01 Apr Bonita Bay Real Estate News | April 2021
As of April 1, 2021, there are 27 active listings in our area multiple listing service (MLS) in Bonita Bay; 22 less than last month. There are 5 single-family homes ranging in price from $1,195,000 to $3,675,000. The average list price is $2,144,000 and the average days on the market is 91. The combined days on the market is 158. In the carriage, mid-rise, townhouse, and attached villa market, there are zero active listings in Bonita Bay. In the high-rise market, there are 22 active listings in Bonita Bay ranging in price from $889,000 to $7,295,000. The average list price is $2,607,859 and the average days on the market is 239. The combined days on the market is 263.
Last year on April 1, there were 120 listings in Bonita Bay.
Whether you are buying or selling, if you are looking for REALTOR® representation, think of me.
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 94 sales with an average sales price of $395,034; these condos were on the market an average of 89 days; combined days on the market is 158.
- During the 12 months previous, there were 83 sales with an average sales price of condominiums was $389,202; these homes were on the market for 82 days; combined days on the market is 135.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 83 sales with an average sales price of $1,305,286; these homes were on the market an average of 162; combined days on the market is 256.
- During the 12 months previous, there were 50 sales with an average sales price of $1,304,825; these homes were on the market for an average of 194 days; combined days on the market is 270.
SINGLE-FAMILY BONITA BAY HOMES
- During the last 12 months, there were 74 sales with an average sales price of $1,483,829; these homes were on the market an average of 106 days; combined days on the market is 182.
- During the 12 months previous, there were 61 sales with an average sales price of $1,189,651; these homes were on the market for an average of 126 days; combined days on the market is 207.
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.
April 2021 Market Update
ONE OF OUR BEST QUARTERS EVER
“This year is off to a great start,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “We’ve had over 1,400 pending sales during the first quarter with our best ever performance in the luxury market. During March alone we had 553 pending sales with 17 percent of them over $1 million. A lack of inventory continues to feed a sense of urgency. Buyers who view properties are moving quickly, hoping to avoid multiple-offer situations. Fortunately, we train our agents to have the skillset to confidently make sure their customers’ contracts are presented in the most attractive way. We anticipate the summer season being busier than normal as sellers continue to take advantage of a market that swings in their favor.”
BONITA / ESTERO: HIGH BUYER DEMAND
Comparing February 2021 with February 2020: Buyer interest was robust, leading to multiple offer situations. Sales in the $2 million+ price segment had the strongest increase of 122.2 percent. Sales of single-family homes with 4 or more bedrooms increased by 38.9 percent. Inventory shortages continued with a 76.7 percent drop in available properties. In February there were only 200 properties on the market representing one month’s supply. New listings were down by more than 30 percent. The median closed sales price was $519,000, 14 percent more than a year ago.
NAPLES AREA: BUYERS SEE VALUE
Overall closed sales of existing homes in Naples for February increased 62 percent to 1,307 closed sales 807 closed sales in February 2020. Buyers are scooping up the available inventory of homes in all geographic locations within Naples almost as fast as they come onto the market. Inventory fell 68.8 percent in February to 2,224 homes from 7,127 homes in February 2020. There were more pending sales (2,299) at the end of February than inventory (2,224), resulting in a drastic drop to only a 2-months supply of homes available to buyers. The demand in Naples is so high that its convincing many homeowners to downsize and take advantage of the market’s demand and enjoy a nice profit.
MARCO ISLAND AREA: SALES REMAIN STRONG
The Marco Island Area Assoc. of Realtors® reported that March 2021 compared to March 2020 showed the following: Total inventory (375 properties) was down by 75.36 percent and closed sales (382 properties) were up by 61.18 percent with a dollar volume ($285,568,568) that was 74.16 percent higher. The March median sales price was $515,000, which is 5.34 percent higher than March 2020.
