A recent NY Times article titled In Defense of Home Ownership makes a strong case for home ownership vs. renting.  Four key ownership benefits mentioned in the article are:

1. Lock in Housing Expenses – Fixed rate mortgages lock-in monthly payment and don’t increase like rents do
2. Forced Savings – Mortgage payment allocated to principal is a forced savings plan
3. Landlord Headaches – Landlords are a mixed bag, particularly the ones around here that collect rent and don’t pay their mortgages
4. Neighborhood – It can be challenging to find rentals, particularly those with 4 or 5 bedrooms for a growing family, in desirable communities

Here is a resource to begin your Fort Myers home search.

A new book, Exiles in Eden: Life Aong the Ruins of Florida’s Great Recession, offering an insiders view to the Florida housing crisis is hitting the shelves this week.

The Fort Myers area is prominently covered by author Paul Reyes including a look at a mostly abandoned, upscale gated community.  A book about the housing bust would not be complete without an examination of Lehigh Acres, where the authors parents purchased a vacant lot in 1969 on the $10/month plan while honeymooning in Miami.

An insiders view of trash-outs, the process of cleaning out a foreclosed property, is covered in great detail.  Underwater mortgagees including one owing $220,000 on an $80,000 home discuss their plight in this book.

For those of us operating the in the Southwest Florida real estate market on a daily basis, foreclosures and short sales have become the norm.  Missing appliances, overgrown lawns and green pools are just part of every day life.  For someone just dipping their toe into the foreclosure market for the first time, these conditions can be quite an eye-opener.

Exile in Eden is a must read for anyone contemplating the purchase of a Fort Myers foreclosure.  The book will help provide some perspective on the perfect storm of conditions that fueled the boom and subsequent housing bust.

A huge shout-out to Coronado CA Realtors Christine Van Tuyl and Margaret La Grange for their blog post about why it is a good time to buy a vacation home.  While they were specifically writing about Coronado Island in Southern California, the fundamentals are applicable to our market here in Southwest Florida.

Here is the post written by Margaret and Christine:

Prices down 20-40% 40%-50%. In places like Coronado, CA and greater San Diego Fort Myers and Southwest Florida, you can pick up a beach cottage or high-rise condo at extremely low prices. That’s only the beginning. Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home buy.

Interest rates. Rates, of course, are at historic lows. Lock in a good rate, buy a vacation home in a desirable location, and watch your asset appreciate over the long-term.

A relatively safe investment. Real estate has proven itself to be a safe place to park your money for the long-term. (Long-term is key). Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold.

Make a profit. Or, better yet, make your vacation home pay for itself. Only planning on using your vacation home a few months out of the year? Rent it out short-term to vacationers looking for a great place to stay. Many homeowners make a killing listing their homes on VRBO.com. (Vacation Rental By Owner). When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year.

Vacation rental demand is heating up. Overall, vacation rentals are less expensive than hotel rooms, especially for longer visits and for families. Savvy travelers know this, and are heating up the demand for vacation rentals. In addition, the weaker dollar makes U.S. destinations attractive to travelers from countries with stronger currencies.

The pressure of bidding wars is off. Sure, you may not get bargain basement prices on a beachfront cottage—but you might if you’re willing to buy a few blocks away. Houses aren’t exactly flying off the shelves these days, but buyers now have less pressure to make a hasty decision. Buyers looking for deals on vacation homes can really do their homework.

Here is a resource to begin your search for a Fort Myers vacation home.

An article in the The New Brunswick Business Journal titled Becoming a snowbird can make good sense offers tips to Canadians looking to buy a second home in the US.  The article details why it is a good time to buy in the US right now and an organized approach to completing a purchase.

The Fort Myers market on Florida’s southwest coast is very popular with Canadian second home buyers.  Our climate is tropical, so chances are you are going to experience warm weather throughout your winter visit.  The beaches of Southwest Florida are beautiful and a magnet for young and old alike.

We are continuing to see heavy user traffic on our Fort Myers real estate website from Canadian users.  Last month seven percent of our website visitors were from Canada. Our team is experienced in handling the intricacies of a Canadian buyer transaction.  Here is a great resource to start your search for a second home in the Fort Myers area.

