Estero Condominium Market Update
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.
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2 Responses to “Estero Condominium Market Update”
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Professionally presented. Nice job.
John - thank you for your nice comment.