Bonita Bay Real Estate News | May 2021

Bonita Bay Real Estate News | May 2021

Last year on May 1, there were 102 listings in Bonita Bay. As of May 1, 2021, there are 18 active listings in our area multiple listing service (MLS) in Bonita Bay; 9 less than last month. There are 4 single-family homes ranging in price from $1,200,000 to $3,655,000. The average list price is $1,992,500 and the average days on the market is 62. The combined days on the market is 146. In the carriage, mid-rise, townhouse, and attached villa market, there is 1 active listing in Bonita Bay for $398,000. In the high-rise market, there are 13 active listings in Bonita Bay ranging in price from $1,195,000 to $8,200,000. The average list price is $3,131,608 and the average days on the market is 271. The combined days on the market is 284.

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 90 sales with an average sales price of $391,893; these condos were on the market an average of 90 days; combined days on the market is 167.
  • During the 12 months previous, there were 75 sales with an average sales price of condominiums was $394,250; these homes were on the market for 76 days; combined days on the market is 132.
 
BONITA BAY HIGH-RISES
  • During the last 12 months, there were 86 sales with an average sales price of $1,352,103; these homes were on the market an average of 153; combined days on the market is 242.
  • During the 12 months previous, there were 50 sales with an average sales price of $1,345,929; these homes were on the market for an average of 186 days; combined days on the market is 250.
 
SINGLE-FAMILY BONITA BAY HOMES
  • During the last 12 months, there were 79 sales with an average sales price of $1,664,270; these homes were on the market an average of 105 days; combined days on the market is 178.
  • During the 12 months previous, there were 61 sales with an average sales price of $1,194,987; these homes were on the market for an average of 111 days; combined days on the market is 194.
 
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.

Meet Ed Gongola and discover how he can help you with his concierge style of service when buying or selling your home.


May 2021 Market Update

BUYING ACTIVITY UNABATED
“I’ve never seen a market like this one,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “In the first four months of 2021, we had 600 more closings than the first four months of last year. What makes the current real estate activity different than what we experienced during the bubble years of 2004-05 is that this market is healthier. More buyers are end-users rather than investors, and lenders have stricter guidelines in place. In April 2021 we had 442 pending sales with 16 percent above $1 million. That’s about 25 percent above the “norm”. (Last April we had 151 pending sales, and in April 2019 we had 353.) Many winter visitors have gone back home while buying activity continues to swirl. Heightened buyer activity is the new norm as we head into the summer season.” 
 
BONITA / ESTERO: CLOSINGS ARE UP
March 2021 saw a 21.7 percent increase in new listings, but not enough to satisfy current demand, as there was a 61.6 percent increase in closed sales and a 145.8 percent increase in pending sales. March’s supply of inventory continued to shrink with an 86.7 percent decrease versus the previous month, resulting in just .8 months’ supply of inventory – a very low number not seen in several years, perhaps a decade. In comparing March 2021 with March 2020, the median closed sales price was up 12.1 percent to $360,000. March’s active listings stood at 329 available properties. 
 
NAPLES AREA: MARCH RECORD SALES VOLUME
March’s historic activity included 1,851 closed sales, $1,582,474,997 in total sales volume, and 60,147 showing appointments. This makes March 2021 the highest performing month on record over the last 13 years of tracking. It was also the first month in several years where there were more reported price increases than decreases. Median closed prices increased 12.2 percent to $415,000 (highest on record since 2008) from $370,000 in March 2020. In March 2021, there were just 1,819 homes in inventory (lowest since 2014), which was a 73.2 percent decrease from 6,795 homes in inventory in March 2020. This level of demand is expected to continue for a few months longer. 
 
MARCO ISLAND AREA: SALES REMAIN STRONG
The Marco Island Area Assoc. of Realtors® reported that April 2021 compared to April 2020 showed the following: Total inventory (327 properties) was down by 77.35 percent and closed sales (374 properties) were up by 157.93 percent with a dollar volume ($288,879,391) that was 227.37 percent higher. The April median sales price was $561,250, which is 18.16 percent higher than April 2020. 
 
