Fort Myers River District

Downtown area renamed

The Downtown area of Fort Myers along the Caloosahatchee River has been formally named the "River District." The goal of the new name is to accentuate the positive riverfront location and bring more people and businesses to the area.

The new River District logo released by the Fort Myers Redevelopment Agency is both catchy and visually attractive. I applaud Don Paight and his team at the Redevelopment Agency for recognizing the importance of segmenting the area around the river from the greater downtown.

If you are interested in living in the River District, your condo options include: Alta Mar; Beau Rivage; High Point Place; Palm Beach Landings; Point Royale and St Tropez.

For a single-family home in the River District, consider the lovely Dean Park Historic District.

Downtown Fort Myers no longer exists [NBC-2]
Downtown FM now 'River District' [News-Press]

Estero community planned

Residential market in Estero healthy

Newport Bay Corporation has proposed an 820 home golf course community in Estero called Monte Cristo. The 396-acre site is located on the south side of Corkscrew Road 2.5 mile east of 1-75. Previously Newport Bay developed Fairwinds, the upscale single-family community located within the Bonita Springs Golf & Country Club.

This section of Corkscrew Road in Estero is home to several other upscale gated communities including: Wildcat Run, Stoneybrook, Grandezza and Bella Terra. What a great area to call home in Southwest Florida.

SW Florida submarkets key to determining growth [News-Press]

Real estate auction option

Auctions growing in popularity

The depression era stigma of a real estate auction has faded from the collective memory of our nation as more homeowners are utilizing them to sell property.

This Tuesday, a home in the upscale Estero neighborhood of Grandezza is being auctioned by Zionsville, Indiana-based Luxury Auction Group. The fax-based auction utilizes a bidding process like auctions on e-Bay.

Auctions are a great vehicle in a booming market to drive prices upward with competitive group dynamics. Not sure that it is the right approach in a slow market, what could be worse than having an auction and have no one show up to bid? A recent Marco Island real estate auction proved to be a real bust.

Home sellers turn to auctions to expedite turnover [News-Press]

Mercedes Homes gets creative

Goal: Sell 96 homes in 96 hours

Give Melbourne based builder Mercedes Homes credit for creativity, they have set a goal for this weekend to sell 96 homes in 96 hours. Mercedes is advertising that buyers will save over $7 million as a result of this promotion. This equates to an average savings of $73,000 per house.

Locally, Mercedes Homes is active in Gateway at Daniels Preserve and in Cape Coral with models on Cape Coral Parkway and Burnt Store Road South. Mercedes recently sold out at Tropical Cove, a 35 home development in Fort Myers on Winkler Extension south of Summerlin.

Sales goal: 96 homes in 96 hours [Orlando Sentinel]

Cape Coral triple lots

Over-sized lots offer flexibility

Approximately 10 percent of the residential lots for sale today in Cape Coral are over-sized "triple" lots. Triple lots are a better investment as there are fewer available throughout the city.

Triple lots measure 120 ft wide by 125 ft deep and are approximately one third of an acre. The standard "double" lot measures 80 ft wide by 125 ft deep and is approximately one quarter acre. The genesis of this double and triple lingo dates back to the early days of Cape Coral when Gulf American Corporation was originally marketing the project. Often the triple lots were an upsell by Gulf American to willing customers.

The extra width provided by a triple lots allow for a bigger home or a larger three car garage. Homes with extra square footage and bigger garages are certainly sought after in Cape Coral. If you are considering acquiring a triple lot, well priced options include:

• 1900 Chiquita Blvd. N - off-water lot in Unit 53 for $64,900
• 1803 29th Ter. - gulf-access canal front in Unit 71 for $249,850

Affordability gap

Lee prices have outpaced earning power

A News-Press article addresses the ongoing challenge for many to buy into the real estate market here in Southwest Florida.

The median housing price of $280,500 (down from $287,200 in January) may seem affordable to those living in the Northeast or along the East coast of Florida. Unfortunately the average Lee County wage earner can only afford a home just slightly over $200,000.

In my view, the lack of quality jobs is a much bigger challenge for the region than the price of housing. I truly believe that we have one of the more under-employed work forces in the country. The percentage of Southwest Floridians involved in the housing industry is staggeringly high. In places like Lehigh and Cape Coral the major industry is residential home building.

What can be done to improve the quality of jobs in the region? Well certainly the ongoing developments at FGCU and Ave Maria University are a good place to start. Inevitably some of the shining stars will elect to stay in the area and start businesses. In the past, our best and brightest have been lured by the riches associated with the real estate boom here in Florida.

The current slowdown in the housing market will also drive the development of commercial projects. Today, even if a company wanted to relocate to the region, they would be challenged to find suitable space. Hopefully our elected leaders can be effective at steering developers towards commercial development. I would much rather see the local governments investing in infrastructure to support quality job growth rather than rather than residential or retail growth.
Falling home prices yet to hit buyers' reach [New-Press]
Cape's affordability questioned [News-Press]
Cape planners have big visions [News-Press]

Rock & roll real estate

What if Rolling Stones relocated to Fort Myers?

