01 Oct Bonita Bay Real Estate News | October 2021
As of October 1, 2021, there are 20 active listings in our area multiple listing service (MLS) in Bonita Bay; 2 less than last month.
For comparison, last year on September 1, there were 94 listings in Bonita Bay.
There are 8 single-family homes ranging in price from $850,000 to $6,500,000. The average list price is $3,316,250 and the average days on the market is 49. The combined days on the market is 49.
In the carriage, mid-rise, townhouse, and attached villa market, there is one active listing in Bonita Bay at $449,000 and the average days on the market is 4 while the combined days on the market is 4.
In the high-rise market, there are 11 active listings in Bonita Bay ranging in price from $1,590,000 to $8,300,000. The average list price is $3,392,818 and the average days on the market is 252. The combined days on the market is 256.
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.
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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 95 sales with an average sales price of $420,325; these condos were on the market an average of 62 days; combined days on the market is 137.
- During the 12 months previous, there were 77 sales with an average sales price of condominiums was $394,625; these homes were on the market for 88 days; combined days on the market is 149.
BONITA BAY HIGH-RISES
- During the last 12 months, there were 103 sales with an average sales price of $1,462,225; these homes were on the market an average of 146; combined days on the market is 209.
- During the 12 months previous, there were 56 sales with an average sales price of $1,378,829; these homes were on the market for an average of 163 days; combined days on the market is 276.
SINGLE-FAMILY BONITA BAY HOMES
- During the last 12 months, there were 96 sales with an average sales price of $1,660,232; these homes were on the market an average of 72 days; combined days on the market is 149.
- During the 12 months previous, there were 59 sales with an average sales price of $1,318,035; these homes were on the market for an average of 106 days; combined days on the market is 196.
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.
October 2021 Market Update
DOWNING-FRYE REALTY: ONE OF OUR BEST YEARS EVER
“September was a great month for our company as we have now closed over 3,100 transactional sides for the year,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “We expect to hit $2 billion in closed sales volume in very early October. All in all, this should be our second best year ever for closed sales volume. Only 2005 was better. If you throw out last year (due to excessive purchasing tied to the pandemic) we had our best September in five years for pending sales with 210 pending sales contracts that amounted to just over $129 million in pending sales volume. Buyers are still very active but their choices are limited due to a shortage of inventory in Southwest Florida. If they see something that they like, they need to be prepared to move quickly. The majority of the sales contracts are cash. It looks like we will close the year on a strong note as we start preparing for the 2022 year!”
BONITA / ESTERO: DEMAND REMAINS STRONG
In August 2021, the months’ of inventory available in the market was at an all-time low of .5 months with new listings decreasing by 24.6 percent for single-family homes and 36.8 percent for condominiums. Buyers continued to look for more space and larger homes, as the luxury market for homes priced $2 million+ continued to see increased interest. In comparing August 2021 with August 2020: the active inventory (241 properties) was down 81.9 percent, new listings (273 properties) were down 19.9 percent, pending sales were the same at 303 properties, and closed sales (341 properties) were up by 18.4 percent. Besides the need for more inventory to satisfy demand, the Bonita/Estero market is in a healthy situation.
NAPLES AREA: LOW INVENTORY; STRONG DEMAND
Demand for homes was busy in August, even as inventory dropped 77.3 percent to 1,249 homes from 5,503 homes in August 2020. Most homes were listed, shown, and sold in less than 30 days. The median closed price reported in August was $75,000 higher than that reported in January 2021. Pending and closed sales decreased by 25.6 and 7.9 percent in August, respectively. Broker analysts predict pending and closed sales will continue to decrease in comparison to past years because of limited inventory. In August 2021 there was a 22 day supply of inventory, down 76.8 percent from August 2020. Also, the median closed sales price was $441,300, up 11.78 percent from the year ago figure; and there were 1,033 total closed sales, which were 7.9 percent lower than August 2020. There were 992 new listings in August compared to 1,284 new listings in August 2020.
MARCO ISLAND AREA: INVENTORY TIGHT
The Marco Island Area Assoc. of Realtors® reported that August 2021 compared to August 2020 showed the following: Total inventory (255 properties) was down by 76.6 percent, closed sales (118 properties) were down by 41 percent and pending sales (97 properties) were down by 46.1 percent. The August median sales price was $615,000, which is 36.21 percent higher than August 2020.
