NAR ADVISES CONSUMERS TO TAKE ACTION NOW WHILE CONDITIONS ARE FAVORABLE

Remember the stock market bubble days approaching the year 2000? Yes indeed those were interesting times. I had a small basket of wildly fluctuating stocks and a pocket full of "paper wealth". Then came the reality check as the air abruptly escaped the bubble and left many investors holding the proverbial "bag", myself included in many cases. The real winners were the true stock market pros who bought and sold the cycles within the big scheme of Wall Street recognizing the vertical ascent of stocks could not be maintained. They played market volatility, both long and short, profiting handsomely along the way. And one common denominator amongst the real pros was to act with purpose and not succomb to greed. Have an entrance and exit strategy and stick to it. The cyclicle "waves" of Wall Street have a familiar ring within the real estate market. They do exist and the real "pros" will not succomb to the greed factor by trying to time market tops and bottoms of these waves to perfection.

Potential real estate buyers who believe the market has not yet approached the bottom of this down cylical wave should take heed of familiar lessons learned in the past. Large homebuilders are reducing land inventories, developers are shelving projects, "vulture funds" are swooping in to purchase distressed properties from the inventory. The market is seeking equalibrium and will eventually follow historical patterns of the past by slowly beginning the next leg up. Many prices have adjusted to reflect more realistic values and inventories are such that the buyer has a wide range of selection and plenty of negotiating leverage. Interest rates are hovering near historic lows. Builders are offering any number of enticements to lure buyers, from upgrades to closing costs paid and more. Yet buyer sentiment still seems to be one of resistance, waiting for the "perfect" bottom of the cyclical wave.

A lesson learned during the stock market adventures approaching 2000...the pros are there for a reason. Find a good investment advisor, tell them your objectives and heed their advice. The same can be said for our current real estate market. Find a real estate professional, tell them your objectives and heed their advice. A buying opportunity does exist in just about every facet of this market. And buyers should be implementing strategy while this favorable environment exists. Here's an article from the National Association of Realtors addressing the issue...

In a full-page newspaper advertisement running in six of the nation's leading newspapers beginning Nov. 3, the leadership of the National Association of Realtors has launched a national campaign to urge home buyers who have been waiting to buy the home of their dreams to act now before the market changes. NAR's first-ever newspaper blitz features the headline, "It's a great time to buy or sell a home." The advertisement points out that interest rates have fallen seven months in a row and are near 40 year lows, inventories of existing homes are higher than they have been in decades and prices have stabilized. But the perfect conditions for buyers are likely to change as sales pick up, prices gain traction and conditions improve for sellers next year. "Homeownership is a safe, secure way to build long term wealth. The national median price of homes bought 10 years ago has increased 88 percent. The number of U.S. households is expected to increase 15 percent during the next decade, creating a continued high demand for housing," the ad reads. It quotes former Federal Reserve Chairman Alan Greenspan saying, "Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter." The advertisement appeared in the Wall Street Journal and USA Today, the New York Times, Washington Post, Los Angeles Times and Chicago Tribune. It will run in the same newspapers this weekend.

NAR President Thomas M. Stevens of Vienna, Va., said the newspaper ads are the beginning of an NAR campaign to urge buyers and sellers to take advantage of the favorable market conditions. Two new network television and radio ads directed at buyers and sellers will begin airing in second week of January. The new spots will be rotated into NAR's $40 million network Public Awareness Campaign. NAR's 1.3 million members and state and local Realtor associations are being encouraged to adopt the message in their own advertising and communications to consumers, Stevens said. "The market is much better than you might hear or read. Consumers should take advantage of this perfect alignment of low rates and extraordinary inventory before market conditions change," Stevens said.

Total housing inventory levels fell 2.4 percent at the end of September to 3.75 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace, according to NAR's existing-home sales report. The national median existing-home price for all housing types was $220,000 in September, which is 2.2 percent below September 2005, when the median was $225,000. The median is a typical market price where half of the homes sold for more and half sold for less. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.40 percent in September, down from 6.52 percent in August.

