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Perspective on recent shifts in local real estate market

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On August 23, 2022

In Home Buying, Home Selling, Sarasota

by Peter Crowley, President of RE/MAX Alliance Group

Peter Crowley, President RE/MAX Alliance Group
Peter Crowley, President RE/MAX Alliance Group

If you only paid attention to news headlines, you would be convinced that the real estate market is in a free fall. Citing sensational statistics like “Pending home sales crash 30%” or “Record number of price reductions” may lead one to think that home prices are falling and the pendulum has shifted into the hands of buyers. Not so fast …

It’s important to put these statistics into some perspective to understand what is really happening in our local real estate market throughout Southwest Florida (and most of the United States).

The onset of the pandemic ushered in an unanticipated boom for the real estate market throughout the country and magnified even more throughout Southwest Florida. Once the initial shock of lockdowns and a brief economic scare subsided, the stage was set for booming demand in our local market. An almost overnight shift in demographic trends with work from home options and accelerated retirement decisions created a surge in demand for Southwest Florida real estate.

Furthermore, in an effort to boost the economy, the Federal Reserve’s monetary policy contributed to record low interest rates which added buying power to this influx of buyers. The ensuing imbalance of supply and demand for homes and condominiums led to a strong seller’s market with larger than normal increases in the median price of real estate.

Fast forward to today and the real estate market has undoubtedly changed – spurred mostly by the increase in interest rates related to the inflationary environment that we are experiencing still today. This is where some perspective is important.

The most frequent measure of real estate activity is either month to month comparisons or year over year comparisons. If you accept that 2021 was the best real estate market that our local area (and most of the country) has ever experienced, it stands to reason that as the market starts to adjust back to normal, we will see some sizable percentage changes when comparing today’s activity to last year. These significant changes create eye-catching headlines – “Time on market is up 120%”. That seems like a meaningful jump, but when you consider that homes were on the market for an average of 10-14 days and now it is closer to 30-40 days, the change does not seem that outrageous. In fact, this time on market is still far below what is considered normal.

Most real estate professionals will agree that the last “normal” real estate market was in 2019, before the onset of the pandemic. If we start to frame comparisons based on the level of activity in 2019, things seem a bit less dramatic, and in fact, show that even with our recent market shift, we are still well ahead of 2019 activity.

With the abrupt change in interest rates from below 3% to around 5%, it felt as though the spigot was turning off. The frantic pace of activity with 20+ offers on an available property seemed to evaporate overnight. While closed sales have fallen in the neighborhood of 20% relative to 2021 (the most active real estate market on record), when compared to 2019, we are in fact almost 20% ahead of the level of “normal” activity from that time period.

Furthermore, in spite of the recent cooling of demand, we are still quite out of balance with supply and demand, which is why prices are not expected to go down, but rather moderate from 20-30% record appreciation, to a moderated level of appreciation. Gone are the days that a seller can name whatever price they want to sell with only the most favorable terms. Hence, price reductions are at record levels where sellers are coming back to the reality that a home must be competitively priced in order to sell.

While the absorption of listings has definitely slowed, which leads to an overall increase in listings, our local market is still experiencing a limited supply of listings. Our current level of listings is over 50% less than the number of listings in 2019. While we anticipate listings to continue to increase, there is a long way to go to reach a “balanced” market.

The level of activity and price appreciation the past few years was an anomaly created by a perfect storm of economic and demographic conditions. A return back to “normal” is healthy for our overall real estate market. Pundits seem to be clamoring for a crash like we experienced during the housing crisis of the Great Recession. Fortunately, the foundation of our local housing market is on much stronger footing with close to 50% of sales being paid in cash. The remaining financed buyers are doing so with stringent underwriting guidelines and significantly more down payments (“skin in the game”).

The country is experiencing a record level of equity in their homes and as a result, the anticipated flood of foreclosures has not materialized. With builders still struggling with supply chain challenges and increased prices, they are reluctant to grow their inventory of new homes. All of these factors will continue to limit the supply of available homes for sale and continue the imbalance between supply and demand for the near term.

Presented by
Larry Brzostek, CRS, CLHMS
Broker Associate
RE/MAX Alliance Group
Call or Text: 941-993-3125
Web: LarrySellsSarasota.com

10 Red Flags to look for when buying a home

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On April 19, 2022

In Home Buying

10 Red Flags to look for when buying a home
10 Red Flags to look for when buying a home

10 Red Flags to look for when buying a home

Too Much Scent – Could be masking offensive odors.

Wonky Windows – Can signal issue with foundation or poorly installed. Pricy to fix /repair.

Poor Tiling – Bad DIY tiling can cost a lot to re-do.

