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.

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 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.