01 Jun Shadow Wood at the Brooks Real Estate News | June 2024
As of June 1, 2024, there are 15 active listings in our area multiple listing service (MLS) in Shadow Wood. That is 1 less than last month.
For comparison, last year on June 1, there were 7 listings in Shadow Wood.
There are 6 single-family homes on the market, listed from $1,550,000 to $3,295,000. The average list price is $2,227,500. The average days on the market is 78 days; the average total days on the market is 79 days.
In the condo market, there are 9 active listings ranging from $499,000 to $975,000. The average list price is $651,856. The average days on the market is 97 days; the average total days on the market is 162 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 20 sales; the average sales price was $649,675; and, these condos were on the market an average of 22 days; combined days on the market is 75.
- During the 12 months previous, there were 31 sales; the average sales price was $636,400; and, these homes were on the market an average of 25 days; combined days on the market is 78.
SINGLE-FAMILY SHADOW WOOD HOMES
- During the last 12 months, there were 43 sales; the average sales price was $1,655,535; and, these homes were on the market an average of 54 days; combined days on the market is 106.
- During the 12 months previous, there were 51 sales; the average sales price was $1,720,678 and, these homes were on the market an average of 23 days; combined days on the market is 85.
For a list of SHADOW WOOD homes sold in the last 12 months, click here.
For a list SHADOW WOOD homes that are pending at the moment, click here.
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June 2024 Market Update
Property Insurance Analysis: ‘Cautiously Optimistic’
With a potentially volatile hurricane season ready to start, the AM Best financial-rating agency released a report Thursday that said Florida’s property insurance market is showing signs of improvement — but that time will tell.
The report said AM Best is “cautiously optimistic” about the Florida market, in part because of an overhaul passed by lawmakers and Gov. Ron DeSantis in 2022 that included trying to shield insurers from costly lawsuits. Other factors include a decrease since September in the number of homeowners getting coverage from the state’s Citizens Property Insurance Corp.
“While still too early to declare a win in the Florida personal property market, the signals look promising,” the report said. “The legislative reforms and declining Citizens’ policies in force mark a step in the right direction. Time will tell if favorable market results will continue and effectively managing hurricane risk is an ongoing challenge.”
AM Best analysts and industry officials largely echoed those conclusions during an online discussion held Thursday by the rating agency. They also cited issues such as improved profitability of insurers and a stable market for reinsurance, which is critical backup coverage in Florida’s hurricane-prone market.
“Let’s hope this is sustainable into the future,” said Dave Newell, vice president of membership and industry relations at the Florida Association of Insurance Agents and one of the speakers during the online event.
Homeowners have faced soaring rates in recent years and, in many cases, have gotten dropped by their insurers as the industry grappled with financial problems. The AM Best report said premiums doubled for typical homeowners.
“With more frequent and severe weather-related losses in recent years — including Hurricane Ian in 2022 and non-named storms — carriers have seen material volatility in both their operating results and (financial) surplus levels,” the report said. “To combat these market challenges, carriers needed significant rate increases. The average Florida homeowners policy premium doubled, increasing 102% in just the past three years, according to the Insurance Information Institute. In 2024, a slightly positive signal to the market has emerged, with a handful of companies nearing rate adequacy filing rate reductions, albeit marginally.”
Along with higher rates, the problems led to explosive growth at Citizens, which was created as an insurer of last resort but has become by far the largest property insurer in the state. Citizens had as few as 420,000 policies in 2019 but grew to 1.4 million in September 2023.
That number has gradually decreased through a “depopulation” program designed to shift policies into the private market. As of last week, Citizens had nearly 1.19 million policies.
State officials this spring have touted improvements in the market. As an example, the Florida Office of Insurance Regulation this month said at least eight carriers had filed for rate decreases in 2024, while 10 had filed to keep rates flat. It was not clear how many of the more than 7.4 million residential policies in the state would be affected by the decreases.
The AM Best report said that while “there are signs of stabilization, sustaining these improving market conditions will be critical.”
A big test could come during the six-month hurricane season that will start Saturday. Forecasters, including from the National Oceanic and Atmospheric Administration, are predicting a busier-than-average season, in part because of warm ocean waters that can fuel punishing storms.
