Bonita Bay Real Estate News | October 2020

Bonita Bay Real Estate News | October 2020

As of October 1, 2020, there are 94 active listings in our area multiple listing service (MLS) in Bonita Bay; 2 more than last month. There are 29 single-family homes ranging in price from $450,000 to $4,995,000. The average list price is $2,170,645 and the average days on the market is 135. The combined days on the market is 204. In the carriage, mid-rise, townhouse, and attached villa market, there are 24 active listings in Bonita Bay. Prices range from $215,000 to $825,000. The average list price is $397,563. The average of days on the market is 134. The combined days on the market is 211. In the high-rise market, there are 41 active listings in Bonita Bay ranging in price from $695,750 to $6,750,000. The average list price is $1,679,162 and the average days on the market is 270. The combined days on the market is 290.

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 76 sales with an average sales price of $394,686; these condos were on the market an average of 87 days; combined days on the market is 149.
  • During the 12 months previous, there were 76 sales with an average sales price of condominiums was $372,621; these homes were on the market for 84 days; combined days on the market is 141.
 
BONITA BAY HIGH-RISES
  • During the last 12 months, there were 53 sales with an average sales price of $1,369,222; these homes were on the market an average of 163 days; combined days on the market is 276.
  • During the 12 months previous, there were 54 sales with an average sales price of $1,436,870; these homes were on the market for an average of 204 days; combined days on the market is 433.
 
SINGLE-FAMILY BONITA BAY HOMES
  • During the last 12 months, there were 59 sales with an average sales price of $1,318,035; these homes were on the market an average of 106 days; combined days on the market is 196.
  • During the 12 months previous, there were 70 sales with an average sales price of $1,010,595; these homes were on the market for an average of 148 days; combined days on the market is 237.
 
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.
 
 

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October 2020 Market Update

ONE OF THE BEST SEPTEMBERS IN 20 YEARS
“September is usually a quiet month – but not this year,” said Mike Hughes, Vice President of Downing- Frye Realty, Inc. “This September our closed sales were up 41 percent over last September, and our pending sales were up an incredible 63 percent – making it one of the best Septembers in the last 20 years. Pending sales in the $1 million+ market were up 78 percent compared to last September. The high-end buyers are not waiting to purchase later in the season. They’re here now (or virtually here) making their picks while there are still choices. (Purchasing earlier helps buyers avoid multiple-offer situations.) And, due to the incredible work of our listing agents, our inventory of available properties increased last month despite having 250 closings. We’ve now closed $162 million in volume for two months in a row.”
 
BONITA /ESTERO: BUYER DEMAND CONTINUES
Area brokers have reported that buyers are challenged with finding homes to buy, as inventory for resale homes continues to shrink. The market is still seeing an influx of buyers from the Northeast and Midwest United States, and if Canada lifts their Covid-19 safety ban of entry into the United States prior to the beginning of 2021, the demand could increase more. In comparing August 2020 activity with the previous August: new listings increased by 36.5 percent, pending sales increased by 82.7 percent, and closed sale units by 30.5 percent. The median closed sales price in August 2020 was $335,500, up 9.8 percent from August 2019.
 
FLORIDA: HOUSING MARKET SHOWS GAINS
Florida’s housing market reported more closed sales, more new pending sales, higher median prices and more new listings in August compared to a year ago. Single family existing homes sales (29,495 homes) were up 8.8 percent compared to August 2019, while existing condo-townhouse sales (11,100 homes) increased 10.3 percent.
 
The statewide median sales price for single-family existing homes was $300,000, up 13.2 percent from the previous year, and for condo-townhouse units was $217,500, up 14.5 percent. New listings rose year-overhear in both property type categories in August, up by 2 percent for single-family existing homes and 15.1 percent for condo and townhouse units. Inventory (active listings) remains restricted, particularly in the single-family existing home category, which was at a limited 2.3-months’ supply in August.
 
USA: HIGHEST LEVEL OF SALES SINCE 2006
Existing home sales continued to climb in August, marking three consecutive months of positive sales gains, and up 10.5 percent from a year ago. The median existing home price for all housing types in August was $310,600, up 11.4 percent from August 2019 ($278,800), as prices rose in every region.
 
Total housing inventory at the end of August totaled 1.49 million units, down 0.7 percent from July and down 18.6 percent from one year ago. Sixty-nine percent of homes sold in August 2020 were on the market for less than a month. First-time buyers were responsible for 33 percent of sales in August, while individual investors or second home buyers, who account for many cash sales, purchased 14 percent. Distressed sales – foreclosures and short sales – represented less than 1 percent of August’s sales. Properties typically remained on the market for 22 days in August, down from 31 days in August 2019.
 
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®. 

 

Summer Housing Market Momentum Expected to Continue into Fall

Naples, Fla. (September 18, 2020) – Closed sales activity in the Naples area housing market maintained steady momentum through August with a 35.2 percent increase in overall closed sales to 1,098 closed sales from 812 in August 2019. According to the August 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), home-buying activity in Naples during the last three months exceeded activity reported in the first three months of 2020, more typically known as our peak resident season. Broker analysts reviewing the report predict this momentum, driven from more closed sales, more new pending sales, and more new listings compared to a year ago, will set the Naples area housing market up for continued positive performance into the fall months.
 
The market report showed August had the highest month-over-month increase in pending sales compared to any other month reported in 2020, with a 70.4 percent increase to 1,479 pending sales from 868 pending sales in August 2019. Not surprising, homebuyers seeking single-family homes continued to tilt the scales in August as the report showed a 76.4 percent increase for this home category, while pending sales of condominiums increased 63.9 percent.
 
