Shadow Wood at the Brooks Real Estate News | December 2019

Shadow Wood at the Brooks Real Estate News | December 2019

As of December 1, 2019, there are 64 active listings in Shadow Wood; 1 more than last month. There are 44 single-family, listed homes ranging from $539,900 to $2,250,000. The average list price is $1,207,527 and the average days on the market is 110 days. Combined days on the market is 186. In the condo market, there are 20 active listings in Shadow Wood, ranging in price from $265,000 to $550,000. The average list price is $408,535 and the average days on the market is 125. Combined days on the market is 172.

Whether you are buying or selling, if you are looking for REALTOR® representation, think of me and allow me to share my 30 years of experience putting buyers and sellers together in SWFL

Your Shadow Wood REALTOR®,
Ed Gongola

SUMMARY OF SHADOW WOOD HOME SALES

SHADOW WOOD CONDOS

  • Within the last 12 months, there were 26 sales; the average sales price was $344,173; and, these condos were on the market an average of 115 days; combined days on the market is 204.
     
  • During the 12 months previous, there were 34 sales; the average sales price was $354,312; and, these homes were on the market an average of 109 days; combined days on the market is 187.

SINGLE-FAMILY SHADOW WOOD HOMES

  • During the last 12 months, there were 65 sales; the average sales price was $829,101; and, these homes were on the market an average of 125 days; combined days on the market is 259.
     
  • During the 12 months previous, there were 71 sales; the average sales price was $874,571 and, these homes were on the market an average of 99 days; combined days on the market is 178.
For a list of SHADOW WOOD homes sold during the past 12 months, click here.

For a list of SHADOW WOOD 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.

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Click here for membership information.

DECEMBER 2019 MARKET UPDATE

CLOSED SALES CONTINUE TO RISE

“‘Tis the season!” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Our annual influx of snowbirds arrived earlier this year. We had another $100+ million in pending sales during November, and our closed sales volume for the year has already surpassed $1.35 billion. Beyond the typical uncertainty of end-of-the-year stock market news comes the added uncertainty of where the political winds will take us, but one thing remains solid – and that is the potential of real estate investment in Southwest Florida. Downing-Frye agents have compiled an inventory of over 1,000 listings across the price spectrum, giving buyers opportunities to share in our unique real estate market. My advice? Let it snow! And come on down!” 

BONITA /ESTERO: BUYER DEMAND CONTINUES
Pending sales increased again in October by 12.1 percent compared to last October. As a result, closed sales reflected a 7.9 percent increase for October 2019. “Many sellers are finally realizing that an overpriced property will sit on the market with no activity,” stated Jerry Murphy, Managing Broker, Downing-Frye Realty, Bonita Springs. “If you’re not serious about selling right now, wait until you are because listing an overpriced property will not produce offers, neither cash nor financed.” In October 2019, there were 316 price reductions; 184 price reductions for single-family homes and 132 price reductions for condominiums. While pending and closed sales increased over the last year, the available inventory decreased by 18.3 percent (1,412 active listings as of October 31, 2019), representing a 5.1-month supply.
 
FLORIDA: ACTIVITY UP IN 3Q 2019
Florida’s housing market experienced positive trends in 3Q 2019 with more closed sales and higher median prices. Closed sales of single-family homes statewide totaled 78,759 in 3Q 2019, up 8.1 percent from the 3Q 2018 level. The statewide median sales price for existing single-family homes in 3Q 2019 was $265,000, up 3.9 percent from the same time a year ago. The statewide median price for condo-townhouse properties during the quarter was $190,000, up 4.1 percent over the year-ago figure. Statewide closed sales of condo-townhouses totaled 29,539 during 3Q 2019, up 2.2 percent compared to a year ago. In 3Q 2019, new pending sales for existing single-family homes rose 4.4 percent while pending inventory was up 1.7 percent. During the same three months, condo-townhouse new pending sales rose 0.5 percent while pending inventory increased by 0.9 percent. Inventory was at a 3.6-months’ supply in 3Q 2019 for single-family homes and at a 5.3-months’ supply for condo-townhouse properties. 
 
