Clearwater Beach Real Estate Archives

Pinellas – Clearwater Real Estate Report July 2015

July 2015 Statistics

While the number of closed home sales continues to rise, the market may not be a rosy as it appears. On one hand, sellers have it made, with “rising home prices, demand from home buyers, and less competition making 2015 a stellar year to sell for many U.S. home owners across the country,” According to Daren Blomquist, RealtyTrac’s vice president.(1)

However, “signs are emerging that housing’s momentum may be destined to falter in coming months. Analysts note that some of the key foundations needed to sustain a brisk pace of home buying in the long run appear to be missing. The main problem is the simplest: There just aren’t enough homes available. Robust demand has failed to draw many sellers into the market. And few in the industry foresee a flurry of home listings arriving soon.”(2)

In Pinellas County, all of this holds true.

Inventory was down 3.3% from July 2014, sitting at 6,953 combined for single family and townhome/condo. This represents a 3.7 month supply for single family and a 4.0 month supply for townhome/condo.
In June there were 7,211 combined active listings, or inventory. Absorption rates have been building steadily all year, but are starting to trend downward slightly, at 40.7% for single family and 30.6% for townhome/condo.
The total sold units for single family and townhome/condo combined in July 2015 was 2,123, down slightly from the 2,192 sold in June 2015.

Sales dipped a bit in May 2015, but for July have again surpassed the ten-year-high record set this April, at 2,103. Year-over-year stats for closed single family and townhome/condo combined sales are maintaining at a 24.2% increase for June 2015 over June 2014, as compared to the 26.2% increase year-over-year from June 2014 to June 2015.

Representing more than 6,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations. The organization advances and promotes the real estate profession through professional development programs, government affairs, and political advocacy and maintains a high standard of conduct by real estate professionals through professional standards training and administration.

(1) Source: Realtor Magazine, “3 Reasons Why It’s a Great Time for Sellers,” (July 24, 2015) via “2015 Great Year to Sell,” RealtyTrac (July 22, 2015)

(2) Source: “Can Housing’s Comeback Endure? The Outlook Dimmer,” The Associated Press, Josh Boak, AP economics writer (Washington), via Florida Realtors (July 27, 2015)

FLORIDA TOURISM HITS RECORD HIGH FOR 2015

Florida tourism is on pace to pass the highly anticipated 100-million visitor mark for 2015, with more than 54.1 million visitors coming to the Sunshine State in the first half of 2015.

New quarterly numbers released Wednesday from Visit Florida, the state’s tourism arm, show a 5.8 increase from last year and the highest amount of visitors of any six months in the state’s history.

In just the second quarter of 2015 ending June 30, 25.8 million visitors came to Florida, an increase of 5.5 percent from the same point in 2014.

With the fifth record-breaking year, the higher tourism is also bringing a record average number of direct travel-related jobs.

In a prepared statement from Gov. Rick Scott, Florida’s tourism industry now employs 1,213,500 people – a number up 4.9 percent from the previous year.

Encouraging tourism helps Florida become the “best place in the world for jobs,” Scott said. “We look forward to exceeding our goal of 100 million visitors to Florida this year.”

Visit Florida also estimates more than 2.7 million overseas visitors, 1.2 million Canadians, and 21.9 million domestic visitors traveled to Florida in the second quarter of 2015, a 6.8 percent increase.

Totals for the first half of 2015 show 45.7 million domestic visitors, 5.5 million overseas visitors and 2.9 million Canadians have come to the Sunshine State, an increase of 6.7 percent, 1.7 percent and 1.1 percent respectively. Top U.S. states for Florida tourism are New York (10 percent), Georgia (8 percent), Texas (6 percent) and Illinois (5 percent).

Most international visitors in 2014 came from Canada (4.2 million), followed by the United Kingdom (1.6 million) and Brazil (1.6 million).

Continued growth of tourism, as well as tourism-related jobs, is putting Florida on track for a fifth consecutive record-breaking year, said Visit Florida Board of Directors Chairman John Tomlin. He emphasized the power of tourism as an economic job creator, crediting the vision of Scott, the Legislature and his staff for “world-class strategies and execution.”

