Today’s question from the email bag come from Michelle – “I am interested in renting a condo, however was a bit put off when the broker explained that the unit was in short sale but the lease would not be affected. It’s a great deal but does not sound too good to be true, I’ve heard horror stories in regards to short sales and don’t want to end being kicked out before the lease is up. Do you think it would be risky to go forward in renting this?”

There are some items which you need to research before making your final decision for renting the condo.
1) What does the actual leasing agreement say in regards to if the condo is sold?
2) Where will your security deposit and if required, your last month’s rent be held? Escrow or trust account? Or with the landlord?
3) What stage of the foreclosure process is the property in? If there a final judgment has been issued by the court – what is the auction date?
4) You should be fully be prepared to live in a fish bowl – you will have to be willing to have the condo shown. If you do not allow to be shown – then it could go into foreclosure.
5) What is the success rate of a property which is a potential short sale of actually being closed or sold? The success rate, expressed as a percentage, does vary from local area to local area.
6) How many short sales has the listing real estate agent listed and what percentage of them have succeeded in being closed or sold? Compare this percentage to the local area percentage to get some idea of the chances the property will be sold.
7) How many lien holders have liens against the property? With some condos at a minimum there will be first mortgage and the condominium association holding liens. The greater the number of lien holders, in most cases the less likely the property will be closed or sold. I have seen some condos having as many as 7 liens.

In order to say if it would be risky, the above questions need to be answered. Once you have obtained the answers you will be in a much better position to determine for yourself how risky the rental would be.

Glenn Ginsburg and A Delta Realty is providing this answer for informational purposes only and does not constitute any legal, accounting or tax advice. You are advised to consult an appropriate professional for legal, accounting and tax advice.

A question was asked yesterday “How far below peak would you guess homes and condos are in the Naples area?

Statistics for homes sold show the median sold price through June 30, 2010 in the Naples area to be $227500 down 52 percent from calendar year 2005 (the peak year) median sold price of $474450. The current median sold price is approximately the same as it was in 2002. The median sold price in 2010 has increased 17 percent over 2009’s, the median price sold of $195000.

Median Sold Prices for Homes by Year in Naples Florida

The statistics for the median sold price for condos in the Naples area through June 30, 2010 to be $165000 down 54 percent from calendar year 2005 (the peak year) median sold price of $360000. The current median sold price is approximately the same as it was in 2002. The median sold price in 2010 has increased less than 1 percent, which is insignificant.

Median Sold Prices by Year for Condos in Naples Florida

The condominium statistics of the Naples real estate market is showing stability for the median sold in a year over year analysis. The volume of closed sales is level with last year. The number of pending sales is higher than last year. The new listings of condos for sale showed a decline in the volume.

Median Sold Price:

During the month of June 2010, the median sold price of a condo in Naples was $164000. 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 June 2009, the median sold price was $165000. In the year over year comparison median sold price declined $1000 or less than one percent.

In June 2008 the median sold price was $276987. In comparing June 2008 to June 2009 the price declined $121500 or about 40 percent.

Although the median sold price declined in a year over year analysis of the market, the immediate past 12 month median sold price trend reveals an upward trend.

Closed Sales:

In the month of June 2010 the number of condos sold was 303. In June 2009 a total of 312 condos were sold. The year over year comparison was less than a 3 percent decrease. In June 2008 a total of 202 condos were sold. The increase over 2008 was 101 condos or about a 50 percent increase.

Of the 204 condos sold, approximately 18 percent were approved short sales, 15 percent were foreclosures, and the traditional sales were 67 percent.

Pending Sales:

During June 2010 a total of 338 condos had an offer accepted by the seller. In June 2009, 298 condos had offers accepted. The increase from June 2010 represents an increase of 40 condos or about 13 percent.

In June 2008 a total of 168 condos were pending sale. The increase between June 2010 and June 2008 was 170 condos or about 102 percent.

The total number of condos pending sale in the Naples area as of the end of June 2010 was 817.

Listings:

The new listings for the month of June 2010 were 566 condos in the Naples area. The number of condos listed in June 2009 was 609. The decline of new condo listings coming on the market condos was 7 percent. In June 2008, the new listings were 560, representing an increase of 6 condos or 1 percent.

The statistics of the Naples real estate market segment for single family homes should the median sold price of homes increased 24 percent over June 2009. The volume of homes sold increased slightly less than 1 percent and the number of new listings declined 6 percent in a year over year analysis. The number of months of homes to be sold declined to 9.8 months from June 2009’s 14.7 months.

Median Sold Price:

During the month of June 2010, the median sold price of a home in Naples was $245000. 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 the local Naples real estate market.

In June 2009, the median sold price was $198000. In the year over year comparison the median sold price increased $47000 or roughly 24 percent.

In June 2008 the median sold price was $345500. In comparing June 2008 to June 2010 the price declined $100500 or about 29 percent.

