Real Estate Local Market • August 13, 2023

July 2023 RASM Stats for Sarasota & Manatee

by Gina Larouche

“Buyers are facing a trifecta: historically low inventory, home prices that have risen for over a decade, and higher interest rates today than a year ago.”

Jessica Lautz, NAR’s Deputy Chief Economist and Vice-President of Research

JUNE HOME SALES INCREASE IN NORTH PORT-SARASOTA-BRADENTON MSA

Home sales in Manatee County have increased year-over-year for the second consecutive month in June of 2023. According to data from Florida REALTORS® and compiled by the REALTOR® Association of Sarasota and Manatee (RASM), closed sales are up this month, new listings are down, and home values have stayed higher overall when compared to the same time last year.

REALTORS® in the North Port-Sarasota-Bradenton MSA participated in 2,206 sales in June (combined for single-family homes and condos), a year-over-year increase of 5.7 percent. Compared to last month, closed sales decreased by a combined 8.9 percent for both property types in the MSA.

In Manatee County, single-family home sales increased year-over-year by 17.7 percent to 759 sales, and condo sales increased by 12.1 percent to 297 sales. In Sarasota County, single-family sales decreased by 4.1 percent to 769 sales, while condo sales increased year-over-year by 1.3 percent to 381 sales

“The residential market in Manatee County continues to thrive with two back-to-back months of increased sales over the last year, indicating strong buyer activity and market resilience,” said Brian Tresidder, 2023 RASM President and Strategic Growth & Sales Manager at William Raveis Real Estate. “The real estate market in Sarasota County remains dynamic, with single-family sales experiencing a decline compared to 2022. Nevertheless, June sales point to more balance, slowly narrowing the gap with last year’s figures and reaffirming the region’s market strength.”

Pending sales, or the number of homes that went under contract last month, increased for both property types in Manatee County but decreased in Sarasota County when compared to last year. For single-family homes, pending sales increased year-over-year by 8.3 percent in Manatee and decreased by 3.6 percent in Sarasota. In the condo market, pending sales increased by 31.3 percent in Manatee and decreased by 4.5 percent in Sarasota.

The median sale price reported in the MSA is down compared to the same month in 2022. Single-family home prices in Manatee County decreased year-over-year by 4.5 percent to $525,000 and increased by 4.5 percent to $522,500 in Sarasota County. Condo prices increased by 3.8 percent to $370,000 in Manatee and decreased by 6.3 percent to $390,000 in Sarasota. Single-family homes sold at a higher median price in June than in May of this year, while condos sold at a lower price in June when compared to the previous month.

The month’s supply of inventory continues to show a year-over-year increase this month. In Manatee County, single-family home supply increased by 55.6 percent to a 2.8-month supply and condo supply increased by 126.7 percent to a 3.4-month supply. In Sarasota County, there was a 3.2-month supply for single-family homes and a 3.5-month supply for condos, a year-over-year increase of 88.2 percent and 133.3 percent respectively. This is the third consecutive month with Manatee condos at a 3.5-month supply and the second consecutive month with Sarasota condos at a 3.4-month supply.

“With a home supply of around three months, our market continues with more favorable conditions for sellers than for buyers,” said Tresidder. “The decline in new listings within the two counties further contributes to the prevalence of a seller’s market. It is typical for our area to see a decline in new listings around this time of year before the market experiences more activity heading into fall and further into spring.”

At the end of June, there were 2,295 new listings combined for both property types in the North Port-Sarasota-Bradenton MSA, a decrease of 21.8 percent from last year and a less-than-one-percent decrease from May of this year. Broken down for each property type, there were 1,611 new listings for single-family homes and 684 new listings for condos, representing a year-over-year decrease of 24.1 percent and 15.8 percent respectively.

As for inventory, there were 5,386 active listings combined for both property types in the North Port-Sarasota-Bradenton MSA, a 51.6 percent increase from the same time last year and a 3.7 percent increase when compared to last month. Across the two-county region, there were 3,545 active listings reported for single-family homes and 1,841 listings reported in the condo market at the end of June.

The median number of days from the listing date to contract date has significantly increased from the previous year in June. Manatee County single-family homes went under contract within a median of 37 days, a 516.7 percent increase from last year. For Manatee condos, the median time to contract was 34 days, an increase of 385.7 percent. In Sarasota, the median time to contract for single-family homes increased year-over-year by 228.6 percent to 23 days and increased by 400 percent to 35 days in the condo market.

Monthly reports are provided by Florida Realtors® with data compiled from Stellar MLS. For comprehensive statistics dating back to 2015, visit www.MyRASM.com/statistics.

Real Estate Local Market • August 8, 2023

Why Focus on Radon? It Can Lead to Cancer

by Gina Larouche

For many buyers, radon is a contract detail or something noted during an inspection. But a large number of buyers don’t know what radon is or what it does.

SARASOTA, Fla. – Dear Doctors: Would you please address radon gas? I’ve spent 40 years in real estate sales here in Florida, and while radon is noted in inspections, most buyers don’t realize it’s dangerous.

Any information about the health risks, and how to protect yourself, could help a lot of people.

Dear Reader: Thank you for bringing up an important topic. You’re correct that radon is not well recognized as a potential health threat. And yet, according to the U.S. Environmental Protection Agency, it’s a leading cause of lung cancer in this country, second only to smoking.

Radon is a clear and colorless radioactive gas. It forms as the radioactive particles that are present in virtually every type of soil, rock and groundwater go through a slow and complex process of decay. Over time, long-term or repeated exposure is linked to an increased risk of lung cancer.

Radon gas can be present in any structure of any age, and in any region. The primary entry point is via cracks and fissures in a building’s foundation. Buildings with basements, which sit below ground level, are more likely to be affected by radon. This is due to their proximity to the soil and porous building materials, which make it easier for the gas to enter.

The pressure differential between the inside and outside of the home also plays a role. The lower pressure indoors acts like a vacuum and draws radon into the house. Natural air currents, plus heating and cooling systems, further disperse the gas.

