01 Dec Bonita Bay Real Estate News | December 2021
As of December 1, 2021, there are 20 active listings in our area multiple listing service (MLS) in Bonita Bay; 13 less than last month.
There are 7 single-family homes, ranging in price from $1,995,000 to $6,500,000. The average list price is $3,982,143 and the average days on the market is 87. The combined days on the market is 87.
In the carriage, mid-rise, townhouse, and attached villa market, there are 2 active listings in Bonita Bay ranging in price from $569,900 to $1,290,000. The average list price is $929,950 and the average days on the market is 40 while the combined days on the market is 40.
In the high-rise market, there are 11 active listings in Bonita Bay ranging in price from $1,200,000 to $8,500,000. The average list price is $3,753,455 and the average days on the market is 183. The combined days on the market is 189.
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 94 sales with an average sales price of $436,741; these condos were on the market an average of 45 days; combined days on the market is 114.
- During the 12 months previous, there were 77 sales with an average sales price of condominiums was $406,179; these homes were on the market for 92 days; combined days on the market is 154.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 106 sales with an average sales price of $1,527,533; these homes were on the market an average of 138; combined days on the market is 199.
- During the 12 months previous, there were 63 sales with an average sales price of $1,329,356; these homes were on the market for an average of 154 days; combined days on the market is 262.
SINGLE-FAMILY BONITA BAY HOMES
- During the last 12 months, there were 102 sales with an average sales price of $1,673,941; these homes were on the market an average of 69 days; combined days on the market is 145.
- During the 12 months previous, there were 59 sales with an average sales price of $1,349,336; these homes were on the market for an average of 111 days; combined days on the market is 184.
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.
December 2021 Market Update
DOWNING-FRYE: A TREMENDOUS YEAR FOR REAL ESTATE ACTIVITY
“We saw a slight upturn in listings at the end of November but inventory is still pretty low,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Downing-Frye Realty, Inc. had 477 listings at 11/30/21 compared to 459 at the end of the previous month. The tight inventory, coupled with strong buyer demand is certainly giving the cash buyers a leg up on the buyers that require financing. Multiple offer situations are quite common this year. We had 244 pending sales for the month of November 2021. Compared to the previous November, this would be a 22 percent drop. However compared to the previous four Novembers (11/19 – 196 pending sales, 11/18 – 229 pending sales, 11/17 – 185 pending sales and 11/16 – 182 pending sales),this was still an elevated number of contracts for this time of year. We currently have just over 3,500 closed transactional sides for the eleven months ended November 30, 2021. We should be real close to 3,700 closings by year end. All in all, it has been a tremendous year for real estate activity.”
BONITA / ESTERO: HIGH BUYER INTEREST
The number of new listings that came to the Bonita Springs and Estero markets in 2021 was 270, which was higher than the 193 total listings that came to market during the same time period during 2020. However, the demand has been higher in 2021, presenting challenges for some buyers. Bonita Springs is also 5th on the list for the fastest growing cities in Florida (strategistico.com). Comparing October 2021 to October 2020: New listings are down 32.1 percent to 319 units, closed sales are down 29.7 percent to 270 sales, and the median closed sales price was $447,000, up 30.5 percent. Active inventory is at 246 properties, down 78.9 percent.
NAPLES AREA: TIGHT INVENTORY
Home sales were bridled by low inventory during October, but new listings are on the rise. Overall closed sales for October decreased 32.1 percent to 858 closed sales from 1,263 closed sales in October 2020. Closed sales in October were historically higher than average for a typical October in Naples, even with the lowest inventory level on record by NABOR®. In October 2020, there were 5,181 properties available; while in October 2021, the month ended with just 1,027 for a 76.1 percent decrease. The median closed price in October 2021 was $450,000, compared with $385,000 in October 2020.
MARCO ISLAND AREA: MEDIAN PRICE UP AGAIN
The Marco Island Area Assoc. of Realtors® reported that October 2021 compared to October 2020 showed the following: Total inventory (247 properties) was down by 73.6 percent, closed sales (104 properties) were down by 57.2 percent and pending sales (124 properties) were down by 49 percent. The October median sales price was $667,500, which is 33.5 percent higher than October 2020.
FLORIDA: FL METRO PRICES TOP IN U.S.A.
U.S. home prices rose 18.5 percent year-to-year in 3Q, but the increases in eight Florida metros ranged from 20.5 percent in Central Florida to 34.7 percent in Cape Coral-Fort Myers. Florida metros ranked in the Federal Housing Finance Agency’s (FHFA) 3Q, top-100 price study: #2 Cape Coral-Fort Myers; #8 North Port-Sarasota-Bradenton; #9 West Palm Beach-Boca Raton-Boynton Beach; #10 Tampa-St. Petersburg-Clearwater; #15 Jacksonville; #17 Fort Lauderdale-Pompano Beach-Sunrise; #24 Miami-Miami Beach-Kendall; #28 Orlando-Kissimmee-Sanford.
