Avery and Ayers Blog

Flood Insurance Not Available

Our fragile Sarasota real estate recovery has a new challenge. All property transactions requiring a flood insurance policy are in limbo. The current extension of the National Flood Insurance program expired Sunday, March 28, 2010. The US Senate did not extend it before breaking for Easter.

Senators are expected to revive the program the week of April 12. This oversight will affect those who need flood insurance to close on home purchases. Buyers will now need to get contract extensions from sellers, lenders and change moving plans.

For questions call Marie or Terri at: 941-358-1818

Links to more information:

Flood Insurance

Flood Insurance Extension

Current Market Conditons 5-1-10

The Sarasota, Bradenton real estate market is showing positive signs of improvement. Inventories are moving and prices are slowly stabilizing. According to Sarasota and Manatee Realtor Association statistics, first quarter sales of single family homes in 2010 were 2371 compared to 1944 in the first quarter of 2009. Average sales price in 2009 for the first quarter was $209,000 rising to $234,000 this year’s first quarter. The three barriers to reaching normalcy in this home market, like many, are unemployment, foreclosures, and mortgage rates. 

As the federal tax credit buyer incentive comes to an end, analyst are divided on the outlook for demand going forward. While the tax credit opportunity was a success and did induce sales, it was unlikely a huge part of the overall volume. This may be a positive sign suggesting our market may have real, not artificial legs moving forward.

The current mortgage rates are off there lows though still historically attractive. Many of the buyers we work with are shopping this market now as they feel the prices have bottomed and loan rates can only go higher. The Fed has hinted to rising loan rates. They have also reiterated they are in no hurry to do so. These conditions have created a window of opportunity.

The two interactive gorillas in the room are unemployment and foreclosures. Employment affects home demand, foreclosures affect home supply. Our fragile recovery is at the mercy of both. The unemployment rate in Manatee and Sarasota County is approximently13%, unfortunately the hardest hit unemployed sector in our area are the construction and related industries. Home builders and related industry are the back bone of our local economy. Companies have been astutely hesitant to this point to hire and ramp up new projects due to high home inventory levels. This trend reversal will be a slow process, as mentioned earlier, inventories are being reduced. A noticeable positive sign, home builders are now jockeying for position. I’ve spoken with folks at Neal Communities, D.R. Horton, Lennar, and Homes By Towne. They are well into the planning stage of future projects.

Construction and related employment is certainly the key to restoring a healthy real estate market. The economic “catch 22” here is foreclosures. RealtyTrac reports an increase of approximately 30% in local foreclosures from the first quarter of 2009 to first quarter of 2010. Home inventories must come down to allow builder entry, meaning more jobs. People with jobs generally keep their homes. Conversely, home inventories rise as the unemployed homeowner enters foreclosure.  The “wrench” in fire in this situation is the hidden inventory of bank owned homes held over and not liquidated. The banks have held off a vast number of foreclosures for the purpose of not flooding an already saturated market inventory. This action was intended to create a soft landing to the housing crash. So far we have a much extended outlook for high home inventories prolonging a recovery.

The one tool that has helped reduce inventory is the short sale. Far less credit and psychologically damaging than foreclosure, the short sale has enabled homeowners to exit a distressed property mostly unscathed with only miner credit penalties. The short sale has also helped the banks liquidate non performing assets at a far greater value compared to the typical cost of a foreclosure sale. New guidelines are now in place to add efficiency to the short sale process.

In the Sarasota, Bradenton area we are approaching the annual “schools out” home buying season. Buy in June, close in August. This market was virtually non existent the last three years. Other key participants missing in our market are the local “trade up buyer” and international buyers. As the real estate market takes baby steps toward a solid recovery we hope to see these real estate buying trends begin to reemerge.  

For more information contact Marie Avery     of Avery-Ayers & Associates at RE/MAX Alliance Group at 941-358-1818 or visit www.AveryAndAyers.com.

Sarasota Film Festival

The popular 12th Annual Sarasota Film Festival starts today, April 9 and runs through April 18. Films are shown at Regal Cinemas Hollywood 20, 1993 Main St. Sarasota. The Festival has evolved to a well organized, anticipated international event, a tribute to it's volunteer staff of organizers. For more information on films and other events visit:

Sarasta Film Festival

Prepare For Sarasota Tax Lien Auction

Now is the time to prepare for property tax lien investing. Tax lien auctions are used by County governments to replenish revenue short falls due to delinquency by property owners. Unpaid property tax became delinquent on April 1. Sarasota County awards auction winners on June 1, 2010.

A tax lien certificate as an investment is basically a loan to the property owner. In return, the investor receives interest on the money loaned, depending on the competitive bids as high as 18% APR! Bids are entered with the certificate going to the bidder willing to take the lowest interest rate. Sarasota County will advertise delinquent parcels and online bidding will begin in May prior to the June 1 dead line.

Link to relevant information:

Sarasota Tax Liens