Clearwater Beach Real Estate Archives

Homeowners Reap Remodeling Benefits

Homeowners Reap Remodeling Benefits Whether Selling or Staying, Say Realtors®

Homeowners preparing to sell often make improvements, both big and small, to their homes that can help yield positive results and garner top dollar from buyers. According to a new report from the National Association of Realtors®, remodeling projects can also bring major benefits to homeowners who choose to remain in their homes.

“Realtors® know that certain home upgrades and remodels can be beneficial to get more buyer eyes on a property, potentially bring in more offers or gain more equity from a home,” said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. “But remodeling projects are just as valuable to homeowners who simply want to get more joy out of their dwellings. Regardless of the situation, Realtors® know what remodeling projects bring the biggest bang for the buck and what projects are most likely to improve a homeowner’s impression of their current place.”

According to NAR’s 2015 Remodeling Impact Report, which uncovers the reasons homeowners choose a remodel and the increased happiness certain projects bring once completed, 64 percent have experienced increased enjoyment in their home after completing a remodeling project.

Additionally, 75 percent of respondents said they felt a major sense of accomplishment when thinking of their completed project. Fifty-four percent of respondents felt happy about the changes to their home, and 40 percent felt satisfied. As for their reasons to complete a remodeling project, 38 percent of homeowners said they wanted to upgrade worn-out surfaces, finishes and materials; 17 percent wanted to add features and improve livability; and 13 percent believed it was time for a change.

Realtors® named kitchen upgrades, complete kitchen renovations, bathroom renovations and new wood flooring as the interior projects that most appeal to potential buyers. Similarly, Realtors® also ranked projects based on expected value at resale (without accounting for project price); the projects that ranked the highest in this category were complete kitchen renovations, kitchen upgrades, bathroom renovations and the addition of a bathroom.

When looking at the interior projects that yield the biggest financial results upon resale, Realtors® ranked hardwood flooring refinishes (100 percent of project cost recovered upon resale), insulation upgrades (95 percent recovered), new wood flooring (91 percent recovered), and converting a basement to a living area (69 percent recovered) as projects to consider.

Exterior projects are also important for both sellers and homeowners looking to increase satisfaction with their current home. Realtors® said new roofing, new vinyl windows, new garage doors and new vinyl siding are most appealing to potential buyers and are highly valued upon resale (both considering project price and disregarding project price).

Upon resale, Realtors® said new roofing would recover 105 percent of its project cost, a new garage door would recover 87 percent, new vinyl siding would recover 83 percent, and new vinyl windows would bring back 80 percent of their cost.

As for exterior projects that bring the most happiness for those not necessarily intending to sell, homeowners said new fiber-cement siding, new fiberglass or steel front doors, new roofing, and new garage doors brought the most satisfaction.

The 2015 Remodeling Impact Report, the first of its kind from NAR that examines personal satisfaction from remodeling projects, surveyed Realtors®, consumers who have completed their own remodeling projects, and members of the National Association of the Remodeling Industry.

“Remodeling projects can greatly improve both the value of and satisfaction with one’s home, which are great things no matter the reason for a project,” said Judy Mozen, president of the National Association of the Remodeling Industry. “This report highlights the best projects to consider in either situation and showcases just how much of a difference a good and professional remodel can make in real numbers.”

Salomone said the report not only assists homeowners who are preparing to sell in choosing the best projects to attract buyers, but it also helps those looking to get more personal satisfaction out of their homes.

“Realtors® know that remodeling projects aren’t just done to get more money for a home once it’s time to sell – a home is your sanctuary, the place you raise your family and where you make lifelong memories, which is why the report can also help consumers decide which projects could enhance their current quality of life and happiness,” he said.

The National Association of Realtors®, December 2015

Florida Housing Market Report – October

Florida Housing Market Report

Florida’s housing market reported higher median prices, fewer days on market and a constrained inventory of homes for sale in October, according to the latest housing data released by Florida Realtors®. Statewide closed sales of existing single-family homes rose last month with a total of 22,147, an increase of 1.2 percent over October 2014.

“October marked the 47^th consecutive month that statewide median sales prices increased year-over-year for both single-family homes and townhouse-condo properties,” said 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. “Sellers received a higher percentage of their original list price, with single-family homes getting on average 94.3 percent and townhome-condos getting 93.3 percent. It also took less time for homes to sell in October: a median of 46 days for single-family homes and 50 days for townhouse-condos.

“The state’s housing market continues to benefit from more people moving to Florida, the increased job growth and stronger economy.”

