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Notes from Charlotte County, Florida

Hurricane Charley visited the SW Florida coast six years ago today

August 13th, 2010 10:30 AM

It was SIX years ago today

At 3:35pm on August 13th, 2004, Hurricane Charley visited the SW Florida coast as a category 4 storm. With sustained winds over 150 miles per hour, Charley caused over 15 billion dollars in damage to the state and left Punta Gorda and points northeast of here in near ruin. I am happy to report that six years later our little burg, and the entire area for that matter, has seen resurgence that is nothing short of remarkable. Come and see for yourself!

Posted by Mike Federau on August 13th, 2010 10:30 AMPost a Comment (0)

Florida’s existing home, condo sales rise in May

June 25th, 2010 12:05 PM

ORLANDO, Fla., June 22, 2010 – Sales of existing homes in Florida rose 18 percent in May, marking 21 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

A total of 16,745 single-family existing homes sold statewide last month compared to 14,172 homes sold in May 2009, according to Florida Realtors. The statewide existing-home median price of $140,400 in May was slightly higher – by $300 – than April's statewide existing-home median price of $140,100. It marks the third month in a row that the statewide existing-home median price has increased over the previous month's median.

Across the state, a variety of housing opportunities continues to be available at attractive prices while mortgage interest rates remain historically low, said 2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville.

"Favorable conditions like this spark buyers' interest," Davis said. "However, like the rest of the world, Floridians are deeply concerned about the long-term ramifications of the April 20th explosion of BP's Deepwater Horizon oil rig, which killed 11 people and triggered the oil spill disaster in the Gulf of Mexico."

Seventeen of Florida's metropolitan statistical areas (MSAs) reported higher existing home and existing condo sales in May. A majority of the state's MSAs have reported increased sales for 23 consecutive months.

Florida's median sales price for existing homes last month was $140,400; a year ago, it was $143,800 for a decrease of 2 percent. The median is the midpoint; half the homes sold for more, half for less.

Thenational median sales price for existing single-family homes in April 2010 was $173,400, up 4.5 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $306,230 in April; in Massachusetts, it was $295,000; in Maryland, it was $244,943; and in New York, it was $197,000.

According to NAR's latest industry outlook, factors such as a return of buyer confidence, stabilizing home prices and an improving economy are supporting the market in the federal homebuyer tax credit's wake. "The housing market has to get back on its own feet," said NAR Chief Economist Lawrence Yun, "and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs."

In Florida's year-to-year comparison for condos, 6,779 units sold statewide last month compared to 4,845 units in May 2009 for an increase of 40 percent. The statewide existing condo median sales price last month was $98,700; in May 2009 it was $113,500 for a 13 percent decrease. The national median existing condo price was $171,000 in April, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.89 percent in May, close to the 4.86 percent averaged during May 2009, according to Freddie Mac. Florida Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's larger markets, the West Palm Beach-Boca Raton MSA reported a total of 887 homes sold in May compared to 737 homes a year earlier for a 20 percent increase. The market's existing home median sales price last month was $235,200; a year earlier it was $232,900 for an increase of 1 percent. A total of 877 condos sold in the MSA in May compared to 676 units sold in May 2009 for an increase of 30 percent. The existing condo median price last month was $99,600; a year earlier, it was $107,500 for a decrease of 7 percent.

Posted by Mike Federau on June 25th, 2010 12:05 PMPost a Comment (0)

Crist Signs Condo Bill 1196 - Requires Lenders on foreclosed properties to cover 12 months of unpaid dues

June 25th, 2010 12:03 PM

Florida Gov. Charlie Crist is making the rounds in South Florida on Thursday, signing a condominium relief bill in three ceremonies.

Crist officially signed Senate Bill 1196 on June 1 but is in town to shake hands and hobnob with some of the people instrumental in getting the measure approved.

The governor was scheduled to appear at the Beach Community Center in Fort Lauderdale, Century Village East in Deerfield Beach and the Hagen Ranch Road Library in Delray Beach.

The bill is meant to help condo boards hammered by financial problems caused the housing meltdown. It requires lenders that foreclose on condo units to cover 12 months of unpaid homeowner association assessments or 1 percent of the original mortgage debt, whichever is less. Previously, lenders had to pay six months of assessments or 1 percent of mortgage debt.

