This month we turn our attention to Mediterra as our community of the month. Mediterra stands tall among the most elite communities in Naples. The lush, manicured landscape and more than one thousand acres dedicated to golf and preserve make it a truly special place. Bonita Bay Group, with their reputation for first class developments, pulled out all the stops when they established this amazing place.

At the center of any world class community is the golf course and Mediterra boasts not one but two 18 hole Tom Fazio designed courses. Not only are these courses challenging to the golfer, but they are trophies to the environmental community as well. The Club at Mediterra has been certified as the world’s first 36 hole Audubon International Silver Signature Sanctuary.

Not to be outdone, the tennis crowd has their own facilities to boast about. Six and soon to be eight Har-Tru courts and a top rated tennis program round out the mix. In addition there is a state of the art fitness center featuring every type of equipment you need to get into shape. In the event you overdo it, a trip to the spa and their professional therapists will soothe those overworked muscles. Rounding out the fitness center are the outdoor heated pool, the sauna, and the Enrichment center offering classes in health and nutrition.

Last and certainly not least is the Beach Club. Located just 20 minutes away on the glistening Gulf of Mexico, it is a first class escape from the day to day stresses we all run into. This private beach club features valet parking, a restaurant, bar, locker rooms, a swimming pool, and private cabanas for your beachside relaxation.

Join our growing list of clients who have come to find out that Mediterra is not only beautiful but relaxed and friendly as well. Call us today for a personal tour of this unique and wonderful community.  Homes in Mediterra fall into three classifications, coach homes, detached villas, and single family homes. Coach homes currently start at $439k+, villas at $700k+ and single family homes at $750k+. Call us today at 239-963-4811 for a personal tour of this unique and wonderful community.

OR, you can visit the community website at http://LiveInMediterra.com.

The past 7 or 8 years have been marked by extremism in the real estate world.  First, we had the extreme optimism that homes had turned into money machines.  Banks and buyers alike had the attitude that it did not matter who bought or how much they paid.  Everything was predicated on the assumption that values would rise and rise at a rate that would turn even the worst deals into viable transactions.

Along came the bursting of the bubble and we entered the phase of extreme pessimism.  Real estate transactions came to a screeching halt as everyone stepped back and waited for the world to come to an end.  Unfortunately, it did just that for many.  Prices were unrealistically depressed to a point that they were a mere 40% of replacement value and even so, nobody was buying.  Ever so slowly people re-entered the market and homes began to sell, albeit at ridiculously low prices.

I am calling for 2012 to be the year of “Regained Sanity”.    Of course, the news continues to tell us that there is a recovery but that it is lame at best.  We are inundated with news that new housing starts are up but that they are still only a fraction of what they were in 2005.  We are told that housing prices are recovering but ever so slowly.  We will never see the end of negativity but if you take a closer look some of this news is actually encouraging.  I, for one am happy to see a measured recovery as opposed to a dramatic uptick.

Here in Florida, I will tell you as one of the troops on the ground that sanity is returning. According to the December issue of Money Magazine, Fort Myers has seen the highest increase in home values in the country in 2011 at 5.1%.  Fort Myers Florida Weekly recently published an article revealing that the median price for homes sold this year has risen a whopping 28.27%.  This indicates that the bottom feeding has subsided and a normalcy has returned.  The homes that were built for investors who were over extended and went into default were sucked up by new investors positioned to cash in on the opportunity.  Now that this activity has subsided we see more traditional transactions taking place in the vacation and retirement home category. Finally, it is important to note the distinction from the 2 different numbers provided by Money Magazine & Fort Myers Florida Weekly.  One is reporting home values & the other is reporting MEDIAN sales price.

Indeed November numbers appear to indicate that this trend will accelerate now that we are in season.  All of this having been said, values are still extraordinary.  This area was hit hard and fast in the beginning and struggled for a long time but it appears that the low point was about this time one year ago.  I for one am happy to see slow and measured increases in values.  I believe that it is a sign that people have learned a hard lesson and are now being careful in their decision making.  I look forward to this election year when we as Americans have the opportunity to give direction to our country and send signals to Washington about where we want to go.

Brad and I want to take this opportunity to thank all of you who have enriched our lives.  We truly value the relationships we have established in the course of our business and look forward to the New Year with eager anticipation and hope that you do as well.  Above all else we hope that it brings peace, joy, and happiness to you and your family.