The AM Best report, while describing improved signs in the industry, noted that Florida was hit in 2023 by only one hurricane, Idalia, which did not go through heavily populated areas.
“With the National Oceanic and Atmospheric Administration forecasting a higher frequency of named storms for 2024, it will be a good test for Florida insurers to see if these favorable results are sustainable,” the report said.
© 2024 The News Service of Florida. All rights reserved.
Inventory Hike Helps April Home Sales Swell
According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction. Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3 percent to 1,335 new listings from 1,148 new listings in April 2023.
“There are three things that could really help our market if they trended in the right direction: mother nature, insurance and interest rates,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “But those are out of our control.”
Broker analysts including Dominic Pallini, Broker at Vanderbilt Realty, Inc., believe, “Interest rates are likely to stay above 5 percent for a long time.” But Jeff Jones, Broker at Keller Williams Naples, added that there is good news on the insurance front as “nine new companies have recently entered the Florida market, and 19 others have said they will lower rates or at least not increase them in 2025.”
The New Average
Demand for the Naples lifestyle increased during the pandemic, which depleted inventory for homes in the under $300,000 market – there were 315 homes for sale under $300,000 in April. Conversely, demand for luxury properties have soared, especially in the $500,000 to $1.5 million price category, which increased 68.1 percent compared to April 2023 and occupy the highest number of properties available (2,410) in the current inventory.
“The average closed price in Naples is over $1 million,” remarked Budge Huskey, CEO, Premier Sotheby’s International Realty.
However, according to the report, closed sales influencing the overall average price growth was in the Naples Beach area. For April, the average closed price of single family homes in communities located in the Naples Beach area (34102, 34103, 34108) increased 61.6 percent to $4,309,475 from $2,666,512 in April 2023. That said, this area was also where a large majority of properties sold for less than original list price as the percent of list price received decreased to 93.3 percent for single family homes and 94.8 percent for condominiums. This indicates sellers are reducing prices to meet the market.
Future Fit & Forward
According to the April report, the average monthly inventory in Naples is back to its familiar pre-pandemic level. April’s inventory increased 68.1 percent to 5,240 properties from 3,118 properties in April 2023. And the months supply of homes is up to 7.3 months. Huskey commented, “Typically, we begin to see prices slide once the months supply gets above 6 months, but we’re not seeing this in our market today. Inventory is growing, and prices remain stable.”
“Home values have doubled since 2019,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “And there’s no indication that homeowners are at risk of losing this growth in value.”
Carroll went on to say that there will be spots in the county that will experience a slight loss in value, but nothing on a large scale or that would take us back to pre-pandemic prices. “I am unable to find anything in my research that is alarming. The thing we have to focus on now is re-educating our sellers on home prices today. Their home’s value has likely increased, but the number of price reductions each month tells me that prices are still starting out too high. If a home is not priced competitively when it’s listed, sellers will likely need to lower the price to meet the market.”
“It’s time to shake off the COVID years,” said Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices. “Compared to 2019, we are doing great today with higher inventory, low days on market, and remarkable increases in overall home values.”
As more high-end buyers discover the allure of Naples, broker analysts do not foresee the median closed price decreasing dramatically. For April, the overall median closed price increased 4 percent to $450,000 from $425,000 in April 2023. Though price adjustments are moving the needle in certain markets. April reported 2,365 price decreases, which decreased the median closed price 3.2 percent in the single family home market to $793,750 from $820,000 in April 2023.
The NABOR® April 2024 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 (singlefamily and condominium) findings for 2024:
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View the April 2024 Market Statistics |
Busting Assumptions
The cost to build is higher than before the pandemic too. According to Mike Bone, Area Sales Manager, D.R. Horton, “The average new construction entry level price today is around $450,000 in Southwest Florida.”
The heightened cost to repair or rebuild is a primary factor in rising insurance rates. Yet, with more buyers in Naples paying cash – 65.4 percent of all transactions recorded in April – insurance and interest rates may not be as great an obstacle as some assume.
Growth in overall closed sales in April is a positive omen that the Naples real estate market is on track to outperform sales in 2023. “Historically, May has the highest number of closings,” said Huskey. Molly Lane, Senior Vice President at William Raveis Real Estate remarked, “If we can continue the growth we saw in April closed sales in May, this portends good things to come for our market.”
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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