The condominiums for sale in Bonita Springs continue to show signs of improvement. While still a buyer’s market, the condos available for sale are declining as well as the months of inventory declining.

The month of February started with 891 condos available for sale in the Bonita Springs area. Last February 1141 condos were for sale in a year over year comparison it is a decline of 250 condos available for sale. This represents a decline of about 22 percent.

The graph below shows the number of condos for sale in Bonita Springs between the years of 2008 thru 2010.

Bonita Springs Condos for Sale for the Years 2008 to 2010

The months of inventory, a measure of judging current demand for condominiums, in addition to if it is a buyer’s or seller’s market. When the months of inventory ranges between 5 and 7 months, it is considered a neutral market – neither buyers nor sellers have control over pricing. When months of inventory are excess of 7 months the buyers control the market as far as pricing. The reverse is true for when the inventory is 5 or fewer months.

The months of inventory at the start of February was 18.0 months compared to start of last February where there were 29.3 months of inventory. The decline in the months of inventory is about 39 percent representing another sign of the real estate market for condos in Bonita Springs is continuing to improve.

The graph below shows the movement in the months of inventory for 2008 thru 2010.

Bonita Springs Condos for Sale - Months of Inventory - 2008 to 2010

The composition of the condos for sale in Bonita Springs (traditional, foreclosures, and potential short sales) is another aspect of evaluating the real estate market. The greater the percentage of traditional sales the more strength within the market place. The percentage of the various types of listings, as noted above, should be reflected throughout the real estate cycle. The real estate cycle is listing, pending sale, and closed sale. When the percentages are inconsistent during the real estate cycle signals issues within a particular type of listing group can be noted and effective decisions made.

Below is a graph reflecting the composition of condominium listings at the start of February.

Bonita Springs Condos for Sale Composition of Listings for February 2010

The homes for sale in Bonita Springs continue to show signs of improvement. While still a buyer’s market, the homes available for sale are declining as well as the months of inventory declining.

The month of February started with 827 homes available for sale in the Bonita Springs area. Last February 1092 homes were for sale in a year over year comparison it is a decline of 265 homes for sale. This represents a decline of about 24 percent.

The graph below shows the comparison between the years of 2008 thru 2010.

Bonita Springs Homes for Sale from 2008 to 2010

The months of inventory, a measure of judging current demand for single family homes, in addition to if it is a buyer’s or seller’s market. When the months of inventory ranges between 5 and 7 months, it is considered a neutral market – neither buyers nor sellers have control over pricing. When months of inventory are excess of 7 months the buyers control the market as far as pricing. The reverse is true for when the inventory is 5 or fewer months.

The months of inventory at the start of February was 15.2 months compared to start of last February where there were 27.7 months of inventory. The decline in the months of inventory is about 45 percent representing another sign of the real estate market for homes in Bonita Springs is continuing to improve.

The graph below shows the movement in the months of inventory for 2008 thru 2010.

Bonita Springs Homes for Sale Months of Inventory 2008 to 2010

The composition of the homes for sale in Bonita Springs (traditional, foreclosures, and potential short sales) is another aspect of evaluating the real estate market. The greater the percentage of traditional sales the more strength within the market place. The percentage of the various types of listings, as noted above, should be reflected throughout the real estate cycle. The real estate cycle is listing, pending sale, and closed sale. When the percentages are inconsistent during the real estate cycle signals issues within a particular type of listing group can be noted and effective decisions made.

Below is a graph reflecting the composition of single family home listings at the start of February.

Bonita Springs Home for Sale - Composition for Februay 2010

The Bonita Springs real estate market for condos is starting to show signs of strengthening in some aspects and prospective buyers should be aware of the positive changes. The statistics presented and discussed below are global in nature for the Bonita Springs area and do not represent the more important micro-market views which can vary greatly from the global view.

Listings:

During the month of May a total of 126 condos were listed for sale. In May 2008, the number of condos listed for sale in the Bonita Springs area was 148. In addition the 126 condos listed for sale was less than the 142 condos in May 2007. The downward trend of new listings is continuing. The volume of listings in January were 189, February with 158, March with 169, and April with 129. Over the past four years, the listings for May had the lowest number of listings except for five months.

The listed condos in May 2009 was the lowest number of homes listed since October 2008.

Pending Sales:

During the month of May 2009, a total of 76 condos had offers accepted by sellers (pending). The figure for pending condo sales in May represents a substantial increase over both May 2008 and May 2007 were the pending sales were the same 38 condo units. The increase represents 100 percentage upwards change over May 2008 and May 2007. The increase in pending sales for May can largely be attributable to the lower median sold prices of condos.

Over the past 12 months the number of pending sales in the Bonita Springs area are showing an upward trend. In addition, the past 3 months have had the highest volume of pended condominiums since the months of June to August of 2005.

Closed Sales:

There were a total of 62 closed (sold) in May 2009. In a year over year analysis, the 62 sales is higher than May 2008 and May 2007, where 59 and 47 sales respectively took place.