USA: EXISTING HOME SALES CLIMB IN OCTOBER
Total existing-home sales (completed transactions for single-family homes, townhomes, condominiums and co-ops) increased 1.9 percent from September
to a seasonally-adjusted annual rate of 5.46 million in October. Despite lingering regional variances, overall sales are up 4.6 percent from a year ago. “Historically low interest rates, continuing job expansion, higher weekly earnings and low mortgage rates are undoubtedly contributing to these higher numbers,” said Lawrence Yun, NAR’s chief economist. “We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.” The median existing-home price for all housing types in October was $270,900, up 6.2 percent from October 2018 ($255,100), as prices rose in all regions. October’s price increase marks 92 straight months of year-over-year gains. Total housing inventory at the end of October sat at 1.77 million units, down approximately 2.7 percent from September and 4.3 percent from one year ago (1.85 million). Unsold inventory sits at a 3.9-month supply at the current sales pace.

Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®. 

 

 

Study: Lots of Listings Coming as Baby Boomers Age  

Boomers own about 1/3 of all U.S. properties and 27% of them will sell their home within the next 20 years – but some metros will feel the impact more than others.

SEATTLE – Builders have struggled to overcome land scarcity and rising labor costs and materials. But a flood of homes will come on the market over the next 20 years as baby boomers age – enough to affect local economies in traditional retirement areas.
illustration of scale with house on one side and tax on the other
Should You Relocate to Trim Taxes in Retirement?
Northerners are struggling. They love winter sunshine and low taxes, but a decision to move 1,000 miles to Fla. isn’t easy. Will homesickness set in? How much does a trip “back home” to see family cost? And how much tax savings are we talking about?

The boomer generation, once 76 million strong in the U.S., dwarfed the 55 million Gen-Xers and 62 million millennials it preceded. Today, the 60-and-older generation owns about a third of America’s homes, and a new analysis by Zillow attempts to show how their aging will impact the housing market.

The study predicts that a “Silver Tsunami” of sellers will build slowly as the number of adults aged 60 or older pass away each year. However, a rise is expected in the 2020s and 2030s.

In the decade from 2007 to 2017, roughly 730,000 U.S. homes were released into the market each year by seniors aged 60 or older. From 2017 to 2027 and from 2027 to 2037, that number is set to rise to 920,000 and 1.17 million per year, respectively. This means more than 27% of today’s owner-occupied homes will become available by 2037.

While virtually all areas will feel the effects to some degree – between one-fifth and one-third of the current owner-occupied housing stock was impacted in every metro analyzed – the wave won’t hit all at once and won’t strike all markets equally.

Retirement hubs like Florida and Arizona are likely to feel the sharpest impact. If demand erodes because fewer people choose to retire there in the coming years, those areas might end up with excess housing. Also heavily impacted will be regions like the Rust Belt, which saw younger people move away in recent decades, leaving older generations to make up a larger share of the population.

Some regions will be far less affected. These include Salt Lake City, where a much smaller share of homeowners are in their golden years, as well as Atlanta, Austin, Dallas and Houston – all of which are vibrant but relatively inexpensive places that tend to attract younger residents looking for an affordable alternative to expensive coastal cities.

Still, the differences in the share of homes released by seniors among metros are small compared to the differences within them. Palm Springs, for example, will see 45% of its owner-occupied homes vacated by 2037, compared with 23.8% of the combined L.A.-Riverside metro area overall. El Mirage and Sun City figure to see nearly two-third of their homes available, compared with 28.2% of the Phoenix area at-large.

Housing released by the Silver Tsunami – upwards of 20 million homes hitting the market through the mid-2030s – will provide a substantial and sustained boost to supply, comparable to the fluctuations that new home construction experienced in the 2000s boom-bust cycle. Whether this housing is appropriately located, priced and styled to meet future demand, however, will be an important factor in how it pairs with new construction to alleviate today’s housing shortage.