FLORIDA: STRONG SELLER’S MARKET
Florida’s housing market in February reported more closed sales, higher median prices, more new pending sales and increased pending inventory in February 2021 compared to a year ago. Closed sales of single-family homes statewide in February totaled 23,947, up 15.7 percent year-over-year, while existing condo/townhouse sales totaled 11,379, up 28.7 percent. The statewide median sales price for single-family existing homes was $314,900, and for condo-townhouse units was $233,240, with both median prices up 16.6 percent over the year-ago figure. Inventory remained constrained in February. Single-family existing homes were at a very restricted 1.3-months’ supply while condo-townhouse inventory was at a 3.4-months’ supply. The rate for a 30-year fixed-rate mortgage averaged 2.81 percent in February 2021, significantly lower than the 3.47 percent averaged last February.
USA: EXISTING HOME SALES DECREASE
Although existing-home sales fell 6.6 percent in February, sales are still 9.1 percent higher than last year. The median existing-home sales price rose to $313,000, 15.8 percent higher from one year ago. Total housing inventory at the end of February amounted to 1.03 million units, equal to January’s inventory and down 29.5 percent from one year ago. Properties typically remained on the market for 20 days in February. Also in February: First-time buyers were responsible for 31 percent of the sales; individual investors or second-home buyers, who account for many cash sales, were responsible for 17 percent of the sales; and foreclosures and short sales represented less than 1 percent of the sales. NAR’s chief economist, Lawrence Yun said, “Home affordability is weakening. Various stimulus packages are expected and they will indeed help, but an increase in inventory is the best way to address surging home costs.”
The median existing-home price for all housing types in January was $303,900, up 14.1 percent from January 2020 ($266,300), as prices increased in every region. January’s national price jump marks 107 straight months of year-over-year gains. Whereas much of the economy has suffered due to COVID-19, the housing sector has been one of the few bright spots. In NAR’s latest quarterly report, released last week, home prices in every tracked U.S. metro area increased during the fourth quarter of 2020. Seventy-one percent of the homes sold in January 2021 were on the market for less than a month. MARCH 2021 df “We’re in remarkable times,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Factors are coming together that make it very advantageous for sellers. More and more people are leaving the Northeast and moving to Florida, knowing that working remotely gives them the opportunity to live anywhere they desire – and they desire Southwest Florida. At the same time, Floridians on the east coast are migrating to the west coast to get away from high density living. Add to that mix the Governor’s message of Florida staying open for business, and you have a situation where Sellers are receiving multiple offers. It’s not quite a bidding war, but time is not on your side if you’re a Buyer. Cash offers abound and demand is high. Our year-to-date closings are up 60 percent over last year, and pending sales are up 39 percent. Although our inventory at the end of February was down by 24 percent, we’re still outperforming most of the market.”
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.
Lawmakers Pass and DeSantis Signs COVID-19 Legal Protections
Key Highlights
- Gov. DeSantis quickly signed SB 72 after the Florida Legislature passed it, giving Fla. businesses new protection against lawsuits filed over COVID-19 claims.
- Florida Realtors supported the change to help brokers and clients avoid unknown legal risks.
TALLAHASSEE, Fla. – State lawmakers on Friday gave final approval to a bill that will shield businesses – ranging from nursing homes to grocery stores to restaurants – from coronavirus-related lawsuits, and Gov. Ron DeSantis signed it into law on Monday. The new law’s effective day is “immediately,” and the protections apply retroactively.
The measure, which the House passed in an 83-31 vote, was a top priority for business groups that had been pushing for the legal protections since the pandemic began in spring 2020. The Senate passed the bill (SB 72) last week.
Supporters of the legislation (SB 72) contended that shielding businesses from lawsuits related to COVID-19 was needed as the state continues to recover during the pandemic. The issue was one of Florida Realtors’ top priorities this year.
“The future of Florida depends on the ability of our businesses and health care providers to stay in business,” says Rep. Colleen Burton, a Lakeland Republican and a primary sponsor of the bill.
The bill establishes new rules in personal injury lawsuits related to COVID-19. For example, people who file personal injury lawsuits that don’t allege medical malpractice or violations of nursing-home resident rights must first get state-licensed physicians to sign affidavits that the defendants caused the injuries or damages.