FLORIDA: PRICES UP, INVENTORY TIGHT
Condos/Townhomes lead the Spring sales surge with some of the highest numbers for closed sales in years. The statewide median sales price for single-family existing homes was $327,000 up 18.9 percent from the previous year, and for condo-townhouse units was $242,000, up 15.2 percent. In looking at March’s eye-popping positive numbers for new pending sales – up 48.2 percent for single-family homes and 126.4 percent for condos and townhouses – Florida Realtors Chief Economist Dr. Brad O’Connor noted that new pending sales…were considerably down last March. “That’s the reason these year-over-year numbers are so huge,” he said. “It might be more useful, then, to compare this March’s new pending sales to those from two years ago, in March 2019. And when we do that, we find that new pending sales were up by a very satisfying 14 percent for single-family homes and 47 percent for condo-townhouse properties.” 
 
USA: PENDING SALES UP 1.9 PERCENT
Pending home sales increased in March, snapping two consecutive months of declines. Year-over-year, contract signings jumped 23.3 percent, with the difference due in large part to the pandemic-induced lockdown in March 2020. NAR’s chief economist Lawrence Yun said, “With mortgage rates still very close to record lows and a solid job recovery underway, demand will likely remain high.” Existing-home sales are projected to rise by 10 percent in 2021 to reach 6.2 million in 2021, while the median home price is anticipated to increase by 9 percent in 2021 to $323,900. Housing starts are forecasted to reach 1.6 million in 2021 and 1.7 million in 2022. Mortgage rates are expected to modestly climb higher over the next two years, to 3.2 percent in 2021 and 3.5 percent in 2022, as inflation rises due to a stronger economy and higher fiscal spending. The economy is anticipated to expand 4.5 percent in 2021. 
Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®. 

Fla.’s Housing Market: Sales and Prices Up, Inventory Tight in March

ORLANDO, Fla., April 22, 2021 – Florida’s housing market continues its momentum in March, with more closed sales, higher median prices, more new pending sales and increased pending inventory compared to a year ago, according to Florida Realtors® latest housing data. The coronavirus was first detected in Florida on March 1, 2020.

“Even as we continue to deal with the pandemic and the real impact that COVID-19 has had on our lives, this spring is very different from what we saw last year,” said 2021 Florida Realtors President Cheryl Lambert, broker-owner with Only Way Realty Citrus in Inverness.“Intense buyer demand, combined with the high level of home sales sparked by very low interest rates, continue to reduce inventory levels, which is challenging for potential homebuyers. Due in part to this extreme shortfall of homes for sale relative to high demand, home prices keep rising, which also impacts the availability and affordability of housing options, especially for first-time buyers.”
 
Closed sales of single-family homes statewide in March totaled 32,819, up 23.3% year-over-year, while existing condo-townhouse sales totaled 16,518, up 52.6% over March 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
 
Spring buying season is back — and we’re seeing some of the highest numbers for closed sales in years, with the condo/townhome category leading the way.
The statewide median sales price for single-family existing homes was $327,000 up 18.9% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $242,000, up 15.2% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
 
Florida’s housing market is off to a strong start for this year’s spring buying season, according to Florida Realtors Chief Economist Dr. Brad O’Connor. However, he explained that the rate of sales growth in the condo-townhouse category continues to “steal the show” – its year-over-year sales growth (up 52.6% this March) has outpaced single-family home sales since last August, even though condo and townhouse sales were hit particularly hard early in the pandemic.
 
Why are condo and townhouse sales increasing so much relative to single-family home sales?
 
“For one thing, there is just so little single-family inventory available, especially in more affordable price ranges,” O’Connor said. “We have a very large population group, the millennials, who have moved into their prime home-buying years. However, in recent years, builders have not been building the classic single-family detached starter homes that young American families have long dreamed of one day owning – therefore, there aren’t enough of these homes available for resale to meet the overwhelming level of demand. Any that are listed frequently have bidding wars that price out many young prospective buyers.
 
