Bonita Bay Real Estate News | September 2020

Bonita Bay Real Estate News | September 2020

As of September 1, 2020, there are 92 active listings in our area multiple listing service (MLS) in Bonita Bay; one more than last month. There are 25 single-family homes ranging in price from $450,000 to $4,995,000. The average list price is $2,300,072 and the average days on the market is 140. The combined days on the market is 208. In the carriage, mid-rise, townhouse, and attached villa market, there are 31 active listings in Bonita Bay. Prices range from $215,000 to $825,000. The average list price is $401,171. The average of days on the market is 122. The combined days on the market is 178. In the high-rise market, there are 36 active listings in Bonita Bay ranging in price from $729,000 to $6,750,000. The average list price is $1,756,164 and the average days on the market is 275. The combined days on the market is 295.

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 73 sales with an average sales price of $393,139; these condos were on the market an average of 85 days; combined days on the market is 147.
  • During the 12 months previous, there were 77 sales with an average sales price of condominiums was $376,509; these homes were on the market for 85 days; combined days on the market is 142.
 
BONITA BAY HIGH-RISES
  • During the last 12 months, there were 51 sales with an average sales price of $1,365,172; these homes were on the market an average of 160 days; combined days on the market is 272.
  • During the 12 months previous, there were 53 sales with an average sales price of $1,414,311; these homes were on the market for an average of 210 days; combined days on the market is 443.
 
SINGLE-FAMILY BONITA BAY HOMES
  • During the last 12 months, there were 62 sales with an average sales price of $1,286,017; these homes were on the market an average of 104 days; combined days on the market is 197.
  • During the 12 months previous, there were 65 sales with an average sales price of $1,038,564; these homes were on the market for an average of 155 days; combined days on the market is 241.
 
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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September 2020 Market Update

SUMMER OF SURPRISES

“This was a busy summer,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “In June, July and August 2020, we had 31 percent more pending sales than last summer, and 74 percent more in sales volume. Our average closed sales price is now $576,830, with sales spanning all price ranges. Last August we had 960 properties available for sale, and this August we have 972. We’re listing properties quickly to keep up with buyer demand. Now that more people are able to work from home, they’re choosing to leave the cities and head south. There is high demand especially for single family homes. Fortunately, we have a great array of all types of homes. With virtual showings and tours, sales are expected to continue at the current intensity.” 

BONITA /ESTERO: DEMAND HIGH FUELS SALES

Comparing this July with last July, the days on market decreased by 16.8 percent, as pending sales increased by 60.2 percent. New listings increased by 50.7 percent, but some brokers say the new inventory is still not enough to keep up with increasing buyer demand. Closed sales were up 0.4 percent and the median closed sales price of $293,500 was up 7.1 percent. The current inventory stands at 1,198 available properties, which is down 18.2 percent from last July, and represents 4.2 months supply. 

FLORIDA: POSITIVE MOMENTUM

“New pending sales of single-family homes also showed big gains, up by 21.7 percent compared to July of last year,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “Coupled with the 23.2 percent year-over-year increase in new pending sales in June, all indications are that this wave of closed sales will continue on through the end of the summer and perhaps beyond. Year-to-date through July, statewide single-family existing home sales are only down by about 4 percent compared to last year – so it’s quite likely that by the end of August, we will be in positive territory overall for 2020.” The statewide median sales price for single-family existing homes was $295,000, up 10.1 percent from the previous year, and for condo-townhouse units was $210,000, up 11.7 percent. According to Freddie Mac, the interest rate for a 30- year fixed-rate mortgage averaged 3.02% in July 2020.

USA: SALES SOAR 24.7 PERCENT IN JULY

Existing-home sales continued on a strong, upward trajectory in July, marking two consecutive months of significant sales gains. Total existing-home sales jumped 24.7 percent from June to a seasonally-adjusted annual rate of 5.86 million in July. “The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days,” said Lawrence Yun, NAR’s chief economist. “With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.” The median existing-home price for all housing types in July was $304,100, up 8.5 percent from July 2019 ($280,400). Total housing inventory at the end of July totaled 1.50 million units, down from both 2.6 percent in June and 21.1 percent from one year ago (1.90 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, down from 3.9 months in June and down from the 4.2-month figure recorded in July 2019.
 
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®. 

 

Naples Housing Market Sees Summer Sales Surge

Naples, Fla. (August 21, 2020) – The Naples housing market experienced a continued surge in activity during July, which resulted in a 57.3 percent increase in pending sales (homes under contract) for the month. Closed sales during July increased 35.4 percent compared to July 2019 – greatly surpassing June’s closed sales activity following the lifting of COVID-19 restrictions. However, a decreasing supply of inventory, which broker analysts believe is caused by heightened homebuying interest this summer, is making it difficult to keep up with the strong buyer demand.
 
“Compared to markets on the east coast of Florida and in big cities like Chicago and New York, the Naples real estate market is quite affordable,” said Spencer Haynes, Director of Business Development and Broker with John R. Wood Properties. “People aren’t just looking for homes in low density areas in Florida, they want to live in a town that fits their lifestyle. And Naples provides a much better lifestyle for the money.”
 
The tapestry of out-of-state license plates on local roads may be an unfamiliar summer sight to local residents, but according to broker analysts reviewing the July 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), these visitors are here to do more than just golf and visit the beach this summer.
 
“A considerable number of buyers already looked at homes during season [January and February], prior to COVID-19 restrictions,” said NABOR® President Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists. “They watched and waited during those months of restrictions and are now back to buy a home this summer.”
 