As the number of people visiting Florida increases, so does the amount collected in taxes on sales from recreation and related activities. From January through May 2015, the state enjoyed a 9.0 percent increase in tax revenue.

Visit Florida also estimates the average daily room rate (ADR) for the second quarter of 2015 rose 4.7 percent, with occupancy rates for Florida hotels increasing 2.9 percent and the demand for rooms sold grew 4.4 percent compared to the same period last year.

“This continued growth does not happen by accident,” said Visit Florida CEO Will Seccombe, who thanked Scott and the Legislature for their “unparalleled support.”

Tampa Tribune August 19, 2015

Building Boom Clearwater Beach

Building Boom
New hotels will soon transform the southern portion of Clearwater Beach.

All told, the four projects that are expected to be under construction will bring a mix of 1,000 new upscale and mid-scale rooms to the narrow barrier island that lies just northwest of St. Petersburg. Until recently, South Clearwater Beach was mainly dotted with old-style lodges from the 1950s and ’60s.

“It’s huge, because the demand is as high as it has ever been,” said Leroy Bridges, a spokesman for Visit St. Pete/Clearwater. “Adding these rooms and these options is going to help meet that demand.”

Crews are already working on three of the new projects. In January, developers broke ground on the 15-story Wyndham Grand® Resort. Upon completion (slated for 2017) the Wyndham’s 450 rooms will make it the largest hotel on the narrow barrier island.
Further along is Opal Sands, an upscale, 230-room hotel that is also scheduled to open next February. Among the offerings at the 15-story hotel will be a spa and balconies sitting directly over the beach.
Nearby, the 181-room Clearwater Beach Hampton Inn is underway. And those three projects are expected to soon be joined by a 125-room Holiday Inn.

Like many Florida markets, the St. Pete/Clearwater area has enjoyed a boom in visitation over the past several years. Some 3.2 million people spent at least a night in a Pinellas County lodge, campground or motor home park in 2014, according to data from the county’s convention and business bureau, up from just more than 2.5 million in 2010. (Pinellas includes Clearwater and St. Pete)

Robust visitation, though, isn’t the main cause of the Clearwater Beach development boom, said Ed Armstrong, a land-use attorney who has worked on the Opal Sands and Hampton Inn projects. An even bigger incentive has been temporary land-use rules instituted by the city of Clearwater to spur hotel development. In 2009, the town decreed that up to 1,200 midscale hotel units could be developed at triple the usual density per acre; projects such as the Hampton Inn and the Holiday Inn are taking advantage of that rule. Meanwhile, the Wyndham Grand® is taking advantage of a similar such incentive that Clearwater had early targeted toward higher-end hotels.

Upping density allowances changed the financial calculations involved in developing on Clearwater Beach’s expensive waterfront property.

“It drastically altered the economics on Clearwater Beach in a very positive way,” Armstrong said.

Opal Sands Resort

Direct Beachfront with 230 Waterfront Rooms/Suites with Balconies

A refreshing blend of casual beachfront luxury and the lively ambiance of Clearwater Beach, guests will enjoy an array of leisure options. From long walks on pristine white sand beaches and a swim in the Gulf, to pampering spa services and poolside cocktails, this location will offer everything you’ve dreamed of in a luxury resort.

Amenities:

All 230 guest rooms and suites are oceanfront, with private balconies offering spectacular views of the Gulf
Directly on the ocean and beach
Spectacular zero-entry outdoor pool and sun deck
Large fitness center
Full-service spa
Waterfront dining and beach bar
All valet and indoor parking
Retail Shops

Beachfront Wyndham Grand® Resort in Clearwater Beach

Construction of the 450-room Wyndham Grand® Resort Clearwater Beach has begun on South Gulfview Boulevard at the north end of the prominent Beach Walk. Proposed as one of the largest hotel resorts in the area, the hotel is scheduled to open in early 2017. With approximately 24,000 square feet of event space, the resort will also house one of the largest banquet and meeting facilities in Pinellas County.