It seems likely, however, that the construction industry  that the construction industry will, over the next 20 years, start to put a greater emphasis on updating existing properties rather than building from the ground up.
 
     © Florida Realtors®

Buyers are Back: Homes Under Contract Soar 24% in October

As predicted by a group of Naples real estate brokers, buyer activity began to rise in October with a remarkable 23.7 percent increase in overall pending sales (homes under contract) to 987 pending sales during October 2019 compared to 798 pending sales in October 2018. Sellers also felt a surge in showings (up 40 percent compared to October 2018), and the number of price reductions slowed to just 15 percent of the properties available in October’s overall inventory compared to September, which saw 26 percent of its inventory’s prices reduced. Price reduction activity is an important behavior for buyers to watch as it is an indication of how eager sellers are to sell.
 
Closed sales during October increased 9.7 percent to 758 closed sales compared to 689 closed sales in October 2018, according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). 
 
“These pre-season pending sales numbers are setting us up to have a good winter sales season,” said Dominic Pallini, Broker at Vanderbilt Realty. “Inventory is also going up yet prices have been holding steady.”
 
Even though October’s overall inventory decreased 17.7 percent to 5,351 homes for sale from 6,500 homes for sale in October 2018, there were actually 362 more homes that came onto the market in October compared to September. According to Pallini, a fair amount of the new inventory is in the new construction market where builders are pricing homes aggressively and offering sweeteners to agents and buyers via incentives.
 
“A large majority of the new construction over the last year appears to be in the market’s “sweet spot”, which is the category of homes priced below $500,000,” said Jeff Jones, Broker at Keller Williams Naples. “This influx of new construction is probably why the median closed price in that price range hasn’t shifted much.”
 
According to Tom Bringardner, Jr., President/CEO of Premier Commercial, “median closed prices in the upper end of the market [homes priced at $2 million and above] rose 8 percent” in October 2019 to $3,200,000 from $2,962,500 in October 2018. However, when 57 percent of the market’s available inventory are homes priced under $500,000, and the majority of new listings every month are also in this range, it’s easy to understand how the overall median closed price reported for the entire market appears to be decreasing. 
 
The overall median closed price decreased 3 percent in October to $329,950 from $340,000 in October 2018. But it’s important to remember that there are also three times as many properties for sale under $300,000 than properties for sale over $2 million in Naples.
 
“Inventory has kept prices attractive which drives demand,” said Budge Huskey, President, Premier Sotheby’s International Realty. “The under $500,000 market is driving our overall market today. This is naturally bringing the median closed price down.”
 
The NABOR® October 2019 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: 

CATEGORIES
OCT 2018
OCT 2019
CHANGE
Total closed sales (month/month) 
689 756 +9.7%
Median closed price (month/month) 
$340,000 $329,950 -3.0%
Total active listings (inventory) 
6,500 5,351 -17.7%
Average days on market  
94 104 +10.6%
Single-family closed sales (month/month) 
371 389
+4.9%
Single-family median closed price (month/month) 
$425,000 $395,000 -7.1%
Single-family inventory 
3,376 2,675 -20.8%
Condominium closed sales (month/month)
318 367 +15.4%
Condominium median closed price (month/month) 
$265,000 $255,000 +3.8%
Condominium inventory 
3,124 2,676 -14.3%
 
Jones noted that homes built prior to the current modern “coastal” era designs are lingering on the market due to the growing unpopularity of the older Tuscan and Mediterranean home designs and architecture. In response, several brokers wondered if this could explain why the days on market for homes in the Naples Beach area increased by a month in October since many of the homes are not amongst the more popular modern designs and architecture.
 
