This report represents the combined Naples, Bonita Springs, Estero market. Numbers may vary among various
GEO codes so be sure to research individual market segments carefully.
Disclaimer: All information from Sunshine MLS. Accuracy is deemed correct but not warranted.
CLOSED SALES
• Closed units in July were up 33% over July 2007 and the highest July since July 2005.
• Year-to-date closed units up 10% over same period 2007. Volume down 12%.
• Median sales price year-to-date July is down 17% from July 2007. Average sales price down 19%.
• Year-to-date sales under $500,000 represent 70% of all closed sales and are the only price segment showing
an increase over prior year.
PENDED SALES
• July pended sales were up 65% over July 2007. Naples up 72% and Bonita / Estero up 40%.
• Cumulative pended sales for the first 7 months of 2008 are up 16% over prior year.
• Pended sales over $2 million have exceeded same month, prior year for May, June and July, indicating some
strengthening in this market segment.
LISTINGS
• Number of new listings taken in July is less than 2% greater than July 2007.
• Active listing inventory on August 1, 2008 stands at 13,274 in the Naples, Bonita, Estero combined markets
(6348 condominiums and 6926 single family homes). This represents a 4% decline from August 1, 2007.
Saturday, August 23, 2008
Thursday, July 24, 2008
MARKET REVIEW
Naples, Bonita and Estero, Florida real estate board statistics
June 30, 2008
LISTINGS TAKEN / CLOSED SALES COMPARISON
Closings as a percentage of new listings taken peaked in April 2005, when closings reached 83% of new listings. Another way of saying this is that for ever 1.2 listings taken, a sale occurred. This was the period during which inventories decreased, demand was greatest, and prices soared. In May 2005 a consistent decline in this ratio began, ultimately reaching its lowest point in January 2007, when closings were only 10% of new listings taken or one sale for every 10 new listings. These lower percentages continued throughout 2007 and into the first two months of 2008. In April 2008, this percentage reached 30%, its highest in 28 months, and has continued near this level or higher during May and June. This represents one sale for ever 3 listings, a significant improvement. Closings are the best indicator that inventories may be decreasing, assuming the number of new listings continues to stabilize and return to more historic norms. This is validated by the fact that inventory currently stands at approximately a four year supply overall, contrasted to a five year supply at this time a year ago. While we still have some areas that will take several years, and/or significant price reductions to normalize, we are also seeing a growing number returning to a very balanced supply/demand status. The following neighborhoods are examples of areas with a one year, or less, product supply: Aqualane Shores, Bonita Bay, The Brooks, and Pelican Bay single family homes and Bay Colony Shores condominiums. Others are close and rapidly approaching a balanced market.
LISTINGS TAKEN / PENDED SALES COMPARISON
Pended sales as a percentage of listings taken reached 104% in February 2005; an all-time high. They remained close to this level until July 2005 when a decline began which reached its lowest point (17%) in October 2007. This represents about one sale for every 6 new listings taken. Since then, these percentages have been trending upward, reaching their highest in April 2008 when there was one pended sale for every two new listings. While the past two months have pulled back slightly from this high, the year-to-date ratio is approximately one sale for every 3 new listings (31%), representing improvement over the same period prior year, as well as significant improvement from the record low in October.
While not all pended sales close, they are the leading indicator of market shifts. By the time a closing is recorded, usually a two to three month lag period, actual market changes are well underway.
UNITS / VOLUME COMPARISON
The number of closed units year-to-date June 30, 2008 is up 6% over the same period 2007. Year over prior year comparison in June 2007 was still showing a 13% decline over 2006. While dollar volume of closed sales continues to lag the same period 2007, sales under $250,000 are actually up in both units and volume. This is the only price segment to show an increase in volume. The good news here is that much of the excess inventory is in this price range, and absorption in this category will significantly impact overall supply in the market. The 20% year to date decrease in sales over $2 million is the main reason for volume decreases.
AVERAGE SALES PRICE / MEDIAN PRICE COMPARISON
Average sales price year to date June 2008 is down 19% compared to this period 2007. Median sales price is down 16%. The lower average sales price, attributable to the large number of closed sales below $500,000, still represents a 19% increase over the same period 2004. It is always a good idea to check average prices by neighborhood. Although there have been decreases in all segments, some specific areas may or may not mirror overall market performance.
