01 Apr Shadow Wood at the Brooks Real Estate News | April 2022
As of April 1, 2022, there are 6 active listings in our area multiple listing service (MLS) in Shadow Wood. That is 4 more than last month.
For comparison, last year on April 1, there were 3 listings in Shadow Wood.
There are 3 single-family homes on the market, from $1,599,999 to $2,695,000. The average list price is $2,015,000. The average days on the market is 31 days; the average total days on the market is 33 days. In the condo market, there are 3 active listings on the market, from $579,000 to $699,000. The average list price is $625,667. The average days on the market is 15 days; the average total days on the market is 16 days.
A reminder, you have access to the most comprehensive website devoted to Shadow Wood, www.ShadowWoodRealty.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 Shadow Wood. With over 35 years of helping buyers and sellers in SWFL, my experience will be invaluable in this fast-moving, low-inventory market.
Your Shadow Wood REALTOR®,
Ed Gongola
Summary of Shadow Wood Home Sales
If you are considering selling your Shadow Wood home, here are some statistics that may help you decide to place your home on the market.
SHADOW WOOD CONDOs
- Within the last 12 months, there were 26 sales; the average sales price was $483,962; and, these condos were on the market an average of 9 days; combined days on the market is 52.
- During the 12 months previous, there were 38 sales; the average sales price was $369,525; and, these homes were on the market an average of 90 days; combined days on the market is 189.
SINGLE-FAMILY SHADOW WOOD HOMES
- During the last 12 months, there were 45 sales; the average sales price was $1,233,374; and, these homes were on the market an average of 16 days; combined days on the market is 61.
- During the 12 months previous, there were 74 sales; the average sales price was $972,248 and, these homes were on the market an average of 104 days; combined days on the market is 249.
For a list of SHADOW WOOD homes sold in the last 12 months, click here.
For a list of SHADOW WOOD homes that are pending at the moment, click here.
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April 2022 Market Update
DOWNING-FRYE: BUYER DEMAND CONTINUES TO STAY STRONG
“March 2022 saw Downing-Frye agents have over $219 million in closed sales volume,” said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. “With this sales volume, Downing-Frye agents closed over $488 million in the first quarter of the year. The numbers certainly could be higher if there was more listing inventory. With a tight inventory of listings and strong buyer demand, many open houses are seeing a lot of visitor traffic. Multiple offers are quite common these days. A lot of times the winning buyer has to offer more than the list price to secure the property. Many of our listings are going under contract quickly. One issue that sellers need to think about is where will they move to? Downing-Frye has seen a decline in rental listings this year. Many of the landlords are cashing out and selling with the new buyer retaining the property rather than continue using the property as a rental. As we said earlier, the properties for sale inventory of listings remains tight. Downing-Frye agents look forward to this unusual market. A market like this gives us the ability to show the consumer our worth. We are off to a good start this year!”
BONITA / ESTERO: DEMAND STILL STRONG
New summer inventory is expected, but the question is: Will it be enough to satisfy demand? For the month of February 2022, REALTOR.com reported over 29 million search result page views in the Bonita Springs and Estero markets, a testament to the area’s popularity. In comparing February 2022 with February 2021: the median closed sales price was up 34.9 percent to $479,000; active inventory was down 74.2 percent to 217 listings; and the number of new listings was slightly higher at 407 units. Less than one-month’s supply of inventory was available in February 2022.
NAPLES AREA: HOME VALUES HITTING RECORD HIGHS
The overall median closed price in February was $550,000, a 37.5 percent increase over the median closed price in February 2021. The high demand for homes is demonstrated by the number of showings in February, which was 43,032. When divided by the number of homes in inventory during February (1,176), this translates to 36 showings per home. For perspective, in 2019 there were 2.9 showings per home. The data also shows that homes sold fast in February, within 23 days on the market, and the percent of list price received was 100.6 percent, which pleased many sellers. It is only due to a lack of inventory that home sales in Naples did not fare as well as last February. Single-family closed sales were down by 25.2 percent, and condo closed sales were down by 50.5 percent.