The bill also makes it easier for condo associations to opt out of expensive fire sprinkler, smoke detector and elevator upgrades that must be completed by 2014. In addition, it adds protections for bulk buyers of condo units and suspends voting rights for condo owners who are 90 days delinquent.

Posted by Mike Federau on June 25th, 2010 12:03 PMPost a Comment (0)

Is a housing shortage coming?

June 16th, 2010 2:33 PM

ORLANDO, Fla. – June 16, 2010 – Some experts are saying that the next big real estate problem could be a shortage of homes.

Only 672,000 new homes were started in April. That's less than half the number needed to meet the country's average population growth.

In the past, an average of more than 1.3 million households have been built each year, creating demand for 1.5 million new homes. In 2009, only 398,000 new households were formed, according to the Census Bureau.

"The decline in household formation is artificial," says James Gaines, a real estate economist with Texas A&M. "The young are moving in with their parents. There's even doubling up among working-class people. There's a pent-up demand coming if and when the economy recovers."

Some economists believe this analysis fails to take into account the changing economy or the large inventory of vacant properties. But Gaines and others say these factors are unlikely to significantly drive down demand.

Source: CNNMoney.com, Les Christie (06/15/2010)

Posted by Mike Federau on June 16th, 2010 2:33 PMPost a Comment (0)

Drywall tax break to cover condos, town homes

June 15th, 2010 10:27 AM

WEST PALM BEACH — A new law designed to give homeowners with tainted drywall property tax breaks also will apply to town homes and condos, the Florida Department of Revenue said.

The legislation, which was signed into law this month, aims to offer a consistent tax break by saying that assessments of homes with defective imported or domestic drywall need to be reduced to reflect loss of value.

But inquiries arose about the wording of the law, which says it's intended for single-family residential properties. Condo owners and property managers questioned whether they, too, would be eligible for up to $0 assessments on the value of their buildings.

According to the law, the value of the building should be assessed at $0 in instances where homeowners have had to move out because of the defective drywall. The owner would still pay taxes on the value of the land.

Robert Babin, legislative affairs director for the Florida Department of Revenue, acknowledged that the law does not define "single family residential property."

But he said in a statement that the department interprets it as "any residential property where one family lives," except for rented apartments not owned by an individual family .

Pamela Lamb of the Palm Beach County Property Appraiser's Office agreed that condos should fall under the law's purview.

But she added that redoing condo appraisals under this law could be tricky, as it would be difficult to delineate between the value of the building and the value of the land.

"For condos, inherent in the value of the property is a share of all common elements, like the land, the clubhouse, the pool," Lamb said.

Paul Wilkis is the property manager for The Whitney condominiums in downtown West Palm Beach, which has found defective drywall in a number of its units.

"I was happy to see the legislature was taking this issue into consideration," Wilkis said. But he added that "a lot still needs to be clarified about the law."

Tainted drywall was first publicly reported more than a year ago with complaints that some wallboard made in China gave off a sulfuric gas that smelled bad, corroded metal in the home and caused health problems.

Posted by Mike Federau on June 15th, 2010 10:27 AMPost a Comment (0)

Punta Gorda noted for retirement housing

June 4th, 2010 5:15 PM

PUNTA GORDA - Punta Gorda and Fort Myers were listed among 10 cities offering retirement property "steals" in a recent U.S. News & World Report online post pinpointing areas that have become particularly affordable because of declining home prices over the past several years.

The report was the latest in which Southwest Florida communities have made news as top places in the nation for retirees to find housing bargains.

Port Charlotte had been ranked by publications in February and last fall.

Bob Gray, president of the Punta Gorda-Port Charlotte-North Port Association of Realtors, said there are "extremely good values" in the marketplace, attracting retirees as well as investors. He said home sales in general have been up for much of the year.

Gray said Punta Gorda has turned the corner past the devastation of Hurricane Charley in 2004 and the later construction decline.

"Punta Gorda has done a fantastic job of rebuilding, and there's so much stuff going on here every weekend," he said.

Jack McCabe, of McCabe Research & Consulting in Deerfield Beach, said retirement areas that cater to the active lifestyles of baby boomers are thriving.

"I think Punta Gorda is a great retirement area," said McCabe, adding that Punta Gorda and Fort Myers are just two examples of prime spots all along the Gulf Coast.

