Metas
Estero Condo Market Report for November 07
New Listings:
A total of 64 Estero condos were listed in November 2007. When compared to November 2006, the number of condos listed was 78 – a drop of 14 or roughly 18%. In November 2005, 94 Estero condos were listed – a reduction of 30 condominiums or approximately 32%. The lower levels of listings is largely due to less condos being placed on the market by flippers that contracted for pre-construction in 2005 and 2006.
Median Price Paid:
In the month of November the median price paid for a condominium in the Estero area
Estero Home Market Report for November 07
New Listings:
A total of 101 Estero homes were listed in November 2007. When compared to November 2006, the number of homes listed was 76 – an increase of 25 or 33%. In November 2005, 92 Estero homes were listed – an increase of 9 or about 10%. The increase between 2007 and 2006 can largely be attributed to the volume of homes coming on the market in the Bella Terra neighborhood of Estero, which were built in 2006 and 2007.
Median Price Paid:
In the month of November the median price paid for a home in the Estero area was $377,500. In November 2006, the median price paid a home in Estero was $389,750 or a reduction in the median price of 3%. Looking at November 2005, the median price paid was $519,000 – the reduction in the median price is 27%. Significantly priced homes were sold in Grandezza, Wildcat Run, and Bella Terra during 2005.
Closed Sales:
The closed sales for homes in Estero during November were 21. In November 2006, the number of closed was 18 and 22 in November 2005; the respective changes are an increase of 2% and a reduction of 4%. The increase in the number of closings over 2006, it a good sign considering how the financing programs have become more restrictive. The volumes have remained fairly stable over the three years – this might reflective of the demand for homes in the Estero area. In addition, this is a positive sign considering the recent contraction of financing.
Pending Sales:
The volume of pending sales came in at 21 contracts. The 21, is an increase of about 17% from 2006’s 18, but 4% below 2005’s 22 pending sales. Looking at the pending sales volumes for the three years is rather interesting, since pending sales appear to be stable in the Estero area. As with the closed sales volumes, there could a positive signal due to the reduction of “liberal” loan programs and more restrictive underwriting guidelines.
Currently, there are about 530 homes available for sale in the Estero area, representing about 31 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market. Estero should be strongly considered by prospective buyers of single family homes.
Bonita Springs Condo Market Report for November 07
New Listings:
A total of 204 Bonita Springs condominiums were listed in November 2007. When compared to November 2006, the number of condos listed was 245 – a reduction of 41 units or 17%. In November 2005, 191 Bonita Springs condos were listed – an increase of 13 units or about 7%. The reduction in the volume of new listings between 2007 and 2006 can be attributed to condominiums completed and purchased or attempts to assign contracts by investors in 2006. The increase from 2005 to 2007 was caused primarily by high-rise condominiums in Bonita Bay - Esperia South, Esperia North, and Tavira.
Median Price Paid:
In the month of November the median price paid for a condominium in the Bonita Springs area was $375,000. In November 2006, the median price paid a condo in Bonita Springs was $370,000 or an increase in the median price of 1%. Looking at November 2005, the median price paid was $377,500 – the reduction in the median price is 1%.
Closed Sales:
The closed sales for condominiums in Bonita Springs during November were 33. In November 2006, the number of closed was 25 and 66 in November 2005; the respective changes are an increase of 44% and a reduction of 50%. The increase in the number of closings over 2006, it a good sign considering how the financing programs have become more restrictive. The volume reduction between 2007 and 2005, is related to the cooling of the overall real estate market, as well as, the changes in the mortgage arena.
Pending Sales:
The volume of pending sales came in at 41 contracts. The 41, is an increase of about 78% from 2006’s 23, but 43% below 2005’s 72 pending sales. Looking at the pending sales volumes for the three years is rather interesting on the surface, however, one must remember in September 2005 the real estate market was starting to be a more balanced market, rather than seller’s market previously and the current buyer’s market. As with the closed sales volumes, there could a positive signal due to the reduction of “liberal” loan programs and more restrictive underwriting guidelines.
Currently, there are about 1,300 condos available for sale in the Bonita Springs area, representing about 35 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market.
