Metas
Naples Real Estate News - 01/31/08
REAL ESTATE TAX AMENDMENT - Florida voters sent a loud message Tuesday: We want lower property taxes. But are more tax cuts likely? It’s too early to know, but a couple things could happen. The state’s tax panel, for example, is considering a repeal of those property taxes that pay for schools, reducing taxes by about 40 percent, and replacing them with a sales tax on many services.
INTEREST RATES - The Federal Reserve delivered powerful new relief to people and businesses squeezed by the ailing economy, cutting interest rates ever deeper – by an additional half-point – in an effort to avert or soften the blow of a recession.
HOME SELLERS - Property owners who decide not to sell and, instead, refinance at today’s very attractive interest rates may have a shock in store: “When your home is on the market or has been on the market, generally, you’re not going to be allowed to get a new mortgage,” says Keith Gumbinger, vice president of New Jersey-based HSH Associates, a mortgage-industry publisher.
LOCAL TAX DOLLARS - Is your local government spending twice as much as it did five years ago yet crying that it’s poor? Or have local officials been wise caretakers of your tax dollars? In an effort to educate Floridians about their own local government income and spending, Florida Chief Financial Officer Alex Sink has announced the launch of “Your Local Government Dollars and Cents,” which can be found on her Web site at www.MyFloridaCFO.com . It gives Floridians easy access to their local government’s revenues andexpenditures. “I encourage every Floridian to use this tool and get more involved in how their local tax dollars are spent,” Sink says. “With governments actively cutting their budgets, it is essential that Floridians make it clear what their priorities are for their communities.” This new tool allows you to search by city, county or special district for a variety of revenue information including: ad valorem taxes, grants, fees and fines. You can also look up a local government’s expenditure information, including amounts spent on schools, transportation, public safety, general government and more. You can create reports comparing governments, revenues and expenditures, and electronic data is available by year from 1993 through 2007. Since 1973, Florida law has required the state Department of Financial Services to collect this financial information from local governments. If you’re also interested in revenue and expenditures data for local school districts, that information can be found at Florida’s Department of Education, according to Sink.
Where Are The Foreclosures
Many potential buyers in Naples real estate market are looking for possible short sales, pre-foreclosures, or foreclosed properties. Their search begins with reading that the state of Florida is one of the states with the highest number of foreclosures.
Real estate is local and just as it is local, not all localities have a large number of foreclosures.
One well known website as of earlier today shows a total of 174,310 distressed properties (pre-foreclosures and forecloses).
But the question remains where are these distressed properties located. Doing some research by county the following information was obtained:
| County | Number | % of Total |
|---|---|---|
| Miami-Dade (Miami area) | 22,051 | 12.7% |
| Broward (Ft. Lauderdale area) | 19,699 | 11.3% |
| Lee (Ft. Myers area) | 12,758 | 7.3% |
| Palm Beach (West Palm Beach area) | 10,817 | 6.2% |
| Hillsborough (Tampa area) | 10,070 | 5.8% |
| Orange (Orlando area) | 8,319 | 4.8% |
| Pinellas (St. Petersburg area) | 7,003 | 4.0% |
| Duval (Jacksonville area) | 6,439 | 3.7% |
| Charlotte (Port Charlotte-Punta Gorda) | 1,855 | 1.0% |
| SUBTOTALS | 99,011 | 56.8% |
| Collier (Naples area) | 2,373 | 1.4% |
| 57 Other Counties | 72,926 | 41.8% |
| TOTAL | 174,310 | 100.0% |
When looking at the distressed properties in the Collier County or Naples area 1,693 properties are found in the zip codes of 34116, 34117, and 34120 which cover the Golden Gate City and Golden Gate Estates areas.
An interesting statistic from the Sunshine MLS (Naples MLS Bonita Springs MLS and Estero MLS) shows that approximately 34% of the properties purchased from 2003 through 2007 had no financing - the buyers paid cash.
Naples Condo Market Report December 07
In the Naples real estate market condominiums show some positive trends in new listings coming on the market, closed sales, and pending sales as one reviews the statistics and analysis, with exception of median price paid. The market report covers not only the month of December, but also for the quarter ended December 31, 2007 and 2007 in totality.