USA Today covers our local market in an article titled “Fort Myers has home bargains as market recovers from bubble.” The article cites market improvements of 121% for home sales from June 2008 to June 2009.  The article also discusses is an 18% drop in homes sales in June 2010 and attributes this decrease to the end of the home-buyer tax credit, a lapse in the National Flood Insurance Program and concerns about the oil spill.

With average home sale prices of $93,000, the Fort Myers area is steeped in real estate bargains across all sectors, neighborhoods and housing types.  Our foreclosure rates are still among the highest in the country and we are seeing a gradual shift from absentee investor foreclosures to owner-occupied home foreclosures.  Many buyers are turning to foreclosure listings to find the best deals in the market.

The stigma associated with buying a foreclosed home is fading away as distressed property transactions are currently over half the current market.  While some foreclosure listings are in tough shape and need some care, many are ready to go in move-in condition.  Here is a resource to view Fort Myers foreclosure listings.

Occupancy Rates Up and Rents are Dropping

The latest report on the Lee County rental market released by RealFacts of Novato, CA detailed shifts in our rental market for 2Q10.  Lee County apartment occupancy rates in 2Q10 climbed 4% to 90.8%, the fourth highest in the 12 major Florida markets.  Lee County rents for the same period dropped 9.1% to an average of $762/month.  This decline in rental rates was the highest in Florida during 2Q10.  The Fort Myers-Cape Coral market now ranks 9/12 in average rental rates in the 12 major Florida metro markets.

The biggest challenge for landlords in this market is the quality of tenants.  Many who have lost jobs and homes are seeking rental arrangements.  Also with our rock-bottom prices, the best qualified renters are purchasing in this environment, further skewing tenant quality.  We are seeing a significant demand for lease-to-own arrangements in this market for those who have wrecked their credit via short sale or foreclosure.  These types of arrangements may prove very attractive for investors with skinny or negative cash flow assets.

Here is a resource to view investment properties in the Fort Myers-Cape Coral market

I just read an article in the New York Times titled The Roller-Coaster Ride Called a Short Sale with great fascination.  It seems the post-bubble real estate challenges that we have been dealing with here in SW Florida for several years are now a reality in Manhattan as well. I don’t know about you, but it sure is hard for me to visualize many market parallels between the likes of Gator Circle or Gateway and Greenwich Village or Gramercy Park.

The reality of the matter is that here in Southwest Florida short sales have become “the norm” and a growing number of the real estate practitioners in the area have become very proficient at closing short sale transactions.  While only a hunch, I would bet that we lead the nation in the percentage of real estate practitioners who have successfully closed a short sale transaction.

Our regions success with mainstreaming short sales is good news for both buyers and sellers.  Sellers have hope for avoiding foreclosure and getting out from under a financially challenging ownership situation.  Buyers benefit from our current abundant inventory of short sale listings, many of which are priced at a discount to non-distressed properties.  Here is a resource for buyers to view active Fort Myers short sale listings.

With an average annual temperature of 75 degrees, Fort Myers offers year-round outdoor fun on the water for its residents.  Water skiing is a popular Southwest Florida activity and we are fortunate to have two communities with large freshwater lakes catering to water skiing families.

The Harbourage

The Harbourage features two aquifer-fed freshwater lakes which are 30 feet deep and cover 104 acres.  The lakes at The Harbourage are fronted by upscale single-family homes.  Many community residents have ski boats docked behind their homes and enjoy skiing on a regular basis.  The Harbourage is an established, gated community of 128 homes located in South Fort Myers off US-41, south of Alico Road.   Currently, two homes at The Harbourage are available for sale.

Miromar Lakes

Miromar Lakes is anchored by two lakes with 700-acres of sparkling water and three miles of sandy beaches.  This upscale Mediterranean inspired community includes single-family homes, town homes and condos.  Some homes in the community feature private docks and other residents dock their ski boats at neighborhood facilities.  Miromar Lakes is located of Ben Hill Griffin Parkway between Alico Road and Corkscrew Road.  Here is a resource to view available Miromar Lakes MLS listings.  New construction opportunities are also available.

Old Florida nature and serenity rule the day at the South Fort Myers Hendry Creek community……surrounded by creeks and anchored by two lakes, water views dominate the scenery the in this upscale community.  With just 65 single-family homes, Hendry Creek offers an intimate and welcoming environment to raise a family in South Fort Myers.  Hendry Creek offers the lifestyle of a bygone rural Florida era in a convenient in-town location.

