Ricardo "Ric" Ruiz del Vizo

Our housing market in Sarasota is staying steady and we do foresee a rise in interest rates as we get into 2011. Even if you see a nominal decrease in the average home price, it may not be worth an increase in your interest rate over the next 30 years. Here is an example:

Option A
Buy a home now for $350,000
Interest Rate @ 4.5%
Monthly P&I @ $1,773

Total Payments and Interest over 30 years = $638,428

Now, lets say you wait 8 months and this same home were to dip in value by $15,000 down to $335,000. Wow, it's a good thing you waited, right? Not so quick. During that same 8 months...interest rates go up. Your once 4.5% interest rate is now 5%. How does that look? Let's see...

Option B
You waited and paid $335,000
Interest Rate @ 5%
Monthly P&I @ $1,798

Total Payments and Interest over 30 years = $647,402

Now, under Option A your payments were lower and you paid a mere $288,428 in interest over 30 years.

How does Option B look? Even though your purchase price is less, you still see a nominal rise in the monthly payment. It doesn't look bad on the surface, but let's dig a little deeper.

On this loan, you paid $312,402 in interest over the 30 years...$23,974 more than Option A.

Your $15,000 savings just turned into nearly $24,000 in extra interest payments!

Of course, this is all dependent upon interest rates and property values. Most of us seem to agree that prices may go down a bit in 2011 as new foreclosures and short-sales come on the market out of the "shadow inventory". However, most analysts also agree that we will likely see an increase in inflation and interest rates as well. Only time will tell.

One thing is for sure...prices right now are at historic lows. In some cases, prices in Sarasota are as low as they were in the early 1990's. We also know that we have interest rates that are rock bottom and can not likely go any lower. With this information in hand, how does it not make sense to make a purchase now? Even if you see a nominal depreciation over the next year, the prices will come up at a steady rate over the long term. According to the graph above, nationally we can expect to see a 10% appreciation in home prices over the next 5 years.

The beautiful island of Longboat Key has distinguished itself in the Recent Conde Nast Reader's Choice Awards as the #2 Island destination in all of North America! That's right...our own little piece of paradise is a welcome oasis to travelers from around the world! Longboat Key is home to world-class tourism, golf, beaches, and real estate. Sitting on a 10 mile stretch of land between Sarasota and Manatee counties, Longboat Key is a quiet and restful island where you can find your place in the sun. The active lifestyle of her residents and visitors is apparent when you drive along Gulf of Mexico Drive and observe the multitude of people biking, jogging, roller-blading, and walking their dogs.

You will also find the world-renowned Longboat Key Club where celebrities and statespersons visit every year. You might just see one of your favorite actors out on the greens if you pay close attention! This achievement represents another reason why the Sarasota area continues to be the primary choice for visitors and others looking to relocate from around the globe. The investment, second-home ownership, and primary home ownership opportunities are unbelievable and will certainly not last. The purchase of real estate in the Sarasota area is a sound investment in your future, while allowing you to live in one of the most sought-after and beautiful places on the planet.

Recent national statistics continue to point to a real estate market that is slowly on the path to recovery.  I would point out that each area is different and some communities are recovering quicker than others.  Our Sarasota market continues to see a leveling out of inventory and strong indicators that the worst may be over for us here.  In fact, our market in the under $250,000 - $300,000 has developed into a Seller's market recently!  If there is a home that is in good shape, and priced properly below $300,000 - we are seeing multiple offer situations across the board.  For more information on what is happening nationally, check out the video below:

This blog is meant to be read, comprehended, and implemented by those Realtors out there who firmly believe that things are not "so bad". Listen, I'm not going to sit here and say that it is 2005 again, but things could be worse. Now, I understand that you may be in an area that things could not possibly be worse...perhaps. If so...I am truly sorry. However, some of us live in great areas that are weathering this market pretty well. One problem is...the national media. They just love to report on how bad our housing market is doing, don't they? Oh, the horror of it all...and just wait...it is going to get worse! Florida is covered in oil, the bank foreclosure situation is going to cause a double-dip recession...oh my GOD! We're all going to die!

Where I live, in sunny Sarasota Florida, I have not seen so much as a piece of dirty sand on our beaches. However, I recently spoke to a client of mine who had just returned from Germany. He mentioned that he lived on Florida's Gulf Coast to some German acquaintances and they looked at him with horror in their eyes. They questioned him and offered him condolences for the terrible spill that had ruined our coastal areas. He thought they were insane...where were they hearing this? He told them that there was no oil in Sarasota, or anywhere else in Southwest Florida. Well, our wonderful media loves to spin a web of misinformation, gloom and doom. Why? I have no idea. They say that bad news is what sells, but I think we would all disagree with that. For those Germans out there who may find this blog entry just let me tell you this...Südwestlicher Golf von Florida Strände sind sauber!

My challenge to all Realtors is simple. If you are sick and tired of the national media (and local media too) dictating to your potential clients how YOUR housing market is ...then get the word out on your own! We must all blog, blog, blog and tell the truth. If you are one of those Realtors where your housing market just stinks...you are welcome to NOT blog about it. Also, if you are one of those Realtors who should be working for a national news corporation because your day consists of your own doom and gloom message...you are welcome to drown in your own self pity as well. Please do not blog.

We live in a bright new age of technology where The People have the power to inform. Let's get to work and get the word out!

I took this picture of Lido Beach sunset on Wednesday, June 7...plenty of people out...and nice clean water and sand!!!

Sarasota's, and all of Southwest Florida's, beaches continue to remain clear of oil and tar balls. As we watch the Deepwater Horizon well spew its disastrous mess across the Gulf of Mexico; our pristine sands, estuaries, sounds, and wildlife go unaffected. Our luck is bittersweet, as we know the unprecedented damage that is being done to the fragile ecosystems in Louisiana, Mississippi, and Texas.

Sarasota Real Estate continues with a steady rate of sales, as our inventory drops. This is particularly true in the case of new construction. As such, we are seeing an increase in investor, developer, and builder purchases of vacant land and discounted homes in areas such as: "West of the Trail", Siesta Key, Lido Key, Longboat Key, Casey Key and other waterfront opportunities.

Sarasota, Florida remains a viable real estate investment with a solid long-term growth forecast. Just this year, Sarasota has been named a Top Place to Retire (CNBC), the #1 Best Buy in Real Estate (Today Show) for the U.S., and most recently, the #1 Best Buy for Real Estate in the entire Western Hemisphere of the World (International Property Journal). Sarasota has an exceptionally low probability of an oil impact in our region and this will likely have the affect of area home values increasing. This is due to the fact that several other Gulf states, and cities in North Florida and the East Coast will see a decline in sales as home buyers and investors seek areas that are unaffected by the oil spill. These combined factors will continue to drive sales in Sarasota, decrease inventory, and push our market back into a seller's marketplace.