Services and amenities at Wyndham Grand® Resort will include:

Immediate access to top-rated Clearwater Beach
A large outdoor pool complex
Full-service Spa
Multiple restaurants accessible from Beach Walk

Bay9 News August 2015

St. Pete-Clearwater Beach – Beat the Beach Traffic

You don’t have to get stuck in beach traffic. Whether you’re down for the day or hanging out for the week, there’s no need to get in the car to move up or down the beach. There are multiple forms of transportation on St. Pete/Clearwater Beach. Here are some of your best options.

Rent a scooter/beach cruiser

Daily bike/scooter rentals are available. Great way to experience the beach.

“Free” beach shuttle

Rides are free to anywhere on the beach; drivers rely on tips. Cheap, drivers know the area. Doesn’t run after midnight.

FREE Rides

From the South end of Pass-A-Grille and cover all of St Pete Beach, Treasure Island, Johns Pass, Madeira Beach and South Redington Beach. Also travels across the Tom Stuart causeway to accommodate Courtyard Marriott Madeira Beach. See more

Take a Trolley

Ride the Suncoast Beach Trolley and explore area beaches, restaurants and local attractions the easy way–without worrying about directions or parking. Tour the Gulf Beaches stretching from Clearwater Beach south to Indian Rocks Beach, Indian Shores, Redington Shores, North Redington Beach, Redington Beach, Madeira Beach, St. Pete Beach and Pass-a-Grille. Offered by Pinellas Suncoast Transit Authority. Cheap, worry-free, and yay! Public transit. Buses run every half hour or so from 5:00 am to 10:00 pm. See more

Take the Jolley Trolley along Clearwater Beach or surrounding towns. Runs 7 days a week 10:00 am to midnight. See more

Taxi

BATS Taxi is headquartered on the beach, and plenty of other cabs are around. Drivers know the area, service is prompt. High demand times make it a little more time consuming to locate.

Uber

If you have the app on your phone, there are likely drivers around to take you up and down the beach. Probably your quickest bet. Note that your driver may not know the area well and might get stuck in the very traffic you’re trying to avoid.

By Ferry

Maybe try out the Clearwater Ferry serving Clearwater Beach, Downtown Clearwater, Island Estates, Caladesi Island and Dunedin. Regular operating hours are Monday – Saturday 6 a.m. to 10:30 p.m. and Sundays from 9 a.m. to 10:30 p.m. See more

Retirees Choosing to Up-size Homes

Up-size Homes

The new retirement choice

Americans traditionally chose to downsize in retirement, but that may no longer be true. A wave of today’s retirees decide to up-size and enjoy the best home of their lives in retirement, according to a recent Merrill Lynch and Age Wave retirement study of more than 3,600 respondents.

In fact, 65 percent of retirees recently surveyed say they’re currently living in the best home of their lives.

Within the next decade, the number of age 65-plus households in the U.S. is expected to bloom by nearly 11 million.

As more Americans move into retirement, they’re also looking to move into a new home. The study found that 64 percent of retirees are likely to move at least once during retirement. For retirees who do move, only half have downsized, and many are moving into larger homes, according to the study.

The study showed that 49 percent of retirees didn’t downsize in their last move, and 30 percent ended up moving into larger homes. Retirees’ top reason for up-sizing was a desire for a home large and comfortable enough for family members to visit (33 percent) or even live with them (20 percent). One out of six retirees – 16 percent – said they have a “boomerang” child who moved back in with them.

Nineteen percent of retirees also said they up-sized in retirement in order to have a more prestigious home and 16 percent say they wanted a larger home to have more room for friends to visit, according to the study.

The upscale homes in Florida have two downstairs master suites separated by sound proof walls. Whatever the amenities — whether increased space or quiet accommodations — retirees are increasingly willing to pull out all the stops for their relatives’ comfort and multi-generational living.

For those retirees who did downsize, the majority said their top reasons for choosing a smaller home was to have greater freedom from financial and maintenance burdens.

