Tivoli Model in Caldecott Under Construction at Lely Resort

The other day I toured the Caldecott neighborhood of Lely Resort and saw a Tivoli model home under construction. A home which has no specific buyer and being constructed by a builder is called a “spec” home.

It was quite interesting to see a home under construction, although most of the major work had already been completed, there was still finishing work to be done, as well as, finishing of the pool and spa and the addition of the screened dome or pool cage.

The home has about 2723 square feet of air conditioned space and has a wide lake view from the master bedroom, breakfast nook, lanai and pool area.

The Naples condos market is not as strong a buyer’s market as last year both the number of condos listed for sale and months of inventory is lower than last year. With the reduction of condos for sale and the lower months of inventory, it still remains a strong buyers’ market.

As of the first of January there were a total of 3988 condos for sale. At the start of January 2009 a total of 4939 condos were listed for sale. This represents a reduction of 951 condos or roughly 19 percent.

Below is a graph depicting the change in the number of condos for sale at the end of the month for the immediate past 2 years.

Number of Naples condos for sale over 2 years

Another measure of the changing market is the months of inventory available for sale. This year the months of inventory is 16.5 months. Last year the inventory was 28.7 months. This is a reduction of 12.2 months in a year over year analysis. Buyers and sellers should monitor this statistic – months of inventory of less than 6 is a seller’s market (demand exceeds supply), while an inventory more than 6 is a buyer’s market (supply exceeds the demand).  A neutral market is 6 months – is when the market is in balance – demand and supply are equal.

Below is a graph showing the months of inventory during the past two years.

Naples condo inventory for sale over 2 years

Another important aspect of Naples condos for sale is the composition of the various types of listings.

Traditional listings are condos for sale which is neither bank owned nor a seller attempting a short sale. This is what typical occurred prior to the real estate bubble bursting.

Foreclosures are condos listed for sale and are bank owned properties.

Short sales are listings where the seller a property owner (seller) is attempting to sell the condominium and the value of the condominium is such that when the condo is sold, the seller does not have the funds or resources to cover the short fall (difference) between sales price and the amount of the mortgage owed to the lender(s) nor the closing costs associated with the sale. This type of sale requires the approval of all parties holding a lien against the property.

The composition of listings is only one part of the equation in looking at a local real estate market. The other stages – pending sales and closed – are important to consider in determining the strength or weakness of the local real estate market.

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

Composition of Naples condos for sale

The real estate market in Naples for single family homes is not as strong a buyer’s market as last year both the number of homes listed for sale and months of inventory is lower than last year. Buyers and sellers need to monitor the months of inventory to determine how favorable or not favorable the market is for them.

As of the first of January there were a total of 3,630 homes for sale. At the start of January 2009 a total of 5,296 homes were listed for sale. This represents a reduction of 1,666 homes or roughly 32 percent.

Below is a graph depicting the change in the number of homes for sale at the end of the month for the immediate past 2 years.

Two year number of Naples homes for sale by month

Another measure of the changing market is the number of inventory available for sale. This year the months of inventory is 10.8 months. Last year the inventory was 24.3 months. This is a reduction of 13.5 months in a year over year analysis. Buyers and sellers should monitor this statistic – months of inventory less than 6 is a seller’s market (demand exceeds supply), while an inventory more than 6 is a buyer’s market (supply exceeds the demand).  A neutral market is 6 months – is when the market is in balance – demand and supply are equal.

Below is a graph showing the months of inventory during the past two years.

Months of inventory by month over the past 2 years.

Another important aspect of Naples homes for sale is the composition of the various types of listings.

Traditional listings are homes for sale which is neither bank owned nor a seller attempting a short sale. This is what typical occurred prior to the real estate bubble bursting.

Foreclosures are homes listed for sale and are bank owned properties.

Short sales are listings where the seller a property owner (seller) is attempting to sell the property and the value of the property is such that when the property is sold, the seller does not have the funds or resources to cover the short fall (difference) between sales price and the amount of the mortgage owed to the lender(s) nor the closing costs associated with the sale. This type of sale requires the approval of all parties holding a lien against the property.

The composition of listings is only one part of the equation in looking at real estate market. The other stages – pending sales and closed – are important to consider in determining the strength or weakness of the local real estate market.

