Shadow Wood at the Brooks Real Estate News | September 2019

Shadow Wood at the Brooks Real Estate News | September 2019

As of September 1, 2019, there are 43 active listings in Shadow Wood; 11 less than last month. There are 28 single-family, listed homes ranging from $449,000 to $1,999,000. The average list price is $1,071,371 and the average days on the market is 180 days. Combined days on the market is 255. In the condo market, there are 15 active listings in Shadow Wood, ranging in price from $279,000 to $585,000. The average list price is $408,913 and the average days on the market is 176. Combined days on the market is 240.

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SUMMARY OF SHADOW WOOD HOME SALES

SHADOW WOOD CONDOS

  • Within the last 12 months, there were 30 sales; the average sales price was $341,830; and, these condos were on the market an average of 109 days; combined days on the market is 201.
     
  • During the 12 months previous, there were 30 sales; the average sales price was $356,423; and, these homes were on the market an average of 110 days; combined days on the market is 194.

SINGLE-FAMILY SHADOW WOOD HOMES

  • During the last 12 months, there were 64 sales; the average sales price was $840,407; and, these homes were on the market an average of 104 days; combined days on the market is 217.
     
  • During the 12 months previous, there were 65 sales; the average sales price was $867,404 and, these homes were on the market an average of 101 days; combined days on the market is 196.
For a list of SHADOW WOOD homes sold during the past 12 months, click here.

For a list of SHADOW WOOD homes that are pending at the moment, click here.

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SEPTEMBER 2019 MARKET UPDATE

AUGUST WAS A GOOD MONTH FOR CLOSINGS

“August surprised me,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Our closed sales volume for August 2019 was $107 million compared to $85 million in August 2018. We had 241 closings in August 2019 compared to 169 for August 2018. “Pending sales during August were another story, down a little compared to recent years. I believe that last year’s red tide still has residual effects, even a year later with respect to summer visitors returning. Our listing inventory remains strong with Downing-Frye holding almost a thousand listings in the area.”

BONITA /ESTERO: HIGH INTEREST – LOW INVENTORY

Inventory levels in the Bonita Springs and Estero market have continued to decrease over the last three years. While shortages traditionally drive up home prices, that’s not the case in this market, with properties that have remained consistently priced at market value. Closed sales of condominiums in July 2019 steadily increased across all price points compared to July 2018. This trend is expected to continue. Some rental amounts are higher than mortgage payments, so with the low interest rates, this market is seeing an increase in mortgages especially with first time home buyers. “Long gone are the days of the winter sales season,” said Jerry Murphy, Downing-Frye’s Broker in Bonita Springs. “There is no ‘season’ anymore, we have continued interest here and sales activity all year round.”

FLORIDA: MEDIAN PRICES STILL RISING
 
Florida’s housing market reported higher median prices and rising inventory in 2Q 2019. Closed sales of single-family homes statewide totaled 85,017 in 2Q 2019, up 4.6 percent from the 2Q 2018 level. The statewide median sales price for single-family existing homes in 2Q 2019 was $265,000, up 3.3 percent from the same time a year ago, and for condo-townhouse properties during the quarter was $195,000, up 2.9 percent over the year-ago figure. Statewide closed sales totaled 34,128 during 2Q 2019, down 1.4 percent compared to 2Q 2018. Closed sales typically occur 30 to 90 days after sales contracts are written. In 2Q 2019, the median time to a contract was 41 days for single-family homes and 52 days for condo-townhouse properties. Inventory was at a 3.9-months’ supply in the second quarter for single-family homes and at a 5.7-months’ supply for condo/townhouse properties. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.0 percent for 2Q 2019.

USA: JULY HOME SALES STRENGTHEN

Existing-home sales strengthened in July, a positive reversal after total sales were down slightly in the previous month. Total existing-home sales rose 2.5 percent from June to a seasonally adjusted annual rate of 5.42 million in July. Overall sales are up 0.6 percent from a year ago (5.39 million in July 2018). “Falling mortgage rates are improving housing affordability and nudging buyers into the market,” said Lawrence Yun, NAR’s chief economist. However, he added that the supply of affordable housing is severely low. “The shortage of lower-priced homes have markedly pushed up home prices.” The median existing-home price for all housing types in July was $280,800, up 4.3 percent from July 2018 ($269,300). July’s price increase marks the 89th straight month of year-over-year gains. Total housing inventory at the end of July decreased to 1.89 million, a 1.6 percent decrease from 1.92 million one year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, down from the 4.4 month-supply recorded in June and down from the 4.3-month supply recorded in July 2018.

Sources: The Bonita Springs-Estero Assoc. of REALTORS®, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®. 

