Naples Bonita Springs Estero Florida

Naples Real Estate Market Watch
February 2009

 Naples continues to post strong activity for closed sales. And what a difference a year makes!

The inset to the right is a 24 month picture of closed sales for single-family homes in all Naples geographic areas. The past 12 months shows a 35% increase over the previous 12 months in the average number of closed sales per month.

What's driving the sales activity? The decreased prices, of course!

Click the image to read the complete report and download trend charts.

Yesterday Palmira Golf and Country Club reported according to a press release posted on PRNewswire that documents were signed and converted the Golf Club to fully member owned. The long awaited deal is done.

In September of 2008 Parklands Development LP, Inc., was unable to negotiate the required bank fuunding to allow it to operate the Golf Club and Renaissance Center.

Sometime after that, the Renaissance Center - two swimming pools, restaurant, exercsie center, and other amenities, were taken over by the Master Property Owners Assiciation. Now, the Golf Club is fully member owned.

Palmira is a highly desireble developement and now that the fate of the Golf Club and all the amenities are fully know, I expect the pent up demand for property in Palmira to kick into action.

Learn more about Palmira Golf & Country Club Properties.

says the headlines in today's (Tuesday, 27-January) The News-Press.

And why wouldn't sales rise dramatically? After all, there is one single driver in today's real estate market - Price...aka bargains, steals, and deals. That's what is driving it, period. The article sighted statistics for Realtor assisted sales as:

Homes sold - 1,064 in December 2008 versus 432 in December of 2007. Increase: 146%

Median price - $106,900 in December of 2008 versus $215,200 in December of 2007. Decrease: 50%
The median price is the price at which half of the homes sold for less than that amount and half of the homes sold for more than that amount.

"Homes" in this case refer to single-family residences. Condominium sales posted very similar numbers - increase in sales 98% and median price decrease 24%.

If you think that it's just Lee County, it's not. Statewide in Florida, the Florida Associaion of Realtors reported that Realtor assited sales for December in all of Florida were 11,053, a 27% increase. The National Association of Realtors reported that sales nationwide for the same period rose 6.5%.

It is also clear that the sale of foreclosed properties along with some short sales is driving the median prices downward. In effect, it has turned the real estate market today, into that of properties priced below $300,000. However, the affect on higher-priced properties is two-fold. Sellers reluctant to reduce the listing price are finding that their properties sit on the market for a long time or, just never sell. Also, the prices have come down in the higher-priced category but, there is still room for more price reductions. Nevertheless, the deals are good in all segments. Shop carefully and bargain hard!

Lee County and I cover: Cape Coral, Fort Myers, Estero, Bonita Springs.

In you're wondering, the situation in Collier County is similar.

Collier County and I cover: Naples and Bonita Springs

This may not be new, but it is being used more and more these days - buying your retirement home now as an investment inside your IRA.

Many of us are watching our IRA accounts shrink and are wondering what will be there when you're ready to retire so you can buy the home you want where you want it. Instead of watching the traditional IRA investment languish waiting for the economic return, some people are using some of their funds (inside a self-directed IRA) to buy their retirement property now. The benefit is that you can take advantage of the Buyer's market now and buy while real estate prices are down and while there are good values to be had. Since it's a long-term investment you can be confident that it will grow over the long haul. You also have the benefit of a property that you can use for your own enjoyment right now or rent it to defray some carrying costs or any combination of both. Most importantly, it's yours and you will have it for retirement.

When retirement time comes, the market will be back and when you sell your primary residence you pocket and/or invest the capital for retirement income. You don't have to worry about buying in a higher-priced real estate market because you already made your purchase!

Another twist to this strategy is to not worry about finding and buying the final home you may want but to get into the real estate market with something now where you want to be. When prices go up, you will be selling for a profit to help purchase the final dream home. You also have the added benefit to live in your new location to determine where you would like to permanently settle.

To do this you will need an IRA trustee to hold the property for your benefit. There are several named companies that do this. You should consult with your financial advisor with regard to all aspects of this type of use for your IRA funds, the IRA rules and regualtions.

So reads the headlines of the market report press release issued by NABOR - Naples Area Board of Realtors - on Friday January 16 reporting on Collier County excluding Marco Island. The data and conclusions reported on supports my previous post with regard to the Naples. The previous post also includes the Bonita Springs and Estero markets.

In a separate article published today in the Bonita Daily News it was also reported that the Fort Myers area saw an  82 percent jump in home sales.

As you would expect with a jump in sales the inventory of available homes declined 5.3% and December marks eleven consecutive months of market improvment according to the press release. Additionally, it was reported, that the average days on market (DOM) reduced 23 percent to 156 in December 2008 versus the same period in 2007.

Key Statistics year-overo-year:

• Pending home sales increase 100%
• For properties less than $300,000 overall pending home sales increased 304%
• Single-family pending home sales increase 158%
• Condominium pending home sales increase 46% overall while condominium pending home sales for properties under $300,000 increase 165%

Based on my experience in addition to similar commentary in the press release it is generally agree the "season arrived early" this year. Real estate website statistics went through the roof in October breaking all records indicating buyers were out shopping. This turned to reality as eveidenced by the Decmber closed sales statistics.

If you have any questions or would like specific market information or help looking for that perfect property visit my website, begin your research and drop me a note!