CONCLUSIONS
Two of the key indicators of market change are the Listings Taken / Closed Sales Comparison and the Listings Taken / Pended Sales Comparison. Both of these have significantly improved over the year to date June 2007 period, indicating that the market recovery is underway, although still somewhat sluggish. The remaining two indicators which we monitor, the Units / Volume Comparison and Average Sales Price / Median Sales Price Comparison are mixed. The fact that units are up while volume is down definitely substantiates that more buyers have returned to the market and are actually making buying decisions and closing on properties. The point at which volume shifts positively will be determined by the by the pace at which the over $2 million properties begin to move in greater numbers. While it is still too early to call the timing, both May and June 2008 have shown pended sales increases over prior year in this category. That leaves one remaining category – Average Sales Price / Median Sales Price Comparison. It is likely that we will continue to see declining averages over the coming months as lower priced inventory continues to be absorbed. However, due to stabilizing conditions in the markets mentioned earlier in this report, as well as others approaching stabilization, some areas may actually begin to see price increases again within the short term. At the very least, one should not expect to see dramatic declines from current levels in these areas.
Expect to see increased inventories in certain segments as more foreclosed properties come on the market. These could show a shorter listing period that others due to the fact that banks do not want to be in the business of owning residential real estate, so will be motivated to get them sold quickly.
A final word on the four year supply of properties currently on the market. Remember the four year estimate assumes that absorption rates will remain at the same level as they have in the past year; probably the slowest in the history of the area. If the pace of sales increases, as it has already done in some areas, the absorption will be much faster. The problem is no one can accurately know this until it is too late. Best advice is still that if you are in the market to buy for personal use or long term investment, this is a great time to buy. If you are looking for the “quick flip”, this is probably not the time!
Thursday, May 29, 2008
House Market Seems to Stabilize in Southwest Fla.
House Market Seems to Stabilize in Southwest Fla.
by St. Petersburg Times
Photo: iStockAfter free falling for more than two years, west Florida homes sales appear to be bottoming out.
April's housing activity presented a cautiously optimistic picture: Sales are stabilizing as home sellers cut prices to entice buyers. Here's some evidence:
• Sales were up from April 2007 to April 2008 in some of the worst hit markets south of the Tampa Bay area. Sarasota, Punta Gorda and Fort Myers-Cape Coral all reported rising sales vs. a year earlier.
• Tampa Bay area single-family home sales slipped 8 percent year to year, but Hillsborough and Citrus counties both reported little or no decline. Although Pinellas County Realtors said sales were down 10.7 percent, condo sales were higher than they've been since June 2007.
• Pending sales, homes under contract waiting to close, were up in April in every county in the Tampa Bay area compared to a year earlier.
"Sales are stabilizing, but they're stabilizing at a level that's still low," University of Florida economist David Denslow said after Friday's release by the Florida Association of Realtors. "But that's better news than having sales continue to plunge."
Higher sales correlated with lower prices. Where prices dropped the most, like Fort Myers, sales spiked. Business in Fort Myers surged 41 percent in April. The Tampa region's median home price is $176,000, 26 percent below the high mark of $239,300 in June 2006.
"Price, price, price is what sells a house. Period," said Nikki Ubaldini, a Palm Harbor real estate broker affiliated with Keller Williams Realty. "Nine of 10 people just want to know they're paying a fair price."
Denslow assumes home prices won't flatten statewide until 2009. And he expects no sustained home price rise until 2011, when the first batch of baby boomers crosses the age of 65.
April sales in Pinellas, Pasco, Hillsborough and Hernando counties totalled 2,087. That's 8 percent below April 2007's total of 2,257. Purchases approximated those of April 1999.
by St. Petersburg Times
Photo: iStockAfter free falling for more than two years, west Florida homes sales appear to be bottoming out.
April's housing activity presented a cautiously optimistic picture: Sales are stabilizing as home sellers cut prices to entice buyers. Here's some evidence:
• Sales were up from April 2007 to April 2008 in some of the worst hit markets south of the Tampa Bay area. Sarasota, Punta Gorda and Fort Myers-Cape Coral all reported rising sales vs. a year earlier.