Happy New Year,

Dick Dohack

Lee County, for instance, saw the number of Foreclosure filings jump by 39.5 % to 1,922 units according to “RealtyTrac.  That number, however, was down by nearly 50% from October a year ago.  Similarly, Charlotte County saw their filings rise 43.8% to 542 units.  Collier County was up 17% from September but down 52.5% from last year.

Media does their best to make everything dramatic.  Clearly a rise in foreclosures month over month is notable, but the bigger number is year over year.  By all accounts, the number of foreclosure filings have fallen by 50% in Southwest Florida year over year.  You can bet that fact along with steady demand has helped prices inch up ever so slightly.

All of these statistics could mean that the smoke has cleared with the “robo-signing” problems and that banks are back on track and processing delinquent homes.  The big question is how will they release them to the market and when.  My theory has been that they will release this inventory in a more measured way and work to protect the remaining property values but that remains to be seen.  In the mean time, we wait and watch but we have only been seeing foreclosure inventory remain sparse and overall prices have been moving up.

If you have your eyes on a specific community I suggest that you communicate that to us and act quickly if we send something your way that you like.  The market is turning over quickly and it is harder and harder to find deals.  We recently were able to put an offer on a property within hours of it being listed.  We ultimately beat every other agent to the punch and got a fantastic deal negotiated for the buyer.  This would not have happened if we did not know exactly what they were looking for.

Each month we highlight a community in Southwest Florida. This month we have chosen Bella Terra. We have chosen it because there is currently a unique sale opportunity, but I will get to that in a minute.

Bella Terra is centrally located just 3 miles east of I-75 on Corkscrew Road in Estero, FL. Situated right in between Naples and Fort Myers, you have everything at your finger tips. Certainly shopping is a breeze. Miromar Outlets, Gulf Coast Town Center, and Coconut Point are all in close proximity and offer a full array of shopping, dining, and entertainment experiences.

As you enter the gates you immediately notice the fabulous Central fountain and clock tower and to the right the amazing amenity center. In the amenity center you will find nearly any activity you could want. A club house with a full time activity director, a huge resort style pool, fitness center, tennis courts, basketball courts, Bocce ball, Volleyball, soccer, a baseball diamond, and an in-line skating rink are some of the amenities that await you. With more than 2350 homes this community is a beehive of activity.

In the past resale homes were the way to go. Due to the timing of the community there were a number of distressed homes and the prices of new homes just did not make much sense when compared to re-sales. The gap between the two has been narrowing and right at this very time you can actually purchase a brand new Lannar home for less than the price of a re-sale. Are you ready to make a move? Here is your opportunity.

Modena Manor Single Family Home. 1,861 square feet under air, 3 Bedroom, 2 bath. THREE car garage. Granite, 18″ tile, crown molding, SS appliances, many upgraded finishes. Nice site with preserve views.
Was= $289,500 OCT CLOSE= $232,900 Total monthly fees of $192.

Why settle for a home that someone else has lived in when you can purchase brand new at a price like this?  This offer is good until the home is sold or until the end of the month so if it sounds like it might be right for you do not hesitate. Pick up the phone and give us a call. Purchase this month and spend Christmas with your family in your new home.

If you are more interested in resale possibilities, let us know and we will be happy to send you available listings.

I found it most interesting that as the US lost its AAA rating everyone fled from stocks and bought Treasury notes. We all saw in the news that Apple Computers has more liquidity than the federal government. Why then did investors flee from investments in companies with sound financial positions and move to Treasury notes which had just been downgraded?

What followed were wild vacillations in the stock market. The buy and hold investor was eaten alive. The insiders however use this movement to make huge money. It is very hard to profit in a steady market but when there is movement there is opportunity. Some of these investors have deep enough pockets to move the market single-handedly then capitalize on the movement they create. My point is that unless you are very astute and lucky to boot you are a pawn in the big game. It is very difficult to have real control in such an environment.

Now, back to real estate. As you might imagine the real estate market has slowed as all of this has taken place. Sales numbers always post two months in arrears due to the fact that a transaction is not recorded until closing. This being said, I assure you sales have certainly slowed as of late. This is always a slow time of the year in Southwest Florida, but I have seen even the active buyers pull back while they re-evaluate this new environment. The macro-economic client is mostly to blame here.