Bonita Springs Home Market Report for November 07
New Listings:
A total of 199 Bonita Springs homes were listed in November 2007. When compared to November 2006, the number of homes listed was 173 – an increase of about 15%. In November 2005, 188 Bonita Springs homes were listed – an increase of about 6%. The volume of new listings showing an increase over 2006 and 2005, but could be related to the construction lag for new homes in the Lee County area.
Median Price Paid:
In the month of November the median price paid for a home in the Bonita Springs area was $572,987. In November 2006, the median price paid a home in Bonita Springs was $455,000 or an increase in the median price of about 26%. Looking at November 2005, the median price paid was $544,500 – the increase in the median price is about 5%. The increase in the median price is due largely to due to expensive sales occurring in Mediterra Golf and Country Club, The Brooks, and Bonita Bay. These 6 sales in excess of $700,000 represents about 38% of the home sales for November.
Closed Sales:
The closed sales for homes in Bonita Springs during November were 16. In November 2006, the number of closed was 17 and 56 in November 2005; the respective reductions are about 6% and 71%. The reduction in the volume of closed sales appears to be bad news; however, considering the reduction in “liberal” loan programs and more restrictive underwriting criteria, this could be somewhat positive, when comparing 2006 and 2007 volumes.
Pending Sales:
The volume of pending sales came in at 45 contracts. The 45, is a reduction of about 4% from 2006’s 47, but 12% below 2005’s 51 pending sales. Looking at the pending sales volumes for the three years is rather interesting on the surface, however, one must remember in September 2005 the real estate market was starting to be a more balanced market, rather than seller’s market previously and the current buyer’s market. As with the closed sales volumes, there could a positive signal due to the reduction of “liberal” loan programs and more restrictive underwriting guidelines.
Currently, there are about 1,200 homes available for sale in the Bonita Springs area, representing about 32 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market.
Naples Condo Market Report for November 07
Big drop in median price paid for Naples condos - good news for condo buyers, but not very good for sellers of condominiums.
New Listings:
A total of 767 Naples condominiums were listed in November. When compared to last November, the number of condos listed was 1,003 – a reduction of about 23%. In November 2005, 815 condos were listed – reduction of about 6%. Hence, the rate of new listings is slowing, at least looking at November. Could a trend be developing? The reduction in condominiums coming on the market will eventually have an impact on the number of months of condominium inventories available for sale.
Median Price Paid:
In the month of November the median price paid for a condo in the Naples area was $250,000. In November 2006, the median price paid a condo in Naples was $321,250 or reduction in the median price of about 22%. Looking at November 2005, the median price paid was $379,000 – the reduction in the median price is about 34%. The reduction in median price is most likely due to condos being sold in communities that were heavily investor owned and apartment to condominium conversions.
Closed Sales:
The closed sales for condos in Naples during November were 100. In November 2006, the number of closed was 108 and 247 in November 2005; the respective reductions are about 7% and 60%. The reduction in the volume of closed sales appears to be bad news; however, considering the reduction in “liberal” loan programs and more restrictive underwriting criteria, this could be somewhat positive, when comparing 2006 and 2007 volumes.
Pending Sales:
The volume of pending sales came in at 131 contracts. The 131, is a reduction of about 5% from 2006’s 138, but a 36% below 2005’s 206 pending sales. Although the drop from 2005 levels is large, the drop from 2006 can be considered positive due to the elimination of “liberal” loan program and stricter underwriting guidelines.
Currently, there are about 5,300 condominiums available for sale in the Naples area, representing about 35 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market.
Naples Home Market Report November 07
Naples Florida Home Sales Market Report - Nov. 2007
There is both good news and bad news for single family homes sold in the Naples area during the month of November 2007.
New Listings:
A total of 832 Naples homes were listed in November. When compared to last November, the number of homes listed was 885 – reduction of about 6.0%. In November 2005, 908 homes were listed – reduction of about 8.4%. Hence, the rate of new listings is slowing, at least looking at November. Could a trend be developing? The reduction in homes coming on the market will eventually have an impact on the number of months of home inventories available for sale.