• Tampa Bay area single-family home sales slipped 8 percent year to year, but Hillsborough and Citrus counties both reported little or no decline. Although Pinellas County Realtors said sales were down 10.7 percent, condo sales were higher than they've been since June 2007.
• Pending sales, homes under contract waiting to close, were up in April in every county in the Tampa Bay area compared to a year earlier.
"Sales are stabilizing, but they're stabilizing at a level that's still low," University of Florida economist David Denslow said after Friday's release by the Florida Association of Realtors. "But that's better news than having sales continue to plunge."
Higher sales correlated with lower prices. Where prices dropped the most, like Fort Myers, sales spiked. Business in Fort Myers surged 41 percent in April. The Tampa region's median home price is $176,000, 26 percent below the high mark of $239,300 in June 2006.
"Price, price, price is what sells a house. Period," said Nikki Ubaldini, a Palm Harbor real estate broker affiliated with Keller Williams Realty. "Nine of 10 people just want to know they're paying a fair price."
Denslow assumes home prices won't flatten statewide until 2009. And he expects no sustained home price rise until 2011, when the first batch of baby boomers crosses the age of 65.
April sales in Pinellas, Pasco, Hillsborough and Hernando counties totalled 2,087. That's 8 percent below April 2007's total of 2,257. Purchases approximated those of April 1999.
Monday, May 19, 2008
Naples-area home sales increase in April
Lower prices have lured back buyers, who are feeling now is the time to buy.
In April, Realtors in the Naples area had their busiest month of the year.
Overall, home sales rose 6 percent to 472, compared to 445 last year, according to a monthly report by the Naples Area Board of Realtors (NABOR).
Meanwhile, pending home sales increased 25 percent to 616, from 494 a year ago.
The report tracks home sales in Collier County, excluding Marco Island.
"I think we’ve hit bottom in Naples and that comes from the economists who really study this," said Arlene Carozza, a Realtor and NABOR’s president.
In an interview with Mad Money host Jim Cramer on CNBC earlier this week, Bob Toll, CEO of homebuilder Toll Brothers, described the west coast of Florida as its "one ray of hope."
"Naples is back. It’s amazing," he said, adding that his company is now out of spec inventory here and its prices are starting to rise in this market.
According to the NABOR statistics, the median price for all homes in the Naples area dropped more than 23 percent last month to $300,000, from $390,000 a year ago.
Joe Ballarino, president of Amerivest Realty in Naples, said a spike in foreclosures and short sales _ sales made for less than the bank is owed _ have driven prices down faster in this market.
In April, the median price dropped to $258,000 for condos, and to $400,000 for single-family homes.
"You have people walking away from properties and banks that just want to get their loan values and are taking less than what they are owed on the property," Ballarino said.
In April, Collier County had 1,043 foreclosure-related filings, up almost 800 percent from a year ago and nearly 40 percent from March, according to Irvine, Calif.-based RealtyTrac. Those filings include notification of pending lawsuits, default notices, and bank repossessions.
The trend is expected to continue.
In April, Collier Clerk of Courts Dwight Brock recorded 641 new foreclosure filings.
Buyers haven’t seen such good deals on homes in four to six years, and prices still are adjusting, Ballarino said.
"Those bottoms will be found neighborhood by neighborhood," Ballarino said.
In his own research, he found pending sales in the Naples and Bonita Springs markets in April reached their highest levels since August 2005. In the two markets, there were 853 last month, up from 652 a year ago _ a 30 percent increase.
Homes priced at less than $300,000 are still seeing the most activity. Sales in this range increased 62 percent to 238, from 147 a year ago.
Sales for single-family homes under $300,000 increased 177 percent to 72, from 26 a year ago.
Meanwhile, the pendings grew 337 percent to 131, from 30 a year ago.
Another 166 condos sold for less than $300,000, up from 121 a year ago, in April, and pending sales grew to 163, up from 125 last year.
Other parts of the market are starting to see more activity, too. Pending sales for all homes in the $300,000-to-$500,000 range increased 18 percent.