WALTON RESUMES BEACH RESTORATION NEAR POMPANO JOES

And so it begins...again. The long awaited, oft maligned, Walton County/Destin joint beach restoration effort has cranked back up again with an onslaught of piping and conduit freshly laid in front of the Pompano Joes beach access. And what a welcome sight it is. Here's the latest...

SANTA ROSA BEACH -The beach restoration in Walton County has resumed after months of delays, and the project will move into Destin next spring.
Work to pump sand from the East Pass onto beaches began in South Walton behind Pompano Joe's restaurant on Scenic Gulf Drive on Saturday.

Employees at Pompano Joe's have eagerly awaited beach restoration, said restaurant manager Vicki Berfanger. "We can already see a difference," she said. "It's definitely making a big improvement." Beach erosion had so narrowed the shore behind the eatery that storm surge routinely caused water to rise to the building's back deck, Berfanger said.
"We're ready for it to be done," she said. The final 6,300 feet of beach in Walton County should be finished by the middle of January, said Brad Pickel, director of beach management for the Walton County Tourist Development Council. "We're very happy to see the project back under way," he said.

The U.S. Army Corps of Engineers shut the project down in May after several endan- gered sea turtles got caught in equipment and died during sand dredging. The Corps later reversed its decision, and the TDC has spent the past several weeks working out a contract with Great Lakes Dredge and Dock for work to restart. The project, which covers about four miles of beach in Walton and two miles of beach in Destin, originally had a price tag of $22.8 million.

Delays and the expense of getting Great Lakes to come back after shutting down in May have added almost $5 million to the cost. The price now stands at roughly $27.7 million. Walton's share of that is $19.1 million. The TDC is using state grant money and tourist bed-tax revenue to fund the project. Part of the cost increase includes measures to reduce the risk of another sea turtle death. The TDC has hired a trawler to cast nets near the East Pass and collect and relocate any sea turtles in that area.

The trawler starting working Friday before the restoration resumed and had a close call when and endangered leatherback sea turtle got caught in the net and drowned, Pickel said. It happened when the net got snagged on what the TDC believes is a sunken boat in the East Pass, he said. That turtle death does not count against the restoration project because it happened during trawling and not during sand dredging, Pickel said.

Walton County has had to contend with not just sea turtle deaths but a legal battle over the project since it began in February. The case has reached the state Supreme Court, which will determine whether the project unconstitutionally violates private-property rights, as several Walton residents claim. There is no timeframe for when the court will issue a ruling. The TDC has said the restoration will continue as planned unless the court says otherwise.

Plans call for the project to start on two miles of beach in Destin early next April. That should take about 45 days to complete, Pickel said. He said he expects the Walton project to go smoothly and finish on time. "We've had no delays yet," he said.

Northwest Florida Daily News

GRAND BOULEVARD ANNOUNCES TENANTS

The following article is a follow up to a recent post on the upcoming Grand Boulevard development. A number of new retail and restaurant names will make their first appearance along the Emerald Coast. Our community is thriving and this development is another confirmation of this reality. Here's the latest...

Rising within the thriving landscape of South Walton, a small city's worth of construction is taking shape. Modeled after town squares that still dot small towns throughout America, Grand Boulevard at Sandestin is the highlyanticipated, shop, work, play and stay destination being built in Northwest Florida. Based on the mixed-use architectural model, Grand Boulevard will offer a lifestyle experience with access to many shopping and dining options, entertainment, professional services, corporate offices and residential and hotel space.

Offering a pedestrianfriendly layout, the town center also includes a large, centrally-located public green space named Grand Park, which will host year-round events. This downtown-inspired area provides an array of necessities either as a resident or a visitor to the area. "When we were growing up, we went downtown to the grocery store, to shop for clothes, to the bank or doctor. Grand Boulevard will be a more modern and dynamic version of the town square model. You won't have to leave the property," said Grand Boulevard developer Keith Howard.

Howard Group, the development company of Grand Boulevard, spent more than 10 years acquiring the 52 acres Grand Boulevard sits on. Just across the street from Topsail State Preserve and a short walk from Sandestin Golf and Beach Resort, Grand Boulevard is designed as a town center and destination for all of Northwest Florida. The eastern-most end of the property already contains the Sacred Heart Hospital and Publix, both opened in 2003. Marriott Courtyard and Marriott Residence Inn, border the western end, and opened in 2006.
According to Howard, the area residents and visitors are ready for Grand Boulevard. "This is more than a typical lifestyle retail cen- ter. It's more cutting-edge - offering a truly grand experience and a sense of excitement," he said. A place to shop, play, work and stay. Built along two miles of U.S. 98, Grand Boulevard will ultimately have many retail and dining options, offices for professionals, and rental and residential spaces.