When you breathe, radon gas in the environment enters the lungs. Radioactive particles, which emit low-level energy as they decay, can get trapped in the tissues. Over time, these bursts of energy can cause the cellular changes that lead to lung cancer.

The risk of cancer is higher for people who smoke. Data show that a smoker who is regularly exposed to radon in the environment has up to 10 times the risk of developing lung cancer than a nonsmoker who undergoes the same level of exposure.

For most of us, the most likely site of radon exposure is our home. Fortunately, simple and affordable detection tests are available online and from home-improvement and hardware stores. The test is put into place for either a few days or a few months and then mailed to a lab for analysis. The EPA recommends testing the basement, first floor and second floor of all homes. This includes newly built and so-called radon-resistant homes.

When radon is found, mitigation is necessary. Your state radon office or the EPA can provide information about qualified specialists to remove existing radon and put reduction measures in place. Even with radon-reduction systems, homes should be tested every two years, no matter their age. It’s also helpful to increase air circulation in the home, and to seal any cracks in the floors or walls.

The EPA website has a library of useful information about radon gas prevention and mitigation. Go to epa.gov and type “radon” into the search box at the top of the page.

© Copyright 2023 Herald-Standard (Uniontown PA), All Rights Reserved. Eve Glazier, M.D., MBA, is an internist and associate professor of medicine at UCLA Health. Elizabeth Ko, M.D., is an internist and assistant professor of medicine at UCLA Health.

20 Ways to Save Money on Homeowners’ Insurance

by Gina Larouche

By Hillard Grossman

Most money-saving tips have a secondary side effect, such as increasing out-of-pocket costs after a disaster or no coverage at all for something you may need.

MIAMI – Living in a Barbie’s World is getting more challenging as homeowners’ insurance rates soar. But, there are ways you might be able to keep those costs grounded – at a risk, of course.

According to the Insurance Information Institute, Florida homeowners could see their property insurance rates jump by 40% in 2023. NerdWallet reports the average cost for home insurance in Florida is $2,385 in July or about $199 a month.

Examining several sources and speaking to property owners and those familiar with insurance regulations, we came up with 20 ways homeowners could save on those rising premiums.

In no particular order (and only if the mortgage company does not have restrictions on adjusting the policy):

1. Raise your deductible: Most insurance companies reportedly recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%. If you have a $1,000 deductible, you could save an average of 11% a year by increasing it to $2,500, according to NerdWallet’s rate analysis.

2. Drop non-essential coverage: Outside walls, gazebos, sheds, and fences often are add-ons to the standard policy, costing you more each year. Save that money for a rainy day.

3. Don’t make small claims: Some insurers offer discounts if you remain claim-free for a certain period of time, usually a few years. According to a NerdWallet analysis, a wind damage claim raises your annual insurance cost by about 9%, so something minor, such as screens or a window, could be repaired for less.

4. Shop wisely: Douglas Heller, director of insurance for the Consumer Federation of America, recommends researching home insurance prices three ways: online, with an agent at a brand-name company, and through an independent agent (or broker) that represents several insurers. You can obtain information about insurance companies through the National Association of Insurance Commissioners.

5. Reinforce your property: Installing storm-resistant shutters, impact-resistant windows, and roof straps are all best precaution measures. But, unless the entire (or bulk of, in some cases) mitigation list from your insurer is checked off, such as not having an upgraded garage door, the discount won’t apply.

6. Bundle your insurance: Did you know that bundling auto and home with the same company can save you 5% to 15% on your homeowners’ premium? It doesn’t hurt to try.

7. Erase the sinkhole coverage: If your plan includes sinkhole coverage, and you’re not in a designated location for sinkholes, your insurance company should allow you to drop it. That, alone, can save hundreds of dollars.

8. Remain with the same insurer: Loyal customers can often get a 5% or even 10% discount, based on the years they’ve been insured with the same company. But keep comparing!

9. Ask for discounts: Are you a non-smoker? According to a report from Coastal Insurance, many companies are required to offer discounts to clients when they request them but might need to be more upfront about it. Paperless billing, auto-pay, or even teachers or firefighters, might rate a discount. If you’re at least 55 years old and retired, you may qualify for a discount of up to 10% at some companies, according to the Insurance Information Institute.

10. Know what you’re getting: Heller says to shop with insurers protected by a state guaranty fund, which pays out claims if the company is insolvent, and find the ones that offer replacement cost policies rather than on depreciated value or actual cash value (e.g., a 15-year-old roof) of the damaged property.

11. Make your home more secure: Smoke detectors, burglar alarms, or deadbolt locks could earn you a 5% discount, says Mark Friedlander, spokesperson for the Insurance Information Institute. He said you might save as much as 15% to 20% if you have a comprehensive sprinkler system and an actively monitored fire and burglar alarm.

12. Remember the inside: By upgrading your electrical, plumbing and air/heat appliances to lessen the risk of water and fire damage, especially if they are less than 10 years old, you wouldn’t be paying more for insurance. Also, keep an eye on how much the home’s contents are worth insuring – you could save here.

13. Leave out the land: Coastal recommends leaving out the value of the land when assessing the insurance you need since it cannot be endangered by windstorms or theft, or other perils defined in your policy (well, except the sinkholes!).

14. Build your credit score: More and more insurers are using credit data to set prices for policies, but most states require the insurer to advise the client so that they can make sure the data used is accurate. The best advice ever: Pay your bills promptly. Do not apply for more credit than needed, and maintain a low balance.

Believe it or not, someone with poor credit could pay 94% more for homeowners insurance than someone with good credit, on average, according to NerdWallet’s rate analysis.

15. Get rid of “high-risk” stuff: Trampolines, diving boards and playground equipment add to the liability risk, where someone could get hurt. Trees that could fall onto the house also should be trimmed. Removing these could save on your policy.

16. Install leak and temperature detectors: Insurance companies can reduce your rates by 5% when you install temperature and leak detection systems to help detect a broken water heater or pipe, saving thousands in the long run.

17. Private insurance or government?: If you live in an area vulnerable to coastal storms, for example, and you’re under a government plan such as Citizens, it could be less expensive to go to a private company. The advice from the Insurance Information Institute is to contact an insurance agent or broker, or even ask the State Department of Insurance (by e-mail) for names of companies that might want your business.