Over the past 12 months the number of condos sold has been on a strong upward trend.

The increase is partially due to the lower median sold price of condos in the Bonita Springs area from the previous months of May 2008 and May 2007.

Median Sold Price:

The median sold price (the sold price at which half the condos sold and half below) for May 2009 was $207750. 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 February 2009, the median sold price for a condo in Bonita Springs has been ranging from $226500 to $207750. During the months of February through April, the median sold price was fairly stable – $220,000, $226,250, and $226,500.

The median sold price in May represents a 30 percent decline from May 2008 when the median sold price was $295000 and a 36 percent decline from May 2007 when the sold price was $325000.

The lower median sold price has a direct affect on the increased volumes for pending sales and sold condos. The lower volume of new listings could have an eventual impact on the median sold prices, as the volume of new listings coming on the market for condos declines. Can the current statistics represent a stabilization of the Bonita Springs condo real estate market or has the bottom of the real estate been realized? Only the national economy and time will tell.

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

Listings:

During the month of May a total of 129 homes were listed for sale. In May 2008, the number of homes listed for sale in the Bonita Springs area was 143. In addition the 129 homes listed for sale was less than the 131 homes in May 2007. Over the past year the number of listings have remained stable.

The listed homes in May 2009 was the lowest number of homes listed since July 2008.

Pending Sales:

During the month of May 2009, a total of 76 homes had offers accepted by sellers (pending). The figure for pending home sales in May represents a substantial increase over both May 2008 and May 2007 were the pending sales were 49 and 35, respectively. The increase represents 55 percentage upwards change over May 2008 and a 117 percentage increase. The increase in pending sales for May can largely be attributable to the lower median sold prices of homes.

Over the past four months the number of pending sales in the Bonita Springs area have been higher than in previous years, dating back to at least June 2005, even though the real estate market erosion could be earmarked back to October 2005. The past four months have had 81, 82, 78 and 76 pending sales for a total of 317 homes.

Closed Sales:

There were a total of 49 closed (sold) in May 2009. In a year over year analysis, the sales were the same as in May 2008. May 2007, there were sales totaling 54 homes.

Over the past 12 months the closed sales have shown an upward trend.

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

Median Sold Price:

The median sold price (the sold price at which half the homes sold and half below) for May 2009 was $245000. This figure may not be good news for existing homeowners or sellers, but it is good news for prospective buyers.  Over the past 12 months the median sold price for homes in the Bonita Springs area the trend is continuing to show a decline.

The median sold price in May represents a 56 percent decline from May 2008 when the median sold price was $56200 and a 54 percent decline from May 2007 when the sold price was $528500.

The lower median sold price has a direct affect on the increased volumes for pending sales. The lower volume of new listings could have an eventual impact on the median sold prices, as the volume of new listings coming on the market for homes declines. Can the current statistics represent a stabilization of the Bonita Springs home real estate market? Only the national economy and time will tell.

The available homes for sale in the Bonita Springs area saw a drop in the number of homes for sale as of the end of April or start of May. The current number of homes for sale is 988. This represents a drop in the inventory of 71 homes. The decline represents of about 7 percent. In the year over year analysis the current inventory represents a decline of 104 homes or about 9 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 984. Below is a graphical presentation of the historical data for active listings by month from January 2008 to April 30, 2009.

Trendline of Bonita Springs Homes for Sale

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 Bonita Springs 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 826 for traditional listings, 137 potential short sales and 35 foreclosures.

Classification of Bonita Springs Homes for Sale

A question arises – does the closed sales for April reflect the 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 to Bonita Springs condos for sale.

Your thoughts and comments are always welcomed.

Listings:

The new listings for the month of March 2009 were 158 homes in the Bonita Springs area. The number of homes listed in March 2008 was 119. The increase of new listings of homes was 33 percent. In March 2007, the new listings were 164, representing a drop of 6 homes or decline of 4 percent.

In February 2009 the new listings were 133.

Of the 158 homes listed approximately 20 percent were potential short sales, 18 percent were foreclosed (bank owned), and the remaining 62 percent were traditional listings.

Median list price for potential short sales was $241900, foreclosed properties were $105450, and traditional listings were $475000.

Closed Sales:

In the month of March 2009 the sale of homes were 54. In March 2008 a total of 48 homes were sold. The year over year was 13 percent decrease. In March 2007 a total of 56 homes were sold. The decrease over 2007 was 2 homes or about a 4 percent.

Of the 54 homes sold, approximately 3 percent were approved short sales, 22 percent were foreclosures, and the traditional sales were 75percent.

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

Pending Sales:

During March 2009 a total of 85 homes had an offer accepted by the seller. In March 2008, 63 homes were pended. The increase from March 2009 represents an increase of 22 homes or about 35 percent.

In March 2007 a total of 58 homes were pending sale. The increase between March 2009 and March 2007 was 27 homes or about 47 percent.