Geographically, closed sales in October were highest (64.4 percent) in areas located in the 34109 zip code (east of Goodlette Frank Rd., west of I-75, south of Immokalee Rd., and north of Pine Ridge Rd.). Other locations that experienced sales increases over 50 percent month/month in October were 34117 (south of Golden Gate Blvd., and east of Collier Blvd.), and 34112 (south of Davis Blvd., north of Rattle Snake Hammock Rd., east of U.S. 41, west of Collier Blvd.). 
 
According to the October 2019 ShowingTime Report, a monthly supplemental report now released with monthly Market Reports, REALTORS® in Collier County reported over 5,000 more showing appointments in October 2019 – a total of 18,531 – compared to October 2018, which had 13,271 showing appointments, a statistic that indicates the heartbeat on overall real estate market activity.
 
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. 
    
Recent changes made Florida a great destination to escape taxes as well as winter, but snowbirds don’t have to completely give up their summers in New England. 
NEW YORK – Shorter days, leafless trees and frost on the ground are all signs that it’s time for snowbirds to head south for the winter. Of course, I’m not talking about real birds – “snowbirds” are people who live up north during the warm-weather months and in the south during the winter. And if you’re one of the thousands of snowbirds heading to Florida this year, I bet you’ll hear a lot of chatter about the tax benefits of being a resident of the Sunshine State. After all, Florida is one of only nine states without an income tax.

So if your summer home is in one of those high-tax states up north – New York, New Jersey, Massachusetts, Minnesota, Maryland, Illinois, Connecticut, Wisconsin and the like – you can potentially save thousands of dollars each year if you can establish residency in Florida instead (perhaps millions for someone like President Trump).

But you can’t just say “I’m a Florida resident” and have the income tax bill from your summer state magically disappear. You need to show that Florida is your primary and permanent home – and it’s your actions, not your words, that count the most.

That means cutting as many northern ties as possible and putting down roots in Florida. But no matter how rooted in Florida you become, don’t be surprised if your summer state still wants you to pay taxes as a resident on all your income (instead of paying tax only on in-state income as a nonresident). The tax agencies in many high-tax northern states have well-earned reputations for fighting wealthier snowbirds who suddenly claim to be Florida residents. So, if you’re going to make that claim, be sure you can back it up.

Here are 15 things you can do to show that you are, in fact, a resident of Florida if your summer state challenges your residency status. 
 
Spend most of your time in Florida
The majority of states have what’s called a 183-day rule, which basically means the state will tax you as a resident if you own a home there and spend at least 183 days during the year (basically, six months) in the state. (Some states require more in-state days to be considered a resident.) The days don’t have to be consecutive, and even part of a day can count as a full day.

Obviously, if you spend more than half your time in Florida, you won’t reach the 183-day threshold in the state where you spend your summers. If you can’t spend that much time in Florida, then take a vacation, visit family or friends, or otherwise spend time in some other location – anything to avoid spending 183 days or more in your high-tax summer state.

It’s also a good idea to keep a log of where you are each day of the year, just in case the tax agency from your northern state picks you for a residency audit. Keeping receipts from the time you spent in Florida will also help if you’re audited. For instance, if you had dinner at a Florida restaurant, a receipt for the meal will help prove that you were in Florida on that particular day. 
 
Obtain a Florida driver’s license
Getting a Florida driver’s license is a must if you really want to be a Florida resident. In fact, this is something you should do right away, since you’ll need the license to vote, apply for property tax breaks, and do other things in Florida that will help you establish residency in the state.

New residents must apply for a Florida driver’s license in person at any local office offering driver licenses services. The fee for an initial Florida Class E license is $48. You’ll also need to submit specific documents to obtain a REAL-ID compliant driver’s license (the list of required documents for U.S. citizens can be found on the Florida Department of Highway Safety and Motor Vehicles’ website). 
 
Register your vehicles in Florida
When you’re getting your driver’s license, make sure you register your car or truck in Florida, too. If you own an RV or boat, register it in Florida as well. This is further evidence that you consider Florida your permanent home.

