Bonita Bay Real Estate News | July 2021

Bonita Bay Real Estate News | July 2021

As of July 1, 2021, there are 25 active listings in our area multiple listing service (MLS) in Bonita Bay; 6 more than last month.
 
For comparison, last year on July 1, there were 84 listings in Bonita Bay.
 
There are 8 single-family homes ranging in price from $999,000 to $4,400,000. The average list price is $2,877,813 and the average days on the market is 67. The combined days on the market is 110.
 
In the carriage, mid-rise, townhouse, and attached villa market, there are 4 active listings in Bonita Bay price at $350,000 and $585,000. The average list price is $463,725 and the average days on the market is 3. The combined days on the market is 3.
 
In the high-rise market, there are 13 active listings in Bonita Bay ranging in price from $999,000 to $8,200,000. The average list price is $3,024,077 and the average days on the market is 189. The combined days on the market is 191.
 
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 91 sales with an average sales price of $392,175; these condos were on the market an average of 83 days; combined days on the market is 159.
  • During the 12 months previous, there were 69 sales with an average sales price of condominiums was $398,234; these homes were on the market for 78 days; combined days on the market is 143.
BONITA BAY HIGH-RISES
  • During the last 12 months, there were 102 sales with an average sales price of $1,472,485; these homes were on the market an average of 156; combined days on the market is 236.
  • During the 12 months previous, there were 47 sales with an average sales price of $1,383,896; these homes were on the market for an average of 180 days; combined days on the market is 263.
SINGLE-FAMILY BONITA BAY HOMES
  • During the last 12 months, there were 97 sales with an average sales price of $1,646,479; these homes were on the market an average of 79 days; combined days on the market is 163.
  • During the 12 months previous, there were 56 sales with an average sales price of $1,278,072; these homes were on the market for an average of 112 days; combined days on the market is 198.
 
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.


July 2021 Market Update

DEMAND STILL STRONG GOINT INTO SUMMER
“New listings are coming in daily, but the demand is so strong that they are absorbed very quickly,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc., “If it’s your desire to purchase soon, it would be best to be working with a Downing-Frye agent that is monitoring our daily listing activity because properties are selling about as fast as they come on the market. Some sellers list high and then later reduce their price, while others list lower and then raise their price. In May, the Naples area had as many prices increases as price decreases. Although financing rates remain favorable, most Downing-Frye sales have been cash transactions. During the first half of 2021, we had 2,502 pending sales, which were 64 percent more than the first half of 2020; and 2,335 closings, which were 82 percent more than the first half of 2020. Our 303 pending sale transactions for June at $198 million were 20 percent higher than our average June sales over the last five years. Selling activity is still quite elevated, and the summer buying season has only begun.”
 
BONITA / ESTERO: BUYER FRENZY LEVELS-OFF
Inventory levels in May 2021 saw little change compared to May 2020, but steady high demand continued to deplete that inventory. Area brokers still saw multiple offers come in on new properties as soon as they became available. Additionally, due to ongoing price increases on materials and labor shortages for area home builders, buyers considered a resale purchase that they could upgrade as opposed to waiting for new construction. Area experts also agreed that buyers still consider Bonita Springs and Estero a top market to consider when purchasing a new home. The median closed sales price in May 2021 was $395,000, up 22.7 percent over the year-ago figure.
 
NAPLES AREA: HOME PRICES CLIMB IN MAY
Homes in the Naples area were being sold at 99.1 percent of the list price in May. A tight inventory and buyer demand continued to push prices upward in May, which resulted in an overall median closed price increase of 29.4 percent to $433,500 from $335,000 in May 2020. Overall closed sales increased 164.4 percent to 1,618 from 612 in May 2020 (a month when all the world was in COVID-19 lockdown). For perspective, closed sales increased 36 percent in May 2021 compared to May 2019 (a non-pandemic lockdown month). Nevertheless, closed sales activity in May 2021 outperformed any other May in the history of NABOR®’s market statistics reports. Overall inventory fell 79.1 percent in May to 1,290 homes from 6,177 homes in May 2020, but monthly new listings activity continues. May welcomed 1,274 new listings, a 7.6 percent increase from 1,184 in May 2020.
 