There were 15,634 showings during July, less than half the number of showings during June (36,912), yet pending sales increased which indicates that properties were purchased virtually, sight unseen. July’s pending sales spiked to 1,446 pending sales in July 2020 from 919 pending sales in July 2019.
 
The majority of sales that resulted in the 35.4 percent increase in overall closed sales during July occurred in the single-family home market, which saw a 42.8 percent increase in closed sales compared to a 27.3 percent increase reported in the condominium market. Concern over the pandemic has compelled many people to spend the majority of their time indoors, at home. As a result, buyers are looking for single-family homes that offer more personal space, and more space to work from home and home-school children. They want their own backyard, their own private pool, and private garages that single-family homes offer.
 
Overall inventory decreased 28.8 percent in July to 4,390 properties from 6,168 properties in July 2019. However, many sellers were not hesitant about entering or staying in the market this summer. A steady rise in consumer confidence resulted in 1,193 new listings added to the overall inventory during July (a 21.7 percent increase compared to July 2019). Of those 1,193 new listings, 572 were single-family homes and 621 were condominiums. The report also showed fewer homes were terminated/expired/withdrawn from the MLS in July (599) compared to June (1,677).
 
For those who are considering selling, now is a good time to jump in the market to take advantage of the high demand for Naples property, according to broker analysts. Plus, with fewer homes on the market for buyers to purchase, this may be the time for your house to stand out from the crowd with less competition and more eyes on your property.
 
“This is a summer of surprises. New listings surged, closed sales surged, pending sales surged, median closed priced increased and days on the market dropped,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added, “There are several factors in play that are fueling the strong summer real estate activity: 1) winter visitors pushed off buying until the summer; 2) people’s ability to work remotely is convincing them that it’s okay to relocate; 3) more East Coast residents are migrating to our West Coast; 4) Naples continues to be a more affordable alternative to high-tax living in other areas of the country; and 5) interest rates are low.”
 
While the overall median closed price for July increased 13.5 percent to $368,750 from $325,000 in July 2019, the report also showed there were 829 properties that reduced their list prices during July. It appears sellers recalibrated their pricing and/or were striking new deals.
 
The report showed closed sales of properties priced above $500,000 increased over 50 percent in July, with the $500,000 to $1 million price category reporting the highest increase (99.1 percent) to 223 closed sales in July 2020 from 112 closed sales in July 2019.
 
The NABOR® July 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:
“Single-family home inventory dropped 38.7 percent in July to 1,957 homes,” remarked Melo. “This is the lowest it’s been since October 2015. But even at this level, Naples has 4.5 months of supply in the single-family home sector.”
 
In comparison, Naples had 5.2 months of supply in the single-family homes sector in June, which was much higher than Florida Realtors® statewide reported June single-family home figure – 2.8 months of supply.
 
According to Florida Realtors®, “The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory.” The July 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®) showed 5.2 months of inventory (single-family homes and condominiums).
 
Even though interest rates on mortgages remain low, 43 percent of July’s closed sales were cash sales.
 
“The coronavirus pandemic slowed the housing market in March and April with its lockdowns and restrictions,” said Hughes, who was referring to a comparative look at closed sales year-to-date. The July report showed 6,226 closed sales between January 2020 and July 2020 compared to 6,332 closed sales between January 2019 and July 2019. “I believe that, by the end of August, our market will be on track to outperform 2019 year-to-date sales.”
 
 
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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High Notary Demand Could Spark Delays

Most notaries can now be done virtually thanks to the pandemic – but not all notaries have that ability, and the industry challenge is keeping up with current demand.

NEW YORK – Record-high mortgage demand coupled with the shrinking availability of qualified notaries is sparking delays in transactions, Forbes.com reports.
 
Since the COVID-19 outbreak began in the U.S., the homebuying process moved to more digital transactions – and both temporary and permanent legislation has allowed for remote online notarization in the majority of states.
 
Now, as home sales rebound and refinancings rise due to low interest rates, lenders are seeing an increase in business. But some lenders don’t allow online notarizations. That means homeowners must rely on in-person notary signings since a home purchase cannot be closed without a notary in most areas.
 
What’s more, some notaries are demanding higher fees from title companies, which could be passed on to consumers, to perform the notarization. As a result, the industry is calling for greater adaptation of technology – not as a temporary solution to the pandemic, but a long-lasting one.
 
“Expediency is critical in loan transactions,” Max Simkoff, CEO of States Title, wrote in a recent article at Forbes.com. “The longer it takes to close a loan, the higher the risk of losing the deal.”
 
Ellie Mae, a mortgage software company, reports a rising average closing time – 46 days for a purchase transaction and 49 days for a refinance.
Simkoff called for the lending industry to adopt greater technology to help close loans faster and improve customer experience.
 
Notarize, a remote electronic notary backed by the National Association of Realtors®’ Second Century Ventures, has seen a surge in business since the pandemic. Notarize says its business has grown more than 500% since April 1.
 
“If 2020 has shown us anything, it’s that digitizing transactions that have traditionally been full of friction, incredibly manual, and inconveniently in-person is not just a nice-to-have anymore – it’s a necessity,” Cristin Culver said in a statement in joining the Notarize team as its head of communications.
 
Source: “A Surprising New Crack in Real Estate Closings Shows It’s Time for Lenders to Act,” Forbes.com(Aug. 26, 2020)
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