Issues to Watch 2014: Real estate

EAST COUNTY — For nearly a year, Michael Saunders & Co. Broker/Associate Antaeus Balevre has set aside time daily to find the perfect home for a Punta Gorda couple.

“They started off looking for homes in gated communities in Lakewood Ranch, but we couldn’t find anything,” Balevre said. “We started looking for homes in gated communities near the University Park area, but couldn’t find anything they were looking for, still. Now, they’re just looking for a two- or three-bedroom home anywhere in this area.”

Consumers struggled to find reasonably priced homes that matched their criteria in 2013, Balevre said.
In 2014, however, things may be different.

Realtors say they expect fewer investors to snatch homes off the market in the coming year, which will leave more inventory available from which primary homebuyers can choose.

“Investors are shifting to other markets,” said Peter Crowley, the 2014 president of Sarasota Association of Realtors. “That’s not to say they aren’t still here, but I don’t think they’ll be as predominant in 2014.”
Trends also show home prices will continue to rise.

A Sarasota Association of Realtors report cites prices of single-family homes were up 20.6% year to date as of November. The average price jumped from $155,000 in November 2012 to $187,000 in November 2013 — a trend real estate authorities agree will continue in 2014.

In Lakewood Ranch, prices were up 7.9% from 2012, and continue to climb, said Jimmy Stewart, vice president of sales for Lakewood Ranch Communities.

Home inventory also is on the rise.

As of Nov. 30, the supply of homes in Sarasota County’s inventory was 5.4 months’ worth for single-family homes and six months for condos — up from 4.8 months in 2012. The time frame reflects how long it would take to sell every home on the market now at the current sales rates.

For prospective buyers who aren’t impressed with resale options, constructing a new home is becoming a more appealing option, as well.

New homes account for 56.3% of all homes sold in the Lakewood Ranch market currently.

“It’s a handsome alternative, getting what you want, the way you want it — the warranties and amenities,” said Alan Anderson, executive vice president for Manatee-Sarasota Building Industry Association. “All those things go along with a new home over an existing one. The builder has the opportunity to customize homes to their customers’ needs. Sometimes selections may be limited, but that’s better than going into someone’s old home to change what they have done.”

Buyer demographics
Like last year, buyers still consist predominantly of families and baby boomer retirees, seeking to either upgrade or downgrade from the home they currently have.

Retirees are leaving their single-family homes behind and flocking to the condominium option to avoid performing maintenance on their own home, Balevre said.

Floor plans with master bedrooms on the bottom floor, so residents can avoid going up stairs to get to their bedrooms, is another perk, Balevre said.

Activity-based communities, ones with amenities such as golf courses and tennis courts, also are popular.
“People are buying for the neighborhood first and the home second now,” Anderson said.

Shortsales, situations in which the seller accepts a lower offer for his home than what is still owed on the mortgage, may not generate as high of sales numbers this year, however.

If the Mortgage Forgiveness Debt Relief Act is not renewed, homeowners who sell property in a short sale will start paying taxes on the difference between the amount still owed and the sale price.

The act expired Jan. 1, and legislators will discuss it when they return from holiday break this week.

Real estate professionals anticipate 2014 will see growth in terms of both the number and diversity of homes on the market.

“It (higher home sale numbers) all depends on product diversification and what we have to offer,” Anderson said.

BREAKDOWN
Overview: Investors moving to other markets, leaving more options for primary homebuyers, and the construction of additional homes in East County, has real estate professionals optimistic for a 2014 with more options at reasonable prices.

Timeline: 2014

Contact Amanda Sebastiano at [email protected]