While overall sales were up in April, condo sales declined 1 percent. There were 270 sales, versus 273 in the same month last year.
However, pending condo sales increased 6 percent to 291 last month, from 275 a year ago.
"I think buyers are starting to realize that the sellers’ pricing is really not going to go down too much more. So the buyers are just starting to come off the sidelines," said Russ Weyer, a senior associate for Orlando-based economic consultant Fishkind & Associates.
By neighborhood, North Naples saw the most sales at 144 last month. The Naples beach area came in second with 133.
Some think the passing of Amendment 1 is starting to help spur sales in Southwest Florida. The amendment, passed by voters in January and now in effect, cut property taxes an average of $240 a year for primary homeowners by doubling the homestead exemption. It also allows residents to take or "port" their Save Our Homes tax protection with them when they move anywhere in Florida and puts a 10 percent cap on tax assessments for non-homestead properties.
"I think some of the activity is due to that. There is no doubt. But there is no way to measure it," Ballarino said.
International buyers also are showing more interest in Southwest Florida because their money is worth so much more against a weak dollar.
Broker Michael Hughes at Downing-Frye Realty Inc. in Naples, said his agents wrote 300 contracts in April, up from 188 in 2007 and 127 in 2006. And those contracts weren’t just for homes under $300,000, which he said was encouraging.
He said homes in the $300,000 to $500,000 range "started to show some pretty big improvement."
"I think a lot of people realize that right now the financing is very reasonable, and yet that financing can change," Hughes said.
Showings still are pretty strong, though the busy winter season has come to an end, he said. He expects May to be another good month.
"The rest of the year remains to be seen. But it’s nice to see us starting to string some nice months in a row," Hughes said.
This year his agents have written 870 contracts, which he describes as "very good for these challenging times."
While activity is up and signs are pointing to a better market, the real estate recovery in Southwest Florida won’t be immediate, with so many homes still on the market, said Weyer of Fishkind & Associates.
"We will probably be there a little while at the bottom before things really start to turn," he said.
In April, Realtors in the Naples area had their busiest month of the year.
Overall, home sales rose 6 percent to 472, compared to 445 last year, according to a monthly report by the Naples Area Board of Realtors (NABOR).
Meanwhile, pending home sales increased 25 percent to 616, from 494 a year ago.
The report tracks home sales in Collier County, excluding Marco Island.
"I think we’ve hit bottom in Naples and that comes from the economists who really study this," said Arlene Carozza, a Realtor and NABOR’s president.
In an interview with Mad Money host Jim Cramer on CNBC earlier this week, Bob Toll, CEO of homebuilder Toll Brothers, described the west coast of Florida as its "one ray of hope."
"Naples is back. It’s amazing," he said, adding that his company is now out of spec inventory here and its prices are starting to rise in this market.
According to the NABOR statistics, the median price for all homes in the Naples area dropped more than 23 percent last month to $300,000, from $390,000 a year ago.
Joe Ballarino, president of Amerivest Realty in Naples, said a spike in foreclosures and short sales _ sales made for less than the bank is owed _ have driven prices down faster in this market.
In April, the median price dropped to $258,000 for condos, and to $400,000 for single-family homes.
"You have people walking away from properties and banks that just want to get their loan values and are taking less than what they are owed on the property," Ballarino said.
In April, Collier County had 1,043 foreclosure-related filings, up almost 800 percent from a year ago and nearly 40 percent from March, according to Irvine, Calif.-based RealtyTrac. Those filings include notification of pending lawsuits, default notices, and bank repossessions.
The trend is expected to continue.
In April, Collier Clerk of Courts Dwight Brock recorded 641 new foreclosure filings.
Buyers haven’t seen such good deals on homes in four to six years, and prices still are adjusting, Ballarino said.
"Those bottoms will be found neighborhood by neighborhood," Ballarino said.
In his own research, he found pending sales in the Naples and Bonita Springs markets in April reached their highest levels since August 2005. In the two markets, there were 853 last month, up from 652 a year ago _ a 30 percent increase.
Homes priced at less than $300,000 are still seeing the most activity. Sales in this range increased 62 percent to 238, from 147 a year ago.
