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Island real estate sales bouncing back

BY MARCY SHORTUSE - Real estate activity seems to be on an upswing in the first quarter of 2010, with several local Realtors already noticing a difference.

According to the Florida Multi Listing Service, in the first quarter of 2009 two home sales closed on the island. The second quarter produced 14 home sales and the third quarter had nine. Only seven homes were sold in the fourth quarter.

Already this year, eight contracts have closed and 11 sales are pending on the island, and two vacant lot sales are pending.

Kelly Reark, a Realtor with Gasparilla Properties Inc. started doing the numbers for herself and she realized that the market seemed to be trending toward an increase. The numbers for 2010 have made her comfortable in the fact she can be more confident with her clients.

“When I get a walk-in to our office with the familiar question, ‘So how’s real estate been lately?’ I can answer with facts that will really grab their attention,” she said. “It lets them know that the sky is not falling and quiets the ‘Chicken Little’ response they were expecting. It puts them on track to look at property with the mindset that I want them to have.”

In Boca Grande 35 homes sold in 2009, compared to 41 properties closed in 2008. Reark said the total dollar volume for homes under contract and with closed contracts already tops 75 percent of what the total was in 2009.

“Many of what I considered to be our ‘best deals’ have gone under contract,” she said. “With a market area as small as mine, it only takes a few sales to drive up competition once again.”

Donna Moore, owner of Gulf-to-Bay Sothebys and a broker herself, said she is a witness to the upswing as well.

“We just got new figures in, and we have 13 pending sales for the first quarter so far,” she said. “The ranges are across the board, from Boca Grande Club properties, Grande Quay, Damfiwill … it’s pretty random.”

Ralph DiLena, a broker with Boca Grande Realty Inc. said their business starting picking up in December.

“Our first indication this year is that people seem to have more interest,” he said. “Last year we showed a lot of properties … but showings didn’t translate into sales. Our season last year was pretty dismal, compared to historic figures on the island. We started to notice a difference even around Thanksgiving, always a little bit of an increase but it kind of felt a little bit different.”

All Realtors reported an increased interest in the larger dollar amount homes as well.

“Of the homes sold, the median price was right at $3 million,” Reark said. “Only one pending listing and one sold property went for under a million.”

One factor that might come into play with the market’s more positive outlook is that some sellers are becoming more conscious of the fact they may have to lower their asking prices.

“Selling a property quickly for the right price will net a higher dollar value than trying to achieve a higher listing price than what the market can handle,” Reark said. “I also recommend preparing the property to show in its best possible condition. Remove, change, or add things as needed, and make the property available for every showing that the agent can arrange for. There is a lot of inventory for a discerning buyer to choose from.”

One of Moore’s clients did just that.

After purchasing a beachfront home, the owner even had plans approved for a renovation/demolition project, making an even more attractive real estate package for a prospective buyer.

“Some people have lowered their prices, and buyers still expect to negotiate, but I would say it’s certainly not the same as it was last year. When there’s more buyers looking at properties, like there seems to be now, there will be fewer homes available on the market. We haven’t even hit March yet.”

DiLena said some island sellers need to look at lowering the asking price on their homes or be left out in the cold.

“The sellers who are going to sell their homes are realizing that lowering their prices are going to be inevitable,” he said. “The ones who don’t are facing a stalemate.

Reark said she believes that the Boca Grande market is pretty consistent, every sale is different and each owner sells for a different reason.

“It is difficult to pinpoint exactly what is causing the increase in sales for Boca Grande,” she said. “National news headlines report a shaky economy and high unemployment rate. They also report that housing recovery is slow, but buyers are benefiting from tax incentives and excellent mortgage rates to those who can qualify for them.

“Boca Grande is different from the larger market picture. Here, in an area of affluent people where most deals are cash, my view is that the combination of lower prices on island property, relatively stronger currency exchange rates, and strengthening U.S. markets through the past year all play into the picture. The interesting thing will be to see where it goes from here.”

The Republican National Committee was left scrambling for cover Thursday after a political web site published a “confidential” document outlining the GOP’s fundraising strategy designed around “fear” and “socialism.”

The presentation was delivered on February 18 by RNC officials meeting at the Gasparilla Inn & Club.

“Politico,” the web site that broke the story, said the 72-page report “had been left in the hotel” and was provided by a Democrat who found it in a room.

But Boca Grande residents who paid $500 to attend functions held during the three-day event said Thursday getting a copy of the report likely wasn’t much of a trick.

The meeting rooms used by the Republicans featured tables “with all sorts of literature” on them.

“Anyone could have picked up a copy,” said one island resident who asked not to be identified.

Jack Damioli, president and general manager of the Gasparilla Inn & Club, said he hadn’t heard the news about the controversy.

“I’m not aware of it,” he said.

Damioli noted that the Inn was open during the GOP’s three-day event and that “we had other guests here.”

And islanders who attended events at the RNC’s winter retreat said literature was left out on tables in the empty meeting rooms.

The presentation features a page entitled “The Evil Empire,” and features caricatures of President Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid.

Obama is depicted as the Joker from Batman, Pelosi as Cruella DeVille and Reid as the cartoon character Scooby Doo.

Republicans who aren’t Boca Grande residents paid $2,500 to attend the event. The controversial presentation was made by RNC Finance Director Rob Bickhart and RNC Finance Chairman Peter Terpeluk.

It outlines the party’s strategy for luring wealthy donors, including vacations and “access” to politicians in exchange for contributions.

An RNC spokesman, contacted by Politico, sought to distance the party from the document. The spokesman noted that Chairman Michael Steele was not in the room when the presentation was made. Steele did attend the conference, however.

The spokesman called the portrayal of Obama as “unacceptable.”

But as far as the Gasparilla Inn is concerned, it’s not likely anyone from the hotel slipped the web site a copy of the report.

“If it had been found in one of our rooms, it would have been turned into lost and found, Damioli said.