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March Update Clearwater Beach State of The Market for Condo's

by Tom Smith Team

  The sugar fine white sand is a trademark of this fabulous beach. Perfect for a day in the sun. You might even spot a dolphin or two playing on the horizon.

 

It has been an amazing start to the year in the Clearwater Beach area.  The weather has been fantastic, and the energy here feels incredible.  In the condo market we see average sale prices jumping to peak levels in February.  Active listings and monthly inventory are trending at slightly higher than average levels as well.  Thankfully, Clearwater Beach was just voted #1 Beach in America again by trip advisor.  Optimism about Florida remains high.  No state income tax and nasty weather up North may continue to push sales and maybe even prices higher.

The average sale price in February was $692,580 up from $672,000 in January and $663,000 in December. February was the highest average sale price in the last 12 months.  Total sales in February was 40 which is in line with average for the last 12 months.  In January we saw inventory clean out a bit with 115 recorded condo sales.  Currently there is approximately 9 months of inventory on the market which is slightly higher than average for the last 12 months.  September of 2018 had the highest number of condos on the market with 12 months.  There are 37 active listings going into March in this price range.  In February there was 39 and one year ago there was 49 which was the highest in the last 12 months.

On a side note, since 2016 absorption rates for Pinellas County have been the highest from March to September.  High absorption rates indicate homes are selling the quickest and point to a sellers’ market.  We hope this trend continues this year in the beach condo market.   

We have narrowed our research down to the markets that matter most to you as a client.  Clearwater Beach real estate has a different dynamic to it.  Therefore, we believed it best to separate our market from the rest of Pinellas county to get a clearer picture.  We looked at activity for condominiums from $500,000 to $900,000 in select zip codes.

For more information or to set up a listing appointment please contact Tom or Kristin today.
Tom 727-776-3375
Kristin 727-686-1596

Tom Smith Team 40 years of real estate experience and over $100,000,000 sold!

What months of the year do homes sell the quickest for Condo's and Single Family?

Since 2016 the months March through August appear to give sellers the most optimal time.  An absorption rate estimates the rate at which active listings are selling in a given market.  It is calculated by dividing the number of closed sales by the number of active listings. 

A low absorption rate means that homes are selling slowly (suggesting a buyers market) while a high absorption rate means homes are selling quickly (suggesting a sellers market). 

Now is a great time to list your home.  Clearwater Beach was just voted the #1 beach in the country.  Home values are at peak levels and if history repeats itself we are entering a sellers market.  

Call Tom or Kristin with the Coastal Properties and the Tom Smith Team to set up a listing appointment.

Kristin Vincelli 727-686-1596

Tom Smith 727-776-3375

Tom Smith Team over 40 years experience and over $100,000,000 sold!

Coastal Cleanup Event

by Tom Smith Team

Coastal Properties and the Tom Smith Team will be hosting our Coastal cleanup on Friday, February 22nd at 8:30 a.m. in Clearwater Beach and we would like to invite you.

Meet us at the FREE parking lot just south of the South Bay Condominiums on Sand Key

Feel free to reach out to me with any questions. Please RSVP if you would like to join us!

 

Kristin Vincelli

Tom Smith Team

727-686-1596

Over $100 Million Sold!

New 2018 Tax Law Impact on Real Estate Owners

by Tom Smith Team

Congress has approved sweeping tax cuts and tax reform that have not been tackled by the federal government in over 30 years (since the Tax Reform Act of 1986.). The new tax law, formally referred to as “The Tax Cuts and Jobs Act,” will go into effect on January 1, 2018.

Primary Residence Homeowners

As a result of doubling the standard deduction to $12,000 for single filers and $24,000 for married filing jointly, according to Moody’s Analytics, as many as 38 million Americans who would otherwise itemize may instead choose the higher standard deduction under the new tax plan.

Any home mortgage interest debt incurred before December 15, 2017, will continue to be eligible for the home mortgage interest deduction up to $1,000,000. Any home mortgage interest debt incurred after this date will be limited to no more than $750.000 qualifying for the home mortgage interest deduction. Beginning in 2018, the deduction for interest paid on a home equity line of credit (“HELOC”) will no longer be eligible for the home mortgage interest deduction. However, the new tax law preserves the deduction of mortgage debt using to acquire a second home.

State and local taxes (referred to collectively as “SALT”) can be deducted but will no longer be unlimited as under current tax law. The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000.