“Compared with a year ago, annual gains have increased in every state and metro area,” said William Doerner, Ph.D., supervisory FHFA economist. “Real estate prices have risen exceptionally fast, but market momentum peaked in July as month-over-month gains have moderated.”
USA: PENDING SALES UP 7.5 PERCENT
“Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” said Lawrence Yun, NAR’s chief economist. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low. The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.”
While the market is expected to remain robust, Yun forecasts home prices will rise at a gentler pace over the course of the next several months and expects demand to be milder as mortgage rates increase.
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.
Survey: Sellers Waiting Out Pandemic Are Ready to List
By Kerry Smith
Owners who postponed selling during the pandemic – perhaps waiting for a sign that price increases were slowing – appear ready to list their home within the next six months. Many, however, plan to overprice it – and they expect bidding wars to push the final price even higher.
Homeowners have had all the usual reasons to sell over the past two years – marriages, deaths, children, etc. – but many hunkered down during the pandemic, and some feared the housing market because selling might be easy but finding a new home? Not so much.
A survey conducted by HarrisX for realtor.com, however, suggests that many of those people might be planning to list their home in 2022, with 65% of them planning to do so this winter and spring. The survey of 2,583 consumers was conducted online in September-October 2021.
Many sellers, however, want to set an asking price higher than they think their home is worth, and they expect buyer bidding wars.
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception,” says George Ratiu, manager of economic research for realtor.com.
“Buyers should be ready for high asking prices and offer deadlines as seller expectations of the upcoming market are greater than in the spring, but an increase in new sellers could mean some relief from the inventory crunch,” he says, saying price growth has moderated some, and many sellers will likely wait until after the holidays to make a move.
However, early 2022 home listers may have an advantage, he adds. “As buyers race against the clock of rising mortgage rates, sellers who price their homes in line with today’s market and stick to their plans will likely see their expectations met.”
When will sellers list?
- Among homeowners who seem prepared to enter the market in the next year, 65% will do so within six months, including 19% who have already listed their home.
- Compared to the spring (76%), more prospective sellers (93%) have already taken steps toward listing their home, including working with an agent (28%).
- More than one-third of prospective sellers (36% each) have researched the value of their home and others in their neighborhood, and started making repairs or decluttering.
Top reason for selling? More time at home during COVID
- Compared with the spring (15%), nearly two-times as many prospective sellers (33%) want different home features.
- With more sellers having children at home this winter (65%) than in the spring (43%), family considerations are a top reason behind homeowner decisions to enter the market: 37% of prospective sellers say their home no longer meets their family’s needs and 32% want to move closer to friends and family.
- The rise in remote work is also a key driver: 23% of sellers want a home office and 19% don’t need to live near work, up from 6% in March.
Seller expectations
- Nearly half of today’s prospective sellers want to take advantage of the current market and think they can make a profit (45%), nearly doubling from the spring (24%).
- When asked about current market impacts, 42% said they plan to list their property for more money than they think it’s worth, and 29% will push for a quick close.
- Compared to the spring, more prospective sellers anticipate buyer bidding wars, more offers above asking price, and more buyers willing to forgo contingencies like inspections and appraisals.
Price range changes
- Sellers with homes at the core of the market ($351,000-$750,000) remained the same over March (29%). However, more sellers plan to list in the $500,000-$750,000 price range.
- More than three-quarters (77%) of prospective sellers would be willing to accept a lower offer to close quickly versus just over half in March (54%).
- Compared to spring sellers, a higher number plan to take alternative routes to moving out, such as living with family initially (19%) or temporarily renting their home back from the buyer (29%).
“For homeowners who do feel ready to sell, getting pricing right from the start is key to a fast and successful home sale in any market – take the Goldilocks approach,” says Lexie Holbert, home and living expert at realtor.com.
By Kerry Smith
© 2021 Florida Realtors®
October Real Estate Market Report: Tight Inventory and High Demand Continues
Home sales were bridled by low inventory during October, but new listings are on the rise according to the October 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall closed sales for October decreased 32.1 percent to 858 closed sales from 1,263 closed sales in October 2020. But irrespective of the home buying frenzy that took place during the second half of 2020 (including October 2020), closed sales in October were historically higher than average for a typical October in Naples, even with the lowest inventory level on record by NABOR®.
Broker analysts who reviewed the October Market Report anticipate more sellers will enter the market over the next few months as the lure of paradise is already beckoning seasonal and foreign visitors back to our shores now that many international travel restrictions have been lifted and the threat of COVID-19 has been reduced. The report shows pre-season interest already in play as October’s pending sales (1,186 pending sales) and showings (33,578) were above summer month levels.
The overall median closed price in October increased 16.9 percent to $450,000 from $385,000 in October 2020. The COVID-19 pandemic affected buying behaviors and sales of single-family homes outpaced condominiums as people sought more open space in 2020; but those buying behaviors have now shifted. While overall inventory decreased 76.1 percent in October to 1,240 properties from 5,181 properties in October 2020, condominium inventory decreased 84.4 percent in October. As such, there were nearly half as many condominiums (435) available compared to single-family homes (805) at the end of October. Not surprising, the median closed price for condominiums increased 31 percent to $370,000 from $282,500 in October 2020, while the median closed prices for single-family homes increased 18.8 percent to $615,000 from $517,750 in October 2020.
