End of Year Thoughts on Sanibel Real Estate

As we discover year after year, the Sanibel Island experience is so profound that many of our rental guests become Sanibel Island property owners. Some buy condos, some buy houses, some use their places exclusively and some rent them out. The compelling reason is simply the wonderful quality of life on Sanibel. There are few places in the world that offer the topicality, comfort, nature and beauty of Sanibel Island and these attributes make our guests ask why or why not when it comes to buying a second (or sometimes first) home on Sanibel.



And now there a few more compelling reasons to consider the leap to home ownership on this unique barrier island which apply to all of Florida, as well as Sanibel.



1. Mortgage rates hit a record low of 3.94% this year (2011), homes sold for a fraction of their value five years ago, and excess inventory provided every buyer with a range of options. 2011 saw a real estate market with great deals, yet fewer buyers than needed. In 10 years, however, many Americans may look back on 2011 as the best time in a generation to invest in real estate.



2. The Florida economy remained sluggish as unemployment rates stayed uncomfortably high and home sales stayed uncomfortably low; but, across the board, the state showed signs of recovery, with almost every economic indicator suggesting brighter days ahead. Home sales edged higher most months; selling prices held their own and, in a few cases, median selling prices rose. Floridians’ consumer confidence also rose toward the end of the year after bobbing around for most of the summer. Employment followed, and while the state has a long way to go to hit “normal,” it reached a 2011 level of “better than last year.”



3. Florida Realtors had a number of victories in the 2011 Florida Legislature, but none as important as a constitutional amendment voters will consider in November 2012, and none so hard-fought as a law to “scrap the cap” on Florida’s affordable housing trust funds. Amendment 4, if approved by Florida voters, will create a property tax increase cap of 5% each year on non-homestead real estate, down from the current 10% cap. It will also give some first-time home buyers a property tax break that decreases over time. In 2012, Florida Realtors will roll out its “Yes on 4” campaign.



But the time to buy is always now, and the following spells out the reason why:
“Our state is in a mini-recovery,” said Florida Realtors® Chief Economist Dr. John Tuccillo at the state association’s 2012 Real Estate and Economic Forecast Conference in Orlando. “Sales are trending up, listing inventories are falling, the supply of lender-related properties has stabilized, and we are seeing multiple offers on homes in some local markets.” “In fact, Florida homes today may be undervalued,” Tuccillo added. “That may seem like a drastic statement,” he said. “But a buyer who plans to own the home for five to seven years can get some great bargains today.”



So let the buyer not beware, but be aware, very aware that Sanibel at any price is a great deal and at current prices a fabulous bargain!