Closed Sales:

In the month of June 2010 the total homes sold was 421. In June 2009 a total of 419 homes were sold – very similar volume of sales. In June 2008 a total of 283 homes were sold. The increase over 2007 was 138 homes sold or about a 49 percent.

Of the 421 homes sold, 21 percent were approved short sales, 25 percent were foreclosures, and the traditional sales were 54 percent.

The breakdown of the median sold prices was discussed in the median sold price section above.

Pending Sales:

During June 2010 a total of 498 homes had an offer accepted by the seller. In June 2009, 512 homes were pended. The decline from June 2010 represents a decrease of 14 homes – an insignificant change.

In June 2008 a total of 278 homes were pending sale. The increase between June 2010 and June 2008 was 220 homes or 79 percent.

The total number of homes pending sale in the Naples real estate market is 1150, traditional sales account for 26 percent, foreclosures for 14 percent and short sales 60 percent. Traditional and foreclosures takes a shorter amount of time from offer acceptance to closing, while short sales can take about 6 months from the time of offer acceptance before they can close, if they do close – the reason for the high percentage of short sales in a pending sale status.

Listings:

The new listings for the month of June 2010 were 704 homes in the Naples real estate market. The number of homes listed in June 2009 was 750. The decrease in the number of new listings of homes was 46 or about 6 percent. In June 2008, the new listings were 820, representing a reduction of 116 homes or a decline of 14 percent compared with June 2010.

At the end of June a total of 3618 homes were for sale representing 9.8 months of homes to be sold. Traditional listings represented 75 percent, short sale 20 percent and foreclosures 5 per cent of the total listings.

In June 2009, 4104 homes were for sale representing 14.7 months of homes to be sold. The decline in the number of homes for sale is 486 or 12 percent, while the 4.9 month decline in months of home to be sold by 33 percent.

In June 2008, 5354 homes were for sale representing 30.5 months of homes to be sold. The decline in the number of homes for sale is 1736 or 32 percent, while the decline of 20.7 months, represents a decline of 68 percent.

The large decline in the months of homes to be sold is attributed to the increase volume of homes sold during the past months.

The months of homes to be sold is watched to determine the strength of the real estate market for both buyers and sellers. When the number of months is in excess of 6.5 months it is considered a buyers’ market, the higher the number of months the stronger the buyers’ market or the weaker the sellers’ position. When the number of months is less than 5.4 months, it is considered a sellers’ market, the lower the number of months the stronger the sellers’ market or the less favorable to a potential buyer. It is considered a neutral market when the number of months of homes to be sold is between 5.5 and 6.4 months.

The Naples real estate market for condos shows a stable median sold price at the end of May, while the months of inventory and available condos for sale are declining. The number of condos being purchased continues to increase over the previous 2 years. Pending sales are also higher than in the previous 2 years. Overall, the buyer’s market of the past 2 years continues to weaken, while the prices have remained stable.

Median Sold Price:

During the month of May 2010, the median sold price of a condo in Naples slightly decreased over the last May by less than 1 percent to $166666 from May 2009’s median sold price of $167000. (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 May 2008 the median sold price was $262500.

The year to date median sold price for 2010 continues at $165000. During 2009 the median sold was $164900. The median sold price of $165000 is nearly equivalent to the median sold price in 2002 of $166000. The important significance of the median sold prices is that 2002 was the year, just prior to when liberal loan guidelines came into vogue and caused the price as well as the demand for real estate to increase abnormal in the Naples real estate market, as well as, in other local real estate markets across the country.

Listings:

The new listings for the month of May 2010 were 714 condos in the Naples real estate market. The number of condos listed in May 2009 was 727. The decline of new condo listings coming on the market condos was 2 percent. In May 2008, the new listings were 846, representing a decline of 16 percent.

At the end of May 12.7 months of inventory existed. This compares very favorably with May 2009’s 25.4 months and May 2008’s 32.5 months.

The graph below shows the change in the months of inventory from January 2008 to the end of May 2010.

Condos available for sale at the end of May were 3842. The condos for sale have declined 17 percent from May 2009’s figure of 4634 and a decline of 24 percent from May 2008’s figure of 5055.

Of the 3889 condos listed approximately 12 percent were potential short sales, 2 percent were foreclosed (bank owned), and the remaining 86 percent were traditional listings.

The graph below shows the changes in the number of condos for sale in the Naples area.

The graph below shows the composition of listings according to the type of transaction.

Closed Sales:

In the month of May 2010 367 condos were sold. In May 2009 a total of 288 condos were sold. The year over year change was an increase of 27 percent increase. In May 2008 a total of 223 condos were sold. The change in the volume of condo sold was an increase of 65 percent.

Of the 367 condos sold, approximately 16 percent were approved short sales, 13 percent were foreclosures, and the traditional sales were 71 percent.

A graphic presentation for the composition of the closed sales is shown below.

Pending Sales:

During May 2010 a total of 360 condos had an offer accepted by the seller. In May 2009, 334 condos had offers accepted. The increase from May 2009 was 8 percent.

