Bonita Bay Real Estate News | February 2024

Bonita Bay Real Estate News | February 2024

As of  February 1, 2024, there are 120 active listings in our area multiple listing service (MLS) in Bonita Bay; 27 more than last month.

For comparison, last year on Feb. 1, there were 43 listings in Bonita Bay.

There are 35 single-family homes on the market from $725,000 to $6,750,000. The average list price is $2,885,629 and the average days on the market is 78. The combined days on the market is 90.

There are 45 listings in the carriage, mid-rise, townhouse, and attached villa market with prices ranging from $425,000 to $1,150,000. The average list price is $739,468 and the average days on the market is 56. The combined days on the market is 61.

In the high-rise market, there are 40 active listings in Bonita Bay ranging in price from $999,000 to $5,900,000. The average list price is $2,509,525 and the average days on the market is 106. The combined days on the market is 133.

 
A reminder, you have access to the most comprehensive website devoted to Bonita Bay, BonitaBayRealty.com. I’ve included maps, floor plans, photos, and descriptions of each neighborhood within this desirable community.
 
Please contact me for all your real estate needs in Bonita Bay. With over 35 years of helping buyers and sellers in SWFL, my experience will be invaluable in this fast-moving, low-inventory market.

Your Bonita Bay REALTOR®,

Ed Gongola

 


SUMMARY OF BONITA BAY HOME SALES

If you are considering selling your Bonita Bay home, here are some statistics that may help you decide to place your home on the market:

BONITA BAY CARRIAGE, MID-RISE, TOWNHOUSE AND ATTACHED VILLA HOMES

  • Within the last 12 months, there were 69 sales with an average sales price of $690,057; these condos were on the market an average of 40 days; combined days on the market is 85.
  • During the 12 months previous, there were 70 sales with an average sales price of condominiums was $649,682; these homes were on the market for 13 days; combined days on the market is 57.

BONITA BAY HIGH-RISES

  • During the last 12 months, there were 67 sales with an average sales price of $3,027,525; these homes were on the market an average of 123; combined days on the market is 320.
  • During the 12 months previous, there were 68 sales with an average sales price of $2,556,088; these homes were on the market for an average of 56 days; combined days on the market is 238.

SINGLE-FAMILY BONITA BAY HOMES

  • During the last 12 months, there were 55 sales with an average sales price of $2,039,777; these homes were on the market an average of 40 days; combined days on the market is 107.
  • During the 12 months previous, there were 39 sales with an average sales price of $2,260,660; these homes were on the market for an average of 34 days; combined days on the market is 101.

For a list of BONITA BAY homes sold in the last 12 months, click here.

For a list of BONITA BAY homes that are pending at the moment, click here.

 
Meet Ed Gongola and discover how he can help you with his concierge style of service when buying or selling your home.

February 2024 Market Update

 

DOWNING-FRYE: ACTIVE HIGH-END MARKET

“Although Downing-Frye Realty, Inc. had a solid year for sales in 2023, December’s pending sales were a little tepid, not just with our company but in the area in general,” said Mike Hughes, V. P. and Gen. Mgr. of Downing-Frye Realty, Inc. “However, in January, we saw Downing-Frye’s pending sales transactions go up 79% from 87 in December to 155 pending sales for the month of January! When comparing Downing- Frye’s sales activity this January to the previous January, we see that high-end pending sales transactions increased quite a bit, going from 28 pending sales during January 2023 to 38 pending sales during January 2024. This is encouraging for our high-end market. All in all, we are off to a great start, and I’m optimistic that this will be a more active year for sales.” 

BONITA / ESTERO: 2023 OVERVIEW

Buyers had a sense of hesitation in the 2023 Bonita Springs/Estero market. Factors included high interest rates, low inventory and the 2022 hurricane after effects. The number of homes available for sale was 75.2% higher when comparing 2023 to the prior year. Median prices seemed to hold steady but strong with only a 6.7% increase. List price received in 2023 averaged 96.6% which was 3.3% less than 2022. Pending sales decreased by 10.3% and closed sales decreased by 9.3%, both factors pointing to a slower, normalizing market and buyer sensitivity due to the drastic changes the previous years brought. The days a property stayed on the market in 2023 was an average of 45 days. In 2022 that number was at 19 days and in 2021 it was 39 days. 

