Real Estate Matters

On January 29th, Florida voters will have the opportunity to approve an amendment to the state's constitution that will give initial relief to the property tax crisis in Florida.  Some are saying that the amendment does not go far enough in giving tax relief, especially to non-homestead property owners, but I don't believe that this will be the final tax relief measure, just the first.  Property owners need tax relief NOW, not waiting for the legislature to present a more comprehensive package sometime in the distant future.  Our system of government is based on compromise and Amendment 1 is one example. It will allow portability to Save Our Homes property owners and it gives some relief to nonresident property owners by capping the increase in assessed value along with providing personal property tax relief.  We can't afford to wait for the perfect solution in an imperfect system.  State Senator Lisa Carlton, speaking at Sarasota's Tiger Bay Club meeting last Thursday, said that Amendment 1 will generate a 13 billion dollar tax break in Florida.  Amendment 1 will also help energize the stalled real estate market by allowing current Save Our Homes property owners to move into other homes that may more reflect their current living needs and also encourage nonresident and foreign investment into Florida real estate.

There are over four hundred regular subscribers to this blog, not only in Florida but from several states in the U.S., Canada and several countries in Europe and South America.  What do you think?  I encourage you to submit your comments regarding this very important issue facing Florida voters on January 29th so we can all share our perspectives.  Have a great week.

Bill

One of Florida's best know economist recently said that the real estate market in the region has stabilized.  Hank Fishkind made his predictions for this region as part of a 33-county economic report.  In November, Sarasota-Bradenton Realtors sold twice as many homes than in the Miami area.  The median sale price in November was $267,700, down 4 percent from a year earlier, but an improvement from $244,300 in September and $263,900 in October. Interestingly, Fishkind projects moderate rates of growth for population and employment in Sarasota and Manatee counties between now and 2010.  These predictions mirror my previous comments relating to buyer activity and interest improving in the Sarasota-Bradenton area.  However, Fishkind said that speculative investing in the real estate market occurred in the area between 2003 and 2006 and resulted in an excessive amount of new homes in both markets.  A recovery in housing starts for both counties, however, is expected to begin in 2008, he said. The economist's forecast is predicated on the assumption that the national economy, while definitely in slow motion, will narrowly avert a full-blown recession. 

Continued lower interest rates are also having a positive effect on the real estate market.  Jonathan Santiago, CMPS, a local mortgage broker with Kroboth and Helm, says in his latest newsletter that  "Mortgage Rates reach two and a half year lows! Thanks to a very healthy mortgage bond market, mortgage rates have come down to levels not seen in 2 and 1/2 years! Clearly, if you have clients who have been waiting till rates came down, now is the time to let them know that 30-year fixed rates can be had in the 5% range! "