18. Buyer beware: Did you know you might pay less for insurance if you buy a house close to a fire hydrant or in a community with a professional, rather than a volunteer, fire department? If you live in the East, consider a brick home because it’s more wind resistant. Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are considering buying (although they will ask personal questions). But it could save you 5-15%.

Hot tubs, pools, and even certain dogs can add to the liability protection costs. And, if the property is in a flood-prone or earthquake-prone area, you’ll have to shell out extra insurance for that, too.

19. Review your policy: It’s always a good idea to annually review the value listed on your policy (usually called Dwelling Limit or Coverage A) in a face-to-face meeting with your insurer. You’d be surprised after hearing, “What if we …”

20. Don’t drop coverage to save money: NerdWallet does not recommend cutting coverage because if disaster strikes, “you’ll be left footing the bill when it’s time to rebuild your home and replace lost belongings.” Instead, analysts say, try getting quotes from private insurance companies. You may find a cheaper option.

And that’s what we all want.

Sources: NerdWallet.com; USA Today; Coastal Insurance; Insurance Information Institute; DIY Round Table.

Real Estate Local Market • August 6, 2023

NAR’s 2023 International Sales Report: 23% in Fla – JULY 2023

by Gina Larouche

NAR’s 2023 International Sales Report: 23% in Fla.

By Kerry Smith

https://www.ancestry.com/family-tree/person/tree/5343825/person/212495814034/facts

International buyers face the same challenges as domestic buyers: Transactions were down 9.6% year-to-year, and the number of homes sold (84.6K) declined 14.2%.

WASHINGTON – From April 2022 through March 2023, foreign buyers purchased $53.3 billion worth of U.S. existing homes – 9.6% less than the previous 12-month period, according to the National Association of Realtors® (NAR). They bought 84,600 properties, down 14.2% year-to-year and the fewest number of purchases since 2009, when NAR began tracking international-buyer data.

Still, foreign purchases didn’t fall as much as existing home sales, which were down 17.8% from 2021.

“Sharply lower housing inventory in the U.S. and higher borrowing costs across the world have dented international buyers for two straight years,” says NAR Chief Economist Lawrence Yun. “However, recovering international travel following the end of the pandemic will bring more foreign transactions in coming months and years.”

NAR’s 2023 Profile of International Transactions in U.S. Residential Real Estate surveyed Realtor members about transactions with international clients who purchased and sold U.S. residential property from April 2022 through March 2023:

Foreign buyers residing in the U.S. as recent immigrants or holding visas that allowed them to live in the U.S. purchased $23.4 billion worth of U.S. existing homes, a 31.4% decrease from the prior year and 44% of the dollar volume of purchases.
Foreign buyers who lived abroad purchased $29.9 billion worth of existing homes, up 20% from the 12 months prior and accounting for 56% of the dollar volume. International buyers accounted for 2.3% of the $2.3 trillion in existing-home sales during that period.

The average ($639,900) and median ($396,400) existing-home sales prices among international buyers were the highest ever recorded by NAR – and 7% and 8.3% higher, respectively, compared to the previous year. The increase in prices for foreign buyers reflects the increase in U.S. home prices, as the median sales price for all U.S. existing homes was $384,200.

At $1.23 million, Chinese buyers had the highest average purchase price, with a third – 33% – purchasing property in California. In total, 15% of foreign buyers purchased properties worth more than $1 million from April 2022 to March 2023.

China and Canada remained first and second in U.S. residential sales dollar volume at $13.6 billion and $6.6 billion, respectively, continuing a trend going back to 2013. Mexico ($4.2 billion), India ($3.4 billion) and Colombia ($0.9 billion) rounded out the top five.

Top foreign buyers

China (13% of foreign buyers, $13.6 B)
Mexico (11% of foreign buyers, $4.2 B)
Canada (10% of foreign buyers, $6.6 B)
India (7% of foreign buyers, $3.4 B)
Colombia (3% of foreign buyers, $0.9 B)

“Home purchases from Chinese buyers increased after China relaxed the world’s strictest pandemic lockdown policy, while buyers from India were helped by the country’s strong GDP growth,” Yun says. “A stronger Mexican peso against the U.S. dollar likely contributed to the rise in sales from Mexican buyers.”

Florida still top state for international transactions

For the 15th consecutive year, Florida remained the top destination for foreign buyers, accounting for 23% of all international purchases.

Florida (23%)
California (12%)
Texas (12%)
North Carolina (4%)
Arizona (4%)

“Florida, Texas and Arizona continue to attract foreign buyers despite the hot weather conditions during the summer and the significant spike in home prices that began a few years ago,” Yun says.

Other take-aways from NAR’s report

All-cash sales accounted for 42% of international buyer transactions compared to 26% of all existing-home buyers.
Non-resident foreign buyers (52%) were more likely to make an all-cash purchase than resident foreign buyers (32%).
Two-thirds of Colombian buyers (67%) made all-cash purchases, the highest share among the top five foreign buyer nations. Approximately half of Canadian (51%) and Chinese (47%) buyers made all-cash purchases. Asian Indian buyers were the least likely to pay all cash, at just 15%.
Half of foreign buyers purchased their property for use as a vacation home, rental property or both – up from 44% the year before.
Almost three out of five international buyers (59%) purchased detached, single-family homes.

“NAR and the Realtor brand has developed a network of partnerships with over 100 real estate organizations across 77 countries providing growth opportunities by ensuring ethical and accessible markets that allow our members to make direct connections with global real estate professionals and international investors,” says Charlie Dawson, NAR’s vice president of engagement and advocacy outreach.

If you want to sell or purchase a property, please contact GINA LAROUCHE, to help you. Lived here for over 23 years and in real estate helping others for over 21 years.

BUYERS & SELLERS • Real Estate Local Market • June 2, 2023

Gov. Signs 3 Property Insurance Bills into Law – JUNE 2023

by Gina Larouche

Gov. Signs 3 Property Insurance Bills into Law

By Kerry Smith

HB 881 expands the My Safe Florida Home program to most areas and increases minimum home values. SB 7052 boosts consumer protections and insurer accountability. HB 799 changes Citizens’ price increase “glide path” mainly for non-homesteaded properties.

