Real Estate Matters

Just like real estate buyers here, international buyers turned away from Florida's housing market as the downturn took hold.  But now, with record dollar lows against the euro and pound sterling, low prices and large inventories, international buyers see an inviting opportunity.  In spite of Florida's challenges with property tax inequities, escalating insurance premiums and the tightening mortgage market, international buyers see an opportunity.  According to the National Association of Realtors (NAR), Florida, by far, leads the U.S. market, accounting for an estimated 26 percent of all foreign purchases for the year end period that ended in April 2007.  International, a long mainstay of Florida's real estate ownership, will play a major role in our market's future.  The euro is at an all time high against the dollar, now at 1.5369 and pound sterling at 2.0166, Europeans realize it might be the time to buy.  They are playing the currency and also playing the discount on prices.  Some are looking for a vacation home while others see an investment opportunity.  Most seem prepared to buy and hold, because this is long term, not a flip situation in the market.

How to take advantage of this opportunity is a major goal of our's at Suncoast International Realty.  A major international real estate event takes place in Madrid, Spain from April 8th to 12th and we will be participating in it for the sixth year.  SIMA 08 International Real Estate Exhibition is the largest second home expo in the world with 160,000 visitors, 21,000 real estate professionals from more than 50 countries and 800 exhibitors attending in 2007.  "SIMA's professional program has always included an important international component.  This is what makes the exposition, in addition to being a great business source and exhibition for the end-consumer, to globally position itself as a center with great expertise on international real estate tendencies," said Santiago Herreros de Tejada, International Expansion Director for Planner Reed, the hosting exhibition company.  The international program will analyze investment and business opportunities for mature markets in countries such as the U.S., U.K, Portugal, Canada and Belgium.  Different experts from each country will bring their vision and introduce opportunities in their countries.  Highlighting the US market will be the former chief economist for NAR, John Tuccillo, will present the Current Advantages For Investments In The USA strongly emphasizing why the US is a strong real estate market. 

The Sarasota Association of Realtors (SAR) also holds a prestigious position as NAR's Ambassador Association to Spain, along with Suncoast International Realty's president, Judy Schomaker, holding the position as NAR's president liaison to Spain, and my position as 2009 president of SAR will all serve to help showcase Sarasota as a premier world class destination.  At the exhibition both Judy and I will be participating in many of the seminars, programs and activities along with Judy being a featured speaker and moderator for the "America from North to South" program.  It will be an intense several days but will provide us with many networking and presentation opportunities.  We believe that our involvement will be very beneficial to Sarasota along with our clients' interests.

Cheers,

Bill

Every day newspapers and television headline the problems in the real estate without carefully analyzing the overall bigger picture of how the real estate market is really performing.  According to the National Association of Realtors (NAR), over the past 5 years the average homeowner has seen an increase of 50 percent  in value.  In Florida, statewide median home price has shown an increase of 52.5 percent for November 2002 to November 2007, according to the Florida Association of Realtors (FAR).  NAR projects that home prices will rise about 2 percent next year, and in coming years, average price appreciation should return to historical averages of around 6 percent.  That coupled with the fact that interest rates remain on par with the 1960's, and according the the Department of Labor, unemployment rate remains at 4%. 

Some other encouraging facts from Enterprise Florida reminds us that Florida has one of the nations strongest tourism industries, is 4th in the nation's high tech jobs, is the 3rd largest exporter of high-tech goods and services and is ranked as one of the best states in the nation to be an entrepreneur.  Yes, we do have challenges in the real estate market, but there are clear signs for optimism in the future.

International buyers can really benefit from the weaker US dollar, now approaching 1.60, multiplying their purchase power substantially.  International buyers also appreciate the relatively low costs of Florida property compared with similar homes in their home countries.  According to the 2007 NAR "Profile of International Home Buying Activity Study", Florida accounted for 26 percent of all international purchases.  Their is an enormous opportunity to showcase Sarasota's lifestyle and real estate possibilities here and is the main reason why we at Suncoast International Realty are participating the SIMA 08 Madrid Real Estate Exhibition, April 8th to the 12th in Madrid, Spain.  At the Sarasota Florida Booth we will be marketing our clients' properties as well as showcasing the unique lifestyle of Sarasota, which makes it a world destination and perfect place for a second home.  With 160,000 visitors expected in 100,000 square meters of exhibition area, 800 exhibitors from well over 28 countries and over 25,000 real estate professionals looking for potential investments, SIMA is the bridge between Europe, America, Asia, The Middle East as well as Latin America.  We look forward to using this creative marketing event to introduce and promote Sarasota properties to this vast audience.

Cheers,  Bill