D.J. Latest Entry

As I am sure you have noticed, the ultimate transformation of Toledo Blade Boulevard is well underway. I sat down with the city engineer, Pat Collins, recently and his hope was that the project to go to 4 lanes, from 2, should be completed between 12 to 18 months from commencement. If all goes to schedule, the project should be completed sometime between the 4th quarter of 2008 and the 1st quarter of 2009. I also had a chance to see the concept drawings of what the streetscape will look like, upon completion, and I came away very impressed with what the city of North Port has planned for this corridor. Pat also suggested that ultimately, the center of population density will be centered in this area. It’s also nice to see that the commercial construction is coming along nicely at the corner of Price and Toledo Blade and the opening of Publix is just the beginning. The last time I saw the development plan, included is Publix, Walgreen’s, a movie theater, YMCA, Library, several restaurant sites (rumor has it that one may be Chili’s), a home improvement store, several medical and retail office sites and much, much more. In addition, Dooley Mack has cleared the land where the Next Nine restaurant use to be. They currently have plans for a bank site, a convenience store/gas station and several office/retail buildings. Finally, some folks may have noticed the sign on Toledo Blade that shows the site for the new medical facility. Here are some highlights for that facility as published in the Sarasota Herald Tribune, Jan. 4th, 2008, as reported by John Davis: 1. one-third of the facility will be dedicated to emergency care which is owned and operated by Sarasota Memorial Hospital. 2. Another hope is that this facility will lure doctors to the city improving residents' options for on-going medical care. 3. The facility is scheduled to be open in Jan. 2009.

On another note, Premier Communities, Inc. is proud to announce plans for a top notch, 7,000 square foot day care center and a 15,000 square foot office/retail facility to be built on 2 acres of land, along Toledo Blade, on 2 commercial lots in Lakeside Plantation. The day care facility will be the first building erected with the office building to start some months later. The development plans have been approved by the city and our hope is that the day care center will start construction in Feb. ’08 with a completion date of August 1st. The marketing and enrollment program should start in the spring of 2008.

Finally, so many of us in the construction and real estate industry have been impacted by the downturn in the market. We have spent countless hours discussing, planning, and hoping for the turnaround. For the first time in a long while, the Sarasota Herald Tribune has reported the fact that home prices seem to be leveling. On Jan 1st, 2008 Michael Pollick and Michael Braga have reported what appears to be a “bouncing along the bottom” of the market. This is great news as it could be a strong signal that there is no better time for a buyer to go after that home they are looking for. Waiting longer could end up costing the buyer more money in the long run. A few excerpts from the article state the following: 1. “The median price in Sarasota-Bradenton in November was $267,700, down 4 percent from a year ago earlier, but an improvement from $244,300 in September and $263,900 in October, suggesting that the market might have found a bottom after a decline that lasted just over two years”. 2. “Despite the hoopla about the sub-prime mortgage crisis, mortgage brokers are begging for qualified customers with money to put down”. 3. Tierney Foster of Re/Max Gulfstream states, “We have such an amazing inventory. Because we’ve had so many foreclosures and a steep drop in prices, this is now one of the best markets in the country to buy in”. I agree with Tierney and strongly feel there is no better time to buy than now.

D.J. June
Vice-President
Premier Communities, Inc.
Turnberry Trace, LLC

LETTER FROM THE PRESIDENT

In uncertain economic times like we are currently experiencing, it is sometimes hard to stay focused on the personal principles and goals we have set for ourselves. Not a day goes by where the press and the media pound into our heads the impending doom and gloom of a recession and continuing drop in housing prices. One advantage of being in the housing industry for over thirty-five years is I’ve experienced multiple cycles where home values rose and fell. In the late 70’s and early 80’s the prime interest rate hit 21 ½ % and the so called pundits were predicting the deflation of the housing market for many years to come. The same market adjustments occurred in the early 90's and in 2001 after 9/11. Now after banner home appreciation years in 2003, 2004, and 2005 where the same media and press were highlighting the front pages of our local newspapers with Sarasota county leading the nation with 34% and 36% home appreciation, this same group of so called experts would have you think that your home will have no value whatsoever in a few more years! The reality and lesson to be learned is as follows: huge price swings and adjustments in housing values is not the norm; they are anomalies. Those markets that experienced the greatest short term appreciation will usually experience the greatest market correction. If you are an investor in short term buying and selling of real estate then those are the inherent risks you incur. If however you are a first or second home buyer, which the majority of our buyers are, then short term cycles should not cloud your goals. Real estate, in specific your primary residence, has always been the largest single investment that Americans make in their lifetime. The return on investment has been excellent over the long run. All you have to do is remember the very first home you bought. Mine was $27,500 in 1974! We all have stories about our first purchase of real estate and I would venture to say that we all feel that it was the best financial decision we ever made. Yes we are in a market correction and yes home values are downward in the short term. But rest assured that as the inventory of homes gets absorbed and the credit markets adjust from the sub prime fiasco the next cycle of home appreciation will begin. Well built homes in good locations reasonably priced will always be good investments. Premier Communities was founded on this philosophy and will not waiver on our goals and principles.

