Bonita Bay Real Estate News | March 2021

Bonita Bay Real Estate News | March 2021

As of March 1, 2021, there are 49 active listings in our area multiple listing service (MLS) in Bonita Bay; 19 less than last month. There are 11 single-family homes ranging in price from $750,000 to $3,895,000. The average list price is $2,223,455 and the average days on the market is 115. The combined days on the market is 290. In the carriage, mid-rise, townhouse, and attached villa market, there are 5 active listings in Bonita Bay. Prices range from $215,000 to $419,000. The average list price is $294,780. The average of days on the market is 98. The combined days on the market is 133. In the high-rise market, there are 33 active listings in Bonita Bay ranging in price from $675,000 to $6,945,000. The average list price is $1,942,967 and the average days on the market is 218. The combined days on the market is 233.

Whether you are buying or selling, if you are looking for REALTOR® representation, think of me.

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 82 sales with an average sales price of $397,234; these condos were on the market an average of 93 days; combined days on the market is 166.
  • During the 12 months previous, there were 82 sales with an average sales price of condominiums was $385,168; these homes were on the market for 75 days; combined days on the market is 135.
 
BONITA BAY HIGH-RISES
  • During the last 12 months, there were 69 sales with an average sales price of $1,300,383; these homes were on the market an average of 182; combined days on the market is 280.
  • During the 12 months previous, there were 51 sales with an average sales price of $1,365,338; these homes were on the market for an average of 195 days; combined days on the market is 270.
 
SINGLE-FAMILY BONITA BAY HOMES
  • During the last 12 months, there were 69 sales with an average sales price of $1,394,325; these homes were on the market an average of 113 days; combined days on the market is 184.
  • During the 12 months previous, there were 68 sales with an average sales price of $1,156,382; these homes were on the market for an average of 148 days; combined days on the market is 235.
 
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.


March 2021 Market Update

PERFECT STORM FOR SELLERS 
 “We’re in remarkable times,” said Mike Hughes, vice president of Downing-Frye Realty, Inc. “Factors are coming together that make it very advantageous for sellers. More and more people are leaving the Northeast and moving to Florida, knowing that working remotely gives them the opportunity to live anywhere they desire – and they desire Southwest Florida. At the same time, Floridians on the east coast are migrating to the west coast to get away from high density living. Add to that mix the Governor’s message of Florida staying open for business, and you have a situation where Sellers are receiving multiple offers. It’s not quite a bidding war, but time is not on your side if you’re a Buyer. Cash offers abound and demand is high. Our year-to-date closings are up 60 percent over last year, and pending sales are up 39 percent. Although our inventory at the end of February was down by 24 percent, we’re still outperforming most of the market.” 
 
BONITA / ESTERO: MEDIAN PRICE RISES
Over the last 12 months, the median home price has increased incrementally by about 1 percent each month. The median sales price in January was $354,000. There was also a notable increase in activity for properties priced at $2 million and above. In January 2021, the luxury market experienced an 87 percent increase in closed sales. While pending and closed sales are both up by 68+ percent, the supply of inventory is at just 2 months’ supply with 23.4 percent less listings coming on the market in January 2021 compared to January 2020. Current listings stand at 516 properties.
 
NAPLES AREA: BUYERS DESCEND ON NAPLES
Buyers fleeing frigid weather descended on Naples in full force during January, which reported a 38.5 percent increase in overall pending sales to 2,210 pending sales from 1,359 pending sales in January 2020. Also in comparing January 2021 to January 2020: overall inventory fell 59.7 percent to 2,750 homes from 6,828 homes in January 2020; the median closed price increased 14.7 percent to $395,000 from $344,500 in January 2020; and the total closed sales were up 49.7 percent, while the total number of active listings fell by 59.7 percent with only 2,750 properties on the market. Showings increased 36 percent to 57,468, the highest monthly number in the past 12 months. 
 
MARCO ISLAND AREA: SALES REMAIN STRONG
The Marco Island Area Assoc. of Realtors® reported that February 2021 compared to February 2020 showed the following: Total inventory (459 properties) was down by 69.62 percent and closed sales (212 properties) were up by 35.9 percent with a dollar volume ($159,415,266) that was 63.61 percent higher. The February median sales price was $413,500, which is 29.83 percent higher than February 2020.
 
