03 Jan Bonita Bay Real Estate News | January 2019
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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:
- Within the last 12 months, there were 92 sales with an average sales price of$376,831; these condos were on the market an average of 109 days; combined days on the market is 186.
- During the 12 months previous, there were 68 sales with an average sales price of condominiums was $376,223; these homes were on the market for 82 days; combined days on the market is 152.
- During the last 12 months, there were 36 sales with an average sales price of $1,382,792; these homes were on the market an average of 162 days; combined days on the market is 255.
- During the 12 months previous, there were 26 sales with an average sales price of $1,360,087; these homes were on the market for an average of 140 days; combined days on the market is 225.
SINGLE-FAMILY BONITA BAY HOMES
- During the last 12 months, there were 75 sales with an average sales price of $1,181,420; these homes were on the market an average of 82 days; combined days on the market is 179.
- During the 12 months previous, there were 72 sales with an average sales price of $1,129,556; these homes were on the market for an average of 115 days;combined days on the market is 211.
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Florida Realtors News: Top Real Estate Stories of 2018
ORLANDO, Fla. – Dec. 21, 2018 – Hurricanes hit, insurance rates rose, team ad rules got an update. and a real estate market marked by rising prices and tight inventory showed the first potential signs of change.
Michael throws a boat ashore
On Oct. 10, 2018, Hurricane Michael slammed Florida’s Panhandle as the eye crossed near Mexico Beach. The category 4 storm was the first to target Northwest Florida and will forever impact future planning for the area – building codes, insurance rates and safety – after residents suddenly realized that their area faces just as much risk from deadly storms as the seemingly more vulnerable Florida cities to the south. The day after the storm, Florida Realtors® Disaster Relief Fund started accepting applications for aid and donations from Realtors throughout the state who wanted to help. A short while later, the national association’s Realtors Relief Fund (RRF) announced $400,000 in housing assistance for storm victims. Realtors, association staff, families and neighbors need so much. Any help you can offer is most appreciated.
Did you feel that? The market shifted
In the years leading up to 2018, a seller’s market dominated most areas of Florida. During the first half of 2018, a tight supply of for-sale homes frustrated buyers as median prices and interest rates moved higher and higher. As a result, buyers started to drop out, more sellers lowered asking prices, and bidding wars thinned out. By the second half of the year, quickly rising home prices became slowly rising home prices. Will all of this lead to a balanced market of buyers and sellers in 2019? Maybe. And when will the normal real estate cycle shift again to a buyers’ market? Stay tuned.
The ‘higher mortgage rates’ prediction finally came true
For five years, experts’ end-of-year predictions called for higher mortgage rates in the new year – and for five years they’ve been wrong. But that changed in 2018. While rates continue to hover below 5 percent, which is still historically low, they ended the year about a full percentage point higher than when the year began. In part that’s because the Federal Reserve boosted interest rates four times in 2018 and plans a couple more next year. The Fed’s interest rate increases immediately raise the cost of adjustable-rate mortgages and indirectly put pressure on fixed-rate loans.
A tip o’ the hat to the cap
Florida voters passed Amendment 2 in November, which made permanent a 10 percent cap on non-homestead property assessments each year. Florida Realtors advocated strongly for passage and celebrated the win after 66 percent of voters agreed. A permanent constitutional cap now gives the state’s small businesses some assurance they wouldn’t be priced out of the market on Jan. 1 of each year simply because property values went up.
Another cut to the business rent tax
Florida businesses will save $31 million dollars each year thanks to the Florida Legislature, which cut the state’s business rent tax again. The new rent-tax rate on commercial leases drops to 5.7 percent on Jan. 1, 2019. After the final gavel fell on the 2018 session of the Florida Legislature, Florida Realtors President Christine Hansen said that Realtors knew it was going to be a rough session given the state’s tight finances, but “with the help of our members, we managed to keep the momentum going to further reduce the Business Rent Tax.”
