01 Jan Bonita Bay Real Estate News | January 2023
As of January 1, 2023, there are 34 active listings in our area multiple listing service (MLS) in Bonita Bay; 15 more than last month.
For comparison, last year on January 1, there were 18 listings in Bonita Bay.
There are 7 single-family homes on the market from $825,000 to $5,000,000. The average list price is $2,780,071 and the average days on the market is 48. The combined days on the market is 52.
There are 6 listings in the carriage, mid-rise, townhouse, and attached villa market with prices ranging from $525,000 to $750,000. The average list price is $616,650 and the average days on the market is 32. The combined days on the market is 32.
In the high-rise market, there are 21 active listings in Bonita Bay ranging in price from $1,399,900 to $5,750,000. The average list price is $2,930,752 and the average days on the market is 92. The combined days on the market is 101.
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®,
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 77 sales with an average sales price of $624,483; these condos were on the market an average of 13 days; combined days on the market is 55.
- During the 12 months previous, there were 91 sales with an average sales price of condominiums was $445,421; these homes were on the market for 38 days; combined days on the market is 99.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 52 sales with an average sales price of $2,217,998; these homes were on the market an average of 31; combined days on the market is 90.
- During the 12 months previous, there were 105 sales with an average sales price of $1,571,895; these homes were on the market for an average of 119 days; combined days on the market is 178.
SINGLE-FAMILY BONITA BAY HOMES
- During the last 12 months, there were 41 sales with an average sales price of $2,157,067; these homes were on the market an average of 35 days; combined days on the market is 102.
- During the 12 months previous, there were 94 sales with an average sales price of $1,711,999; these homes were on the market for an average of 60 days; combined days on the market is 135.
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.
January 2023 Market Update
DOWNING-FRYE: OVER $2 BILLION IN CLOSED SALES VOLUME IN 2023
“For the second year in a row, Downing-Frye Realty, Inc. reported a yearly closed sales volume exceeding two billion dollars,” said Mike Hughes, V. P. and Gen. Mgr. of Downing-Frye Realty, Inc. “The closed sales volume for 2022 of $2,077,188,068 was down from the 2021 closed sales volume of $2,400,839,269. The shortage of listings in the area coupled with the rising interest rates held down the closed transactional sides in 2022. In 2021, Downing-Frye had 3,750 closed transactional side for the year. In 2022, Downing-Frye agents had 2,436 closed transactional sides. The average closed sales price in 2022 was up significantly. The Downing-Frye average closed sales price for 2022 was $852,704. In 2021, the average Downing-Frye closed sales price was $640,224. This represented a 34% increase in the Downing-Frye average closed sales price for 2022! Downing-Frye agents are excited about 2023. We continue to raise the bar and set lofty goals. We want to make 2023 our best year ever. Bring it on!”
BONITA / ESTERO: MOSTLY CASH BUYERS
For 2023, the Bonita Springs and Estero local realtors seem to agree that the current market will hold steady for the upcoming year with a gradual increase in inventory and a relatively strong sellers market. In November 2022, the medium sales price was $515,000, a 15.3% increase compared to November 2021, and the time on market averaged 31 days instead of 17 days. Currently benefitting the buyer is the increase in inventory, which sat at 528 active listings in November – a 89.9% increase from November 2021. Although this increase may seem drastic, it’s still only a third or so of what was listed pre-pandemic and still remains at historically low levels. Notably, there were 10% more cash buyers in November 2022 than the previous year, with cash sales amounting to 71.1% of all November sales.
NAPLES AREA: INVENTORY ON THE RISE
Housing inventory in Naples is on the rise but remains low at just 2.8 months of inventory reported in November (a balanced market has a six-month supply). Cash sales in November accounted for 62.3% of sales, indicating that Naples remains a solid investment. Overall inventory in November rose 96.8% to 2,478 properties from 1,259 properties in November 2021. Comparatively, in November 2019 there were 5,563 properties listed with half being single-family homes. Today, the inventory is 63% single-family homes. November’s overall median closed price increased 20.4% to $600,000 from $498,500 in November 2021. November’s report also showed sellers are more willing to negotiate again as the overall percent of list price received decreased 3.3% compared to last November.