Monthly Analysis:
Listings:
The number of new condo listings coming on the market in December was 535. In December 2006 the number was 683 or a reduction of 22% in volume. In December 2005, new listings were 720 condos or a reduction of about 26%. This represents a positive sign as fewer condos are coming on the market and should eventually be reflected in the gross number of available condos for sale.
The number of months of condo resale inventory is 34 months.
Closed Sales:
The number of closed sales for condominiums in the Naples area in December was 118 versus 140 in December 2006 or a volume reduction of about 16%. Considering the tighter requirements for mortgages and the elimination of sub-prime borrower programs, this is positive for the market. When looking at December 2005, the closed sales totaled 186, a reduction in closed sales volume of 37%. December 2005 many of the sub-prime and liberal loans were available. As many of us are aware the market started to change in the fourth quarter of 2005.
Pending Sales:
A total of 125 condos in the Naples area were pending sale as of the end of December. In December 2006, 120 condos were pending sale as of month end. While in 2005 there were a total of 193. With pending sales we can see the trend or impact of the elimination of liberal underwriting requirements and sub-prime borrower programs, when comparing pending sales between 2005 and 2007. It is interesting to notice that 2007 pending sales for condos are slightly over 2006.
Median Price Paid:
The median price paid for a condo in the Naples for the month of December 2007 was $285,250. The median price paid was $326,000 in December 2006, which represents approximately 12.5% reduction in the median price. The median price paid in 2005 was $406,425. The reduction in whole dollars was $121,175 or roughly 30%.
For the year over year December analysis one can conclude that the real estate market for condominium median prices are declining, while other aspects reflect buyer optimism.
Quarterly Analysis:
Listings:
During the 4th quarter ending December 31, 2007, the total number of new listings was 2,068 versus 2,630 in 2006 and 2,084 in 2005. The reduction in the new listings for the 4th quarter versus 2006 and 2005 could be a sign of the market’s eventual strengthening. With less condominiums coming on the market, the median price paid could in the future could stabilize or trend upwards slightly.
Closed Sales:
A total of 339 condos were sold in the 4th quarter of 2007 versus 354 in 2006 and 583 in 2005. The reduction of 15 condos between 2007 and 2006 equates to about 4%. While between 2007 and 2005 the reduction of 244 or 42% is substantial.
Median Price:
The median price paid for a condo in the Naples area during the 4th quarter of 2007 was $285,500. The median price paid in 2006 was $317,500 and $382,000 in 2005. The median price reduction between 2007 and 2006 was about 10%. However, the reduction between 2007 and 2005 was approximately 25%.
2007 Year Analysis:
Listings:
In 2007 there were a total of 8,836 new listings to come on the market for sale. In 2006, the total was 10,630 and 7,150 in 2005. The new listings in 2007 were less than 2006 and could represent a stabilization or reduction of new listings for condos coming on the market in the future.
Closed Sales:
During 2007, 1,820 Naples condos were sold compared to 1,967 homes in 2006 and 4,293 in 2005. The reduction in the total number of condos sold in 2007 compared to 2006 was 147 condos. This could suggest that the mortgage crisis did not affect the condo market as much as the single family home market as well as buyer confidence in the condo market due to the reduction in median prices paid for a condo.
Median Price:
The median price paid for a condo in Naples in 2007 was $305,000 versus $355,000 in 2006 or a percentage reduction in value of 14%. The median price was $360,000 in 2005. The reduction in value between 2007 and 2005 was about 15%.
What is very interesting to note is that the median price paid for a condo in Naples during 2004 was $241,000. The big question is the prices going to continue to decline? Be sure to read my post on the 2008 real estate forecast from Florida economist, Hank Fishkind.
This post has been enhanced with comparative global information for the Florida real estate market.
Naples Home Market Report December 07
In the Naples real estate market single family homes shows some positive trends as one reviews the statistics and analysis. The market report covers not only the month of December, but also for the quarter ended December 31, 2007 and 2007 in totality.
Monthly Analysis:
Listings:
The number of new listings coming on the market in December were 629. In December 2006 the number was 743 or a reduction of 15% in volume. In December 2005, new listings totaled 737 homes or a reduction of about 14%. This represents a positive sign as fewer homes are coming on the market and should eventually be reflected in the gross number of available homes for sale.