NAPLES AREA: HOME INVENTORY RISING

Overall inventory of homes in Naples for December increased 45.9% to 3,949 properties from 2,706 properties in December 2022, which means more options for buyers in 2024; especially in the condominium market, which reported a 78.7% increase in inventory. Closed sales in 2023 decreased 13.6% to 8,816 closed sales from 10,206 closed sales in 2022. Even though the Naples area housing market faced several challenges in 2023 like rising interest rates, rising insurance rates, and rising inflation, it still enjoyed a 9.7% increase in overall median closed price in December to $631,000 from $575,000 in December 2022. (In comparison, according to the National Association of Realtors, the median existing- home price in the U.S. increased 4.4% in December to $382,000 from $366,000 in December 2022.) 

MARCO ISLAND AREA: 2023 RESULTS

The Marco Island Area Assoc. of Realtors® reported 2023 figures as compared to 2022: The inventory of 460 properties was up 64%; the number of sales was down 13%; the median sales price for homes was $1.65M (down 8%) and for condos was $721K (up 6%), and the sales volume was $1.2B (down 7%). 

FLORIDA: NEW RESIDENTS; NEW JOBS

Florida Realtors® Chief Economist Dr. Brad O’Connor said, “The state’s economy churned out new jobs at one of the highest rates of any state, and throughout the year, both retirees and working-age adults and their families continued to move here in droves from elsewhere in the country.” Statewide closed sales of existing single-family homes at the end of 2023 totaled 257,679, down 10.3% compared to the 2022 year-end level, and for existing condo-townhouses, 105,411 units sold, down 16%. The statewide median sales price for single-family existing homes at the end of 2023 was $410,000, up 1.9% from the previous year, and for condo-townhouse properties was $322,500, up 5.2%.

USA: PENDING HOME SALES CLIMB

“The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices,” said Lawrence Yun, NAR chief economist. “Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand. Home sales are projected to rise significantly in each of the next two years as the market steadily returns to normal sales activity.” 

Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS® and Marco Island Area Assoc. of REALTORS®
 

Real Estate Trends: What’s in Store for 2024?

By Kim Hays

Florida Realtors chief economist: Watch for the market to reignite over the next several months. “We have weathered the worst of it.”
Watch for the Florida real estate market to slowly start growing in 2024 as interest rates flatten and consumers begin realizing what they’re seeing is the new normal in prices and interest rates, Florida Realtors® Chief Economist Dr. Brad O’Connor said during the annual Florida Real Estate Trends Summit on Friday.

Florida saw almost $200 billion in closed sales in 2023, which wasn’t far below 2022, a super-strong sales year post-pandemic, he told a packed room of Realtors®. Moreover, that number was substantially higher than in the pre-pandemic year of 2018, according to Florida Realtors data. 

“There’s still a lot of money flowing through our industry. We’re not dead,” O’Connor said. “Over the next several months, the market could reignite a little bit. Even though there aren’t as many homes for sale, the ones that are for sale are selling for more.”

The summit was part of this year’s Florida Realtors’ Mid-Winter Business Meetings at the Hyatt Regency Orlando. In addition to O’Connor, the summit featured Dr. Sean Snaith, a nationally recognized economist in the field of business and economic forecasting. Snaith has won multiple awards for the accuracy of his forecasts and research.

Mortgage interest rates have likely peaked, and there’s a good possibility that the Fed could begin cutting rates in the coming months — and that could reinvigorate buyers. O’Connor speculated a cut to below 6% could be in the forecast with the first relief possibly coming by May.

“The psychology of buying or selling a home is closely tied to these rates,” he said.

In addition to interest rates, Florida’s high property insurance prices paired with inflation continue to slow buyer demand, O’Connor said.

“People are still saying the real estate market is going to crash. But that’s just not the case,” he said, explaining that adjustable-rate mortgages, which played a large part in the housing crisis of the aughts, aren’t as widespread. “We have weathered the pandemic with no foreclosure crisis. We are not in a position for a crash to happen.” 

Recession on the horizon?

Both O’Connor and Snaith acknowledged that signs point to a slowdown in economic growth at the national level, but that a full-blown recession isn’t likely. Even so, Florida’s strong economy is well-positioned. 

“We are forecasting a slowdown, not a downturn at this point,” said Snaith. “I think Florida is prepared to weather any national economic storm. We’re ready.”

A few of the factors buffering the Florida real estate market from some national economic trends include:

  • The state’s labor market is strong. (Snaith: “Paychecks are still coming in.”) 
  • Florida’s population growth remains strong at about 1,000 new people a day. (Snaith: “An increase in population means an increase in economic activity.”) 
  • The state is still attractive to “untethered” remote workers. (O’Connor: “The workplace will never be what it used to be.”)
  • Retirees with home equity looking to relocate are unfazed by high interest rates.

