01 May Bonita Bay Real Estate News | May 2020
As of May 1, 2020, there are 102 active listings in MLS in Bonita Bay; 18 less than last month. There are 24 single-family homes ranging in price from $525,000 to $5,495,000. The average list price is $1,916,471 and the average days on the market is 147. The combined days on the market is 242. In the carriage, mid-rise, townhouse, and attached villa market, there are 36 active listings in Bonita Bay. Prices range from $279,900 to $655,900. The average list price is $385,164. The average of days on the market is 105. The combined days on the market is 153. In the high-rise market, there are 42 active listings in Bonita Bay ranging in price from $650,000 to $6,750,000. The average list price is $1,782,045 and the average days on the market is 272. The combined days on the market is 313.
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 74 sales with an average sales price of$394,037; these condos were on the market an average of 76 days; combined days on the market is 132.
- During the 12 months previous, there were 86 sales with an average sales price of condominiums was $376,676; these homes were on the market for 94 days; combined days on the market is 161.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 47 sales with an average sales price of $1,305,722; these homes were on the market an average of 195 days; combined days on the market is 269.
- During the 12 months previous, there were 51 sales with an average sales price of $1,434,010; these homes were on the market for an average of 180 days; combined days on the market is 425.
- During the last 12 months, there were 60 sales with an average sales price of $1,198,237; these homes were on the market an average of 113 days; combined days on the market is 196.
- During the 12 months previous, there were 79 sales with an average sales price of $1,030,293; these homes were on the market for an average of 114 days; combined days on the market is 197.
Meet Ed Gongola and discover how he can help you with his concierge style of service when buying or selling your home.
MAY 2020 MARKET UPDATE
NEW PENDING SALES CONTINUE
“We see opportunity in every real estate market,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Florida’s real estate business was deemed as essential, and our agents and staff have been doing a great job under the circumstances. This is a historic time we’re living through, and we’re helping each other like never before. We continue our commitment to represent buyers and sellers in Southwest Florida. New pending sales continue to come in, and about ten percent have sales prices over $1 million. There is high demand for the kind of lifestyle we have here. I’m sure many people from out of state wish they were living here right now.”
Area brokers are realistically anticipating a slowdown in early quarter two. The current COVID-19 pandemic and social distancing guidelines have made travel difficult for buyers. And, with Easter’s early arrival in 2020 coupled with the pandemic, many out-of-state buyers simply returned home earlier. March 2020 remained steady, solidifying an active first quarter. Closed sales increased by 15.9 percent compared to March 2019, but inventory decreased by 25.7 percent, a trend the market has seen for several months. On April 1, 2020, the Florida governor deemed residential
real estate, including settlement services, as an essential service. Area brokers are advising home sellers and buyers that the Bonita Estero market is open for business.
FLORIDA: PENDING SALES DOWN
Florida’s housing market reported pending sales, new listings and pending inventory showed lower levels compared to March 2019 but with more closed sales and higher median prices year-over-year. According to Chief Economist O’Connor, drops in both new pending sales and new listings indicate that both demand and supply are in decline, at least in the short run. “For now, we should expect to see significantly lower sales counts for April and May than we did last year, but movement in sale prices will be more stable for the time being, since the reductions in both supply and demand have countervailing impacts on home values,” he said. “However, the longer-term forecast is still hazy.”
USA: HOME SALES FALL IN MARCH
Each of the four major regions reported a dip in sales, with the West suffering the largest decrease. Total existing-home sales dropped 8.5 percent from February to a seasonally-adjusted annual rate of 5.27 million in March. Despite the decline, overall sales increased year-over-year for the ninth straight month, up 0.8 percent from a year ago (5.23 million in March 2019). Lawrence Yun, NAR’s chief economist, said, “More temporary interruptions to home sales should be expected in the next couple of months, though home prices will still likely rise.” The median existing-home price for all housing types in March was $280,600, up 8.0 percent from March 2019 ($259,700), as prices increased in every region. Total housing inventory at the end of March totaled 1.50 million units, up 2.7 percent from February, but down 10.2 percent from one year ago.
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.