The statewide median sales price for single-family existing homes last month was $198,995, up 12.4 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations.
The statewide median price for townhouse-condo properties in August was $150,000, up 7.2 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors®(NAR), the national median sales price for existing single-family homes in September 2015 was $223,500, up 6.6 percent from the previous year. The national median existing condo price was $209,200. In California, the statewide median sales price for single-family existing homes in September was $482,150; in Massachusetts, it was $340,500; in Maryland, it was $260,126; and in New York, it was $240,000.

Looking at Florida’s townhouse-condo market, statewide closed sales last month totaled 9,294, down 0.9 percent compared to October 2014. The closed sales data reflected fewer short sales in October: Short sales for townhouse-condo properties declined 47.7 percent while short sales for single-family homes dropped 33.1 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.

“The Florida real estate market is catching its breath after a frantic summer and early fall,” said Florida Realtors Chief Economist Dr. John Tuccillo. “One month’s numbers do not make a trend, but the October numbers are signaling a return toward a more balanced market.”

Inventory remains constrained, with a 4.4-months’ supply in October for single-family homes and a 5.3-months’ supply for townhouse-condo properties, according to Florida Realtors. Most analysts consider a 6-month supply of inventory as the benchmark for a balanced market between buyers and sellers.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.80 percent in October 2015, down from the 4.04 percent average recorded during the same month a year ago.

Florida Realtors® November 2015

Florida Record-Breaking Tourism

The Sunshine State welcomed an estimated 79.1 million visitors during the first nine months of 2015, the most of any such period in Florida’s history.

The nine-month count was a 5.5 percent increase when compared with the same period in 2014.

Gov. Rick Scott has set a goal of drawing more than 100 million tourists to Florida this year, and that now seems within fairly easy reach.

VISIT FLORIDA estimates that 22.1 million domestic visitors traveled to Florida in the third quarter of 2015, reflecting an 8.2 percent increase over the same period last year.

Estimates also show that 3.4 million international visitors came to Florida in quarter three of 2015. Preliminary figures for the first three quarters of 2015 show 67.4 million domestic visitors, 8.3 million overseas visitors and 3.4 million Canadians have come to the Sunshine State.

Will Seccombe, President and CEO of VISIT FLORIDA, said, “With three record quarters and a fifth consecutive record year on the horizon, it’s clear that this continued growth does not happen by accident. It’s the direct result of a global marketing strategy focused on maximizing the economic impact of Florida tourism.

“Today’s announcement shows tourism marketing works and we have Governor Scott and the Florida Legislature to thank for their unparalleled support that will enable us to reach our goal of generating $100 billion in visitor spending by 2020.”

Tourism and recreation taxable sales for Florida increased year-over-year for January through August 2015 (last reported month), representing an 8.2 percent increase over the same period in 2014.

For quarter three of 2015, the average daily room rate (ADR) rose 5.1 percent, the occupancy rate for Florida hotels increased 3.6 percent and the demand in rooms sold grew 4.8 percent compared to quarter three of 2014.

John Tomlin, Chair of the VISIT FLORIDA Board of Directors, said, “The continued growth of tourism for the third quarter, including a record number of tourism-related jobs, puts Florida on pace for a fifth consecutive record breaking year.

“These records also emphasize the power of tourism as an economic leader and job creator for the state. Outcomes like these are the direct result of the vision and support of the Governor, Legislature and our amazing tourism industry, as well as world-class strategies and execution by the VISIT FLORIDA staff.”

Bill Talbert, Vice Chair of the VISIT FLORIDA Board of Directors and President & CEO of the Greater Miami Convention & Visitors Bureau said, “Florida’s tourism continues to make history with another record-shattering quarter. New and established hotels, attractions, restaurants and hospitality-related businesses are fueling strong industry job growth and increased tax revenues.

Those who enthusiastically welcome and serve our visitors continue to deliver great experiences, contributing to our state’s growing popularity. We are fortunate to have a Governor and Legislature that support our industry and VISIT FLORIDA so that we can share the diverse treasures of our state with the world.”

Florida is fortunate to have the strong support of Governor Scott and the Legislature, as well as funding matched by dollars from great industry partners. This support allows VISIT FLORIDA to reach even more markets and potential visitors with compelling reasons to visit Florida and create memories that last a lifetime.”

Sun Sentinal/Sarasota Herald Tribune November 2015

Pinellas County Real Estate Holds Strong for 2015

Pinellas County Real Estate Statistics for September 2015

Pinellas County real estate holds strong for 2015, even as the typically slower months approach.