In May 2008 a total of 223 condos were pending sale. The increase between May 2010 and May 2008 was about 65 percent.

The total number of condos pending sale in the Naples area as of the end of May 2010 was 918.

The graph below reflects the composition of these pending sales.

The number of Lis Pendens (the formal notice that starts the foreclosure process) has steadily been declining in the Collier County and Naples area.

In October 2008 was the peak of filings with a total of 946 filings.

The graph shows the number of filings occurring on a monthly basis according to the Collier County Clerk of Courts office. The trend line shows the right leg of a normal bell curve which represents a downward trend in the number of foreclosure actions being filed.

In addition the graph shows the number of certificates of title issued by the county clerk’s office. More properties are continuing to be auctioned at the county courthouse and ownership changing by recording a certificate of title.

The question arises – Is the number of foreclosure actions really declining or is it a temporary decline? Some pundits have stated we can expect to see another flood of foreclosures hit the market. They are impart basing their thoughts on the fact in 2010, 3/1, 5/1, and 7/1 adjustable rate mortgages (ARM’s) will be resetting. 2010 is the only calendar year in which 3 different ARM’s are scheduled to reset. Through May 2010, the influx has not occurred. However, the number of property auctions taking place at the courthouse has not shown the downward trend at this time.

There are often discussions about a “shadow inventory”. What is a shadow inventory in real estate?

Definition 1 – Foreclosed but not listed.

Definition 2 – Homes in the foreclosure process as well as delinquent mortgages where foreclosure proceedings are imminent.

Definition 3 – All homes delinquent, short sales not on the market, REOs not on the market, and anything in the foreclosure process.

Definition 4 – All of the above plus modified loans (as they have a large percentage of failing anyway, pay option-arms about to be reset, and lots sitting idle with builders in trouble.

Based upon the graph it does appear a shadow inventory exists. The unanswered question is how large is this inventory? Unknown factors are how many modified loans have been successful, how many short sales have been successful, how many properties are being purchased at auction by individuals rather than the lenders, etc.?

The final observation is – how does this affect the months of inventory?

The months of inventory represents the number of months to sell the existing listings on the market based upon the average monthly sold properties for the immediate past 12 months for the local, state, or national real estate market. The statistic will vary from real estate market, as previously defined. A local real estate market for example would be the Naples area or Bonita Springs area. A state real estate market for example would be Florida. The national real estate market obviously is for the entire country. A prospective buyer or seller should be aware of the differences between the real estate markets, as the statistic varies.

If you have ever heard the terms buyer’s market or seller’s market the months of inventory this is the statistic assists in determining what type of market it is.

A neutral or balanced market is where the months of inventory is 5.5 to 6.4 months – commonly expressed as 6 months.

A buyer’s market exists when the months of inventory is equal to or greater than 6.5 months or commonly expressed as 7 months and more. With a buyer’s market there is numerous properties for sale and the sellers are more flexible with their price or the offer they will accept. Or, supply exceeds the demand. Basically, the buyer is in the driver’s seat.

A seller’s market exists when the months of inventory is equal to or less than 5.4 months or commonly expressed as 5 months or less. With a seller’s market there are fewer properties for sale and the sellers are less flexible with their price or the offer they will accept. Or, demand exceeds the supply. Basically, the seller is in the driver’s seat.

Is a lawsuit from your lender in the future a possibility after your short sale or foreclosure? Homeowners may find themselves in the possible tidal wave of lawsuits from lenders or mortgage holders against homeowners in the future as a way to recover losses when sales of homes involve a short sale or foreclosure when not enough money to pay the mortgage(s) in full, according to legal and real estate analysts.

“It will be a dramatic problem because the borrowers will not know it’s coming,” according to Frank Alexander, a law professor at Emory University in Atlanta, Georgia.

Laws vary from state to state. In Florida, banks have five years from the date of the sale to file for so-called deficiency judgments and up to 20 years to collect the short fall. Lenders can garnish wages or make claims on borrowers’ assets.

Previously, few lenders filed these lawsuits. Short sales and foreclosures – sell for less than the amount owed on the mortgage – were relatively few and many of the homeowners didn’t have sufficient resources to make it worth the bank’s time, expense and losses were not as significant as experienced in today’s real estate market.

It is not uncommon for some borrowers to purposely default on their mortgage(s) – strategic default – while still having substantial assets.

As the housing crisis continues, those most in danger of a lawsuit are homeowners who ransack or destroy properties they’re losing in foreclosure or borrowers who walk away from their mortgage. In both cases, analysts say, banks will want to discourage other people from such behavior.

More than 40% of homeowners said they would consider abandoning properties that are underwater, or worth less than the mortgages, according to a national online survey.

Typically, mortgage holders won’t sue homeowners who have a true financial hardship, negotiated in good faith, job loss, or an unforeseen negative financial circumstance, who default on their loans.