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

Composition of Naples homes for sale

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

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

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

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

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

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

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

State of Florida Chapter 718

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

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

State of Florida Chapter 720

PART II DISCLOSURE PRIOR TO SALE OF RESIDENTIAL PARCELS

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

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

It further states the following:

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

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

Example one is taken from the Fannie Mae addendum:

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

Example two is taken from a REO addendum:

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

Example three is taken from the Freddie Mac addendum:

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

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

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

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

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

As prospective buyers run towards the purchase of less expensive condominiums in the Naples area – their attention has not been to the financial stability of the association. In other words they are running into condominium complexes that could be facing a financial distress situation. Warnings regarding the apartment to condominium complexes and their potential financial distress situations have taken place over several months, starting with the doubling of quarterly association fees of a North Naples condominium complex. Such a situation has come to light recently in an article found on the Marco Island News on December 7, 2009.

Liens by the homeowners association halted an auction for 55 condominiums at Granada Lakes Villas in eastern Collier County.

An auction advertised for Dec. 6 never happened and interested buyers have been put on hold. Some contracts were signed in the weeks leading up to the public event.

The liens were filed after the auction was heavily advertised.

“We had a lot of properties under contract. We were ready to start closing. This came up,” said Eric Chavarria, a Realtor with Real Estate Empire in Miami, which was handling the auction.

Granada Lakes Villas went from apartments to condos a few years ago but it was a late comer in the conversion craze that hit Southwest Florida back in 2004. Granada Lakes Villas has been plagued by foreclosure actions.

Analysis showed more than 100 default notices filed against owners in the community, which is the first step in foreclosure.

On the developer owned units, the average lien is about $10,000 for unpaid maintenance fees. It’s almost half a million dollars in past dues.

Source: Marco Island News

2820 Crayton Road Naples

Just Listed! 2820 Crayton Road MLS#209033393 – The Moorings

This is a great opportunity to invest in a Moorings home. Golf course view and private beach access….More

To schedule you private showing of this home
call Carmen at 239-404-7576

Naples Florida homes for sale at the beginning of October was 3698 last year. There were 5244 homes for sale in September. This represents a reduction in the total number of homes for sale by 1546 or about 30 percent,. During the month of August. There were a total of 3777 homes for sale. The 3698 available homes for sale represents a decrease of approximately 2%.

The graph below shows shows the active number of listings for the period January 2008 to September 2009.

Naples homes for sale showing 2008 and 2009

The composition by type of listing is shown below in the pie chart.

October composition of homes for sale in the Naples area

The breakdown by type for the above:
Traditional - 2814
Potential short sales - 760.
Foreclosed - 124.

The breakdown by type of potential real estate transaction for August is shown below in the pie chart.

September composition of homes for sale in the Naples area

The breakdown by type for the above:
Traditional 2867.
Potential short sales 773.
Foreclosed 137

A factor, which supports an improvement in the Naples real estate market for single-family homes is the months of inventory. The current months of inventory is slightly below 12 months whereas in August. The months of inventory was likely above 12 months last year the number of months was 27. This represents a reduction in excess of 50 percent.

The line graph below reflects the months of inventory over the period of January 2008 two September 2009.

Months of inventory - homes for sale

During the one of October historically, there is a sick depth against increase in the number of new listings that come on the market. The question is will wield the number of active listings as well as the months of inventory available for sale. Continue to show declines.

Listings:

The new listings for the month of August 2009 were 468 condos in the Naples real estate market. The number of condos listed in August 2008 was 513. The decline of new condo listings coming on the market condos was 9 percent. In August 2007, the new listings were 564, representing a drop of 96 condos or decline of 17 percent.

In July 2009 the new listings were 557.

Of the 468 condos listed approximately 20 percent were potential short sales, 12 percent were foreclosed (bank owned), and the remaining 68 percent were traditional listings.

Median list price for potential short sales was $129000, foreclosed properties were $86200, and traditional listings were $239500.

Closed Sales:

In the month of August 2009 the number of condos sold was 204. In August 2008 a total of 171 condos were sold. The year over year was 19 percent increase. In August 2007 a total of 122 condos were sold. The increase over 2007 was 82 condos or about a 67 percent.

Of the 204 condos sold, approximately 11 percent were approved short sales, 21 percent were foreclosures, and the traditional sales were 68 percent.

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

Composition of sold condos in Naples for August 2009

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

Pending Sales:

During August 2009 a total of 341 condos had an offer accepted by the seller. In August 2008, 184 condos had offers accepted. The increase from August 2009 represents an increase of 157 condos or about 85 percent.