FLORIDA: AUGUST WAS ANOTHER STRONG MONTH
According to Florida Realtors Chief Economist Dr. Brad O’Connor, Florida’s resale housing market had another strong month in August. Home sale prices remained elevated in August. The median sale price for single-family home sales was $354,000, which is 18 percent higher than last August’s median. Notably, though, this is slightly less than July’s median sale price of $355,000. He said that’s a strong sign that the rate of price growth is continuing to slow down toward more sustainable levels. The statewide median sale price for condos and townhouses has been leveling off since April, but it still remained well above where it was at this time last year, up over 16 percent to $252,500. Inventory levels at the end of August were not much different than they were at the end of July, but are still well below where they were a year ago.
USA: EXISTING SALES DOWN SLIGHTLY
In August 2021, existing-home sales dropped 2 percent on a seasonally adjusted annual rate from July to August. The inventory of unsold homes decreased 1.5 percent to 1.29 million from July to August – equivalent to 2.6 months of the monthly sales pace. The median existing-home sales price rose at a year-over-year pace of 14.9 percent. Lawrence Yun, NAR’s chief economist, said, “Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®.
Could ‘Live Longer’ Be A Reason to Retire to Florida?
MIT Study: Older Americans living in areas with shorter life expectancy (bottom 10%) live 1.1 years longer if they move to a peak area (top 10%) for life expectancy.
NEW YORK – Location may impact how long you live, according to a new study from MIT economists. The study examined seniors between the ages of 65 to 99 who relocated long-distance from 1999 to 2014.
For example, when a 65-year-old moves to a metro area in the top 10th percentile for longevity from a metro area in the 90th percentile, they can increase their life expectancy by 1.1 years, researchers say.
“There’s a substantially important causal effect of where you live as an elderly adult on mortality and life expectancy across the United States,” says Amy Finkelstein, a professor in MIT’s Department of Economics and co-author of the study Place-Based Drivers of Mortality: Evidence of Migration. The study appears in the August issue of the American Economic Review.
Why do certain areas have longer longevity than others? The study didn’t pin down a reason, but researchers point to several possible ones, such as more conducive medical care, climate, pollution, crime and traffic safety.
Researchers found that many urban areas on the East and West coasts – including New York City, San Francisco, and Miami – have positive effects on longevity for seniors who relocate there. Midwestern metro areas, like Chicago and Minneapolis, scored high as well.
On the other hand, several Southern states had poorer effects on longevity, such as parts of Alabama, Arkansas and Louisiana.
Researchers continue to investigate why certain places have longer longevity. The MIT research team is currently investigating health care use or other factors that could have an impact.
“Differences in healthcare across places are large and potentially important,” Finkelstein says. “But there are also differences in pollution, weather, and other aspects … What we need to do now is get inside the black box of ‘the place’ and figure out what it is about them that matters for longevity.”
Source: “Place-Based Drivers of Mortality: Evidence From Migration,” American Economic Association (August 2021) and “Comparing Seniors Who Relocate Long-Distance Shows Where You Live Affects Your Longevity,” MIT News (Sept. 1, 2021)
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August Real Estate Market Report: Low Inventory, Strong Demand
Demand for homes in Collier County kept REALTORS® busy in August, even as inventory dropped 77.3 percent to 1,249 homes from 5,503 homes in August 2020. According to the August 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), REALTORS® escorted buyers on over 30,000 home showings in August! The month’s strong showing activity—coupled with a 76.8 percent decrease in days on market to 22 days—means most homes were listed, shown, and sold in less than 30 days.
“Pent-up buyer demand that began last summer has stretched inventory thin,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added that “this could lead to upward pressure on pricing.”
Historically, median closed prices of homes sold during summer months tend to be lower than median closed prices of homes sold during high-season months (January through April), but that trend did not occur this year. According to the report, the median closed price reported in August was $75,000 higher than the median closed price reported in January 2021. The median closed price of homes sold increased 11.7 percent in August to $441,300 from $395,000 in August 2020 (median price is the price at which 50 percent of the homes sold were above that price, and 50 percent were below).
Molly Lane, Senior Vice President at William Raveis Real Estate, said, “With the help of a REALTOR®, homeowners who sold a home in August most likely enjoyed a nice profit. That’s because local REALTORS® understand the market and can help price a home correctly, screen out unqualified buyers, assist in negotiating repairs and contingent offers, evaluate the offers presented and negotiate the best possible terms for the homeowner.”
According to Adam Vellano, a Naples Sales Manager at Compass Florida, “Our area consistently enjoys about 1,000 new listings every month. But demand is simply outpacing supply today. The 992 new listings added during August will most likely be sold in less than a month.”