Borrowers should not rely on any lender’s verbal promises. Get something in writing and be sure you work with a competent attorney knowledgeable in real estate matters.

Remember it is a business decision – not an emotional decision for lenders. “You can’t get blood out of turnip.”

Even if lenders or investors don’t pursue lawsuits, they could sell at deep discounts the owed amounts to collection agencies.

A spokesperson from American Home Mortgage, stated when homeowners seeking short sales demonstrates a legitimate hardship, “we provide a full release of liability, and we do not pursue deficiency judgments.”

Homeowners considering a short sale or walking away from the property should always seek the advise of appropriate advisers – such as but not limited to attorneys, accountants or other financial adviser, as early as possible in the decision making process and during the actual process to guide them through the maze of landmines to ensure they are adequately protected.

Under new government guidelines – Homes Affordable Foreclosure Alternative Program (HAFA) for short sales that took effect on April 5 of this year, lender aren’t supposed to hold homeowners responsible for any remaining mortgage debt. But not all short sales fall under the guidelines. Some investors (owner of the mortgage) may not implement the guidelines.

A forgiven mortgage balance through 2012 is not considered taxable income on a primary residence as long as the debt was used to buy or improve the house. But borrowers who walk away from investment properties risk having to pay income taxes on the debt forgiven. Consult with your tax adviser to determine any income tax affects.

Homeowners who hand their properties back to the bank through a deed-in-lieu of foreclosure also should evaluate they will not be responsible for any unpaid amounts.

If you are on the looking for a reasonably priced property in Naples real estate market, you can find some great deals. These foreclosed properties are located in some of the best residential areas in Naples and are available at unbelievable prices to what they previously sold for, which makes them an ideal investment option for home or vacation home buyers or those buyers looking for a future retirement home.

Purchasing a foreclosed property in Naples has multiple advantages for prospective buyers. Buyers can now find a property in one of the best residential hot spots in the country at a moderate price (prices sometimes as low as 2001 or 2002).  Listed below are some of the reasons:

•         Known as one of the most sought after residential areas in Florida. Naples at this time offers a wide range of housing choices from family homes to condominiums which are located in excellent communities having top notch amenity facilities.

•         Being one of the most affluent area in the state of Florida as well as in the country, investing in a property will yield home buyers a high return over a period of time as the real estate prices of this area has had a steady appreciating value.

•         Another reason which makes the area an ideal choice for families as well as retired people is the presence of more than 100 golf courses which have been made through-out the Naples area.

Listed below is a guideline to landing a suitable property that will make a great investment for home buyers, both now and in the future:

•         Understand the process of buying a foreclosure is very important which is why buyers should get familiar with the buying of foreclosed homes by consulting a team member of A Delta Realty and real estate attorneys. If you are from outside the area, we can recommend several excellent real estate attorneys in the Naples area.

•         Foreclosed homes are available for 50 percent or more below their prices in 2005 (the high point), while foreclosed condos are available for 55 percent below the 2005 prices. Locating the best deals will take perseverance and being aware the lowest priced property maybe not be the best investment in the long run. One of your best resources is a team member of A Delta Realty.

•         The process of purchasing a foreclosed home or condo requires considerable knowledge and skill, as well as an attorney specializing real estate.

•         Once you have narrowed your search for a property have the property inspected by home inspector and consider a radon gas test, air quality test, and termite or wood destroying organism inspection.

•        Investigate the financial status of any association where the property is located to determine its financial viability. Some property associations are under financial stress, which could cause your great deal to be very costly in the long run.

•         Have the property reviewed for code compliance – some properties are in violation of local codes. If you acquire a property with code violations you will be responsible for the curing the violation which could involve costs to renovate, re-mediate, or payment of fines.

•         Finally, be prepared to act quickly on a property and be mindful not only are you looking for a great deal, but others are looking for a great deal, as well. Remember – “The early bird catches the worm.”

There are a host of benefits that are associated with buying a property through a member of the A Delta Realty Team. When you meet with one of our team members ask for our exclusive FREE whitepaper “What to Watch for When Buying Foreclosed Properties.”

This morning this email was received in the email inbox:

subject Hello It’s urgent!?

Hi,

How are you today? i am sorry i did not inform you about my travel to Malaysia, It has been a very sad and bad moment for me that the condition i found myself is so bad to explain.I am stranded in Malaysia because I forgot my little bag in a taxi where my Credit card,all the money i have with me and some important documents are,i am so confussed right now that i do not know what to do or where to go.Please i need your urgent help to send some money to me so that i could be able to come back home.

Please i need the sum of $2,850 USD as a loan to enable me sort-out myself and confirm my Basic Travelling Allowance fees back home,but if you cannot come up with all the requested amount due to the short notice, kindly go ahead and send me any amount you can and email me the transfer details. I will be so grateful to receive it and i promise to pay back the money to you as soon as am back home.