MARCO ISLAND AREA: SALES REMAIN STRONG
The Marco Island Area Assoc. of Realtors® reported that June 2021 compared to June 2020 showed the following: Total inventory (249 properties) was down by 81.4 percent, closed sales (271 properties) were up by 201.1 percent and pending sales (183 properties) were up by 52.5 percent. The June median sales price was $585,000, which is 3.62 percent higher than June 2020.
 
FLORIDA: STRONG MARKET IN MAY
Closed sales of single-family homes statewide in May totaled 30,985, up 57.9 percent year-over-year, while existing condo-townhouse sales totaled 15,491, up 155.2 percent over May 2020. “Florida’s inventory of existing single-family homes listed for resale increased slightly over the course of the month, rising from 31,618 as of the end of April up to 32,021 by May 31,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “While that’s only a little over a 1 percent increase, it’s significant because this is the first time Florida’s single-family inventory has increased during any month since March of 2020. Of course, we are still down 58.2 percent compared to a year ago, so we are by no means out of the woods in terms of the housing shortage – but we can at least take this flattening inventory curve as a sign that we might finally be at the start of a long march back toward a balanced market.” 
 
USA: VACATION HOME SALES SKYROCKET
“Vacation homes are a hot commodity at the moment,” said Lawrence Yun, NAR’s chief economist. “With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.” Areas where vacant seasonal, occasional or recreational-use housing account for at least 20 percent of homes are identified as vacation home counties. Median existing-home sale prices in vacation counties grew faster than in the rest of the country, increasing 14.2 percent compared to 10.1 percent in non-vacation home counties. The top 5 counties are: Lee County, Florida; Oscoda County, Michigan; Swain County, North Carolina; and Collier County, Florida. 
 
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.

5 Hard-to-Ignore Reasons Why You Should Always Work With a Realtor

From getting you the best deal to keeping you on the right side of the law, there are only upsides as to why use a Realtor.
 
Buying and selling a home is stressful. Showings. Listings. Open houses. Taxes. Closing costs. Paperwork on top of paperwork on top of paperwork. 
 
 
And those are just the things you’ve thought of off the top of your head.
While it’s easy to think you can handle it all yourself, thanks to the abundance of information readily available on the internet (and from the Property Brothers!), the fact is that a real estate transaction is time-consuming and complicated, and, if not handled properly, could end up costing you money. 
 
Just like you wouldn’t represent yourself in a court of law, it’s simply not in your best interest to represent yourself when you’re buying or selling a home. It’s worth it to work with someone who knows real estate inside and out – a Realtor. 
Here are just a few of the compelling (and sanity-saving) reasons why to use a Realtor: 
 
1. Realtors abide by a code of ethics.
While we believe most real estate professionals are honest folks, those who belong to the National Association of Realtors (NAR) have agreed to conduct themselves according to the Realtor Code of Ethics, 17 rules that ensure standards of practice to promote honesty and fairness. 
 
What this means is that your Realtor is looking for you – and only you. Plain and simple.
 
2. They have insider information.
Every industry has its own special language, its own vast networking system, its own trade secrets, and the world of real estate is no different.
 
Realtors network constantly with other real estate pros and have exclusive access to market data through the National Realtors Association that help them keep up with what’s happening in the housing market. They know the trendy subdivisions and the up-and-coming blocks, and they watch like hawks to find great deals for buyers. 
 
Realtors know CMAs, EIKs and FSBOs. Amortization, appraisals and assessments. Collateral, co-mingling and cash reserves. If you don’t understand this lingo (and most people don’t), consider getting a Realtor on board to help you translate.
 
They also know that advertising isn’t what sells most homes, it’s networking.
Using a Realtor to buy or sell your home gives you access to his or her extensive contact list of colleagues as well as friends, family and previous clients. Your Realtor could know another Realtor who knows a family that’s looking for exactly what you’re selling or who’s selling just what you’re in the market for.
It’s these relationships with other real estate pros that can help you get a fair representation of the property as well as the best final sales price, whether you’re buying or selling. 
 
3. They’re marketing masters …
In addition to marketing behind the scenes with colleagues, Realtors know how to make your home shine — from planning the perfect open house to staging your home for showings to photographing your property in the best possible light (literally) for listings. 
 
