Red tide not choking real estate market

While the effects of red tide across Southwest Florida waters dominate the community conversation, the residential real estate market is so far weathering the economic storm without pain or panic.

That’s the consensus among real estate industry insiders regarding home sales and business operations. While optimism reigns, a common comment is that it’s too early to tell what the effect will be.

“It’s only been a month or so,” said Greg Owens, president of the Realtor Association of Sarasota and Manatee and a broker and owner with Keller Williams on the Water. “We’re all extremely concerned about it.”

Early data shows the strength of the current market.

“We have not seen any loss of sales or listings due to the national news and the local reality,” said Michael Saunders, founder and chief executive of Michael Saunders & Co.

“Pending sales for August are up 2.3 percent over the same period in July,” she said, citing Trendgraphix figures for Sarasota, Manatee and Charlotte counties in all price points and property types from Aug. 1 to 13 versus July 1 to 13. “Interested buyers are still making offers.”

Read more: Complete coverage of red tide in Southwest Florida

Barry Grooms, a Realtor and co-owner of SaraBay Suncoast Realty in Bradenton and the vice president of the Florida Realtors trade group, also dismissed any negative effects to date. “We have not had a firsthand experience where someone either didn't buy or can't sell but we are being asked the question, ‘Is this normal?’”

Asked if people are taking red tide in stride as just an anomaly that is not a regular or even annual event, Kim Ogilvie, a Realtor with Michael Saunders, said succinctly, “Exactly.”

One buyer told Ogilvie that he would take occasional red tide over shoveling snow all winter in upstate New York.

“There has been no change in behavior on the part of my clients whatsoever,” she said. "Red tide is a recurring event and it is very unfortunate but it’s not an issue that is scaring away any of my clients.

“Not one buyer has altered any plans to come to Sarasota to look at real estate.”

Saunders noted that the popularity of Florida’s Gulf Coast endures for many reasons, not just the beaches and azure Gulf waters. Residents “chose to endure a temporary discomfort like red tide because they love our community and enjoy all that our area offers, including world class arts and cultural attractions, sporting activities, shopping and dining.”

Florida Realtors has never conducted a study on red tide threats to the market, said Marla Martin, communications manager for the Orlando-based organization. “We don’t have data on impacts at this time, and collecting that specifically would require specific research.”

It’s real estate business as usual. Fire sales are not occurring. Nor are buyers spooked.

“Our agents have not changed their usual operations because of red tide,” Saunders said. “Open houses are still scheduled and serious buyers are still buying. It’s important to have our inventory on display and ready to view.

“We do not see any need to, nor recommend, price decreases in light of the situation,” she said. “Savvy sellers who have lived in the area are not new to red tide. They know the prime selling season is fast approaching and they are not waiting to get to their home ready to put on the market.

“Buyers under contract are still feeling confident in their decision to purchase; we have not had any canceled contracts due to red tide,” Saunders said. “For those buyers still in the search process on or near the beach, some have slowed their search but all indications are positive that they intend to resume their search as soon as conditions improve.”

One slice of the real estate market, rentals to vacationers and snowbirds, is feeling some impact. While Michael Saunders focuses on sales, the company does represent a number of weekly and seasonal rental properties.

"Unfortunately, red tide has forced some cancellations in areas like Palm Island,” said Jamie Styers, the company’s rental director. “However, many of our customers have decided not to completely cancel, but to delay their travel plans.”

The office has been able to accommodate many requests to change vacations to alternative weeks or other locations.

Grooms is serving on a task force with Florida Realtors that is evaluating what the industry needs to do to help address water quality statewide.

“As the premier advocates for property rights, it is our duty to push hard the decision makers both locally, statewide and nationally,” he said. “Along with research, we need action now, not waiting for the feds to approve projects that take a decade to build and get tied up in contracts and bureaucracy. We are focused on an approach to not make this a political issue; it needs to be a human issue.”

To combat the scare, Michael Saunders & Co. published an article on its blog reassuring customers that red tide is not new and it is a situation encountered for many decades around the world. The article also contains links to provide further education and ways residents can help.

“Our beaches will return to their award-winning ways soon and this too shall pass,” Saunders said.

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