Mortgage Rates Hit All-Time Low – 3.23%
The pandemic-slowed economy pushed the average 30-year mortgage rate to its lowest point in at least 50 years – since Freddie Mac started tracking rates in 1971.
WASHINGTON – The pandemic-slowed U.S. economy pushed the average 30-year mortgage rate to its lowest point in at least 50 years, according to Freddie Mac, which started tracking rates in 1971.
The size and depth of the secondary mortgage market is helping keep rates at record lows, Freddie Mac says. Today’s low rates are driving higher refinance activity and a modest uptick in demand for new-home purchases.
However, not everyone can take advantage of today’s low rates. In some cases, banks have tightened lending restrictions and are making loans only to well-qualified buyers or home refinancers. In addition, some potential homebuyers in January are now out of work as applications for unemployment skyrocket.
At 3.23%, the average 30-year fixed-rate mortgage is down 0.10% week-to-week (from 3.23%) and 0.91% compared to this same time last year.
The 15-year fixed-rate mortgage dropped to 2.77% this week. That’s down .0.09% from last week (from 2.86%) and down 0.83% year-to-year.
The 5/1 hybrid adjustable-rate mortgage averaged 3.14 % this week.
Economists at Fannie Mae predicted this week that 30-year rates could go as low as 2.9% in 2021, however it’s unclear yet what effect the COVID-19 pandemic will have over the long term.
“In our view, the negative shock will apply to both the home purchase and rental markets. On the demand side, early indications are that the purchasing benefit of lower interest rates are being offset by the downturn in employment,” says Doug Duncan, senior vice president and chief economist at Fannie Mae.
“On the supply side, the number of listings is falling, as those with homes to offer may either be hesitant to allow strangers to tour their home or worry that the lack of demand is placing downward pressure on the sales price they might otherwise receive,” Duncan adds.
By Kerry Smith
© 2020 Florida Realtors®
March Housing Activity Signals Essential Need for Homes
Naples, Fla. (April 23, 2020) – Like all industries impacted by the COVID-19 pandemic, the Naples area housing market was not immune to its effect in March. While home sales dropped, home prices remained steady, and in some cases, increased. Because the stay-at-home order went into effect mid-month, real estate activity during the first two weeks of March was strong, while activity during the second half of March tempered remarkably well. Brokers analyzing the March 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), agree that the report showed one indisputable truth: The need for housing in the Naples area – whether it be a rental, new home construction, or homes in the resale market – is essential and still in demand.
“The real estate industry has been given a great responsibility in this time of crisis to help meet the needs of Naples area residential and commercial property buyers and owners, and the overall welfare of our local economy. Of utmost importance to all real estate professionals is that all real estate transactions are undertaken with the strictest adherence to health and safety guidelines. Real estate transactions are moving forward,” stated Lauren Melo, PA, President of NABOR®, andLicensed Real Estate Broker with Florida’s Realty Specialists.
Overall closed sales in March increased 15.8 percent to 1,148 closed sales compared to 991 closed sales in March 2019. This was an increase of 359 closed sales over February (789 closed sales) and 426 more closed sales than January (722 closed sales)! The report also showed a 22.5 percent increase in closed sales for the first quarter of 2020 (2,689 total closed sales) compared to the first quarter of 2019 (2,195 total closed sales).
Coco Amar, VP, Strategic Growth, South Florida, William Raveis Real Estate, pointed out that the report showed closed sales for properties priced between $1 million and $2 million increased 23 percent year over year (12-months ending March 2020) and its median closed price decreased by 2.3 percent. “The high-end of the market is becoming popular again, especially condominiums over $2 million, which had the highest percentage increase in sales [37 percent] in the last 12 months.”
Pending sales took a hit during the second half of March, down 38.1 percent for the month to 977 pending sales compared to 1,578 pending sales in March 2019. But according to Melo, “pending sales increased 5.3 percent during the first quarter of 2020 compared to the first quarter of 2019. The Naples area housing market was on solid footing before the coronavirus pandemic flared up.”
Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out that “even though showings in March decreased 41 percent compared to showings in February, there were still over 19,000 appointments scheduled to show homes in March. Serious buyers are not being discouraged by the stay-at-home order. Because real estate is considered essential, buyers can tour homes as long as they abide by the social-distancing order – or they can tour homes virtually with their REALTOR on site hosting their virtual tour.”