TALLAHASSEE, Fla. – Gov. Ron DeSantis signed three bills on Wednesday that impact property insurance in Florida. Together, they push property insurance discounts for homeowners who strengthen their home to minimize storm damage, help some Floridians pay for upgrades based on the recommendations of a free inspection, limit policy cancellations and make a number of other changes.

My Safe Florida Home program

House Bill 881 expands the eligibility requirements of Florida’s home hardening grant program, known as My Safe Florida Home. It now covers homes with an insured value up to $700,000 – an increase from $500,000 – and it includes townhomes.

While the My Safe Florida Home existed before the governor signed HB 881, the program now offers grants – $2 for every $1 spent up to $10,000 – to almost every Floridian, even if they’re outside a windborne debris region.

The Florida Legislature also appropriated another $100 million to extend the program. It’s effective July 1, 2023.

Citizens Property Insurance and more

HB 799 includes a number of provisions, such as requiring property insurers to allow for mitigation discounts if a homeowner reduced their potential for losses in a windstorm.

However, the major change affects policies on second and vacation homes insured by Citizens Property Insurance, Florida’s state-owned “insurer of last resort.” HB 799 treats Florida residents – owners with a homestead exemption on their property – differently than investment properties.

While homesteaded owners will still have a “glide path” to higher payments as Citizens raises rates, vacation and second-home owners will not. Investment homeowners, both new and existing, will likely see a higher bill sometime over the next year as policies renew or non-homesteaded owners with another insurer switch their coverage to Citizens.

Homesteaded owners who switch to Citizens because their current insurer became insolvent are similarly impacted. Effective July 1, 2023.

Insurer accountability

Senate Bill 7052 contains a number of consumer-protection provisions, such as new restrictions on insurers canceling a policy with an open claim, increased fines against insurers, limits on insurer executive compensation under certain circumstances, and guardrails for insurers who amend insurance adjuster reports. It’s also effective July 1, 2023.

Real Estate Local Market • May 22, 2023

Senate Bill 264 – Interests of Foreign Countries – May 2023

by Gina Larouche

Learn more about a new law that regulates the sale, purchase and ownership of certain properties in Florida by specific foreign principals, persons and entities.

During Florida’s 2023 legislative session, lawmakers passed Senate Bill 264 – Interests of Foreign Countries. This bill was recently signed into law by Gov. Ron DeSantis and will take effect on July 1, 2023. The law, in part, limits and regulates the sale, purchase and ownership of certain properties in Florida by specific foreign principals, persons and entities.

There are three sections of the new law that impact the state’s real estate industry. To help stakeholders better understand this impact, Florida Realtors has developed a memorandum that outlines the new law. Please note that the Florida Real Estate Commission, the Florida Department of Agriculture and Consumer Services and the Florida Department of Economic Opportunity are required to implement specific portions of the bill, so a number of details regarding the law’s application are still pending.

MEMORANDUM – click here to read it as downloadable pdf

SB 264 – Interests of Foreign Countries

Florida Governor Ron DeSantis signed Senate Bill 264, Interests of Foreign Countries, effective July 1, 2023. The law, in part, limits and regulates the sale, purchase and ownership of certain properties in Florida by foreign principals, persons and entities described in Part III of Chapter 692, Florida Statutes.

The three sections of the bill that impact the real estate industry are summarized below. The Florida Real Estate Commission (FREC), Department of Agriculture and Consumer Services (DACS), and the Department of Economic Opportunity (DEO) are required to implement specific portions of the bill, so a number of details regarding the law’s application are still pending. Florida Realtors® will engage in the implementation process.

This summary is a broad overview of a new and very technical law. Realtors® should advise the parties to real estate transactions to consult an attorney regarding how the law may impact their legal rights and responsibilities. Definitions of bolded and italicized words are provided on the second page. This prohibition does not apply to a purchase for a diplomatic purpose.

Section 5: Purchase of Agricultural Land by Foreign Principals

The bill prohibits the purchase of agricultural land by foreign principals.
-At time of purchase, buyers of agricultural land must provide a signed affidavit attesting that they are not a foreign principal.
-Persons who acquire or knowingly sell agricultural land in violation of this section commit a misdemeanor.
-FREC is required to adopt rules to implement portions of the statute and develop the affidavit. -Foreign principals may continue to own agricultural land if owned before July 1, 2023, but must register with DACS. There are penalties for not registering by January 1, 2024.
-Foreign principals may acquire agricultural land on or after July 1, 2023 by devise or descent, through the enforcement of security interests, or through the collection of debts, but must sell within 3 years after acquisition.
-Land acquired in violation of this statute may be forfeited to the state.

Section 6: Purchase of Real Property On or Around Military Installations and Critical Infrastructure

The bill prohibits the purchase of real property within 10 miles of any military installation or critical infrastructure facility in Florida by foreign principals.

-At time of purchase, buyers of property within 10 miles of a military installation or critical infrastructure facility must provide a signed affidavit attesting that they are not a foreign principal.

-Persons who acquire or knowingly sell real property in violation of this section commit a misdemeanor.

-FREC is required to adopt rules to implement portions of the statute and develop the affidavit. -Foreign principals may continue to own real property within 10 miles of any military installation or critical infrastructure if owned before July 1, 2023, but must register with DEO by December 31, 2023.
-There is an exception for foreign principals, who are natural persons, to purchase one residential property up to 2 acres in size if:

The property is not located within 5 miles of any military installation (there is no limitation regarding a property’s proximity to critical infrastructure);
The person has a U.S. Visa that is not limited to tourism, or has official documentation confirming that the person has been granted asylum in the U.S.; and
The purchase is in the name of the person who holds a visa or official documentation.

-Foreign principals may acquire real property within 10 miles of any military installation or critical infrastructure facility in the state on or after July 1, 2023 by devise or decent, through the enforcement of security interests, or through the collection of debts, but must sell within 3 years of acquisition.
-Land acquired in violation of this statute may be forfeited to the state.

