2015 Issues to Watch: Property sales: Going up or down?

EAST COUNTY — It was an easy decision for Ron Javate to trade Chicago’s bustle for life in the Ranch.
A 40-year resident of “The Windy City,” Javate accepted a job opportunity in East County about three years ago, just two days after visiting the area for the first time.

“Lakewood Ranch is beautiful and the schools are great,” Javate said. “We did our research and were most impressed with this area.”

The father of two elementary–aged children rented in University Park until six months ago, when he moved to Bridgewater. Now, he lives in a five-bedroom home that spans 3,300 square feet.

Javate landed his new home for just less than $500,000 — a steal compared with the prices of smaller homes in Chicago, he said.

He wanted more space and an affordable price tag — common requirements that keep homebuyers coming to East County.

Last year, 819 single-family homes and 146 condominiums and townhomes sold in East County, Coldwell Banker Managing Broker Terrence Cook cited from a Multiple Service Listing (MLS ) report.

The parameters ranged from University Parkway to State Road 64, and Interstate 75 to County Road 675.
While single-family home sales dropped slightly, with 821 homes sold in 2013, Executive Vice President of the Manatee Sarasota Building Industry Association Alan Anderson and others expect those numbers to climb in 2015.

In 2014, single-family home permits were on the rise, with a 2% increase, or 1,185 new homes proposed for East County and areas south of the Manatee River, compared with 1,157 permits in 2013.

Retirees predominantly purchased property in Lakewood Ranch, Parrish and other areas east of Interstate 75 or north of Braden River, Anderson said.

Single-family home and townhome prices also rose throughout the year. Coldwell Banker real estate agent Terri Henson said median prices increased about 11% in 2014 from a year ago for both.

Homes that sold for $150,000 two years ago cost more than $200,000 today, she said.

“The great buys are kind of gone now,” Henson said.

The trends show a market with more demand than supply and plenty of consumer interest, which will bleed into 2015, Michael Saunders & Co. Commercial Real Estate Specialist Susan Goldstein said.

“The market was continuing to get stronger in 2014,” Goldstein said. “I think 2015 will be an even stronger year.”

2015 Forecast
Apartment complexes, senior living neighborhoods and single-family homes will increase their presence in East County this year.

Multifamily unit sales are beginning to climb in East County and will continue to grow in popularity, real estate authorities agree.

But, Alan Anderson, executive vice president of the Manatee Sarasota Building Industry Association, expects the most popular type of dwelling — single-family homes — to continue as a front-runner in the market.

He expects new single-family sales to increase by 10% in 2015.

Also in 2015, new projects will take shape throughout the area.

Land will be developed for projects in east Lakewood Ranch, along State Road 70 and Lakewood Ranch Boulevard this year.

Vertical construction and infrastructure for The Villages of Lakewood Ranch South’s 5,100 units will begin in 2015 as well.

Coldwell Banker real estate agent Terri Henson expects prices will stabilize more than in 2014, because of the new construction and increase of supply to match the demand.

EAST COUNTY SALES 2013 vs. 2014

Multifamily home update
Although apartment complexes received mixed reviews from Ranch residents last year, multifamily units are still a popular option.

Manatee County Permitting/Development Services Section Manager Cindi Blake cited 46 permits were issued for multi-family unit construction in 2014, compared with 45 permits in 2013. Townhome sales prices have risen 11%.

Blake said the figure reflects projects housed east of Interstate 75.

For Alan Anderson, executive vice president of the Manatee Sarasota Building Industry Association, dwellings with higher densities and residents who utilize public transportation or walk to their destinations are part of East County’s movement toward new urbanism.

“Lakewood Ranch is beginning to cater to everyone’s needs,” Anderson said. “I think it’s exciting we’re open to having these apartments and that type of living.”

Ranch rent rates are also rising.

Lost Creek at Lakewood Ranch rents cost $1,000 for one-bedroom units a year ago. Now, the 96% occupied complex charges $1,160 per month for a one-bedroom unit.

“I think demand is just up,” Henson said. “There aren’t as townhomes on the market, and it’s all about supply and demand.”

The Ranch’s increasing development and location is also driving up prices, Goldstein believes.

To Anderson, higher prices reflect a demand for an easier-living lifestyle that people want.

“These complexes cater to a lifestyle that says you don’t have to mow your own lawn,” Anderson said. “You can go to the beach and play golf instead.”

Michael Saunders and Co. Commercial Real Estate Specialist Susan Goldstein estimated complexes charge $1 to $1.50 per square foot for rent rates. For example, a 1,000-square-foot- apartment would cost the renter from $1,000 to $1,500, she said.

Coldwell Banker real estate agent Terri Henson saw townhome and condo prices increase about 13% last year, she said.

In 2012 and year prior, buyers could find East County townhomes for sale for $60,000. Today, $100,000 to $200,000 is a realistic price for owning a condo, she added.

Where are they buying?
Lakewood Ranch is the strongest, most popular market in East County, said Alan Anderson, executive vice president of the Manatee Sarasota Building Industry Association.

After reviewing the permits pulled for 2014, Anderson also noticed homebuyers are gravitating toward Parrish and other areas surrounding the northern areas of Braden River.

The areas will continue to gain traction this year. The appeal of buying an East County home isn’t going anywhere in the foreseeable future, Anderson said.

“Lakewood Ranch is always a strong market,” Anderson said. “There’s lots of land and it’s ready to be built on.”

Who’s buying?
Families and baby boomers who own homes in more than one state are keeping the housing market strong, according to local real estate officials.

Although individuals are maintaining homes in other states, retirees are buying East County homes to stay in year-round, said Susan Goldstein, Michael Saunders and Co. commercial real estate specialist.

Approximately 60% of Ranch homebuyers are also predominately paying with cash and not taking out a loan from the bank.