Open house guidelines by NABOR®, which follow Centers for Disease Control and local Department of Health recommendations, ensure safety practices are being followed by REALTORS®. Questions about open house guidance during COVID-19 can be found HERE.
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., added that homebuyers were not the only people looking for housing in March. “We saw an uptick in rental contract extensions in March as many winter residents are choosing to stay in the Naples area rather than return to their northern homes in states where virus activity rates are high.”
The March report showed overall inventory remained strong through March, with 5,772 available properties. This was a 27.5 percent decrease in inventory compared to March 2019, which had 7,965 properties available. Interestingly, while March had only 53 fewer homes on the market than what was available in February, the month of March had 11 more homes available in inventory than what was reported in January! Plus, Collier County holds steady with 6.4 months of supply compared to other highly desirable counties in Florida like Orlando, which reported 2.3 months of supply in March.
According to Jeff Jones, Broker at Keller Williams Naples, “There were fewer price reductions during March compared to previous months in the quarter.” The overall median closed price in March increased 10 percent to $372,750 compared to $339,000 in March 2019. The month of March also reported the highest median closed price compared to the other months in the first quarter. However, while median closed prices for the single-family home market increased 16 percent in March to $470,000 compared to $405,500 in March 2019, the median closed price for the condominium market decreased 1.3 percent in March to $276,500 compared to $280,000 in March 2019.
Jones also pointed out that the pandemic is affecting the new home construction industry. “Many builders in the area are offering big incentives in order to move their new home inventory. It’s good to work with a REALTOR® who understands the local market well and can negotiate the best price, whether it’s a home for sale by a builder or an independent seller of an existing home.”
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CATEGORIES
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Mar 2019 | Mar 2020 | CHANGE |
| Total closed sales (month/month) | 991 | 1,148 | +15.8% |
| Total pending sales (homes under contract) (month/month) | 1,568 | 977 | -38.1% |
| Median closed price (month/month) | $339,000 | $372,750 | +10.0% |
| Total active listings (inventory) | 7,965 | 5,772 | -27.5% |
| Average days on market | 106 | 98 | -7.5% |
| Single-family closed sales (month/month) | 485 | 563 | +16.1% |
| Single-family median closed price (month/month) | $405,500 | $470,000 | +15.9% |
| Single-family inventory | 4,055 | 2,862 | -29.4% |
| Condominium closed sales (month/month) | 506 | 585 | +15.6% |
| Condominium median closed price (month/month) | $280,000 | $276,500 | -1.3% |
| Condominium inventory | 3,910 | 2,910 | -25.6% |
“There is solid inventory in all price categories right now,” said Hughes. Phil Wood, President & CEO of John R. Wood Properties, agreed with Hughes adding that “current low interest rates and a strong stock market are favorable reasons why people buy second homes. Low fuel prices will also inspire people to travel more by air and car to Southwest Florida once the -stay-at-home order is lifted. It may take a few months to get back to normal, but I believe the housing market in Naples will recover fast because people love the beach and we have 24 miles of it to explore. Plus, after being locked at home for months, people are going to want to live in a community that doesn’t have high-density issues.”
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.
Florida Vacation Rental Ban to Continue for Now
The virus-related ban on short-term rentals remains in effect until further notice.
TALLAHASSEE, Fla. – On Monday, Florida’s restaurants and retail stores will be allowed to reopen, but only at 25% of full capacity and only if a local government allows it, Gov. Ron DeSantis announced at a press conference on Wednesday. It’s the first phase of a three-phase process he named “Safe. Smart. Step-by-Step.”
However, short-term vacation rentals will be banned during Phase 1 of the governor’s drive to reopen the state’s businesses. The ban went into effect on March 27 and has been extended by Executive Orders.
While the governor hopes that Phase 1 will last only a few weeks before the state moves to Phase 2, there is no timeline, and the vacation-rental ban remains in effect. Florida Realtors continues to advocate for the ban to be lifted.
DeSantis says the timing for different phases and steps within the reopening process will be guided by a data-driven approach that assesses positive case rates and hospital capacity.
© 2020 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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