01 Dec Shadow Wood at the Brooks Real Estate News | December 2022
As of December 1, 2022, there are 11 active listings in our area multiple listing service (MLS) in Shadow Wood. That is 7 more than last month.
For comparison, last year on December 1, there were zero listings in Shadow Wood.
There are 8 single-family homes on the market, listed from $949,000 to $3,700,000. The average list price is $2,324,113. The average days on the market is 34 days; the average total days on the market is 34 days.
In the condo market, there are 3 active listings ranging from $625,000 to $675,000. The average list price is $646,667. The average days on the market is 20 days; the average total days on the market is 20 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 $612,250; and, these condos were on the market an average of 14 days; combined days on the market is 70.
- During the 12 months previous, there were 39 sales; the average sales price was $427,754; and, these homes were on the market an average of 34 days; combined days on the market is 84.
SINGLE-FAMILY SHADOW WOOD HOMES
- During the last 12 months, there were 51 sales; the average sales price was $1,583,329; and, these homes were on the market an average of 10 days; combined days on the market is 69.
- During the 12 months previous, there were 65 sales; the average sales price was $1,061,895 and, these homes were on the market an average of 66 days; combined days on the market is 154.
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.
December 2022 Market Update
DOWNING-FRYE: BUYERS ARE BACK SEARCHING THE MARKET
“Hurricane Ian pulled a number of waterfront listings off of the market. It also generated some new listings!” said Mike Hughes, V. P. and Gen. Mgr. of Downing-Frye Realty, Inc. “After the hurricane, buyers largely paused for several weeks and then resumed their search for a home. The pending sales in the second half of 2022 have been steady. One bright spot is that the high end buyers continue to be active. The market above one million has been very good this year. The low listing inventory continues to hold down the sales. It is also helping to keep the property values up when coupled with buyer demand. Also the rapid rise in interest rates has pulled a number of the buyers that require financing, at least temporarily, out of the market. However, with rising rents in the area, I suspect that some of these potential buyers that require financing will start getting active in the future.”
BONITA / ESTERO: MOSTLY CASH BUYERS
October’s jump in the median price offset half of September’s decline while pending transactions increased 45% from the previous month. Cash sales jumped by 7 points post Ian to 67.7% cash sales, which were affected by the continued rise in interest rates with buyers opting to pay cash and the many damaged properties offered “as is” that do not qualify for financing. With the large number of damaged properties in the surrounding towns, many displaced locals are searching for new homes further inland and short-term rentals. Jerry Murphy, Managing Broker of Downing-Frye Real Estate’s Bonita Springs office said, “With the displaced locals looking for rentals, many seasonal renters are accepting annual renters, this has in turn pushed the seasonal renters out or encouraged them to purchase their second home in the area. This has caused a large rental shortage.”
NAPLES AREA: INVENTORY UP
Compared with 2021, which was a standout year for real estate in Collier County, closed sales in October decreased 24.5 percent to 662 closed sales from 877 closed sales in October 2021. Pending sales (homes under contract) also decreased 43.3 percent to 673 pending sales from 1,186 pending sales in October 2021. October’s overall median closed price held fast at $555,000, the same as was reported in September. But compared to October 2021, the overall median closed price increased 23.3 percent from $450,000. Interestingly, the statistics showed a 1.6 percent decrease in median closed price for condominiums between September and October. Overall new listings in October decreased 13.9 percent to 908 from 1,054 in October 2021, but new listings for single family homes soared in October and were just 10 properties shy of the 548 new listings reported in October 2021.
MARCO ISLAND AREA: INCREASED INVENTORY
The Marco Island Area Assoc. of Realtors® reported that in the month of October, 18 homes were sold for the median sell price of $1.8M (up 60% from last October) averaging 52 days on the market. The total inventory for October 2022 was 320 properties (up 37% from 2021) with 47 total closed units for a total volume sold $64M.