MARCO ISLAND AREA: MEDIAN PRICE UP
The Marco Island Area Assoc. of Realtors® reported that February 2022 compared to February 2021 showed the following: Total inventory (175 properties) was down 62 percent, closed sales (84 properties) were down by 46 percent with a volume sold of $122.2 million, down 9 percent. The February median sales price for homes was $1.9 million (up 76 percent), for condos was $518,000 (down 7 percent), and for lots was $715,000 (up 79 percent).
FLORIDA: TIGHT SUPPLY; MEDIAN PRICE UP
In February, closed sales of single-family homes statewide totaled 23,661, down 1.2 percent year-over-year, while existing condo-townhouse sales totaled 10,975, down 3.6 percent over February 2021. The statewide median sales price for single-family existing homes was $381,481, up 21.1% from the previous year, and for condo-townhouse units was $290,000, up 24.3 percent. In the face of higher mortgage rates, price growth is expected to eventually slow, said Dr. O’Connor, Florida Realtors Chief Economist. “We should expect sales next month to be below last year’s levels, but still well above pre-pandemic levels,” he said.
USA: PENDING HOME SALES DOWN AGAIN
Pending home sales slipped in February, marking four consecutive months of transaction decreases. The Northeast was the only area that reported an increase. “Pending transactions diminished in February mainly due to the low number of homes for sale,” said Lawrence Yun, NAR’s chief economist. “Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale.’ Also, the surge in home prices combined with rising mortgage rates can easily translate to another $200 to $300 in mortgage payments per month, which is a major strain for many families already on tight budgets.” Yun forecasts mortgage rates to be about 4.5-5 percent for the remainder of the year and expects about a 7-percent reduction in home sales in 2022 compared to 2021.
Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS® Marco Island Area Assoc. of REALTORS®
New-Home Market Was Broken Before Pandemic
BUILDERS ONCE KEPT UP WITH DEMAND, BUT GREAT RECESSION CUTBACKS AND WORKER LOSSES CREATED MAJOR PROBLEMS EXACERBATED BY NEW PANDEMIC-CREATED CHALLENGES.
Almost every real estate economist has said for years that “We need more new homes” to end problems such as rising home prices and housing for low-incomes Americans.
However, the housing market continues to face low inventory and high home prices, and experts continue to hope that home builders can increase supply. The lack of new-home inventory doesn’t just impact the new-home industry – it also pushes more buyers into the existing-inventory home market.
But builders haven’t been able to keep up. They point to supply chain disruptions. Lennar says those disruptions have slowed quarterly production cycles by two weeks for two consecutive quarters.
“The ability to actually build and deliver homes has been slowed by the supply chain that is all but broken, by the workforce that is short in supply, and the intense competition for scarce entitled land assets. Therefore, the supply of homes has remained quite limited and is not prone to overbuilding,” according to Lennar Executive Chairman Stuart Miller.
Similar reports were delivered by Texas-based builder D.R. Horton and Georgia-based PulteGroup to their investors. Their reports acknowledged the challenge of skyrocketing lumber costs, weakened labor forces, and issues sourcing building materials and appliances.
“Just about every housing analyst and housing economist right now agrees that we need to add more housing, and it’s not just single-family housing – we need to build more townhouses, more missing middle duplex type housing, and more apartments,” says National Association of Home Builders Chief Economist Robert Dietz. “There’s no single scalable solution that’s going to solve the problem. It’s going to require years to fix the problem, and buyers will be priced out in the process.”
Redfin Deputy Chief Economist Taylor Marr says inflated lumber costs and supply chain issues have increased the cost of building a home by 22% over the past year alone. Dietz also points to the costs associated with inflation, which reached 7.9% in February, making it harder for privately owned home builders to secure the loans they need to withstand higher material costs and the financial risk that comes with increasing completion timelines.