On a local level, our recent trends have been very good overall. Forbes just posted an article today (thank you Tom) and mentioned Fort Myers as one of the cities where real estate is “resisting the recession.” Here is the excerpt:

“Take Fort Myers. The Sunshine State’s retirement haven, where home prices tumbled 58.6 percent from their 2006 peak, had a 2.9 percent appreciation rate in the first quarter and a 3.7 percent rate during the second. Those numbers have been steadily inching back up since November of 2010, following the home price dip felt throughout the U.S. (including in many of the cities that grace this list) after the first-time home buyer tax credits expired. In spite of that dip, homes in Fort Myers have appreciated 3.8 percent from June of 2010 to June of 2011.” Full Article

All of this leads me to my point. For those with liquidity and a desire to own a home in Florida for either retirement or vacation this is a stellar time to buy. The dismal macro-economic news has put fear into many would be buyers and opened opportunity for those who see the true value in today’s real estate market.

While there are steadily fewer and fewer foreclosures there are nonetheless enough of them to create a climate of value. The real advantage of a foreclosure is that they are actively priced to the market. A time like now creates opportunity for buyers. While there are carrying costs associated with holding real estate most properties here will cash flow if they are purchased and rented properly. For the person who is looking to retire in the next 5 to 10 years, this may indeed be a very good time to buy. Resale properties are currently selling for about 50% to 80% of replacement cost. While we all look at home ownership a little differently than we did 6 years ago we all have to agree that prices are indeed very low right now and there is intrinsic value in real estate. Regardless of what happens with our economy a home is going to retain value since we all need a place to live.

I hope that you agree and will give us an opportunity to discuss the market and the opportunities that are available. A strong argument can be made that Southwest Florida real estate has never been more affordable.

We currently see much information indicating that real estate prices continue to fall and that new construction is all but non-existent. While these facts are true on a national basis, anyone considering Real Estate in Southwest Florida needs to be aware that this area is truly separated from those trends. It was quoted in the Fort Myers News Press that in Lee County the median price in April Was $118,900.00 more than 17% higher than just three months earlier. As for new construction, we now see builders aggressively moving to build not only contracted homes but inventory homes as well. A few communities stand out are Paseo, The Plantation, and Heritage Bay who are all reporting sales at their highest level since 2006.

No Current market report would be complete without some discussion about Short Sales and Foreclosures. One of the terms bantered about in Real Estate circles is “Shadow Inventory”. This refers to homes that are in some stage of foreclosure but have not been brought to the market. While there is no way to dispute that this condition exists there are many theories about why and how it will be resolved. Some of the backlog is due to legal concerns causing banks to back track and review their processing of the documents. I believe that a larger issue is that they have finally come to realize that dumping properties in large blocks was not only hurting their bottom lines but destroying the financial well-being of countless home owners and, in turn, causing many to give up in despair when the value of their homes fell some 60%. We now see a much more orderly release of foreclosure inventory and as a result a firming in values.

As for short sales, they remain – as always – very unpredictable. No two cases are exactly the same due to all of the variables present. We did however receive encouraging news just yesterday that Bank of America will now allow a back-up contract to be substituted in the event that a primary buyer backs out for any reason. In the past this meant that the process had to start over from scratch, adding many months to an already arduous process. This is very encouraging to all of us who work so hard for our clients and get to the finish line just in time to watch everything fall apart. Let’s hope this leads the way for other banks to adopt the same practice.

In conclusion, Southwest Florida has indeed rebounded. I would encourage anyone with aspirations of purchasing in the near term to consider taking action this summer during the off season. It is my belief that this next season will again lead the way to increased activity and to higher prices. Now is a good time to make Southwest Florida your place in the sun.

Let us know your thoughts in the comment section BELOW.

The Plantation golf course, Fort Myers is located in Somerset and boasts 18 holes of beautiful and challenging golf.  The designer Hardzan-Fry has provided a challenging, thought provoking, and yet fun experience.  All golfers will appreciate the beauty of this amazing course and even a scratch golfer will have to respect the challenges that await.  At 7233 yards the challenges are many.  Deep bunkers in the “Pinehurst” tradition will provide you with that “Day at the Beach” experience and the many lakes seem to call my ball more than others.

While the Plantation golf course, Fort Myers is challenging do not let me give you the impression that the challenges overwhelm the fun.  As they say, if it was easy everyone would do it and I would add that it would not have allure to pull you back over and over again.

