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

As buyers actively pursue foreclosures in the country they may not be aware of certain statutes regarding the purchase of condominiums and/or properties located within a homeowners associations. In some instances condominium associations could be part of a homeowners association.

A prospective buyer should be sure the real estate agent they are selecting is aware of these statutes and be willing to obtain them in the case of a foreclosed property, when they are considering a purchase.

With foreclosed properties the seller (Fannie Mae, Freddie Mac, and REO’s) require a specific addendum to be made as part of the sales contract. The addendum is written to highly favor the seller and not the buyer. Although each seller of foreclosed properties has different clauses within the addendum and use different language through-out.  Prospective buyers should be aware of the clauses and should have a real estate attorney review the addendum prior to signing the addendum and be informed about issues within the addendum and how they could affect their purchase, as well as, ensuring state statutes are followed by the sellers.

Because each state has different laws, Fannie Mae, Freddie Mac, and the REO’s it is not possible for them to prepare an appropriate addendum meeting the requirements of individual state statutes.

The problem starts when a real estate agent representing the buyer in a transaction requests the required documents or disclosures, the listing real estate agent states the seller will not furnish any documents or sign any disclosures. If Fannie, Freddie or the REO is contacted by the buyer’s real estate agent calls are not returned, personnel are not aware of what the state statutes require, and executive directors do not respond to calls.

First, the buyer needs to be aware of the chapters addressing condominiums and homeowner associations. Buyers also should understand that a condominium association could be located within a homeowners association bringing both chapters into affect. Below are excerpts from the respective chapters.

For example, the State of Florida Statutes regarding the purchase of condominiums (Chapter 718) and properties located within a homeowners association (Chapter 720) could be ignored.

State of Florida Chapter 718

Section 718.503 Developer disclosure prior to sale; nondeveloper unit owner disclosure prior to sale; voidability.

(2) NONDEVELOPER DISCLOSURE.– (a) Each unit owner who is not a developer as defined by this chapter shall comply with the provisions of this subsection prior to the sale of his or her unit. Each prospective purchaser who has entered into a contract for the purchase of a condominium unit is entitled, at the seller’s expense, to a current copy of the declaration of condominium, articles of incorporation of the association, bylaws and rules of the association, financial information required by s. 718.111, and the document entitled “Frequently Asked Questions and Answers” required by s. 718.504. On and after January 1, 2009, the prospective purchaser shall also be entitled to receive from the seller a copy of a governance form.

State of Florida Chapter 720

PART II DISCLOSURE PRIOR TO SALE OF RESIDENTIAL PARCELS

Section 720.401 Prospective purchasers subject to association membership requirement; disclosure required; covenants; assessments; contract cancellation.–

(1)(a) A prospective parcel owner in a community must be presented a disclosure summary before executing the contract for sale. The disclosure summary must be in a form substantially similar to the following form:
“DISCLOSURE SUMMARY
FOR
(NAME OF COMMUNITY)
1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION.
2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY.
3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR PROPERTY.
6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY.
9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED FROM THE DEVELOPER.
DATE:
PURCHASER:
PURCHASER:”

It further states the following:

“The disclosure must be supplied by the developer, or by the parcel owner if the sale is by an owner that is not the developer. Any contract or agreement for sale shall refer to and incorporate the disclosure summary and shall include, in prominent language, a statement that the potential buyer should not execute the contract or agreement until they have received and read the disclosure summary required by this section.”

Below are excerpts from some addendum, which conflicts with the state statutes and responsibility falls on the shoulders of the buyer.

Example one is taken from the Fannie Mae addendum:

“If the Property is a condominium or planned unit development or co-operative, unless otherwise required by law, the Purchaser, at the Purchaser’s own expense, is responsible for obtaining and reviewing the covenants, conditions and restrictions and bylaws of the condominium, or planned unit development or cooperative within (10) days of execution of this Agreement by both parties pursuant to paragraph 1 hereof. The Seller agrees to use reasonable efforts, as determined at the Seller’s sole discretion, to assist the Purchaser in obtaining a copy of the covenants, conditions and restrictions and bylaws. The Purchaser will be deemed to have accepted the covenants, conditions and restrictions and by laws if the Purchaser does not notify the Seller in writing, within 15 days of execution of this Agreement, of the Purchaser’s objection to the covenants, conditions and restrictions and/or bylaws.”