In spring 2007, Grand Boulevard will celebrate the grand opening of a major portion of the town center, including several lifestyle brands and restaurants. Among the first to open will be P.F. Chang's China Bistro, Tommy Bahama's Tropical Cafe & Emporium, The Orvis Co., Fleming's Prime Steakhouse & Wine Bar, Coldwater Creek, J. Jill, Aveda Salon, Cantina Laredo Gourmet Mexican Food and an exciting new concept from an American retail icon - Brooks Brothers Country Club.
Among the other retail tenants opening are Viking Lifestyle Store, Fusion Glass Art Gallery, Learning Express Toys, Sunglass Station and Billabong. Several of the restaurants are new additions to the region and will be original dining experiences.

The name P.F. Chang's China Bistro evokes one of the most original dining experiences in the country. Fresh, contemporary and consistent are the trademarks of this addition to Grand Boulevard. A combination of Chinese cuisine, attentive service, wine and desserts, P.F. Chang's reflects the evolving Chinese culinary landscape, served up in a stylish bistro. Striving for harmony in taste, texture, color and aroma, P.F. Chang's balances the Chinese principles of fan and t'sai. Fan foods include rice, noodles, grains and dumplings while vegetables, meat, poultry and seafood are t'sai foods. Working in an exhibition kitchen, the chefs of P.F. Chang's use Mandarin-style wok cooking to prepare food. Using the fresh, high-quality ingredients, the chefs create lightly sauced dishes that allow natural flavors to emerge.

Cantina Laredo, in the east end of Grand Park, serves gourmet Mexican food. The Mexico City-style menu includes grilled fish, chicken and steaks complimented by signature sauces such as chipotle-wine with portobello mushrooms or saute?d artichoke hearts and roasted red bell peppers. Their signature margarita, the Casa Rita, is made from fresh lime juice and top-shelf tequila. Guacamole is made fresh at your table to your specifications. In addition to serving lunch, dinner, drinks and Sunday brunch, Cantina Laredo also offers catering.

Tommy Bahama is among the specialty retailers to open in Grand Boulevard. It is located at the west end of Grand Park. Tommy Bahama's Tropical Cafe & Emporium brings something unique to Grand Boulevard - a beautiful retail store featuring Tommy Bahama apparel, accessories and home decor items, along with a restaurant with a large veranda for outdoor dining, serving upscale-inspired cuisine.

Sporting traditions will be represented with the inclusion of one of the country's oldest retailers, The Orvis Co. Specializing in what the company calls a "distinctive country lifestyle," the 13,000-squarefoot Orvis offers the world's finest fly fishing equipment, men's and women's clothing, gifts for the home as well as dog beds and other pet supplies.

The first Fleming's Prime Steakhouse & Wine Bar opened in 1998, and have won awards from all over the country for food, wine and service. Most recently, Fleming's was the recipient of 37 awards of excellence from Wine Spectator magazine. Stylish, contemporary dining is the hallmark of Fleming's. As the name implies, the menu features prime beef, a variety of chops, fresh seafood, chicken, salads and desserts. Wine selections are recommended with menu items or may be chosen from the "100 wines-by-the-glass" election or from the extensive wine list which includes hard-tofind reserve bottles. In addition to the menu selections, Fleming's offers another way to enjoy food and wine with Discovery Dinners and Wine Flights. Their signature Discovery Dinners offer three fourcourse menus with wine pairings. For parties of six or more, Discovery Dinners feature wines especially chosen to complement each course. With 100 wines by the glass, including many hardto-find boutique wines, Fleming's is a wine-lovers dream. Besides pairing the ideal wine with dinner, explore their signature Discovery Wine Flight. A way to enjoy the adventurous side of wine-tasting, there are six different flights to explore, compare and enjoy.