You’ll have to pay a registration fee. The amount is based on the type and/or weight of the vehicle. A list of the various motor vehicle registration fees can be found on the Florida Department of Highway Safety and Motor Vehicles’ website.
illustration of scale with house on one side and tax on the other
Should You Relocate to Trim Taxes in Retirement?
Northerners are struggling. They love winter sunshine and low taxes, but a decision to move 1,000 miles to Fla. isn’t easy. Will homesickness set in? How much does a trip “back home” to see family cost? And how much tax savings are we talking about?

Vote in Florida
Where you’re registered to vote says a lot about the place you see as your permanent home. So, to be seen as a Florida resident, make sure you register to vote – and actually vote – in Florida.

You can register to vote in Florida by completing a paper application and delivering it in person or by mail to the Division of Elections, any supervisor of an elections’ office, an office that issues driver’s licenses, or a voter registration agency (e.g., public assistance office, center for independent living, office serving persons with disabilities, public library, or armed forces recruitment office). You can also register online at registertovoteflorida.gov. You’ll need a Florida driver’s license (or ID card) and the last four digits of your Social Security number to complete the online registration. 
 
Buy or rent a bigger home in Florida
Let’s face  … it doesn’t really look like you intend to make Florida your permanent home if you own a giant house up north but only rent a tiny apartment in Florida. That’s why New York, for example, considers the size of each home a snowbird owns or rents to be an important factor in determining residency. So, if possible, get a Florida home that’s at least roughly the same size as your northern home – although it’s better if your home in Florida is larger.

If your summer home is in New York, at least the state will consider home size in the context of the geographic area in which each residence is located. For example, while a 3,000 square-foot apartment in Manhattan may pale in comparison to a palatial home in Florida, it nevertheless may still be spacious by New York City standards. 
 
Enroll your children in Florida schools
If you have minor children, have them enroll in a Florida school. Why? Because the quality of the local schools is usually an important factor for parents deciding where to live. This is true whether the schools are public or private. So, for example, if your children attend a boarding school up north and rarely visit your Florida residence, this could be evidence that you don’t consider Florida to be your primary and permanent home. 
 
Tell people you’re a Florida resident
Yeah, we told you in the introduction that you can’t just say “I’m a Florida resident” to change your residency for state tax purposes. And that’s true – you can’t just declare that you’re a Florida resident. But even if you do all the other things we’re recommending here, you’ll never convince a tax auditor from up north that you’re a Florida resident if you don’t present yourself as a Florida resident to the rest of the world. So, if you meet someone new, tell them you’re from Florida. If you’re filling out a form that asks for your address, use your Florida address. And update your Facebook page so that your Florida town is listed as your current home.

Auditors will look for any indication that you don’t really think of Florida as your primary and permanent home – don’t give them any ammunition.

Tell the State of Florida that you’re a resident, too. File a “Declaration of Domicile” with the clerk of circuit court in the Florida county where you live. (“Domicile” is a legal term that generally means the place that you intend to be your primary and permanent home.) There isn’t a standard, statewide form that you can use. Instead, each county will have its own version – as an example, click here for the Broward County form. 
 
Keep important personal items in Florida
Tax auditors know that most people keep prized personal possessions in their primary home. So, bring your most treasured items down to Florida for safekeeping to show that you consider the state to be your primary and permanent home. This includes all things that are near and dear to your heart, including photo albums, wedding dresses, family heirlooms, stamp or coin collections, works of art, rare books, and any other item that has sentimental value. Pets fall into this category, too. 
 
Socialize in Florida
To show that your life is now centered in Florida (i.e., that you’re a real Florida resident), join clubs, take up hobbies, volunteer and meet new people in the state. Tax auditors are going to question your Florida-resident credentials if you’re constantly heading back up north to socialize. You can keep your northern friends, but make new ones in Florida, too. (Invite your Yankee friends down to Florida for a week of winter sun and sand … they’ll love you for it!) If you’re already a member of a national organization like the Lions Club or VFW, change the address on file to your Florida address and attend meetings in Florida. 
 