Median Sold Price:

During the month of March 2009, the median sold price of a home in Bonita Springs was $312000. The median price is the sold price represents the middle value 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 $594500. In the year over year comparison median sold price declined $282500 or roughly 48 percent.

In March 2007 the median sold price was $561250. In comparing March 2007 to March 2008 the price declined $249250 or about 44 percent.

Median sold price for approved short sales was $298000, foreclosed properties were $9000, and traditional listings were $377500.

The difference between the list price and sold pricefor approved sales was about 100 percent, foreclosed properties 92 percent, and traditional listings 90 percent.

Before making a decision to selling or buy a condo in Bonita Springs it is important to know and understand the months of inventory available for sale within Bonita Springs. As a seller you want to know how many condos are competing with you for the prospective buyers looking at 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 months of inventory will assist you in determining if now is an appropriate time to list your condo or purchase a condo at a great price. The months of inventory represents how long it will take to sell the number of condos on the market at the rate of closed sales based upon the average over a period of 12, 9, 6, or 3 months.

Bonita Springs Condos for Sale Months of Inventory

The key indicator watched is the 12 month moving average as it eliminates seasonal fluctuations in listings and closed sales. The months of inventory in February was 41 months versus at the end of September where 28 months were on the market.

The 9 month moving average reflects the number of months based upon the most recent 9 months of closed sales and the number of listings at a given point of time (at the end of the month, in this case September). This helps to identify if condos are being sold at a faster rate over the past 9 months or if fewer condos are coming on the market. The slight upward trend reflects a slight increase in the number of condos on the market and decreasing number of closed sales. In February the months of inventory was 46 months. At the end of September the months of inventory was 26 months.

The 6 month moving average reflects the number of months based upon the most recent 6 months of closed sales and the number of condos available for sale at the end of September. The upward trend reflects a slight increase in the number of listings, with a decrease in the volume of sales. During July and August the months of inventory was static at 22 months. Over the past 6 months the months of inventory decreased from 30 months to its present level of 25 months.

The 3 month moving average reflects the number of months based upon the most recent 3 months of closed sales and the number of condos available for sale at the end of September. The upward trend is caused by an increase in listings and lower closed sales over the immediate past 3 months. 3 months ago the months of inventory was at 23 months, while its present level is 32.

The lowering in the months of inventory of condos for sale under the 12 month moving average formula reflects a strengthening of the real estate market for Bonita Springs condos, while the other averages show more seasonal fluctuations. At the end of October, the months of inventory, may show an upward trend due to the historical statistics showing an increase of listings coming on the market in anticipation of the selling season. The selling season in the southwest Florida area is almost the opposite of other parts of the country, where Spring and Summer, are the highest selling months.

A neutral market is around 6 months of inventory, therefore, the Bonita Springs real estate market for single family homes remains a buyers market.

Before making a decision to selling or buy a home in Bonita Springs it is important to know and understand the months of inventory available for sale within Bonita Springs. As a seller you want to know how many properties are competing with you for the prospective buyers looking at homes, 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 homes are on the market and if you can great a great deal on a home. The months of inventory will assist you in determining if now is an appropriate time to list your home or purchase a home at a great price. The months of inventory represents how long it will take to sell the number of homes on the market at the rate of closed sales based upon the average over a period of 12, 9, 6, or 3 months.

Bonita Springs months of inventory homes for sale.

The key indicator watched is the 12 month moving average as it eliminates seasonal fluctuations in listings and closed sales. The months of inventory in February was 33 months versus at the end of September where 25 months were on the market.

The 9 month moving average reflects the number of months based upon the most recent 9 months of closed sales and the number of listings at a given point of time (at the end of the month, in this case September). This helps to identify if homes are being sold at a faster rate over the past 9 months or if fewer homes are coming on the market. The downward trend reflects a reduction in the number of homes on the market and increasing number of closed sales. In February the months of inventory was 39 months. At the end of September the months of inventory was 23 months.

The 6 month moving average reflects the number of months based upon the most recent 6 months of closed sales and the number of homes available for sale at the end of September. The upward trend reflects a slight dip in the number of listings, with a slight decrease in the volume of sales. Between June and September the months of inventory has been running between 22 and 21 months.

The 3 month moving average reflects the number of months based upon the most recent 3 months of closed sales and the number of homes available for sale at the end of September. The upward trend is caused by the slight increase in listings and lower closed sales over the immediate past 3 months.

The lowering in the months of inventory of homes for sale under the 12 month moving average formula reflects a strengthening of the real estate market for Bonita Springs homes, while the other averages show more seasonal fluctuations. At the end of October, the months of inventory, may show an upward trend due to the historical statistics showing an increase of listings coming on the market in anticipation of the selling season. The selling season in the southwest Florida area is almost the opposite of other parts of the country, where Spring and Summer, are the highest selling months.

A neutral market is around 6 months of inventory, therefore, the Bonita Springs real estate market for single family homes remains a buyers market.

Previous posts discussing the months of inventory:
Bonita Springs Market Update Homes – August 2008
Bonita Springs Home Market Update – June 2008