FloridaRealtors.org August 2015

Getting a Large Home Loan Just Got a Little Easier

Large Home Loans

Chase Bank is easing the lending requirements for its large home loan programs — jumbo mortgages, which tend to be loans in excess of $417,000 in many markets and $625,500 in more expensive areas.

A potential buyer now only needs a credit score of 680 and a 15% down payment to qualify for a maximum loan amount of $3 million for a primary-residence home. Borrowers used to need a 740 score and put 20% down.

By easing its standards, the bank is hoping to gain more customers. “The performance we had on jumbo loans … has been fantastic. We think we are able to make high-quality loans to high-quality customers,” said Steve Hemperly, head of mortgage origination at JPMorgan Chase & Co.

The standards for second-home purchases requiring a jumbo loan have also eased to a 680 credit score and a 20% down payment. Buyers used to have to put down 30% to 50%.
The bank claims it’s the only lender allowing a 680 credit score with smaller down payments for primary and second home jumbo mortgages.

Loose lending practices helped bring down the housing market in 2008. In the wake of the Great Recession, credit markets froze and the mortgage industry upped their loan requirements.

While the standards have started to loosen, mortgage availability remains relatively tight and first-time buyers have been noticeably absent.

However, jumbo loans have performed well in the recovery. Hemperly said there’s been an increase in these large loans in California, the Northeast and Chicago.

Mortgages at a Glance

It is getting easier for some buyers to land a house with less money up front.

More lenders are lowering down-payment requirements, allowing borrowers to commit 3%—or even less—of a home’s purchase price to get a mortgage. Many had been requiring down payments of at least 20% since the recession began.

Some lenders also are waiving mortgage-related fees, and more are allowing down payments to be made by other parties, such as the borrower’s family.

The deals are aimed at buyers with good credit scores and a steady income who have been unable to save enough for a sizable down payment. They are often targeted at buyers who live in expensive housing markets, where even a small down payment can equal tens of thousands of dollars.

The WallStreet Journal & CNNMoney.com August 2015

Vacation Home Market Booming

MIAMI – The industry is booming as well-to-do people take advantage of gains in their stock-market portfolios, vacation-home experts said at the National Association of Real Estate Editors spring conference.

Numbers compiled by HomeAway, an online marketplace that links vacation-home owners with would-be renters, tell part of the story. Vacation home sales were up 57 percent in 2014 from 2013, surging to their highest level since 2003, according to survey results.

“We have not seen it as hot for new vacation-home developments in years as it is right now,” said panelist Phillip Day of IMI in Greenville, South Carolina. He said the market has an international aspect, as Europeans and South Americans, always looking for a safe haven for their money, are buying vacation homes in the Caribbean for the rental income.

Developers are even helping the buyers get passports, he said.

In Florida, Miami has the nation’s largest traveler demand for vacation rentals, with Fort Myers Beach at No. 7.

“The overall health of the rental market is very, very strong,” Gray said. “Two trends are accelerating: People are buying homes with the intent to rent them from the beginning. Ninety percent of people who are buying vacation homes — and we are seeing the highest numbers of vacation homes we have seen in a long time — plan to rent in the first year. That is great for the vacation-home market.”

It also is good for the vacation-home owner, because it does not take many weeks of rentals to put a serious dent in the annual carrying cost of a vacation property, Gray said. The average second home, when rented, generates $28,000 per year for the owners.

‘A pretty good time to buy’

The average vacation home costs about $150,000 a year, he said, which is below what it was when the market crashed in 2008.

“So, historically speaking, it is still a pretty good time to buy, in most people’s opinion — 85 percent of vacation-home buyers believe it is a good time to buy. Of course, that is a biased sample. But it creates an opportunity for people to buy into a home they might want to retire in down the road.”

The increase in listings indicates that more people are investing in vacation homes. “Although some wealthy second-home buyers don’t rent them out, Gray said, it actually is better to have people in the house rather than have it sit vacant most of the year.”

“If you had a second home and stayed in it six weeks a year, and it is sitting unoccupied for 46 weeks a year, that is not good for the home,” he said. “If people are staying in it and a cleaning crew is coming in after every stay, the home is in a better state of repair than it would be if you just left it there.”