FLORIDA: STRONG HOUSING MARKET IN JANUARY
Florida’s housing market continued to show momentum in January even with the ongoing pandemic, with more closed sales, rising median prices, more new pending sales and increased pending inventory compared to a year ago. Single-family existing home sales rose 18 percent compared to a year ago, while existing condo-townhouse sales were up 24.6 percent. The statewide median sales price for single-family, existing homes was $305,000, up 15.1 percent from the previous year, and for condo-townhouse units was $230,000, up 15 percent. January’s inventory (active listings) continued to be constrained. New listings of condos and townhouses were down statewide by almost 7 percent. Single-family existing homes were at a very restricted 1.6-months’ supply while condo-townhouse inventory was at a 3.9-months’ supply. 
 
USA: INVENTORY DOWN 25 PERCENT IN LAST YEAR
“Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market,” said Lawrence Yun, NAR’s chief economist. “Sales easily could have been even 20 percent higher if there had been more inventory and more choices.” 
 
The median existing-home price for all housing types in January was $303,900, up 14.1 percent from January 2020 ($266,300), as prices increased in every region. January’s national price jump marks 107 straight months of year-over-year gains. Whereas much of the economy has suffered due to COVID-19, the housing sector has been one of the few bright spots. In NAR’s latest quarterly report, released last week, home prices in every tracked U.S. metro area increased during the fourth quarter of 2020. Seventy-one percent of the homes sold in January 2021 were on the market for less than a month. MARCH 2021 df “We’re in remarkable times,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Factors are coming together that make it very advantageous for sellers. More and more people are leaving the Northeast and moving to Florida, knowing that working remotely gives them the opportunity to live anywhere they desire – and they desire Southwest Florida. At the same time, Floridians on the east coast are migrating to the west coast to get away from high density living. Add to that mix the Governor’s message of Florida staying open for business, and you have a situation where Sellers are receiving multiple offers. It’s not quite a bidding war, but time is not on your side if you’re a Buyer. Cash offers abound and demand is high. Our year-to-date closings are up 60 percent over last year, and pending sales are up 39 percent. Although our inventory at the end of February was down by 24 percent, we’re still outperforming most of the market.”
 
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®. 

Home Prices Up in All Metro Areas in Q4 2020

Key Highlights
  • Single-family existing-home prices rose in all measured metro areas in the fourth quarter.
  • Eighty-eight percent of metro areas had double-digit price gains.
  • The monthly mortgage payment on a typical existing single-family home rose to $1,040 and the family income needed to afford a home increased to $49,908, compared to one year ago.

WASHINGTON (February 11, 2021) – Every metro area tracked by the National Association of Realtors® through the fourth quarter of 2020 witnessed home prices grow from a year ago, according to NAR’s latest quarterly report.
 
Eighty-eight percent of the metros followed (161 areas) saw double-digit price increases.1 For comparison, only 115 metro areas saw such growth in the third quarter.
 
“The fourth quarter of 2020 presented circumstances ripe for home price increases,” said Lawrence Yun, NAR chief economist.
 
“Mortgage rates reached record lows, thereby driving up the demand,” he continued. “At the same time, inventory levels also reached record lows, leading to grim inventory conditions of insufficient supply in the fourth quarter.”
 
The highest price gainers were Bridgeport, Conn. (39.0%); Pittsfield, Mass. (32.2%); Atlantic City, N. J. (30.0%); Naples, Fla. (29.9%); Barnstable, Mass. (28.9%); Crestview, Fla. (28.6%); Boise City, Idaho (27.1%); Binghamton, N.Y. (24.4%); Kingston, N.Y.
(24.2%); and Spokane, Wash. (23.6%). It is worth noting that national destination sites such as Atlantic City, Barnstable, and Naples, along with small towns within driving distance from major cities like Binghamton and Kingston in New York, all saw large price increases, an indication of the strong demand for vacation homes and affordable homes during the ongoing pandemic.
 
“Although tourism took a major hit overall throughout 2020, our data shows that vacation housing still did well in terms of sales,” Yun said. “Many people purchased in these areas because they found themselves with new work-from-home freedoms.”
Eight places in the West region, along with two areas in the East, combined for the 10 most expensive metros in the fourth quarter. This included San Jose, Calif. ($1.40 million); San Francisco, Calif. ($1.14 million); Anaheim, Calif. ($935,000); Urban Honolulu, Hawaii ($902,500); San Diego, Calif.
($740,000); Los Angeles, Calif. ($688,700); Boulder, Colo. ($661,300); Seattle, Wash., ($614,700); Nassau, N.Y. ($591,600); and Boston, Mass. ($579,100). With the exception of Boulder, these same metros—the most expensive markets—all saw double-digit growth in median single-family existing-home sale prices.
 
The national median existing single-family home price rose 14.9% on a year-over-year basis, to $315,900. All regions experienced double-digit year-over-year price growth. The Northeast led this charge at 20.7%, followed by the West at 15.5%, the Midwest at 15.1% and finally the South at 14.0%.
 