Additionally, business owners are immune from liability if courts determine they made good-faith efforts to substantially comply with government-issued health standards or guidance.
Associated Industries of Florida President and CEO Tom Feeney said in a statement that the legislation was “the most pressing issue” for businesses that worked on a task force about reopening the state’s economy during the pandemic.
“Now, with this legislation, Florida businesses can predict their COVID-19-related litigation risks, remain viable and continue to contribute to the state’s economic recovery and well-being,” says Feeney, a former House speaker.
In pursuing COVID-19 medical malpractice claims or nursing home-related claims, people filing lawsuits need to not only obtain physician affidavits, they’re also required to prove that the health care providers’ actions were grossly negligent – a higher legal threshold than before. Health care providers that substantially complied with authoritative or applicable government-issued health standards or guidance related to COVID-19 would also have immunity.
“I think this provides doctors the appropriate level of protection for having done the right thing,” says Chris Nuland, a Jacksonville attorney who lobbies for physician organizations.
Physicians were the first to push for the lawsuit protections, asking DeSantis in March 2020 for an executive order to limit liability. The Florida Health Care Association, which represents nursing homes, and the Florida Hospital Association followed with similar requests asking for protections from civil and criminal lawsuits.
DeSantis did not reply immediately, but in recent months has publicly supported protections, especially for nursing homes, which were closed to outside visitors for nearly six months to try to prevent the spread of the virus.
DeSantis maintains that a fear of lawsuits has made nursing home operators afraid to reopen their doors to visitors.
In a statement, Florida Health Care Association CEO Emmett Reed said the bill will ensure nursing homes can “continue to direct their limited resources where they’re needed most – caring for residents and supporting staff.”
Source: News Service of Florida
Increased Demand in February Shows Homebuyers Recognize a Great Value
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Naples, FL (March 24, 2021) – The February 2021 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), marks the last month of comparative activity before the pandemic shuttered the global economy in March 2020. That said, overall closed sales of existing homes in Naples for February increased 62 percent to 1,307 closed sales from 807 closed sales in February 2020.
Broker analysts reviewing the February 2021 Market Report were not surprised at the increased momentum as many report buyers are scooping up the available inventory of homes in all geographic locations within Naples almost as fast as they come onto the market. Inventory fell 68.8 percent in February to 2,224 homes from 7,127 homes in February 2020.
Single-family homes continue to be in high demand so, according to the report, many buyers pivoted to condominiums in February. As a result, the condominium market experienced a 75.7 percent increase in closed sales and a 66.6 percent decrease in inventory. In fact, condominium sales in February 2021 eclipsed its comparable sales in any month over the past 15 years.
“This is not a housing boom as many people suggest,” said Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties. “I consider it a ‘market correction,’ as our area has simply been undervalued until now and it is finally experiencing its due appreciation.”
Haynes added that “in many desirable locations like California and Atlanta, high buyer demand, low inventory, and rising prices have been a reality for years. And unlike 2005/2006, activity is not a result of ‘manufactured wealth’. Sales today are done with real money, which is why home values in our area are finally increasing. Besides, we have what everyone is looking for as it’s now possible to work from anywhere in the world so why not live and work in paradise.”
In addition to the struggle to find existing properties for sale in all price categories, buyers are also finding new home purchasing options are diminishing.
“Builders are reporting a big shortage in materials for new home construction,” said Jeff Jones, Broker at Keller Williams Naples. “For example, orders for new windows are out 14 months because there’s not enough glass for production. And there’s also a shortage of resin for pipe production and lumber has been scarce too.”
Corey McCloskey, NABOR® President and VP of Operations at John R. Wood Properties concurred, commenting that she’s heard from REALTORS® in South Carolina and Arizona that hundreds of new homes in their towns are sitting finished without windows.
Another result of high buyer demand in Naples: “New home communities are nearly sold out so were seeing many put their last lots up for bid,” said Dominic Pallini, Broker at Vanderbilt Realty.