Median Price Paid:
In the month of November the median price paid for a home in the Naples area was $405,000. In November 2006, the median price paid a home in Naples was $435,000 or reduction in the median price of about 7%. Looking at November 2005, the median price paid was $471,000 – the reduction in the median price is about 14%. The reduction in median price is most likely due to homes being sold in areas where sub-prime mortgages were used to finance the purchase.
Closed Sales:
The closed sales for homes in the Naples during November were 118. In November 2006, the number of closed was 152 and 295 in November 2005; the respective reductions are about 22% and 60%. The reduction in the volume of closed sales appears to be bad news; however, considering the reduction in “liberal” loan programs and more restrictive underwriting criteria, this could be somewhat positive.
Pending Sales:
The volume of pending sales (homes where the seller accepted a buyer’s offer) came in at 178 contracts. The 178, is a reduction of about 3% from 2006’s 184, but a whopping 26% below 2005’s 243 pending sales. Although the drop from 2005 levels is large, the drop from 2006, not good, is positive due to the elimination of “liberal” loan program and stricter underwriting guidelines.
Naples Real Estate News - 12/21/07
MORTGAGE DEBT FORGIVENESS - Americans who lose their home to foreclosure or bankruptcy no longer have to pay income taxes on any debt forgiven by the bank. A bill signed by President Bush yesterday voids the Internal Revenue Service practice of considering the bank’s write-off on the loan a taxable form of income for the family that already lost a home.
PRIVATE MORTGAGE INSURANCE - President Bush signed legislation yesterday that extends the Internal Revenue Service tax deduction for private mortgage insurance (PMI) premiums. Qualified borrowers get the deduction for mortgage originations between 2007 and 2010.
MORTGAGE RATES - Mortgage rates edged up for a second straight week and 30-year loans reached their highest level, 6.14 percent, in a month, according to Freddie Mac’s weekly nationwide survey.
2007’s TOP REAL ESTATE STORIES - What were the top real estate stories of 2007? The slowing home sales market heads the list, followed by Florida-specific concerns – real estate taxes and homeowners insurance – along with troubles in the mortgage market and, finally, a proposed Hometown Democracy constitutional amendment that could go before voters in 2008. Here are the issues that shaped Florida’s real estate world in 2007 and a glimpse at what the New Year holds.
For more information about Hometown Democracy you may want to look at these resources:
Tommy at Sticks of Fire: a Tampa blog writes: "I’m sure you have heard of Hometown Democracy. Citizens tired of unchecked development and rampant growth have put together a constitutional amendment to make sure that nearly each and every property improvement is voted on by citizens like you. …."
J. Miller at Daytona Beach News - Journal - writes "The adversaries in the battle over changing Florida’s rules for handling growth make no secret of their disdain for one another–or the fact that they’re in a no-holds-barred campaign. …."
"For the next many months, the phrase Hometown Democracy is likely to pop up in the news and on many streetcorners as proponents of the initiative seek to change the state constitution to require residents to vote on land-use changes. Florida was once ruled by insider deals until the Growth Management Act imposed a more scientific regimen…" You read more on the It’s Your Time blog.
Naples Real Estate News - 12/20/07
REAL ESTATE TAXES - Florida House Speaker Marco Rubio is speaking around the state in support of a citizens’ constitutional amendment that, if passed, would cap property taxes at 1.35 percent of taxable value. “It’s a grassroots campaign and I am absolutely committed to helping however I can,” Rubio said.
HOMEOWNERS INSURANCE
Florida Governor Charlie Crist has asked three trial lawyers to review the property insurance industry’s compliance with the 11-month-old reform plan and recommend whether to sue the insurers for failure to deliver the 24 percent rate reduction it promised. Meanwhile, Allstate is pursuing its request for a rate hike.
MORTGAGES
What if you make a law and no one enforces it? The Federal Reserve proposed changes this week to guard against deception and fraud in mortgage lending, but the two biggest sources of abuse – mortgage brokers and non-bank lenders – were, and are, regulated at the state level.
FANNIE MAE
It’s a real estate conspiracy theory: The former Chief Executive Officer of Fannie Mae claims the Bush administration helped orchestrate an accounting scandal that cost him his job. He describes in court documents an unofficial White House task force dubbed “Noriega” charged with weakening Fannie Mae and driving down its stock price.