Of course I always look at a golf course from a real estate perspective.  What does the Plantation golf course, Fort Myers bring to the community.  Actually, a lot.  It is truly one of the premier golf courses in the Fort Myers area and yet membership is optional to residents.  Membership is very affordable and the facilities are hard to beat.  Residents will find that whether you choose to be a member of the Plantation Golf course, Fort Myers or not they will most certainly benefit from it’s existence.

A drive through the community reveals  the beauty of the course and its presence adds value to all of the homes there, not just those on the course.  If you are going to be visiting Fort Myers I ask you to call and allow me to introduce you to this fine community and it’s beautiful golf course.

The problem is that the alternative is to continue to own it, and when that is no longer a desirable reality what do you do? Many go ahead and list their home at a price that is not realistic and set themselves up for a scenario that leaves them chasing the market. 

I recently spoke with a gentleman that listed a property 2 years earlier for $900,000.00 and now finds himself in a situation where he cannot sell it for $500,000.00. He readily acknowledged that had he originally offered it at a price of $800,000.00 we would not be having this conversation. It is so difficult to convey the understanding that the initial offering price is so critical and it must be competitive or it will not attract buyers.

With the abundance of information available to buyers, there are no secrets. If a home does not provide value then the buyers will look right past it and it will cease to have any impact until the price has been lowered significantly enough to again elicit interest.

Every home has unique characteristics and they must be factored in whether they are positive or negative but the bottom line is that the perceived value of your home must be higher that the others it is competing against. One always wonders if money was left on the table but I would much rather be having that conversation than the “Why didn’t it sell” conversation.

What do you think?

 The whole world seems to be in a wait and see holding pattern.  Here in Florida we have watched the Real Estate market run up to unprecedented highs and then watched the bottom fall out from under us.

Few would argue that we have seen and are currently experiencing the bottom as far as prices are concerned.

Even the nay-Sayers have a difficult time predicting that there will be significant slippage from here and I would argue that if there is, no investment is safe.  The artificial props that have kept the stock market alive are caving under the weight of this precocious market.  I for one am not optimistic about its ability to continue to provide growth over time.  Let’s face it; the days of consistent growth are behind us.  Corporations now recognize that they must rely on consistent profits rather than consistent growth and they are having difficulty adapting and performing under this new reality.

 My point in all of this is that us “Baby Boomers” need to re-think our strategies.

In the past we built up our retirement stash and a winter home was a move that was made upon retirement.  Now it should be a part of your planning.  With current prices running about half the cost of new construction and significantly less than national median prices, investing in Florida real estate should be a consideration.  Southwest Florida properties now cash flow for the first time in more than a decade.

Invest in Quality of Life

This is a once in a lifetime opportunity to secure a retirement that for years has been little more than a dream.  With prices at 40% to 60% of those just 3 years ago, the bar has been shifted and you should be thinking about securing your opportunity.  Florida is and always will be a vacation and retirement destination which is why our real estate has suffered so dramatically.  Most people move with the masses, retreating when others retreat and advancing when others advance.  For those who go against those instincts great rewards can be realized.

It is Time to Buy

 I would like to be able to say that an investment in Florida real estate can only go up but nothing in this world is certain.  What I can say is that I sincerely believe that real estate has an intrinsic value that few other investments can boast.  Let me assist you in your own evaluation and I am confident that you will agree.

divide the purchase price by the annual rent the home will command, you can determine which is better as follows.

1 to 15                         Less expensive to own
16 to20                        Owning is more expensive but may make sense
Over 21                       Only makes sense to own in select instances.

 
Let’s consider a real world situation.  Let’s say a house that will sell for $159,000.00 will rent for $1,200.00 per month.  According to her formula you should divide the selling price by the annual rent ($14,400) and you will come up with the number of 11.04.  In this instance, it would be much better to own than to rent.  Of course there are always many variables that come into play.  In Southwest Florida HOA fees can be considerable and have an impact on the cost of occupancy.  On the other side is the uncertainty of market influences on rentals. When you rent you are at the mercy of the landlord every year at renewal time.  Buying must always be a careful decision and it is one that you live with for years to come.  The market we are experiencing in Southwest Florida defies logic.  When selling prices are only 50 to 60% of the cost of new construction it is hard to make the argument for renting.  One of the key incentives for ownership is the ability to build equity.  With the market prices of re-sales at historic lows compared to new construction it is very hard to envision that this gap will not close meaning an increase in value and equity for those who own.  In Southwest Florida, if you have the ability to buy, all indications are that now may be one of the best opportunities in history.