While home sellers have benefited from the fourth quarter price increases, Yun says the large shifts in home prices could soon become detrimental to homebuyers. “The average, working family is struggling to contend with home prices that are rising much faster than income,” he said. “This sidelines a consumer from becoming an actual buyer, causing them to miss out on accumulating wealth from homeownership.”
 
Nonetheless, Yun notes that low mortgage rates are helping many buyers afford their monthly mortgage payments. In the fourth quarter of 2020, a family needed an income of $49,908 to cover a 30-year fixed-rate mortgage with 20% down payment affordably, which is only slightly higher than the income required to afford a home one year ago ($48,960 in 2019’s fourth quarter). In a majority of metro areas—130 of the 183 metro areas NAR tracked—a family needed less than $50,000 to pay their mortgage (71% of metros; 69% in 2020 Q3).
 
However, in seven metro areas, NAR found that a family needed more than $100,000 in income to buy a house. This was the case in San-Jose-Sunnyvale, Calif. ($222,989); San Francisco, Calif. ($181,576); Anaheim, Calif. ($148,925); Urban Honolulu, Hawaii ($143,748); San Diego, Calif. ($117,865); Los Angeles, Calif. ($109,694); and Boulder, Colo. ($105,330).
 
On average, families typically spent 14.8% of their income on mortgage payments based on a median family income of $84,313 in the fourth quarter (14.9% one year ago) if assuming a 20% down payment mortgage.2 With higher home prices, the monthly mortgage payment marginally rose to $1,040 ($1,020 one year ago). This is the case even as the effective 30-year fixed mortgage rate3decreased to 2.81% in the fourth quarter of 2020 (3.76% one year ago).
 
The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
 
Source: National Association of REALTORS®

No Home Left Behind: Buyers Descend on Naples Housing Market in January

Naples, FL (February 24, 2021) – Buyers fleeing frigid weather descended on Naples in full force during January, which reported a 38.5 percent increase in overall pending sales (homes under contract) to 2,210 pending sales from 1,359 pending sales in January 2020, according to the January 2021 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Not surprisingly, as a result of impressive activity during the fourth quarter of 2020, overall closed sales in January increased 49.7 percent to 1,109 closed sales from 741 closed sales in January 2020, leaving agents with 2.6 months of inventory at the end of the first month of the new year.
 
“Buyer demand is remarkably high,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “We are beginning to see some ‘over-asking price’ offers.”
 
Jeff Jones, Broker at Keller Williams Naples, agreed with Lane and responded that “there were also more price increases in January than decreases. Jones continued, “REALTORS® are trained to counsel sellers on setting realistic home prices; but because inventory is so limited right now, asking prices for many homes in Naples during January were higher than appraised values.”
 
According to the report, showings in Naples increased 36 percent to 57,468 in January from 42,299 in January 2020. This was the highest number of showings recorded in one month over the past 12 months.
 
Overall inventory in January fell 59.7 percent to 2,750 homes from 6,828 homes in January 2020. The radical and continuous reduction in inventory is changing the dynamic of the transaction. According to broker analysts, in addition to more multiple offer encounters, their agents are reporting an increase in the use of escalation clauses, which is a clause stating that the buyer will pay a certain amount of money above the highest offer the seller receives, as well as other unique buying tactics such as the buyer writing a personal letter to a seller expressing their deep interest in the home.
 
“I suspect we may soon see more homes listed with an offer window [a limited amount of time, typically a week, wherein the seller will give all potential buyers a window in which to submit offers prior to a response],” said Budge Huskey, CEO, Premier Sotheby’s International Realty.
 
The median closed price in January increased 14.7 percent to $395,000 from $344,500 in January 2020. And while this is $10,000 lower than the median closed price reported in December, broker analysts reviewing the January report feel the market’s inability to keep up with demand and the 65.1 percent increase in closed sales for homes above $2 million in January will have a substantial impact on where prices go in the coming months.
 
The NABOR® January 2021 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:
 
Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, added that he is seeing an increase in revitalization efforts in older communities throughout Naples. “There is great potential within our more established neighborhoods that have no land for new home builds. Many of these older homes are ideal for a complete remodel or possibly a tear down and spec home.”
Huskey concurred and remarked that we are at a point where “homeowners in these older neighborhoods are starting to feel confident they can increase the value by renovating before they sell or selling to a teardown buyer.”
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.

Existing-Home Sales Tick Up 0.6% in January

Key Highlights
  • Existing-home sales continued to increase in January to a seasonally-adjusted annual rate of 6.69 million, up 0.6% from the prior month and 23.7% from one year ago.
  • The median existing-home sales price rose to $303,900, 14.1% higher from one year ago.
  • As of the end of January, housing inventory fell to a record-low of 1.04 million units, down by 25.7% year-over-year – a record decline.