It’s not surprising then that February saw pending sales of existing homes in Naples skyrocket 50.7 percent to 2,299 pending sales from 1,526 pending sales in February 2020. In comparison, there were more pending sales (2,299) at the end of February than inventory (2,224). This resulted in a drastic drop in supply as the February report revealed our area now has only a 2-months supply of homes available to buyers.
The NABOR® February 2021 Market Reports provide 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:
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In February, the median closed price increased 17.4 percent to $405,000 from $345,000 in February 2020. As such, the average closed price also increased in February by 25.7 percent to $796,936 from $633,898 in February 2020. The luxury single-family home market continues to drive sales in Naples as reflected in the average closed price for single-family homes in the Naples Beach area, which increased 35.4 percent to $3,270,814 from $2,414,826 in February 2020.
According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, even though interest rates are low, “many buyers are purchasing homes with cash as it provides leverage during the sale.” This occurrence often happens in multiple offer situations because financing can often weaken an offer. So buyers use cash to make the purchase with the intent of refinancing to enjoy the low interest rates once the sale is complete. Not surprising, cash sales accounted for 57.9 percent of all closed sales during February.
Whether new listings – which fell 8.6 percent in February to 1,435 new listings from 1,570 new listings in February 2021 – can meet the demand in the coming months will depend on seller motivation. In a tight inventory climate, brokers said it’s not uncommon for REALTORS® to approach a homeowner in a desirable community and ask: “I know your home is not for sale but how much do you want to sell it because I have a buyer?”
Jones added that it’s important the public understand “our market today is based on equity – not speculative lending like we saw in 2005 leading up to the housing market bubble.”
The demand for single-family homes in Naples is so high right now that its convincing many homeowners to downsize in order to take advantage of the market’s demand and enjoy a nice profit. That’s one reason condominium sales increased in February and why properties in 55 and older communities also saw increased activity.
| 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.
Florida Realtors economist: Buyers and sellers need Realtors for their buying and selling journey. Opportunities exist via connections to past clients and new-home buyers.
Key Highlights
- Florida Realtors economist: Buyers and sellers need Realtors for their buying and selling journey.
- Opportunities exist via connections to past clients and new-home buyers.
ORLANDO, Fla. – Relationships are essential for agents and brokers, according to the 2020 Profile of Home Buyers and Sellers in Florida. Some insights from the survey about Florida’s latest buyers, sellers and their experience in the housing market are shared next, and you can also view a synopsis of the results on Florida Realtors®’ website or download the full report.
On your marks, get set, buy!
Florida buyers lean heavily on the internet when they begin the home buying journey, with 44% “looking online for properties for sale” as their first step. This holds true for one-third (32%) of first-time home buyers, but 16% approached family and friends to discuss the process, compared to only 2% of repeat buyers. These generally younger buyers are looking for guidance from their nearest and dearest. Maintaining contact with past clients could put your name on the tips of their tongue when these conversations arise.
Although buyers may reach for the internet initially, they value real estate agents. Nearly nine in 10 buyers (89%) used real estate agents as a source of information in their home search. But you’ll need to be patient. Typically, buyers search for three weeks before contacting an agent.
Who’s buying
Unsurprisingly, Florida’s reputation as a retirement destination rings true with its buyers. The national buyer and seller report found that about one-fifth of all buyers were aged 65 or older. In contrast, nearly one-third of Sunshine State buyers belonged to this age category. Nine percent of Florida buyers cited “retirement” as their primary reason for purchasing a home (5% nationwide).
The median age of Florida homebuyers was higher than the national average and regional statistics at 56. With their age skewing older, Florida’s buyers are more likely to be repeat buyers. Less than a quarter (23%) were first-time buyers compared to 31% across the country.
Many headlines shout “millennials” (born between 1980 and 1996) being in their prime homebuying years. They’re the largest homebuying generation nationwide, though this is not the case for Florida. Still, millennials are the dominant force for Florida’s first-time buyers.
Younger adults, age 18 to 24, made up 3% of all Florida homebuyers in 2020. It may seem like such a small figure to highlight, but it represents a new generation, Gen Z, joining the ranks of homeownership.