Mold – Inspect bathroom and sinks for small black or gray spots.

Foundation issues – Tip Offs: Large gaps, sticking doors or windows, cracks, uneven floors.

Water Damage – Musty odor is an indicator. Check walls & ceilings for waterlines.

Poor Maintenance – Can indicate seller ignored other ongoing issues.

Cosmetic Updates – Could have been added to hide deal breakers.

Nearby water – Higher chance of flooding.

Bad Ventilation – Allows moisture to stick around, creating mold.

Source: Realtor.com – Courtesy of Residential Real Estate Council

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Sarasota Real Estate Update | February 2021

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On February 17, 2022

In Real Estate Statistics

Sarasota County Real Estate Market Update
January 2021

Sarasota Real Estate Stats January 2021

Sarasota County Real Estate Market Update
January 2021

Homes SOLD 651
Median Sale Price $465,000
Average Days on Market – 20
Available Inventory .5 months

Decorative
Sarasota Real Estate Market Update

The number of active listings was down 57% from one year earlier and down 22% from the previous month.

This smaller inventory means that buyers that waited to buy may have had a smaller selection of homes to choose from.

The median listing price for the month was just under $600,000.

Compared to last year the average number of days units spent on the market before being sold was down 58%.

This lower number of days may signal a positive trend in the local inventory turnover rate.

The median sale price was just over $465,000.

The number of units sold decreased 2% year over year and decreased 23% month over month.

Fewer sales could indicate an opportunity for buyers to negotiate better terms.

Thanks for watching. I hope you found this video helpful as you gather more information to make smart informed real estate decisions if you’d like more information or assistance please Call or Text me @ 941-993-3125

Larry Brzostek Broker/Associate
Information courtesy of RE/MAX Alliance Group – Sarasota, FL

What’s in store this year (2022) in residential real estate?

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On January 18, 2022

In Real Estate

by Peter Crowley, President of RE/MAX Alliance Group

Peter Crowley, President RE/MAX Alliance Group
Peter Crowley, President RE/MAX Alliance Group

With the new year upon us, the question I often get is “Will this hot real estate market continue in 2022?” As I have mentioned in earlier articles, I am no longer confident in predicting much past the end of the month with the constant state of flux our world seems to be in these days. Everyone seems eager to call an end to the wild ride that our local (and in most parts, national) real estate market has experienced. As you will see below, I think most of the same economic factors driving our real estate market will continue for the foreseeable future.

The main driver of our residential real estate market has been a combination of surging demand from buyers and a dwindling supply of available homes for sale. This simple supply and demand imbalance has led to double digit price increases throughout our local market and in fact, most of the nation. In order for a significant change in the real estate market, there needs to be a substantial change in either the demand for homes or significant increase in the supply of available homes for sale.

On the supply side of the equation, there seems to be little hope for any meaningful increase in the number of available homes for sale. Whether it is the resale market or the new homes market, it doesn’t appear that anything will move the needle for an improved supply of homes. The same labor constraints and supply chain disruptions that have contributed to the challenge for builders to deliver on time and on budget seem to remain a factor for the foreseeable future. There was some indication that the removal of the COVID-related foreclosure moratorium would lead to a surge of resale homes. While the number of foreclosures has certainly increased, it is nowhere close to the level that would be needed to balance supply with demand.

Turning to the demand side of the equation, the crystal ball gets a bit murkier. With double digit price increases coupled with unprecedented inflation in almost every aspect of the economy, eroding affordability has to have an impact on the demand for homes to some degree. In a “normal” market this would absolutely be the case, but our local market seems to defy these odds driven by an insatiable demand for our beautiful area coupled with scores of buyers fleeing more restrictive COVID-related states for the more relaxed Florida communities.

Another important factor that typically would dampen buyer demand is a rise in interest rates. With the recent announcement from the Federal Reserve committing to multiple increases of the federal funds rate, the common corollary to this will be an inevitable increase in interest rates on all loans, including home loans. An increase in the interest rate coupled with price increases will price many buyers out of the market. So there it is … the answer we needed to balance the housing market! Not so fast … our local real estate market comprises almost 50% cash buyers – much higher than most markets around the country. This large amount of cash buyers will soften any impact of a rising interest rate environment – at least in the near term. There is some speculation that a rising interest rate environment (or even the threat of one) will spur reluctant sellers to finally put their home on the market to avoid further erosion in their purchasing power for their replacement home. So far, this has not materialized and we are still dealing with a dearth of available homes on the market.