Example two is taken from a REO addendum:

“If the Property is a condominium, planned unit development, subject to a homeowner’s association or cooperative, unless otherwise required by state law, Buyer, at Buyer’s own expense, is responsible for obtaining and reviewing the covenants, conditions, restrictions and/or bylaws of the relevant entity within seven (7) calendar days of the Seller’s delivery of executed contract to Buyer. Seller agrees to employ reasonable efforts to assist Buyer in obtaining a copy of said documents. Buyer will be deemed to have accepted the covenants, conditions, restrictions and/or bylaws if Buyer does not notify Seller in writing, within ten (10) days of Seller’s acceptance, or Buyer’s objection to the same.”

Example three is taken from the Freddie Mac addendum:

“IT IS EXPRESSLY AGREED AND ACKNOWLEDGED BY THE PURCHASER THAT ANY EXPRESS REPRESENTATIONS, WARRANTIES, OR STATEMENTS CONTAINED IN THE CONTRACT OF SALE, WHETHER REFERRING TO THE CONDITION OF THE PROPERTY, OR WHETHER REFERRING TO THE EXISTENCE OF FEATURES, FUNCTIONS OR SERVICES RELATING TO OR SERVING THE PROPERTY (INCLUDING, BY WAY OF EXAMPLE ONLY, WHETHER THE PROPERTY HAS PARTICULAR TYPES OF UTILITY SERVICES), ARE SPECIFICALLY WAIVED, DISCLAIMED, AND RENDERED NULL AND VOID.”

The clauses within the addendum are clearly not in compliance with state laws, however the seller of foreclosed properties should be made aware of the conflict or conflicts and work in an amicable manner to comply. Rather than being unresponsive to the prospective buyer or the buyer’s real estate agent, when the issue is being brought to their attention. One could go so far that the seller may elect to find real estate agents who are more familiar with the state or local laws governing documentation involving the sale and purchase of real estate.

A good buyer’s real estate agent understands the individual state laws and will obtain the documents the buyer should have as required. A buyer of a condominium in Florida is required to be furnished with the following documents:
1) Declaration of Condominium;
2) Articles of Incorporation;
3) Bylaws;
4) Rules and Regulations;
5) Most Recent Year-End Financial Statements;
6) Question and Answer Sheet;
7) Governance Form.

A buyer of a property located within a homeowners association should have the following documents:
1) Disclosure Summary for the Homeowners Association, at a minimum;
2) Declaration of Restrictive Covenants;
3) Articles of Incorporation;
4) Bylaws;
5) Rules & Regulations;
6) Most Recent Year-End Financial Statements.

A prospective buyer should be working with both a good the real estate agent and real estate attorney who are aware and knowledgeable of state statutes and know how and where to documents to satisfy and protect them )the buyer) in the case of a foreclosed property, when they are considering a purchase.

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 available condos for sale in the Bonita Springs area saw a drop in the number of condos for sale as of May 1. The current number of condos for sale is 1094. This represents a drop in the inventory of condos from the beginning of April where 1094 condos were listed for sale. The decline represents of about 4 percent. In the year over year analysis the current inventory represents a decline of 104 condos or about 9 percent. Below is a graphical presentation of the historical data for active listings by month from January 2008 to May 1, 2009.

Trendline for Bonita Springs Condos for Sale - January 2008 to May 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 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 949 for traditional listings, 124 potential short sales and 21 foreclosures.

Classification of Listings on the Market for Bonita Springs Condos

A question arises – will the closed sales for April reflect the classification of the listings? The answer to this question will appear on this blog sometime in the near future.

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 160 condos in the Bonita Springs area. The number of condos listed in March 2008 was 137. The increase of new listings of condos was 17 percent. In March 2007, the new listings were 215, representing a drop of 55 condos or decline of 26 percent.

In February 2009 the new listings were 146.