Snaith pointed out, however, that “commercial real estate has a much bumpier road ahead than does residential” in 2024. Commercial lending has gotten significantly tighter and is still feeling repercussions of the “work from home” transition.

© 2024 Florida Realtors®

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Home Prices Cool as Inventory Climbs in November

According to the December 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory increased 45.9 percent to 3,949 properties from 2,706 properties in December 2022.

The report showed consistent monthly increases in inventory during the year, which means more options for buyers in 2024; especially in the condominium market, which reported a 78.7 percent increase in inventory. However, according to broker analysts reviewing the December report, the housing market faced several challenges in 2023: rising interest rates, rising insurance rates, and rising inflation. Brokers also point to increased personal travel in 2023 as another reason home sales lagged in 2023. As a result, closed sales in 2023 decreased 13.6 percent to 8,816 closed sales from 10,206 closed sales in 2022.  

Despite the challenges, there were seven months in 2023 when new listings increased more than new listings reported in comparative months in 2022. For December, new listings increased 12.1 percent to 892 new listings from 796 new listings in December 2022. Interestingly, unlike other industries that experience a reduction in price when supply increases, the Naples area housing market enjoyed a 9.7 percent increase in overall median closed price in December to $631,000 from $575,000 in December 2022.

In comparison, according to the National Association of Realtors, the median existing-home price in the U.S. increased 4.4 percent in December to $382,000 from $366,000 in December 2022.  

“Migration is booming in eastern Collier County,” said Cindy Carroll, of Carroll & Carroll Appraisers & Consultants, LLC, who added that it is one of the “last vestiges of affordable housing in our county”. Not surprising, in 2023, the Immokalee/Ave Maria area was the only geographic area tracked by NABOR® that reported an increase in single family home closed sales (+34.1 percent). Conversely, the report indicated a 24.8 percent decrease in closed sales for single family homes nearest the beach. 

“The total cost of homeownership includes a lot more than just the home price,” quipped Jeff Jones, Broker at Keller Williams Naples. “Depending on the type and location of the property, a buyer will appreciate the benefit of working with an experienced local REALTOR® because they can help determine various contributing costs like property and flood insurance, association fees, and potential future assessments or property value adjustments when planned infrastructure projects like road expansions, rezoning, and storm-water improvements happen.” 

On reviewing the report, Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida, said, “One big reason we didn’t outperform last year’s sales is because buyers who had plans to eventually relocate to Florida moved up their timeline. The pandemic convinced a lot of people to buy sooner so the high sales numbers we enjoyed in 2021 and 2022 were stolen sales from what would have taken place in 2023.” 

Carroll added that according to her records, “Rapid market advancement stopped in early 2022. On average, it takes 12 to 24 months for the market to readjust. What we are seeing now are more sellers accepting that this phase is over. And that’s why there was a 29.6 percent increase in the number of price decreases reported in 2023.”  

The NABOR® December 2023 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2023: 

View the December 2023 Market Statistics

“Intermarket sales – like downsizing or upsizing – by current homeowners in Naples didn’t occur at the same rate we once enjoyed in pre-pandemic years,” added Vellano. “People who are locked into a mortgage at 3 percent are very reluctant to let it go.” 

In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., commented, “More choices don’t seem to outweigh the other factors facing buyers right now, and so buyer sense of urgency has diminished. It isn’t like 2021 when a home would be listed and sold in the same day. Plus, many people today are hoping the Fed will drop rates again. But I always remind people that ‘if you see a property you like, there are likely many others who will like it too.’ As we say in the business, ‘marry the house and date the rate’ as you can always look into refinancing if rates go down.”

If you are looking to buy or sell a home in Naples, contact a Naples REALTOR® who has the experience and knowledge to provide an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home and find a Naples REALTOR® on Naplesarea.com.

 
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 6,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
  
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

 
 



 

Why Chose Me as Your REALTOR®?

To learn more about me and my real estate business and Bonita Bay real estate specifically, I encourage you read the About Ed  section as well as the Testimonial section of the site. Over the years, my clients have expressed their satisfaction in my services and I’ve showcased their kind words so you can determine if I am the right REALTOR® to represent you.

 If you are curious as to my sales success, visit my Sold Homes page. This gives a clear picture of exactly what I’ve accomplished and, more importantly, what I can accomplish for you.



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