Bonita Bay Real Estate News | April 2022

Bonita Bay Real Estate News | April 2022

As of  April 1, 2022, there are 13 active listings in our area multiple listing service (MLS) in Bonita Bay; the same as last month.
For comparison, last year on April 1, there were 27 listings in Bonita Bay.
There are 4 single-family homes, ranging in price from $899,000 to $6,500,000. The average list price is $3,016,000 and the average days on the market is 92. The combined days on the market is 92.
In the carriage, mid-rise, townhouse, and attached villa market, there are 2 active listings in Bonita Bay, both priced at $575,000. The average days on the market and the combined days on the market are both 4 days.
In the high-rise market, there are 7 active listings in Bonita Bay ranging in price from $1,499,000 to $4,650,000. The average list price is $3,563,429 and the average days on the market is 44. The combined days on the market is 83.
A reminder, you have access to the most comprehensive website devoted to Bonita Bay, 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


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:

  • Within the last 12 months, there were 83 sales with an average sales price of $504,870; these condos were on the market an average of 14 days; combined days on the market is 69.
  • During the 12 months previous, there were 96 sales with an average sales price of condominiums was $393,627; these homes were on the market for 87 days; combined days on the market is 164.
  • During the last 12 months, there were 83 sales with an average sales price of $1,715,656; these homes were on the market an average of 87; combined days on the market is 140.
  • During the 12 months previous, there were 89 sales with an average sales price of $1,283,778; these homes were on the market for an average of 156 days; combined days on the market is 250.
  • During the last 12 months, there were 76 sales with an average sales price of $1,876,105; these homes were on the market an average of 41 days; combined days on the market is 114.
  • During the 12 months previous, there were 80 sales with an average sales price of $1,554,042; these homes were on the market for an average of 103 days; combined days on the market is 178.
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 2022 Market Update

“March 2022 saw Downing-Frye agents have over $219 million in closed sales volume,” said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. “With this sales volume, Downing-Frye agents closed over $488 million in the first quarter of the year. The numbers certainly could be higher if there was more listing inventory. With a tight inventory of listings and strong buyer demand, many open houses are seeing a lot of visitor traffic. Multiple offers are quite common these days. A lot of times the winning buyer has to offer more than the list price to secure the property. Many of our listings are going under contract quickly. One issue that sellers need to think about is where will they move to? Downing-Frye has seen a decline in rental listings this year. Many of the landlords are cashing out and selling with the new buyer retaining the property rather than continue using the property as a rental. As we said earlier, the properties for sale inventory of listings remains tight. Downing-Frye agents look forward to this unusual market. A market like this gives us the ability to show the consumer our worth. We are off to a good start this year!” 
New summer inventory is expected, but the question is: Will it be enough to satisfy demand? For the month of February 2022, reported over 29 million search result page views in the Bonita Springs and Estero markets, a testament to the area’s popularity. In comparing February 2022 with February 2021: the median closed sales price was up 34.9 percent to $479,000; active inventory was down 74.2 percent to 217 listings; and the number of new listings was slightly higher at 407 units. Less than one-month’s supply of inventory was available in February 2022.
The overall median closed price in February was $550,000, a 37.5 percent increase over the median closed price in February 2021. The high demand for homes is demonstrated by the number of showings in February, which was 43,032. When divided by the number of homes in inventory during February (1,176), this translates to 36 showings per home. For perspective, in 2019 there were 2.9 showings per home. The data also shows that homes sold fast in February, within 23 days on the market, and the percent of list price received was 100.6 percent, which pleased many sellers. It is only due to a lack of inventory that home sales in Naples did not fare as well as last February. Single-family closed sales were down by 25.2 percent, and condo closed sales were down by 50.5 percent.
The Marco Island Area Assoc. of Realtors® reported that February 2022 compared to February 2021 showed the following: Total inventory (175 properties) was down 62 percent, closed sales (84 properties) were down by 46 percent with a volume sold of $122.2 million, down 9 percent. The February median sales price for homes was $1.9 million (up 76 percent), for condos was $518,000 (down 7 percent), and for lots was $715,000 (up 79 percent).
In February, closed sales of single-family homes statewide totaled 23,661, down 1.2 percent year-over-year, while existing condo-townhouse sales totaled 10,975, down 3.6 percent over February 2021. The statewide median sales price for single-family existing homes was $381,481, up 21.1% from the previous year, and for condo-townhouse units was $290,000, up 24.3 percent. In the face of higher mortgage rates, price growth is expected to eventually slow, said Dr. O’Connor, Florida Realtors Chief Economist. “We should expect sales next month to be below last year’s levels, but still well above pre-pandemic levels,” he said.
Pending home sales slipped in February, marking four consecutive months of transaction decreases. The Northeast was the only area that reported an increase. “Pending transactions diminished in February mainly due to the low number of homes for sale,” said Lawrence Yun, NAR’s chief economist. “Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale.’ Also, the surge in home prices combined with rising mortgage rates can easily translate to another $200 to $300 in mortgage payments per month, which is a major strain for many families already on tight budgets.” Yun forecasts mortgage rates to be about 4.5-5 percent for the remainder of the year and expects about a 7-percent reduction in home sales in 2022 compared to 2021.
Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS® Marco Island Area Assoc. of REALTORS®

