01 Sep Bonita Bay Real Estate News | September 2024
As of September 1, 2024, there are 81 active listings in our area multiple listing service (MLS) in Bonita Bay; 4 less than last month.
For comparison, last year on Sept. 1, there were 39 listings in Bonita Bay.
There are 22 single-family homes on the market from $920,000 to $5,750,000. The average list price is $2,531,454 and the average days on the market is 130. The combined days on the market is 165.
There are 36 listings in the carriage, mid-rise, townhouse, and attached villa market with prices ranging from $374,900 to $1,200,000. The average list price is $681,756 and the average days on the market is 131. The combined days on the market is 165.
In the high-rise market, there are 23 active listings in Bonita Bay ranging in price from $998,000 to $5,399,000. The average list price is $2,441,609 and the average days on the market is 149. The combined days on the market is 152.
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 68 sales with an average sales price of $689,866; these condos were on the market an average of 60 days; combined days on the market is 112.
- During the 12 months previous, there were 59 sales with an average sales price of condominiums was $686,194; these homes were on the market for 33 days; combined days on the market is 79.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 59 sales with an average sales price of $2,194,789; these homes were on the market an average of 100; combined days on the market is 166.
- During the 12 months previous, there were 75 sales with an average sales price of $3,338,740; these homes were on the market for an average of 123 days; combined days on the market is 435.
SINGLE-FAMILY BONITA BAY HOMES
- During the last 12 months, there were 78 sales with an average sales price of $2,036,821; these homes were on the market an average of 41 days; combined days on the market is 110.
- During the 12 months previous, there were 47 sales with an average sales price of $2,295,165; these homes were on the market for an average of 35 days; combined days on the market is 106.
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.
September 2024 Market Update
DOWNING-FRYE: BUYERS ARE ENCOURAGED
“With 430 closings this summer, Downing-Frye agents remained busy!” said Mike Hughes, V. P. and Gen. Mgr. of Downing-Frye Realty, Inc. “Pending sales were steady through the summer months. The real estate industry continues to experience some headwinds from higher interest rates, higher insurance rates and changes within our industry. However, we are also seeing some encouraging signs as well, as more insurance companies are entering the state of Florida. There is also talk about the potential for interest rates to go down in late 2024 and into 2025. Eighteen months ago we were challenged with a lack of inventory to sell, which is no longer an issue as the area has seen a significant increase in inventory that is on the market. If you are a buyer, you should be encouraged. Buyers have a wide range of inventory to view and also have interest rates that are trending lower. With the upcoming opening of the Naples Great Wolf Lodge, you can experience a beautiful resort while looking for property in Southwest Florida!”
BONITA / ESTERO: JULY LISTINGS INCREASE
The Bonita Springs/Estero Realtors® reported July 2024 figures as compared to July 2023:
For single-family homes: new listings were up 10.3% while pending sales were down 9.5%. The median sales price of $689,000 was down 4.4% and the average sales price of $811,306 was down 8.3%.
Inventory was up 37.6% to 531 single-family homes for a 4.9-months’ supply.
For Condominiums: new listings were up 1.8%, and pending sales were down 17.9%. The median sales price was up 15.5% to $495,000 and the average sales price was $559,009, up 8.9% from July 2023.
Inventory was up 67.6% to 605 condos for a 6.4-months’ supply. On average, sellers received 95.7% of list price for single-family homes and 94.4% for condominiums.
NAPLES AREA: SOFT SUMMER FOR SALES
Overall closed sales during July decreased 2.6% to 608 closed sales from 624 closed sales in July 2023. Pending sales activity reported for July decreased 15.%. Overall inventory has been climbing for the last 28 months. For July, inventory increased 50.5% to 4,352 properties from 2,892 properties in July 2023. There are 6.2 months of inventory available, up 59% from 2.9 in July 2023. Conversely, overall closed sales have been declining since July 2021. On average, home values in Naples have increased 50% since 2019, due in large part to the buying frenzy of the pandemic. The percent of list price received in July decreased 1.4% to 94.8% from 96.1% in July 2023. Median closed price during both June and July decreased .8%. In July, the overall median closed price was $590,000 compared to $595,000 in July 2023. For both summer months, reductions in the median closed price of single family homes drove the overall median closed price decrease. Conversely, the median closed price of condominiums increased in June and July.
MARCO ISLAND AREA: INVENTORY UP IN JULY
The Marco Island Area Assoc. of Realtors® reported July 2024 figures as compared to July 2023: The inventory of 549 properties was up 20%; the number of sales (63) was up 19%; the median sales price for homes was $1.5M (down 23%), for condos was $615K (down 24%), and for lots was $915K (up 208%). The sales volume was $84.4M (down 12%).
FLORIDA: INVENTORY RISES IN JULY
According to Brad O’Connor, Chief Economist for Florida Realtors®, the inventory of single-family homes continues to rise. New listings of single-family homes remained in line with what we would have expected in the pre-pandemic market, but there were almost 11% more new listings this July compared to last year’s unusually low count. Meanwhile, nearly 14% more townhouses and condos came onto the market in July compared to a year ago. In July, the median sale price for closed single family home sales in Florida was about $417,000, up a half a percent from a year ago, and for townhouses and condos was $315,000, down by 1.3%.
