For a change, there has been job growth in the high-tech industry, and the state of Florida is one of the leaders. With a net increase of 6,700 new jobs, the Sunshine State was the second fastest-growing state in the country, trailing only Virginia. This is more good news for the real estate market, as traditionally job growth leads to increased home sales
Are you bridging a home purchase with a home sale? Do you feel a little anxiety? Don’t worry, you are not alone. According to a recent survey by RealEstate.com, over 2/3 of people who have done this, have had the same feelings. And the good news is that the majority have closed both deals successfully!
While we have definately experienced a slowdown in the number of home sales, according to a recent Gallup poll more than half of Americans still believe it is a good time to purchase a home. We believe this is particularly true in Southwest Florida, as many home sellers have reduced their asking price to better reflect today’s competitive market conditions. The time for wait-and-see is gone. And because of this strong buyer’s market and ample inventory there are some excellent purchases available. This is true for Olde Naples, Pelican Bay, The Strand, Windstar, Bonita Bay, Park Shore, Pelican Marsh, or any other community in the area. It also applies to condos, villas or single family homes. Working with professional Realtors, such as Chris and Dick, makes finding the right buy much easier
When looking for a Qualified Intermediary (QI) for your 1031 Exchange, one of the first things you should ask is, “Is the money in my account commingled with anyone elses account, or is it held in a separate account for each client?” You want your money to be safe and having your own segregrated account, especially one that has its own individual bond, is easily the best way to go. You may even be able to monitor it online.
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According to the Florida Association of Realtors records, for the month of March, 2006, the statewide median home price in Florida rose 17 percent to $248,200; a year ago, it was $212,600. In March 2001, the statewide median sales price was $121,600, which is an increase of about 104 percent over the five-year-period. The median is a typical market price where half the homes sold for more, half for less. Demand continues to impact housing prices across Florida, as the state’s warm weather, scenic attractions and favorable business climate attract new residents.
Are you waiting for home prices in Southwest Florida to drop before making your purchase? The wait may not be worth it in the long run, especially if you are financing your purchase. The recent trends in interest rates, and the number of the times the Fed has raised the prime over the past two years has been widely published. And with any inflationary pressures, this trend may continue. By waiting, your financing cost will most likely increase, and over the long run be more costly than a small decrease in purchase price. Investing in Southwest Florida real estate is an excellent opportunity at the present time, with historically good interest rates and an excellent inventory. Don’t forget we always have the underlying drivers: the weather, the beaches, the activities, and the lifestyle.
In a previous blog I wrote about the number of homes sold in 2005 in excess of $500,000. That is great news for a number of homeowners, but there is a catch. It could mean that there is a tax bill coming, even if the property is the homeowners primary residence. Uncle Sam will let single homeowners exclude up to $250,000 of capital gains of the sale of their primary residence provided they lived there two of the past 5 years. This exclusion jumps to $500,000 for married couples. But with the rise in prices this may not be enough, and any gain over these amounts will result in a capital gains tax due. There is no exclusion for vacation homes or investment properties.
The rapid rise in home prices is not just confined to Southwest Florida real estate and such areas as Olde Naples, Park Shore, Grey Oaks, Barefoot Beach, The Brooks, Pelican Bay, Bonita Bay, Port Royal, or Marco Island. It is happening all over the country. In a report issued by the National Association of Realtors, it was stated that the number of homes sold for $500,000 or more in 2005 leaped to more than 827,000. This represents a 29% increase from the previous year, when there were 641,200 such units sold. There were only 66,100 such homes sold in 1966.