01 Jul Bonita Bay Real Estate News | July 2020
As of July 1, 2020, there are 84 active listings in MLS in Bonita Bay; 10 less than last month. There are 20 single-family homes ranging in price from $499,000 to $4,995,000. The average list price is $2,487,545 and the average days on the market is 118. The combined days on the market is 206. In the carriage, mid-rise, townhouse, and attached villa market, there are 26 active listings in Bonita Bay. Prices range from $279,900 to $639,900. The average list price is $395,250. The average of days on the market is 127. The combined days on the market is 205. In the high-rise market, there are 38 active listings in Bonita Bay ranging in price from $650,000 to $6,750,000. The average list price is $1,733,050 and the average days on the market is 248. The combined days on the market is 246.
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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 69 sales with an average sales price of$398,234; these condos were on the market an average of 78 days; combined days on the market is 143.
- During the 12 months previous, there were 80 sales with an average sales price of condominiums was $363,909; these homes were on the market for 84 days; combined days on the market is 140.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 46 sales with an average sales price of $1,381,276; these homes were on the market an average of 180 days; combined days on the market is 263.
- During the 12 months previous, there were 55 sales with an average sales price of $1,383,064; these homes were on the market for an average of 212 days; combined days on the market is 442.
- During the last 12 months, there were 55 sales with an average sales price of $1,267,674; these homes were on the market an average of 112 days; combined days on the market is 199.
- During the 12 months previous, there were 69 sales with an average sales price of $1,037,364; these homes were on the market for an average of 141 days;combined days on the market is 227.
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JULY 2020 MARKET UPDATE
HIGH-END PURCHASES SOAR
“The high end buyers are back,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “The pending sales volume this June was 98 percent higher than the levels we saw in June 2019. Last June our pending sales volume was $86 million, and this June the pending sales volume was $170 million. Last June we had 9 pending sales above $1 million, and this June we had 36 pending sales above $1 million. The overall number of pending sale transactions also increased. Last June we had 218 pending sale transactions, and this June we had 290 pending sales transactions for a 32 percent increase. This is amazing activity during these extraordinary times.”
Buyers have been quicker to return to the Bonita- Estero housing market than sellers, as many buyers from the Northeast are now considering this area as an option for a permanent move. Also, many buyers have been re-allocating investment dollars into real estate, long considered to be the best long-term investment. In comparing May 2020 with May 2019, new listings are down by 5.3 percent and new pending sales are up 7.9 percent. The median closed sales price in May 2020 was $322,920, an increase of 2.5 percent over the year ago figure. May’s available inventory stood at 1,334 units.
FLORIDA: SIGNS OF RECOVERY
While there are lower levels of closed sales and new listings compared to a year ago, the median sales price increased and new pending sales for single-family existing homes rose 2.3 percent compared to a year ago – a positive sign for the housing sector, according to Florida Realtors Chief Economist Dr. Brad O’Connor. In contrast, new pending sales of condos and townhouses fell in May by 16.8 percent compared to May 2019. May’s closed sales of single-family homes statewide dropped 36.2 percent year-over-year, totaling 19,622, while condo-townhouse sales declined 50.3 percent, for a total of 6,069. “A large second wave of this pandemic is the greatest threat to the housing market and greater economy right now, so it’s important that we all continue to do our part to limit the spread – especially as we continue to try to reopen the economy,” said O’Connor.
USA: RECORD NUMBER OF PENDING SALES
Pending home sales mounted a record comeback in May, seeing encouraging contract activity after two previous months of declines brought on by the coronavirus pandemic. Every major region recorded an increase in month-over-month pending home sales transactions, while the South also experienced a year-over-year increase in pending transactions. “This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” said Lawrence Yun, NAR’s chief economist. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery. More listings are continuously appearing as the economy reopens, helping with inventory choices,” Yun said. NAR now expects existing-home sales to reach 4.93 million units in 2020 and new home sales to hit 690,000. Yun noted that in 2021, sales are forecast to rise to 5.35 million units for existing homes and 800,000 for new homes.
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.
Florida’s May Housing Market Shows COVID-19 Impact, Signs of Recovery
Florida Realtors’ data: Closed sales and new listings were down year-over-year due to the virus and economic turmoil. But median prices were up and new pending sales for single-family existing homes rose 2.3% – a positive sign for recovery, notes Chief Economist O’Connor.