Of the 160 condos listed approximately 16 percent were potential short sales, 13 percent were foreclosed (bank owned), and the remaining 71 percent were traditional listings.

Median list price for potential short sales was $125000, foreclosed properties were $79000, and traditional listings were $289500.

Closed Sales:

In the month of March 2009 the sale of condos were 38. In March 2008 a total of 57 condos were sold. The year over year was 33 percent decrease. In March 2007 a total of 47 condos were sold. The decrease over 2007 was 9 condos or about a 19 percent.

Of the 38 condos sold, approximately 3 percent were approved short sales, 8 percent were foreclosures, and the traditional sales were 89percent.

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

Pending Sales:

During March 2009 a total of 107 condos had an offer accepted by the seller. In March 2008, 76 condos were pended. The increase from March 2009 represents an increase of 31 condos or about 29 percent.

In March 2007 a total of 43 condos were pending sale. The increase between March 2009 and March 2007 was 64 condos or about 149 percent.

Median Sold Price:

During the month of March 2009, the median sold price of a condo in Bonita Springs was $220000. 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 $319900. In the year over year comparison median sold price declined $99900 or roughly 31 percent.

In March 2007 the median sold price was $325000. In comparing March 2007 to March 2008 the price declined $105000 or about 32 percent.

Median sold price for approved short sales was $184000, foreclosed properties were $84900, and traditional listings were $226250.

The difference between the list price and sold price for approved sales was about 92 percent, foreclosed properties 107 percent, and traditional listings 89 percent. The foreclosed properties were in excess of100 percent due to multiple offers and/or seller credit and paid closing costs.

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.

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.

The number of Naples condominiums available for sale at the beginning of October was 4716. The absolute number of listings increased by 41 condos over the 4675 listings at the beginning of September. Therefore, the months of inventory remained stable at 29 months. Viewing the months of inventory for the 12 month moving average trend shows a downward trend from February. The months of inventory in February was 37 months, while at the beginning of October it was 29 months.

Graph for the number of months for Naples condos available for sale.

The 3 month moving average is showing an upwards trend due the volume of closed sales declining while the number of available condos for sale have remained fairly stable around the 4700 level.

The 6 month moving average for the current period is showing an upward trend due to the closed sales declining.

The 9 month moving average trend is flat due to the declining closed sales.

The Naples condo market remains a strong buyers market. In the next couple of days more market condition reports will be posted here.

You may want to see a future graph depicting why purchasing a condominium residence should be a serious consideration at this time, if you are thinking about making a condo purchase.

August Activity:

Listings:

During the month of August 94 Bonita Springs condominiums were listed for sale. For the same month in 2007, 121 condominiums were listed for sale; this represents a decrease of 22.3 percent. The decrease from 2006 was 36.1 percent from the 147 new listings.

In July 2008 there were a total of 132 condominiums listed for sale and in June 124.

The available for sale Bonita Springs condominiums have dropped from 1354 in February 2008 to 1104 at the end of August. This represents a reduction of 250 Bonita Springs condos or 18.5 percent.

The number of months of inventory or the absorption rate is presently 28 months down from February’s 41 months.

Additional detailed information will be posted to explain where the listings and identification of where distressed properties and non-distressed properties are located for a better understanding of the Bonita Springs condo real estate market for both buyers and sellers.

Closed Sales:

A total of 28 condominiums were sold during August 2008. Comparing the same month in 2007 there were a total of 24 condominiums sold, the additional volume of 2 condominiums represents an increase of 16.7 percent. In August 2006 a total of 22 condominiums were sold or an increase of 27.3 percent (or 6 more condominiums).

In July 2008 a total of 54 condominiums closed or 26 fewer condominiums. In June 2008 30 condominiums closed or 2 fewer condos than in August.

Condominiums with a sales price of less than $100000 represented about 3.6 percent of the total 28 condominiums closed versus none in August 2007.

Condominiums with a sales price between $100000 and $200000 represented another 32.1 percent compared with 2007 where the percent was 4.2 percent.

Condos sold with sales price of between $200000 and $300000 represented 39.3 percent of the closings versus 20.8 percent in 2007.