Both the House and Senate tax bills had originally proposed increasing the length of time a homeowner would need to live in primary residence (from five out of eight years versus the current requirement to live in a primary residence two out of five years to qualify for the Section 121 tax exclusion.) This proposed change did not become a part of the 2018 tax law. Homeowners owners will continue to only need to live in their primary residence twenty-four (24) months in a sixty (60) month time period to be eligible for tax exclusion up to $250,000 if filing single and up to $500,000 if married filing jointly. Property owners will still have the ability to convert a residence into a rental property or convert a rental property into a residence and qualify for tax exclusion benefits under both the primary residence Section 121 rules and also potentially qualify for tax deferral on the rental property under Section 1031.

Investment Property Owners

Investment property owners will continue to be able to defer capital gain taxes using 1031 tax-deferred exchanges which have been in the tax code since 1921. No new restrictions on 1031 exchanges of real property were made in the new tax law. However, the new tax law repeals 1031 exchanges for all other types of property that are not real property. This means 1031 exchanges of personal property, collectibles, aircraft, franchise rights, rental cars, trucks, heavy equipment and machinery, etc. will no longer be permitted beginning in 2018.

Some investors and private equity firms will not have to reclassify “carried interest” compensation from the lower-taxed capital gains tax rate to the higher ordinary income tax rates. However, to qualify for the lower capital gain tax rate on “carried interest” investors will now have to hold these assets for three (3) years instead of the former one (1) year holding period.

Investment property owners can continue to deduct net interest expense but investment property owners must elect out of the new interest disallowance tax rules. The new interest limit is effective in 2018 and applies to existing debt. The interest limit, and the real estate election, applies at the entity level.

The new tax law continues the current depreciation rules for real estate. However, property owners opting to use the real estate exception to the interest limit must depreciate real property under slightly longer recovery periods of 40 years for a nonresidential property, 30 years for a residential rental property, and 20 years for qualified interior improvements.  Longer depreciation schedules can have a negative impact on the return on investment (“ROI”) and property owners will need to take into account these longer depreciation schedules if they elect to use the new real estate exception to the interest limit.

The tax law creates a new tax deduction of twenty (20) percent for pass-through businesses. For taxpayers with incomes above certain thresholds, the 20 percent deduction is limited to the greater of: 50% of the W-2 wages paid by the business or 25% of the W-2 wages paid by the business, plus 2.5% of the unadjusted basis, immediately after acquisition, of depreciable property (which includes structures, but not land). Estates and trusts are eligible for the pass-through benefit. The 20% pass-through deduction begins to phase-out beginning at $315,000 for married couples filing jointly.

The new tax law restricts taxpayers from deducting losses incurred in an active trade or business from wage income or portfolio income and this will apply to existing investment and becomes effective in 2018.

State and local taxes paid in respect to carrying on a trade or business, or in an activity related to the production of income, continue to remain deductible. Accordingly, a rental property owner can deduct property taxes associated with a business asset, such as any type of rental property.

The new tax law retains the 20% tax credit for the rehabilitation of historically certified structures, but taxpayers must claim the credit over a five (5) year time period.

This article is only intended to provide a brief overview of some of the tax law changes that will affect any taxpayer who owns real estate and is not intended to provide an in-depth overview of all the new tax law provisions. Every taxpayer should review their specific situation with their own tax advisor.

Calling All Dog Lovers!

by Tom Smith Team

Are you a dog lover?  We need your help!

On Saturday, February 23, 2019, Southeastern Guide Dogs will be hosting a huge festival and 3K Walk at Vinoy Park in St. Petersburg while attempting to break the world record for “the most number of dogs wearing bandanas at an event”.  The current record of 860 dogs is held by a group in Angus, Scotland.

Kristin Vincelli, along with her family and the Tom Smith Team Coastal Properties is participating in the 2019 Southeastern Guide Dogs walkathon. Southeastern Guide Dogs is attempting to break a Guinness Book of World Records next year and we could really use your help.

We have been asked to bring any friends/clients/family members to come along with the dog – the more the merrier. Make sure you let us know your coming so we can meet you there.  You can reach Stephen Vincelli at 727-430-1995 by phone or text.

To join us, please click here for the link to the Facebook event we’ve created: https://www.facebook.com/events/342651493156892/

Clearwater Beach State of The Market Single Family and Condo

by Tom Smith Team

January 2019 Clearwater Beach and Belleair market single family homes from $400,000 to 1,700,000.  The data indicates the single-family market is still strong.  The average sale price in 2018 for our market was $734,731 compared to $715,364 in 2017.    The absorption rate for December was 13%.  There were 87 active listings in December and 95 in January.  There were 11 closed sales and 11 new listings in December.  There has been a total of 29 closings in this range since October and 54 new listings.  Months of inventory decreased from 20 in November to 9 in December.  The average median sale price for December was $690,000 down 9% from the 12-month average.  