In August 2007 a total of 110 condos were pending sale. The increase between August 2009 and August 2007 was 231 condos or about 210 percent.

The total number of condos pending sale in the Naples area as of the end of August 2009 was 4095. The graph below reflects the composition of these pending sales.

Composition of Total Pending Sales for Naples

Median Sold Price:

During the month of August 2009, the median sold price of a condo in Naples was $163500. 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 August 2008, the median sold price was $216000. In the year over year comparison median sold price declined $52500 or roughly 24 percent.

In August 2007 the median sold price was $285000. In comparing August 2007 to August 2008 the price declined $121500 or about 43 percent.

Median sold price for approved short sales was $123900, foreclosed properties were $63600, and traditional listings were $218900.

The difference between the list price and sold price for approved sales was about 81 percent, foreclosed properties 95 percent, and traditional listings 90 percent.

Listings:

The new listings for the month of August 2009 were 608 homes in the Naples real estate market. The number of homes listed in August 2008 was 797. The decrease in the number of new listings of homes was 189 or about 24 percent. In August 2007, the new listings were 950, representing a reduction of 342 homes or a decline of 36 percent compared with August 2009.

In July 2009 the new listings were 728.

Of the 608 homes listed approximately 27 percent were potential short sales, 20 percent were foreclosed (bank owned), and the remaining 53 percent were traditional listings.

Median list price for potential short sales was $165000, foreclosed properties were $119800, and traditional listings were $399000.

Closed Sales:

In the month of August 2009 the total homes sold were 331. In August 2008 a total of 220 homes were sold. The year over year was 51 percent increase. In August 2007 a total of 164 homes were sold. The increase over 2007 was 167 homes sold or about a 102 percent.

In July 2009 the number of homes sold was 400.

Of the 331 homes sold, approximately 18 percent were approved short sales, 39 percent were foreclosures, and the traditional sales were 43 percent.

The pie chart below shows the composition of closed sales in graphical format.

Composition of homes sold in Naples for August 2009

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

Pending Sales:

During August 2009 a total of 518 homes had an offer accepted by the seller. In August 2008, 274 homes were pended. The increase from August 2009 represents an increase of 244 homes or about 89 percent.

In August 2007 a total of 160 homes were pending sale. The increase between August 2009 and August 2007 was 358 homes or about 224 percent.

The composition of  the August 2009 homes pending for sale in the Naples area is shown below.

Composition for the month of August pending sales

The total number of homes pending sale in the Naples real estate market is 1133. The pie chart below shows the percentage break down.

Composition of Total Pending Sales for Naples

Median Sold Price:

During the month of August 2009, the median sold price of a home in Naples was $185000. 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 August 2008, the median sold price was $257750. In the year over year comparison the median sold price declined $72750 or roughly 28 percent.

In August 2007 the median sold price was $404000. In comparing March 2007 to March 2008 the price declined $219000 or about 54 percent.

Median sold price for approved short sales was $190000, foreclosed properties were $118000, and traditional listings were $304500.

The difference between the list price and sold price for approved short sales was about 93 percent, foreclosed properties 99 percent, and traditional listings 88 percent.

The condominium market for the Naples real estate area at the start of September 2009 declined down to 4095 units for sale. In the year over year comparison the number of unit declined 580 or about 12 percent from the 4675 condominiums on the market in September 2008.

The September 2009 was also a decline from the August 2009 4248 condominiums on the market. The decline represents a about 3.6 percent reduction.

The graph below shows the inventory of condominiums for sale since January 2008:

Naples condos for sale - September

The composition of various types of possible real estate transactions of the September condos for sale are broken down as follows:
Traditional condos for sale – 3482
Potential short sales – 533
Foreclosed condos – 80

The pie chart below shows the breakdown in a graphical format:

Composition of Naples Condos for Sale - September

In August the breakdown of condos for sale was as follows:
Traditional sales – 3629
Potential short sale – 542
Foreclosed condos – 77

Overall the number of Naples condos for sale declined from the previous month, the composition remained the same with the largest drop in the traditional condos for sale.

The month of September has started with a total of 3777 Naples homes for sale. In a year over year comparison the number of homes have declined from 5247 in September 2008. This represent a drop of about 28 percent. The number of homes for sale is taken from the close of business on August 31st.