Closed Sales:
The number of closed sales for single family homes in the Naples area in December were 143 versus 162 in December 2006 or a volume reduction of about 12%. Considering the tighter requirements for mortgages and the elimination of sub-prime borrower programs, this is positive for the market. When looking at December 2005, the closed sales totaled 235. A reduction is closed sales volume of 39%. December 2005 many of the sub-prime and liberal loans were available. As many of us are aware the market started to change in the fourth quarter of 2005.
Pending Sales:
A total of 146 homes in the Naples area were pending sale as of the end of December. In December 2005, 153 homes were pending sale as of month end. While in 2005 there were a total of 217. With pending sales we can see the trend or impact of the elimination of liberal underwriting requirements and sub-prime borrower programs.
Median Price Paid:
The median price paid for a single family home in the Naples for the month of December 2007 was $417,000. The price paid was $4,150 less than the median price paid in December 2006, which was $421,150. This equates to approximately a reduction of less than 1%. The median price paid in 2005 was $482,400. The reduction in whole dollars was $65,400 or roughly 14%.
For the year over year December analysis one can conclude that the real estate market is showing signs of stabilization. The number of months of inventory of existing resale properties in the Naples area is about 34 months.
Quarterly Analysis:
Listings:
During the 4th quarter ending December 31, 2007, the total number of new listings were 2,435 versus 2,604 in 2006 and 2,248 in 2005. The reduction in the new listings for the 4th quarter versus 2006, could be another sign of the market’s eventual strengthening. The increase over 2005, could be the result of short sales, pre-foreclosure and foreclosed properties coming on the market as a result of the sub-prime mortgage crash.
Closed Sales:
A total of 393 single family homes were sold in the 4th quarter of 2007 versus 468 in 2006 and 766 in 2005. The reduction of 75 homes between 2007 and 2006 equates to about 16%. The interesting item to note here is that the national average of sub-prime mortgages to total mortgages is about 16%. Real estate is local, so this may not be the entire reason for the reduction in closed sales volume, but is a major contributing factor.
Median Price:
The median price paid for a home in the Naples area during the 4th quarter of 2007 was $415,000. The median price paid in 2006 was $419,500 and $479,950 in 2005. The median price reductions between 2007 and 2006 was about 1%. However, the reduction between 2007 and 2005 was approximately 13.5%.
2007 Year Analysis:
Listings:
In 2007 there were a total of 10,615 new listings to come on the market for sale. In 2006, the total was 11,247 and 8,170 in 2005. The new listings in 2007 were less than 2006 and could represent a stabilization of new listings for homes coming on the market.
Closed Sales:
During 2007, 1,979 Naples homes were sold compared to 2,441 homes in 2006 and 4,436 in 2005.
Median Price:
The median price paid for a home in Naples in 2007 was $440,000 versus $468,000 in 2006 or a percentage reduction in value of less than 6%. The median price was $474,450 in 2005 (the peak). The reduction in value between 2007 and 2005 was about 7%. What is very interesting to note is that the median price paid for a home in Naples during 2004 was $345,000. The big question is are the prices going to continue to decline? Be sure to read my post on the 2008 real estate forecast from Florida economist, Hank Fishkind.
Florida real estate global perspective has been updated on a newer post.
Naples Real Estate News - 01/30/08
REAL ESTATE TAX AMENDMENT - Real estate professionals around the state expect the pent up demand to buy-and-sell will spark home sales statewide, as well as, in the Naples area, thanks to yesterday’s passage of Amendment 1, which lowers property taxes statewide.
SUBPRIME MORTGAGES - It’s not just civil investigators at the Security and Exchange Commission looking into issues with the subprime mortgage industry. The Federal Bureau of Investigation has begun a criminal investigation looking into alleged accounting fraud, insider trading and concerns over loan securitization at 14 companies.
COUNTRYWIDE - Despite Countrywide Financial Corp’s report of a larger-than-expected $422 million loss for fourth quarter 2007, Bank of America Corp. is moving forward with its purchase of the company, Chief Executive Ken Lewis said Tuesday.
ECONOMY - Good but not great news: The U.S. was not experiencing a recession in the final quarter of 2007 because gross domestic product grew by 0.6 percent, according to the Commerce Department. However, that represents a slowdown from the third quarter and less growth than economists expected.