Section 7: Purchase and Acquisition of Real Property by the People’s Republic of China (PRC)

The bill prohibits certain PRC persons or entities from owning or acquiring real property in the state.

-At time of purchase, buyers of real property must provide a signed affidavit attesting they are not “persons or entities associated with the PRC”.
-FREC is required to adopt rules to implement portions of the statute and develop the affidavit. -Persons who knowingly sell real property in violation of this section commit a misdemeanor. Any other violation of this section is a felony.

-There is an exception for natural persons associated with the PRC to purchase one residential property up to 2 acres in size if:

The property is not located within 5 miles of a military installation (there is no limitation regarding a property’s proximity to critical infrastructure);
The person has a U.S. Visa that is not limited to tourism, or official documentation confirming that the person has been granted asylum in the U.S.; and
The purchase is in the name of the person who holds the visa or official documentation.

-Persons or entities associated with the PRC that own property in Florida before July 1, 2023 may continue to own such property but cannot purchase or inherit additional property and must register with DEO by December 31, 2023.
-Persons or entities associated with the PRC may acquire property in Florida on or after July 1, 2023 by devise or descent, through the enforcement of security interests, or through the collection of debts, but must sell within 3 years of acquisition.
-Property owned or acquired in violation of the new statute may be forfeited to the state.

Definitions:

Agricultural land means land classified as agricultural in s.193.461, F.S. (bona fide agricultural purposes).
Critical infrastructure facility means any of the following, if it employs measures such as fences, barriers, or guard posts that are designed to exclude unauthorized persons:

A chemical manufacturing facility; a refinery; an electrical power plant as defined in s. 403.031(20); water treatment facility or wastewater treatment plant; a liquid natural gas terminal; a telecommunications central switching office; a gas processing plant, including a plant used in the processing, treatment, or fractionation of natural gas; a seaport as listed in s. 311.09; a spaceport territory as defined in s. 331.303(18); and an airport as defined in s. 333.01.

Foreign countries of concern means the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign country of concern.
Foreign entity means an entity that is owned or controlled by the government of a foreign country of concern; or a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern, or a subsidiary of such entity.

Foreign principal means:
The government or any official of the government of a foreign country of concern;
A political party or member of a political party or any subdivision of a political party in a foreign country of concern;
A partnership, association, corporation, organization, or other combination of persons organized under the laws of, or having its principal place of business in, a foreign country of concern, or a subsidiary of such entity;
Any person who is domiciled in a foreign country of concern and is not a citizen or lawful permanent resident of the United States; or
Any person, entity, or collection of persons or entities, described above having a controlling interest in a partnership, association, corporation, organization, trust, or any other legal entity or subsidiary formed for the purpose of owning real property in this state.

Military installation means a base, camp, post, station, yard, or center encompassing at least 10 contiguous acres that is under the jurisdiction of the Department of Defense or its affiliates.
“Persons or entities associated with the PRC” means the following entities may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimus indirect interest, in real property in this state:

The People’s Republic of China, the Chinese Communist Party, or any official or member of the People’s Republic of China or the Chinese Communist Party;
Any other political party or member of a political party or a subdivision of a political party in the People’s Republic of China;
A partnership, an association, a corporation, an organization, or any other combination of persons organized under the laws of or having its principal place of business in the People’s Republic of China, or a subsidiary of such entity;

Any person who is domiciled in the People’s Republic of China and who is not a citizen or lawful permanent resident of the United States; or
Any person, entity, or collection of persons or entities described above having a controlling interest in a partnership, association, corporation, organization, trust, or any other legal entity or subsidiary formed for the purpose of owning real property in this state.

Real property means land, buildings, fixtures, and all other improvements to land.

Real Estate Local Market • May 22, 2023

Out-of-Town Moves Didn’t End with Pandemic – April 2023

by Gina Larouche

Out-of-Town Moves Didn’t End with Pandemic

By Kerry Smith

Number of buyers looking within their metro dropped 15.6% in 1Q, but the number looking elsewhere fell only 4.2%. Fla. has 5 of top 10 want-to-move-to metros.

SEATTLE – The pandemic-era trend of buyers relocating greater distances didn’t end with the pandemic. While Redfin says searches on its website were down overall in the first quarter (1Q) of 2023, the number searching for a home outside their current metro was down only 4.2% compared to a drop of 15.6% of buyers seeking something else near their current location.

During the pandemic, both of those numbers shot up – but the out-of-state mover numbers shot up more.

The reasons for long-distance relocations have changed a bit, though. Many out-of-state moves took place during the pandemic because workers were no longer tied to an office and commute. More recently, a drive for affordable housing has become more important. Relatively affordable places are some of the nation’s most popular destinations.

And of the top 10 move-to cities cited by Redfin for 1Q, five are in Florida.

Looking at the trend another way, house hunters moving to a new area make up a bigger piece of the homebuying pie than ever. A record one-quarter (25.1%) of Redfin.com home searchers looked to relocate to a new metro in the first quarter. That’s up from 22.8% a year earlier and around 18% before the pandemic.

Top 10 move-to U.S. metros, 1Q year-to-year

Popularity is determined by net inflow – how many more users looked to move into an area than leave.

Miami: Net inflow 8,600 – top origin city, New York City
Phoenix: Net inflow 7,600 – top origin city, Seattle
Las Vegas: Net inflow 6,600 – top origin city, Los Angeles
Tampa: Net inflow 6,000 – top origin city, New York City
Orlando: Net inflow 5,400 – top origin city, New York City
Sacramento: Net inflow 5,400 – top origin city, San Francisco
Cape Coral: Net inflow 4,900 – top origin city, Chicago
North Port-Sarasota: Net inflow 4,900 – top origin city, Chicago
Dallas: Net inflow 4,800 – top origin city, Los Angeles
Houston: Net inflow 4,300 – top origin city, New York City

Things have changed a bit for the top outbound cities, however. While the nation’s largest cities generally saw a population decline during the pandemic, a few are now seeing a better balance between incoming and outgoing residents. Immigration into major U.S. coastal cities like New York and Los Angeles, for example, has rebounded after dropping off drastically in 2020 and 2021.