Sincerely, Mark G. Botts President Premier Communities

It's Not Always as Bad as the Press Describes.

The negativity in the press related to the real estate and building industry continues to make a difficult situation worse. The latest example of this was the article in the Monday Edition of Business Weekly, of the Herald Tribune, titled “Gloom Town”. It depicts North Port in a very negative light related to the commercial vacancy rates. It lists several new construction buildings as 100% vacant. What it doesn’t tell you is that some of those buildings have not been permitted yet. So how can you count a non-existent building as 100% vacant? As usual, a negative spin is placed on a story to sensationalize it. In a time when sales are difficult to come by, these types of articles that are distributed to thousands of people and businesses make potential buyers even that much more nervous. Where is the article that states what a great time to buy this market currently presents? Interest rates are still low, greater inventory presents more options for buyers, and prices have come down.

Price Crossing Well Under Way

Premier Communities, Inc. is located in North Port, Florida. Since our business is centralized here, we are always keeping up with new projects as they evolve. One of the most exciting projects to come in some time is Price Crossing. Now under construction at the intersection of Price Blvd and Toledo Blade Blvd is a commercial development that will undoubtedly be the commercial support center for south North Port. Included in the new development are the following: Public Library, Strip Plaza Retail, Large and Small Retail , Office/Professional sites, Medical Facilities, Walgreens, McDonalds , Gas Station, Publix, Home Improvement Store, Bank, Restaurants, Movie Theater, YMCA. Citizens in south North Port have been waiting for this for a long time and it's a pleasure to see the evolution of "sleepy" little North Port into a municipality that can lead the way for other growing Florida cities to follow.

North Port Florida has all of the amenities that one needs to live comfortably and enjoy the better things in life. Visit our website for more information at www.premiercommunitiesinc.com

Quality vs. Price

I find it interesting that so many people that are looking for a new home are often fixated on one primary fact. The first question, that many of the potential home buyers that frequent our models, is, "What is your price per square foot?" Obviously, price is an important factor in the largest decision most people will make in their lifetime; however, they frequently overlook many other important factors involved in the home buying process. One of those factors is the quality of the construction used in the homes being evaluated. Typically, it is not hard to find numerous quality related issues in the homes that are the cheapest on the market. Service, warranty callbacks, and general communication between homeowner and the builder suffer in the cheaper homes as well.

There is a price associated for having better quality. Most people are aware of this fact but sometimes neglect to consider it when they are evaluating a new home. If finding the cheapest home on the market is what a new homeowner desires, it's not hard to find but if quality is a consideration, the home buying process becomes more difficult to truly evaluate. Premier Communities Inc. prides itself on making the best quality home possible. When a new homeowner moves into one of our homes, the repair list, on average, has less than 5 items on it and we have a warranty service program that is efficient and timely. Premier Communities, Inc. does not attempt to compete with other builders strictly on price because to achieve the quality we strive for, that would not be possible. If a customer does purchase a new Premier Communities home, they can be assured that the quality and service will be second to none. If you're looking for real estate in North Port, Florida or a new home in North Port Florida, consider Premier Communities, Inc. You won't regret it.