Single female buyers are a force to be reckoned with in Florida. In 2020, 21% of buyers were single females, the highest percentage in Florida reports going back to 2012. The majority of buyers are married couples (61%), and unmarried couples and single males represent 9% and 8%, respectively.
What they’re buying
The typical (median) Florida home purchased in 2020 was 1,960 sq. ft. and built in 1999. Three-fourths of Floridians purchased an existing home, while nearly one-fourth (24%) purchased a new home. Florida’s 1-unit building permits in 2020 outnumbered every state except Texas. With limited existing home inventory and some relief on the new-construction side, Floridians took advantage of this option, while nationwide, only 15% of buyers purchased a new home.
With this ratio of existing to new purchases in mind, 85% of Florida buyers used an agent, 12% purchased directly through the builder, and 3% purchased from the previous owner.
New construction buyers may have the misconception that hiring a real estate agent or broker would increase their purchase price. That’s simply not true! Realtors® can be an important advocate for buyers of new construction. Considering marketing how you can help – knowledge of the design center process, negotiating add-ons, experience with walk-throughs, and more – to earn a role with new-home buyers.
Well over half (57%) of Florida homes purchased were in the suburbs. But along with retirees, Florida is known for its fun in the sun. Nine percent bought in resort or recreation areas.
Help! Buyers need an agent
Four out of five buyers (79%) believe a real estate agent is very useful. 85% used one for their transaction, and 89% used an agent or broker as a source of information. But what specifically do they find helpful?
Half of Florida buyers (52%) say “finding the right property” was the hardest step, and it ties directly to what buyers want from their agent – “help to find the right home to purchase” (52%). Two of 10 desire help with negotiations, 11% want help negotiating the terms of sale, and 10% need assistance with price negotiations. Another 8% indicate the biggest role they need agents to play is “help with paperwork.”
With your guidance, buyers can feel confident in their purchase decision. One-third (32%) of Florida buyers felt they made no compromises in purchasing their home. Further, 43% believe they will stay in their homes 16 years or more.
The survey was completed in June 2020, so as competition spurred through the end of 2020, we may see different levels of satisfaction revealed in next year’s survey.
Sellers
Sellers are motivated by relationships. Fifteen percent (both Florida and U.S.) moved to be closer to family and friends; 14% of Florida sellers moved due to retirement. Additional reasons prompting sellers to list their homes include a change in family situation, home size (both too small and too large), and jobs.
Agents and brokers need to weave their own relationships with sellers. Your foot in the door is connections to their friends, neighbors or relatives. Thirty-eight percent of Florida sellers were introduced to their agent through these sources.
Sellers expect Realtors to provide the full package of services but focus on connection to buyers, price and speed of sale when asked about what they want. The areas where they seek help are marketing to potential buyers (24%), pricing the home competitively (20%), finding a buyer for the home (19%) and selling within a specific timeframe (16%).
Once relationships are formed and needs are met, good results enter the picture for all involved. Those who listed saw success in the price their property received and equity gains. The report found the median sales price compared to listing by price was 98% for Florida sellers, mirroring statistics produced by Florida Realtors using Multiple Listings Service (MLS) data feeds. Additionally, Florida sellers gained $69,500 in equity in 2020, and the equity equated to 35% of the sold price.
It’s easy to be happy with those profit numbers and 91% were “very satisfied” or “somewhat satisfied” with the selling process; 74% would “definitely” and 14% would “probably” use a real estate agent again or recommend one to other sellers. After closing, ask for reviews and referrals, which can lead to opportunities with future sellers.
Connections, connections, connections
Florida checks the box for location, location, location, with options for homes in the suburbs, urban cores, rural outskirts, and resort or recreational destinations. Opportunities abound but consumers need you to connect the dots. Buyers and sellers know the importance of agents and brokers. They seek your expertise and are satisfied with the results. Use your connections with past buyers and sellers to find new clients, then make their home process unforgettable and continue the chain reaction.
By Erica Plemmons. Erica Plemmons is an economist and Director of Housing Statistics.
© 2020 Florida Realtors®
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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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