You may find additional market reports and treand charts here

2008 Ends Up in Sales Volume

It's not too surprising that after two years of dismal sales volume in 2006 and 2007, compared to 2004 and 2005, we posted an increase in sales volume for 2008 - finally. Is it? All the reasoning and analysis that have been done and will go on for some time is reduced to, prices are down, inventory is up providing a great selection, and people are starting to buy.

Is this the bottom? This question usually refers to the bottoming of selling price which is directly related to amount of inventory. The answer, I believe, is yes and no. Not too long ago the inventory of homes at 2006 and 2007 selling rates indicates some 36 months worth of inventory on hand. Today, in both the Naples and Bonita-Estero market, there are 27 months and 26 months of inventory respectively. However, for the Naples market where there is sufficient volume to track, the inventory for homes below $300,000 represents 23 months while for homes above $300,000 there are 33 months supply. Therefore, in the below $300,000 market segment I believe prices have stabilized for the most part and in the segment above $300,000 we will still see price reductions in the future especially in the above $500,000 market segment.

All-in-all, I think this is very good news - sales are up, inventory is down. However, the economy is in turmoil and many are waiting on the sidelines still. Low interest rates are helping those with good credit scores and verifiable income. Cash buyers are in the best position. Given the performance of the stock market and retirement accounts I am now seeing people moving retirement investment money into self-directed accounts and purchasing property as a long-term investment now, but ultimately for their own use in retirement some tens years or so from now.

Visit my website for more detailed reports and market data.

For my friends in New England, especially northeast Massachusetts and southern New Hampshire, my heart goes out to you... I do feel your pain.

The photos to the right were taken in January of 2005 just six weeks or so from when we packed up and moved to southwest Florida! And yes, that's me on the ladder - again, and for the last time! - hacking the snow and ice dams off the roof. The second story is the real trick! The picture was taken in Andover, MA.

In the past few days I have spoken to clients in Salem, NH who just got power back after five days. Today I spoke with a collegue a little further north and they are still without power and don't know when it's likely to return.

They share generators in the neighborhood to keep the homes from freezing (you can do that with oil-fired furnace and hot water recirculators easily) and keep food in the refrigerator from spoiling.

Many homes in these area have deep wells for fresh water that run on 220v and the little generators just will not do it. I'm told of lines at the local gym not for the equipment but to take a shower and the "facility"!

They may be looking at blizzard this weekend on top of all that!

Best of luck to everyone in that affected area.

So says the headline of a press release issued by the Naples Board of Realtors on the Naples area real estate market statistics for Collier County excluding Marco Island.

Two key indicators

Overall pending sales continues to increase overall for single-family homes and condos. However, the pending sales increase for single family homes is most dramatic. I've been reporting on this for sometime now.

Average Days on Market (DOM) has decreased 20% year-over-year to now 169 days says the press release.

A VP for a local real estate firm is quoted as saying that there is a significant decrease in DOM for properties under $300,000. These "choice properties" are being sold at a "swift pace, which is a key change.

The median sales price decreased 25% over the past twelve months due to the tremendous increase in activity in the below $300,000 segment.

Key points highlighted:

• Overall Pending home sales up 54% year-over-year
• Overall Pending home sales for properties less than $300,000 increased 198% year-over-year
• Single-family pending sales increased 87% and in the below $300,000 segment pending sales increased 362% year-over-year
• Overall condo pending sales increased 20% year-over-year and the below $300,000 segment increased 91%

Anyway you look at it, real estate in the Naples area is selling. It's where many folks want to be now or in the future and there is no question that the buying climate has improved.

I've run similar numbers for the Bonita Springs and Estero real estate market. The general trend holds true.

Want the actual report? Go to my website and send me a note.

www.BobPisa.com

The Naples Area Board of Realtors (NABOR) issued their data for October 2008. For Overall Market Statistics, compared to the same period year-over-year:

Pending Sales: UP, 24.2%

Sales Volume of Closed Sales UP, 13.2%

Median Sold Price DOWN, 21.3%

Inventory UP, 1.2%

Average Days On Market (DOM) DOWN, 11.7%

But... the median sold price for single-family homes in the following price categories:

$300K - $500K UP, 5%

$500K - $1M UP, ...ever so slightly

Prices in the two categories above $1M were down also, but not by much. The overall market statistics are being dragged down, for pricing, by the less than $300K category which dropped some 26%. This category, however, lifted the sales volume overall data with a 264% increase. All this is largely due to short sales and foreclosures.

Does this signal the bottom of the market? That depends. As you see, real estate is not just one market. If you are looking in the greater than $300K range for single-family homes, you might the market is turning.

What do you think?

The report with all the data is available at www.BobPisa.com

Click here for Naples report.

Click here for Bonita Springs and Estero report.

Naples single-family pending home sales trend

Make no mistake, people want to buy Naples and the surrounding Bonita Springs and Estero area. The pending home sales trends indicates how many home are under contract waiting to close. True to form, the actual closed sales track it fairly well as one might expect.

In October, however, the closed sales activity did not. The economy, the stock market, the mortgage/banking debacle, and the pending elections all appear to have stalled a few recently. This is a common phenomena during times of uncertainty - do nothing.

I'm confident that after the elections and with the stock market appearing to stabilze somewhat, that we will see the closed sales activity ramp up in concert with the pending sales.

Please visit www.BobPisa.com