Our local housing market is a huge driver of overall economic activity throughout our area. While some of the headwinds (i.e. affordability and interest rates) may cool the market a bit (high single digit appreciation vs double digit appreciation), the fundamentals of the housing market remain strong and appear to be on solid footing for the months ahead. Larger macroeconomic policies (inflation, money supply, currency valuation) will undoubtedly play a part in the housing market in the years to come, but for now let’s savor the prospect of a healthy 2022!

Peter Crowley is the president of Re/Max Alliance Group.

We would like to thank our guest author Peter Crowley
Larry and Ann Brzostek

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Florida Homestead Exemption

By

On December 21, 2021

In Florida Homestead Exemption, Home Buying

Are you a permanent Florida Resident and homeowner?

If you are, have you filed for the Florida Homestead Exemption?

Decorative Image
Sold by Larry Brzostek

Hi, I’m Larry Brzostek with RE/MAX Alliance Group. I can walk you through what the Homestead Exemption is and why it matters to you.

What is the Florida Homestead Exemption?

As a permanent Florida Resident and homeowner, you are entitled to get a homestead exemption on your primary residence.
The exemption is a $50,000 reduction of the assessed value of your home which determines your property taxes.

What are the eligibility requirements for the Homestead Exemption?

To be eligible for the Homestead Exemption your home must be your primary residence as of January 1 in the year you are filing. If you rented the property in the previous year, you only could have done so for a maximum of 30 days.

When should I file an application for a homestead exemption?

Your application must be filed between January 1 and March 1. The March 1st deadline is in year you are filing.
You can file online in Sarasota County using the Sarasota Appraiser’s site
https://www.sc-pa.com and look under Exemptions. If the property you are homesteading is in another county, look under that county’s appraiser site.

What documentation do I need to file for the homestead exemption?

All documentation must show your permanent residence address.
You will need:
• Valid Florida Driver License or Valid Florida Identification card with the ID number and issue date.
• Florida Vehicle registration (if vehicle owner) with tag number and issue date.
• Voter registration (if registered voter) with ID number and issue date.

If you are not a citizen, you will need your Permanent Resident Alien Card with ID number and issue date.
(Also, you must submit a copy will be as part of the exemption application).

What other information is on the exemption application?

You will also have to provide the following:
• Date of birth
• Social Security Number (if you are married, you will also be required to provide your spouse’s SSN)
• Date you purchased the property
• Date you occupied the property
• Address of previous residence
• Address of other property or properties owned
• Telephone number
• Employment information (if applicable)
• Mailing address listed in last IRS tax return

Married couples filing for homestead exemption must complete the application during the same application session. If you are married AND your spouse is NOT filing for homestead exemption, you will be asked to provide the following information:

• Name of spouse
• Spouse’s Social Security Number
• Spouse’s Date of birth
• Spouse’s Florida Driver License or Florida Identification Card number (if applicable)
• Spouse’s primary residence address & residency-based exemptions/discount information

In addition to the homestead benefit the Save Our Homes (SOH) cap was established in 1995 according to Florida Statutes. The SOH cap is placed on the Assessed Value the year after the property receives a Homestead Exemption and is based on the lower of the following:

Three percent of the Assessed Value of the property for the prior year, or the percentage change in the Consumer Price Index (CPI) as reported by the U.S. Department of Labor, Bureau of Labor Statistics. This means your taxes will not increase by more than 3% in any given year.

In 2008 a constitutional amendment was passed adding portability of the exemption; allowing some or all of the exemption to be transferred to another home. Very beneficial to a homeowner who trades up to a larger home or one who downsizes to a smaller one.


Do you qualify for additional homestead exemptions in Sarasota?

To find out if you qualify for additional homestead exemptions,
Contact the Property Appraiser’s office in the county that your property is located.

Hopefully this information will help you. Happy homesteading!

For more information Call or Text me @941-993-3125
And Checkout my Website
LarrySellsSarasota.com

Stage Your Home to Sell

By

On November 25, 2021

In Information, Real Estate

Infograph
Stage Your Home to Sell

Stage Your Home to Sell

To earn top dollar and sell your home more quickly, you need to make it stand out from the competition. And one of the best ways to do that is through staging.

4 Reasons to stage
1. Your home will shine online. Buyers first found 92% of the homes they visited on the internet. Good staging can make your home stand out before buyers even visit.
2. It shows off the potential. 77% of agents say staging makes it easier for buyers to visualize a property as their future home.
3. It spurs walk-throughs. Clients are more willing to walk through a home that has been staged, according to 40% of agents.
4. Your home will sell faster. Nearly two-thirds of agents say staging decreases the amount of time a home spends on the market.