We know you have good taste and that HGTV has taught you a thing or two about selling a home. But we also know you have a full-time job, a family and a hundred other things on your to-do list. It’s perfectly OK to take the back seat and let a pro handle your real estate venture. 
 
Truth is, 30 percent of buyers found their home with the help of an agent and 51 percent found theirs on the internet, according to a 2017 National Association of Realtors (NAR) survey. 
 
Realtors have made it their job to build huge social media followings, and their association with the NAR provides them with all the latest marketing strategies. They network through things such as Facebook groups, NextDoor and LinkedIn to reach even more potential buyers and sellers. 
 
You, as a homeowner, can only share your listing so many times with your Facebook friends before they snooze you for 30 days. 
 
4. … and tough negotiators.
It’s all about that final price, and for sellers, the idea of handing part of that to an agent can feel a little unsettling.
 
Consider this: The average selling price for a “for sale by owner” home was $208,700 compared with $235,000 for an agent-assisted sale, according to 2016 numbers from NAR, which points up that the odds of getting the price you want (and maybe even more), increase when you have a seasoned expert at your side. 
 
And a bigger profit means you can still walk away with the cash you hoped for.
Plus, Realtors aren’t emotionally invested in your property. And that’s a good thing, because more than likely, you are. Your home holds memories, good and bad, and letting go can be a heart-wrenching process.
 
Human beings simply don’t make the best decisions when they’re emotional. A Realtor can be a common-sense constant who negotiates with his head instead of his heart.
 
5. Realtors keep you on the right side of the law. 
Do you have to tell a potential seller about that water leak you never had repaired? Do you need to test your older home’s paint for lead before putting it on the market? Are there any deed restrictions on the property you’re hoping to buy? Who the heck is Dodd-Frank?
 
When buying or selling a home, dozens of questions will come up that you simply won’t know the answer to — and an internet search won’t quickly answer. This is where a Realtor comes in particularly handy.
 
Realtors keep up with the ever-changing rules and regulations that govern the sale of property, thanks to a constant flow of up-to-date information from the National Association of Realtors and related state Realtors associations, so you don’t have to.

Home Prices Climb in May

over-month statistics is not recommended at this time. Mandatory COVID-19 restrictions during the Spring of 2020 disrupted the market resulting in inequitable statistical comparisons.

Naples, FL (June 25, 2021) – Homes in the Naples area were being sold at 99.1 percent of the list price in May. A tight inventory and buyer demand continued to push prices upward in May, which resulted in an overall median closed price increase of 29.4 percent to $433,500 from $335,000 in May 2020, according to the May 2021 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 predict continued price increases in 2021, but noted monthly showing and sales activity is beginning to show signs of deceleration from the remarkable market experienced during the first quarter of 2021.
 
Interestingly, the May Market Report showed the same number of list price increases for the month of May (247) as decreases (247), which, according to Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., is a reflection of behaviors from two types of sellers: “the ones who, despite comparable pricing recommendations from a REALTOR®, seem to pick a high listing price and eventually have to decrease the home’s price to attract buyers; and those who listen to a REALTOR® and price the home right, but because of rising prices due to strong buyer demand in our market right now, end up selling the home at a higher price.”
 
“Some sellers have been asking about price wars,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “This may not always be the best strategy as some buyers are weary of losing out and the seller may not get the desired result. It’s always best to consult with a REALTOR® as to the best strategy when pricing a home.”
 
Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, agreed with Lane and added, “A REALTOR® will help a seller price a home dead on the money or just a little below market to drive in offers. Buyers are getting keen on the tactic by some sellers to price way above value, and those sellers may not get the action they expect.”
 
Cash sales in May accounted for 58.4 percent of the closed sales transactions. The cash buyers continued to create challenges for competing buyers who required financing. It took an average of 90 days for a home to go from list to contract in May 2020, but in May 2021, the average days on the market was reduced to 43 days, a 52.2 percent decrease.
 
But the trend of paying cash for a home does not preclude those buyers who want to finance from purchasing a home. Buyers who are prequalified for a mortgage often fare well during negotiations and enjoy a faster closing process than those who are not prequalified. Also, as pointed out by Phil Wood, President & CEO of John R. Wood Properties, “Many capable cash buyers are leaving their money in the stock market because they can achieve a higher return there as compared to the low mortgage rates, of approximately 3.2%.”
 
