Our April Newsletter

“No one wants to catch a falling knife.”

As we drove around looking at property, this was the philosophy one Canadian shared with me regarding
his take on the average buyer. “Once it clangs on the floor, everyone will know it has hit bottom and then everyone
will scramble to buy." His own strategy was different. He was not about to wait. Even though he was unsure if
further price declines were to come, he had a fantastic selection of homes to choose from and he knew he was
getting a great price not seen since 2003. He bought. But there is another potent case for buying now.
Finance costs will rise as the economy recovers, so trying to time real estate might not pay off.
Consider this example. A $500,000 Siesta Key condo purchased today, with 20% down, leaves $400,000
financed at about 6% over 30 years. That's a monthly P&I payment of $2,398. If prices drop an additional 10%, the
cost of this condo next year is $450,000. But when the recession ends and the Fed starts to raise rates to say,
7.5%, your monthly payment would be $2,517. If you waited a year to buy, you would have saved nothing and
spent one less year in your beach side condo.
When prices are falling, few people have the discipline to buy stocks, a house, art or any other asset. But
those who do pull the trigger excel in the long run.

What's with all those headlines ?

Considering all of the negative press the housing market received in late 2007, it's more important than
ever for people to separate fact from fiction when deciding on a time to buy or sell a home. The fact is, we were
due for, and are now experiencing, a natural cyclical correction. The recent "housing boom" which lasted from 2001
until 2005, was caused by low interest rates and a rapid increase in property valuations. This combination
prompted a high sense of urgency in home buying and selling. Poor lending practices, which caused many home
buyers to secure loans that they ultimately couldn't afford, also fueled the fire. Finally, and possibly the biggest
culprit here locally, speculative purchases of homes by investors hoping for a quick return on investment took us
over the top.
But are these problems so deep that recovery is years away ? Actual facts and history say no.
Let's start with lending practices. Unlike the media's portrayal, the reality is that subprime loans comprise
only 9% of total loans nationwide and of those 9%, less than 11% of those subprime ARM and fixed borrowers
have defaulted on their loans. Problematic, yes. Of epidemic proportions, no.
As for speculators, like the dot-com bust, the housing market has begun to correct itself after a number of
years of unwise purchasing. But unlike what the media would have us believe, a correction in the housing market
doesn't equate to a crash. The ongoing negative news about the most troubled areas in the U.S. has caused a
ripple effect, with home buyers and sellers on a national level exercising caution before making a decision.
What we are seeing now is a repeat of a housing cycle we've seen before. In the early 1980's and 1990's
some areas of the country experienced the worst downturn they had seen in the last 25 years. It was caused by
localized economic weaknesses and a loss of jobs. But on a nationwide average others, like the Pacific Northwest,
were barely affected at all. Even those areas hit the hardest in the past experienced a historic uptick in prices, and
then a continuing long term appreciation trend followed.
It is our belief that we in Sarasota are actually positioned quite nicely. According to the latest statistics -
issued the last week of March by FAR - Sarasota-Manatee once again outsold such mega-markets as Miami and
Ft. Lauderdale, building on a solid trend that held throughout every month of 2007 and continues thus far into
2008. We simply need our inventory of homes and condos to decline to more acceptable levels.
The avalanche of east coast baby boomers on the horizon may well be the cure for our local recovery.

Lawmakers will look at more tax cuts in 2008.

On January 29, 2008 Florida Voters approved Amendment 1, which made significant changes to the Florida
Constitution regarding property tax laws. These include an additional $25,000 Homestead exemption, and
portability of the Save Our Homes benefit. (Although too detailed for this newsletter, feel free to e-mail us for a 3
page recap of the specifics of all changes.) Governor Charlie Crist, top lawmakers and other backers promised it
would be just the start of property tax relief. Let's hope so. For non-homesteaded owners the government put a
modest 10 percent cap on annual assessment increases. That's not enough to satisfy out of state owners who saw
their tax bills increase the most due to sharp rises in property values in recent years. The Sarasota Association of
Realtors (and all similar associations in Florida) will continue to press for true relief for the second home/vacation
type owner. It will happen. We will keep you updated.

Patrick Doherty, Joe James, Michael James, Maureen James Doherty
April 2008
Michael, Joe, Maureen & Patrick
James Brothers Real Estate Team
Realtors
info@jamesbrothers.com
www.JamesBrothers.com
(your on-line resource)
Local: 941-993-6443
Toll free: 1-888-755-2637

Longboat Key Club Announces $500 Million Expansion

Owners of The Longboat Key Club and Resort announced yesterday that they have plans to invest $500 million into an expansion of its current facilities, including an 18-hole golf course designed by world-renowned Rees Jones. The addition of 222 new hotel rooms, 261 new condominium residences, luxury waterfront villa residences, a wellness center and a country club complex enhance the resort's luxury appeal and potential for a five-star rating.
The mixed-use resort will showcase the modern designs inspired by Sarasota School of Architecture and more native trees, preserving Longboat Club Road's live oaks, will enhance the property's natural beauty.
According to economist Hank Fishkind, the development plan contains serious economic ramifications for the community, including an estimated 600 jobs, an increase of $60 million expected in total impact to Longboat Key per year, a 7-12% home value market appreciation and a cumulative net of $1.4M operating surplus for the Town of Longboat Key and $24 million in fiscal surplus. “The upside of the project to homeowner values is one of the considerations,” says Longboat Key Club general manager Michael Welly. “Our neighbors will benefit from that. If we don’t do a project and the club continues to mature, at some point property values start to go down.” The four phase project aims for a completion date around 2014.

Sarasota Boating Real Estate

The Boat yard consists of 21 units on the mainland just before you go over the Stickney Bridge to Siesta Key. For Boaters this location is convenient with no bridges to the Bay and you can be close to Siesta Key without being on it.....No bridge traffic.
Walk to Coasters.
It is all about location.
These condos come with a boat dock. They all have garages. It is gated with a pool .
They are beautifully updated and decorated to the max.....they come furnished.
If you are a boater looking for mainland .....check out our web site to view these listings in the Boatyard. www.jamesbrothers.com
Go to our features listings.
And if you are not a boater...the units are available without the dock for a discounted price.

There are home deals on the waterfront

The one thing that some buyers are not getting is the fact that if they really want a property but don't like the list price they can always make an offer.
We are seeing so many properties go to contract with the sellers conceding to the buyers offers.
If you want to learn more we suggest you call us at 1888-755-2637 or locally at 941-993-6443
Don't miss out on a wonderful opportunity.
SARASOTA'S real estate market is unique and has been rated the best in all of Florida for real estate sales ! If you live by the news you might lose out....in our market anyway.
.....find out more............contact us..........

Our web site is an excellent way to view homes or condos for sale.

http://www.jamesbrothers.com/