FLORIDA: SUPPLY & MEDIAN PRICES RISE
Florida Realtors Chief Economist Dr. Brad O’Connor said, “The fact that monthly sales still remain in the neighborhood of pre-pandemic levels despite today’s significantly higher home prices and mortgage rates only illustrates that despite these headwinds, housing demand in Florida continues to receive support from its recent surge in post-pandemic in-migration, vacation home purchases, and the ever-increasing number of millennials looking to find a home for their growing families.” In October, the statewide median sales price for single-family existing homes was $401,990, up 12% from the previous year; for condo-townhouse units, it was $310,000, up 19.2% over the year-ago figure. Also reported were higher median prices and more inventory (active listings) in October compared to a year ago.
USA: SALES DIP 4.6% IN OCTOBER
Pending home sales dropped for the fifth consecutive month, down 4.6% from September. “October was a difficult month for home buyers as they faced 20-year-high mortgage rates,” said NAR Chief Economist Lawrence Yun. “The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS® and Marco Island Area Assoc. of REALTORS®
FHA Announces 2023 Loan Floors and Ceilings
The Federal Housing Administration (FHA) announced new loan limits for calendar year 2023 for its Single Family Title II forward and Home Equity Conversion Mortgage (HECM) insurance programs.
Forward mortgage loan limits
Mortgage limits for the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted by FHA to account for higher costs of construction.
In 2023 the maximum loan limits for FHA forward mortgages will rise in 3,222 counties. In 12 counties, FHA’s loan limits will remain unchanged. By statute, the median home price for a Metropolitan Statistical Area (MSA) is based on the county within the MSA that has the highest median price.
HECM loan limits
The HECM maximum claim amount will increase from $970,800 this year to $1,089,300 for FHA case numbers assigned on or after Jan. 1, 2023. This maximum claim amount is applicable to all areas, including the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
To find a complete list of FHA loan limits, areas at the FHA ceiling, and areas between the floor and the ceiling, visit FHA’s Loan Limits Page.
© 2022 Florida Realtors®
Housing Market Favorable for Preseason Buyers
Speculation that home sales in October would drop dramatically in Collier County following Hurricane Ian was proven inaccurate as closed and pending sales for the month increased 23.7 and 8.7 percent, respectively, compared to closed and pending sales reported in September, according to the October 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And even though 525 listings were either terminated, expired or withdrawn from the Southwest Florida MLS during October, overall inventory for the month increased 72.7 percent to 2,325 properties from 1,346 properties in October 2021.
“Our current market has created many new opportunities for redevelopment that have caught the attention of a much broader spectrum of buyer,” said Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties. “It is an environment created out of tragedy that will prove beneficial for the Naples area in the long run.”
Budge Huskey, CEO, Premier Sotheby’s International Realty, responding to Haynes said, “This is a statement about the confidence of our market in the future. Many older homes that experienced severe flood damage during Ian are in desirable locations. And this is going to start a new building boom with higher quality product.”
Admittedly, compared to 2021 which was a standout year for real estate in Collier County, closed sales in October decreased 24.5 percent to 662 closed sales from 877 closed sales in October 2021. Pending sales (homes under contract) also decreased 43.3 percent to 673 pending sales from 1,186 pending sales in October 2021.
According to NABOR®’s statistics, October’s overall median closed price held fast at $555,000, the same as was reported in September. But compared to October 2021, the overall median closed price increased 23.3 percent from $450,000. Interestingly, the statistics showed a 1.6 percent decrease in median closed price for condominiums between September and October. Haynes added that, “While we saw a slight increase in new listings by condominium owners who had damage and decided to sell instead of rebuild, the hurricane is not going to spark a ‘fire sale’ trend.”
There was a 26.1 percent increase in new listings in October compared to September, which broker analysts say is typical this time of year. Overall new listings in October decreased 13.9 percent to 908 from 1,054 in October 2021, but new listings for single family homes soared in October and were just 10 properties shy of the 548 new listings reported in October 2021. Preseason buyers will be pleased to find many more options than last year.
