The statistics presented and discussed below are global in nature for the Estero area and do not represent the more important micro-market views which can vary greatly. The Estero real estate market for homes is starting to show signs of stabilizing in many aspects and prospective buyers should be aware of the positive changes.

Listings:

During the month of May a total of 48 homes were listed for sale. In May 2008, the number of homes listed for sale in the Estero area was 54. In addition the 48 homes listed for sale was significantly less than the 101 homes in May 2007. The downward trend, even though slight, of new listings is continuing over the past 3 years.

The listed homes in May 2009 was the lowest number of homes listed since August 2005. The noteworthy item about this fact, is that in October 2005, was the start of the real estate erosion even though the median sold price of homes peaked in January 2007 with May 2006 as the next highest median sold price month.

Pending Sales:

During the month of May 2009, a total of 63 homes had offers accepted by sellers (pending). The figure for pending home sales in May represents an increase from both May 2008 and May 2007 where the pending sales were 31 and 25, respectively. The increase over May 2008 equates to about 100 percent improvement and 152 percent improvement over May 2007.

The pending sales in May 2009 represents the highest number of pending sales over the immediate past four years.

Over the past three months the number of pending sales in the Estero area have been higher than in previous years, dating back to the three months in 2005 from June to August, even though the real estate market erosion could be earmarked back to October 2005.

Closed Sales:

There were a total of 26 closed (sold) in May 2009. In a year over year analysis, the 26 sales is lower than May 2008 where 37 homes closed but an improvement over May 2007’s 22 sales.

This is the continuation of an upward trend starting in June 2008.

The increase is largely due to the lower median sold price of homes in the Estero area.

Median Sold Price:

The median sold price (the sold price at which half the homes sold and half below) for May 2009 was $239500. This figure may not be good news for existing homeowners or sellers, but it is good news for prospective buyers. However, prospective buyers need to be aware that since November 2008, the median sold price for a home in Estero has been ranging from $277500 to $215400. Over the past 3 months the median sold price has been showing a consistent median sold price of $239500 to $$242000 – a very narrow range. Maybe a signal that prices are starting to stabilize.

The median sold price in May represents a 20 percent decline from May 2008 when the median sold price was $300000 and a 56 percent decline from May 2007 when the sold price was $541500.

The available condominiums for sale in the Estero area saw a drop in the number of condominiums for sale as of the close of business on April 30. The current number of condominiums for sale was 298. This represents a drop in the inventory of 16 condominiums. The decline represents of about 5 percent. In the year over year analysis the current inventory represents a decline of 87 condominiums or about 23 percent. In addition, the number of condos available for sale is at the lowest level beyond January 2008, when stats were first being recorded. In January 2008 there were a total of 646.Below is a graphical presentation of the historical data for active listings by month from January 2008 to April 30, 2009.

Trendline of Estero Condos for Sale - January 2008 to April 2008

The composition of the type of listings available for sale is rather interesting and could represent a major difference between prospective buyers’ perceptions, as well as, what is being reported by others as to how dire the Estero real estate market is. The vast majority of listings fall within the traditional listing category (traditional listings are listings being offered as a normal sale), followed by foreclosures, and potential short sales. The raw numbers for the various categories are 216 for traditional listings, 78 potential short sales and 4 foreclosures.

Composition of Estero Condos for Sale Listings - April

A question arises – will the closed sales for April reflect the same classification of the listings? The answer to this question will appear on this blog sometime within the next few days.

In previous posts you can compare the composition of both the Naples condos for sale and Bonita Springs condos for sale to Estero condos for sale.

Your thoughts and comments are always welcomed.

The available homes for sale in the Estero area saw a drop in the number of homes for sale as of the close of business on April 30. The current number of homes for sale was 471. This represents a drop in the inventory of 57 homes. The decline represents of about 11 percent. In the year over year analysis the current inventory represents a decline of 37 homes or about 7 percent. In addition, the number of home available for sale is at the lowest level since August 2008. In August 2008 there were a total of 456. Below is a graphical presentation of the historical data for active listings by month from January 2008 to April 30, 2009.

Trendline for Estero Homes for Sale - January 2008 to April 2009

The composition of the type of listings available for sale is rather interesting and could represent a major difference between prospective buyers’ perceptions, as well as, what is being reported by others as to how dire the Estero real estate market is. The vast majority of listings fall within the traditional listing category (traditional listings are listings being offered as a normal sale), followed by foreclosures, and potential short sales. The raw numbers for the various categories are 360 for traditional listings, 101 potential short sales and 10 foreclosures.