Letter from the President

With the incredible amount of television and press coverage given to the housing industry during the past two years, it is easy for the public to become swept up in the “story.” Not a day goes by where you open your daily newspaper or turn on the 6:00 o’clock news and you are inundated with negative stories on the “bubble” in the real estate market and the impending devaluation of your home. After hearing and seeing something long enough, you will eventually start to believe it. The media is in a large way responsible for the correction in the housing market. True, there are some other factors involved such as an over supply of inventory, investor greed, an interest rate spike and some regional economic indicators. And make no mistake about it; housing markets are regional – not national.The reality of our Florida housing market is as follows: (1) the sun still shines most every day in Florida and fair weather will always draw potential buyers; at last count 800 a day flocking into our state (2) well built product in great locations, fairly priced will always sell and appreciate our over time (3) the majority of home buyers are seeking a place to live, not a place to flip and turn in a short period to make a quick hit, and, finally (4) correction in our southwest Florida real estate market was needed; a 30-35% yearly appreciation as experienced in '04 and '05 is not healthy and it could not continue. Which, by the way, the next story you see or hear, about our local real estate market being down 5-7%, remember a 60% rise in ‘04 and ‘05 minus a 5% correction in ‘06 still relates to appreciation of over 50% in a three-year period. When was the last time you read or saw that story in the media?

Sincerely,

Mark G. Botts

President

Premier Communities, Inc.

LOW RATES, COMPETITIVE PRICES, AND GREAT OPPORTUNITY

D.J. June 12/01/2006 Vice-President, Premier communities, Inc. with support from the NAHB Resource Library

Just as it helped to feed the frenzy surrounding housing when the market was performing at record highs, the media generally are now overstating the dimensions and effects of the current contraction. The truth is that the record production and sales recorded in 2004-2005 were unsustainable. The current downswing is an inevitable mid-cycle correction from unsustainable levels of home sales, housing production and house price appreciation to levels that are supported by underlying market fundamentals. As long as the economy remains in good shape, interest rates remain close to current levels, energy prices remain below recent highs and sellers of new and existing homes adjust prices or offer incentives to fit current market realities, the rest of the housing market correction should be of limited depth and duration. It’s likely that the bulk of the downswing in home sales and housing production will occur this year, with market activity stabilizing around mid-2007 and moving back up toward trend by late 2008. This is good news for housing consumers who can take advantage of prices down from peak levels, still very affordable mortgage interest rates and other sales incentives. This is truly a great time to buy a home. Today’s housing market is a different animal completely from the one we saw just a few years back. But with change often comes opportunity, and there’s no exception in this case either. Market economics are creating an excellent environment in which to buy a home. Consider the following advantages for home shoppers today:Prices have leveled off. In some areas, prices have even declined. Regions that were burning hot in the past have begun to cool and level off, giving the buyer a unique opportunity to find affordable housing that may have been out of reach before. Most likely, you can get the house of your dreams and still have a budget leftover for decorating. Houses are staying on the market longer, meaning more choices for you. Previously, home shoppers had to make an offer immediately if they wanted to get their top choice. Today, there are a wide variety of homes for sale, with a better chance of getting the home that fits your needs, without the super-stiff competition from lots of other buyers as was seen in years past.Mortgage rates are historically low. Interest rates are still affordable and according to http://www.bankrate.com/, 30 year fixed mortgage rates are currently remaining near 5.75 percent. Looking back, 1984 saw fixed rate mortgage interests as high as 14.75 percent. Even just six years ago, interest rates ranged from 8 to 8.5 percent. A half-percent rate difference on a $200,000 mortgage, from 6.5 percent to 7 percent, translates into an increase in monthly mortgage payments of $66.00. Over a thirty-year mortgage, that’s an extra $23,926! When rates are this attractive, it just doesn’t make sense to try and time the market. For most Americans, there's no better way to build net worth than home ownership. Home equity, the value of a home minus any mortgage debt, accounts for more than half of the total net wealth of the typical family, making homeownership the primary source of a household's net worth. This makes owning a home the fundamental first step toward accumulating personal wealth. And don’t forget the great tax benefits as well!Homeownership is always attractive. Besides being a stepping stone to a future of financial security, homeownership provides a sense of community and personal satisfaction and inspires civic responsibility. Homeowners are more likely to vote and get involved in local issues. Studies show they are also more content with their lives, owing to the spillover benefits from an increased social circle, a stronger sense of belonging and increased activity in community groups. Homeownership is the cornerstone of the American way of life and the fulfillment of the American Dream. Today’s market allows that dream to be possible for you as well.For more information about homeownership or today’s housing opportunities, visit www.nahb.org/forconsumers. To sign up for NAHB’s free consumer e-newsletter, visit www.nahb.org/housekeys.