Vellano’s comment was confirmed by the August Market Report as days on market in August decreased 76.8 percent to 22 days from 95 days in August 2020. As such, many of the 1,101 pending sales reported in August were also included in the report’s 1,033 closed sales figure.
Pending and closed sales, incidentally, decreased by 25.6 and 7.9 percent in August, respectively. Broker analysts predict pending and closed sales will continue to decrease in comparison to past years because of limited inventory. Added Hughes, “It’s unlikely we’ll see a huge incline in inventory anytime soon.” He also noted that “historically, our area’s inventory increases during October and November in anticipation of seasonal residents during the winter, but demand is so strong now that we could absorb those homes if they were listed today.”
The NABOR® August 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:
Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, pointed out that the report showed “24 percent of pending sales during August went back on the market during the month.”
Lane added insight by stating, “Because of limited options, REALTORS® are recommending sellers accept back-up contracts. This way, if the buyer with the first contract backs out, the buyer with the back-up contract moves into the first spot. But, when a buyer backs out and there are no other back-up contracts, those homes are removed from pending status and put back into active inventory.”
The August report showed less than a 30-day supply of inventory. Broker analysts agree: Working with a REALTOR® who has their eye on the MLS daily and knows how to navigate this lightning-fast market is an asset for buyers and sellers.
Lane remarked that “some homeowners tell us that when they decide to sell, they will simply sell their home to a neighbor. But I am quick to tell them that a REALTOR® can typically get them a higher price because REALTORS® place all new listings on the MLS so they are marketed to a wider audience.”
WASHINGTON – Flood insurance is an unusual problem for lawmakers because it doesn’t break along party lines. In general, representatives from coastal states oppose any change that raises rates, while landlocked state representatives do not.
The Federal Emergency Management Agency (FEMA) oversees the National Flood Insurance Program (NFIP), and it has been planning a new way to levy flood policy fees for a few years. That new system currently goes into effect on Oct. 1. A major difference of the new pricing policy, called Risk Rating 2.0, is that homeowners in a single flood zone who currently pay the same rate will find that each policy is individually priced based on other factors, such as changes made to the home that help mitigate potential flood damage. FEMA says 2.0 more accurately assesses a home’s flood risk.
The National Association of Realtors® (NAR) supports the change, though other housing groups do not.
“NAR supports FEMA’s Risk Rating 2.0 reforms and its current timeline for implementation,” Realtors spokesperson Patrick Newton told Politico. “These reforms are phased over time and will provide policyholders with more accurate, risked-based flood insurance rates.”
Neither FEMA nor the Biden Administration is backing down so far, and opponents have turned to Congress for help. In the House, 38 House representatives recently asked congressional leaders to postpone implementation and hope to include a delay in bills expected to pass this month.
NFIP senior executive David Maurstad says any delay would be unfair, largely because about 1 million current policyholders will see their rates drop. Overall, FEMA says about 19.8% of homeowners would see lower flood insurance costs, 68.1% would see no change or, at the least, a yearly increase of less than $120. However, 7.8% would see their premiums rise by $120 to $240 per year, and 4.2% would pay a new premium greater than $240 per year.
Risk Rating 2.0 is the biggest change for NFIP since the 1970s. It will impact new flood policies issued after Oct. 1 – such as those paid by new homebuyers – and it will affect current homeowners when it comes time to renew their flood insurance policy. Those who benefit from lower rates under Risk Rating 2.0, however, will be able to request that lower rate.
Lawmakers opposing the change point out various concerns, but a big one is that NFIP can raise rates no more than 18% per year – an amount they say is too high.
According to Politico, the 38 House members sent a letter to Speaker Nancy Pelosi and Minority Leader Kevin McCarthy. In it, they said, “There are serious implementation questions surrounding Risk Rating 2.0 … Our constituents and those involved in implementing FEMAs rate hikes need more time to get the answers they deserve.”
Within the real estate industry, opinions are divided. While NAR backs the change, other groups, such as the National Association of Professional Insurance Agents, say their industry isn’t prepared for Oct. 1 changes, citing operational problems. The American Property Casualty Insurance Association cited problems but didn’t call for an actual delay.
However, 16 groups – including the National Association of Mutual Insurance Companies, the Association of State Floodplain Managers and the Natural Resources Defense Council – don’t want a delay. They generally agree that Risk Rating 2.0 is “more accurate and more equitable, and that providing property owners with more information on their full risk rates was critical to improving flood mitigation,” according to Politico.
Source: Politico Pro, Sept. 9, 2021
© 2021 Florida Realtors®
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