“Closed sales are down for one reason: we just don’t have the inventory,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “But that doesn’t necessarily mean prices will keep rising at the rate we saw this past year. With inflation surging, now is the time to sell your home in Naples because interest rates will eventually rise so the number of potential buyers will thin, and this will likely also level out list prices.”
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., commented, “In the past, if you couldn’t find a home to buy, you’d just rent for a while until something came along. But there are few rentals today and this is exacerbating the low inventory issue because sellers can’t just pick up and move when their home sells. A REALTOR® can help them develop a plan that includes finding a place to live once their home sells.”
Hughes also pointed out that these kind of “hot markets” don’t last forever. “It’s impossible to predict the future but we know from history that things happen—like pandemics, inflation, or hurricanes—that have impacted the housing market in Naples.”
The NABOR® October 2021 Market Report 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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According to Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, “There were fewer homes over $1 million coming onto the market in October than in previous months. In fact, we saw more new listings of homes on the lower end and further east become available. Hopefully, the rush of seasonal visitors will bring more sellers with high-end properties to the table.”
“It’s impossible for a home buyer or seller to keep their pulse on the market without a REALTOR®,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “For sellers, a REALTOR® can often negotiate a higher closed price than what they could have received on their own because a REALTOR® can interpret the MLS, evaluate purchase offers, and take steps to maximize their return. For buyers, a REALTOR® can help them find the right home, carefully craft an offer, and quickly maneuver through negotiations, escalation clauses, and closings.”
Having a REALTOR® during today’s low inventory environment is an essential partnership for buyers because REALTORS® are poised to hear about a home before it goes up for sale, they know exactly when new homes hit the MLS in real time, and they can share this valuable information to home buyers. Further, REALTORS® work closely with many other agents, have alerts set up when new homes are listed, and know how to maneuver the process so a buyer can act fast when a new listing meets a client’s purchasing criteria.
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.
What Makes a Home a “Smart Home”?
A property is “smart” if it has an internet connection and at least 3 “smart” items. That’s not very expensive to create now and 33% of U.S. homes are considered smart.
Smart homes and smart connected technology was discussed in San Diego at the National Association of Realtors® (NAR) convention and trade show, during a session led by Craig Grant, CEO of The Real Estate Technology Institute & RETI.usm and Brandon Doyle, a practicing Realtor® from Maple Grove, Minnesota.
“A Realtor doesn’t have to invest a lot of money into making a house a smart home,” said Grant. “Just having a few devices in specific categories – such as certain lighting, security cameras, or appliances – qualifies a home to be a smart home.”
If a property has a reliable internet connection and “smart” items in at least three categories, it is considered a smart home. Realtors can then market the home as such, making it a more attractive commodity for both buyers and sellers.
“These homes were once only for the ultrarich, but we’ve gone from only super-wealthy people like Bill Gates having these products to every home now having at least one or two smart items,” said Doyle. “Amazon basically lets you have a lot of these for free because they know it’s like a gateway drug and they’ll get you to buy other devices.”
Both Grant and Doyle noted that 33% of homes today already meet the requirements to be called a smart home and that number is expected to climb to 54% by 2023. Currently, 26% of baby boomers have smart home technology within their residences, 49% of Generation Xers, and 77% of millennials, according to their presentation.
The popularity of smart home products, like lighting systems, carbon monoxide detectors and digital thermostats, have grown in popularity in part because they’re being built with ease of use in mind. Complexities and difficulties to access products like a smart refrigerator for example, have largely been eliminated.
“Smart-home technology can now be used by seniors and those with disabilities to assist them in day-to-day activities,” said Grant.
Many buyers and sellers want to age in place, and Grant said it can benefit Realtors to educate older buyers regarding how smart products, and how they can help make life easier. Some smart home devices can help users remember to eat or take medications, allow family or caregivers to interact remotely or send notifications in case of a fall or injury They can even offer voice-activated assistance with curtains or shades, or visual assistance for the blind or hearing impaired.
While smart home technologies and advancements provide a number of conveniences, Grant stressed there are concerns and risks to these luxuries.
“Some of these come with a default password, and if that password isn’t changed, you open yourself to a hacker having access,” he cautioned. “In other cases, some smart devices are always listening or recording.”
Grant says users should go to the devices’ settings and disable these features in order to safeguard privacy.
Both speakers agreed that Realtors have an obligation to know the rules and requirements in regard to selling a smart home. They added that Realtors should explain all hazards and possibilities to clients – whether buyers or sellers – such as violating privacy laws or failing to disclose whether or not a product is included after a home sale.
On the whole, Grant and Doyle said smart home technologies should impart security, convenience, energy efficiency, a cost savings and comfort, and stressed that while there are some risks, the positives overwhelmingly outweigh the negatives.
By Kerry Smith
© 2021 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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