Did you hear the news that rocker Rick Derringer of "Hang on Sloopy" fame is now a Realtor in Sarasota. Derringer has recorded with Jimi Hendrix and Steve Ray Vaughn and once toured with the Rolling Stones. We wish Rick well in this new endeavor and I will think of him trolling the MLS every time Sloopy plays on my iPod. (yes, I really have Sloopy on my iPod)

One thought that came to me while reading about Derringer was what if the Stones decided to move to Ft. Myers and wanted me to find them new homes. Do we really have inventory here on the Gulf Coast to satisfy the real estate cravings of Mick Jagger, who has recently been house hunting with girlfriend L'Wren Scott in the upscale West London neighborhood of Barnes.

For Mick and L'Wren the choice is fairly obvious to me, a Gulf Harbor Mansion, owned by former WCI CEO and current Ambassador to Portugal Al Hoffman might just do the trick. The seven bedrooms and nine baths spread across 13,233 sq. ft should provide plenty of room for the extended Jagger clan. A potential negative to Mick is that this home hosted a political fundraiser for "W" a few years ago. The asking price a cool $17M.

When I think of Keith Richards, Ft. Myers Beach is about the only place around here where I could even remotely imagine Richards living. This bay front Flamingo Harbour Mansion has a one-of-a-kind post-modern style that just might appeal to Keith's unique sense of style. I can visualize Keith floating in the quarry stone pool with a cigarette in one hand and an icy cold beverage in the other. The $3.195M asking price should be pocket change for Richards.

Ronnie Wood is a natural for urban living. I initially thought of a penthouse on the river, but couldn't find the right right one. Well maybe Old Fort Myers along the river is the place for Ronnie. This beautifully renovated home on Valencia Way was constructed in 1926 and features 116 feet of river frontage. The Mediterranean-styled exterior should certainly appeal to Wood and invoke memories of his partying days at his pad on the Spanish Island of Ibiza. This home is listed for $2.999M.

Charlie Watts just looks like a Cape Coral guy, the gray hair and conservative clothing would allow him to blend in and have a real sense of anonymity. For Charlie the best fit would be a luxury condo at Tarpon Landings, a high-end gated community. Each unit has a private elevator and a minimum of two private balconies offering views of the marina and Caloosahatchee River. Tarpon Landings units are on the market for $3.559M.

Rocker Takes Up Realty [Tampa Bay Online]

Harvard Study: No bust

Only moderate slowdown predicted

The latest State of the Nation's Housing report from Harvard University's Joint Center for Housing Studies suggests that we will only have a moderate slowdown rather than an all out bust of the housing market.

While interest rates and rising energy costs are putting the squeeze on many Americans, According to the Harvard Study:

the housing sector continues to benefit from solid job and household growth, recovering rental markets, and strong home price appreciation.

Certainly we are not seeing any appreciation in the Southwest Florida market right now. In fact, across the board price reductions are the entree de jour on the menu these days. On a national basis, I do agree with the solid job growth....although job growth in the real estate and development centric Southwest Florida market will lag more diverse job markets.

The State of the Nation's Housing 2006 [Joint Center For Housing Studies]

Rent to own

Lease option deal goes south in Cape

A lease option or rent-to-own arrangement can be a great method for property sellers and buyers to connect. Often this method is utilized by buyers with poor credit or an income that doesn't qualify for traditional financing.

A recent News-Press article detailed the difficulties experienced by a Cape Coral family in completing a rent-to-own transaction with Affordable Property Management Inc., a rent-to-own housing company owned by businessman Riyad (Rod) Khleif of Venice.

Gulf Returns previously commented on Mr. Khleif's activities last October when an investigation was launched by Florida Attorney General Charlie Crist. Hopefully justice will prevail for all those who have been harmed by this unscrupulous operator.

Rent-to-buy deal puts family in a bind [News-Press]

Cape Coral waterfront under $100K

Many affordable waterfront lot options in Cape Coral

Thinking of someday retiring in beautiful sunny SW Florida?

With the recent market slowdown, waterfront vacant lots are now within reach of many more buyers. In Cape Coral, many excellent waterfront vacant land options are available in the $70,000 to $80,000 range. Buy it now to lock in a great price and build down the road when you are ready.

We can guide you to the best lot to meet your short-term budgeting and long-term retirement needs. Please don't hesitate to drop us a note and we can help you locate the ideal lot.

Cape Coral 5 bedrooms

Three bedroom homes dominate market

Pop quiz: What is the toughest type of property to find in Cape Coral?

