Home prices continue to rise in Southwest Florida, but lucky for us, they are not rising as quickly as other areas of the state or the country. Single-family home prices in the Sarasota-Manatee region grew 3.4% over January of last year, which pales in comparison to other rates across the state and the country.

As the remainder of the state witnessed a 5.1% increase and the average growth rate in the U.S. was 4.4%, Southwest Florida is doing quite well at limiting the rise of housing costs. In fact, according to the Herald Tribune, “Sarasota-Manatee ranked 252nd for price gains out of the 403 metro areas analyzed in the report.”

According to Frank Nothaft, Chief Economist at CoreLogic, “Fixed-rate mortgage rates have d...

The Pending Home Sales Index is a forward-looking indicator based on contract signings, rather than closed sales. A property is placed in a pending status as soon as the contract is executed. A recent article by the Florida Association of Realtors states pending home sales have increased by 4.6% in January of this year.

While the increase was an average across the board, each of the four regions had increases ranging from 1.6% to 8.9%. The south had the largest increase of 8.9% and jumped to an index of 119.8, which is 3.1% lower than this time last year.

According to the Florida Association of Realtors, Lawrence Yun, NAR chief economist, says he expected an increase in January home sales because a "change in Federal Reserve policy and...

According to inman.com, nationwide real estate supply was down 1.4 percent last year. According to traditional supply and demand, any time supply is low, selling price tends to increase. In the real estate industry this leads to fewer homes being sold, but the homes are sold at a higher price, or what’s known as a seller’s market.
According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD), new residential home sales dropped 8.9 percent in October, which is the lowest it’s been in two years.
So what does this mean, and how does it affect the market for 2019?
We believe 2019 will be a year for growth in the industry, and it’s based on the following:

1. Existing Home Sales

Ex...

Recent studies have stated millennials are buying 8% fewer homes than their baby boomer parents and grandparents. The delay in homeownership for millennials could have long-term economic consequences. For most people, home equity is usually the largest single source of personal wealth.

A recent study titled, Millennials Could Be Foregoing Equity Wealth, compared the difference in housing wealth over three categories of homeowners. The results are as follows:

• Homeowners who purchased their home between the ages of 25 and 34 had an average housing wealth of $150,000.
• Homeowners who waited until age 35 to 44 to buy their home averaged $72,000 less.
• Those who became first-time homebuyers at 45 or older had at least $100,000 less.

We then researched the reasons millennials aren’t buying homes and came across the research report by the Urban Institute titled, Millennial Homeownership: Why Is It So Low, and How Can We Increase It?.

This report listed the following reasons for the delay in hom...

From childhood, we’re taught to invest in a home. We know we should do it, but sometimes we don’t quite know how. It’s typically our single largest investment, yet we have very little guidance on how to do it correctly. While we always recommend talking to a professional, here’s a good starting point.

1. Learn the industry. Know your risks and rewards. By far, the best way to learn about the industry is to be in the industry. Whether you’re a real estate agent, mortgage broker, home appraiser, project manager, or escrow agent, learning about real estate beforehand will provide a huge knowledge base.
2. Know the time commitment. There are many misconceptions about investing in real estate. Some people believe it’s a full time job, when in actuality, you can spend as many, or as little time as you’d like. From your investment strategy, personal life, professional life, and knowledge of real estate, your time commitment depends on many factors. All factors should be taken into consideration before making your decision.
3. Be 100% committed. Buying a home is a serious commitment and should be treated as such.
4. Know your financial options. Investing in a home doesn’t always require a massive investment up front. You can also invest using money from others. There is a term called OPM (Other People’s Money) and there are many different options on how that can be used.

Choosing to invest in Florida real estate could be the best decision of your life. For information on the real estate market in Southwest Florida, contact us directly at BrandyCoffey941@gmail.com or 941.404.4737.