In comparison, this summer’s closed sales have eclipsed our peak season’s closed sales as there were a combined 3,133 closed sales reported during June, July and August compared to a combined 2,659 closed sales reported in January, February and March.
 
August’s inventory decreased 29.1 percent to 4,174 properties from 5,887 properties in August 2019. However, despite the month-over-month drop in inventory during August, there were more new listings added over the summer months than new listings added during the peak season months. Broker analysts were quick to point out that some of the new listings added during the summer were likely listings that had been pulled off the market during the Great Lockdown, which occurred in April and May.
 
“Increased buyer demand is helping to move some of our old inventory,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida. This increased buyer demand is illustrated by the number of days on the market in August, which decreased 5.9 percent to 96 days compared to 102 days in August 2019. The report also showed the Naples area has only 184 single-family homes under $300,000 available to buyers. And inventory for single-family homes between $300,000 and $500,000 decreased 54.9 percent in August to 446 single-family homes from 990 single-family homes in August 2019.
 
Vellano remarked that “incentives offered by new home builders after the lockdown restrictions were lifted are starting to go away and these new home prices are also increasing.”
 
Phil Wood, President & CEO of John R. Wood Properties, added that “Eighty-one percent [793] of the total price changes reported in August [970] were decreases in price. But, there were fewer price decreases in August than in June or July. These price decreases indicate that some homeowners might have overpriced their homes when they initially listed them and the adjustments in August now reflect more competitive prices. That’s not to say that these homeowners won’t see prices increase again as agents report many multiple offer situations occurring across all price categories.”
 
Overall median closed prices in August increased 26.7 percent to $399,000 from $315,000 in August 2019. Single-family home median prices increased 15.7 percent to $457,000 from $395,000 in August 2019, and condominium median closed prices increased 18.4 percent in August to $290,000 from $245,000 in August 2019.
 
However, keep in mind that the median closed price is a figure that is “in the middle,” as half of homes listed are above this price and exactly half are below this price. Broker analysts reviewing the report were quick to point out that one sale of a high-worth property (e.g., $2 million+) during a given month can greatly influence this figure, and that it doesn’t mean all home prices increased. As such, when evaluating pricing trends, brokers prefer to use the 12-months ending median closed price statistics. For the 12-months ending August 2020, the median closed price increased 5.4 percent. Interestingly, using this metric, the August report showed median closed prices for homes between $300,000 and $2 million have actually decreased.
 
“I think we’ve turned a corner and can safely say that we are now in a seller’s market,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “We have 4.8 months of inventory and median closed prices are on the rise.” Florida Realtors® considers the benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory.
 
The NABOR® August 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:
According to Vellano, “buyers seeking single-family homes were on the rise this summer because of changing lifestyle preferences caused by the pandemic. Plus, those who now work from home or have children that attend school from their homes want more space. Once we have a better understanding of how to medically treat people with coronavirus and have a vaccine for it, I think people will begin to explore condominium living again.”
The August report confirms Vellano’s statement, as sales of properties priced above $2 million increased the most (18 percent) compared to other price categories tracked in August.
 
“This is a great time for high-end buyers to invest in real estate,” said Wood. “Because interest rates are low, a 50 percent deposit on a $2 million home means loan payments could be as low as $4,200 a month!”
 
Geographically, closed sales of properties in the Naples Beach area (34102, 34103, 34108) during August increased 84.4 percent and saw an 82 percent increase in median closed price; the South Naples area (34112, 34113) reported the most new listings in August, with a 32.7 percent increase; and the East Naples area (34114, 34117, 34120, 34137) reported the biggest drop in months of inventory to 2.9 months of inventory in August from 6.4 months of inventory in August 2019.
 
The August report shows sellers are at an advantage with decreasing inventory and rising prices. If you are looking to buy or sell a home in Naples, contact a Naples REALTOR® who has the ability to provide a virtual showing, an accurate market comparison or negotiate a sale.
 
 
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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Remote Workers May Seek Retirement Housing Early

Fla. is a draw for retirees, but the pandemic and ability to work from home has led more people to shop for a second home before they’ve officially retired.

NEW YORK – As more work is done remotely, some Americans are deciding to make an early move to their retirement locale. Many employers are offering employees the option to work from home for the rest of the year due to the COVID-19 pandemic, and some have adopted remote work as a permanent option. Freed from the bounds of a commute, many older Americans are deciding to move now.
 
“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home,” says Lawrence Yun, chief economist of the National Association of Realtors®, in an interview with CNBC. “We may begin to see a boost in people buying retirement homes before their retirement.”
 
Demand is rising in vacation resort areas, Yun says, and retirees are increasingly targeting states with warmer weather, such as Florida, Arizona, Nevada and Texas.
 
A Transamerica retirement survey released in September found that 38% of people who entered retirement chose to move to a new home. When asked why, retirees cited proximity to family and friends, an affordable cost of living, and access to excellent health care and hospitals.
 
Housing affordability may be a chief motivator in deciding to move sooner, Yun says. Residents in pricey areas along the coasts may find larger homes at more affordable prices elsewhere.
 
Some workers may also be worried that home prices will continue to rise. NAR reported that existing-home prices surged 11.4% in August compared to a year ago and are now at a nationwide median of $310,600.
 
“It seems like demand will remain solid for the upcoming years because the Fed has clearly made its intentions known that we will have a low-interest-rate environment,” Yun told CNBC. Last week, the average 30-year, fixed-rate mortgage averaged 2.90%, according to Freddie Mac.
 
Source: “With Remote Work Flexibility, Some People Opt to Relocate Ahead of Their Retirement,” CNBC (Sept. 21, 2020)
 
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