The size of retirees' nest eggs usually determines the place they choose, he said.

The report follows a profile of Port Charlotte as a "low-cost haven" in the March/April issue of Where to Retire magazine. That article pointed out qualities in Charlotte County that are important to retirees: waterways for boating and fishing, nature preserves, volunteering opportunities and a variety of shopping centers and entertainment.

Last October, Port Charlotte was rated first among the 25 best places in the country to retire by the editors of Money magazine on CNNMoney.com.

Punta Gorda's home prices dropped more than 50 percent from 2006 to 2009, and Fort Myers' real estate prices have lost about two-thirds of their peak value, according to the U.S. News report.

The report examined trends for price-to-income ratios in 384 markets to determine housing affordability; if a market has a ratio of 2.5, for example, the median-priced homes sell for 2.5 times the average household income.

Punta Gorda's ratio was 1.4 at the end of 2009, down from 1.7 for the 15 years ending in 2003.

Gray said foreclosures and short sales in the Charlotte County area are down, and the inventory of available houses has been whittled to eight months' worth, compared to 47 months in October 2007. As a result, home prices are starting to climb slightly. In turn, that could spur housing starts and sales of existing homes, he said.

Article from Herald Tribune.com from 6/3/2010

Posted by Mike Federau on June 4th, 2010 5:15 PMPost a Comment (0)

Fannie sweetens offer to avoid foreclosure

April 27th, 2010 12:05 PM

WASHINGTON – April 26, 2010 – Struggling borrowers who give up their homes through a "deed in lieu of foreclosure" or a short sale will be able to obtain a new Fannie Mae loan in two years. Currently, these owners must wait at least four years.

The new policy, which takes effect in July, is designed to make foreclosure alternatives more attractive. The policy applies only to Fannie Mae's willingness to approve a mortgage, however. Homeowners' credit scores will still take a hit following a short sale or deed in lieu of foreclosure.

To qualify for a mortgage after the two year wait, Fannie Mae says borrowers must make a 20 percent downpayment; but those who lost a job or have other extenuating circumstances will be able to make a 10 percent downpayment.

Freddie Mac – which, with Fannie Mae, insures over half the mortgages in the U.S. – currently makes homeowners wait four years after a short sale or deed in lieu of foreclosure before it will back a new mortgage. Owners who go through a foreclosure wait five years. For both Fannie Mae and Freddie Mac, the waits can be shorter in some cases if borrowers show extenuating circumstances.

Source: Wall Street Journal (04/26/10) P. A2; Timiraos, Nick

Posted by Mike Federau on April 27th, 2010 12:05 PMPost a Comment (0)

Foreclosures hint at a subtle shift

April 15th, 2010 8:29 AM

Though the number of foreclosure filings in Southwest Florida jumped in March, a closer look at the data shows that the region might be finally digesting the problem -- and at a quicker pace.

All told, the three-county region stretching from Manatee County to Charlotte County, registered 3,376 foreclosure filings last month -- a 15 percent increase from February and a 57 percent increase from March 2009.

But the number of filings representing the start of the foreclosure process was down 10 percent to 1,538 from a year ago. At the same time, the number of filings that represent a bank seizing a property from a defaulting borrower was up nearly 300 percent from March 2009 to 622, according to data from California-based RealtyTrac Inc.

That could be a signal that foreclosures have been working their way through the system in much the same way that a rat is digested by a snake. By that analogy, the rodent bulge during March was a lot lower in the abdomen than it was last year.

The same trend appears to be occurring on the national level, albeit in a less exaggerated way.

Data provided by RealtyTrac show that foreclosures across the country rose sharply in March, but the foreclosures in the system were more tilted toward the final stage of the process than they had been in the past.

There were 257,944 REOs -- banking parlance for when a lender seizes a property -- during the first quarter, a 9 percent increase from the previous quarter and a 35 percent increase from the same period a year earlier.

"This subtle shift in the numbers pushed REOs to the highest quarterly total we've ever seen in our report and may be further evidence that lenders are starting to make a dent in the backlog of distressed inventory that has built up over the last year as foreclosure prevention programs and processing delays slowed the normal foreclosure timeline," said James J. Saccacio, RealtyTrac chief executive, in a statement.

Other observers of the region's market have noticed a similar trend in Southwest Florida.