At the start of August there were a total of 3923 homes for sale. The number of homes for sale has declined 146 homes or approximately 3.7 percent.

The graph below shows the homes for sale for the time frame of January 2008 to September 2009. The decline of homes for sale in the Naples area continues to show a downward trend.

Naples Homes for Sale - September

The composition (categories) of Naples homes for sale breakdowns as follows:
Traditional homes for sale – 2867
Potential short sale homes – 773
Foreclosed homes – 137

The composition of the homes for sale in August was:

Traditional homes for sale – 2947
Potential short sale homes – 840
Foreclosed homes – 136

The pie-chart below shows graphical the composition of the three different categories of homes for sale for September 2009.

Categories of homes for sale

Don’t blame the banks or lenders for not approving a potential short sale for every property! You just might blame the seller and the real estate agent. Buyers need to be aware of the facts before they waste their efforts and time on a transaction which is doomed even before the offer is made on the potential short sale property.

There are many property owners using potential short sales to find relief either from their financial distress situation, a loan with unfavorable terms or because they don’t want to pay on mortgage for a property which is worth far less than when they purchased it.

In many cases the potential short sale does not obtain an approval from the lender(s) or bank(s). Below is a great example of an active listings for a single home for sale in an above average development.

The home is listed for $259000. If a full price offer was accepted by the seller, the contract would be submitted to the lender or bank. There is only mortgage on the property in the amount of $496800 and another lien from the homeowners association for $3742 (not including legal fees, court costs and interest) as of the fourth quarter of 2008. The estimated additional sum for the first half of 2009 is $930. Based upon the aforementioned facts, if the lender approved the contract, the lender would receive the net proceeds (purchase price less closing costs) of about $236000, after paying for the closing costs and for the release of the homeowners association lien.

The estimated market value of the home is $384000, based upon comparable homes sold within the past three months.

If the lender or bank forecloses on the property, the foreclosure will wipe out the entire homeowners association lien against the property.

After the foreclosure, the lender or bank could put the home on the market (if still in good condition) for about $345000. An offer could be put in and accepted on the home for about $311000 – could be higher. The bank or lender would realize net proceeds from the sale of about $289000.

The difference between the potential short sale net proceeds ($236000) and the foreclosure sale net proceeds ($289000) is $53000.

Why would a lender or bank approve the short sale when foreclosing on the home would increase the bottom line by $53000?

Could this situation cause the lender or bank to accelerate their efforts to foreclosed on the property?

Most buyers are not aware of the complications of the potential short sale property and will waste their time and effort on such a property as discussed in the above example.

Sellers and their real estate agents need to work the numbers to ensure the lender or bank makes a decision to approve the short sale.

The inventory of Naples homes for sale, continues to show a downward trend. As of the midnight July 3 or the early morning hours of August 1, there were a total of 3923 homes for sale in Naples. As of July 1 the number of homes for sale was 4104. Between the two months there was a drop of 181 homes. The difference is more pronounced in comparison with 2008 – a total of 5263. In a year over year comparison the drop equates to 1340 homes or about 26 percent reduction in the number of homes for sale.

The graph below shows the number of homes available for sale for 2008 and 2009. The downward trend is reflected in the graph – market improvement. However, the composition of the Naples homes for sale, but itself does not completely give a true picture of  the real estate market for single family homes.

Naples FL homes for sale graph

The composition of homes for sale is interesting to view. It reflects an interesting view of the potential types of transactions which could evolve into future sales. As of August 1 the composition of 3923 homes for sale – 75 percent are traditional, 21 percent are potential short sale, and 4 percent are foreclosed homes. Over the past four months, although the shifts in the composition of the listings, with potential short sale homes increasing 1 percent – there could be greater facts revealed when looking at the composition of pending sales and closed sales

Composition of Naples Homes for Sale - August

The graph below shows the composition of homes for sale as of July 1. Traditional for sale homes represented 76 percent, potential short sales 21 percent and foreclosures 3 percent. The difference between August and July shows a slight shift from traditional sales to the foreclosure segment.

Composition of Naples Homes for Sale - July

The June composition of 4414 homes for sale, breaks down as follows: traditional sales – 76 percent, potential short sales 20 percent, and foreclosures 4 percent. The only difference between the July composition and June composition is the slight change between foreclosures and potential short sales.