Visit doctors, lawyers and CPAs in Florida
It can be hard leaving a family doctor up north that you’ve been seeing for decades and finding a new physician down in Florida. But you need to do just that if you want to convince a tax auditor that you’ve really settled down in Florida. The same goes for the dentists, lawyers, accountants, and other professionals you use in your summer state – you should replace them with new people in Florida.

It’s probably OK to see a specialist once in a while outside Florida, but your regular doctor (or other professional) should be in the Sunshine State. If you want to go to the extra mile, start seeing a barber or hair stylist in Florida, too. 
 
Do your banking in Florida
Even in today’s world where online banking is popular, tax auditors know that most people park their money in a bank near their home. So, if you’re claiming to be a Florida resident, you should move your money to a Florida bank. It can be a national bank – like Bank of America – but there should be a branch close to your Florida home where you can do your banking in person (including renting a safe deposit box). You’ll also want to make sure all bank statements are sent to your Florida address.

This advice extends to all your financial activities. Start working with Florida-based brokers, financial planners, insurance agents and the like. And, again, make sure all statements, payments and notices are sent to your home in Florida, including credit card statements. If you’re retired, have your Social Security checks or retirement plan distributions mailed to Florida or deposited into a Florida bank. 
 
Pay taxes as a Florida resident
Sure, there’s no state income tax in Florida, but that doesn’t mean Florida residents don’t pay other taxes. For example, you still have to pay federal income taxes as a Florida resident. So, when filing your next federal 1040, make sure you list your Florida address as your home address. You should also change your address on file with the IRS by submitting Form 8822.

As for Florida taxes, make sure you pay your local real estate taxes on time and in full. If you own a business, are self-employed, or rent out property in Florida, you might also owe personal property taxes. If you’re not paying these taxes as required, or any other Florida taxes levied on residents, your standing as a true Florida resident will be diminished in the eyes of the law. 
 
Apply for a Florida Homestead Property Tax Exemption
In addition to paying taxes in Florida, take advantage of the state’s tax breaks for residents. For example, if you own a home in Florida, apply for the state’s homestead property tax exemption. Not only could your home’s taxable value be reduced by as much as $50,000, but it’s further evidence of your status as a Florida resident. That’s a win-win!

To apply, submit Form DR-501 and all required documentation to the property appraiser in the Florida county where the property is located. You can also use the form to apply for property tax breaks available to disabled or blind persons, senior citizens, widow(er)s, veterans, and first responders.

If a similar tax break is available in your northern state, don’t claim it if it’s only available to residents. If you do, you’re telling your summer state that you are a resident there, not in Florida. 
 
Work in Florida
If you work at home or in multiple locations, make sure your employer lists your Florida address as your home of record. Paychecks and W-2 forms should be sent to Florida, and all your benefits should be based in the state.

If you’re an independent contractor, all invoices and other correspondence should include your Florida address. Payments and 1099 forms should be sent to Florida, too.

If you’re a doctor, lawyer or other professional, get licensed to practice to Florida. 
 
Move your business to Florida
If you own a business in your summer state, moving it to Florida will certainly help your case if your status as a Florida resident is challenged.

If moving your northern business to Florida isn’t possible, running it from Florida might be an option. However, business owners in Florida who are deeply immersed in their company’s operations up north can have a hard time establishing residency in Florida. Even if you’re running your business from a Miami Beach cabana, tax auditors in your summer state will see substantial involvement in the management of a business in their state as evidence of residency in that state. It will be weighed along with all other factors, but this type of evidence can persuade a court that you’re not really a Florida resident.

The degree of your involvement in the business’ day-to-day operations will be looked at closely. You don’t necessarily have to sell the business or completely relinquish your management role, but taking more of a “hands-off” approach will support your claim for Florida residency. 
 
Source: By Rocky Mengle, The Kiplinger Washington Editors
© Copyright 2019 2019 The Kiplinger Washington Editors