 
WASHINGTON (February 19, 2021) – Existing-home sales rose in January, marking two consecutive months of growth, according to the National Association of Realtors®. From a month-over-month perspective, buying activity varied in the major regions. Year-over-year, all four areas recorded double-digit gains in January.
 
Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.6% from December to a seasonally-adjusted annual rate of 6.69 million in January. Sales in total climbed year-over-year, up 23.7% from a year ago (5.41 million in January 2020).
 
“Home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market,” said Lawrence Yun, NAR’s chief economist. “Sales easily could have been even 20% higher if there had been more inventory and more choices.”
 
The median existing-home price for all housing types in January was $303,900, up 14.1% from January 2020 ($266,300), as prices increased in every region. January’s national price jump marks 107 straight months of year-over-year gains.
 
Whereas much of the economy has suffered due to COVID-19, the housing sector has been one of the few bright spots, according to Yun. In NAR’s latest quarterly report, released last week, home prices in every tracked U.S. metro area increased during the fourth quarter of 2020.
 
“Home sales are continuing to play a part in propping up the economy,” Yun said. “With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”
 
Yun says he expects more jobs to return, which will spur homebuying in the coming months. He predicts existing-home sales will reach at least 6.5 million in 2021, even as he says mortgage rates are likely to inch higher due to the rising budget deficit and higher inflation.
 
Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million). Unsold inventory sits at a 1.9-month supply at the current sales pace, equal to December’s supply and down from the 3.1-month amount recorded in January 2020. NAR first began tracking the single-family home supply in 1982.
 
Properties typically remained on the market for 21 days in January, seasonally even with December and down from 43 days in January 2020. Seventy-one percent of the homes sold in January 2021 were on the market for less than a month.
First-time buyers were responsible for 33% of sales in January, up from 31% in December 2020 and from 32% in January 2020. NAR’s 2020 Profile of Home Buyers and Sellers – released in late 2020 – revealed that the annual share of first-time buyers was 31%.
 
Individual investors or second-home buyers, who account for many cash sales, purchased 15% of homes in January, up modestly from 14% in December 2020, but down from 17% in January 2020. All-cash sales accounted for 19% of transactions in January, unchanged from December but down from 21% in January 2020.
 
Distressed sales – foreclosures and short sales – represented less than 1% of sales in January, equal to December’s percentage but down from 2% in January 2020.
“This year, more than ever, we are prepared and eager to help families and neighbors secure housing,” said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby’s International Realty. “NAR is working to close the racial homeownership gap, secure equal access to housing for all Americans and address housing affordability issues plaguing communities across the country.”
 
Oppler, citing NAR’s recent Snapshot of Race and Home Buying in America, which reported wide differences in homeownership rates across racial groups, said more work is needed.
 
According to Freddie Mac, the average commitment rate (link is external)
 for a 30-year, conventional, fixed-rate mortgage was 2.74% in January, up from 2.68% in December. The average commitment rate across all of 2020 was 3.11%.
 
Single-family and Condo/Co-op Sales
Single-family home sales rose at a seasonally-adjusted annual rate of 5.93 million in January, up 0.2% from 5.92 million in December, and up 23.0% from one year ago. The median existing single-family home price was $308,300 in January, up 14.8% from January 2020.
 
Existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 760,000 units in January, up 4.1% from December and up 28.8% from one year ago. The median existing condo price was $269,600 in January, an increase of 8.6% from a year ago.
 
Regional Breakdown
Compared to one year prior, median home prices rose at double-digit rates in each of the four major regions.
 
January 2021 witnessed existing-home sales in the Northeast fall 2.2%, recording an annual rate of 870,000, a 24.3% increase from a year ago. The median price in the Northeast was $361,400, up 15.8% from January 2020.
 
Existing-home sales in the Midwest inched up 1.9% to an annual rate of 1,570,000 in January, a 22.7% jump from a year ago. The median price in the Midwest was $227,800, a 14.7% increase from January 2020.
 
Existing-home sales in the South grew 3.2%, posting an annual rate of 2,940,000 in January, up 25.1% from the same time one year ago. The median price in the South was $263,300, a 14.6% climb from a year ago.
 
Existing-home sales in the West fell 4.4% from the month prior, recording an annual rate of 1,310,000 in January, a 21.3% increase from a year ago. The median price in the West was $461,800, up 16.1% from January 2020.
 
The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
 
© 2021 Florida Realtors®



 
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