New-Home Market Was Broken Before Pandemic

Builders once kept up with demand, but Great Recession cutbacks and worker losses created major problems exacerbated by new pandemic-created challenges.
Almost every real estate economist has said for years that “We need more new homes” to end problems such as rising home prices and housing for low-incomes Americans.
However, the housing market continues to face low inventory and high home prices, and experts continue to hope that home builders can increase supply. The lack of new-home inventory doesn’t just impact the new-home industry – it also pushes more buyers into the existing-inventory home market.
But builders haven’t been able to keep up. They point to supply chain disruptions. Lennar says those disruptions have slowed quarterly production cycles by two weeks for two consecutive quarters.
“The ability to actually build and deliver homes has been slowed by the supply chain that is all but broken, by the workforce that is short in supply, and the intense competition for scarce entitled land assets. Therefore, the supply of homes has remained quite limited and is not prone to overbuilding,” according to Lennar Executive Chairman Stuart Miller.
Similar reports were delivered by Texas-based builder D.R. Horton and Georgia-based PulteGroup to their investors. Their reports acknowledged the challenge of skyrocketing lumber costs, weakened labor forces, and issues sourcing building materials and appliances.
“Just about every housing analyst and housing economist right now agrees that we need to add more housing, and it’s not just single-family housing – we need to build more townhouses, more missing middle duplex type housing, and more apartments,” says National Association of Home Builders Chief Economist Robert Dietz. “There’s no single scalable solution that’s going to solve the problem. It’s going to require years to fix the problem, and buyers will be priced out in the process.”
Redfin Deputy Chief Economist Taylor Marr says inflated lumber costs and supply chain issues have increased the cost of building a home by 22% over the past year alone. Dietz also points to the costs associated with inflation, which reached 7.9% in February, making it harder for privately owned home builders to secure the loans they need to withstand higher material costs and the financial risk that comes with increasing completion timelines.
Source: Inman (03/28/22) McPherson, Marian
© Copyright 2022 INFORMATION INC., Bethesda, MD (301) 215-4688

Sellers are Taking Advantage of Home Values Hitting Record High

More sellers are motivated to enter the market as home values continue to rise as a result of limited inventory and high demand in the Naples area. According to the February 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median closed price in February was $550,000, a 37.5 percent increase over the median closed price in February 2021. The high demand for homes is demonstrated by the number of showings in February, which was 43,032. When divided by the number of homes in inventory during February (1,176), this translates to 36 showings per home. For perspective, in 2019 there were 2.9 showings per home. The data also shows that homes sold fast in February, within 23 days on the market, and the percent of list price received was 100.6 percent, which pleased many sellers.