Average sale price for a single family home was $256,543 in September 2015, up 15.1% from last September.
The average sale price for townhome/condo was $189,862, up 1% from $187,954 a year ago.
The number of closed sales for single family and townhome/condo combined for September 2015 was 1,863, up 13.8% from 1,637 in September 2014, and down just slightly from August 2015 (1,888).

Median sale price for single family was $190,000, a huge 15.2% increase over $165,000 last September. For the townhome/condo segment, median sales price was $120,000, up 9.1% over a year ago. Median days on market was also a bright spot, at 49 for single family (versus 50 last September), and 57 for townhome/condo (versus 63 last September).

Inventory remains low for single family, with a 3.4 month supply as compared to a 4.6 supply in September 2014. Active listings for single family and townhome/condo combined were 6,591, down 8.8% from 7,224 in September 2014. New listings are up 3.1%, at 2,204 versus 2,138 last September.

The Consumer Financial Protection Bureau’s (CFPB) new loan estimate and closing disclosure rules took effect October 3, with little fanfare. Experts are anticipating any issues that may arise presenting themselves in November, December and January.

Representing more than 6,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations.

Pinellas Realtor Organization – November 2015

Breathtaking Harbor Views – 400 Island Way

Take A Tour —

Starboard Tower
400 Island Way, #1511
Clearwater Beach, Florida

Stunning Views. Magnificent Location.

Breathtaking water views from the private balcony and from every room in this magnificent 15th floor 2 Bedroom, 2 Bath condo on Island Estates overlooking Clearwater and the ICW. Beautiful Kitchen offers Kitchen-Aid Stainless Steel Appliances- Built-in and Hardwood floors, custom Mahogany cabinets & custom lighting. Both baths offer custom granite and marble flooring and granite countertops. Don’t miss this well-appointed home. Amenities include a tropical heated pool, an over sized spa, Tiki huts, Grills, fitness room, billiard room, Locker rooms with shower & saunas. On-site daytime management & night security guard. Great location with shops, restaurants and easy access to Clearwater beach and the Gulf of Mexico…Sold “As Is” with right to inspect.

Florida Home to 1 in 4 U.S. International Sales

Profile International Home Buyers 2015

ORLANDO, Fla. – Oct. 9, 2015 – The National Association of Realtors^® (NAR)’ research division just released the Profile of International Home Buyers in Florida 2015 Report, which it creates in cooperation with Florida Realtors.

According to the latest report, international sales are not the exception in Florida, they’re simply a normal part of doing business: A majority of Florida Realtors members (69 percent) say they have international clients. Overall, one in four U.S. international sales take place in The Sunshine State.

For the survey, NAR looked only at clients who are “citizens of another country,” which includes:

Non-resident foreigners with permanent residences outside the U.S. who typically purchase property as an investment or vacations
Resident foreigners who immigrated within the last two years or who hold temporary visas that last longer than six months

Report overview

About 25 percent of foreign home buyers purchasing U.S. property buy in Florida
International unit sales totaled 44,000 properties
As a percentage, international sales made up 12 percent of Florida’s residential market (15 percent a year ago) compared to four percent nationally
The dollar volume of international sales: $23.7 billion
By dollar volume, international sales made up 24 percent of Florida sales (19 percent a year ago), compared to 8 percent nationally
69 percent of Florida’s Realtors have international clients (52 percent a year ago). The U.S. average: 35 percent
31 percent of Florida’s Realtors have more than five international clients (19 percent a year ago). The U.S. average: 15 percent
The latest report saw a significant spike in buyers from Latin America – 56 percent compared to 23 percent one year earlier
Approximately 50 percent of foreign buyers purchased in Miami-Miami Beach (36 percent) and Fort Lauderdale (14 percent)
The average price of property purchased by foreigners: $538,600 ($300,600 in 2014).
63 percent of Realtors said that clients found Florida properties less expensive than comparable ones in their home country (76 percent a year ago)
29 percent of Florida’s Realtors reported an increase in the percentage of their international business (45 percent a year ago). The U.S. average: 13 percent

The complete Profile of International Home Buyers in Florida 2015 Report can be downloaded at Florida Realtors’ website

The survey of Florida Realtors members took place July 7-Aug. 9, 2015; 1,203 Realtors provided information on their client interaction during the 12 months ended June 2015, and on the characteristics of their most recent sale during this period.

Florida Realtors 10/2015

Home Equity: You May Have More Than You Think

CoreLogic recently released their 2015 2nd Quarter Equity Report which revealed that 759,000 properties had regained equity in the last quarter. That means that 91% of all mortgaged properties (approximately 45.9 million) are now in a positive equity position. Anand Nallathambi, president and CEO of CoreLogic, reported:

“For much of the country, the negative equity epidemic is lifting. The biggest reason for this improvement has been the relentless rise in home prices over the past three years which reflects increasing money flows into housing and a lack of housing stock in many markets.”

