Lockhart’s Blog

The housing downturn’s upside?   You don’t have to go overseas anymore for your dream retirement home.  We found the six best markets for deals.  By Chris Taylor TAMPA Going West Florida’s Gulf Coast metropolis has less glamour - and lower prices. It’s not the Atlantic coast of Florida, with symbols of opulence like lavish Palm Beach estates or multimillion-dollar spec homes. But Tampa, with it’s more blue-collar feel, offers the same brand of South Florida living at a far more affordable price.  How much more affordable?  Prices are consistently lower by 50%, estimates Deborah Farmer, president of the Greater Tampa Association of Realtors. To be sure, Tampa lived large during the boom years; prices rose 100% from 2001 to 2006.  That was fueled in large part by speculators just looking to flip, and when they started vanishing in 2006, thanks to the slowing market and a tightening of credit, so did those massive annual increases.  Real estate values have fallen 17.5% in a year, according to the Case-Shiller index. But more than other markets, Tampa could be nicely positioned for a rebound.  It’s relatively strong local economy, coupled with the fact that the bust hit here earlier than in some other markets, means that the downside may have largely played itself out.  The median price is now $222,000, down from $275,000 last year, and top NAR economist Lawrence Yun has singled Tampa out as well prepped for price recovery, estimating 20% or more appreciation in the next five years. A prime spot for high-end bargain hunters:  Gulf-front luxury condos in nearby Clearwater or St. Petersburg, which might have gone for a minimum of $1 million a few years ago, can now be snapped up in the $600,000 range. Article from june 23, 2008 Fortune Magazine.

Posted on Thu, May. 22, 2008 From Miami Herald

BY ANTHONY McCARTNEY

Associated Press

CALADESI ISLAND –

Kaylee Sturm sat in the low surf, the warm waters of the Gulf of Mexico lapping around her.The University of Tampa senior had never been to this barrier island north of Clearwater, but she and her mom were immediately impressed.

‘’I like that it’s natural,'’ Sturm said, adding that she preferred it to other Gulf Coast beaches. “The water’s just more beautiful here.'’

It’s an assessment that Stephen P. Leatherman would agree with. Leatherman, a Florida International University professor dubbed ‘’Dr. Beach,'’ picked Caladesi Island as the best beach in the 2008 ranking for his annual list, which was released Thursday. Caladesi beat out beaches in Hawaii, along the Eastern Seaboard and in California for this year’s honor.

The runners-up on Leatherman’s list of best beaches this year were Hanalei Beach, Hawaii; Siesta Beach in Sarasota, Fla.; Coopers Beach in Southampton, N.Y.; Coronado Beach in San Diego; Main Beach in East Hampton, N.Y.; Hamoa Beach, Hawaii; Cape Hatteras, N.C.; Cape Florida State Park near Miami; and Beachwalker Park on Kiawah Island, S.C.

Although a number of North and Central Florida beaches have been named No. 1 in previous years, Bahia Honda on Big Pine Key is the only South Florida beach that has topped the list, in 1992. Once a beach is named No. 1, Leatherman retires it from contention.

Caladesi’s somewhat remote location factored into Leatherman’s rankings — and why Sturm and her mother, Cynde Jayden, were awed by it.

‘’It’s an island getaway,'’ said Leatherman, who has released his annual list since 1991. He noted that despite being in the densely populated Tampa Bay-area, many nearby residents have never visited Caladesi.

Most beachgoers reach the island by a 15-minute, $9 ferry ride. Visitors — unless they bring their own boat — are limited to four-hour stays at the beach, which is a state park.

While more remote than the tourist mainstays of Clearwater or Miami, Caladesi still boasts showers, restrooms, kayak and beach chair rentals, and a snack bar where burgers and beer are available.

Caladesi’s fine, white quartz sand beach owes its creation to a 1921 hurricane, which separated it from nearby Honeymoon Island. Caladesi became a state park in 1968.

The waves are generally low on Caladesi, which Leatherman said adds to its family friendly atmosphere. He uses 50 criteria — including quality tests on water, sand and amenities — to make his assessments.

‘’It’s not just about going out and kicking sand,'’ Leatherman said.

But for tourists it is.

Jayden, 52, spent a recent weekday trying to get a tan before returning to her home near Pittsburgh. ‘’I like that you can just see forever,'’ she said. “There’s no world out there.'’

Jake Wolf and Katie Pass, prospective dental school students from the Kansas City area, said they decided to spend part of their vacation at Caladesi because they figured it would be less crowded than other gulf beaches.

‘’The fact that you have to take a ferry is different, a little exciting,'’ said Pass, 25.

Caladesi, which ranked second in Leatherman’s rankings in 2007, will now be retired from the list. Most years, he has chosen beaches in Florida or Hawaii as the top-ranked. He broke that trend last year by awarding the top spot to Ocracoke Island on North Carolina’s Outer Banks.

Leatherman compiles his list as part of the National Healthy Beaches Campaign, and this year plans a television special featuring the nation’s best beaches, he said.

Caladesi touts itself as ‘’the real Florida,'’ which is on display on a nature trail that cuts through the center of island. Palmetto scrubs, palm and pine trees sprout from the sandy ground, osprey nests can be seen in the highest branches and lizards and other small animals dart through the leaves.

‘’It’s really the idyllic environment,'’ Leatherman said.