Composition of Naples Homes for Sale - June

The composition of the May, 4756 homes for sale in Naples breaks down as follows: traditional listings 76 percent, potential short sale listings 20 percent and foreclosure listings 4 percent. Essential there is no shift between May and June.

Composition of Naples Homes for Sale - May

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

Listings:

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

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

Pending Sales:

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

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

Closed Sales:

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

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

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

Median Sold Price:

The median sold price (the sold price at which half the condos sold and half below) for May 2009 was $207750. This figure may not be good news for existing homeowners or sellers, but it is good news for prospective buyers. However, prospective buyers need to be aware that since February 2009, the median sold price for a condo in Bonita Springs has been ranging from $226500 to $207750. During the months of February through April, the median sold price was fairly stable – $220,000, $226,250, and $226,500.

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

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

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

Listings:

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

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

Pending Sales:

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

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

Closed Sales:

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

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

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

Median Sold Price:

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

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

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

The Naples 4th of July parade lasted about 2 hours with almost 200 floats. Fifth Avenue South had throngs of people viewing the parade. The parade had both a military and patriotic theme. Hope you enjoy the photos.

Sellers of short sales often are not aware of the income tax effects of the short sale transaction and surprised to receive a form 1099-c.

Below is information for sellers of potential short sale transactions.

A short sale in real estate occurs when the outstanding loan against a property exceeds the market value of the property and the lender agrees to accept less than it is owed to permit the property to be sold.

The difference or shortage is an expense to the bank or lender and therefore becomes income to the individual(s) with the short sale. Put in simple terms – one’s expense is another’s income.

The best sources for accurate information are an appropriately qualified lawyer or the IRS itself (www.irs.gov) but as a preliminary guide, the following extract from the IRS site gives this basic information.

The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

This provision applies to debt forgiven in 2007, 2008 or 2009. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

(Source: IRS Newsroom page)

The IRS has a special page dedicated to The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. Below is the information presented by the IRS:

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:

What is Cancellation of Debt?
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

* Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.
* Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
* Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.
* Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.
* Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences.These exceptions are discussed in detail in Publication 4681.

 

What is the Mortgage Forgiveness Debt Relief Act of 2007?
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does exclusion of income mean?
Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.

Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?
Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681.

How long is this special relief in effect?
It applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012.

Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?
The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the tax year), at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982 and the detailed example in Publication 4681.

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.

Do I have to complete the entire Form 982?
No. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.

Where can I get this form?
If you use a computer to fill out your return, check your tax-preparation software. You can also download the form at IRS.gov, or call 1-800-829-3676. If you call to order, please allow 7-10 days for delivery.

How do I know or find out how much debt was forgiven?
Your lender should send a Form 1099-C, Cancellation of Debt, by February 2, 2009. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982.

Can I exclude debt forgiven on my second home, credit card or car loans?
Not under this provision. Only cancelled debt used to buy, build or improve your principal residence or refinance debt incurred for those purposes qualifies for this exclusion. See Publication 4681 for further details.

If part of the forgiven debt doesn’t qualify for exclusion from income under this provision, is it possible that it may qualify for exclusion under a different provision?
Yes. The forgiven debt may qualify under the insolvency exclusion. Normally, you are not required to include forgiven debts in income to the extent that you are insolvent. You are insolvent when your total liabilities exceed your total assets. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982. Publication 4681 discusses each of these exceptions and includes examples.

I lost money on the foreclosure of my home. Can I claim a loss on my tax return?
No. Losses from the sale or foreclosure of personal property are not deductible.

If I sold my home at a loss and the remaining loan is forgiven, does this constitute a cancellation of debt?
Yes. To the extent that a loan from a lender is not fully satisfied and a lender cancels the unsatisfied debt, you have cancellation of indebtedness income. If the amount forgiven or canceled is $600 or more, the lender must generally issue Form 1099-C, Cancellation of Debt, showing the amount of debt canceled. However, you may be able to exclude part or all of this income if the debt was qualified principal residence indebtedness, you were insolvent immediately before the discharge, or if the debt was canceled in a title 11 bankruptcy case. An exclusion is also available for the cancellation of certain nonbusiness debts of a qualified individual as a result of a disaster in a Midwestern disaster area. See Form 982 for details.

If the remaining balance owed on my mortgage loan that I was personally liable for was canceled after my foreclosure, may I still exclude the canceled debt from income under the qualified principal residence exclusion, even though I no longer own my residence?
Yes, as long as the canceled debt was qualified principal residence indebtedness. See Example 2 on page 13 of Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

Will I receive notification of cancellation of debt from my lender?
Yes. Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form.

