Cape Coral Real Estate News
Posted here are some informational notes taken from news around the Cape Coral Area and even the entire country. You may find posts on upcoming events taking place in the general Cape Coral area which includes Fort Myers, Bonita Beach, Lehigh Acres, Estero and Naples.
Rising Wages could lead to a better Housing Market
At the Westin Cypress Creek, Doug Duncan, the chief economist for Fannie Mae addressed about 300 real estate professionals at a seminar. He talked about the economy and how incomes have been basically flat for some time but are seeing an uptick in wages. The slight increase in wages along with the slightly lower gas prices will help enable prospective homebuyers to save more money towards the purchase of a home.
Mr. Duncan feels 2016 has the potential to be a very good year and that households have come out of the crisis very conservative financially. Housing in South Florida and across the state has recovered from the collapse of 2006 through 2011. Opinions are that strong price increases have pretty much leveled out over the last year.
Some analysts feel that affordability remains an issue because most of the new construction is leaning towards more affluent homebuyers. Mr. Duncan felt that higher salaries should help ease the concerns of middle income buyers being priced out of the marketplace.
Patrick Flood who is regional operating partner of Plantation based Supreme Lending felt that the South Florida Housing Market is almost back to what is considered normal by historical standards.
Foreclosures on the east coast of Florida namely Broward & Palm Beach counties, are seeing a decline in homes that are entering the foreclosure process in light of the fact that the state of Florida is seeing an uptick in the Foreclosure rate. Overall the numbers are getting better in regard to foreclosure data and homes in distress, according to Daren Blomquist who is a vice president of Realty Trac.
This article taken from The Sun Sentinel of Fort Lauderdale Florida, Paul Owers. Distributed by Tribune Content Agency,LLC
Florida Program may give buyers $2K per year
The state of Florida has a program that is not very well known, that has seen a surge in it's participants as of late. The state run - Florida Housing Finance Corp. runs this program. The program gives first time homebuyers money back for interest paid on their mortgage, the maximum is $2,000. Once the homebuyers are approved, low and moderate income homeowners can claim up to half of the mortgage interest they paid as a tax credit on their federal income tax return. Credit cap is $2K per year. The tax credit is good for 30 years or the life of the mortgage as part of the Florida Housing Mortgage Credit Certificate Program.
Any interest not claimed in the program can still be deducted on the Federal tax return. The program originated in 2005 but only recently has been seen some activity. There are other benefits to the program that enable homebuyers to qualify for higher loans.
Article taken from The Sun Sentinel of Fort Lauderdale Florida , Donna Gehrke-White. Distributed by Tribune Content Agency, LLC
Cape Coral Bike Night April 11th
Cape Coral is having it's final Bike Night this weekend on Saturday April 11th. This will wrap up the Bike Night season for 2015. There will be thousands of people attracted to this event. Part of SE 47th Terrace will be closed off and two stages will be set up to handle music from local talent. On one end of the street will be a rock n roll stage with groups Lazy Bonez and Bite the Bullet. Music played will be from artists AC / DC, Judas Priest, Van Halen and others. On the other end of the street will be country music played by Grayson Rogers on the stage in front of the Dixie Roadhouse. Grayson Rogers has played with Aaron Tippin, Sara Evans, The Charlie Daniels Band, Alan Jackson and others. They've become quite the local sensation.
Also for the event will be a host of vendors - possibly 100 or more offering food and drinks, motorcycle items etc. The road will be closed between Vincennes Blvd and Coronado Pkwy. Official time for Bike night is 5PM to 10PM - I expect it to carry on well past that time.
Cape Coral is growing
Cape Coral is growing with an increase in businesses each month. According to a recent report by Cape Coral there were 109 businesses that applied for a business license in February of this year. These businesses were either new to Cape Coral or relocating within the city. There were a total of 109 businesses, 80 were home based and 29 were new place based companies.
