REAL ESTATE

24 THE SUN REAL ESTATE

Mortgage interest rates rising again

Here’s a little perspective on the continuing increase of the 30-year, fixedrate mortgage. Several months ago, I did an analysis of the average fixed-rate mortgage rates starting in 1971 recorded on Freddie Mac’s website. At the time, something told me that I should hang onto this research, however, I had no idea how much I would be referring to it during the past couple of months.

Since the Federal Reserve decided to increase interest rates in an effort to control inflation, the housing market has been substantially disrupted. Currently, the U.S. mortgage rates have reached their highest level in more than 13 years. The average interest rate for 2008 was 6.3% and we are already seeing rates at or near 6%. In June, the Federal Reserve increased rates by 0.75% points and Fed Chairman Jerome Powell indicates things are not likely to change soon. He hints that at the July meeting there will be another 0.75% increase. Mortgage rates don’t automatically increase when the Fed raises rates, but they are heavily influenced by it.

What we’re seeing happening around the country and in Florida is a decline in the number of sales, not a decline in sale price. Even though there is some increase in the number of new properties hitting the market, it is so marginal it doesn’t even come close to providing enough inventory to satisfy hungry buyers. In Manatee County in May, the supply of single-family homes finally exceeded one month, which is anemic when you consider that a sixmonth supply of available properties has traditionally been the benchmark for a healthy real estate market.

Complicating the availability versus demand ratio even further is the fact that so many homeowners refinanced their mortgages when rates were under and just over 3%. These homeowners have no incentive to sell any time soon and move on or up to another home. Even potential retirees are rethinking the benefit of selling, helping to freeze the market, not to mention the pandemic providing a new way to do business remotely, allowing employees to work from areas of the country with lower housing prices shifting the market.

Because the interest rates were so low for so long, buyers were able to purchase larger and more expensive homes. However, now with less purchasing power, young buyers are facing the reality of settling for a smaller home with fewer amenities in an area they may not really want to be. Housing costs in the country have jumped from 24% of the average household budget in the early 1970s to 27% in the late 1980s to 35% in 2019 with higher housing costs likely to come based on the increase in sale prices.

Most real estate professionals and economists don’t see prices going down. Goldman Sachs estimates housing prices will grow around 10% this year nationally and Bank of America forecasts 15%. So, it doesn’t look like the Federal Reserve’s plan to lower the heat on the housing market by increasing mortgage rates has worked; there is still a huge demand for properties. It has, however, brought a lot of pain to first time and marginal buyers.

Tony Veldkamp, the president of the Realtor Association of Sarasota and Manatee wisely says, “If the time is right for someone to purchase a home, they should not let interest rates deter them if they can afford the increase in payments. Homes can be permanent, whereas interest rates are temporary.”

I agree. The big picture is that interest rates are still low relative to other times in our history, and that’s my perspective.

Castles in the Sand

LOUISE BOLGER

Love it Like a Local campaign seeks support

BY JASON SCHAFFER

SUN CORRESPONDENT | jschaffer@amisun.com

ANNA MARIA – The Anna Maria Island Historical Society is seeking tourism funds for improvements to its building, and has asked the Manatee County Tourist Development Council (TDC) for its support.

Museum Vice President Barbara Murphy and former TDC member Doug Copeland addressed the council at The Center of Anna Maria Island on June 23. Murphy and Copeland - whose wife, Pat, was one of the original founders of the museum - gave an update on the museum and discussed its past, present and future.

“The Anna Maria Historical Museum offers a glimpse into the past of our little piece of paradise,” Murphy said. “You can literally take a step back in time as you walk through the museum filled with artifacts and photos from the past.”

The Historical Society was founded in 1991 by Pat Copeland after she bought the photos and archives from a newspaper that had been in operation since the 1950s and was closing. It was her mission to use that information to start a historical society and museum that would showcase the history of Anna Maria Island, its residents and culture.

The permanent home of the Historical Society came after Anna Maria Island Turtle Watch had to give up its Turtle House on Pine Avenue after changes in state laws prevented them from hatching turtles there. The building had also served as an icehouse and a police station in years past.

“The Anna Maria City Commission gave the Historical Society use of the building in 1992,” Doug Copeland said. “With the help of the Anna Maria Island Privateers and other volunteers, the building was gutted and remains their current home.”

The property contains the old city jail, a popular tourist attraction in Anna Maria. The land also had an area that was cleaned up by volunteers and became the Anna Maria Historical Park, a native landscape that visitors can enjoy. Another museum project is the Pat Copeland scholarship, which gives $4,000 to an outstanding area high school senior every year.

The museum, 402 Pine Ave., is open Monday through Friday from 10 a.m. to 1 p.m. Visitors can learn about the history of the Island through artifacts dating back to its first inhabitants. The museum is run entirely by volunteers, as well as an 11-member board of directors, and sees between 600 and 800 visitors a month.

With projects such as the re-imagining of Pine Avenue and a possible water taxi at the City Pier, Historical Society members think the number of visitors will increase significantly in the near future.

The TDC will consider the request at a future meeting.

JASON SCHAFFER | SUN The Anna Maria Island Historical Museum and old city jail on Pine Avenue in Anna Maria.

Manatee County’s Love it Like a Local tourism campaign is seeking area businesses and supporters to help educate visitors on how they can preserve and protect the Island, its beaches and natural resources. Joining the campaign not only allows businesses to educate, but also be promoted to potential visitors and current guests. For more information, visit www. bradentongulfislands.com.

County seeks input on agritourism

Manatee County is sponsoring a community workshop on agritourism issues. The virtual workshop will be held online via Zoom on Thursday, July 21 at 7 p.m. to discuss a county-initiated amendment to the Land Development Code regarding agritourism activities on properties located in Manatee County. County staff is proposing to add the minimum regulations necessary to protect the public interest (health, safety and welfare) as it relates to substantial offsite impacts associated with agritourism activities. The purpose of the workshop is to inform residents of the nature of the proposal and seek comments. The meeting will be limited to the first 500 attendees. For more information, visit mymanatee.org or call 941-748-4501.

City leaders thank sanitation workers

JAMES THOMAS | SUBMITTED

Holmes Beach Mayor Judy Titsworth, Commissioner Pat Morton and city staff thank Waste Pro staff members for their hard work during a June 28 lunch to recognize National Sanitation Workers Day.