Source: Inman (03/28/22) McPherson, Marian
© Copyright 2022 INFORMATION INC., Bethesda, MD (301) 215-4688
Sellers are Taking Advantage of Home Values Hitting Record High
MORE SELLERS ARE MOTIVATED TO ENTER THE MARKET AS HOME VALUES CONTINUE TO RISE AS A RESULT OF LIMITED INVENTORY AND HIGH DEMAND IN THE NAPLES AREA. ACCORDING TO THE FEBRUARY 2022 MARKET REPORT RELEASED BY THE NAPLES AREA BOARD OF REALTORS® (NABOR®), WHICH TRACKS HOME LISTINGS AND SALES WITHIN COLLIER COUNTY (EXCLUDING MARCO ISLAND), THE OVERALL MEDIAN CLOSED PRICE IN FEBRUARY WAS $550,000, A 37.5 PERCENT INCREASE OVER THE MEDIAN CLOSED PRICE IN FEBRUARY 2021. THE HIGH DEMAND FOR HOMES IS DEMONSTRATED BY THE NUMBER OF SHOWINGS IN FEBRUARY, WHICH WAS 43,032. WHEN DIVIDED BY THE NUMBER OF HOMES IN INVENTORY DURING FEBRUARY (1,176), THIS TRANSLATES TO 36 SHOWINGS PER HOME. FOR PERSPECTIVE, IN 2019 THERE WERE 2.9 SHOWINGS PER HOME. THE DATA ALSO SHOWS THAT HOMES SOLD FAST IN FEBRUARY, WITHIN 23 DAYS ON THE MARKET, AND THE PERCENT OF LIST PRICE RECEIVED WAS 100.6 PERCENT, WHICH PLEASED MANY SELLERS.
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Will Ukraine War Impact Florida Real Estate?
By Derek Gilliam
ON THE ONE HAND, FLA. IS THE NO. 1 STATE FOR RUSSIAN RE INVESTING – 29% OF ALL U.S. PURCHASES. ON THE OTHER, RUSSIAN BUYERS MAKE UP ONLY 0.8% OF ALL FOREIGN PURCHASES.
NAPLES, Fla. – Over the past six years, Russian buyers of U.S. real estate have preferred the sunny coasts of Florida over property in any other state in the nation. Wealthy Russians have reportedly bought so many luxury condo properties in the north Miami city of Sunny Isles Beach that some have termed it “Little Moscow.”
“They love to be here, and they like to spend their money and enjoy their life,” Lana Bell, a South Florida real estate agent told NewsNation.com.
But it’s not just the wealthy Russian elites seeking Florida sunshine.
Across the state from Warm Mineral Springs in North Port all the way up to small town of Steinhatchee near the Panhandle, Russians and Eastern Europeans have established communities, according to population data from the U.S. Census Bureau’s American Community Survey.
Over the past six years, 29% of Russian real estate transactions in the United States occurred in Florida, the most in the nation, according to a report from the National Association of Realtors® (NAR).
But even as countries across the world impose sanctions on Russia for invading and waging a brutal war against its neighbor Ukraine, the impact to U.S. home or property prices is not expected to be meaningful, even without any Russian purchases of Florida real estate.
“Russia has little direct impact on the U.S. real estate market as it accounted for less than 1% (0.8%) of all foreign buyers who purchased U.S. residential property from April 2015 through March 2021, according to data from NAR’s survey of foreign buyer transactions of its members,” covering about 5,000 respondents, the report said. Any effect from the loss of Russian purchases would tend to be at the high end, as the NAR’s report notes that Russian buyers buy more luxury properties than the average Florida buyer.
Still, with the transition of the pandemic to a different phase, the loss of Russian buyers could be offset by the resumption of purchases by people from other countries, as well as within the U.S.
Craig Cerreta, the managing broker for Premier Sotheby’s International Realty’s Sarasota office, said the pandemic caused a near shutdown of foreign buyers, but that the segment has been bouncing back in recent months.
During the COVID pandemic, real estate prices have drastically increased in Florida as migration brought new residents to the state, with people retiring early or enjoying the ability to work remotely.
Tight supply
Historically, Cerreta said, Canadians, followed by residents of the United Kingdom, have accounted for the majority of international real estate transactions in the Sarasota market.
“There is no question that they (Russian purchasers) are small” locally, he said. “But they are typically high-end buyers.”
The NAR data says that the average Russian real estate transaction was about $650,000. The average for all international buyers was about $480,000.
But, with the demand seen for Florida properties, combined with historically low number of properties for sale, any loss of Russian purchases are being more than made up from demand from other buyers, Cerreta said.
Cerreta recently sold a home he owned in the Sarasota area. During the open house, more than 170 people viewed the residence and 21 people made an offer. Three of the offers came from people in California, something that surprised the longtime real estate agent, as Californians have historically not been a large market for the west coast of Florida.