With shared community boat docks, gulf access boating need not be an expensive proposition for Hendry Creek residents.  HOA fees at Hendry Creek are currently $500/year and include use of the shared community boat docks, community tennis courts and fishing in the neighborhoods two stocked lakes.  From Hendry Creek, Estero Bay and the white sand beaches of Lovers Key, Fort Myers Beach & Sanibel and Captiva Islands are easily accessible.

The best part about the Hendry Creek neighborhood is that all this nature and beauty is located in the heart of South Fort Myers of US-41, just one mile south of Gladiolus Drive.  Hendry Creek is located just north of prestigious Devonwood Estates and key Southwest Florida attractions including RSW Airport, FGCU and the Coconut Point Mall are all just minutes away.

Currently, three homes at Hendry Creek are listed for sale ranging in price from $249,800 – $650,000.  Here is a resource to view active Hendry Creek real estate listings.

Discover Cascades at River Hall

Fort Myers has a long track record as a popular vacation destination for snowbirds and retirement area for active adults.  We are fortunate that real estate developers have recognized this ongoing trend and have purpose-built communities to meet the needs of active adults.  The Cascades at River Hall is a Fort Myers area community dedicated to 55+ active adult lifestyles.

Cascades at River Hall features single-family homes designed with open floor plans and primarily single-level living.  Nature enthusiasts will treasure the water and preserve views that are available from every home in the Cascades community.  Walking throughout the community, which is wrapped by farms and environmentally protected land offers an ever changing palette of Southwest Florida nature and beauty.

The master-planned River Hall community features a championship golf course designed by Davis Love III.  Cascades residents can join the golf club or if they prefer use the course as a guest.  The full-service golf club includes a pro shop, locker rooms, club grille and professional staff.

The River Hall town center is bustling with activity and offers residents the opportunity to visit with old friends or meet new ones with similar hobbies and interests.  River Hall amenities include pools, fitness center, trainer, basketball, tennis, snack bar, social hall and a party pavilion.

Located on SR 80, 6.2 miles east of I-75, Cascades at River Hall offers access to RSW Airport, FGCU, Germain Arena and the shopping, dining and entertainment at the Gulf Coast Town Center while avoiding the  congestion of the US-41 corridor.  Neighborhood shopping is conveniently available at the Shops at Verandah which offers: Publix; Walgreens, banking, beauty salon, pizza/pasta and dry cleaners.

Here is a resource to view active Cascades at River Hall MLS listings.  New construction options are also available at Cascades at River Hall.

Boaters Attracted to McGregor Boulevard and Iona Road Communities

The most expensive and sought after real estate in Fort Myers is located along the Caloosahatchee River in South Fort Myers.  This area includes neighborhoods located off both historic McGregor Boulevard and Iona Road.  Both of these streets both run parallel to the river and are dominated by residential waterfront communities on their river-facing, west sides.

McGregor Boulevard, which is lined with majestic royal palm trees, was home in the roaring 1920s to our original snowbirds…..Henry Ford, Thomas Edison and Harvey Firestone.  Today, 90 years later, it is still home to prominent snowbirds as well as many of the movers and shakers of our community.  The McGregor Boulevard communities of Palmetto Point, Gulf Harbour and the Palms of McGregor are luxury waterfront neighborhoods.  Old Fort Myers offers history lovers a chance to own a period house from the days of Edison, many of which have been wonderfully restored.   Boating enthusiasts are drawn to the popular riverfront communities of Caloosa Yacht & Racquet Club, The Landings and Town & River.

The western side of Iona Road is also lined with riverfront communities and is a very popular area with boat and yacht owners.  This area offers very quick, unrestricted access to the open waters of the Gulf. Luxury boating communities along Iona Road include Jonathan Harbour, St. Charles Harbour and Connie Mack Island.  Upscale Iona Road communities offering outstanding boating opportunities include Catalpa Cove, Harbour Isle and Intracoastal Harbour.

South Fort Myers Membership Optional Golfing Community

Pulte Homes announced that it has sold the club at Crown Colony Golf and Country Club to its members.  Development of this prestigious south Fort Myers golfing community was competed by Pulte in 2006.  Crown Colony is located in south Fort Myers  on Winkler Avenue Extension off Summerlin Road and sits on a 403-acre site.