“Increasingly, these buyers are giving up on single-family homes and are turning to attached condo and townhouse units instead. Even though these buyers might have had their hearts set on a single-family home, they’re realizing mortgage rates aren’t going to remain this low forever, and they don’t want to wait until they’re well into their 40s or 50s to start building up home equity. More and more, they’re seeing that condos and townhouses are the properties that give them the best opportunity to do that right now.”
 
In looking at March’s eye-popping positive numbers for new pending sales – up 48.2% for single-family homes and 126.4% for condos and townhouses – Chief Economist O’Connor noted that new pending sales were the first statistic to feel the brunt of the pandemic last year, and so were considerably down last March.
“That’s the reason these year-over-year numbers are so huge,” he said. “It might be more useful, then, to compare this March’s new pending sales to those from two years ago, in March 2019. And when we do that, we find that new pending sales were up by a very satisfying 14% for single-family homes and 47% for condo-townhouse properties.”
 
On the supply side of the market, inventory (active listings) remained constrained in February. Single-family existing homes were at a very low 1.2-months’ supply while condo-townhouse inventory was at a 2.8-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.08% in March 2021, significantly lower than the 3.45% averaged during the same month a year earlier.
 
March 2021 reports
 
Source: Florida Realtors®

March Home Sales Volume for Naples Hits Record High

Naples, FL (April 23, 2021) – Records were broken in March, but “don’t call Guinness just yet!” say broker analysts reviewing the March 2021 Market Report, released by the Naples Area Board of REALTORS®(NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The analysts are a small contingency of leaders who represent the area’s top real estate brokerage firms and meet monthly at NABOR® to interpret area housing market statistics. The group’s analysis of activity last month confirmed that March broke records; but celebrations to commemorate the month’s record high statistics should be postponed because these broker analysts also agree that our market is probably not done breaking records for the year.
 
According to the report, March’s historic activity included 1,851 closed sales, $1,582,474,997 in total sales volume, and 60,147 showing appointments. This makes March 2021 the highest performing month on record over the last 13 years (the span of time NABOR® has tracked key metrics reflecting the area’s housing market activity).
 
March was also the first month in several years where there were more reported price increases than decreases. Median closed prices in March increased 12.2 percent to $415,000 (the highest median price increase month/month on record since 2008) from $370,000 in March 2020. In March 2021, there were just 1,819 homes in inventory (the lowest it has been since 2014), which was a 73.2 percent decrease from 6,795 homes in inventory in March 2020.
 
“Appreciation values have not increased dramatically in all price ranges,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “Most of the high appreciation that’s driving median and average closed prices up in recent months is in the $2 million and over market.”
 
Pending sales (homes under contract) activity in March also broke records, as seen in the 152.7 percent spike to 2,469 pending listings from 977 pending listings in March 2020. However, broker analysts were quick to remind each other that a high number of sales during the second half of the month last year were lost as we were in a pandemic lockdown. Despite last March’s COVID-19-related market anomaly, this March’s pending sales still eclipsed pending sales activity reported in any March over the last eight years.
 
“This is a challenging time for buyers in Naples,” said Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, “and why it’s extremely important they work with a local REALTOR® whose experience and expertise can guide them through the process.”
 
Fioretti is confident buyers can improve their chances of purchasing the property they want by being well-prepared as they enter this competitive market. She and several broker analysts advise buyers take the following steps prior to making an offer:
  • Get a mortgage pre-approval
  • Be ready to make a competitive offer
  • Be available to view a home at the seller’s convenience
  • Confirm that your agent has activated your profile in the Southwest Florida MLS, and make sure the information is accurate so you can be matched with new listings as soon as they become available
  • Stay connected and respond quickly to your agent’s requests
  • Be ready to make up the difference between the appraised value and the sale price if financing your home
  • Don’t fall in love with just one house: Have a second and third choice in mind in case you miss out on your first choice
  • If your favorite home choice goes pending with another buyer, make a back up offer anyway! Often, the first buyer backs out and you become the primary. You can continue shopping for a home and terminate the back-up contract at any time before you become the primary
  • Rely on your REALTOR® for advice concerning escalation clauses and contingency matters
  • Pay with cash to be most competitive, if possible, and avoid the mortgage underwriting process
The NABOR® March 2021 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: 
 
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., pointed out that closed sales in March left buyers in April with a 1.6 month supply of homes. For perspective, the National Association of REALTORS® considers a six-month supply of housing a balanced market. However, Hughes was quick to also remark that “depletion of inventory is not due to a lack of sellers, as new listings have been steady over the past several years.” According to the report, new listings have been hovering around 1,500 a month for the last decade. In March, new listings even increased 32.5 percent to 1,670 new listings from 1,260 new listings in March 2020. “With limited new construction options, buyers are stripping our resale inventory,” said Hughes, “especially in the high-end market.”
 