“Twenty-five percent of the homes that went under contract in February came back onto the market within 20 days on average during February,” said Jeff Jones, Broker at Keller Williams Naples.
To take advantage of this occurrence, Jones suggests buyers use a very important tool in real estate: the back-up offer contract. A back-up offer can be placed on any property when that property is already under contract with another buyer. But in today’s market, there is a higher likelihood that the first offer may not stick so a back-up offer is a smart tool for buyers right now.
Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, agreed with Jones and added, “Before the pandemic, we had a 3 to 5 percent back-on-market rate monthly. But things are different today. We are seeing some good success stories when back-up offers are used.”
Fioretti went on to explain that a back-up offer contract – if recommended by a REALTOR® and approved by the seller – may not require a deposit and the buyer can keep searching for a home to purchase until they either become the primary buyer on the first home or cancel the back-up offer. For the seller, back-up offer contracts can provide confidence. In such cases, if a buyer asks to renegotiate, the seller has leverage because they have a back-up offer. Additionally for sellers, back-up contracts allow them to avoid having to re-list the home and start showing it again.
While inventory during February decreased 47.1 percent to 1,176 homes from 2,224 homes in February 2021, brokers reviewing the report like Molly Lane, Senior Vice President at William Raveis Real Estate, say the real inventory number is actually higher because the report doesn’t capture the number of off-market listings. “Because new listings are a hot commodity these days, they often don’t make it to the MLS until after they are sold. Sales are happening so fast that transactions in the ‘shadow inventory’ (homes that are not yet for sale but will be coming to market in the future) are more common than ever before.”
The median closed price in February increased 37.5 percent to $550,000 from $400,000 in February 2021. But according to Dominic Pallini, Broker at Vanderbilt Realty, he believes that prices are beginning to stabilize. “The median closed price only increased .2 percent from January to February, and the report shows February had more price decreases [276] during the month than price increases [170].”
Closed sales in February during the years leading up to the pandemic (2017-2019) averaged in the low 600s, but demand for the Naples lifestyle and the amenities living in paradise offer have driven buyers to the paradise coast in record numbers in recent years. It is only due to a lack of inventory that home sales in Naples did not fare as well as last February. While overall closed sales decreased 39.5 percent to 804 in February from 1,330 in February 2021, Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out that the report showed “the only area where we are seeing a decrease in closed sales over the last year is in the $300,000 and below price category.”
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., pointed out that it’s “slim pickins’” for first-time home buyers as the report showed “there were only 26 single family homes on the market during February that were in the $300,000 and below price category.”
The NABOR® February 2022 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 2022:
There are several other key performance areas within the February report, month/month, that are worthy of mention:
  • 1,261 – The number of new listings added to the existing inventory
  • 69.7% – The percentage increase in median closed price for properties located in 34113
  • $1,161,203 – The average closed price for single family homes (+5.3%)
  • 5% – The percentage increase in overall closed sales in Central Naples (34104, 34105, 34116)
  • 4 – The number of months in a row that condominiums have sold for over 100% of list price
  • 46% – The percentage decrease in median closed price for single-family homes in the Naples Beach area (34102, 34103, 34108)
“The process and complexity of real estate has changed,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “Having a REALTOR® on your side is the best way to ensure your interests are met and that you understand what to expect when you buy or sell a home in Naples.”

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 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.



Will Ukraine War Impact Florida Real Estate?