Naples Real Estate News - 12/19/07
UNDERSTANDING REAL ESTATE TAXES - The latest research provides a better understanding of Florida’s real property tax system by analyzing the various property owner-groups – residential homestead, residential non-homestead, commercial, industrial, agricultural and others – in 10 representative counties, including Bay, Citrus, Dade, Flagler, Hillsborough, Lafayette, Leon, Okaloosa, Orange and Palm Beach. The study also reviews and analyzes the four major components included in the constitutional amendment that Florida voters will consider at the ballot box in January. Real estate tax study.
HOMEOWNERS INSURANCE - Cheaper insurance rates? Maybe. A Florida rule change that received preliminary approval yesterday would enable foreign-based backup insurance companies to better compete with national insurers. Regulators hope that the increased competition will bring lower insurance rates.
MORTGAGES - The Federal Reserve endorsed new rules Tuesday that would restrict lenders from penalizing risky borrowers who pay loans off early, require lenders to make sure money is set aside to pay for taxes and insurance, and bar lenders from making loans without proof of a borrower’s income.
FORECLOSURES - A surprising new monthly report suggests that United States home foreclosures declined 10 percent in November. “This could indicate that foreclosure activity has topped out for the year,” says RealtyTrac Chief Executive Officer James Saccacio. But “the true test of whether this ceiling will hold will come at the beginning of next year.” Florida, with one filing for every 282 households, ranked second nationwide. Although Florida ranks second - prospective buyers need to assess the foreclosures within a particular town, city or county as each one does have higher or lower foreclosures than another area.
Naples Real Estate News - 12/18/07
MY SAFE FLORIDA HOME - The My Safe Florida Home program has spent the majority of its money, despite being short of its target goal of 400,000 free hurricane inspections.
SUBPRIME MORTGAGES - United States Treasury Secretary Henry Paulson says the Bush administration remains opposed to any type of government bailout when it comes to dealing with the mortgage crisis. “I think what we need is to help the markets work the way they’re intended to work and avoid those foreclosures that are preventable,” Paulson says.
FORECLOSURES - What’s the primary cause of foreclosures? So far, evidence seems to point to the usual culprits: job loss, sickness and divorce, instead of ARM resets. Data from Countrywide Financial Corp. shows that almost 60 percent of the lender’s loan defaults in the first 10 months of this year were due to customers having their income cut; just under 2 percent resulted from ARM payment adjustments.
IS EVERYBODY HAPPY? - Despite turmoil in the mortgage market in 2007, borrowers’ overall satisfaction with the mortgage lending industry has remained steady since 2006, says J.D. Power and Associates’ 2007 Primary Mortgage Origination Study. The study measures customer satisfaction with application approval, interaction with loan representatives, closing and problem resolution. “While it’s true that borrowers with weaker credit and those seeking larger ‘jumbo’ loans experience longer approval times and requests for more documentation, satisfaction has remained steady among the 75 percent of mainstream borrowers with good credit applying for moderately sized loans,” says Tim Ryan, senior director of the mortgage practice at J.D. Power. The study concluded that consumers were more satisfied when they worked directly with the lender rather than through a broker. It also found that customers who demand clear communication from their lender are more likely to get it. And customers who supply required documentation upon application have a smoother loan process. The overall mortgage lender satisfaction ranking was based on a 1,000-point scale:
Wachovia, 827
SunTrust Mortgage, 818
Bank of America, 760
National City Mortgage, 759
CitiMortgage/Citibank, 753
Chase, 752
Industry Average, 750
Wells Fargo, 749
Countrywide Home Loans, 745
GMAC Mortgage, 744
ABN AMRO Mortgage, 740
American Home Mortgage Corp., 736
WaMu, 733
First Franklin, 595
HOUSING STARTS - Housing construction fell in November and single-family activity dropped to the lowest level in more than 16 years, according to numbers released this morning by the U.S. Commerce Department.
PROPERTY MANAGEMENT - Turmoil in local housing markets could move to the rental market in the form of stalled apartment construction, growing number of renters and record-high rents. But many recent investment homebuyers find they still cannot charge enough rent to cover the mortgage.