MARCO ISLAND AREA: MOSTLY CASH BUYERS
The Marco Island Area Assoc. of Realtors® reported that in November 2022, 14 homes were sold for the median selling price of $1.9M (up 48% from November 2021) averaging 72 days on the market. The total inventory for November 2022 was 243 properties (up 5% from November 2021) with 41 total closed units for a total volume sold of $55M. Cash buyers accounted for 76% of sales.
FLORIDA: HIGHER MEDIAN PRICES
Closed sales in November 2022 of single-family homes totaled 17,009, down 38.2% year-over-year, while existing condo-townhouse sales totaled 7,084, down 38.9%. In the wake of higher interest rates, the rate of price growth for Florida’s home sales continued to slow but remained above the long-term trend. In November, the statewide median sales price for single-family existing homes was $400,000, up 9.6% from the previous year; for condo-townhouse units, it was $307,000, up 12.3%. Statewide inventory was also higher for both existing single-family homes, up 105.2%, and for condo-townhouse units, up 47.4%. The supply of single-family existing homes increased to a 2.8-months’ supply while existing condo-townhouse properties were at a 2.7-months’ supply.
USA: SALES DIP AGAIN IN NOVEMBER
Pending home sales decreased for the sixth consecutive month, down 4.0% from October. NAR Chief Economist Lawrence Yun said, “There are approximately two months of lag time between mortgage rates and home sales. With mortgage rates falling throughout December, home-buying activity should inevitably rebound in the coming months and help economic growth.”
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®
Florida Still No. 1 for International Buyers
Naples Housing Inventory on the Rise
ACCORDING TO THE NOVEMBER 2022 MARKET REPORT BY THE NAPLES AREA BOARD OF REALTORS® (NABOR®), WHICH TRACKS HOME LISTINGS AND SALES WITHIN COLLIER COUNTY (EXCLUDING MARCO ISLAND), THERE WERE 552 OVERALL CLOSED SALES IN NOVEMBER, WHICH IS A 41.4 PERCENT DECREASE FROM 942 CLOSED SALES RECORDED IN NOVEMBER 2021. THE POST-PANDEMIC HOME BUYING SURGE THAT TOOK PLACE WHEN MORTGAGE RATES WERE HISTORICALLY LOW HAS ENDED. HOUSING INVENTORY IN NAPLES IS ON THE RISE BUT REMAINS LOW AT JUST 2.8 MONTHS OF INVENTORY REPORTED IN NOVEMBER (A BALANCED MARKET HAS A SIX-MONTH SUPPLY OF INVENTORY). AS EXPECTED, THE LIMITED INVENTORY ENVIRONMENT IN NAPLES IS RESTRICTING SALES AND INCREASING PRICES. THOUGH BROKER ANALYSTS REVIEWING THE REPORT POINTED OUT THAT CASH SALES ACCOUNTED FOR 62.3 PERCENT OF CLOSED SALES IN NOVEMBER; IT IS AN INDICATION THAT THE NAPLES HOUSING MARKET REMAINS A SOLID INVESTMENT.
|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.|
How Does a Home Equity Loan Affect Credit Scores?
By Kerry Smith
A home equity loan may lower credit scores and make credit more expensive in other areas, such as buying a car – but the HELOC impact may also be minimal.
Homeowners with significant equity may be able to tap some of that through a home equity loan or home equity line of credit (HELOC). Before they do, however, it’s important to consider how taking on an additional loan or line of credit may affect their credit score.
According to the myFICO blog, home equity loans and HELOCs both allow homeowners to access some of the equity they have in their home, either in the form of an installment loan or revolving line of credit. With a home equity loan, they receive the full loan amount upfront and pay it back over a fixed period – often five to 30 years – with a fixed interest rate.