Sales for single-family homes under $300,000 increased 177 percent to 72, from 26 a year ago.
Meanwhile, the pendings grew 337 percent to 131, from 30 a year ago.
Another 166 condos sold for less than $300,000, up from 121 a year ago, in April, and pending sales grew to 163, up from 125 last year.
Other parts of the market are starting to see more activity, too. Pending sales for all homes in the $300,000-to-$500,000 range increased 18 percent.
While overall sales were up in April, condo sales declined 1 percent. There were 270 sales, versus 273 in the same month last year.
However, pending condo sales increased 6 percent to 291 last month, from 275 a year ago.
"I think buyers are starting to realize that the sellers’ pricing is really not going to go down too much more. So the buyers are just starting to come off the sidelines," said Russ Weyer, a senior associate for Orlando-based economic consultant Fishkind & Associates.
By neighborhood, North Naples saw the most sales at 144 last month. The Naples beach area came in second with 133.
Some think the passing of Amendment 1 is starting to help spur sales in Southwest Florida. The amendment, passed by voters in January and now in effect, cut property taxes an average of $240 a year for primary homeowners by doubling the homestead exemption. It also allows residents to take or "port" their Save Our Homes tax protection with them when they move anywhere in Florida and puts a 10 percent cap on tax assessments for non-homestead properties.
"I think some of the activity is due to that. There is no doubt. But there is no way to measure it," Ballarino said.
International buyers also are showing more interest in Southwest Florida because their money is worth so much more against a weak dollar.
Broker Michael Hughes at Downing-Frye Realty Inc. in Naples, said his agents wrote 300 contracts in April, up from 188 in 2007 and 127 in 2006. And those contracts weren’t just for homes under $300,000, which he said was encouraging.
He said homes in the $300,000 to $500,000 range "started to show some pretty big improvement."
"I think a lot of people realize that right now the financing is very reasonable, and yet that financing can change," Hughes said.
Showings still are pretty strong, though the busy winter season has come to an end, he said. He expects May to be another good month.
"The rest of the year remains to be seen. But it’s nice to see us starting to string some nice months in a row," Hughes said.
This year his agents have written 870 contracts, which he describes as "very good for these challenging times."
While activity is up and signs are pointing to a better market, the real estate recovery in Southwest Florida won’t be immediate, with so many homes still on the market, said Weyer of Fishkind & Associates.
"We will probably be there a little while at the bottom before things really start to turn," he said.
Friday, May 2, 2008
Hold please.....
Who out there works for a company or organization that allows it's customers to remain on hold for eternity? Who is at the other end of these calls? I don't get it. I am currently on hold with a bank out of Texas and the timer on my phone has just gone past 20 minutes. No one has come back on the line to let me know there wasn't a thermonuclear explosion in Irving, Texas- so I am assuming that short of a cataclysmic situation, I am just being ignored. Ironically, before you are put on hold the recording says that their first priority is customer service and your call will be answered as soon as possible. if any of you reading this work in a customer service position....PICK UP THE PHONE!!!
Tuesday, April 29, 2008
John R. Wood Realtors 50th Anniversary
The link below is from a recent article in the Naples Daily News highlighting John R. Wood and the real estate brokerage he founded 50 years ago. I am proudly associated with the company as an agent and thought I would pass this along. Happy reading!
Saturday, March 8, 2008
Another installment from Joe Spelczek...
Here is a typical Naples magazine that features an average woman on a 56 foot yacht wearing a matronly bathing suit. The publication promotes the simplicity and understatement of the Naples lifestyle by offering helpful tips like where to have your Bentley Continental Flying Spur serviced or finding a good family plastic surgeon. A little local publication for the run of the mill folks who manage to scratch out a living here at the tip of Southwest Florida. This is the second edition and while it is an eye catcher, I couldn't help but notice that right next to this girl's average, pale, unsexy stomach...just to the left ( hard to see on this photo) is a headline that reads "tropical tastes waterfront dinning". We drive Bentley's but we can't spell. A preview for the upcoming edition: "Enjoy our wite, sandy beeches and expeeriunce the Naples lifestile...." Maybe as the spelling gets worse the models get better, we'll see next month.
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