"It looks like banks are aggressively moving forward with foreclosures," said George Huhn, an agent with Coldwell Banker in Venice. "They are realizing that demand for foreclosures is good. The bottom is in and people are stepping up to invest."

Huhn expects total foreclosures to increase in the months ahead, but he said demand for those properties will rise and soak up the excess inventory.

Perry Corneau, who runs his own Sarasota real estate firm, sees a similar scenario.

"Banks have driven down prices to the point where people can't ignore them any more," Corneau said. (Herald Tribune 4/15/2010.)

Mike Federau, Curtis Mellon, and Dan McKinney, with the "mlsDetectives" in Punta Gorda, Port Charlotte, and the North Port area have also seen a similar trend. Our clients are having to place 3-4 bids in order to obtain on property. Foreclosures typically get multiple offers and properties are seen to sell on average of 97-99% of the properties last list price.

Mike Federau advises that our clients are getting frustrated of having to go through the process. It is difficult to convince them that in most cases they have to bid over asking price in order to secure the property. We recently placed a bid on a $134,000 at $148,000 and still did not get the property. Even at that price, they are getting an excellent buy.

At this pricing level these properties do not last!

Posted by Mike Federau on April 15th, 2010 8:29 AMPost a Comment (0)

RE/MAX Anchor Realty - #1 in Charlotte County, #1 in Florida and #1 RE/MAX in the USA!

April 9th, 2010 4:34 PM

Ranked by Market share

2010 - 1st Quarter

Source Data: Punta Gorda, Port Charlotte, North Port Association of REALTORS

1

RE/MAX Anchor

$31,374,000

2

RE/MAX Harbor

$24,271,000

3

Coldwell Banker Residential

$14,727,000

4

Century 21 Almar

$14,260,000

5

Five Star Realty

$12,665,000

6

Coldwell Banker Morris

$12,663,000

7

Allison James

$11,411,000

8

Coldwell Banker Sunstar

$10,569,000

9

Realty Executives

$10,229,000

10

Century 21 Aztec

$ 8,774,000

(Denver, CO, March 9, 2010) – RE/MAX Anchor Realty was named Brokerage of the Year for the RE/MAX Florida Region and the U.S. Multi-office Brokerage of the Year for the entire RE/MAX Network which has a total of 3500+ offices in the US.

Posted by Mike Federau on April 9th, 2010 4:34 PMPost a Comment (0)

Punta Gorda is back and better than ever!

April 9th, 2010 2:30 PM

From "The Commercial Appeal", Memphis, TN - April 4, 2010

PUNTA GORDA, Fla. -- In August 2004, Hurricane Charley blew through Charlotte Harbor and the Gulf Islands, creating what locals now call a tale of two cities -- renewal and renaissance.

Hurricane Charley passed directly over the city of Punta Gorda in southwest Florida with winds of 145 miles per hour and recorded gusts of more than 170 miles per hour. Virtually 100 percent of the city's residences and businesses sustained massive damage. More than 200 businesses were lost.

In spite of the destruction created by the Category 4 hurricane, Punta Gorda and other surrounding communities united to care for each other and the environs that so reflected the character of the area's people.

That spirit, along with a host of new hotels, a new airport terminal, several "live, work, play" projects and new attractions, defines the renaissance of Charlotte Harbor and the Gulf Islands.

That same spirit helped draw the Southeastern Outdoor Press Association's annual conference to the city's Best Western Waterfront in 2009.

As a member of SEOPA's board of directors, I got a chance to see Punta Gorda up-close and personal. I can only imagine what it was like pre-Charley. From the moment my wife and I stepped into the Best Western Waterfront (bwpuntagorda.com), which like most of Punta Gorda's businesses took a direct hit from Charley, it was like everything was new. In fact, the hotel, which is located adjacent to the Peace River, suffered major damage.

It's with groups like SEOPA that the Charlotte Harbor Visitor & Convention Bureau is broadening its scope of visitor-drawing appeal. Memphis is less than a two-hour direct flight to Tampa, which is about 90 minutes north of Charlotte Harbor and the Gulf Islands, and is another area on the Punta Gorda Chamber of Commerce's visitor radar.