Any loss of demand from Russian buyers for luxury properties or other property types won’t be felt in the Sarasota market, he said.
In February, 72% of all real estate sales in the Sarasota market closed at or above the list price compared to 43% at or above list price in February 2021, Cerreta said. “There’s not enough inventory to meet demand,” he said of the Sarasota market.
Sergei Sokolov, a Realtor with Sarasota’s Michael Saunders & Co., was born in Ukraine but moved to the United States when he was 5 years old. The now-47-year-old real estate professional, fluent in Russian and Ukrainian, said Russian speakers often want a Realtor who speaks their language.
The first house he sold in Sarasota in 2004 was to a Russian speaker, and he does about three or four transactions a year. Sokolov specializes in entry level homes typically in the $350,000 to $400,000 price range, with the majority of his Russian-speaking buyers already living in the U.S. or Canada and unlikely to be impacted by the Russian-Ukrainian war.
“I don’t expect there to be much of an impact on my business,” he said. “There’s just a lot more demand than there is supply.”
Varied buyers
The next closest U.S. state for Russian buyers was Georgia with 16% of all Russian purchases of U.S. real estate, roughly 13 percentage points behind Florida. New York (13%), California (8%) and Illinois (5%) rounded out the top five states for total transactions from Russian buyers.
The NAR report said that even in Florida, purchases of real estate made by Russians accounted for just 0.2% of the Sunshine State’s real estate transactions from July 2020 to June 2021. Those numbers may be skewed as the pandemic caused many governments to restrict travel to other countries.
A 2020 profile on international residential transactions in Florida conducted by the NAR with Florida Realtors, the largest trade organization in the state, concluded that foreign buyers accounted for $15.6 billion in real estate transactions from August 2019 to July 2020 – about 11% of the state’s sales. The total transaction volume for Florida real estate in that time period was $137 billion dollars.
However in that report that largely accounted for sales just prior to the pandemic, Russia did not rank among the top 15 counties for any Florida metro besides Miami. The Miami metro market, the largest in Florida, had just 2% of home sales go to Russian buyers.
The largest group of foreign buyers by transaction volume came from Latin America and the Caribbean with about 37% of the total value of homes purchased by international citizens.
Canadian buyers had the most transactions at 21% followed by Brazil (7%), Argentina (6%), Venezuela (5%), Columbia (5%) and the United Kingdom (5%).
The metro area of Miami-Fort Lauderdale-West Palm Beach had the lion’s share of foreign buyers with 47.3% of all purchases. The Tampa-St. Petersburg-Clearwater metro accounted for 11%; Orlando-Kissimmee-Sanford had 9.7%, North Port-Sarasota-Bradenton had 6.9% and Cape Coral-Fort Myers came in at 4.7%.
Larger economic issues
While Russians account for a tiny fraction of all real estate purchases in Florida, the real impact of the conflict may be felt at the gas pump as international buyers cut ties with Russian energy. President Joe Biden announced a ban on Russian oil earlier this week.
Chris Jones, president of Florida Economic Advisors and a University of South Florida faculty member at USF in the economics department, agreed with the real estate experts that the reduction in demand from Russian buyers for U.S. real estate won’t shift home prices in Florida.
However, the impact of rising gas prices could be dangerous for the U.S. economy, he said.
He anticipates that gas prices will increase at least another 50 cents before the end of May, with peak price per gallon of gasoline surpassing $5 per gallon this year. As people pay more at the pump, they have less money to spend on goods and services that drive the economy, which he believes will lead to a decrease in the nation’s economic output.
He said he fears that the American economy could be headed toward “stagflation” because of the rising gas prices. Stagflation happens when an economy has rising inflation at the same time as slowing economic output.
“We’re already halfway there,” he said, pointing to rising inflation.
Rising gas prices will also have an impact by raising prices on nearly all goods and services which could then cause fewer people to be able to afford to purchase residential property.
Less demand, caused largely by rising gas prices, would then impact Florida’s real estate market.
© 2022 Journal Media Group
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Why Chose Me as Your REALTOR®?
To learn more about me and my real estate business, 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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