A HELOC is a revolving line of credit, similar to a credit card. Upon approval, they can draw from their home-equity line of credit, typically via a debit card, bank transfer or even paper check. During the draw period, which can last up to 10 years, borrowers are only required to pay interest on the amount they’ve borrowed. However, if they max out their credit limit, they’ll need to pay down the balance if they want to continue making draws.
Once the draw period ends, they enter a repayment period, which can last up to 20 years, during which they’ll pay down the remaining balance. During the draw period, a homeowner can spend their home equity and repay it as their needs change.
Unlike home equity loans, HELOCs typically have variable interest rates, which can fluctuate over time. In some cases, though, the lender may allow them to convert some or all of the balance to a fixed-rate payment plan.
With both types of credit, homeowners may be able to deduct the interest they pay, providing they use the loan funds to buy, build or substantially improve the home used as collateral for the debt. If they use the proceeds for other purposes, though, the interest isn’t tax-deductible. Owners should contact their tax professional for more advice on this, however.
Do home equity loans and HELOCs affect FICO scores?
There are several different ways that second mortgages may impact credit, for better or for worse. Here’s a breakdown:
Payment history: If equity borrowers make payments on time, home equity loans and HELOCs can help them increase their FICO Scores over time. However, if they miss a payment by 30 days or more, it could have a significant negative impact on their credit.
In addition, they’re using their home as collateral. As a result, defaulting on payments could lead to foreclosure. That not only has a major impact on their credit score, they also lose their primary residence.
Amounts owed: How much a borrower owes also impacts their credit score. The debt carried via a home equity loan or HELOC can impact FICO Scores via the “Amounts Owed” category of their score, under the “amount owed on all accounts” subcategory.
How much of the installment loan amounts still owed compared with the original loan amount may also be a factor.
Length of credit history: Adding a new tradeline (the home equity loan) to credit reports will result in the average age of all credit accounts going down. And that could have a negative impact on a FICO Score.
However, home equity loans and HELOCs often have long terms, so they can have a positive impact on credit scores over time, particularly if they’re managed responsibly.
New credit: Each time a consumer applies for credit, a lender will typically run a hard inquiry on their credit reports to evaluate creditworthiness. A new inquiry may knock fewer than five points off a FICO Score, but if they apply for multiple credit accounts it could have a compounding effect.
Inquiries and other changes to a credit report impact everyone’s scores differently, however, depending on their credit history. Some people see bigger changes than others.
The good news: If consumers want to shop around and compare interest rates and terms before deciding on a lender, they can usually do so without worrying about damaging their credit score too much. With newer FICO Score models, mortgage, auto and student loan hard inquiries made within a 45-day rate-shopping period are combined into one for scoring.
Credit mix: Having different types of credit can help boost FICO Scores because it shows that the borrower can manage a range of credit options. Adding a second mortgage could potentially improve the credit mix component.
Check credit scores before applying for home equity
If thinking about applying for a home equity loan or HELOC, it’s important to understand the requirements. Like conventional mortgage loans, second mortgage loans typically require a FICO Score of 620 or above, though some lenders may provide flexibility. Regardless, the higher a FICO Score, the better the chances of securing a lower interest rate.
Additionally, many lenders only allow homeowners to borrow up to a combined loan-to-value ratio (CLTV) of 80%, which means the balances on both their primary and second mortgages can’t exceed 80% of their home’s current value. But again, some lenders may be more flexible with some even going as high as 100%.
In addition to credit history and home value, lenders will also consider debt-to-income ratios (DTI) – the percentage of a homeowner’s gross monthly income that goes toward debt payments. DTI requirements vary by lender, but generally expect a limit of 43%.
Before applying for a home equity loan or HELOC, check FICO® Scores and review credit reports to determine if improvements should be made first. Then, calculate DTI and how much equity is in the home to determine the odds of approval.
Questions? Reach out to individual lenders to learn more.
© 2023 Florida Realtors®
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