Composition of Estero Homes for Sale as of April 30, 2009

A question arises – will the closed sales for April reflect the same classification of the listings? The answer to this question will appear on this blog sometime within the next few days.

In previous posts you can compare the composition of both the Naples homes for sale and Bonita Springs homes for sale to Estero homes for sale.

Your thoughts and comments are always welcomed.

Listings:

The new listings for the month of March 2009 were 64 condos in the Estero area. The number of condos listed in March 2008 was 55. The increase of new listings of condos was 16 percent. In March 2007, the new listings were 71, representing a drop of 7 condos or decline of 10 percent.

In February 2009 the new listings were 52.

Of the 64 condos listed approximately 42 percent were potential short sales, 8 percent were foreclosed (bank owned), and the remaining 50 percent were traditional listings.

Median list price for potential short sales was $134000,foreclosed properties were $72500, and traditional listings were $269900.

Closed Sales:

In the month of March 2009 the sale of condos were 15. In March 2008 a total of 27 condos were sold. The year over year was 56 percent decrease. In March 2007 a total of 12 condos were sold. The increase over 2007was 3 condos or about a 25 percent.

Of the 15 condos sold, approximately 6 percent were approved short sales, 25 percent were foreclosures, and the traditional sales were 69percent.

The breakdowns of the median sold prices are discussed in the median sold price section below.

Pending Sales:

During March 2009 a total of 41 condos had an offer accepted by the seller. In March 2008, 18 condos were pended. The increase from March2009 represents an increase of 23 condos or about 56 percent.

In March 2007 a total of 21 condos were pending sale. The increase between March 2009 and March 2007 was 20 condos or about 95 percent.

Median Sold Price:

During the month of March 2009, the median sold price of a condo in Estero was $132900. The median price is the sold price represents the middlevalue of the all sold prices within a stated range. The median sold price can vary from area to area within a local real estate market.

In March 2008, the median sold price was $290000. In the year over year comparison median sold price declined $157100 or roughly 54percent.

In March 2007 the median sold price was $228000. In comparing March 2007 to March 2008 the price declined $95100 or about 42percent.

Median sold price for approved short sales was $66500,foreclosed properties were $66050, and traditional listings were $170000.

The difference between the list price and sold price forapproved sales was about 78 percent, foreclosed properties 97 percent, andtraditional listings 90 percent.

Jim Cramer: Florida Raises Hope for U.S. Real Estate

It appears that Jim Cramer thinks that Florida is the model for the nation’s real estate market. He thinks that Florida was the first state to feel impact of the real estate bubble and now after 2 years it has bottomed out with the rest of the country to follow. Below is his discussion from a recent interview he had on Wall Street Confidential.

Over the previous months subtle indications in the Naples, Bonita Springs, and Estero real estate markets have shown signs of improvement by the lowering of homes and condos for sale as well as less listings coming on the market than in previous 2 years.

Prices have declined to a point where multiple offers are being presented on properly priced properties.

Buyers need to be aware of the estimated market value of a property and
be prepared to rethink that a full price offer will be
the offer accepted and be willing to offer more than the listed price close to the estimated market value.

Sellers still need to be aware that they need to properly price their properties due to the competition from potential short sales and foreclosures.

As a seller you want to know how many Estero condos are competing with you for the prospective buyers looking at Estero condos, as well as how aggressive you need to be with your list price. As a buyer you want to know how large a selection of condos are on the market and if you can great a great deal on a condo.

The actual number of Estero condos for sale increased from August to September, with condos for sale decreased by only 2 condos. The total available condos was 307 in August versus 305 at the end of September. However, due to the level of closed sales the months of inventory for Estero condos for sale has remained at a stable level at September’s 15 months from August’s 14 months. Since the beginning of February 2008 with 38 months of inventory, the months have dropped an outstanding 23 months to its present level. The reader should review the graph as not only does it measure the months of inventory (adsorption rate) based upon a 12 month moving average, but reflects the 3, 6, and 9 month moving average.

Estero condos for sale months of inventory

The real estate market for Estero condos still remains a buyers market due to the present 15 months of inventory. A neutral market is generally around 6 months of inventory.

Below is a discussion of the meaning for the various absorption rates and how they may influence your decision for selling or buying real estate in the Estero real estate market.The 3, 6, or 9 month moving average reflects the relationship of closed sales over the immediate past three, six or nine months and the number of Estero homes on the market for sale.