ORLANDO, Fla. – Florida’s housing market in May continued to reflect the economic impact of the coronavirus pandemic that shut down businesses and roiled the global economy. While the latest housing data from Florida Realtors® reported lower levels of closed sales and new listings compared to a year ago, median sales price increased and new pending sales for single-family existing homes rose 2.3% compared to a year ago – a positive sign for the housing sector, according to Florida Realtors Chief Economist Dr. Brad O’Connor.
The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 676,000 last month.
“The most significant evidence we have of a rebound are the year-over-year changes we see for new pending sales in May,” he says. “That 2.3% increase is in significant contrast to what we saw in April, when new pending sales were about 35% lower than the previous April.”
In contrast, new pending sales of condos and townhouses last month fell by 16.8% compared to May 2019, but that’s an improvement over the April figure. O’Connor adds, “New pending condo and townhouse sales are clearly on a recovery trajectory right now, but are simply being surpassed by the more substantial recovery in single-family home new pending sales.”
“As Florida’s businesses and economy continue to reopen, it remains vital for all of us to follow the recommended health guidelines, practice social distancing and take the necessary precautions to safeguard each other and our communities,” says 2020 Florida Realtors President Barry Grooms, a Realtor and co-owner of Florida Suncoast Real Estate Inc. in Bradenton. “The pandemic has shown that having a place to call home is priceless – and all across the state, a buyer or seller can turn to a local Realtor for support, advice and expertise.”
Last month’s closed sales of single-family homes statewide dropped 36.2% year-over-year, totaling 19,622, while condo-townhouse sales declined 50.3%, for a total of 6,069. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
In May, the statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 101 consecutive months. The statewide median sales price for single-family existing homes was $270,000, up 1.5% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $201,472, up 3.3% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Chief Economist O’Connor notes that the drop in closed sales in May wasn’t surprising, based on what the pending sales data in March and April showed. However, “the good news is that this is likely the worst of it for now,” he says. “May’s pending sales clearly show we’re recovering, it’s just that we won’t see this recovery in closed sales until a month or two from now when these deals are finalized.
“Overall, housing demand continues to be driven by record-low mortgage rates that show no signs of rising significantly any time soon. June could be a very strong month for sales given the high levels of pent-up demand that has likely been released in recent weeks. Credit remains tight, but there is some evidence that it’s loosened up a bit compared to where we were in April, as lenders have adjusted to the situation and incorporated new information about the performance of the economy. Lenders continue to face an enormous volume of applications, however, both for purchases and refinancings, which is affecting their ability to accommodate the demand we’re seeing.”
Ultimately, what happens next with the COVID-19 pandemic will affect the long-run outlook for housing in Florida and elsewhere in the U.S., O’Connor says.
“Most of the official economic forecasts from both public- and private-sector economists as of late bake in an assumption that there will not be a major resurgence of the virus this year, which means we should consider those figures cautiously,” he says. “A large second wave of this pandemic is the greatest threat to the housing market and greater economy right now, so it’s important that we all continue to do our part to limit the spread – especially as we continue to try to reopen the economy.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.23% in May 2020, down from the 4.07% averaged during the same month a year earlier.
Source: National Association of Realtors® (NAR)
© 2020 Florida Realtors®
By Marla Martin, Florida Realtors
Heightened Buyer Demand Influences
Naples Real Estate Market
Naples, Fla. (June 19, 2020) – REALTORS® kept busy in May as pent-up demand for homebuying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April. As remarkable, showings in May outpaced showings a year ago, which increased 5.5 percent compared to May 2019. According to the May 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), broker analysts reviewing the report found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak.
The NABOR® May 2020 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:
“Despite the restrictions of social distancing, with many REALTORS® conducting virtual open home tours and adopting electronic signings and virtual closings, 599 buyers purchased homes in Naples last month. REALTORS® and brokerages adapted to the challenges at hand - and will continue in the future – to ensure the real estate industry is a leading factor in our country’s economic recovery,” remarked NABOR® President Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists.
“The Naples real estate market is extremely resilient,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “REALTORS were able to adapt fast as new buyers started pouring into the market in May. This is apparent because the report shows pending sales in May increased 90 percent compared to pending sales in April.”
Upon reviewing the May Market Report, Coco Amar, VP, Strategic Growth, South Florida, William Raveis Real Estate, commented, “Buyers have less negotiating power because inventory in the Naples area continues to decline. This shrinking inventory led to modest price increases in the single-family home market during May, which saw a 31.8 percent decrease in inventory and 3.7 percent increase in median closed prices compared to May 2019.