Five developments within the Bonita Springs area accounted for 64.3 percent of the August condo closings – Lighthouse Bay at The Brooks (17.9 percent), Coconut Point (14.3 percent), Bonita Bay (10.7 percent), The Colony at Pelican Landing (10.7 percent), and Vasari Golf and Country Club (10.7 percent.

Distressed properties (short sales, pre-foreclosure, and foreclosures) represented 3.6 percent with median sold price of $500000.

Pending Sales:

In August 2008 29 condominiums 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 29 condominiums are close to the 30 condominiums in 2007, but an increase over the 20 condominiums (45.0 percent) in 2006.

August 2008 was lower than the 38 condominiums in July 2008 and lower than the 44 condominiums in June 2008.

Median Price Paid:

During the month of August the median price paid for a condo was $215000. In the previous year, 2007, the median price paid was $285000 or a reduction of 32.6 percent. In 2006 the median price was $319900 or reduction of 32.8 percent compared to August 2008.

Non-distressed condominium sold for median price of $231500, compared with a median sale price of $135000 for distressed (short sales, pre-foreclosure, and foreclosed) condos.

In July 2008 the median price paid was $250000 down 14.0 percent on a month to month basis.
Referring back to closed sales the areas comprising the largest percentage of closings in August shows the following:
Lighthouse Bay at The Brooks – $199000 a decrease in the median sold price of 53.2 percent from the 2007 median price of $425000.
Coconut Point – $267500 a reduction in the median sold price of 4.5 percent from the 2007 median price of $280000.
Bonita Bay – $340000 a decrease in the median sold price of 56.1 percent from the 2007 median price of $775000.
The Colony at Pelican Landing – $650000 an increase in the median sold price of 21.5 percent from the 2007 median price of $535000.
Vasari Golf and Country Club – $385000 an increase in the median sold price of 22.2 percent from the 2007 median price of $315000.

The analysis of the median price paid shows sellers and buyers should not only be aware of national, state, or area (city or town), but also by development or neighborhood values to make an informed decisions in the Bonita Springs condo real estate market.

August Activity:

Listings:

During the month of August 31 Estero condos were listed for sale. For the same month in 2007, 43 condos were listed for sale; this represents a decrease of 27.9 percent. The decrease from 2006 was 50 percent from the 62 new listings. In July 2008 a total 43 condos were listed for sale.

In February a total of 432 condominiums were available for sale. As of the end of August the number of condos available for sale has been reduced by 125 units or about 28.9 percent to 307 condos.

The number of months of condominiums for sale has decreased from February’s 38 months to 14 months as of the end of August.

Closed Sales:

A total of 22 condos were sold during August 2008. Comparing the same month in 2007 there were a total of 19 condos sold, the increase of 3 condos represents an increase of 15.8 percent. In August 2006 a total of 11 condos were sold an increase of 72.7 percent (or 8 more condos). In July 2008 a total of 15 condos closed or 7 less condos than in August.

Pending Sales:

In August 2008 25 condos were placed under contract or pended for closing, as a result of a seller and buyer agreeing to terms. The 25 condos is an increase over both the 13 condos in 2007 and 8 condos in 2006. August 2008 was higher than the 19 condos in July 2008 and exactly the same number as June 2008.

Median Price Paid:

During the month of August the median price paid for a condominium was $178000. In the previous year, 2007, the median price paid was $493800 or a decrease of 64.0 percent. In 2006 the median price was $300000 or reduction of 40.7 percent compared to August 2008.

In August 2007 a significant number of condominiums in Estero were sold in the The Residences of Coconut Point with prices ranging from $446675 to $762579. This single item caused the median price to be extremely high. Without the sales at The Residences of Coconut Point the median price would have been $319900.

August Naples Condo Activity:

Listings:

During the month of August 458 Naples condominiums were listed for sale. For the same month in 2007, 560 condominiums were listed for sale; this represents a decrease of 18.2 percent. The decrease from 2006 was 32.7 percent from the 680 new listings.

In July 2008 there were a total of 499 condominiums listed for sale.