When the trend line for these moving averages decline it is the result of an increase in closed sales with a constant level of condos available for sale or a constant number of closed sales with a declining number of condos for sale. A decreasing trend line represents movement towards a sellers market.

An increasing trend line reflects a lower volume in closed sales with a constant level of condos available for sale or a constant number of closed sales with an increasing number of condos for sale. An increasing trend line represents a movement toward a buyers market.

In the above graph the trend lines are moving overall in a downward trend, due to the listings constantly declining, except in June, even though closed sales have either remained constant over past four months, but down from previous other months earlier in the year.

Trends over a short period of time can be misleading due to seasonal fluctuations for new listings, which become available for sale, or closed sales.

The months of October and January generally are the highest months for new listings.

Shortly, the Estero real estate market update report for Estero homes covering both the month and quarter ended September 30, 2008 will be posted within this blog.

The actual number of Estero homes for sale increased from August to September, with homes for sale increasing by 19 homes. The total available homes was 456 in August versus 476 at the end of September. However, due to the level of closed sales the months of inventory for Estero homes for sale has remained level at September from August’s 20 months. Since the beginning of February 2008 with 32 months of inventory, the months have dropped 12 months to its present level. The reader should review the graph as not only does it measure the months of inventory (adsorption rate) based upon a 12 month moving average, but reflects the 3, 6, and 9 month moving average.

The real estate market for Estero single family homes still remains a strong buyers market. A neutral market is generally around 6 months of inventory.

Below the presentation is a discussion of the meaning for the various absorption rates and how they may influence your decision for selling or buying real estate in the Estero real estate market.

Estero homes for sale months of inventory.

The 3, 6, or 9 month moving average reflects the relationship of closed sales over the immediate past three, six or nine months and the number of Estero homes on the market for sale.

When the trend line for these moving averages decline it is the result of an increase in closed sales with a constant level of homes available for sale or a constant number of closed sales with a declining number of homes for sale. A decreasing trend line represents movement towards a sellers market.

An increasing trend line reflects a lower volume in closed sales with a constant level of homes available for sale or a constant number of closed sales with an increasing number of homes for sale. An increasing trend line represents a movement toward a buyers market.

In the above graph the trend lines are moving upwards, due to closed sales on a per month basis being lower than it is was in earlier part of the year, while the number of homes for sale remained fairly constant and the listings declining only during various months.

Trends over a short period of time can be misleading due to seasonal fluctuations for new listings, which become available for sale, or closed sales.

The months of October and January generally are the highest months for new listings.

Shortly, the Estero real estate market update report for Estero homes covering both the month and quarter ended September 30, 2008 will be posted within this blog.

August Activity for Homes in Estero:

Listings:

During the month of August 73 Estero homes were listed for sale. For the same month in 2007, 59 homes were listed for sale; this represents an increase of 23.7 percent. The increase from 2006 was 17.7 percent from the 62 new listings. In July 2008 there were a total of 66 homes listed for sale and in June 66 homes.

The number of homes available for sale in Estero has dropped from 575 homes in February 2008 to 456 at the end of August. This represents a reduction of about 20.7 percent. In terms of the number of months of homes to sell it is presently at 20 months versus 32 months in February.

Potential short sale homes listed in August was 14 or 19.2 percent and 4 homes or 5.5 percent are listed as a foreclosure, REO or bank owned.

The developments representing 46.6 percent of the new listings were:
Bella Terra – 11 homes with a median price of $300000, 7 potential short sales.
Cascades at Estero – 8 homes with a median price of $289950.
Rookery Pointe – 8 homes with a median price of $397500, 1 potential short sale and 1 foreclosure.
Grandezza – 7 homes with a median price of $979000, with 1 home a potential short sale.

Closed Sales:

A total of 19 homes were sold during August 2008. Comparing the same month in 2007 when a total of 17 homes sold, represents an increase of 10.5 percent. In August 2006 a total of 8 homes were sold or an increase of 137.5 percent (or 11 more homes). In July 2008 a total of 18 homes closed or 1 more home than in August.

Pending Sales:

In August 2008 24 homes were placed under contract or pending for closing, pending sales are where a home is no longer on the market for sale. The 24 homes is an increase over both the 19 homes in 2007 and 11 homes in 2006. August 2008 pending sales were 2 fewer homes than in July 2008 and 3 fewer homes than in June 2008.