Kindly understand that i am in a very tight and horrible situation at the moment that i could not even afford to take a good meal due to the fact that i do not have a cent with me. I know you will never disappoint me and that is why i have to contact you in this regard and please as you endeavor to help me with this money i don’t mean you should disclose my predicament to anybody for my personal reasons till when am successfully back home. However,it is not compulsory you will send me the money but if my situation and our good relationship touches you quickly proceed to any of the western union money transfer local stores or post office around you and transfer me the money as soon as you have received this emergency appeal.Western union money transfer is the most convenience and safety way to receive money here without any delay or problem.

Below is my information where to send the money to me through western union.

Receivers
Address;KUALA LUMPUR , MALAYSIA
Country: Malaysia
Amount Needed: $2,850 USD

After you have sent the money, kindly email me the western union transfer details such as:
MTCN(Money transfer control number)
Test Question:, Answer and MTCN NUMBER.
Amount Needed: $2,850 USD

I will check my email soonest to pick up the western union transfer details to enable me come back home with the next available flight and i will need the transfer # MTCN (money transfer control number) as soon as possible.

Thanks,

The key hints this email was a scam was the spelling errors, the use of lower case i rather than an upper case I when the alleged person was referring to themselves, and punctuation.

Please be aware of this type of scam. It has been the second time an email has been received.

The Naples condo market during the month of April showed significant improvement in a year over year comparison. The median sold price increased 9 percent, closed sales increased 76 percent, pending sales increased 76 percent, and the number of condos for sale declined 22 percent. Still a buyer’s market, but much weaker than last year.

Median Sold Price:

During the month of April 2010, the median sold price of a condo in Naples increased over the last April by 9 percent to $179000 from April 2009’s median sold price of $164900. The $179000 median sold price is the highest since December 2008. (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 April 20087 the median sold price was $248000.

The year to date median sold price for 2010 is presently $165000. During 2009 the median sold was $164900. The median sold price of $165000 is nearly equivalent to the median sold price in 2002 of $166000. The important significance of the median sold prices is that 2002 was the year, just prior to when liberal loan guidelines came into vogue and caused the price as well as the demand for real estate to increase abnormal in the Naples real estate market.

Median Sold Prices for Naples Condos 2008 to 2010

Listings:

The new listings for the month of April 2010 were 651 condos in the Naples real estate market. The number of condos listed in April 2009 was 695. The decline of new condo listings coming on the market condos was 6 percent. In April 2008, the new listings were 734, representing a decline of 11 percent.

Condos available for sale at the end of April were 3889. The condos for sale have declined 22 percent from April 2009’s figure of 4954 and a decline of 27 percent from April 2008’s figure of 5323.

Of the 3889 condos listed approximately 11 percent were potential short sales, 2 percent were foreclosed (bank owned), and the remaining 87 percent were traditional listings.

The graph below shows the changes in the number of condos for sale in the Naples area.

Number of Naples condos for Sale at the end of April 2010

The graph below shows the composition of listings according to the type of transaction.

April 2010 Composition of Naples condos for Sale

Closed Sales:

In the month of April 2010 the number of condos sold was 469, the highest in the immediate past 4 years. In April 2009 a total of 267 condos were sold. The year over year change was an increase of 76 percent increase. In April 2008 a total of 243 condos were sold. The change in the volume of condo sales is an increase of 93 percent.

Of the 469 condos sold, approximately 11 percent were approved short sales, 12 percent were foreclosures, and the traditional sales were 77 percent.

A graphic presentation for the composition of the closed sales is shown below.

Composition of Naples Condos Sold in April 2010

Pending Sales:

During April 2010 a total of 554 condos had an offer accepted by the seller and was the second highest month in the past 4 years only eclipsed by March 2010 – 624. In April 2009, 267 condos had offers accepted. The increase from April 2009 was 76 percent.

In April 2008 a total of 243 condos were pending sale. The increase between April 2010 and April 2008 was about 122 percent.

The total number of condos pending sale in the Naples area as of the end of April 2010 was 1082.

The graph below reflects the composition of these pending sales.

Composition of Naples Condos Pending Sale for April 2010

Preliminary statistics for the month of April for the Estero real estate market shows the local market is continuing is slowly recovering. The market is showing a decline in the months of inventory available for sale, pending sales increasing, and closed sales increasing. The median sold price for Estero homes decreased slightly from last April, while Estero condos were sold at a higher median sold price than last year. The buyers’ market is remains; however, it continues to erode.

ESTERO HOMES:

Homes available for sale, as of April 30 – totaled 288. Of this total 68 were potential short sales, and 6 were foreclosures. This translates to 9.3 months of inventory (normal market is between 5 and 7 months) versus last year 20.1 months and last month’s 9.9 months. This statistic most clearly reflects the higher level of sales activity of homes in the Estero area. A 12 month moving average is used to calculate the closed sales, which is divided into the currently available homes for sale.

A total of 34 homes closed in April. Last April a total of 17 homes were closed.