6 most important rooms to stage
1. Living Room
2. Master bedroom
3. Kitchen
4. Outdoor space
5. Dining room
6. Bathroom

“Staging is preparing a home for sale so the buyer can mentally move in.”
Barb Schwarz, California Realtor and chairwoman of the International Association of Home Staging Professionals.

Simple fixes agents recommend
Declutter – 93% (“Clutter eats equity.” says Barb Schwarz.)
Full home cleaning – 89%
Carpet cleaning – 81%
Remove pets before showings – 80%
Make minor repairs – 75%
Depersonalize the home – 72%
Paint walls – 68%

Cost of professional staging
Most stagers charge $300 to $600 for an initial consultation, then $500 to $600 per room per month.

Sources: NAR 2017 Profile of Home Staging, Househunt.com, realtor.com, Barb Schwarz

I hope this information keeps you informed and I thank Florida Realtors for allowing us to share this.

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Zillow is out of the home-buying business

By

On November 25, 2021

In Information, Real Estate

by Peter Crowley, President of RE/MAX Alliance Group

Peter Crowley
Peter Crowley, Broker/Owner RE/MAX Alliance Group

Last week Zillow sent a shock wave through the real estate industry when it announced that it was exiting the home-flipping market and terminating its Zillow Offers program. Just a few weeks earlier, Zillow claimed it was merely pausing its purchasing efforts in order to catch up with the backlog of properties it currently held in its pipeline. Ultimately, Zillow’s CEO, Richard Barton, realized the decision was more permanent when he stated, “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated, and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”

This had many real estate professionals claiming a win over the 1,000-pound gorilla that is Zillow. For years, the Zillow Zestimate has been the bane of the real estate agent’s existence as an often wildly inaccurate estimate of a home’s value. Zillow claimed to have refined its home-valuation algorithms to the point where it could accurately predict what price to buy and then subsequently flip the house at a profit. In reality, however, closer analysis of Zillow’s property portfolio demonstrated that it was overpaying for properties (a win for some sellers) but eventually listing and selling those properties at a loss. This may not seem like a big deal for a company the size of Zillow, but those losses will likely total in excess of $500 million when all of the write-offs are accounted for as the program winds down. Even with a balance sheet as large as Zillow’s, this is a big financial hit, and investors have taken note with a beating to the stock price in recent weeks.

I have been reluctant to high-five my fellow real estate agents over this news. First, as a result of terminating its Zillow Offers program, they announced a reduction of 25% of their workforce – that is more than 1,000 individuals who will be out of work and should not be overlooked. Second, and maybe less obvious, is that Zillow is still the behemoth that it was before this setback. It is still a company that relies heavily on the paid advertising platform that was the foundation of the company’s success. Who pays for that advertising? Many of the same real estate agents who were pounding their chests when Zillow swung and missed on the Zillow Offers program.

Rest assured, I am not a cheerleader for Zillow. Ever since the company stood on stage several years ago and insisted that it was only a marketing company and would never enter the real estate business, only to turn around and do exactly that a few years later, let’s just say I have a healthy dose of skepticism about the company’s intentions. But as long as Zillow maintains its grasp on the real estate consumer, it will continue to pivot toward profitability and growth – eventually.

What this setback does demonstrate, however, is that real estate is in fact very local. A real estate professional does more than place a sign in the yard. The local expertise of a real estate professional lends itself to better pricing decisions, a cadre of local connections to vendors integral to the home-buying and selling process and an overall understanding of the intangible nuances of the local real estate market. Algorithms and a seemingly endless supply of cash can fix some things, but some things are better left to the local experts.

Peter Crowley is the president of Re/Max Alliance Group.

We would like to thank our guest author Peter Crowley
Larry and Ann Brzostek

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Home Selling Process – Explained

By

On October 21, 2021

In Home Selling, Real Estate

The Home Selling Process – Explained

Right now, there are not enough houses for sale, with many buyers looking at a small inventory.
So, if you’re thinking about selling your home, now is the ideal time to put your house on the market. Many houses are selling above their asking price, which means more money in your pocket.

But how do you sell your home?

First you meet with a real estate professional.
There is no commitment required on your part for an initial meeting. It will be educational and help you identify your next steps.

I’m Larry Brzostek a Broker/Associate with Re/MAX Alliance Group and I will guide you through the process.

Establish a Price
As your agent I will provide a market analysis, which will help you set an asking price.

Tips on Strategic Pricing
It’s important to review the market analysis and consider your home price objectively.

Prepare Your Home
View your home through the eyes of the buyer and ask yourself what you’d expect. I will offer some useful suggestions.

List It For Sale
When everything is in place, I will put your home in the Multiple Listing System. It’s critical for potential buyers to view your home.