Crown Colony features a private championship course designed by Ron Garl that plays 7,013 yards, par 72.  Both golf and social memberships are available at Crown Colony and membership is optional.  The club also welcomes non-resident members.

Housing options at Crown Colony include carriage homes and single-family homes.  At present 26 homes are currently available for sale ranging in price from $175,500 to $795,000.  Here is a resource to view active Crown Colony real estate listings.

The News-Press reports that WCI Communities is back with gusto from the brink of extinction following a chapter 11 reorganization.  Near-term plans call for the construction of five new spec homes at Pelican Preserve,  55+ active-adult master-planned community in Fort Myers.

Located in the Colonial Boulevard corridor, Pelican Preserve is recognized as the premier 55+ community in the greater Fort Myers area.  An endless list of amenities including a Chip Powell designed golf course, town center, theater and butterfly garden are  popular draws at this community.

A wide-range of housing options are available at Pelican Preserve including condos, carriage homes and single-family homes.  At present, 36 homes are available for sale at Pelican Preserve ranging in price from $124,800 to $869,500.  Here is a resource to view Pelican Preserve active listings.

The minnpost.com has a story about a recent speech given by housing researcher John Mcllwain titled, “The Suburban Century is Over.”  Mcllwain predicts a shift in American housing and lifestyle preference away from the white picket fence suburbia towards a more urban lifestyle.

In TV terms the wonderful suburban neighborhoods of Leave It To Beaver, The Brady Bunch and Bewitched are fading and the urban lifestyles of the Odd Couple, Mary Tyler Moore and Frazier are coming of age.

What does this mean for the Southwest Florida and the greater Fort Myers area?  While no one is ever going to confuse Southwest Florida with the Upper West Side, we do have some really dynamic urban areas like 5th Avenue in Naples.  In recent years, a handful of urban-oriented projects have been developed or renovated that address this shifting lifestyle demographic.

Developments in the Fort Myers area offering an urban lifestyle experience include:

High Point Place – Riverfront high-rise in downtown Fort Myers walk to restaurants, Publix, Starbucks, offices, parks, theatres and museums.

Residences at Coconut Point – Condos located on the upper-levels of the Coconut Point Mall which has emerged as the destination in South Lee County.

Rapallo – Gated condos and villas adjacent and very walkable to the dynamic Coconut Point Mall

Cape Harbour – Waterfront boating community with vibrant boardwalk featuring restaurants, retail and community events.

Patio De Leon – Downtown Fort Myers renovated historic condos located above commercial space.

Earnhardt Condominiums – Downtown Fort Myers renovated historic condos located above commercial space

When the market turns and development starts up again, it would sure be wonderful to see more project like these completed rather than starter homes on random 1/4 acre plated lots in the hinterlands.

When we discuss Fort Myers area real estate options with prospective clients, the number one desired feature is “a location close to the beach.”   When drilling down further about what beach the client wants to be near, most answer near the Sanibel beaches. The proximity to Sanibel feature trumps all other popular desires including newer, good neighborhood, gated, gulf access, waterfront and low condo/HOA fees.

One of the questions that comes to mind when discussing proximity to Sanibel is exactly what constitutes a location as being close to Sanibel?  I was recently looking at a listing located off Colonial Boulevard near I-75 and it was described as being “close to Sanibel.”  Per Google Maps, the fastest route between I-75/Colonial and the Sanibel Causeway is via McGregor Boulevard with a distance of 16.5 miles and a driving time of 30 minutes.  Unless this listing agent owns a helicopter or has access to George Jetson’s aerocar, this close to Sanibel label seems like a bit of a stretch to me. Whatever the case, I wouldn’t want to ride my beach cruiser in a pair of flip flops from Colonial Boulevard to Sanibel!

There are a number of South Fort Myers developments that are close to Sanibel and are available in a wide-range of housing options from luxury high-rises to single family homes in a gated communities.  For the purposes of defining “close to Sanibel,” I am going to include developments from where the average baby-boomer could easily ride a beach cruiser in a pair of flip flops to the Sanibel Causeway Beach.