Pending sales for the month of April was 57 homes versus last April’s figure of 48 homes.

The median sold price for a single family home in the Estero in April was $232500 in a year over year comparison April 2009 saw the median sold price at $235800.

An indicator of future closed sales in addition to the current month’s pending sales is the total number of pending sales. The total number of pending sales includes not only the current month (57), but also an accumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of April was 135 homes. Of the 135 homes, 81 were potential short sales and 15 were foreclosed homes (bank/lender owned).

ESTERO CONDOS:

Condos available for sale as of April 30 – totaled 229. Of this total 37 are potential short sale condos and 6 are foreclosures. This translates to 10.1 months of inventory versus last year’s 18.8 months and last month’s 10.4 months of inventory.

A total of 33 condos closed in April versus last April where 22 condos were sold.

Pending sales for the month of April was 38 versus last April’s figure of 31.

The median sold price for a condo in the Estero area was $150000 compared to last year’s median of $140250.

An indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In April a total of 94 condos were pending sale. Of this number, 58 were potential short sales and 8 foreclosures.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of April. The April data is preliminary at this time, the final statistics are generally available on the fifth business after the end of the previous month.

Other southwest Florida real estate markets have been updated for the Naples real estate market and Bonita Springs real estate market.

Preliminary statistics for the month of April for the Bonita Springs real estate market shows the local market is continuing to recover. The market is showing a decline in the months of inventory available for sale, pending sales increasing, and closings increasing in a year over year analysis. The median sold price for Bonita Springs homes increased from last April, while Bonita Springs condos showed a reduction. The buyers’ market is remains; however, it continues to erode.

HOMES:

Homes available for sale, as of April 30 – totaled 790. Of this total 112 were potential short sales, and 29 were foreclosures. This translates to 13.6 months of inventory (normal market is between 5 and 7 months) versus last year 23.6 months and last month’s 14.4 months. This statistic most clearly reflects the higher level of sales activity of homes in the Bonita Springs area. A 12 month moving average is used to calculate the closed sales, which is divided into the currently available homes for sale.

A total of 84 homes closed in April. Last April a total of 70 homes were closed.

Pending sales for the month of April was 108 homes versus last April’s figure of 73 homes.

The median sold price for a single family home in the Bonita Springs in April was $345000 in a year over year comparison April 2009 saw the median sold price at $294950.

An indicator of future closed sales in addition to the current month’s pending sales is the total number of pending sales. The total number of pending sales includes not only the current month (108), but also an accumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of April was 203 homes. Of the 203 homes, 86 were potential short sales and 91 were foreclosed homes (bank/lender owned).

CONDOS:

Condos available for sale as of April 30 – totaled 840. Of this total 67 are potential short sale condos and 18 are foreclosures. This translates to 14.5 months of inventory versus last year’s 28.6 months and the previous month’s 15.2 months of inventory.

A total of 94 condos closed in April versus last April where 66 condos were sold.

Pending sales for the month of April was 96 versus last April’s figure of 64.

The median sold price for a condo in the Bonita Springs area was $220000 compared to last year’s median of $231500.

An indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In April a total of 203 condos were pending sale. Of this number, 109 were potential short sales and 79 foreclosures.

Other southwest Florida real estate markets have been updated for the Naples real estate market and Estero real estate market.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of April. The April data is preliminary at this time, the final statistics are generally available on the fifth business after the end of the previous month.

Preliminary statistics for the month of April for the Naples real estate market shows the local market is continuing to recover. The market is showing a decline in the months of inventory available for sale, pending sales increasing, closed increasing, and the median sold price increasing from last April. The buyers’ market is remains; however, it continues to erode.

HOMES:

Homes available for sale, as of April 30 – totaled 3621. Of this total 647 were potential short sales, and 127 were foreclosures. This translates to 10.0 months of inventory (normal market is between 5 and 7 months) versus last year 18.6 months and last month’s 10.5 months. This statistic most clearly reflects the higher level of sales activity of homes in the Naples area. A 12 month moving average is used to calculate the closed sales, which is divided into the currently available homes for sale.

A total of 393 homes closed in April. Last April a total of 344 homes were closed.

Pending sales for the month of April was 729 homes versus last April’s figure of 564 homes.

The median sold price for a single family home in the Naples in April was $247500 in a year over year comparison April 2009 saw the median sold price at $183028.

An indicator of future closed sales in addition to the current month’s pending sales is the total number of pending sales. The total number of pending sales includes not only the current month (729), but also an accumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of April was 1442 homes. Of the 1442 homes, 765 were potential short sales and 184 were foreclosed homes (bank/lender owned).

CONDOS:

Condos available for sale as of April 30 – totaled 3889. Of this total 423 are potential short sale condos and 90 are foreclosures. This translates to 13.4 months of inventory versus last year’s 28.0 months and months 14.6 months.

A total of 443 condos closed in April versus last April where 267 condos were sold.