Obviously, this is great news for the financial situation of many homeowners.

But, do they realize their equity position has changed?

A recent study by Fannie Mae suggests that many homeowners are unaware that their equity position has changed…in some cases dramatically. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, only 9% of homes are in that position.

The study also revealed that, though 69% of homes had “significant equity” (greater than 20%), only 37% of Americans realize it.

This means that 32% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

Every homeowner should be aware of the true equity in their house and also realize the opportunities that go along with it. If you are unsure of the savings you currently have built up in your home, contact a real estate professional to help ascertain that number. You may be surprised.

Keeping Current Matters 10/2015

Tax Planning for Owning a Second Home

Benefits of Owning a Second Home

Learn how mortgage interest, property taxes, rental property and tax-free profit affect your tax return.

If you are considering owning a second home, congratulations! Not only can you look forward to having a place to relax, you also can garner some tax benefits for that place at the beach.

You can use several tax breaks:

Mortgage Interest

If you use the place as a second home — rather than renting it out as a business property — interest on the mortgage is tax deductible just as interest on the mortgage on your first home is. You can write off 100% of the interest you pay on up to $1.1 million of debt secured by your first and second homes that was used to acquire or improve the properties. (That’s a total of $1.1 million of debt, not $1.1 million on each home.) The rules that apply if you rent the place out are discussed later.

Property taxes. You can deduct property taxes on your second home, too. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.

If You Rent the Home

Lots of second-home buyers rent their property part of the year to get others to help pay the bills. Very different tax rules apply depending on the breakdown between personal and rental use. If you rent the place out for 14 or fewer days during the year, you can pocket the cash tax-free. Even if you’re charging $10,000 a week, the IRS doesn’t want to hear about it. The house is considered a personal residence, so you deduct mortgage interest and property taxes just as you do for your principal home.

Rent for more than 14 days, though, and you must report all rental income. You also get to deduct rental expenses, and that gets complicated because you need to allocate costs between the time the property is used for personal purposes and the time it is rented.

If you and your family use a beach house for 30 days during the year and it’s rented for 120 days, 80% (120 divided by 150) of your mortgage interest and property taxes, insurance premiums, utilities and other costs would be rental expenses. The entire amount you pay a property manager would be deductible, too. And you could claim depreciation deductions based on 80% of the value of the house. If a house is worth $200,000 (not counting the value of the land) and you’re depreciating 80%, a full year’s depreciation deduction would be $5,800. You can always deduct expenses up to the level of rental income you report.

But what if costs exceed what you take in? Whether a loss can shelter other income depends on two things: how much you use the property yourself and how high your income is.

If you use the place more than 14 days, or more than 10% of the number of days it is rented — whichever is more — it is considered a personal residence and the loss can’t be deducted. (But because it is a personal residence, the interest that doesn’t count as a rental expense — 20% in our example — can be deducted as a personal expense.)

If you limit personal use to 14 days or 10%, the vacation home is considered a business and up to $25,000 in losses might be deductible each year. That’s why lots of vacation homeowners hold down leisure use and spend lots of time “maintaining” the property. Fix-up days don’t count as personal use. The tax savings from the loss (up to $7,000 a year if you’re in the 28% tax bracket) help pay for the vacation home. Unfortunately, holding down personal use means forfeiting the write-off for the portion of mortgage interest that fails to qualify as either a rental or personal-residence expense.

We say such losses might be deductible because real estate losses are considered “passive losses” by the tax law. And, passive losses are generally not deductible. But, there’s an exception that might protect you. If your adjusted gross income (AGI) is less than $100,000, up to $25,000 of such losses can be deducted each year to offset income such as your salary. (AGI is basically income before subtracting your exemptions and deductions.) As income rises between $100,000 and $150,000, however, that $25,000 allowance disappears. Passive losses you can’t deduct can be stored up and used to offset taxable profit when you ultimately sell the vacation house.

Tax-Free Profit

Although the rule that allows home owners to take up to $500,000 of profit tax-free applies only to your principal residence, there is a way to extend the break to your second home: make it your principal residence before you sell. That’s not as wacky as it might sound. Nor is it as lucrative as it used to be.