In many cases, an uptick in international buyers has made up for some of the residents moving to less expensive destinations. The net inflow of immigrants more than doubled from 2021 to 2022 in the Bay Area, New York, Los Angeles, Washington, D.C. and Boston.

“Several years of declining immigration, compounded by Americans flowing out of big coastal cities during the pandemic, resulted in many major coastal cities losing population,” says Redfin Deputy Chief Economist Taylor Marr. “Last year’s immigration rebound was a boon for those cities, which take in most of the people who move to the U.S. from other countries. For the housing and rental markets, the recovery should add enough demand to at least partly make up for the existing residents who move further inland.”

Top 10 move-out U.S. metros, 1Q year-to-year

San Francisco: Net outflow 31,100 – top destination city, Sacramento
New York: Net outflow 23,400 – top destination city, Miami
Los Angeles: Net outflow 20,300 – top destination city, Las Vegas
Washington, D.C. : Net outflow 18,000 – top destination city, Miami
Boston: Net outflow 5,800 – top destination city, Miami
Seattle: Net outflow 4,700 – top destination city, Phoenix
Chicago: Net outflow 4,500 – top destination city, Cape Coral
Denver: Net outflow 4,200 – top destination city, Chicago
Hartford: Net outflow 3,200 – top destination city, Boston
Minneapolis: Net outflow 2,500 – top destination city, Chicago

Overall, Miami, Phoenix, Las Vegas, Tampa and Orlando were the most popular move-to destinations. Sun Belt locales are typically the most popular because they’re relatively affordable. The typical home in eight of the 10 most popular destinations is less expensive than in its top origin.

People are also moving to the Sun Belt from other countries, and immigration into seven of the 10 most popular migration destinations – Phoenix, Tampa, Orlando, Cape Coral, North Port-Sarasota, Dallas and Houston – more than doubled from 2021 to 2022. However, they still didn’t achieve the total numbers of immigrants as the nation’s big coastal metros.

BUYERS & SELLERS • Real Estate Local Market • May 16, 2023

Florida insurance policyholders hit with 1% emergency ‘assessment’ fee – April 2023

by Gina Larouche

Florida insurance policyholders hit with 1% emergency ‘assessment’ fee

1% emergency ‘assessment’ to be collected to cover costs of claims

https://www.clickorlando.com/news/2023/04/17/florida-insurance-policyholders-hit-with-1-emergency-assessment-fee/

TALLAHASSEE, Fla. – State insurance regulators last week signed off on a plan that will lead to policyholders throughout Florida paying extra on their bills because of property-insurer insolvencies.

Insurance Commissioner Mike Yaworsky issued an order that approved a request by the Florida Insurance Guaranty Association to collect a 1 percent emergency “assessment” to cover costs of claims.

Insurers will collect the assessments from policyholders starting in October and send the money to the Florida Insurance Guaranty Association, according to the order.

The Florida Insurance Guaranty Association, or FIGA, is a non-profit agency created by the state to handle claims when insurers become insolvent. It has issued a series of assessments in recent years amid financial problems in the property-insurance industry. Seven property insurers have been deemed insolvent since early 2022.

FIGA’s board on March 31 approved seeking the emergency assessment after the insolvency of United Property & Casualty Insurance Co. That insolvency, which led to the appointment of a receiver for the company in February, is expected to lead to FIGA handling hundreds of millions of dollars in claims.

Under the plan approved last week by regulators, FIGA is borrowing $150 million in short-term financing to help pay claims. It then will issue up to $750 million in revenue bonds to pay off the short-term financing and to pay remaining claims. Money from the assessments will be used to pay off the bonds.

The FIGA website said the 1 percent assessment will continue until the “bonds have been paid in full.”

“The emergency assessment is necessary to secure funds for the payment of covered claims, to pay the reasonable costs to administer such claims, including claims resulting from insurance companies that have become insolvent or may become insolvent as a result of losses incurred due to hurricanes including but not limited to Hurricanes Irma, Michael and Ian, and to secure bonds issued to generate revenues to pay claims,” FIGA Executive Director Corey Neal wrote in an April 4 letter to Yaworsky.

Lisa Miller is the former Florida Deputy Insurance Commissioner and current CEO of Miller and Associates. She told News 6 that the funds generated from the fee are needed to pay claims for homeowners whose insurance companies have gone bankrupt. Miller added that the goal is to prevent any additional companies from shutting down.

“It signals that there are some large expenses coming up with large amounts of people that need their claims paid,” Miller said. “We can’t do anything about the weather. It’s sever storms, afternoon thunderstorms. The weather has really changed. We can’t change that.”

Miller said the Florida Insurance Guarantee Association will oversee the funds and assure that the money generated from the fees goes directly to pay for claims.

“Take a hard look at your insurance policy line-by-line and see if there is a way to adjust those costs,” Miller said. We as Floridians are going to be in this, probably going to get worse before it gets better. You’ve heard the governor say that, but their hope is over the next 18-20 months, we can bring these rates down.”

The assessment will come as property-insurance policyholders throughout the state face soaring premiums. Assessments will also be collected on a variety of types of other insurance policies, though they will not apply to auto insurance.

FIGA also collected a 0.7 percent assessment in 2022. It began collecting an additional 1.3 percent assessment on July 1, 2022, that is scheduled to end June 30, according to information on the agency’s website. In addition, policyholders are being hit this year with another 0.7 percent assessment that will end Dec. 31.

Private property insurers have dropped hundreds of thousands of policies and sought large increases during the past two years because of financial problems. Along with resulting in FIGA assessments, the problems in the industry have led to explosive growth at the state-backed Citizens Property Insurance Corp.

Many state leaders have long warned that If Citizens does not have enough money to pay claims, it could have to collect assessments on policyholders throughout the state. Citizens, which had 1.248 million policies as of April 7, did not need to turn to assessments after last year’s Hurricane Ian and Hurricane Nicole.

https://figafacts.com/frequently-asked-questions/

BUYERS & SELLERS • Real Estate Local Market • May 1, 2023

What’s ‘Special’ About Special Assessments? April 26, 2023 by Meredith Caruso

by Gina Larouche

What’s ‘Special’ About Special Assessments?