Pending sales for the month of April was 541 versus last April’s figure of 397.

The median sold price for a condo in the Naples area was $185000 compared to last year’s median of $164900.

An indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In April a total of 1082 condos were pending sale. Of this number, 540 were potential short sales and 88 foreclosures.

Other southwest Florida real estate markets have been updated for the Estero real estate market and Bonita Springs real estate market.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of April. The April data is preliminary at this time, the final statistics are generally available on the fifth business after the end of the previous month.

Of interest to prospective buyers of homes in the Naples area is the annual median sold price. (A previous post – Naples Median Sold Prices – Condos is for condominiums.)

Below is a chart showing the annual median sold price for homes in the Naples area for the years 1998 to 2009 with results for the 2010 quarter ending March 31, 2010.

Annual Median Sold Prices for Naples Homes

The height for the median sold price occurred in 2005, when the median sold price hit $474450. For 2009, the median sold price was $195000, which represents a decline of about 59 percent – more than half the price.

Year-to-date March 31, 2010 the median sold price rose from 2009’s $195000 to $225000 or roughly a 15 percent increase.

The median sold price for 2009 compares most closely with the median sold price in 2000 of $190000. While the year-to-date median price for 2010 compares with the price paid in 2002.

During the years 1998 to 2002, represent what is the normal appreciation, due to the availability of liberal and exotic loan programs in 2003 through August 2007.

Depending if another wave of foreclosures does not occur – 2009 could represent the bottom of the market price wise for homes in the Naples area, as 2010 is approximately 2002 values.

Questions often asked by prospective buyers are;  What are yearly price trends for condos in the Naples area? When was the peak for prices paid for condos? How much has the median sold price of condos declined?

In order for a prospective buyer to answer these questions, the chart below will assist them. The median sold prices of a condo covers the years 1998 through 2009, along with the first quarter ended March 31, 2010.

Median Sold Prices of Naples Condos by Year

The height of the market occurred in 2005, when the median sold price was $360000. The median sold price for 2009 was $164900. Therefore, the drop in the median sold price equates to approximately 54 percent.

The median sold price in 2009 comes very close to the $166000 median sold price in 2002. For the most part, 2003 through 2007, were the years when liberal and exotic loan programs were used to purchase real estate and created the real estate boom.

Periodically, the chart will be updated as the year progresses to inform both buyers and sellers where the median price has been and to determine if the trend is remaining the same, increasing or declining.

The Estero real estate market for the month of March is showing improvement, but still not showing the strength as exhibited by the Naples real estate market. The buyer’s market continues and it is weaker than last year.

HOMES:

Homes available for sale, as of March 31 – totaled 303. Of this total 61 were potential short sales, and 9 were foreclosures. This translates to 10.1 months of inventory (normal market is between 5 and 7 months) versus last year 22.5 months. This statistic most clearly reflects the higher level of sales activity of homes in the Estero area.

A total of 32 homes closed in March, over last year’s closings of 25 homes.

Pending sales for the month of March was 60 homes versus last March’s figure of 46 homes.

The median sold price for a single family home in the Estero in March was $254950 in a year over year comparison March 2009 saw the median sold price at $242000.

An indicator of future closed sales in addition to the current month’s pending sales, is the total number of pending sales. The total number of pending sales includes not only the current month (60), but also an accumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of March was 135 homes. Of the 135 homes, 82 were potential short sales and 14 were foreclosed homes (bank/lender owned).

CONDOS:

Condos available for sale as of March 31 – totaled 226. Of this total 32 are potential short sale condos and 5 foreclosures. This translates to 10.8 months of inventory versus last year’s 19.2 months.

A total of 21 condos closed in March versus last March where 16 condos were sold.

Pending sales for the month of March was 41 versus last March’s figure of 34.

The median sold price for a condo in the Estero area was $125000 compared to last year’s median of $133950.

The indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In March a total of 109 condos were pending sale. Of this number, 69 were potential short sales and 7 foreclosures.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of March.  The March data is primarily at this time, the final statistics are generally available on the fifth business after the end of the previous month.

The Bonita Springs real estate market for the month of March is strengthening. The buyer’s market continues, however, it weakening especially since last year.

HOMES:

Homes available for sale, as of March 31 – totaled 822. Of this total 103 were potential short sales, and 26 were foreclosures. This translates to 14.8 months of inventory (normal market is between 5 and 7 months) versus last year 26.3 months. This statistic most clearly reflects the higher level of sales activity of homes in the Bonita Springs area.

A total of 62 homes closed in March, which was the same number of closings last year.

Pending sales for the month of March was 126 homes versus last March’s figure of 84 homes.

The median sold price for a single family home in the Bonita Springs in March was $297500 in a year over year comparison March 2009 saw the median sold price at $312000.