Median Price Paid:

During the month of August the median price paid for a home was $318000. In the previous year, 2007, the median price paid was $304000 or an increase of 4.6 percent. In 2006 the median price was $347500 a decrease of 8.5 percent compared to August 2008.

June Activity:

Listings:

During the month of June 60 Estero condos were listed for sale. For the same month in 2007, 53 condos were listed for sale; this represents an increase of 5.7 percent. The decrease from 2006 was 17.8 percent from the 73 new listings. In May 2008 a total 40 condos were listed for sale. The increase in the number of new listings has a negative impact on the number of months of supply for available condos in the Estero area, along with the lower volume of closed sales and stable pending sales volume. A graphic presentation showing the number of months supply for condominiums in Estero will be posted shortly.

Closed Sales:

A total of 8 condos were sold during June 2008. Comparing the same month in 2007 there were a total of 10 condos sold, the reduction of 2 condos represents a decrease of 20.0 percent. In June 2006 a total of 9 condos were sold a decrease of 11.1 percent (or 1 less condo). In May 2008 a total of 23 condos closed or 15 more condos than in June. During June in the state of Florida a total of 3,628 condos sold compared to the previous year’s total of 3851 condos or reduction of about 5.8 percent. The Estero condo market although not performing as well as the rest of the state, the area is too small to establish a true picture. In addition, potential short sale properties could be retarding the volume of closed sales both for Estero and state of Florida.

Pending Sales:

In June 2008 25 condos were placed under contract or pending for closing, pending sales are where a buyer and seller have agreed on the price and terms of a purchase and the condominium is no longer available for sale. The 25 condos is an increase over both the 10 condos in 2007 and 11 condos in 2006. June 2008 was higher than the 23 condos in May 2008 but less than 34 condos in April 2008.

Median Price Paid:

During the month of June the median price paid for a condominium was $157,500. In the previous year, 2007, the median price paid was $312,500 or a decrease of 50.4 percent. In 2006 the median price was $439,000 or reduction of 64.1 percent compared to June 2008. The national median sales price in June was $224,200, which is down 2.2 percent from a year ago. The Florida median sales price was $183,700 down approximately 13.5 percent from last year’s $212,400. The median sales price paid for a condominium has declined greater than the overall state’s median price. The reason for this can be explained by over building during the past few years, as well as, the fallout from subprime borrowers, investors, and speculators.

Quarterly Analysis:

Listings:

During the second quarter of 2008 a total of 156 condos were listed for sale. During the second quarter of 2007 170 condos were listed. A reduction of 14 units or about 9.0 percent and a reduction of 92 condos listed from the 248 units in the same quarter of 2006 – about 37.1 percent reduction.

Closed Sales:

The volume of sold condos for the second quarter of calendar 2008 was 58 condos. Compared on a quarterly basis for the previous year, where 4 condos closed which represents an increase of about 31.8 percent. During the second quarter in 2006, 133 units were closed for an increase of about 75.8 percent.

Pending Sales:

For the past three months a total of 179 condos have been placed in a pending sale status. Under normal situations (fewer possible short sales) the average time frame for closing after a condominium is a pending sale occurs 30 to 60 days later. Many of the pending sales would have already closed and had a positive impact on closed sales in June. Possible short sale transactions are extending the time frame for closings due to the backlog of contracts without any action by the lenders for about 45 to 75 days after the short sale package is received by the lenders. During the second quarter in 2007 a total of 43 condos were placed under contract or pended. The increase in pending sales for 2008 was 36 condos or an increase in 2008 of roughly 45.6 percent. In 2006 pending sales totaled 39 condos or increased 50.6 percent in 2008.

Median Sold Price:

The median sold price for a condominium in Estero during the second quarter of 2008 was $210,000 versus $264,500 in 2006 or price reduction of about 20.6 percent. The median price paid for a condominium in June 2006 was $369,000. Compared to 2008 the price reduction from 2006 is about 43.1 percent. For informational purposes calendar year 2007 had the highest median sold price of $345,000. In 2007, of the 199 condominiums sold, 83 were built in 2007 and sold for a median price of $500,450. For condominiums sold during 2007, built 2006 and prior the median price paid was $240,000.

June Activity:

Listings:

During the month of June 69 Estero homes were listed for sale. For the same month in 2007, 86 homes were listed for sale; this represents a decrease of 19.8 percent. The decrease from 2006 was 22.5 percent from the 89 new listings. In May 2008 there were a total of 48 homes listed for sale.