Author and vacation-home investor Chris Cain, who is writing his third book on the subject, said the industry is picking up after “toddling along” since the bust.

Cain called vacation homes “America’s hidden treasure,” because the industry has provided millions of jobs in property management and maintenance. Most vacation home rentals are handled by management companies to reduce the hassle for owner-investors.

And they are not all rich. The median income of a vacation-home buyer in 2014 was $87,000, according to the panelists.

“More supply means more people are finding what they need in a vacation home,” Gray said. “About 84 percent of those people loved their stay and want to come back the next time. It creates a cycle where they tell their friends, and it makes the investment category more mainstream.”

Herald Tribune 6/25/2015

Sales Up as Inventory Shrinks

Prices Rise as Inventory Shrinks

Rising prices and shrinking inventory couldn’t cool home sales in Southwest Florida last month.

Sales up 20 percent statewide

Statewide, sales of existing single-family homes increased 20 percent to a total of 27,729.
The median sale price was $203,500, a 10 percent increase.
Condo sales totaled 10,991, a 15 percent gain for the year.
Condos traded for a median $152,076, up 8 percent.

“With the continued growth in both sales and prices in Florida, it raises the question of whether the market is starting to overheat,” said Florida Realtors chief economist John Tuccillo. “The decline in inventories to seller-market levels, and the decline in days on market, tend to suggest that possibility as well.”

But he cites mitigating factors: much of the inventory pressure is in the lowest-price tiers, and the rise in condo sales and prices will be eased by an increased supply of newly built towers coming on the market.

“And finally, the Federal Reserve will soon be raising interest rates, which will have a dampening effect on demand,” Tuccillo said.

Inventory in Florida now stands at 4.6 months for homes and 5.5 months for condos.

Nationwide, Americans bought homes in June at the fastest rate in over eight years, pushing prices to record highs as buyer demand has eclipsed the availability of houses on the market.

The National Association of Realtors reported sales of existing homes climbed 3.2 percent to a seasonally adjusted annual rate of 5.49 million, the highest rate since February 2007. Sales have jumped 9.6 percent over the past 12 months, while the number of listings has risen just 0.4 percent.

The median home price has climbed 6.5 percent over the past 12 months to $236,400, the highest level — unadjusted for inflation — reported by the Realtors.

Home-buying has recently surged as more buyers have flooded into the real estate market. Robust hiring over the past 21 months and an economic recovery now in its sixth year have enabled more Americans to set aside money for a down payment. But the rising demand has failed to draw more sellers into the market, limiting the availability of homes and sparking higher prices that could cap sales growth in the coming months.

“The recent pace can’t be sustained, but it points clearly to upside potential,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Nationally, a 5 months’ supply of homes was on the market in June, compared with 5.5 months a year ago.

Herald Tribune 7/24/2015

Pinellas County Real Estate Statistics for May 2015

Pinellas Real Estate Report

After several months of climbing, Pinellas County home sales have leveled out a bit. Partnered with the recent slight increase in interest rates and decreasing inventory, that’s enough to burst anyone’s bubble talk.

Lawrence Yun, chief economist for the National Association of REALTORS®, says that prices have risen quickly but he also isn’t alarmed about a housing bubble. However, he is concerned that housing affordability will continue to soften.

While some housing markets – like San Francisco and Denver – have surpassed their previous 2006 peaks in home prices, economists still aren’t concerned. They say that’s a sign of a normal housing market “because in a bubble prices typically rise in tandem across the country, rather than responding to the strength of local economies,” reports The Wall Street Journal.

The total sold units for single family and townhome/condo combined in May 2015 was 2,029, slightly lower than the 2,103 sold in April 2015. Year-over-year stats for closed single family and townhome/condo combined sales showed a 10.0% increase for May 2015 over May 2014, as compared to the 19.8% increase year-over-year from April 2014 to April 2015.

FLORIDA Realtors® June 2015

All Real Estate is Local

It’s important to work with a Realtor® when looking for the very best Clearwater Beach Waterfront Lifestyle information. For strategies on buying the right Clearwater Beach property for you, or superior service in selling your Clearwater Beach home, contact Maria 727. 798.3209 – email.