Answer: Five bedroom homes

In a city of 155,000 residents, there are currently only 41 single family homes on the market with 5 bedrooms. With 4,700 total single family homes currently for sale, five bedroom homes comprise less than a tenth of a percent of the total market.

Three bedroom homes dominate the market at nearly 74 percent. Much of this shortage of larger homes can be attributed to the quarter-acre lot size that is so dominant in the Cape.

There is some hope for larger families and two newer deed-restricted gated communities are catering to those needing five bedrooms. Coral Lakes, a 370 acre subdivision located in Northeast Cape Coral on Del Prado Boulevard extension, currently has several five bedroom homes available. These five bedroom homes in Coral Lakes range in price from $349,000 to $539,000.

Another option is Heatherwood Lakes, a modern master planned gated community located in Southwest Cape Coral on SW 20th Avenue, north of Veterans Parkway.
Heatherwood Lakes has five bedroom homes available ranging in price from 364,900 to $525,000.

Mastique Fort Myers

Upscale high-rise resort living

One of my favorite locations in Fort Myers is Mastique, located in South Fort Myers close to the Sanibel Causeway. Mastique is a private, gated community overlooking Lake Mastique, a 25 acre, 35 foot deep lake.

The views of Sanibel and the Gulf of Mexico from the 20 story high-rise towers at Mastique are breathtaking, especially while the sun is setting in the evening. This development caters to those seeking privacy with only four residences per floor and two penthouses per tower.

At this time 23 units are listed for sale at Mastique, ranging from $649,000 for a 3 BR, 2 BA unit on the 8th floor to $2.295M for a 3 BR, 4.5 BA 20th floor penthouse. View all Mastique listings.

If you interested in learning more about Mastique, please drop me a note.

Lee 3rd for home appreciation

Fed study ranks Lee County third nationally

The latest numbers from the Office of Federal Housing Enterprise Oversight's(OFHEO), Home Price Index ranks the Cape Coral-Fort Myers Metropolitan Statistical Area (MSA) third nationally for home appreciation for the 12 month period ending March 31, 2006.

The appreciation rate in Lee County was 36.9 percent for this period and topped only by St. George, UT at 38.4 percent and Naples-Marco Island 37.73 percent. The national average appreciation rate for the year was 12.5 percent.

This appreciation ranking caught me off guard as there has been very little price appreciation over the past six months in this market. The gains are reflective of the screaming market in 2005.

1Q06 Home Price Index [Office of Federal Housing Enterprise Oversight]

Cape permits plummet

Affordability and growing inventory key factors

New housing permits dropped radically in Cape Coral last month. The 323 permits issued during May were off 26 percent from the 439 issued in April and less than half of the 724 permits issued in May 2005.

The run-up in Cape Coral lot prices over the past three years has pushed affordability beyond the reach of many first home buyers. These buyers are increasingly turning to Lehigh, where land costs are about 50 percent less than Cape Coral.

Many investors that built spec homes particularly in northeast Cape Coral are facing a challenging scenario as their outlay for land and construction is exceeding the current market value of the completed property. This issue appears particularly acute for those who started homes in the late spring and early summer and acquired the lot at the market peak.

Cape home permits plunge [News-Press]

Economist on SW Florida market

Half-full or half-empty?

Real estate and housing finance economist John Tuccillo weighs in on the the Southwest Florida housing market.

Nuggets gleamed from the column include an anticipation of limited appreciation on a going forward basis, but not a collapse due to the steady stream of newcomers to the region. Also sellers are often "the last to get it," and really need to have realistic expectations about the value of their property.

I do agree with Tuccillo on the favorable climate for continued in migration to the region. I think that a hurricane season without the calamity of the last couple would go a long ways towards reinvigorating the baby boomer growth engine. I think that way too many people up north considering retirement and a move to Florida still have those images of New Orleans and Katrina floating around in their heads.

Where's housing market going? [Herald-Tribune]

Foreclosure investing

White night or shark?

Depending on your perspective, investors targeting properties about to be foreclosed can be viewed as white knights coming to save the day or as sharks taking advantage of a difficult situation.

The challenge for investors is sourcing the property at a price that makes sense, which is usually about 65 percent of the market value. In a sluggish market like we have here in Southwest Florida, the stakes are certainly higher as hold times increase.

The net-net in many of these scenarios is that a coat of paint and some basic landscaping can go a long way towards attracting buyers.

Investors become 'white knight' in cooling home market [News Press]

Lee valuations up 38 percent

Lee County taxable property base is now $88.2 billion

Over the past year, Lee County realized the largest ever valuation increase in its base of taxable property. The increase of 38% from $64 B to $88.2 B is mighty significant. The 84 percent increase in valuation in Lehigh from $4.3 B to $8 B is staggering, and due for a rebound south over the next year.

Hopefully those responsible for setting municipal and county budgets will make appropriate reductions to the millage rates to alleviate the burden on us common folk writing the checks.

Property values up, tax rates down? [News-Press]