An indicator of future closed sales in addition to the current month’s pending sales, is the total number of pending sales. The total number of pending sales includes not only the current month (126), but also an accumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of March was 221 homes. Of the 221 homes, 93 were potential short sales and 31 were foreclosed homes (bank/lender owned).

CONDOS:

Condos available for sale as of March 31 – totaled 848. Of this total 70 are potential short sale condos and 11 foreclosures. This translates to 15.6 months of inventory versus last year’s 29.5 months.

A total of 70 condos closed in March versus last March where 62 condos were sold.

Pending sales for the month of March was 135 versus last March’s figure of 110.

The median sold price for a condo in the Bonita Springs area was $203750 compared to last year’s median of $225000.

The indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In March a total of 243 condos were pending sale. Of this number, 114 were potential short sales and 19 foreclosures.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of March.  The March data is primarily at this time, the final statistics are generally available on the fifth business after the end of the previous month.

The Naples real estate market for the month of March is continuing to show strengthening. The buyer’s market continues, however, it weakening especially since last year.

HOMES:

Homes available for sale, as of March 31 – totaled 3784. Of this total 659 were potential short sales, and 136 were foreclosures. This translates to 10.8 months of inventory (normal market is between 5 and 7 months) versus last year 21.1 months. This statistic most clearer reflects the higher level of sales activity of homes in the Naples area.

A total of 366 homes closed in March. Last March a total of 318 homes were closed.

Pending sales for the month of March was 700 homes versus last March’s figure of 575 homes.

The median sold price for a single family home in the Naples in March was $244000 in a year over year comparison March 2009 saw the median sold price at $177200.

An indicator of future closed sales in addition to the current month’s pending sales, is the total number of pending sales. The total number of pending sales includes not only the current month (700), but also an cumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of March was 1370 homes. Of the 1370 homes, 735 were potential short sales and 185 were foreclosed homes (bank/lender owned).

CONDOS:

Condos available for sale as of March 31 – totaled 4036. Of this total 426 are potential short sale condos and 83 foreclosures. This translates to 14.9 months of inventory versus last year’s 29.9 months.

A total of 377 condos closed in March versus last March where 263 condos were sold.

Pending sales for the month of March was 627 versus last March’s figure of 465.

The median sold price for a condo in the Naples area was $165000 compared to last year’s median of $164000.

The indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In March a total of 1141 condos were pending sale. Of this number, 529 were potential short sales and 81 foreclosures.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of March.  The March data is primarily at this time, the final statistics are generally available on the fifth business after the end of the previous month.

The condominiums for sale in Naples continue to show signs of improvement. While still a buyer’s market, the number of condos available for sale increased slightly while the months declined from the previous month.

The month of March started with 4155 condos available for sale in the Naples area. Last March 5207 condos were for sale in a year over year comparison it is a decline of 1052 condos available for sale. This represents a decline of about 20 percent. The month of February started with 4114 condos for sale 41 fewer condos than March.

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

Number of Naples condos for sale at the start of March

The months of inventory, measures the current demand for condos, in addition, 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 March was 15.8 months compared to start of last March where there were 30.3 months of inventory. The decline in the months of inventory is about 48 percent representing another sign of the real estate market for condos in Naples is continuing to improve. In addition, the March months of inventory slightly declined from February’s 16.0 months.

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

Months of inventory for Naples condos for sale at the start of March

The composition of the condos for sale in Naples (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 March.

Composition of Naples condos for sale at the start of March

The homes for sale in Naples continue to show signs of improvement. While still a buyer’s market, the homes available for sale increased slightly as well as the months of inventory over the month previous month.

The month of March started with 3890 homes available for sale in the Naples area. Last March 5298 homes were for sale in a year over year comparison it is a decline of 1408 homes available for sale. This represents a decline of about 27 percent. The month of February started with 3814 homes for sale 76 fewer homes than March.

The graph below shows the number of homes for sale in Naples between the years of 2008 thru 2010.

Naples homes for sale at the start of March

The months of inventory, measures the current demand for homes, in addition, 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 March was 11.2 months compared to start of last March where there were 22.6 months of inventory. The decline in the months of inventory is about 50 percent representing another sign of the real estate market for homes in Naples is continuing to improve.

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

Months of inventory for Naples homes for sale

The composition of the homes for sale in Naples (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 March.

Composition of Naples homes for sale at the start of March

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 condos for sale in Naples 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 4114 condos available for sale in the Naples area. In a year over year comparison it is a decline of 1028 from last February’s 5142. This represents a decline of about 20 percent.

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

Naples Condos for Sale - Comparison 2008 thru 2010

The months of inventory, a measure of judging current demand for condominium housing, 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 16.1 months compared to start of last February where there were 30.0 months of inventory. The decline in the months of inventory is about 46 percent representing another sign of the real estate market for condos in Naples is continuing to improve.

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

Naples Condos for Sale Months of Inventory 2008 to 2010

The composition of the condos for sale in Naples (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 listings at the start of February.

Composition of Naples Condos for Sale at the Start of February 2010