The March Market Report showed remarkable closed sales performance in the condominium market during March too, which had a 71.6 percent increase in sales to 1,021 closed sales from 595 closed sales in March 2020. Closed sales of single-family homes over $2 million also increased 68.4 percent in March. Geographically, closed sales of condominiums in Central Naples rose 118.3 percent in March, while the average sale price for single family homes in Central Naples increased 38.4 percent to $901,807 from $651,370 in March 2020.
 
“Sellers are raising prices and multiple offers are still coming in,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “This is because inventory is limited, and more sellers are realizing now is a good time to place their home on the market and get top value in the current market conditions!”
 
Broker analysts predict the level of demand experienced in March is sustainable and should be expected to continue for the next few months, or longer. “Season was disrupted this year because many people elected to hold off relocating until they were fully vaccinated,” added Huskey. “Agents also report that many seasonal visitors are staying longer than in previous years, possibly because they can afford to wait in anticipation of more homes becoming available in the luxury market. I believe we’ll continue to see more newcomers from northern states looking for homes in the high end in the coming months. Beyond that, and as we enter the summer season, we might begin to see a second wave of international buyers entering our market as travel restrictions begin to relax.”

View March 2021 Market Statistics

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.

Survey: Homeowners Want More Kitchen Storage

Kitchen storage is a top priority among renovating homeowners, according to the 2021 U.S. Houzz Kitchen Trends Study, based on a survey of more than 2,000 homeowners either planning or in the midst of a kitchen remodel.

Many of the surveyed homeowners upgraded kitchen cabinets, either replacing them or refacing older ones. But the percentage adding or upgrading pantry space is also rising. Nearly half of homeowners upgraded pantry cabinets, and one in eight added a walk-in pantry – both up compared to last year’s survey. The focus remained heavily on adding storage in the kitchen, while other upgrades like kitchen light fixtures and appliances decreased over this past year, the study found.
 
Additional highlights from Houzz’s kitchen study:
  • Bolder island colors: 41% of renovators differentiated their island cabinet color from the colors in the rest of the kitchen. Blue and gray are top choices for nearly half of homeowners with contrasting island cabinets. However, only 13% chose these colors for their main wall cabinetry.
  • Added built-ins: Cabinetry renovations tended to include built-in specialty organizers, drawers or trays. The most popular kitchen organizers are for cookie sheets and spices. The most common specialty drawers are pullout waste or recycling drawers. More than a third of kitchen renovations also included specialty shelving trays, such as revolving trays (such as Lazy Susans) or pullout or swing-out trays.
  • Not so open: The number of homeowners that created an open concept floor plan from their kitchen to other spaces in the home dropped significantly over the past year (53% in 2019 to 43% in 2021). But one in five homeowners opened up their kitchen to outdoor space (22%).
  • Appliances added to the island: Nearly two-thirds of kitchen-renovating homeowners added an island, and more than half added an appliance to the island. The most popular appliances within the island are a dishwasher and microwave.
  • Hardwood appeal wanes: Hardwood flooring dropped from the top choice for flooring to number 2, behind ceramic or porcelain tile this year. Vinyl continues to grow more popular: 19% chose vinyl or resilient flooring last year, up 5 percentage points compared to 2019.
  • Median expenditures: The median expenditure on a major kitchen remodel – in which all the cabinets and appliances are replaced – was $35,000 last year. The median spend for a minor remodel is about $8,000.
 
© 2020 Florida Realtors®



 
Why Chose Me as Your REALTOR®?
To learn more about me and my real estate business and Bonita Bay real estate specifically, 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.