The available for sale Naples condominiums have dropped from 5582 in February 2008 to 4675 at the end of August. This represents a reduction of 907 or 16.3 percent.

The number of months of inventory or the absorption rate is presently 29 months down from February’s 37 months.

Additional detailed information will be posted to explain where the listings and identification of where distressed properties and non-distressed properties are located for a better understanding of the Naples condo real estate market for both buyers and sellers.

Closed Sales:

A total of 157 condominiums were sold during August 2008. Comparing the same month in 2007 there were a total of 122 condominiums sold, the higher volume of 35 condominiums represents an increase of 28.9 percent. In August 2006 a total of 121 condominiums were sold or an increase of 29.8 percent (or 36 more condominiums).

In July 2008 a total of 155 condominiums closed or 2 more condominiums.

Condominiums with a sales price of less than $100000 represented about 9.3 percent of the total 157 condominiums closed versus 1.6 percent in August 2007.

Condominiums with a sales price between $100000 and $200000 represented another 35.4 percent compared with 2007 where the percent was 16.4 percent.
Condos sold with sales price of between $200000 and $300000 represented 20.5 percent of the closings versus 34.4 percent in 2007.

Eight developments within the Naples area accounted for 31.7 percent of the August condo closings – Park Shore (11.8 percent), Pelican Bay (4.3 percent), Vanderbilt Beach (3.1 percent), Cypress Woods Golf and Country Club (2.5 percent), Falling Waters (2.5 percent), Fiddlers Creek (2.5 percent), Pelican Marsh (2.5 percent), and Stratford Place (2.5 percent).

Distressed properties (short sales, pre-foreclosure, and foreclosures) represented 17.9 percent with median price of $135000.

Pending Sales:

In August 2008 200 condominiums 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 200 condominiums is an increase over the 110 condominiums (81.8 percent) in 2007 and 131 condominiums (52.7 percent) in 2006.

August 2008 was higher than the 155 condominiums in July 2008 and greater than the 173 condominiums in June 2008.

Median Price Paid:

During the month of August the median price paid for a condo was $215000. In the previous year, 2007, the median price paid was $285000 or a reduction of 32.6 percent. In 2006 the median price was $319900 or reduction of 32.8 percent compared to August 2008.

Non-distressed condominium sold for median price of $231500, compared with a median sale price of $135000 for distressed (short sales, pre-foreclosure, and foreclosed) condos.

In July 2008 the median price paid was $250000 down 14.0 percent on a month to month basis.

Referring back to closed sales the areas comprising the largest percentage of closings in August shows the following:

• Park Shore – $1425000 an increase in value of 46.2 percent from the 2007 median price of $957500.

• Pelican Bay – $572500 a reduction in value of 40.2 percent from the 2007 median price of $957500.

• Vanderbilt Beach – $950000 an increase in value of 60.3 percent from the 2007 median price of $592500.

• Cypress Woods Golf and Country Club – $149500 a reduction in value of 19.2 percent from the 2007 median price of $185000.

• Falling Waters – $173,700 a reduction in value of 15.3 percent from the 2007 median price of $205000.

• Fiddlers Creek – $279999 a reduction in value of 41.7 percent from the 2007 median price of $480000.

• Pelican Marsh – $422500 an increase in value of 1.8 percent from the 2007 median price of $415000.

Short sale condos had a median price of $180000, while foreclosed condos sold for a median price of $133000.

The analysis of the median price paid shows sellers and buyers should not only be aware of national, state, or area (city or town), but also by development or neighborhood to make an informed decisions in the condo real estate market.

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 115 Bonita Springs condos were listed for sale. For the same month in 2007, 145 condos were listed for sale; this represents a decrease of 20.7 percent. The decrease from 2006 was 32.8 percent from the 171 new listings. In May 2008 there were a total of 128 condos listed for sale. The lower number of new listings has an impact on the reduction of the number of months supply of available condos in the Bonita Springs, along with the activity of closed sales and pending sales. A graphic presentation of the number of months supply of condominiums in Bonita Springs will be posted shortly.