Some of the companies are: Popeyes on Hancock Bridge Parkway, an Ace Hardware on Nicholas Parkway, Sodas Burgers & Ice Cream on Del Prado Blvd, Pascal Realty on SE 12th Ave, Joseph's Fine Furniture on Del Prado and a host of other home based operations as well.
It's clear to see that Cape Coral is seeing growth and a number of business owners are taking the opportunity to branch out, start new and join in the flourishing growth market that the area is experiencing. This is good encouraging news as more people are moving into the area and more services are being offered to accommodate the increasing population.
Why are potential Sellers Holding back to sell
According to recent housing sales data, home sales are up about 5 percent compared to a year ago. But a lot of economists are saying the number would be much higher if there was more equity in a lot more homes. Most of the home sales are attributed to existing homeowners making purchases and not first time buyers.
A lot more existing homeowners would be making the move if they had more equity in their homes. Those with only 20% or less equity are holding back because they can't afford to move up because of the additional cost needed to close the transaction. Relying on profit from an existing home sale gives homebuyers an incentive to sell and move forward with a new move. But those with equity that is still in recovery mode and not high enough keeps a lot of homebuyers stuck in a sort of limbo, waiting with no place to go. At least not in the direction they want to be going.
If prices continue to move upward as they have been lately, a lot of homebuyers will be moving into the equity plus range and may be able to make the move that they have been holding back on for years. This will help the inventory starved market in a lot of areas that are seeing a strong increase of home sales. Florida is one of those areas, and the Cape Coral - Fort Myers area has recently been identified as a metro area that is seeing strong population growth.
The Lee County area should stay on target for strong increases in growth as time marches on. With a lot of available land resources to build on, the area should see increases steadily for decades to come.
Census Bureau says The Villages is the fastest
growing US city.
According to the Census Bureau, The Villages located to the west of Orlando, grew by 5.4 percent from July 1st 2013 and July 1st 2014. It has a population of 114,000 and is the fastest growing city in the United States. Florida also has 7 metro areas in the US top 50 for growth over the same timeframe. The Census Bureau released data that Florida had become the country's third most populous state.
The seven Florida cities in the top 50 for new residents accounted for more than three quarters of the state's total population gain over the same time period.
Miami Fort Lauderdale - West Palm Beach - a one year gain of about 66,000
Orlando - Kissimmee - Sanford - about 50,000
Tampa - St. Petersburg - Clearwater - about 41,000
Jacksonville - about 23,000
Cape Coral - Fort Myers - about 18,000
North Port - Sarasota - Bradenton - about 16,000
Lakeland - Winter Haven - 11,000
Also, eight counties in Florida were in the top 50 United States counties to gain the most population from July 1st 2013 to July 1st 2014.
South Florida - Broward with a gain of about 24,000 - Palm Beach about 22,000 - Miami Dade about 21,000
Central Florida - Orange about 26,000 - Osceola about 11,000
West Central Florida - Hillsborough about 22,000
Southwest Florida - Lee about 18,000 - Polk about 11,000
More data to observe: six metro areas in Florida were among the 20 fastest growing in the United States between 2013 and 2014. In addition to the Villages they were: Cape Coral - Fort Myers (sixth), Naples - Immokalee - March Island (10th), Orlando - Kissimmee - Sanford (16th), North Port - Sarasota - Bradenton (18th) and Panama City (19th).
Florida's growth from other cities and other countries was strong enough to overcome the fact that in about half of Florida's counties, there were more deaths than births for the time period of this study which was 2013 to 2014.
Homebuyer Closing Costs
According to data from Realtor Magazine Daily News closing costs come as a surprise for many homebuyers, especially young adults. Two thirds of millennials which is those age 18 - 34 , and plan to buy a home, are not aware of closing costs. This information is from a survey of 1,000 adults conducted by Closing Corp. Closing Corp is a provider of closing costs data for residential real estate for the mortgage and real estate industries.
More than one third of all potential homebuyers, across all age brackets have said they are "not at all" or "not very" aware of closing costs. This is interesting news as closing costs represent about 2 to 5 percent of the total purchase price of a home. Homebuyers unaware of this cost are in for a rude awakening.