Closed Sales:

A total of 25 homes were sold during June 2008. Comparing the same month in 2007 there were a total of 26 homes sold, represents a decrease of 3.9 percent. In June 2006 a total of 19 homes were sold or an increase of 31.6 percent (or 6 more homes). In May 2008 a total of 29 homes closed or 4 more homes than in June. During June in the state of Florida a total of 3,628 homes sold compared to the previous year’s total of 3851 homes or reduction of about 5.8 percent. Therefore, the Estero single family home market might be slightly stronger than the overall state’s condo market, as the number of homes sold decreased but as much as the overall Florida home market.

Pending Sales:

In June 2008 27 homes were placed under contract or pending for closing, pending sales are where a home is no longer on the market for sale. The 27 homes is an increase over both the 18 homes in 2007 and 18 homes in 2006. June 2008 pending sales were 7 fewer homes than in May 2008 and 12 fewer homes than in April 2008.

Median Price Paid:

During the month of June the median price paid for a home was $410,000. In the previous year, 2007, the median price paid was $327,500 or an increase of 25.2 percent. In 2006 the median price was $390,000 an increase of 5.1 percent compared to June 2008. The national median sales price in June was $213,800, which is down 6.7 percent from a year ago. The Florida median sales price was $205,500 down approximately 16 percent from last year’s $244,400.

The median sales price paid for a home increased more than the overall state’s median price, which decreased 16 percent.

Quarterly Analysis:

Listings:

During the second quarter of 2008 a total of 193 homes were listed for sale.

During the second quarter of 2007 285 homes were listed. A reduction of 92 units or about 32.3 percent and a reduction of 47 homes listed from the 240 units in the same quarter of 2006 – about 24.4 percent reduction.

Closed Sales:

The volume of sold homes for the second quarter of calendar 2008 was 90 homes. Compared on a quarterly basis for the previous year, where 68 homes closed which represents an increase of about 32.4 percent. However, when looking at the second quarter in 2006, 56 homes were closed for an increase of about 64.3 percent.

Pending Sales:

For the past three months a total of 99 homes have been placed in a pending sale status. Under normal situations (fewer possible short sales) the average time frame for closing after a home is a pending sale – 30 to 60 days later, many of the pending sales would already have closed and had a positive impact on closed sales in June. Possible short sale transactions are extending the time frame for closings due to the backlog of contracts without any action by the lenders for about 45 to 75 days from the day the short sale package is received by the lenders.

During the second quarter in 2007 a total of 62 homes were placed under contract or pended. The increase in pending sales for 2008 was 37 homes or an increase in 2008 of roughly 59.7 percent. In 2006 pending sales totaled 56 homes or increased 10.7 percent in 2008.

Median Sold Price:

The median sold price for a single family home in Estero during the second quarter of 2008 was $323,750 versus $385,000 in 2007 or price reduction of about 15.9 percent. The median price paid for a single family home in the second quarter of 2006 was $422,450. Compared to 2008 the price reduction from 2006 is about 23.4 percent. For informational purposes calendar year 2006 had the highest median sold price of $428,500.

Yesterday, I was informed of a very close and dear friend, Charles Richey, had been hospitalized with Guillain-Barre Syndrome. This particular disease afflicts the nervous system and the inflicted individual looses the use of all their limbs and ability to swallow.

Charles has helped me with my website on many occasions and has always been there to just to talk or give me encouragement when things were rough for me. There are many real estate agents through the United States that have benefited from his assistance. In addition, Charles, is very active in the Las Vegas area with animal rescue organizations. Many times when we talk he will tell me about a new dog that he has staying with him until a home can be found.

Charles does not have any health insurance at this time and with the overall real estate market not as strong as it has been, he will be incurring substantial hospital, physician, and after inpatient care – if you have been hospitalized you may have some idea of what Charles will be facing in the future.

On the Internet, we meet many people and may not meet them in person. So when a call goes out to help another- the internet is a power vehicle to get the word out. I have been lucky to meet Charles and his wife Jacqui in person and have had dinner with them.

You may not know Charles Richey from Las Vegas, but perhaps you know someone that has been striken with this disease and can offer comforting words of advice for this family or if you are so inclined to assist Charles you can visit this site or click on the graphic below.

Donate to the Charles Richey Fund

Thank you for reading this post and any assistance you can offer Charles Richey from Las Vegas.

The Estero Florida real estate market for the month of February is showing signs of stability with new listings, with strengthening in the pending sales and with closed sales. The median price paid for a condo in Estero is experiencing deflation, which has a positive effect on the pending sales. 