By Meredith Caruso

Special assessments appear in various places of the Florida Realtors/Florida Bar contract, but Paragraph 3(c) on the Condo Rider has confused more than a few members.

ORLANDO, Fla. – The contracts and riders/addenda Florida Realtors offers members mention “special assessments” in various places. However, one tends to cause the most confusion: Paragraph 3(c) of the Florida Realtors/Florida Bar Condominium Rider (Condo Rider). This article focuses on that paragraph and how it operates.

Paragraph 3 of the Condo Rider is entitled “Fees, Assessments, Prorations and Litigation” and broken down into four subsections. The third section, subsection (c) covers “Special Assessments and Prorations.” A special assessment, in short, is a stand-alone charge above and beyond expected debt obligations, like a regular monthly payment.

Let’s take a look at 3(c) to hopefully make it easier to follow and, therefore, to complete and understand.

Subsection 3(c)(i) reads as follows:

Click image to enlarge

What exactly is supposed to go here? This section is where sellers inform buyers about any special or other assessments of the association.

Any special or other assessments? No, just those levied by the association OR been an item on the agenda OR reported in the minutes of the association.

Wait, for how long? Within twelve (12) months prior to the effective date of the sales contract. Many of the time calculations in the sales contracts involve the effective date, and this is just another example of why the date is vital for understanding contract calculations.

It’s important to note that this section covers levied AND pending assessments. Levied, as used here, is in the past tense and means an assessment that the association has charged or imposed. Pending is defined as any special assessment that has been an item on the agenda OR reported in the minutes of the association in the previous twelve (12) months.

Practical tip: Before completing this section, sellers should verify their information directly with the association. While sellers may be aware of a levied assessment, they might not be up to date on a pending one, given that pending assessments are assessments on the agenda or reported in the minutes for the previous twelve (12) months. This is especially true for sellers who may not primarily occupy the property.

As you will see later, skipping this step – not personally verifying pending assessment with the association prior to completing this section – could come back to haunt the seller.

Let’s move on to subsection 3(c)(ii), which states:

Click image to enlarge

This section deals with levied or pending assessments that can be paid in installments. Many associations don’t require owners to pay an entire assessment amount upfront, but instead state that owners can pay the assessment in installments. Sellers should definitely check with the association to verify this information.

Once a seller has confirms that a levied or pending assessment may be paid in installments, this subsection clarifies who will pay the individual installments. While the seller pays any due before closing, the parties can choose who will pay installments due after closing by checking one of two boxes. The section may be left blank, but if it is, the buyer pays installments due after closing by default.

Note: If the box for Seller is checked, the seller pays the assessment in full prior to or at closing. Even if an assessment has an installment option, that option ends if the seller agrees to pay off any amounts due after closing. At this point, the seller stops using installments and pays off the full amount of the remaining debt obligation.

Subsection 3(c)(iii) says:

Click image to enlarge

Remember when I mentioned that a failure on the part of the seller to verify levied or pending assessments could come back to bite them? Well, here are the teeth.

To clarify, the seller’s failure to disclose levied or pending assessments existing as of the effective date results in the seller paying those undisclosed assessments in full at the time of closing. Sellers who filled out this paragraph off the top of their head – without doublechecking with the association – could end up with an extra unexpected cost. It’s important to tell your sellers to verify this information before they complete this document.

Practical tip: When taking any listing of property subject to an association, a prepared agent will let sellers know what information they need to get from the association. Give a copy of the applicable rider/addenda to sellers so they can review the questions and know what to ask. And start this process at the beginning, i.e. when taking the listing, not once sellers start getting offers.

Subsection 3(c)(iv) discusses what happens if a special or other assessment is imposed after the effective date and states:

Click image to enlarge

This language emphasizes that any special assessment that is imposed after the effective date of the sales contract, which was not pending as of the effective date, will be broken down between the parties, with the seller paying all amounts due before closing and the buyer paying all amounts due after.

Note: This section says the imposed special assessment here was not pending, i.e. been on the agenda or reported in the minutes of the association in the previous twelve (12) months prior to the effective date. Again, knowing the effective date of the sales contract is important here! If the special assessment being imposed after the effective date was pending, then it should have been disclosed in subsection 3(c)(i).

Subsection 3(c)(v) clarifies exactly when an assessment is considered levied per paragraph 3.

Click image to enlarge

This section spells out that an assessment is deemed levied by an association on the date when the assessment has been approved, per Florida law and the condo documents buyer is entitled to receive under paragraph 5. This definition helps both the seller and buyer determine if/when an assessment has been levied.

And the last subsection of paragraph 3, subsection 3(c)(vi), discusses association assets and liabilities, such as reserve accounts, and clarifies that those items shall not be prorated.

Click image to enlarge

Prorations of many items are covered in the main body of the contract in paragraph 18(K), so this section of the Condo Rider makes it clear that the above items are not to be prorated.

As you can see, paragraph 3(c) covers a lot of information! Wise sellers will gather this information at the onset of the listing so they can accurately complete this (and other) sections of the Condo Rider. As noted, failure to verify the sellers’ personal knowledge on any applicable assessments could result in unhappy sellers who are faced with paying an assessment in full at closing. So while taking the time to confirm information with the association could be time consuming, it may save sellers a headache at closing.

Meredith Caruso is Associate General Counsel for Florida Realtors
Note: Information deemed accurate on date of publication

Real Estate Local Market • April 26, 2023

International Real Estate Sales in Fla. = $15.3B (April 2023)

by Gina Larouche

International Real Estate Sales in Fla. = $15.3B

ORLANDO, Fla. — Florida remained the top destination of foreign buyers purchasing U.S. residential real estate in 2022, with 24% of all foreign buyers who bought residential property in the United States, according to the 2022 International Transactions in U.S. Residential Real Estate report from the National Association of Realtors® (NAR).