Discovery Wine Flights are like having your own private wine-tasting every time. You can sit at the bar and try them or have one during dinner. One way to enjoy a flight is by having your waiter bring you a blind flight along with tasting notes. This is a great way to explore and educate your palate.

The heart of Grand Boulevard is a hub of construction and building as the spring grand opening nears. It has taken hundreds of construction workers, engineers, carpenters, roofers, electricians and plumbers, a dozen architects and one visionary to launch Grand Boulevard at Sandestin. One would never know how arduous building a town center is from talking to Keith Howard, a developer of Grand Boulevard. An optimistic Howard said Grand Boulevard is the natural progression for his work in the community. After success with the Market Shops at Sandestin and the nationally-recognized Silver Sands Factory Stores, he says he knew the land and location warranted something special that would endure the test of time. Howard opted for a sustainable town center development based on the principles of new urbanism. "We asked ourselves how we could take the retail lifestyle experience to the next level. We knew what we wanted to do years ago, before town center models came to the forefront. Now there is a name for it," Howard said.

While Grand Boulevard draws upon the style and comfort of old-fashioned town squares, the walkable town center takes a modern approach to this time-honored tradition. It has been updated and fine-tuned. No expense has been spared to make the Grand Boulevard experience truly grand and inviting. One of the first things Howard did to ensure the success of the project was to research other similar successful developments and identify the professionals responsible. Enter Nelson Architects Inc., an Austin based firm specializing in the town center model and exclusive mixed-use vernacular. As the project began to take shape, Philip Crisara, principal architect with Nelson, realized the scope of the project was more ambitious than anything else being built in Northwest Florida between Panama City and Mobile. With his experienced team on board, Howard's dream for a town center in South Walton took off. "Keith (Howard) is bringing forward two unique things. He is bringing a project-type that does not exist in this part of the region - a true mixed-use development with all of the layers needed to support it. Secondly, the quality of every aspect of the center is unparalleled," Crisara said.
"It's spectacular to have a project with all of these layers melded together - retail, dining, entertainment, outdoor lifestyle, lodging and even residential down the line," he said.

The close proximity to the growing population, beaches and development in Northwest Florida make Grand Boulevard the right destination in the right place at the right time. Located between Pensacola and Panama City - approximately 45 miles to either - at the entrance to Sandestin's Golf and Beach Resort. A proponent of sustainable development and protecting the community's natural resources, Howard is ensuring that Grand Boulevard will complement the environment by making green space and landscaping a vital part of the project's design.

Topsail State Preserve spans the south side of Emerald Coast Parkway across the street from Grand Boulevard. In a tribute to this preserve for local flora and fauna, a large public green space has been designated as Grand Park, a major focal point of the town center. Besides providing scenery, Grand Park is designed with flexibility. It will offer space for entertainment, celebrations and community events. Year-round programming such as concerts, movies, and dance and theater performances will occur at Grand Park. One of the most elegant elements of Grand Park is the playful and intricately designed water fountain. Paying homage to the Gulf of Mexico, the fountain visually represents the ebb and flow of the tide and, as with the tide, is constantly changing. Located at the east end of Grand Park, it displays a horizontal design that mimics the coastal tides and projects vertical water at intervals. According to Howard, the fountain is one of the classic characteristics associated with the town center. The dynamic yet tasteful presentation fits within the park, making it part of the landscape. Acoustics from the flowing water combine to make the fountain in Grand Boulevard a highlight within the town center.

About $4.2 million dollars is being spent on landscaping throughout Grand Boulevard. The more than 50 types of trees, bushes and plants will include Medjool date palms, live oaks, bird of paradise, bamboo varietals, crepe myrtles and 600 oversized planters of seasonal varieties. The landscaped walkways around Grand Boulevard will provide shade, and tree canopies at Grand Park will offer respite to those waiting, relaxing, or enjoying the park. At night, the grounds of Grand Boulevard are illuminated throughout.