Blockchain could unblock closings
Blockchain technology is often associated with Bitcoin, but as a tool, it essentially takes a complex, multi-user transaction and makes it safer. Instead of the data sitting on a single server that all participants tap into, it replicates the data on everyone’s computer, making it harder for any single participant to fudge the figures. However, this additional safety and spread of data could also cut the paperwork time to closing in half – or more – if every necessary piece of data becomes instantly available to agents, title companies, lenders, etc. While change always takes time, it could lead to a system where a contract signed on Saturday can close by Thursday.
Builders can’t catch a break
The nation needs more new homes – but the cost for new construction keeps moving higher. There’s not enough vacant land; impact fees (a development charge by local governments to pay for increased city services) are going up; supplies cost more (in part due to Canadian lumber tariffs); there aren’t enough workers – and if there are, they don’t have the necessary skills. New home construction, once seen as the solution to a tight housing inventory, did not appear in 2018 – and it doesn’t seem to be on the horizon for 2019 either.
© 2018 Florida Realtors®
JANUARY 2019 MARKET UPDATE
STRONG INVENTORY LEADS THE WAY INTO 2019
“The numbers are in. Buyers continue to purchase in Southwest Florida,” said Mike Hughes, General Manager for Downing-Frye Realty, Inc. “2018 was another solid year for us. We again closed over $1Billion in sales volume and another 3,000 transactions. We’re ready for the new year! We’ll be moving our Bonita Springs office to a new ideal location, and our Marco Island office continues to grow. Downing-Frye is well-positioned for 2019 with over 1,100 listings.”
BONITA /ESTERO: MORE CHOICES FOR BUYERS
Current available inventory has increased by 61 units for single-family homes and 74 units for
condominiums. The current months of inventory stands at 6.8, indicating an active market. At the end of November the active inventory was 1,722 units, an increase of 9 percent compared to the 1,587 units on the market in November 2019. Area brokers anticipate more inventory hitting the market after the new year. Overall pending sales increased by 10 percent for the 12-month period ending November 30, 2018, but remained steady for November 2018 versus November 2017. For single-family homes, closed sales increased by 31 percent in November 2018 versus the same time last year and a 7 percent increase for the 12-month period ending November 30, 2018. In November the overall median closed price was $308,000 compared to $294,000 in November 2018.
FLORIDA: SALES, LISTINGS AND PRICES ARE UP
Florida’s housing market reported more sales, more new listings and higher median prices in November compared to a year ago. November marked 83 months-in-a-row (more than 6.5 years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $255,000, up 6.3 percent from the previous year while the statewide median price for condo-townhouse units was $185,000, up 5.1 percent over the year-ago figure. “Statewide inventory (active listings) of single-family homes continued to rise in November, with just over 96,000 homes, an increase of nearly 12 percent,” says Erica Plemmons, economist and director of housing statistics for Florida Realtors. “We see similar trends on the condo/townhome side of the market, with that inventory level up 6.6 percent to over 56,000 condos and townhomes.
USA: HOME SALES INCREASE AGAIN
Existing-home sales increased in November, marking two consecutive months of increases. Lawrence Yun, NAR’s chief economist, says two consecutive months of increases is a welcomed sign for the market. “The market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago. Rising inventory is clearly taming home price appreciation.” He added, “Inventory is plentiful on the upper-end, but a mismatch between supply and demand exists at affordable price points.” The median, existing home price for all housing types in November was $257,700, up 4.2 percent from November 2017 ($247,200). November’s price increase marks the 81st straight month of year-over-year gains. Forty-three percent of homes sold in November were on the market for less than a month.
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.
Congratulations to Bill Lynn – 26 Years!
Bonita Bay Dining Schedule
(Beginning Oct. 15)
Sundays during Football Season for 1:00 p.m. games
(Women are invited to attend beginning at noon)
Lunch Daily 11:00 a.m.-3:00 p.m.
11:00 a.m.-5:00 p.m.
11:00 a.m. – 10:00 p.m.
NAR Helps Secure FEMA Reversal On New Flood Policies During Shutdown
A Word from Downing-Frye Broker & General Manager Mike Hughes
Bonita Bay JANUARY Events Calendar
Jan. 28 | Trivia Night | 6:00 p.m. – Buffet Dinner | 6:45 p.m. – Trivia in Ballroom | $30 per person