USA: HOME SALES UP IN JULY
Existing-home sales grew 1.3% in July to a seasonally adjusted annual rate of 3.95 million, stopping a four- month sales decline that began in March. However, sales slipped 2.5% from one year ago. The median existing-home sales price elevated 4.2% from July 2023 to $422,600, the 13th consecutive month of year- over-year price gains. The inventory of unsold existing homes edged higher by 0.8% from the prior month to 1.33 million at the end of July, or the equivalent of 4.0 months’ supply at the current monthly sales pace. “Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
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Starting October 1, 2024, there is a new flood disclosure requirement in Florida. Florida Statute 689.302 requires a seller to complete and provide a flood disclosure to a buyer of residential real property. This disclosure must be done at or before the time of a contract being executed.
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July Report Shows Soft Summer for Home Sale
Closed sales of properties in Naples during June and July declined compared to the same months in 2023. According to the July 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales during July decreased 2.6 percent to 608 closed sales from 624 closed sales in July 2023.
Furthermore, pending sales activity reported for July decreased 15.7 percent, convincing broker analysts who review the report that we can expect similar closed sales performance in August.
“We can’t expect every year will be a record breaker,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Overall, the first half of 2024 has been average for sales. We still have buyers who want to be here, and new listings have remained strong, which provides even more options for buyers this summer.”
Chasing Yesterday’s Wave
Broker analysts reviewing the monthly Market Reports have been comparing NABOR® data from 2019 to data reported in 2024 – pointing to the fact that 2019 was the last year when our housing market activity was “normal” (pre-pandemic). Budge Huskey, CEO, Premier Sotheby’s International Realty, pointed out, “If we compare year-to-date [2024] market results to 2019, sales are down 16 percent. For July, we are down 29 percent compared to July 2019.”
“We borrowed sales from the future during the pandemic,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. The mad rush to relocate to Southwest Florida during the pandemic set a wave in motion based on the temporary increase in demand. Naturally, in response, prices began to increase as inventory vanished; down to 1,042 homes in inventory in December 2021. But this rush was short lived, and many sellers have been slow to adapt to a new reality.
Overall inventory has been climbing for the last 28 months. For July, inventory increased 50.5 percent to 4,352 properties from 2,892 properties in July 2023. There are 6.2 months of inventory available, up 59 percent from 2.9 in July 2023. Conversely, overall closed sales have been declining since July 2021, or 36 months ago.
Priced Right to Sell
Precisely put by Huskey, “inventory levels have returned to more historically normal levels yet well above where we were the last couple of years. With the additional competition for sellers, too many still expect to receive aspirational prices when we have fewer buyers seeking greater values.”
On average, home values in Naples have increased 50 percent since 2019, due in large part to the buying frenzy of the pandemic. But it’s over. Inventory has increased substantially, and sellers need to heed their REALTOR®’s recommendation to price their homes competitively for today’s market. Factors such as high interest rates and high insurance premiums are creating financing obstacles for a large number of buyers.
Additionally, the number of cash sale transactions is decreasing, 51.9 percent in July compared to 61.2 percent in January 2024.
“Prices are coming down incrementally, not significantly, but there is indication in the July report that more negotiations are taking place in both the low- and high-end price points of the market,” said Dominic Pallini, Broker at Vanderbilt Realty, Inc. The percent of list price received in July decreased 1.4 percent to 94.8 percent from 96.1 percent in July 2023.
Median closed price during both June and July decreased .8 percent. In July, the overall median closed price was $590,000 compared to $595,000 in July 2023. For both summer months, reductions in the median closed price of single family homes drove the overall median closed price decrease. Conversely, the median closed price of condominiums increased in June and July.
“If interest rates come down too much, like around 5 to 5.5 percent, we will likely see a rise in prices,” added Pallini. “In my experience, we need to have at least 12 months of inventory before we see prices hold steady during rate drops.”
The NABOR® July 2024 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 (singlefamily and condominium) findings for 2024:
Old Habits are Hard to Break
According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, Naples has two distinct markets right now. “There is plenty of inventory within five miles of the beach, but virtually none east of Collier Boulevard. The rate of growth in Golden Gate Estates and in and around Ave Maria today is unreal.”
A venerated property appraiser, Carroll confirmed Huskey’s comment about less motivated sellers in Naples adding that she tracks inventory levels throughout Naples and is seeing behavior that is reminiscent of 30 years ago when people listed their homes during winter season, and if it didn’t sell cancelled the contract before summer. “For instance, Aqualane Shores had 3.5 years of inventory in January 2024, but in July it had 1.6 years of supply. This drop is not due to sales because we see a large number of the same properties re-added to the market each winter. But this behavior is not occurring in Golden Gate Estates, where demand is outpacing supply.”
Sellers should be forewarned: If you are attempting to time the market because you believe you can get a higher price for your home when more buyers are predicted to be in town during the winter season, you may regret your decision. More inventory will require sellers price homes more competitively and entertain more buyer negotiations.
As Hughes put it, “The specter of declining interest rates cuts both ways. If buyers wait until interest rates drop, prices are likely to increase. Likewise, if a seller waits to list a home during winter season, the added competition may also put downward pressure on the price.”
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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.
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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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