The condo market is still strong based on the recent data.  Property values in our market are increasing but at a slower pace.  Our data here is for the Clearwater Beach and Belleair market condominiums from $400,000 to 1,000,000.  The median sale price for December was $645,000.  The average sale price for the last 12 months is $594,000.  The average sale price for 2017 was $546,999.  The absorption rate for December was 17%.  There are 104 active listings to date.  There were 17 closed sales and 22 new listings in December.  Months of inventory was 6 for December down from 8 in November.  In 2018 there were 216 closings in this range compare to 194 in 2017.

The economy in Florida is healthy with optimism remaining at a high level.  Historically the next few months, March through August, have the highest absorption rates.  If that trend continues, we could see an increase in closings.

With our best,

Tom Smith Team
Over $100 Million Sold!

2019 MINGLES with Tom Smith Team and Clearwater Beach Chamber

by Tom Smith Team

   9 

S
Clearwater Beach Chamber

January 31st

Salon South Beach

February 28th

Surfside Tap House

March 28th

Speggtacular Clearwater Beach

April 25th

PROforma N&M Communications

May 30th

Clearwater Yacht Club

June 27th

Hogan's Hangout

July 25th

 Shephard's Beach Resort

August 29th

Crabby's Dockside

September 26th

 Quality Hotel Beach Resort

October 24th

 Wildflower Cafe/Suncoast Jazz

November 14th

 The Tropics Boat Tours

December 19th

 Hampton Inn & Suites by Hilton Clearwater Beach

Special Announcement Featured Sponsor of The Clearwater Beach Chamber

by Tom Smith Team

The Tom Smith Team is pleased to announce our membership with the Clearwater Beach Chamber of Commerce for 2019.  We are only one of 8 featured sponsors and the only real estate team sponsor.

Local Community Expertise

Being a part of this organization The Tom Smith Team continues to position our team as a local community expert helping to address many facets of our developing area (such as pedestrian safety, traffic flow/parking improvements, wildlife conservation, beautification and much more) to ensure that the principles and values, that helped make our slice of paradise so desirable, remain as the cornerstone of future growth.  Visit the Beach Chamber for information on upcoming events www.beachchamber.com/signatureevent  

As our clients we will be keeping you in touch with all that is happening locally that affects your property value.  Please call us anytime for more information and keep an eye out for notifications and market updates.

With our best,

Tom, Vivian, Kristin, Stephen, Amanda and Iwona

The Tom Smith Team
Over 100 Million Sold!

 

SAVE THESE DATES!

February 4

Event: Job Fair

March 31

Event: Iron Girl Clearwater

April 12-28

Event: Pier 60 Sugar Sand Festival

May 3

Event: 10th Annual Clearwater Beach Taste Fest @ Pier 60 Park

June 4

Event: 24th Annual Awards Banquet

June 18

Event: 6 Chamber Trade Show

August 16

Event: Beach Chamber Night - Free Trade Show

September 13-27

Event: 10th Annual Restaurant Week

September 27-29

Event: Clearwater Super Boat Races

October 17-20

Event: Clearwater Jazz Holiday

October 18-20

Event: 8th Annual Chalk Art Festival

November 4

Event: 24th Annual Chamber Golf Tournament

November 22-24

Event: Suncoast Jazz Festival

December 4

Event: 24th Annual Holiday Breakfast

December 31

Event: 8th Annual Light It Up Clearwater Fireworks

To add your event to our Community Calendar, click here

 

 

 

5 Tips to Help Sell Your Home Fast

by Tom Smith Team

The busiest time of year for real estate is right around the corner, so thousands of Americans are getting ready to put their homes on the market. If you plan on selling, here are five ways to make sure your home sells fast and the closing goes as smoothly as possible.

Be realistic on the price
The absolute worst thing you can do when trying to sell your house is pricing it way too high. Many sellers list their home for an ambitious price, figuring they can always reduce it later.  However, bear in mind that by doing so, you'll turn off a lot of prospective buyers before they even take a close look at your home. For example, let's say your house has a realistic market value of $260,000, so you price it for $305,000 to see what you can get. Well, the people who are searching in the $250,000-$275,000 price range (your target market) aren't even going to look. And, most people who do look at your listing will expect to see a lot more "house" for the listing price.  Studies have shown that homes that sell quickly tend to sell for more than their original listing price, meaning they were priced aggressively and appropriately right from the start. In contrast, homes that sit on the market for four months or more sell for an average of 11.5% below the original asking price.