Closed Sales:

A total of 28 condos were sold during June 2008. Comparing the same month in 2007 there were a total of 38 condos sold, the reduction of 10 condos represents a decrease of 26.3 percent. In June 2006 a total of 42 condos were sold or decrease of 33.3 percent (or 14 fewer condos). In May 2008 a total of 59 condos closed or 31 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. Therefore, the Bonita Springs condo market might be slower than the overall state’s condo market, without considering the median price paid for condos.

Pending Sales:

In June 2008 41 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 41 condos is an increase over both the 40 condos in 2007 and 24 condos in 2006. June 2008 was below the 45 condos in May 2008 and 66 condos in April 2008.

Median Price Paid:

During the month of June the median price paid for a condominium was $347,500. In the previous year, 2007, the median price paid was $305,000 or an increase of 13.9 percent. In 2006 the median price was $390,750 or reduction of 11.7 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 increased while the overall state’s median price dropped meaning that condominiums are holding their value better than other parts of the State of Florida.

Quarterly Analysis:

Listings:

During the second quarter of 2008 a total of 406 condos were listed for sale.

During the second quarter of 2007 460 condos were listed. A reduction of 54 units or about 11.7 percent and a reduction of 133 condos listed from the 539 units in the same quarter of 2006 – about 24.7 percent reduction.

Closed Sales:

The volume of sold condos for the second quarter of calendar 2008 was 158 condos. Compared on a quarterly basis for the previous year, where 129 condos closed which represents an increase of about 22.5 percent. However, when looking at the second quarter in 2006, 151 units were closed for an increase of about 4.6 percent.

Pending Sales:

For the past three months a total of 148 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 – 30 to 60 days later, many of the pending sales would 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 from the day the short sale package is received by the lenders.

During the second quarter in 2007 a total of 132 condos were placed under contract or pended. The increase in pending sales for 2008 was 16 condos or an increase in 2008 of roughly 12.1 percent. In 2006 pending sales totaled 98 condos or increased 34.7 percent in 2008.

Median Sold Price:

The median sold price for a condominium in Bonita Springs during the second quarter of 2008 was $300,000 versus $325,000 in 2006 or price reduction of about 7.7 percent. The median price paid for a condominium in June 2006 was $405,000. Compared to 2008 the price reduction from 2006 is about 25.9 percent. For informational purposes calendar year 2006 had the highest median sold price of $397,250.

Summary:

The number of new listings for condominiums is showing a reduction in the volume from the previous two years. Closed sales are running slightly ahead of 2007 and 2006 – an increase during subsequent months might occur due to the timeframe needed for lender(s) approval of the sales price for a short sale. Pending sales are up substantially over both 2007 and 2006 for the second quarter of 2008 but lower in the year over year analysis for the month of June. The median sold price is down comparing the second quarter of 2008 to 2007, with the year over year analysis up.

June Activity:

Listings:

During the month of June 490 Naples condos were listed for sale. For the same month in 2007, 654 condos were listed for sale; this represents a decrease of 25.1 percent. The decrease from 2006 was 38.4 percent from the 795 new listings. In May 2008 there were a total of 556 condos listed for sale. The lower number of new listings has an impact on the reduction of the number of month’s supply of available condos in the Naples, along with the activity of closed sales and pending sales.

Closed Sales:

A total of 173 condos were sold during June 2008. Comparing the same month in 2007 there were a total of 204 condos sold, the reduction of 31 condos represents a decrease of 15.2 percent. In June 2006 a total of 191 condos were sold or decrease of 9.4 percent (or 18 fewer condos). In May 2008 a total of 216 condos closed or 43 fewer condos. 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. Therefore, the Naples condo market might be slower than the overall state’s condo market, without considering the median price paid for condos.

Condos priced below $300,000 represents about 56.2 percent of the total 173 condos closed in the month of June.

Pending Sales:

In June 2008 171 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 171 condos is an increase over both the 123 condos in 2007 and 153 condos in 2006. June 2008 was below the 230 condos in May 2008 and 258 condos in April 2008.

Median Price Paid:

During the month of June the median price paid for a condominium was $285,000. In the previous year, 2007, the median price paid was $310,500 or a reduction of 8.2 percent. In 2006 the median price was $369,900 or reduction of 22.3 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 less than the overall state’s median price meaning that condominiums are holding their value better than other parts of the State of Florida.