FLORIDA CONSUMER CONFIDENCE - Florida’s consumer confidence index fell to 70 this month, its lowest level in 16 years, a new University of Florida study reports.
Naples Real Estate News - 01/28/08
REMEMBER TO VOTE TOMORROW JANUARY 29.
JUMBO LOANS - Hoping to speed delivery of its $150 billion pick-me-up for the U.S. economy, the Bush Administration reluctantly agreed to temporarily increase the size of the mortgages Fannie Mae and Freddie Mac can purchase from $417,000 to nearly double that. This is good news for the Naples real estate market, due to the median price of residences in the local market.
PROPERTY INSURANCE - State Farm, Florida’s largest private home insurer, has begun dropping property coverage for 50,000 Floridians as part of a rate reduction agreement with the state. Even in places like Jacksonville, which hasn’t had a major hurricane since 1964, most homeowners within a mile of the ocean will be dropped.
REAL ESTATE TAXES - Tomorrow is Election Day in Florida. Get out. Vote. "Yes on Amendment 1" for the following reasons:
• People who have feel trapped in their homes – unable to size up or scale down – can now afford to sell.
• Keeps Save Our Homes while cutting taxes and expanding the homestead exemption for the first time since 1980.
• Exempts approximately 1 million small businesses, from the state’s tangible personal property (TPP) tax. Savings: about $500 a year.
• Caps non-homestead property assessments at 10 percent annually.
• Jumpstarts the housing market.
• Gets property tax reform rolling, allowing legislators to focus on additional relief during the 2008 legislative session. Is it enough? No. But a vote in favor of Amendment 1 sends a strong message to the Florida Legislature, which will consider additional tax relief during the 2008 legislative session.
NEW HOME SALES - The Commerce Department reported today that sales of new homes dropped by 26.4 percent last year. That marked the worst sales year on record, surpassing the old mark of a 23.1 percent plunge in 1980.
Naples Real Estate News - 01/25/08
MORTGAGE RATES - Rates on 30-year mortgages dropped for a fourth straight week to 5.48 percent, the lowest level in nearly four years, raising hopes that low rates will help spur a rebound in the hard-hit housing industry. This is surely the time to start thinking about buying - low interest rates and lots of homes and condominiums on the market!!
MORTGAGES - The United State House of Representatives’ proposed stimulus package includes help for the housing industry, allowing government-sponsored Fannie Mae and Freddie Mac to buy mortgages up to 75 percent more expensive than the current $417,000 limit. However, the Senate and White House still must still sign off on the proposal.
HOME SELLERS - Realtors there’s one thing that drives them crazy: unrealistic sellers who insist on asking buyers to pay boom-year sales prices. So they could recommend the termination of the listing contract - in essence firing sellers.
HOMEBUILDERS - Miami-based Lennar Corp. reported a $1.25 billion fourth-quarter loss Thursday – the biggest in its history – as the prolonged housing slump drove prices lower and the builder took hefty charges to write down land values. Lennar builds homes and condos in the Naples area.
Naples Real Estate News - 01/24/08
ALLSTATE - State attorneys tried Wednesday to reinstate a suspension that would keep Allstate’s 10 insurance companies from writing new policies in Florida. “Florida consumers deserve to know what is in the documents that Allstate is so aggressively guarding and my office is determined to get them,” Insurance Commissioner Kevin McCarty said after the 12-page appeal was filed with the 1st District Court of Appeal.
ECONOMY - The Federal Reserve’s action on Tuesday to sharply cut interest rates may have
Naples Real Estate News - 01/23/08
HOMEOWNERS INSURANCE - The insurance industry should not be allowed to thumb its nose at state regulators and lawmakers, an expert told a Florida Senate panel yesterday.
HURRICANES - Speaking homeowner insurance, is the truth out there? A new report concludes that global warming will actually diminish the number of hurricanes that strike Florida, contradicting earlier studies. While warmer ocean waters promote stronger storms, warmer crosswinds high in the atmosphere should break them apart. This latest study, conducted by Wang and Sang-Ki Lee of the University of Miami, will be published
Naples Real Estate News - 01/22/08
INTEREST RATES - The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point today and indicated further rate cuts are likely.
HOMEOWNERSHIP - As an investment, a home requires more than a good cleaning now