New Listings: In February a total of 61 condos were listed for sale in the Estero area. The new listings in February were slightly higher than the 56 condos listed in February 2007, but significantly less than the 114 condos listed in 2006. The number of new listings for the past three months are significantly down from 2006 and slightly above or below the 2007 levels. Stability of new listings is slowly starting to formulate.

Pending Sales: In February, 28 Estero condominiums were placed under contract for purchase. This compares most favorably with the previous years of 2007 and 2006, where 14 and 13 were pending sale. The trend for the past three months have shown similar results of pending sales higher than previous years. This activity is showing a strengthening of the real estate market, by buyers entering the market due to lower prices.

Closed Sales: During February 10 condos were sold, up 6 units over the same period in 2007, but 2 units less than 2006. The trend for the past three months consistently shows closings up over the same months in 2007 and 2006. When looking at this trend, it represents a strengthening of the market via buyer confidence that the market is close to the bottom or at the bottom.

Median Price Paid: The median price of an Estero condo sold in February was $166,450 compared with $332,500 in 2007 and $313,985 in 2006. The trend for the median sold price for the past three months shows a median price less than in the same month from the previous year. The increased trends for pending sales and closed sales reflect the lower prices in Estero condos. As prices drop, the affordability factor increases, coupled with the low interest rate for mortgages.

At the beginning of March the Estero market has 432 condos for sale, which represents approximately a 38 month supply of inventory to be sold. However, the absorption rate for new listings reflects 6.1 months versus the previous two months absorption rate of 14.0 and 9.5 months. 

New Listings: During the month of February 83 Estero homes were listed for sale. In 2007, there were 111 and in 2006 a total of 90. In January 2008, a total of 135 homes were listed for sale and 69 in December 2007. The absorption rate calculated for February was 9.2 months greater than the absorption rate for Naples (8.3 months) and Bonita Springs (4.4 months). In previous years the absorption rate was 9.3 months in 2007 and 6.0 months in 2006.

Pending Sales: In February, a total of 32 homes in Estero were placed under contract, which is 15 homes more than 2007 and five homes more than in 2006. Pending sales for January and December were constant at 23 homes.

Closed Sales: In February, 9 homes were sold, compared with 12 in 2007 and 15 in 2006. In January 2008 a total of 16 homes were sold and December 2007 the closed sales were 18 homes.

Median Sold Price: The median price for a home sold in Estero during the month of February 2008 was $290,000. In February 2007 the median price was $339,500 and $455,000 in 2006. The median price reduction has been 14.6% in the year over year period and cumulative decrease of 36.3%. The median price for January 2008 was $463,750 and December 2007 $415,000.

The number of Estero homes for sale is 213 or about 32 months of inventory to be sold.

Today, I was very surprised to find this blog to ranked in the Top 100 Real Estate Blogs as per Top 100 Real Estate Blogs.

The ranking is determined by Google Page Rank, Technorati Rank, and Alexa rankings.

The blog is entitled Naples Real Estate News and Market Updates and does cover the communities of Bonita Springs and Estero as well.

Thank you – Top 100 Real Estate Blogs. 

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

was $174,000. In November 2006, the median price paid a condominium in Estero was $245,000 or a lower median price of roughly 29%. Looking at November 2005, the median price paid was $369,000 – the reduction in the median price is 53%. The 2005 median price does include a number of expensive condominium coach homes sold in the Grandezza development.  In 2006, once again, Grandezza lead the way with prices that pulled up the median price overall. No condominiums were sold in Grandezza in November 2007 and it explains the drastic drop in the median price for Estero condominiums.

Closed Sales:
The closed sales for condos in Estero during November were 8. In November 2006, the number of closed was 6 and 15 in November 2005; the respective changes are an increase of 33% and a reduction of 53%. The increase in the number of closings over 2006, it a good sign considering how the financing programs have become more restrictive. The reduction from 2005 is the residual of the tail-end of red-hot real estate market in 2005. A positive sign is the stability or slight increased in closed sales, due to constraints in the financing marketplace.

Pending Sales:
The volume of pending sales came in at 9 contracts. The 9 contracts, is an decrease of about 18% from 2006’s 11, but 53% below 2005’s 19 pending sales. With the drop from 2006 pending sales, it is a good sign that the restrictive nature of the mortgage arena is not having a negative effect on the market.  The decrease from 2005 is related to the cooling of the real estate market.

Currently, there are about 423 condos available for sale in the Estero area, representing about 43 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market. 

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.