The NABOR® October 2022 Market Report provides 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 for 2022:
| 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. |
HUD Rental Survey Finds Tons of Small Investors |
By Kerry Smith
The U.S. has 49.5M rental units, and 46% are in buildings with four units or less. Of those, mom-and-pop investors own 70% – 1 out of 3 units nationwide.
As the housing market has cooled considerably, sellers are now wrestling with whether to sell their homes as soon as possible or hold off on selling.
Two years ago, it was an easier decision: Prices were at record highs, interest rates were lower than they had been in years, and buyers were so desperate to get into a home that they often bid up on homes and waived any appraisals.
But now, with more homes coming to the market and higher interest rates, buyers have started to reclaim more of the power, throwing sellers into unfamiliar territory.
With the market having shifted, is it more beneficial for them to sell now or wait for another boom?
“We ask them a simple question: ‘Do you think your house will be worth more in six months or a year than it is today, looking at the way the economy is and what interest rates are?’” said Alex Platt, a Realtor with the Platt Group at Compass in Boca Raton.
A seller’s perspective
For Dr. Imran Mirza, the decision to put his home up for sale was an easy one. He saw the bidding wars around him and properties flying off the market, and decided to capitalize on South Florida’s record boom before a possible correction took place.
He finally closed on his five-bedroom, five-and-a-half bathroom house in Boynton Beach about a week ago for $1.4 million, a down adjustment from the price he wanted – $1.895 million.
It was still a significant profit from the $900,000 he paid for the home in 2017. There are “these kind of profits where people live in their homes for 20 years, and they don’t see these kind of profits,” he noted.
For potential sellers looking to list now, there is some anxiety around deciding to sell: Have they missed the peak of the market in terms of prices? Will holding off on selling decrease their ability to get a high price even more?
“If they are moving out of town, or if it’s a second home or investment home that they want to pull money out of in the next five years, they should really sell now,” said Brian Pearl, principal agent with the Pearl Antonacci Group in Boca Raton, said. “We are really trying to paint the picture, are you OK waiting for another 5 to 10 years? If you are not, you should strongly consider selling now. If you need to move, sell now because the future is uncertain.”
For Mirza, he believes that if the time is right in a seller’s life and if someone wants to sell, they should do it now rather than wait out the shifting market.
“I figured we were at the peak for selling it and you don’t want to wait another seven years for this to happen again,” he said. “If they put their house out now, they have a good chance of selling it.”
What sellers need to weigh
Most experts agree: If a seller needs to move and wants to, then they should put the home up for sale. However, if a seller likes their home and is comfortable with their current payments, then they should stay in their house.
“While things have cooled off in South Florida, this is still a good time to sell,” said Jeff Tucker, senior economist with Zillow. “I don’t see a whole lot to gain from waiting, in part because the market is turning and the higher interest rates are having a snowball effect and cooling the market even more.”
Stephan Gehrig, 38, sold his home in Delray Beach in August for about $2.2 million, a little before prices started to adjust in South Florida.
“I saw how I was kinda at the end of the peak,” Gehrig said. “I was one of the last homes that sold in the neighborhood. I waited to list and I saw how previous homes, they had all sold within a week or two, and I got concerned [when] mine didn’t.”
Interest rates and inventory levels have been the main driving force of the housing market. Right now inventory levels, while they have risen compared to last year, are still low enough to keep prices high, a plus for sellers. Should more homes become available on the market, sellers would face more competition in selling their homes, Platt noted.
“It does appear that prices will come down a lot more because people are cutting their asking price,” said Eli Beracha, director of the Hollo School of Real Estate at Florida International University.
For Gehrig, his home sold in less than 30 days, and while he had to compromise on price a little bit as he witnessed the beginning signs of the incoming cooldown, Gehrig still feels that the price was enough to make it worth listing his home.
“I do wish I listed sooner,” Gehrig said.
© 2022 South Florida Sun-Sentinel. Distributed by Tribune Content Agency, LLC.
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