Determined to meet the growing lifestyle needs of an expanding community of residents and visitors, for 10 years Keith Howard collected parcels of land along U.S. in South Walton. Success of his previous retail ventures convinced him that a mixeduse project - shop, play, work, stay - would be a valuable asset to the Gulf Coast region. "We wanted to build a place with all of the depth and components of a thriving town center and to make sure it will still be here 50 years from now. We will not sacrifice the quality of materials. We?ve built it to last," Howard said. Opting for the highest quality building materials, from solid masonry block frames and authentic traditional stucco exteriors to walnut stained floors in the office space lobbies, space in Grand Boulevard - whether for a professional business, a specialty retailer or fine dining - will offer premium standards.

The grand opening of the major portion of Grand Boulevard will take place in spring 2007. The opening festivities will include and private and public events. Howard Group is responsible for the development of The Market Shops at Sandestin, the Silver Sands Factory Stores, several gulffront resort and residential communities such as Vizcaya at Dune Allen and Stallworth Preserve, as well as Heron Harbor in Destin. Heron Harbor is being designed as a mixed-use community that will include retail, office, residential and marina components.

This article was contributed to The Log by The Howard Group.

30A BEACH RESTORATION TALKS CONTINUE TO FOCUS ON FUNDING

As forward progress continues along the Walton County Scenic Gulf Drive Beach Restoration, talks continue concerning a future restoration project along Scenic 30A. The project is necessary and should be given a very high priority to protect the remaining dune infrastructure before more significant damage can occur. Here's the latest on the Walton County effort to secure a sand source and the funding for the 30A restoration project...

Brad Pickel does not like to guess. "I don't do hypotheticals," said the Tourist Development Council's director of beach management. But sometimes he has little choice. The TDC held a final workshop to discuss the technical issues of a planned beach restoration project along County Road 30A, but the conversation quickly turned from science to money. And when the question was how to fund the $50 to $60 million project, Pickel had few specific answers. "TDC taxes will always serve as a first funding source," said Pickel, "but as far as anything that has or has not been taken off the table, we haven't gotten to that point."

That point will be next year.
On Jan. 9, the TDC will make a formal request to the Walton County Board of County Commissioners for approval of 30A beach restoration. The project would rebuild 12.9 miles of beach damaged by Hurricane Ivan in 2004 and Hurricane Dennis in 2005. The state will share up to 50 percent of the cost of rebuilding the 7.5 miles it has deemed critically eroded. The percentage is based on the quality of beach access in place. The TDC has currently secured $8 million from the state, but that number will increase if the county adds amenities to the beach, such as public restrooms and parking spaces. Federal cost sharing could also cover up to 65 percent of costs, and the TDC is pursuing that funding by performing required feasibility studies. Outside funding will be necessary, as local TDC funding is already behind due to the current Western Walton County Beach Restoration Project, which carries a cost to Walton County of $19.1 million.
"We're $8 million in the hole because of this beach restoration project going on outside," Pickel said. "We more than likely will end up $10 million in the hole."

The TDC has always used bed tax revenue for beach projects, but Pickel said additional funds will need to be located for a project this size. But the project hasn't reached that step yet. "That's a step you do after you have a project approved by the County Commission," Pickel said. One completed step is preliminary beach quality studies and sand source identification. The abundance of available matching sand makes the longterm prognosis for the area good, said LSU geologist Dr. Greg Stone, who is working with Taylor Engineering on the project. Taylor Engineering has constructed multiple models for how future hurricanes would impact the area. In a 20-year storm - a storm with a 5 percent chance of hitting the area in a given year - more than 50 percent of the beach structures along 30A would be impacted. With readily available sand, Taylor Engineering's Michael Trudnak expects they will use a plan that would restore the beaches for protection against 100-year storms - more powerful hurricanes that have a 1 percent chance of striking the area.

Pickel said the BCC has been supportive of beach restoration work. Commissioner Cindy Meadows said the beach's connection to tourism makes the project is a high priority. "It's up there on the top," said Meadows. "It's something that we need to do." The county may look into issuing bonds or securing credit lines to fund the work not covered by outside sources and current TDC taxes. Meadows said she would not support a tax increase. If approved, construction is still at least a year away. Pickel said work would not begin in 2007, as the year will be spent securing permits and fi nalizing funding. Once construction does start, it will take roughly one year to complete.