What if I disagree with the amount in box 2?
Contact your lender to work out any discrepancies and have the lender issue a corrected Form 1099-C.

How do I report the forgiveness of debt that is excluded from gross income?
(1) Check the appropriate box under line 1 on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to indicate the type of discharge of indebtedness and enter the amount of the discharged debt excluded from gross income on line 2. Any remaining canceled debt must be included as income on your tax return.

(2) File Form 982 with your tax return.

My student loan was cancelled; will this result in taxable income?
In some cases, yes. Your student loan cancellation will not result in taxable income if you agreed to a loan provision requiring you to work in a certain profession for a specified period of time, and you fulfilled this obligation.

Are there other conditions I should know about to exclude the cancellation of student debt?
Yes, your student loan must have been made by:

(a) the federal government, or a state or local government or subdivision;

(b) a tax-exempt public benefit corporation which has control of a state, county or municipal hospital where the employees are considered public employees; or

(c) a school which has a program to encourage students to work in underserved occupations or areas, and has an agreement with one of the above to fund the program, under the direction of a governmental unit or a charitable or educational organization.

Can I exclude cancellation of credit card debt?
In some cases, yes. Nonbusiness credit card debt cancellation can be excluded from income if the cancellation occurred in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See the examples in Publication 4681.

How do I know if I was insolvent?
You are insolvent when your total debts exceed the total fair market value of all of your assets. Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts.

How should I report the information and items needed to prove insolvency?
Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation.

To claim this exclusion, you must attach Form 982 to your federal income tax return. Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation. You must also reduce your tax attributes in Part II of Form 982.

My car was repossessed and I received a 1099-C; can I exclude this amount on my tax return?
Only if the cancellation happened in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See Publication 4681 for examples.

Are there any publications I can read for more information?
Yes.
(1) Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals) is new and addresses in a single document the tax consequences of cancellation of debt issues.

(2) See the IRS news release IR-2008-17 with additional questions and answers on IRS.gov.

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

Listings:

During the month of May a total of 536 condos were listed for sale. In May 2008, the number of condos listed for sale in the Naples area was 599. In addition the 536 condos listed for sale was less than the 757 condos in May 2007. The downward trend of new listings is continuing. The volume of listings in January were 990, February with 745, March with 771, and April with 657. Other than October 2008, the listings for May was the lowest number over the past 4 years.

The listed condos in May 2009 was the lowest number of homes listed since October 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 January 2006 as the next highest median sold price month.

Pending Sales:

During the month of May 2009, a total of 375 condos had offers accepted by sellers (pending). The figure for pending condo sales in May represents a substantial increase over both May 2008 and May 2007 were the pending sales were 217 and 207, respectively. The increase represents 73 percentage upwards change over May 2008 and a 81 percentage increase. The increase in pending sales for May can largely be attributable to the lower median sold prices of condos.

Over the past 9 months the number of pending sales in the Naples area have showing an upward trend from 118 condos pended in September 2008. In addition, the past 3 months have had the highest volume of pended condominiums over the past four years.

Closed Sales:

There were a total of 287 closed (sold) in May 2009. In a year over year analysis, the 287 sales is higher than May 2008 and May 2007, where 223 and 218 sales respectively took place. The sales in May represents a 22 percent increase and 32 percent over May 2007 and May 2008, respectively.

The closed sales in May, represents the highest number of homes sold since September 2005.

Since January 2009, the number of condos sold has been on a strong upward trend. This is the continuous of an upward trend starting in January 2009. The immediate past three months of closed sales is highest since September 2005.

The increase is largely due to the lower median sold price of condos in the Naples area.

Median Sold Price:

The median sold price (the sold price at which half the condos sold and half below) for May 2009 was $167000. 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 January 2009, the median sold price for a condo in Naples has been ranging from $178000 to $167000. Over the past 2 months the median sold price has been showing a slight upward trend.

The median sold price in May represents a 36 percent decline from May 2008 when the median sold price was $262500 and a 45 percent decline from May 2007 when the sold price was $301500.

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

The Naples real estate market for homes is starting to show signs of strengthening in many aspects and prospective buyers should be aware of the positive changes. The statistics presented and discussed below are global in nature for the Naples area and do not represent the more important micro-market views which can vary greatly between the North Naples, Naples West, Naples Central, Naples South, Pelican Bay, Pelican Marsh, The Vineyards and Golden Gate Estates areas.

