Bonita Springs Home Market Report December 07
In the Bonita Springs real estate market homes 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 home listings coming on the market in December was 109. In December 2006 the number was 145 or a reduction of 25% in volume. In December 2005, new listings were 138 homes or a reduction of about 21%. 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.
The number of months of home resale inventory is 31 months, down about one month from November 2007.
Closed Sales:
The number of closed sales for homes in the Bonita Springs area in December was 33 versus 41 in December 2006 or a volume reduction of about 19%. Tighter requirements for mortgages and the elimination of sub-prime borrower programs, does have impact, however it would have been better to see 16% or less as a percentage reduction. When looking at December 2005, the closed sales totaled 45, a reduction in closed sales volume of 26%. 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 31 homes in the Bonita Springs area were pending sale as of the end of December. In December 2006, 28 homes were pending sale as of month end. While in 2005 there were a total of 49. 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 homes are slightly over 2006.
Median Price Paid:
The median price paid for a single family home in the Bonita Springs for the month of December 2007 was $525,000. The median price paid in December 2006 was the same figure of $525,000. The median price paid in 2005 was $510,000. The increase in whole dollars was $15,000 or roughly 3%.
For the year over year December analysis one can see the number of months of inventory of resale homes reducing by about one month, fewer homes coming on the market, pending sales remaining stable, and the median price paid in the Bonita Springs area remaining stable.
Quarterly Analysis:
Listings:
During the 4th quarter ending December 31, 2007, the total number of new listings was 513 versus 492 in 2006 and 446 in 2005. The increase in the new listings for the 4th quarter versus 2006 and 2005 could be a sign of the market’s eventual strengthening. With less homes coming on the market, the median price paid could in the future could stabilize or trend upwards slightly.
Closed Sales:
A total of 80 homes were sold in the 4th quarter of 2007 versus 83 in 2006 and 142 in 2005. The reduction of 3 homes between 2007 and 2006 is insignificant considering the tighter credit criteria and elimination of liberal loan programs. While between 2007 and 2005 the reduction of 62 or 43% is substantial.
Median Price:
The median price paid for a home in the Bonita Springs area during the 4th quarter of 2007 was $532,500. The median price paid in 2006 was $435,000 and $569,000 in 2005. The median price increase between 2007 and 2006 was about 22%. However, the reduction between 2007 and 2005 was approximately 6%.
2007 Year Analysis:
Listings:
In 2007 there were a total of 2004 new listings to come on the market for sale. In 2006, the total was 2015 and 1458 in 2005. The new listings in 2007 were slightly less than 2006 and could represent a stabilization or reduction of new listings for homes coming on the market in the future.
Closed Sales:
During 2007, 430 Bonita Springs homes were sold compared to 456 homes in 2006 and 841 in 2005. The reduction in the total number of homes sold in 2007 compared to 2006 was 26 homes. This could suggest that the mortgage crisis did not affect the home market as well as buyer confidence in the single family home market due to the reduction in median prices paid for a home.
Median Price:
The median price paid for a home in Bonita Springs in 2007 was $532,000 versus $524,950 in 2006 or a percentage increase in value of slightly more than 1%. The median price was $505,000 in 2005. The increase in value between 2007 and 2005 was about 5%.
What is very interesting to note is that the median price paid for a home in Bonita Springs during 2004 was $346,375. The big question is will the prices remain so stable? Be sure to read my post on the 2008 Bonita Springs real estate forecast from Florida economist, Hank Fishkind.
Post has been updated with data from a state of Florida real estate perspective.
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