I will also create a virtual tour of your home along with a youtube video.
Social media is another important tool and your home will be posted regularly.

Getting your home the most exposure:

I use Adwerx a web company that places your home on Facebook as well as throughout the web on both desktop and mobile devices.

Open Houses are scheduled at your convenience (usually on weekends) but are not always necessary to sell you home.

Tips on Showings
I like to give my seller’s at least 24 hours notice for a showing

However, Potential buyers may ask to see your home on short notice.
It’s best if you can accommodate these requests. You never want to miss a potential sale.

Offers and Negotiation
If everything goes well, a buyer (and most often the agent who represents them) will present me, your agent, with an offer.

I will present the benefits and risks of each offer. You will have the opportunity to either accept or counter any offer based on its merits.

Under Contract
At this point, you and the buyer have agreed to all of the terms and conditions of the offer and both parties have signed the agreements.

Final Details
While under contract the buyer will work with their mortgage provider to finalize the loan and perform other due diligence.

Inspection Tips
The buyer will usually perform a physical inspection of the home. They may even ask you to make certain repairs. I will explain all your options regarding the inspection.

Closing
This is the transfer of funds and ownership. Depending on when the buyer moves into the home, you will need to be all packed up and ready to move.

CONGRATUALTIONS!
You’ve successfully sold your home.

Thinking of Selling?
I can help! Contact me and let’s talk!
Call or Text me @ 941.993.3125

Have a Great Day!
Larry

As always, for all your Real Estate needs, call or text Larry @ 941-993-3125
or
Go to Larry’s RE/MAX Site and search all you like LarrySellsSarasota.com

Sarasota Real Estate Market Update | October 2021

By

On October 15, 2021

In Real Estate Statistics

Information courtesy of RE/MAX Alliance Group – Sarasota, FL

Sarasota Real Estate Market Update
Sarasota Real Estate Market Update

Welcome to October’s Real Estate Market update.

Let’s take a look at residential real estate
activity in your area during the month of September.

The number of active listings was down 55% from one year earlier and down 9% from the previous month.

This smaller inventory means that buyers who waited to buy may have had a smaller selection to choose from.

As you can see the median listing price for the month was just over$510,000.

Compared to last year the average number of days units spent on the market before being sold was down 74%.

This lower number of days may signal
a positive trend in the local inventory turnover rate.

The median sale price was just over $400,000.

The number of units sold decreased 6% year over year and heald steady month over month.

Even though sales figures were down from a year ago, the recent local market conditions were basically unchanged.

Thanks for watching. I hope you found this video helpful as you gather more information to make smart informed real estate decisions.

If you’d like more information or assistance please Call or Text me @ 941-993-3125

Larry Brzostek, CRS, CLHMS Broker/Associate
RE/MAX Alliance Group

Search Sarasota Listings @ LarrySellsSarsota.com

2984 Jeff Myers Circle a Classic Luxury Estate Home

By

On October 13, 2021

In Luxury Home, Real Estate


Welcome to 2984 Jeff Myers Circle in the gated community of Laurel Oak Country Club

2984 Jeff Myers Cir Sarasota.mp4 from MoneyShotSRQ on Vimeo.

Take a 3D Tour

MLS# A4513780 Offered @ $2,000,000
View Listing Details

You walk into the dramatic 2-story entrance where the living room with a gas fireplace opens to the pool and lanai.

This 5060 SqFt classic luxury colonial home is truly special with 5 bedrooms (4 on them en-suite), 4 full baths, 2 half baths and 3 gas fireplaces.

The screened lanai and pool feature an outdoor kitchen, lagoon style pool and spa with a preserve view for privacy.

 There is a formal dining room with crown molding.

 The open floor plan includes a kitchen with granite counters and center cooking island with a breakfast area, a sun room.

Beyond is the family room with the second fireplace; also opening to the pool and Lanai.

The master bedroom is where you will find the third fireplace it features a sitting room, master bath with dual vanities, granite counters, garden tub and shower. Dual walk-in closets with built-ins

Laurel Oak Country Club 

Laurel Oak Country Club is 813 acres with only 402 homes

The country club has two 18-hole golf courses 12 tennis courts junior Olympic heated pool and a 45,000 square foot clubhouse

Membership is not mandatory for those who want to live in laurel oak and there are several levels of membership to choose from.

Have a Great Day!

As always, for all your Real Estate needs in the Sarasota Area
Call or Text Larry @ 941-993-3125

Go to Larry’s RE/MAX Site and search all you like, you can contact Larry directly from the website LarrySellsSarasota.com

Larry and Ann

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