Tips for Buying a Vacation Home

You’ve discovered this great resort community. You’ve had a wonderful time there and would love to go back anytime you want, without making reservations. And…if you make some money along the way — all the better.

Congratulations. You may just be the person to buy a vacation rental.

But investment experts warn that you should never look at the idea just as an investment. Though the investment potential is there, a vacation home cannot substitute for a diversified investment plan.

However, if you love a particular beach house and cherish the time you spend there, then let’s look further.

Buying A Vacation Home for the Right Reasons

Investment experts will be the first people to tell you that you’ll never make the money on a vacation house that you could make on other investments. So if you buy one, make sure, above all, that this is a house and an area you enjoy. It will be worth the cost if you spend as much time there as possible, put your heart and soul into caring for it, or plan to keep the home in the family for future generations. There’s no price for that.

Know What You Can Afford

If you intend to obtain a mortgage, resources for mortgage calculators are available to assist you determine how much home you can afford.

The lending environment has changed substantially. Banks are very strict with their requirements. In most cases, you will need a 20 percent down payment.

Even if you view the vacation home as a potential way to earn income, don’t count on that to help you pay for the house. Keep in mind that you don’t have to buy the ultimate beach house with 5,000 square feet and a private dock. It’s OK to start small.

Prepare for Extra Costs

Beyond the initial purchase costs and closing costs, there will be taxes, insurance, maintenance and utilities. You may need to consider the costs of property management and cleaning services.

In beach and mountain areas, sand, salt, wind and ice can raise a home’s maintenance costs substantially. A beach house may need to be painted every two or three years, and a mountain house may need annual deck repairs.

Annual costs of upkeep should be in your budget from the start.

Building Pitfalls

The idea of building a house to suit your dreams is very appealing. However, in resort areas, it can quickly turn into a nightmare.

To build a house from the ground up, you may have to deal with coastal authorities, local building restrictions, aggressive homeowner associations and less-than-professional contractors.

Coastal commissions and community restrictions can often dictate plant material allowed, fencing restrictions and more.

Granted, not all resort areas come with these caveats, but the process of building a house rarely comes in under budget. If you want to keep your costs under control, stick with a home that’s already there.

Work with a Local Real Estate Professional

Resort communities are charming, but they can carry problems that are hard to live with. In the mountains, you’re often facing hazardous driving conditions. At the beach, you may have parking problems. A real estate agent will help you envision what your purchase may look like long term.

All real estate is local. An agent can also be a great resource for little-known information on financials, covenants and community restrictions.

Location, Location

Your idea of the perfect vacation may mean a place with no television, no cell phone and no sight of civilization. That’s not always appealing to a potential vacation renter. If you intend to rent the property, it’s a good idea to make sure you meet the needs of the vacationer.

You need to be on the beach. Not near the beach. You need a house with lots of sleeping options to accommodate as large a group as possible.

Ideally, the home will be in the thick of things. Think of your vacationer as someone who wants to find the house, park the car and never get in the car again for the entire week or weekend. They want to walk to the beach, walk to the store and walk to entertainment.

These types of properties generally cost more, but they make better rentals.

Research All Four Seasons Before You Buy

It’s a good idea to visit the area you’re considering in each season of the year. Though the location is perfect, how does the community function during winter, or during the off season.

Caution in Other Countries

In other countries, rules about title and ownership are not as clear as they are in the United States. For example, in Mexico, you can buy the house but only lease the land. The government owns the land and can take it back at any time.

In many countries, you run the risk of your property being ransacked or nationalized. Think of most of the world as a place where there is no 911.

At the very least, if you want to buy overseas, read the State Department’s report on the country. It’s an authoritative guide that will help you assess whether the risk is worth the money.

Joint Property Investments

These types of agreements can cause problems in even the closest of families. If you’re confident that your family can weather disagreements about buying, selling, renting, furnishing and scheduling the use of the property.

Assure that communication agreements outline all aspects of your property purchase down to the last detail of rights and privileges of ownership.