Quarterly Analysis:

Listings:

During the second quarter of 2008 a total of 1727 condos were listed for sale.
During the second quarter of 2007 2147 condos were listed. A reduction of 420 units or about 19.6 percent and a reduction of 758 condos listed from the 2485 units in the same quarter of 2006 – about 30.5 percent reduction.

Closed Sales:

The volume of sold condos for the second quarter of calendar 2008 was 638 condos. Compared on a quarterly basis for the previous year, where 673 condos closed which represents a reduction of about 5.2 percent. However, when looking at the second quarter in 2006, 622 units were closed for an increase of about 2.6%.

Pending Sales:

For the past three months a total of 657 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 – 30 to 60 days later, many of the pending sales would 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 from the day the short sale package is received by the lenders.

During the second quarter in 2007 a total of 517 condos were placed under contract or pended. The increase in pending sales for 2008 was 140 condos or an increase in 2008 of roughly 27.1 percent. In 2006 pending sales totaled 594 condos or increased 10.6 percent in 2008.

Median Sold Price:

The median sold price for a condominium in Naples during the second quarter of 2008 was $260,000 versus $320,000 in 2006 or price reduction of about 18.8 percent. The median price paid for a condominium in June 2006 was $380,000. Compared to 2008 the price reduction from 2006 is about 31.6 percent. For informational purposes calendar year 2005 had the highest median sold price of $360,000.

Summary:

The number of new listings for condominiums is showing a reduction in the volume from the previous two years. Closed sales are running slightly behind 2007 and 2006 – could be due to the timeframe needed for lender(s) approval of the sales price for a short sale. Pending sales are up substantially over both 2007 and 2006. The median sold price is down from the previous two years.

For someone looking to sell their condominium attention needs to be paid to its condition and establishing a price as close to its market value to facilitate its sale.

The number of months of inventory for Naples condominiums for sale has been significantly reduced since February 2008. Using the four time frames of 12, 9, 6 and 3 month moving averages. The 12 month moving average in February was calculated to be 37 months of Naples condos for sale. As of the end of June the calculation was 32 months or a reduction of 5 months. The 9 month moving average shows a reduction of 14 months, while the 6 month moving average shows a reduction of 20 months. The 3 month average shows a reduction in the months of Naples condos for sale of 16 months. At the end of June, there was a slight up tick of one month from May.

Click to Enlarge

The downward progression for the four moving averages reflects the volume of Naples condos sold or pending sale increasing (reduction of condos for sale) as well as the reducing volume of new condo listings coming on the market.

An absorption rate is defined in the glossary for real estate terms and defintions.

Buyers should be aware of the number of months of condominiums for sale in the Naples area to determine how the market is under going subtle changes and the reduction of the more select residences on the market for sale.

Sellers likewise should be mindful of the absorption rate, as they might want to determine the specific absorption rate for homes or condominiums on the market within their price range to reduce the number of days on market for their properties.

MORTGAGE RATES

Rates on 30-year mortgages rose again this week – to 6.45 percent – climbing to the highest level in more than nine months, reflecting concerns about how the Federal Reserve will respond to higher inflation pressures.

HOMESTEAD EXEMPTION

As county budgets shrink, officials are becoming more aggressive seeking out owners who lie about their living status in order to get a homestead exemption. If caught, a tax lien is typically placed on an owner’s property. The owner also faces a fine: 50 percent of the unpaid taxes for each year and interest at 15 percent per year.

FORECLOSURES

A series of lawsuits accuse mortgage lenders of disregarding bankruptcy laws. The lawsuits typically allege that mortgage-servicing firms mishandle borrower payments, triggering unwarranted late charges or defaults; bill homeowners for more than they owe; and charge for unneeded and expensive property insurance.

DOWNTOWN REVITALIZATION

The condo boom gave cities hope that they could revitalize downtown areas with a fresh mix of homes, stores and offices. When the real estate slowdown hit, however, plans went on hiatus, though officials hope for a payoff when things again turn around.