Some retirees, for example, are selling the big family home and moving full time into what had been their vacation home. Before 2009, this had a very special tax appeal. Once you live in that home for two years, up to $500,000 of profit could be tax free — including appreciation in value during the years it was your second home. (Any profit attributable to depreciation while you rented the place, though, would be taxable. Depreciation reduces your tax basis in the property and therefore increases profit dollar for dollar.)

A few years ago, though, Congress cracked down on this break for taxpayers who covert a second home to a principal residence. A portion of the gain on a subsequent sale of the home is ineligible for the home-sale exclusion of up to $500,000, even if the seller meets the two-year ownership and use tests. The portion of the profit that’s subject to tax is based on the ratio of the time after 2008 when the house was a second home or a rental unit to the total time you owned it.

This can still be a great deal if you’ve owned your second home for many years before the law changed. Let’s say you have owned a vacation home for 18 years and make it your main residence in 2014. Two years later, you sell the place. Since the five years after 2008 the place was your second home (2009 through 2013) is 25% of the 20 years you owned the home, only 20% of the gain is taxed. The rest qualifies for the exclusion of up to $500,000.

Information obtained from Kiplinger.com

This information is for general guidance. The application and impact of laws can vary widely based on the specific facts involved. Accordingly, the information on this Site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers.

Southwest Florida Buyers Paying Cash

Home buyers in Southwest Florida are still paying with cash at one of the fastest rates in the nation.

Of the 10 metro areas with the highest share of cash purchases in the first quarter, more than half were in Florida, according to real estate analyst Zillow.

Southwest Florida Buyers Paying Cash
“In Florida, cash is king,” Zillow said. ” At the end of the first quarter, seven of the top 10 metros with the highest share of home purchases made in cash were in Florida, up from six at the end of 2014.”

All 10 of the U.S. metro areas with the highest share of cash buyers were east of the Mississippi River, while cash buyers were less common in the western U.S.

“Homes in many eastern markets are generally less expensive than in their western counterparts, which can be conducive to more cash purchases,” Zillow said. “Cash purchases are also more likely to be made by investors and institutional buyers looking to buy many less-expensive homes all at once to convert into rental housing and/or flip as the market improves.”

In addition, the analyst noted, Florida’s judicial foreclosure process can be slow, extending the period when investors are buying discounted homes from lenders as they clear foreclosure.

Florida posted the second-highest share of cash sales in June, at 45.8 percent, behind only New York’s 47 percent, CoreLogic said.

The U.S. rate was 31.3 percent, down from 34 percent over the year.

“The cash sales share peaked in January 2011, when cash transactions made up 46.5 percent of total home sales nationally,” CoreLogic said. “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in June 2015, the share should hit 25 percent by mid-2017.”

Jim Quinn, president of the Port Charlotte-North Port-Punta Gorda Association of Realtors, said cash sales have “consistently” accounted for less than 50 percent of activity this year, with distressed properties representing a smaller segment of sales.

“I would say both of these trends are indicative that more of the buyers are purchasing for personal use as opposed to investment,” he said.

No-financing sales accounted for 43 percent of home deals throughout Florida in August, while the U.S. average was 24.5 percent.

Herald Tribune 10/5/2015

Pinellas County Real Estate Statistics for August 2015

After several months of record sales and a blistering seller’s market, statistics in many areas have cooled significantly.

Average sale price for a single family home was $234,647 in August 2015, down 2.8% from last August.
The average sale price for townhome/condo was $187,683, down 1% from $189,528 a year ago.
The number of cash sales is the lowest since January, at 833 for single family and townhome/condo combined. Median sales price for single family was $181,399, a 6.7% increase over last August.
For the townhome/condo segment, median sales price was $135,500, up 13% over a year ago.
Median days on market was also a bright spot, at 47 for single family (down 13% from last August), and 65 for townhome/condo (down 11% from last August).
Inventory is even lower than last month, dropping from 3.9 months to 3.6 months supply.

August 2015 active listings for single family and town home/condo combined were 6,742, the lowest since January 2013, when the count was 6,169. New listings are the lowest they have been since December 2014, at 2,239 versus 1,887 last December.

The lack of inventory continues to be a huge part of the Pinellas County real estate story. The total sold units for single family and townhome/condo combined in August 2015 was 1,888, down significantly from the 2,123 sold in July 2015. In fact, this is the lowest number of sold units since February.

Year-over-year closed sale stats for single family and townhome/condo combined were 12.4% higher this August than a year ago, but almost 50% lower when compared with the 24.2% increase for July 2015 over July 2014.

With the Consumer Financial Protection Bureau’s (CFPB) new loan estimate and closing disclosure rules taking effect October 3, we will be watching closely to see how it impacts the market, particularly the number of closed sales.