Newsletter 40

LOW SUPPLY PUSHES PRICES HIGH: Home values in Southwest Florida continue to increase at a faster rate than the rest of the nation, but they still track behind their pre-bubble peaks. In the Sarasota-Manatee region, the median home value was $214,800 as of mid-year, a gain of 9.3% over the year, according to Zillow Real Estate Research. Nationwide, home values are up 3.3% for the year, at a median of $180,000. The stock of homes for sale nationally is down 6.5% from last year. Locally, the market is even tighter — the supply of single-family homes for sale was down by 25% in June in Sarasota County, to a mere 3.5 months’ supply. A supply that would last 6 months is considered a balanced market. Please click here for more, courtesy of the Sarasota Herald-Tribune: Lack of inventory increases prices.

FLIPPERS FIND A WAY: As housing inventory flirts with historic lows, flippers have unmasked opportunities to financially benefit at the expense of recession-battered banks, competing real estate agents and the owner-occupiers ultimately forced to pay more for their slice of paradise. “There’s a lot of competition, especially as distressed properties dwindle, so it makes it tough for the average consumer,” said Jack McCabe, a Florida real estate consultant. The Herald-Tribune recently examined more than 5,000 real estate sales deeds, mortgage notes, foreclosure cases, tax bills, building permit records and state corporation filings to identify how flippers are operating. Since the start of 2014, 586 homes navigating some stage of the foreclosure process have been bought and resold for escalating prices within a six-month period in Sarasota and Manatee counties. More than 100 properties were flipped within one month, without any permits for renovations. A least 35 of those were immediately sold for profits a second time, generating$ $2.55 million for investors on top of the markup from the initial flip. There’s more to read here: Flippers still active and profitable.

CITY OPTS TO DEREGULATE UBER, TAXIS: Sarasota city commissioners voted unanimously to abandon their months-long quest to regulate ride-hailing services such as Uber and, at the same time, decided to strip existing regulations on taxicabs. Since entering the Sarasota market in December, Uber has threatened the traditional taxicab business with its hundreds of drivers offering cheaper fares. The company uses a web-based platform allowing passengers to digitally hail a vehicle driven by one of its independent contractors whose fares are generally much lower than regular cabs. Please click on the link for more: Uber & taxis deregulated.

CANADIAN ECONOMY A CAUSE FOR CONCERN?: The Florida tourism industry has an affectionate relationship with Canadian snowbirds. The retirees from Canada who flock here for the winter months have helped build a year-round, bustling tourism season. But some economists worry that the usual influx of Canadians – who own property here, spend weeks in seaside vacation rentals and camp out in RV’s across the state – may rethink their travel plans this year as their economy slumps and the U.S. dollar remains strong. But tourism promoters are not pushing the panic button when it comes to Canadian visitors, who come from the largest international feeder market to Sarasota County. New, discount flights from Canada directly into Sarasota-Bradenton Airport via WestJet, help to offset the impact of the dollar. Follow the link for more: Will the loonie affect snowbirds this year?.

SIESTA BEACH GETS MORE LOVE: Siesta Beach got a plug from the Travel Channel last week, naming it among Florida’s top ten beaches. With it on a list of the top beachfront hotels was the Hyatt Siesta Key Beach. Siesta Key shared the accolade with Clearwater Beach, Sanibel Island, Palm Beach, Key West, Naples, South Beach, Delray Beach and Atlantic Beach. There’s more here: More love for Siesta