Infomation:

• Caladesi Island State Park: www.floridastateparks.org/CaladesiIsland/

• Stephen Leatherman’s beach rankings: www.drbeach.org

——

Here are the winners going back to 1991 of FIU professor Stephen P. Leatherman’s annual Best Beach award. Winners are retired from later lists.

2008 — Caladesi Island State Park, Dunedin, Fla.

2007 — Ocracoke Lifeguarded Beach, Outer Banks, N.C.

2006 — Fleming Beach Park, Maui, Hawaii

2005 — Fort DeSoto Park — North Beach, St. Petersburg, Fla.

2004 — Hanauma Bay, Oahu, Hawaii

2003 — Kaanapali, Maui, Hawaii

2002 — St. Joseph Peninsula State Park, Port St. Joe, Fla.

2001 — Poipu Beach Park, Kauai, Hawaii

2000 — Mauna Kea Beach, Hawaii

1999 — Wailea Beach, Maui, Hawaii

1998 — Kailua Beach Park, Oahu Hawaii

1997 — Hulopoe, Lanai, Hawaii

1996 — Lanikai Beach, Oahu, Hawaii

1995 — St. Andrews State Park, Panama City, Fla.

1994 — Grayton Beach State Park, Santa Rosa Beach, Fla.

1993 — Hapuna, Hawaii

1992 — Bahia Honda, Big Pine Key, Fla.

1991 — Kapalua Bay Beach, Maui, Hawaii

By Les Christie, CNNMoney.com staff writer

Last Updated: July 5, 2008: 7:32 AM EDT 

Let the bargain hunting begin. Prices may still be falling, but they’re low enough for some investors to buy, sell, and pocket a tidy profit.

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NEW YORK (CNNMoney.com) — Rock-bottom home prices have finally begun to lure vulture real estate investors into the fray.

Sharon Restrepo, a broker in South Florida, where home prices have dropped nearly 27% over the past 12 months, recently bought a three-family home in Cape Coral from a very motivated seller for a mere $65,000. It listed for $195,000.

She can rent the three apartments out for about $1,500 and turn a profit, while she holds on to the property until the market recovers.

“The savvy investors here,” she said, “are buying up everything they can.”

Quick flips

Even in the Seattle area, where prices are down just 5% year-over-year, small investors like Liberty Capital, a three-man operation, are snapping up cheap properties.

Liberty’s portfolio manager Davis Hsu has purchased four homes this year, including a “very clean” 2,700 square foot four bedroom in suburban Federal Way, for about $330,000. He estimated that he bought it at 70 cents on the dollar. He quickly flipped it for a modest profit.

He bought another house for only $80,000, a 55% discount from the market, he figured, and made $60,000 profit when it sold. The other two properties he plans to hold onto for a while, renting them out until the market rebounds.

“You can get good deals on distressed properties,” Hsu said, “if you’re willing to wait two or three years before you sell them.”

Peter Zalewski, founder of Florida-based Condo Vultures, LLC, which specializes in bulk purchases of condo properties, is finding very deep discounts for his clients. In one deal he recently negotiated in Tampa, a developer’s lender agreed to sell 149 units for $12 million - a 43% discount to the outstanding $21 million loan…..

Short Sale is the new buzz word being used by savvy real estate Buyers who are looking for a hot deal in the current Buyer’s market. You have seen them . . . .properties advertised with a price that seems too good be true, and considerably lower than comparable properties even in the same neighborhood. Are Short Sales really a good deal, and how do you go about purchasing one of these properties? It is not always as simple as you are led to believe, but with the proper tools, you can purchase a quality Short Sale property well below market value. What is a Short Sale? A short sale means the seller’s lender is accepting less than the mortgage balance to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it. Lender acceptance may depend on several elements of your offer as well such as the percentage of your down payment, closing date, other negotiated terms, and possibly whether or not you are pre-approved for a mortgage. As a general rule, the seller will need to be in default on their mortgage and must have stopped making mortgage payments, before a lender will consider a short sale. Submitting Your Offer to The Lender After the seller has accepted your offer, your Realtor will send it to the lender for approval. Keep in mind that, even though the Seller has accepted the offer, the contract is not valid until it is accepted by the Lender. The lender will review the offer in detail and will schedule a Broker’s Price Opinion (BPO) which is a sort of abbreviated appraisal, comparing this property with other comparable properties that have recently sold or are currently for sale. Timing Is Everything A very important notion to keep in mind is that the Short Sale process takes a considerable amount of time. Depending on the details of the situation, a Short Sale will typically take much longer than a traditional sale, because of all the added steps involved in the process. Be patient, and let your Realtor make sure all the important details are taken care of.

Foreclosure vs. Short Sale Most mortgage experts agree that sellers will take a bigger hit on their credit score by going through foreclosure versus a short sale. The effect on credit will show up as a pre-foreclosure in redemption status, which will result in a loss of 80 to100 points on the FICO score versus 250 — 280 points with a foreclosure. If you’re a seller trying to decide whether to let a home go through foreclosure versus attempting a short sale, salvaging your credit is the main advantage to doing a short sale. Always seek legal and tax advice before making any decision regarding a short sale. Always consult an experienced Realtor when thinking of buying or selling a short sale property.   

Welcome to Wendy Lockhart’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in St. Petersburg.