Florida Realtors®’ latest report, the 2022 Profile of International Residential Transactions in Florida, finds that international sales accounted for $15.3 billion, up 20% from $12.3 billion in 2021.

Florida’s foreign buyer residential purchases (non-commercial) between August 2021 and July 2022 rose 5% compared to the prior 12-month period, according to the report. The combination of higher sales and rising prices also resulted in the higher dollar volume as well.

A slight rebound in sales activity in 2022 marked progress as the world continued to recover from the pandemic. Exacerbated by the war in Ukraine, supply chain issues continued to drag on the global economy despite a stronger domestic recovery.

Florida remains a bargain compared to many other options for international buyers looking to purchase in the United States, but competition for property remains strong and offers few discounts. However, higher sale prices, inflation and lack of inventory continue to constrain the purchase power of buyers of any origin: 49% of the survey respondents cited cost and 38% cited property availability as reasons for not finalizing a deal in 2022.

Visitors to Florida from abroad – often a precursor to their long-term purchase decision – have been rebounding since travel restrictions evaporated in November 2021. In 2022, 92% of foreign buyers visited Florida before purchasing, up from 89% the year before and back to the historical trend.

South America and Canada continued to lead the pack of international visitors in 2022. These same groups also translate into buyers, with 45% of Florida’s foreign buyers coming from Latin America/Caribbean areas and 21% coming from Canada.

Despite a slight decline in the number of Canadians buying residential property in Florida, the value of what they buy is increasing, and it pushed them to the top spot with $1.7 billion in sales in 2022. By comparison, Brazilian buyers, the second largest group, purchased $486 million.

South Florida remains the preferred location for international business. While foreign buyers purchased property across the state, most foreign buyers were concentrated in six metropolitan areas:

Miami-Fort Lauderdale-West Palm Beach (53%)
Orlando-Kissimmee-Sanford (10%)
Tampa-St. Petersburg-Clearwater (8%)
North Point-Sarasota-Bradenton (6%)
Cape Coral-Fort Myers (6%)
Naples-Immokalee-Marco Island (3%)

Additional highlights:

Median sale price of a Florida home purchased by a foreign buyer: $462,000 in 2022 compared to $347,300 in 2021.
The median price among foreign buyers was 22% more than the median price of all properties sold in Florida between August 2021 and July 2022.
10% of foreign buyer sales sold for $1 million or more, compared to 6% in that price range in 2021.
Latin American and Caribbean buyers accounted for 45% of Florida’s foreign buyers, followed by Canadians (21%), Europeans (18%), then Asia and Oceania (7%) – 8% of respondents did not identify the regional origin of the foreign buyer.
Most foreign buyers in Florida – 69% – made an all-cash purchase, compared to 44% of U.S. foreign buyers.
72% purchased residential property for a vacation home or investment rental.
Slightly more than half of foreign buyers in Florida purchased detached or attached single-family homes (52%), lower than the 74% share among all U.S. foreign buyers.
43% of Florida’s foreign buyers purchased in a central city or urban area, up from 34% in 2021; nationally, 29% of all U.S. foreign buyers purchased property in a central city or urban area.
In 2022, 92% of foreign buyers in Florida visited the Sunshine State at least once before making a purchase; it was 89% in 2021.

Florida’s Realtors’ interaction with international clients

In 2022, 34% of Florida Realtors’ respondents worked with an international client – the same share as in 2021; nationally, the share of Realtors who worked with a foreign client was 17%, up from 15% last year.
27% of those who worked with an international client reported a decrease in their international business.
45% expect an increase in their international transactions in the next 12 months – down slightly (52%) from last year’s survey.
69% of Realtors reported no significant issues working with international clients.
Of the Realtors surveyed, nearly one-third (31%) were born in a country other than the U.S., and 40% were fluent in a language other than English.

The 2022 Profile of International Residential Transactions in Florida report presents information from Florida Realtors members regarding residential transactions with international clients closed during the 12-month period of August 2021 – July 2022. This annual report is conducted to assess international investment trends in Florida residential real estate, including sales volume, characteristics of foreign buyers, and challenges and opportunities inherent in cross-border transactions.

Source: Florida Realtors

July 2023 RASM Stats for Sarasota & Manatee

Why Focus on Radon? It Can Lead to Cancer

20 Ways to Save Money on Homeowners’ Insurance

NAR’s 2023 International Sales Report: 23% in Fla – JULY 2023

NAR’s 2023 International Sales Report: 23% in Fla.

By Kerry Smith

Top foreign buyers

Florida still top state for international transactions

Other take-aways from NAR’s report

Gov. Signs 3 Property Insurance Bills into Law – JUNE 2023

Gov. Signs 3 Property Insurance Bills into Law

My Safe Florida Home program

Citizens Property Insurance and more

Insurer accountability

Senate Bill 264 – Interests of Foreign Countries – May 2023

Out-of-Town Moves Didn’t End with Pandemic – April 2023

Out-of-Town Moves Didn’t End with Pandemic

Top 10 move-to U.S. metros, 1Q year-to-year

Top 10 move-out U.S. metros, 1Q year-to-year

Florida insurance policyholders hit with 1% emergency ‘assessment’ fee – April 2023

Florida insurance policyholders hit with 1% emergency ‘assessment’ fee

1% emergency ‘assessment’ to be collected to cover costs of claims

What’s ‘Special’ About Special Assessments? April 26, 2023 by Meredith Caruso

What’s ‘Special’ About Special Assessments?

Subsection 3(c)(i) reads as follows:

Let’s move on to subsection 3(c)(ii), which states:

Subsection 3(c)(iii) says:

Subsection 3(c)(iv) discusses what happens if a special or other assessment is imposed after the effective date and states:

Subsection 3(c)(v) clarifies exactly when an assessment is considered levied per paragraph 3.

And the last subsection of paragraph 3, subsection 3(c)(vi), discusses association assets and liabilities, such as reserve accounts, and clarifies that those items shall not be prorated.

International Real Estate Sales in Fla. = $15.3B (April 2023)

International Real Estate Sales in Fla. = $15.3B

Home

Properties

About Me

About Me

Neighborhood News