"And, we utilized our membership with the South Tourism Society to reach potential visitors living in the Southeast and are extremely happy two of the destination's signature events, Punta Gorda Wine & Jazz Festival and Florida International Air Show, were named STS Top 20 Events (for Winter 2010 and Spring 2010)," said Jennifer Huber, tourism public relations manager for the Charlotte Harbor Visitor & Convention Bureau.

There's certainly a new look to Punta Gorda, including a $19.7 million, 43,000-square-foot event and conference center; more than 600 hotel rooms added since 2008 and the city's crowning jewel, the Laishley Municipal Marina Park amenities expansion featuring a $5 million to $7 million investment.

On the second night of our four-day visit to Punta Gorda, we visited the Laishley Crab House Restaurant, which locals say is the largest eatery in Southwest Florida and features five kinds of crabs.

Within walking distance of the Best Western Waterfront is Punta Gorda's historic downtown featuring boutique shops, as well as restaurants and marinas.

And then, there's Fishermen's Village, a waterfront mall with five restaurants, shopping, marina and entertainment complex that is also the home of the Military Heritage Museum (fishville.com). On one floor of the village are one-bedroom condo-type rentals with a loft and kitchen area.

Pat Lissau, who owns the Pirates Ketch gift store in Fishermen's Village and is a 25-year resident of Punta Gorda, has seen the city not only survive Hurricane Charley but return to its roots as a vacation destination and home-away-from-home for hundreds of annual visitors.

"We were one of the lucky ones at Pirates Ketch as some of the shops were a total loss," said Lissau, whose brother, Dennis, is a former area resident who now lives in Memphis

There's no shortage of places to dine, including such notable, long-time favorites as the Celtic Ray Public House (145 East Marion Ave.); River City Grill (131 West Marion) and the Café Ruelle Coffee House & Wine Bar (117 W. Marion).

One stop you don't want to miss is the Blanchard House Museum of African-American History & Culture, which was built in 1925 for Joseph Blanchard and his mail-order bride, Minnie. The museum (406 Martin Luther King Blvd.) opened in 2004.

The list of what's new in Punta Gorda since August 2004 is long and continues to grow, including Laishley Park, which is the home of the city's first public marina and the site of the Spirit of Punta Gorda memorial statue, which was dedicated in 2007 to honor the community's resilience and spirit after the storm. The statue is made of steel and hurricane debris. It's of two palm trees, one standing straight and the other bent. "After Charley" is a phrase heard a lot in Punta Gorda.

Punta Gorda is a beehive of activity. On Thursday nights, the Guitar Army Jam Session gathers on the banks of the Peace River in Gilchrist Park (next to the Best Western) for an informal jam session beginning "around" 7 p.m. until whenever. Everyone is invited to attend whether they have an instrument (not limited to guitars -- in fact, some folks make music with spoons) to listen and enjoy.

There's more music on the second Tuesday of the month at Open Mic at Fishermen's Village, where for 2½ hours members of the Peace River Center for Writers and their guests entertain visitors with original poetry and song.

And here's a neat thing that catches a lot of attention -- The Punta Gorda Historical Mural Society is responsible for 23 murals painted on various downtown buildings. The society was formed in 1994 with the first mural painted in 1995. Prior to Hurricane Charley there were more than 90 murals at 20 different mural sites. Ten of those sites were destroyed and 23 murals have since been restored (puntagordamurals.com).

Punta Gorda is a pedestrian-friendly city. In February, a bike share program was implemented. Called the Yellow Bike Loaner Program, bicycles are available for rent from Laishley Park Municipal Marina and Fishermen's Village.

Things are going so well that Punta Gorda was named in September 2009 as one of the Top 10 places to retire healthy by U.S. News & World Report.

A haven for outdoor enthusiasts, Charlotte Harbor and the Gulf Islands, which includes a collection of nine coastal communities surrounding the state's second largest harbor, has been named to Sail magazine's 10 greatest places to sail in the U.S., ranked by Golf Digest as third best place to live and play golf in America and rated by Money magazine as one of the best places to live in the south.

For more information, contact the Charlotte Harbor Visitor's Bureau at (941) 743-1900, or (800) 652-6090, CharlotteHarborTravel.com.

** If you would like to find a spot in the sun of Charlotte County, Florida - Give the MLS Detectives a call at (888) 207-2029, or write us at - Info@mlsDetectives.com

Posted by Mike Federau on April 9th, 2010 2:30 PMPost a Comment (0)