Prices held stable, in spite of the outlying issues, with the year-to-date median closed price up a modest 2.3 percent. Jeff Jones, Broker at Keller Williams Naples, pointed out, “The report showed only 103 price increases during May out of the 5,116 properties in inventory, and there were fewer price reductions in May than reported in April.”
Overall inventory during May decreased 27.2 percent to 5,116 homes from 7,023 homes in May 2019. However, while there was a 4 percent decrease in new listings of single-family homes in May, there was a 6.5 percent increase in new listings of condominiums.
“We have a 5.8-months’ supply of single-family homes in Naples,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “Buyers don’t have as many single-family home choices right now so they shouldn’t hesitate to make an offer if they find a home they love.”
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May 2019 | May 2020 | CHANGE |
| Total closed sales (month/month) | 1,188 | 599 | -49.6% |
| Total pending sales (homes under contract) (month/month) | 1,218 | 1,167 | -4.2% |
| Median closed price (month/month) | $354,450 | $333,000 | -6.1% |
| Total active listings (inventory) | 7,023 | 5,116 | -27.2% |
| Average days on market | 107 | 91 | -15.0% |
| Single-family closed sales (month/month) | 595 | 314 | -47.2% |
| Single-family median closed price (month/month) | $410,000 | $425,000 | +3.7% |
| Single-family inventory | 3,608 | 2,461 | -31.8% |
| Condominium closed sales (month/month) | 593 | 285 | -51.9% |
| Condominium median closed price (month/month) | $270,000 | $260,000 | -3.7% |
| Condominium inventory | 3,415 | 2,655 | -22.3% |
Historically, some sellers in Naples take their homes off the market after season, and May inventory and pending sales activity always reflected this behavior. However, COVID-19 left many sellers uncertain about the real estate market. With the quarantine recommendations in place, fewer sellers listed homes during May. Despite an inventory drop, pent-up demand unleashed a new set of buyers in May, which changed history. May’s pending sales activity, a measure of signed contracts and not closings, increased 90 percent compared to April 2020, despite tight supply.
Heightened buyer demand is also evident in the number of Days on Market for May as reflected in a decrease of 15 percent to 91 days on market compared to May 2019, which reported 107 days on market.
“There was a significant number of high-end pending sales in May,” said Hughes, who added that the stock market has come back from a low of 18,000 in late March to over 25,000 at the end of May. “The impact of the stock market rebound renewed consumer confidence in May with a certain percentage of wealthy individuals looking to diversify their portfolio and invest in real estate again.”
Spencer E. Haynes, Director of Business Development and Broker with John R. Wood Properties, is optimistic that summer sales will be strong in Naples, but added “even if a second surge of coronavirus cases emerges that force new restrictions, REALTORS® and the public have become very adept at using technology like virtual showings and electronic closings, which can help overcome the challenges that might affect home sales activity 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 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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FHFA: Home Prices Up 0.2% in April, 5.5% Year-to-Year
Home prices continue to go up, seemingly immune to the pandemic. The FHFA index tracks all U.S. home prices mortgages held by Fannie Mae and Freddie Mac.
WASHINGTON – U.S. house prices rose in April, up 0.2% month-to-month, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI), and up 5.5% year-to-year.
The month-to-month increase was greater in April than it was the month before. In March, prices rose 0.1%.
“Regionally, results varied,” says Dr. Lynn Fisher, deputy director of the Division of Research and Statistics at FHFA. “Two of the usually stronger growth areas, the Mountain and Pacific divisions, were flat over the month, but other divisions continued to experience strong price appreciation even with all of the COVID-19 challenges.”
Fisher says that while the New England and South Atlantic regions saw monthly price decreases, all divisions posted positive year-to-year growth of at least 5%.
“The number of transactions used to estimate the HPI were slightly down from March to April but were still a robust sample,” she adds. “We expect the normal spring bump in sales was pushed off by the COVID-19 shutdowns and may extend into the summer months as states reopen and real estate sales pick back up.”
For the nine census divisions, seasonally adjusted monthly house price changes from March 2020 to April 2020 ranged from -0.5% in the South Atlantic division to +0.8% in the West South Central division. The 12-month changes were all positive, ranging from +5.0% in the Middle Atlantic division to +6.8% in the Mountain division.
© 2020 Florida Realtors®
By Kerry Smith
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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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