By Derek Gilliam

On the one hand, Fla. is the No. 1 state for Russian RE investing – 29% of all U.S. purchases. On the other, Russian buyers make up only 0.8% of all foreign purchases.
NAPLES, Fla. – Over the past six years, Russian buyers of U.S. real estate have preferred the sunny coasts of Florida over property in any other state in the nation. Wealthy Russians have reportedly bought so many luxury condo properties in the north Miami city of Sunny Isles Beach that some have termed it “Little Moscow.”
“They love to be here, and they like to spend their money and enjoy their life,” Lana Bell, a South Florida real estate agent told
But it’s not just the wealthy Russian elites seeking Florida sunshine.
Across the state from Warm Mineral Springs in North Port all the way up to small town of Steinhatchee near the Panhandle, Russians and Eastern Europeans have established communities, according to population data from the U.S. Census Bureau’s American Community Survey.
Over the past six years, 29% of Russian real estate transactions in the United States occurred in Florida, the most in the nation, according to a report from the National Association of Realtors® (NAR).
But even as countries across the world impose sanctions on Russia for invading and waging a brutal war against its neighbor Ukraine, the impact to U.S. home or property prices is not expected to be meaningful, even without any Russian purchases of Florida real estate.
“Russia has little direct impact on the U.S. real estate market as it accounted for less than 1% (0.8%) of all foreign buyers who purchased U.S. residential property from April 2015 through March 2021, according to data from NAR’s survey of foreign buyer transactions of its members,” covering about 5,000 respondents, the report said. Any effect from the loss of Russian purchases would tend to be at the high end, as the NAR’s report notes that Russian buyers buy more luxury properties than the average Florida buyer.
Still, with the transition of the pandemic to a different phase, the loss of Russian buyers could be offset by the resumption of purchases by people from other countries, as well as within the U.S.
Craig Cerreta, the managing broker for Premier Sotheby’s International Realty’s Sarasota office, said the pandemic caused a near shutdown of foreign buyers, but that the segment has been bouncing back in recent months.
During the COVID pandemic, real estate prices have drastically increased in Florida as migration brought new residents to the state, with people retiring early or enjoying the ability to work remotely.
Tight supply
Historically, Cerreta said, Canadians, followed by residents of the United Kingdom, have accounted for the majority of international real estate transactions in the Sarasota market.
“There is no question that they (Russian purchasers) are small” locally, he said. “But they are typically high-end buyers.”
The NAR data says that the average Russian real estate transaction was about $650,000. The average for all international buyers was about $480,000.
But, with the demand seen for Florida properties, combined with historically low number of properties for sale, any loss of Russian purchases are being more than made up from demand from other buyers, Cerreta said.
Cerreta recently sold a home he owned in the Sarasota area. During the open house, more than 170 people viewed the residence and 21 people made an offer. Three of the offers came from people in California, something that surprised the longtime real estate agent, as Californians have historically not been a large market for the west coast of Florida.
Any loss of demand from Russian buyers for luxury properties or other property types won’t be felt in the Sarasota market, he said.
In February, 72% of all real estate sales in the Sarasota market closed at or above the list price compared to 43% at or above list price in February 2021, Cerreta said. “There’s not enough inventory to meet demand,” he said of the Sarasota market.
Sergei Sokolov, a Realtor with Sarasota’s Michael Saunders & Co., was born in Ukraine but moved to the United States when he was 5 years old. The now-47-year-old real estate professional, fluent in Russian and Ukrainian, said Russian speakers often want a Realtor who speaks their language.
The first house he sold in Sarasota in 2004 was to a Russian speaker, and he does about three or four transactions a year. Sokolov specializes in entry level homes typically in the $350,000 to $400,000 price range, with the majority of his Russian-speaking buyers already living in the U.S. or Canada and unlikely to be impacted by the Russian-Ukrainian war.
“I don’t expect there to be much of an impact on my business,” he said. “There’s just a lot more demand than there is supply.”
Varied buyers
The next closest U.S. state for Russian buyers was Georgia with 16% of all Russian purchases of U.S. real estate, roughly 13 percentage points behind Florida. New York (13%), California (8%) and Illinois (5%) rounded out the top five states for total transactions from Russian buyers.
The NAR report said that even in Florida, purchases of real estate made by Russians accounted for just 0.2% of the Sunshine State’s real estate transactions from July 2020 to June 2021. Those numbers may be skewed as the pandemic caused many governments to restrict travel to other countries.
A 2020 profile on international residential transactions in Florida conducted by the NAR with Florida Realtors, the largest trade organization in the state, concluded that foreign buyers accounted for $15.6 billion in real estate transactions from August 2019 to July 2020 – about 11% of the state’s sales. The total transaction volume for Florida real estate in that time period was $137 billion dollars.
However in that report that largely accounted for sales just prior to the pandemic, Russia did not rank among the top 15 counties for any Florida metro besides Miami. The Miami metro market, the largest in Florida, had just 2% of home sales go to Russian buyers.
The largest group of foreign buyers by transaction volume came from Latin America and the Caribbean with about 37% of the total value of homes purchased by international citizens.
Canadian buyers had the most transactions at 21% followed by Brazil (7%), Argentina (6%), Venezuela (5%), Columbia (5%) and the United Kingdom (5%).
The metro area of Miami-Fort Lauderdale-West Palm Beach had the lion’s share of foreign buyers with 47.3% of all purchases. The Tampa-St. Petersburg-Clearwater metro accounted for 11%; Orlando-Kissimmee-Sanford had 9.7%, North Port-Sarasota-Bradenton had 6.9% and Cape Coral-Fort Myers came in at 4.7%.
Larger economic issues
While Russians account for a tiny fraction of all real estate purchases in Florida, the real impact of the conflict may be felt at the gas pump as international buyers cut ties with Russian energy. President Joe Biden announced a ban on Russian oil earlier this week.
Chris Jones, president of Florida Economic Advisors and a University of South Florida faculty member at USF in the economics department, agreed with the real estate experts that the reduction in demand from Russian buyers for U.S. real estate won’t shift home prices in Florida.
However, the impact of rising gas prices could be dangerous for the U.S. economy, he said.
He anticipates that gas prices will increase at least another 50 cents before the end of May, with peak price per gallon of gasoline surpassing $5 per gallon this year. As people pay more at the pump, they have less money to spend on goods and services that drive the economy, which he believes will lead to a decrease in the nation’s economic output.
He said he fears that the American economy could be headed toward “stagflation” because of the rising gas prices. Stagflation happens when an economy has rising inflation at the same time as slowing economic output.
“We’re already halfway there,” he said, pointing to rising inflation.
Rising gas prices will also have an impact by raising prices on nearly all goods and services which could then cause fewer people to be able to afford to purchase residential property.
Less demand, caused largely by rising gas prices, would then impact Florida’s real estate market.
© 2022 Journal Media Group

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