The May Market Report showed overall closed sales increased 164.4 percent to 1,618 from 612 in May 2020 (a month when all the world was in COVID-19 lockdown). For perspective, closed sales increased 36 percent in May 2021 compared to May 2019 (a non-pandemic lockdown month). Nevertheless, closed sales activity in May 2021 outperformed any other May in the history of NABOR®’s market statistics reports.
 
The NABOR® May 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: 
 

Overall inventory fell 79.1 percent in May to 1,290 homes from 6,177 homes in May 2020, but monthly new listings activity continues. May welcomed 1,274 new listings, a 7.6 percent increase from 1,184 in May 2020. New listings that come on the market each month help to temper the drop in overall inventory and provide more opportunities to eager buyers.
 
“We’re in for a period of low sustained inventory,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “But even when demand begins to level off – perhaps in the second half of the year as is historically the case – our area will not see any real decline in prices because new fundamental values for our market are being set today and they are not likely to trend down again.”
 
Cash sales were not the only contributing factor to the drop in days on the market. Another factor was the 45 percent increase in showings for May (42,380 up from 29,319 in May 2020), which ultimately resulted in a 46.5 percent increase in pending sales for May to 1,710 pending sales from 1,167 pending sales in May 2020.
 
Historically, the Naples housing market’s activity in the first half of the year is not sustained during the second half of the year. However, since tourism to Florida is expected to increase this summer and buyers from foreign countries may also begin to arrive in the coming months, a return to more normalized buying behavior in the second half of the year was discussed although remains uncertain.

View May 2021 Market Statistics

 

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. 

f 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.

 

 

 

 

 

 

 


Buying a Home? When to Check Credit Score

Certain credit-based applications need more preparation than others, and for many purchases – including home buying – a credit check should be the first step, according to FICO, the credit-score company.

 
The check helps buyers confirm that they qualify for a home, and even if so, it may give them a chance to improve their score. It can also provide an early check about a likely loan’s terms and costs before an application is made.
 
Here’s a guide to when to start checking your credit score.

Mortgage: 6 to 24 months before you apply

Before shopping for a new home or refinancing a current mortgage, check credit scores at least six months before applying – more if you’ve had trouble with credit in the past. Loan options – by availability and terms – can be limited for people with a lower credit score, and an early check gives homebuyers time to fix any problems. Homebuyers with excellent credit should also understand how they can maintain their high approval score until the day of closing to make sure their financing doesn’t fall through.

Apartment: 75 to 90 days before a current lease ends

Landlords often check credit reports or rental-specific credit scores before approving a rental application. Evictions and other serious delinquencies harm credit and lead to a denied application. Check credit scores before notifying a current landlord that you plan to move – a way to know whether it’s safe to start shopping for a new apartment, or if it’s better to stay put for another 12 months.

Credit card: Before you apply

FICO says there’s a credit card for almost every credit-score range, but knowing a score helps you narrow down your options. If considering a specific credit card, checking FICO Scores before applying can help them predict the likelihood that you’ll qualify. In addition, borrowers can shop for credit cards that fit their credit profile.

Cell phone financing: Before you apply

Many cell phone carriers got rid of free phones and two-year contracts. In its place, they allow customers to finance the full price of a new smartphone over 24-36 months. Credit scores influence the finance agreement and any down payment requirements. People with a low credit score may have to pay more upfront for the phone or financing options may be limited.

Auto loan: 90 days to six months before you apply

It’s possible to get a car loan with a low credit score, but generally for less favorable terms, including a higher interest rate and higher monthly payment. Checking credit scores a few months before car shopping allows buyers to estimate what they can afford. It’s sometimes better to delay a car purchase in order to improve a credit score rather than accept a high-interest rate and higher monthly payment.
 
Since checking FICO Scores is a soft inquiry, the score won’t be affected by personal credit checks.
Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research, and legislative representation to about  200,000 members in 51 boards/associations. Florida Realtors® Newsroom website is available floridarealtors.org/newsroom.
 




 
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.