Home Valuation Code of Conduct Changes Effective May 1, 2009

The Federal Housing Financing Agency’s Home Valuation Code of Conduct (Code, or HVCC) will be effective on May 1, 2009, and will require that the lender order the appraisal. The intent of the Code is to help ensure that borrowers, homebuyers and secondary mortgage market investors receive fair and independent property valuations.

During the month of February 2009 a total of 228 homes were sold with a median sold price of $211,300 for the Naples area.

The number of homes sold when compared with February 2008 shows an increase in sales volume of 85 homes or roughly 59.4 percent.

The February 2009 homes sold also represents an increase over February 2007 by 81 homes or roughly 55.1 percent.

In addition the 2009 homes sold figure is 25.3 percent higher than February 2006 by 46 homes.

The median price of a single family home sold in the Naples area does reflect a devaluation from the median sold price of $400,000 in February 2007 or $188,700, which translates to roughly 47.2 percent.

In February 2006 the median sold price was $445,000. The devaluation is $233,700 or roughly 52.5 percent.

The $211,300 median sold in February is higher than the median price paid in the months of November, December and January, where the median sold prices were $204,000, $204,500, and $188,200, respectively.

Noteworthy is that the areas of Golden Gate Estates ($102,500), Golden Gate City ($79,900), Naples Park ($184,000) and Naples Manor ($60,000), where there is a high volume of foreclosures and potential short sales when removed from the sold homes the median sold price was $395,000 in the Naples area or roughly 34.7 percent from the median sold price in February 2008, when deducting the above referenced areas. The median sold prices for the referenced areas are shown in parenthesis.

For buyers the above data is important to keep in mind when looking for homes in the Naples area.

Within the immediate 4 months of median sold prices relatively close, it could suggest that prices are bouncing at the bottom of the market. The bottom of the market can be impacted by the current economic conditions being experienced without the United States.

Pending sale for the month of February 2008 was 484 homes. A pending sale is where a seller and buyer have agreed to both price and terms to sell the home and has been removed from the homes available for sale. The 484 pending home sales was the highest since May 2005. Over the past four months there has been a steady increase in the number of pending sales. Pending sales represent future sales of homes.

New listings coming on the market in February was 848 homes which is less than in previous February’s dating back to 2006. In February 2008 – 996; February 2007 – 1002; and February 2006 – 1,139.

In summary, the month of February the number of homes closed increased over the prior three years, median sold price has declined from previous years but the largest declines are in four neighborhoods, the volume of pending sales is the highest since May 2005, and fewer new listings came on the market than in the past three years.

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 117 Bonita Springs homes were listed for sale. For the same month in 2007, 149 homes were listed for sale; this represents a decrease of 21.5 percent. The increase from 2006 was 10.7 percent from the 131 new listings. In July 2008 there were a total of 110 homes listed for sale and in June 129 homes.

Potential short sale homes listed in August was 12 or 10.3 percent and 6 homes or 5.1 percent are listed as a foreclosure, REO or bank owned.

Village Walk of Bonita Springs had the largest number of potential short sales – 4 with a median list price of $227500. The remaining potential short sale homes were listed in numerous developments.

The Bonita Springs homes listed as foreclosures were spread through various developments.

The inventory of available Bonita Springs homes for sale in February was 1201 homes or about 33 months. At the start of August the inventory had dropped by 217 homes or 18.1 percent to 984 homes or about 26 months.

Closed Sales:

A total of 32 Bonita Springs homes were sold during August 2008. Comparing the same month in 2007 when a total of 35 homes sold, represents a decrease of 8.6 percent. In August 2006 a total of 28 homes were sold or an increase of 14.3 percent (or 4 more homes).

In July 2008 a total of 42 homes closed or 10 more homes than in August. In June 2008 Bonita Springs homes saw 42 homes closed or 14 less homes than in August.

Four developments comprised 37.5 percent of the closed sales in August:
Shadow Wood at The Brooks had 5 closings or 15.6 percent, Bonita Bay with 3 (9.4 percent), Copperleaf at The Brooks with 2 (6.3 percent) and San Remo at Palmira with 2 (6.3 percent).

Pending Sales:

In August 2008 45 homes were placed under contract or pending for closing, pending sales are where a home is no longer on the market for sale. The 45 homes is an increase over both the 23 homes in 2007 and 22 homes in 2006.

August 2008 pending sales were the same in July 2008 and 1 fewer home than in June 2008 with 46 pending sales.

Median Price Paid:

During the month of August the median price paid for a home was $435000. In the previous year, 2007, the median price paid was $578000 or a decrease of 24.7 percent. In 2006 the median price was $440000 a decrease of 1.1 percent compared to August 2008.

The four developments with the largest number of sales as noted above reflected the median sold prices with comparative sold prices for 2007 as follows:

Shadow Wood at the Brooks had a median sold price of $1275000 versus a median price in 2007 of $907500, Bonita Bay’s median sold price was $1235000 versus $1037500, Cooperleaf at The Brooks had a median price of $572500 compared with the 2007 median price of $540000, and San Remo at Palmira the median price paid was $223000 with no sales in 2007.

Three of the developments are seeing an increase in the median price paid, however the median price decreased from last year. The reason can be seen by analyzing the composition of homes sold. In 2008, 15 homes (45 percent of the total homes sold) were sold with a sales price of less than $300000. In 2007, 10 homes or 26 percent of the total homes sold were less than $300000. In both 2008 and 2007 7 Bonita Springs homes sold for more than one million dollars.

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.

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.

Hurricane Ike’s cone is still showing it is tracking to south and west. For the Naples, Bonita Springs and Estero areas of Florida it means the center of the storm may pass within about 200 miles of the coastline which disminishes the chances of the area feeling the full brunt of Ike.

The track towards the south does not help our friends in the Gulf Coast areas as the storm appears it will not pass over the mountainous areas of Cuba. It the storm passes over the mountainous areas of Cuba the storm will weaken. Currently the storm is a CAT-4 with winds of 145 mph.

The Florida Keys have started evacuations and hurricane preparations.

Hurricane Ike’s projected path as of this morning shows the cone just south the Naples area. This is better positioning than yesterday mornings projected path and cone. The Naples area may not be affected by Hurricane Ike. With this cone it does appear that Bonita Springs or Estero areas will have any affects from the hurricane. However it is advisable to prepare for the worst and hope for the best.

Updates will be posted throughout the day on this blog.