The Walton Sun

TAXWATCH WANTS SAVE OUR HOME REPEAL

Whoa Nelly...this one is sure to raise some hackles. And as a non-homesteaded homeowner in the Crystal Beach area, I agree with many of the points raised and possible solutions suggested. Though I'm certain the local contingent will resist any hint of change, the fact remains that a large number of non-resident owners are bearing the burden of exhorbitant tax increases noted over the last handful of years. Though this platform will most likely never see the chambers of the House, I'd certainly advise state leadership to take a good look at the out of state contingent and consider the some form of relief for the non-homesteaded homeowners. Here's the article...

Florida's property tax system is in crisis with skyrocketing levies accompanied by explosive local government spending that is exceeding the taxpayers' ability to pay, according to a report by Florida TaxWatch. "Florida taxpayers perceive our property tax system as unfair and unaffordable and they are right," said Dominic Calabro, president and CEO of Florida TaxWatch. "Our research quantifies the growing tax burden and tax shift onto certain classes of property owners that has created two separate, but unequal tax systems in Florida."

The TaxWatch research report urges repeal of a popular three-percent cap on homesteaded property owners' annual tax bills while maintaining taxpayers' current savings, a cap on local property taxes and revenues, and a fairer system for assessing a property's value. The report, "Controlling Escalating Property Taxation and Local Government Spending and Revenue," places part of the blame on the state's "Save Our Homes" amendment in the state constitution. Since it took effect in 1995, it has limited annual increases in homesteaded property to three percent or the increase in inflation, whichever is less.

The report shows that while holding down taxes for many homeowners, the amendment has brought on a myriad of problems, shifting billions of dollars in taxes from homesteaded taxpayers to non-homesteaded businesses and those with second properties, creating inequities in tax treatment, increasing housing costs for renters and new home buyers, and restricting the financial ability of some people to move to a different home. It also shifts taxes among homesteaders, as some benefit more than others.

In addition to repealing the Save Our Homes amendment, Florida TaxWatch recommendations include: allowing homeowners who currently enjoy the protection of the amendment's cap to keep their reduced assessment; capping local governments' revenues; allowing a one-time statewide portability of a homeowner's assessment reduction; assessing commercial property at the value of its existing business, rather than what the property could sell for under the current "highest and best use" criteria.

The Florida Home Builders Association, during its Winter Governmental Affairs Committee Meeting, will discuss and possibly adopt a position on Florida's increasing property tax problem. The FHBA's Governmental Affairs meeting is slated for Jan. 26, from 10 a.m. until 3 p.m. at the HBA of Metro Orlando.

This article was contributed to The Log by FHBA

A VIEW OF DESTIN FROM A MAUI PERSPECTIVE

I recently returned from a trip to Kapalua, Maui and as always, the island provided spectacular ocean views and sunsets daily, with a scattering of rainbows over the shrouded mountaintops. During my stay, I indulged in a number of local real estate publications and drove through numerous south and west Maui areas to satisfy my curiosity and compare our Destin and 30A markets with those of Maui. What I found is this - Destin is still very much a bargain. What the Destin market offers in the way of infrastructure is far greater than that of south and west Maui. From dining to shopping, beaches to clear blue waters and the casual lifestyle appeal, Destin offers every bit as much and more than this tropical beauty of an island.

The south shore drive from Lahaina to Kahalui provides for some spectacular views of the Pacific as well as the surrounding island of Lanai. But as I drove and absorbed the vistas, I reflected on my many casual drives down Scenic Gulf Drive or 30A. The beauty of the natural dune lakes that provide unparalleled views over the pure white sand dunes and outflows to the Gulf. The buzz that occurs with every venture to Seaside or Rosemary Beach. And nothing surpasses the unique styles and designs of our up and coming local area architecture. In the case of the Maui to Destin price comparisons, Destin definitely holds the upper hand. I'll take a meal at Zampieri's Harbor Grille over Roys at Kahana any time. And the home prices in Maui would give Destin homeowners a sense of excellent value. I won't go into a full blown price anaylsis, but I will say, I feel great about my ownership in Destin and I recognize, even moreso, the value that currently exists in our market.

Maui was indeed a wonderful trip. And I came home feeling even better than when I left. Merry Christmas to you all and looking forward to a great 2007...Mark Evans, Eimers Group Real Estate & Land