Tony Barrett, a former aspiring hog farmer from a small farming community in Illinois, is now the 2024 president of the Sarasota-Manatee Association of Realtors (RASM), replacing outgoing president Brian Tresidder. He has been appointed.
But those old aspirations changed, and Barrett eventually decided to leave the town of Ridge Farm (which, he says, was “corn on one side of the road and beans on the other”) and join the Army as a medic. became. He fell in love with the area while on vacation and settled here in 1991. He remembers when chickens roamed free on State Route 70 and East 15th Street.
Barrett went on to work for the Sarasota Fire Department as a firefighter and EMT for 25 years, and worked in real estate on the side. Now 56 and a retired firefighter, he has been in the real estate industry for 20 years, growing his brokerage firm, Barrett Realty. And while real estate and firefighting are two seemingly different ends of the career spectrum, Barrett says they are similar in terms of urgency. “When the bell rings, we answer it. In both jobs, we like to solve problems,” he explains.
We spoke with Barrett about what today's buyers want, the current cooldown in real estate after the frenetic years of the pandemic, and whether it's a buyer's or seller's market. This interview has been edited for length and clarity.
What do you think is causing the current cooldown in real estate?
“Rising interest rates had the biggest impact. However, there was a lot of fraud in the world of homeowners insurance claims, with consumers replacing roofs they didn't need with the help of lawyers. Many insurance companies backed out due to extravagant legal fees.''The state's requirements have resulted in significant increases in overall homeowners insurance premiums. ”
“But we are seeing improvements. Some insurance companies are coming back to the Florida market. And if we postpone hurricane season another year, like in 2023, that will lead to lower rates and, hopefully, more affordability.” It will contribute.”
“The current inventory situation shows that we are moving towards a more equal market where buyers and sellers can negotiate. We are still seeing about 1,000 people a day coming into the state, but prices are falling. Some people are leaving.”
“During the frenzy a year and a half ago, at one point inventory was down to 0.2 months worth and people were buying as if it was the end of the world and no one was going to build houses anymore. That will happen.''The overall pipeline will help maintain inventory levels.''Economists, who by no means agree, also agree that interest rates will fall over the next two quarters, which will help both buyers and sellers. They seem to agree that this will further improve the balance between
Historically, lodging is more affordable than other beachside destinations. Do you think Sarasota and Manatee counties are still affordable?
“I think this is still a very good value location given all that it has to offer: arts and culture, entertainment, beaches. But the price makes it hard to live and work here full-time. Many people are taken out of the market.
“But there are improvements there as well. The Live Local Act provides more density opportunities and incentives to incorporate achievable housing into developments, but I think this program will help lenders and buyers We have never collaborated with.”
“The Sadowski Act Housing Trust Fund helps local governments assist residents with housing, as do local down payment assistance programs.”
Should homebuyers wait to buy?
“I don't have a crystal ball. I like to quote Warren Buffett: 'You can't time the market.' There is no perfect time to buy, as it is very personal. If you need a house and have the savings for it, you should buy one. Variation is always a factor. I think buyers today are savvy and have a lot of information. Nowadays, there are many different options that can benefit them. ”
Where is the most affordable area to buy a home?
“I don’t think anyone would consider anything a good deal now compared to just three years ago. [prices have] It has increased a lot.
“In all the years I have been buying and selling, home values have always gone up. They may not go up year after year, but they definitely go up after 10 years. I don't think it's out there, but I think so.'' “Recently, we're seeing buyers who have been on the sidelines coming out. They're rolling the dice on interest rates. If it’s relevant, anything could happen within 30 to 60 days.”
“If you can afford it and need a home, now is a good time to buy.”
Do you expect construction costs to fall?
“I think material costs have come down from the crazy spikes we saw a few years ago, but supplies and substitutes for certain materials are now available.
“But builders are still buying land at a rapid pace, and many rural areas are being bought up for housing development. As long as the market is hot, they will be here.”
People still come here to build their dream home. I don't think the cost of new construction will go down as long as that demand continues, but builders and developers can offer homebuyers certain incentives that resale home sellers cannot. ”
What do homebuyers want today?
“Buyers want transparency. They want value and the best rates available. There will be normalization and renewed interest from buyers to check out new inventory.”
“Don't over-improve your home. Even if you spend a significant amount of money, you probably won't get that money back. Some key points are improving curb appeal, a solid roof, and uncluttered spaces. For example, you're adding a new kitchen, but the buyer doesn't like it so you might tear it down. If there's some stains on the carpet, instead of replacing it, add the carpet fee to the deal. Pandemic panic buying is over and parties have time and space to negotiate.”