Listings:

During the month of May a total of 689 homes were listed for sale. In May 2008, the number of homes listed for sale in the Naples area was 840. In addition the 689 homes listed for sale was less than the 852 homes in May 2007. The downward trend of new listings is continuing.

The listed homes in May 2009 was the lowest number of homes listed since October 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 January 2006 as the next highest median sold price month.

Pending Sales:

During the month of May 2009, a total of 590 homes had offers accepted by sellers (pending). The figure for pending home sales in May represents a substantial increase over both May 2008 and May 2007 were the pending sales were 297 and 206, respectively. The increase represents 108 percentage upwards change over May 2008 and a 186 percentage increase. The increase in pending sales for May can largely be attributable to the lower median sold prices of homes.

Over the past three months the number of pending sales in the Naples area have been higher than in previous years, dating back to at least March 2005, even though the real estate market erosion could be earmarked back to October 2005.

Closed Sales:

There were a total of 419 closed (sold) in May 2009. In a year over year analysis, the 419 sales is higher than May 2008 and May 2007, where 272 and 222 sales respectively took place. The sales in May represents a 54 percent increase and 89 percent over May 2007 and May 2008, respectively.

The closed sales in May, represents the highest number of homes sold since June 2005.

Since January 2009, the number of homes sold has been on a strong upward trend. This is the continous of an upward trend starting in March 2008.

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

Median Sold Price:

The median sold price (the sold price at which half the homes sold and half below) for May 2009 was $185000. 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 Naples has been ranging from $204000 to $177,200. Over the past 3 months the median sold price has been showing a slight upward trend.

The median sold price in May represents a 50 percent decline from May 2008 when the median sold price was $370,000 and a 58 percent decline from May 2007 when the sold price was $437500.

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

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.

The available homes for sale in the Estero area saw a drop in the number of homes for sale as of the close of business on April 30. The current number of homes for sale was 471. This represents a drop in the inventory of 57 homes. The decline represents of about 11 percent. In the year over year analysis the current inventory represents a decline of 37 homes or about 7 percent. In addition, the number of home available for sale is at the lowest level since August 2008. In August 2008 there were a total of 456. Below is a graphical presentation of the historical data for active listings by month from January 2008 to April 30, 2009.

Trendline for Estero Homes for Sale - January 2008 to April 2009

The composition of the type of listings available for sale is rather interesting and could represent a major difference between prospective buyers’ perceptions, as well as, what is being reported by others as to how dire the 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 360 for traditional listings, 101 potential short sales and 10 foreclosures.

Composition of Estero Homes for Sale as of April 30, 2009

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 homes for sale and Bonita Springs homes for sale to Estero homes for sale.

Your thoughts and comments are always welcomed.

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

Trendline for Bonita Springs Condos for Sale - January 2008 to May 2009.

The composition of the type of listings available for sale is rather interesting and could represent a major difference between prospective buyers’ perceptions, as well as, what is being reported by others as to how dire the Bonita Springs real estate market is. The vast majority of listings fall within the traditional listing category (traditional listings are listings being offered as a normal sale), followed by foreclosures, and potential short sales. The raw numbers for the various categories are 949 for traditional listings, 124 potential short sales and 21 foreclosures.

Classification of Listings on the Market for Bonita Springs Condos

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

In previous posts you can compare the composition of both the Naples condos for sale to Bonita Springs condos for sale.

Your thoughts and comments are always welcomed.

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

Trendline of Bonita Springs Homes for Sale

The composition of the type of listings available for sale is rather interesting and could represent a major difference between prospective buyers’ perceptions, as well as, what is being reported by others as to how dire the Bonita Springs real estate market is. The vast majority of listings fall within the traditional listing category (traditional listings are listings being offered as a normal sale), followed by foreclosures, and potential short sales. The raw numbers for the various categories are 826 for traditional listings, 137 potential short sales and 35 foreclosures.

Classification of Bonita Springs Homes for Sale

A question arises – does the closed sales for April reflect the classification of the listings? The answer to this question will appear on this blog sometime within the next few days.

In previous posts you can compare the composition of both the Naples condos for sale to Bonita Springs condos for sale.

Your thoughts and comments are always welcomed.