.

Broadway Lovers! Come and support the kids!

 

The annual spring Philharmonic Youth Chorale Recital features the 85-voice ensemble performing a variety of music including Broadway hits, folk songs and standard choral worksis happening on Monday at 7 p.m. at the Phil. Call 597-1900 for details.

The New York-based Conference Board said Tuesday that its Consumer Confidence Index rose more than 12 points to 39.2, up from a revised 26.9 in March. The reading marks the highest level since November’s 44.7 and well surpasses economists’ expectations for 29.5.

The consumer confidence survey showed a substantial improvement in consumers’ short-term outlook, including even their assessment of the job picture.

Some encouraging news in areas like retail sales and housing have helped fuel a recent stock rally. Earlier Tuesday, a housing index showed that home prices dropped sharply in February, but for the first time in 25 months the decline was not a record – another sign the housing crisis could be bottoming.

Economists closely monitor consumer sentiment because consumer spending accounts for more than two-thirds of economic activity.

The huge jump in confidence follows a small increase in March, following a freefall in February. Still, the index remains well below year-ago levels of 62.8.

The April gains were fueled by “a significant improvement in the short-term outlook,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement.

She added that the index measuring how shoppers feel now, which posted a moderate gain, offered “a sign that conditions have not deteriorated further and may even moderately improve in the second quarter.”

The Present Situation rose slightly to 23.7 from 21.9 last month. The Expectations Index, which measures how shoppers feel about the economy over the next six months, skyrocketed to 49.5 from 30.2 in March.

That sharp increase – which marked the largest jump since a 13-point gain in November 2005 when the economy was recovering from Hurricanes Katrina and Rita – suggests that people believe the economy is nearing a bottom, Franco said. Still, she noted that the index remains well below the level associated with strong economic growth.

“It looks like the worst is behind us, but clearly we are not out of the woods,” said Franco.

With companies continuing to lay off workers, a major fear is that people will cut back their spending even more, and that could plunge the economy further into a downward spiral. Economists expect the unemployment rate – now at 8.5 percent and the highest since late 1983 – will hit 10 percent by the end of the year and keep climbing next year before it starts coming down.

Meanwhile, investors are becoming more unsettled by the possibility of a major swine flu outbreak, which could stall economic recovery — particularly in regions that depend on travel and tourism. Adam York, an economist at Wachovia Securities, said such a development could dampen confidence levels for May, but it’s still early to tell.

The consumer confidence survey showed that those anticipating business conditions will worsen over the next six months declined to 25.3 percent from 37.8 percent, while those expecting conditions to improve increased to 15.6 percent from 9.6 percent in March.

The employment outlook was also considerably less pessimistic. The percentage of consumers anticipating fewer jobs in the months ahead declined to 33.6 percent from 41.6 percent, while those expecting more jobs increased to 13.9 percent from 7.3 percent.

Author: Associated Press, Anne D’Innocenzio

I attended the final performance at the Barbara B. Mann Performing Arts Center as the Broadway classic,”Fiddler on the Roof” ended its Southwest Florida appearance last night. I was amazed by Topol, the renowned Tevya, who at 74 years young seemed to be as sharp and witty and compelling as he was thirty years ago. With over 2,500 performances, a Tony Award nomination and an Oscar nomination, his award winning protrayal was as good as ever! Topol was the first Israeli actor to ever receive that honor.
 
Based on the stories of Sholom Aleichem, Fiddler has been lauded by critics again and again, and has won the hearts of people all around the world. Filled with a rousing, heartwarming score, which includes “Tradition,” “Matchmaker, Matchmaker,” and “Sunrise, Sunset,” Fiddler on the Roof is a timeless classic. I found it hard to restrain myself from singing along with my favorite, “If I Were A Rich Man”, as Chaim Topol performed the role that made him legendary.
 
It is a show we will never tire of!

This past weekend a who’s who of Marco Island eateries provided grazing-sized portions of some of their most special dishes. Food vendors hustled to keep up with demand, and all proceeds benefited the Marco Island YMCA. Longtime Marco Island entertainer Miles Loud took the stage, providing vocals of hits from the 50’s and 60’s. Loud had attendees dancing and singing along with songs such as the Temptations, “Get Ready,” and Wilson Pickett’s “Midnight Hour.” Close by there were diversions for the kiddies which included a bounce house, inflatable slide, candle and sand art, and a climbing wall.
The food was the main event, however, and everyone ranted and raved how good it was. One offering, the blue cheese chips from CJ’s chef Laura Owen, was newsmaking, winning second prize for “best happy hour snack” in a national competition sponsored by the Idaho Potato Commission. The chef recommended they be eaten with a cold beer.
 
YMCA board member Tiffany Homuth said “we’re having a lot of success”. Organizers had been concerned it would be smoky from the fires burning in the Big Cypress National Preserve, but the only smoke evident came from the numerous barbecue grills in use.