The first two to three weeks after listing are the most crucial time, so if you want to sell fast, it's important to go after your target buyers by pricing your home realistically right from the start. In the above example, a $275,000 listing price would be a better starting point. Or, better yet, defer to the Tom Smith Team of real estate agents, who can perform a thorough analysis of your local market and recommend a good listing price.

De-clutter and de-personalize
When trying to sell your house, clutter can be your worst enemy, especially if your home is on the small side (or "cozy" in real estate language). A major goal when showing your house is to allow buyers to picture themselves living there. If your rooms are full of random stuff, it may look like home to you, but prospective buyers might have trouble picturing where all of their stuff is going to fit.  No decluttering advice would be complete without a call to streamline your closets.  If your closet is crowded, I’m going to think my stuff won’t fit.  Wow buyers by showing them how much space there is for stuff—not how much stuff there is in the space. 

Make your house look good... virtually
The majority of homebuyers today do at least some of their house-hunting online. According to a joint study by Google and the National Association of Realtors, 90% of homebuyers searched online during their buying process. So, it's important to give them something worth looking at.  Your listing photos should only be taken after you've completed the de-cluttering step I mentioned earlier. And even then, don't just snap some pictures with your phone and upload them. Many real estate agents are skilled at taking good listing photos, and there are professional photographers in every major market that specialize in taking good listing photos. This could end up being well worth the investment, especially if the home you're trying to sell is at the higher end of your market, or if there is an abundance of comparable homes on the market in your area.

Think Like a Buyer
Set the table, re-arrange the furniture and cleaning your home for home showings is common sense. But many folks underestimate just how important these steps are.  This isn’t your run-of-the-mill weekend tidy-up. Think of it as spring cleaning on steroids. You’ve got to think about what buyers look for and get down to the nitty-gritty so that even the smallest details shine. Don’t forget to get your windows squeaky-clean.  There needs to be as much light coming in as possible.

Bring the Outside In
Make your house feel like home by taking advantage of what’s in full bloom right outside your door.  Fresh flowers warm up a room and send the message that this is a really nice space to be in.  If plucking decorations from your yard isn’t an option, stop by your local grocery store and pick out a fresh bouquet that’s already been prearranged. If you run short on vases, display your finds in an antique pitcher or Mason jar for a touch of vintage charm.  And flowers don’t have to be the only star of the show. If you grow your own fruits and veggies, entice buyers with a bowl of fresh produce on the kitchen counter.

According to some experts, potential buyers make up their minds about whether or not your house is worth a closer look before they even walk through the front door. Making the effort to do all of these things will make sure those 15 minutes are as positive as possible.


Contact Kristin Vincelli for assistance with these or any other real estate questions.
727-686-1596
Tom Smith Team
Over $100 Million Sold!

Pinellas County Beach Re-nourishment Project

by Tom Smith Team

 

Is it just us or does it look like the ocean is being pushed away from the beach? If you have been to

Treasure Island, Sunset, or Sand Key Beach recently you may have noticed roped off areas with

bulldozers, tractors, and large pipes, this is for the 5-7-month long Coastal Management

Beach Nourishment. The $52 million project is much needed after the hit of hurricane Irma last year.

Our beaches attract tourists and visitors from all over. Not only do our beaches support tourism they also

help to protect the barrier island and the property which our homes, schools, and businesses thrive.

Marine life and marine environment depend on our beaches for survival.

Our beaches erosion levels are constantly monitored, and projects are scheduled based on the amount of

erosion that occurs. Although, because of the hit from hurricane Irma last year, this beach nourishment

program is our largest in more than a decade. The ongoing erosion is managed by pumping sand along

the coast to re-build our beaches. This will help to maintain our beach front properties, businesses, and

the overall look of our beaches that tourist and visitors are drawn to every year. We know the noise may

be bothersome, but a couple months of noise is nothing in return of keeping our beaches beautiful and

marine life safe.

For the last month crews have been working on Sunset and Treasure Island beach and now have moved

on to Sand Key. Work ended on Susnset Beach June 9th and began June 13th behind Ultimar on Sand

Key. Sand Key is projected to be done by beginning to mid-July, from there it will move to Belleair and

on to finish on Redington Beach.

Displaying blog entries 1-10 of 41

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Contact Information

Photo of Tom Smith Team Real Estate
Tom Smith Team
Coastal Properties Group International
423 Mandalay Ave., #102
Clearwater Beach FL 33767
(727) 776-3375