This information indicates that homebuyers and consumers in general need a lot more education in the home buying process, they are apparently uninformed and need to be informed. For first time homebuyers getting into the process of purchasing, understanding all the fees, costs and other items associated with a home purchase can be mind boggling and intimidating. Between the costs related to the title companies, surveys, bank fees and a lot more, a home buyer can be reeling in a lot of data on this first time home purchase learning curve.
Realtors are usually the ones that end up educating the home buyer on the real estate closing process. Lenders will fill in to help explain and supply disclosure forms that spell out the costs that are directly related to the cost of the home purchase. Later this year in August, The Consumer Financial Protection Bureau is implementing some changes to the disclosure process that will require lenders to provide potential homebuyers with new closing disclosures at least three business days prior to closing. These disclosures are intended to be easier for a homebuyer to understand. Also the new changes are supposed to give them more time to ask questions and compare costs.
Information for this writing obtained from Realtor Magazine Daily News
Home Bidding Wars Are Back
News recently has shown that the number of home sales that included a bidding war is moving upward. According to The National Association of Realtors, thirty three percent of all sales were at list price or above list price. This could, and probably does indicate that more than one buyer was involved in the transaction.
This is the highest rate since 2006.
A lot of this is due to a lack of inventory. There is about 1.8 million homes available throughout the United States for purchase, it has been this way for the last few years. Back in 2007 the number was about 3.5 million - half of what it was. Less homes on the market means more demand and more bidding wars.
Some key areas affected that were noted by Realtor.com are Las Vegas, Palm Bay Florida, Columbus Ohio, Colorado Springs Colorado and Key West Florida. Realtor.com made this known in their January National Housing Trend Report.
There is a low inventory because a lot of homeowners are sticking it out and waiting for the equity in their home to increase. As of late - this has been the case - home equity has been improving tremendously.
Adding to the demand is an improving economy putting more potential homebuyers onto the market in search of homes. This end result is escalating home prices and buyers competing against one another - Bidding Wars.
Bimini Basin Project Update
The Bimini Basin Project has been under the guidance of The University of South Florida School of Architecture and Community Design. With the help of a group of the students and faculty three teams put together ideas for future projects. The plans were given names - Canal Works, Threading The Needle and Bridging The Gap.
The projects were unveiled at the Volunteer Fireman's Terrace Hall location at 1308 SE 47th Street on Tuesday March 17th. The three different projects were talked about and explained and the differences weighed against each other. From Tuesday's unveiling the exchange of ideas and feedback from all of those present will be thoroughly gone over. The students will then take all of that information and feedback to modify their presentation for one last meeting in the middle of April. That meeting will possibly be held in front of the city council for the final formal presentation.
The project presented ideas for future building and development that could take many years to complete. The concept is that areas could be expanded on in future years with the project possibly stretching out into the year 2050. A lot of it depends on the draw of tourists, business success and the obvious activity the project generates to the area. Those that attended were very pleased with the concepts and ideas and felt more information was needed in regard to traffic study data.
Buying a Home with a Sibling - written pact helpful
Written pacts are very important when purchasing property with a family member, even a brother or sister. To start with how title is decided will determine what will happen to ownership of the property in case one of the parties dies. The big question is - will the remaining member take over ownership or will the property be left to heirs of the deceased? These are very important ideas that need to be thought of and dealt with accordingly before the property is purchased.
Other concerns are for use of the property, if it's a vacation home the use during holidays may become an issue. Also how will utility usage and maintenance be handled in a fair balance of payments. Other maintenance items, taxes etc. and possible assessments need to be dealt with and who will pay for what. Don't forget big ticket items like a major remodeling or a new roof.
One of the biggest things to discuss is if one person wants out of ownership of the property what specific procedure will be used to handle this, will the property be sold or can one person buy out the other.
Getting a lot of these ideas on paper beforehand can obviously save a lot of headaches and stress and keep relationships together and hopefully unstrained.
From an article written by Gary Singer a Florida attorney.