Here are Fort Myers communities that are truly close to Sanibel:

Boating: Catalpa Cove; Connie Mack Island; Jonathan Harbour; Palm Acres; St Charles Harbour
Condo/Town Homes: Lucaya; Sanibel View
Golfing: Kelly Greens
High-rise Condo: Mastique; Punta Rassa Condos; Sanibel Harbour Towers
Single-family: Caloosa Creek; Colonial Shores; Shenandoah

To ease your home hunting process, here is a resource which consolidates all the active close to Sanibel listings.

The Naples Daily News reports that year-to date sales have exceeded $43M in the upscale Miromar Lakes waterfront community.  New homes sales are leading the surge as more than half of the sales this year have been new construction.  At the current pace Miromar Lakes is on target for more than $80M in property sales in 2010.

Miromar Lakes is a 700-acre luxury community featuring 22 distinct neighborhoods with estate homes, single-family homes, coach homes, villas and condos.  The centerpiece of the community are a pair of  aquamarine freshwater lakes offering over three miles of private sandy beaches.  Miromar Lakes residents enjoy in-lake swimming, water skiing, fishing, boating and sailing in this resort-like community.

At present there are over 50 homes for sale at Miromar Lakes ranging from a 8,392 SF estate home in the Castelli neighborhood listed for $4.995M to 2,160 SF coach home in the San Marino neighborhood listed for $239,000.  Here is a resource to view Miromar Lakes real estate currently available and listed for sale.

After a several year post-boom hiatus, the sound of nail guns and tile cutters is permeating the air at several Fort Myers area neighborhoods.  New construction is occurring at several neighborhoods across the region.  In many cases, builders are pricing new units to aggressively compete with the existing inventory of distressed property.  Some builders are also clearing out bubble-era unsold inventory at fire sale prices.

Buyers are benefiting from the aggressive incentives that builders are offering to quickly move inventory.  It appears to me that builders are making deals to raise cash to be able to purchase raw land at today’s discount rates

Fort Myers area communities with new construction availability and aggressive builder incentives include:

• Avalon Preserve / Taylor Morrison
• Bell Tower Park / Grosse Point Development
• Botanica Lakes / GL Homes
• Catalina Isles / DR Horton
• North Star Yacht Club / Liffey NSYC LLC
• Promenade at the Forum / DR Horton
• Residences at Coconut Point / Kosene & Kosene
• San Simeon / DR Horton
• Tarpon Point / Grosse Point Development

We track new construction opportunities and incentives and are available to provide guidance and representation to buyers interested in these communities.

The Miami Herald reports that Miami Heat president Pat Riley is being sued by a real estate broker over commissions associated with the Fort Myers land where Riley has developed the mixed-use Forum project.  The broker claims Riley owes him millions as a result of a handshake deal they made 12 years ago.  With no written documentation and a couple of deceased witnesses, on the surface this case appears to be a shakedown rather than a handshake deal.

The development of the Forum has truly changed the face of Fort Myers near the interchange of  I-75 and Colonial Boulevard.  Big box stores including Home Depot, Target Staples, Petco and Bed & Bath have filled a major shopping void in this part of the city.  Restaurants including Five Guys, Subway and Bajio Mexican Grill round out the Forum at Fort Myers experience.

The residential component of the Forum at Fort Myers includes two discrete neighborhoods, the Colonnade at the Forum featuring town homes currently available starting under $100,000 and The Promenade at the Forum featuring single-family homes currently available starting at $165,000.

Active adult communities are quite popular in Southwest Florida and offer an exciting lifestyle option for many of our residents.

With an extensive schedule of activities, Fort Myers 55+ communities help newcomers quickly acclimate to their new community.  It is easy to quickly meet other residents with similar interests and hobbies.  Social activities, sports and crafts are among the more popular items available in these 55+ communities.

Generally, these communities have deed restrictions that require at least one owner of the property to be at least 55 years of age.  These restriction do not generally preclude a younger spouse or even a child from living with you in the community.

Popular 55+ communities in the greater Fort Myers area include:

• Cascades at Estero – Single-family Homes
• Cascades at River Hall – Single-family Homes
• Cinnamon Cove – Condos, Villas & Single-family Homes
• Heritage Cove – Condos, Villas & Single-family Homes
• Pelican Preserve – Condos, Carriage Homes, Villas & Single-family Homes
• Seven Lakes – Condos & Villas

There are other Fort Myers 55+ active adult communities in the area that our team can assist you with.