 

Real Estate Q&A: You Need a Will to Ensure Your Wishes  

A homeowner has his villa halfway paid off; a cousin is his next of kin. To leave the home to the cousin, a properly documented will stating that should be done.

FORT LAUDERDALE, Fla. – Question: My villa is about half paid off. My cousin is my next of kin and should get my home and bank account. What happens to my home when I die? ~ James ~
 
Answer: If you want your cousin to get your home when you die, you should draw up a will that leaves it to him. Your will should be properly drafted, signed, witnessed, and notarized so that you do not leave a problem for your cousin instead of your villa. If you are unsure how to do this, you should consult an experienced professional for your options.
 
After you die, your cousin will need to go through the probate process with the assistance of an attorney. Once complete, your cousin will be the new owner of the villa.
 
Most mortgages contain language requiring any new owner to pay off the loan immediately, including when the new owner gets the home because of the death of a relative.
 
In my experience, most lenders will not force this as long as the payments are made on time, along with all of the other requirements, such as insurance and tax payments being handled. However, your lender could “call” the loan at any time, so your cousin should look to refinance the property in a loan in his name, especially while interest rates are still favorable.
 
Your cousin can also decide to sell your villa. As the new owner, he has all of the choices available to any property owner. He would list the property with an agent and proceed like any other sale. 
Planning for your eventual demise can be a disturbing task, but it makes things much easier for your loved ones when they are dealing with your loss. 
 
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He practices real estate, business litigation and contract law from his office in Sunrise, Fla. He is the chairman of the Real Estate Section of the Broward County Bar Association and is a co-host of the weekly radio show Legal News and Review. He frequently consults on general real estate matters and trends in Florida with various companies across the nation.
Copyright © 2019 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by Tribune Content Agency, LLC.
 

What International Buyers are Looking for in the Florida Market 

 
A detailed look at where international clients originate and what they’re buying in the Sunshine State. Plus: A profile of the Florida international buyer. 
 
ORLANDO, Fla. – Updated July 23, 2019 – Florida Realtors® has released its latest report on the state’s foreign buyer and seller transactions, the 2018 Profile of International Residential Real Estate Activity. The one year-report – from August 2017 through July 2018 – found a small slowdown in international activity within the state, due mainly to a tight home inventory and rising property values.
 
In many areas, foreign buyers compete with U.S. buyers for the same properties, and solid U.S. employment growth boosted the domestic competition. In addition, mortgage rates remain relatively low compared to historic values, and the large supply of buyers, both foreign and domestic, had to compete for a relatively small number of homes for sale.
A stronger U.S. dollar also made Florida homes more expensive for foreign buyers from selected countries, notably Venezuela and Brazil. When asked about challenges faced by their international clients, Realtors surveyed said top objections included “Cost of property,” “could not find property,” and “exchange rate.”
 
South Florida remains the preferred location for international business. While foreign buyers purchased property across the state, most foreign buyers were concentrated in five metropolitan areas:
    *    Miami | Fort Lauderdale | West Palm Beach (54 percent)
    *    Orlando | Kissimmee-Sanford (9 percent)
    *    Tampa-St. Petersburg | Clearwater (9 percent)
    *    North Point | Sarasota | Bradenton (5 percent)
    *    Cape Coral | Fort Myers (5 percent) 
 
Here are highlights from the 2018 report:
 
Size of Foreign Buyer Residential Purchases
  • Foreign buyers purchased $22.9 billion of Florida’s existing detached single-family, townhomes, and condominiums during the reference period of the 2018 survey, a five percent decline from the level during the previous 12-month period ($24.2 billion). 
  • The dollar volume of foreign buyer purchases accounted for 19 percent of Florida’s volume of sales in 2018 (21 percent in 2017). Florida’s foreign buyers account for a larger fraction of the dollar volume of existing home sales compared to the national share of eight percent.
  • Measured in number of homes, foreign buyers purchased 52,000 existing homes (detached single-family, townhomes, and condominiums), a 15 percent decrease from the level reported during the previous 12-month period (61,300). This represents 13 percent of Florida’s residential market (15 percent in 2017). Florida’s foreign buyers account for a larger fraction of the number of homes sold compared to the national share of five percent.
  • The 2018 median purchase price among foreign buyers increased to $286,500 ($259,400 in 2017), which is 20 percent more than the median price of Florida’s existing home sales, at $236,500.

Characteristics of Foreign Buyers

  • The bulk of foreign buyers-68 percent- primarily reside in another country (Type A). The share of foreign buyers in Florida outweighs the 31 percent average from a national sample.
  • Latin American and Caribbean buyers accounted for the largest fraction of Florida foreign buyers at 36 percent. The other major buyers of real estate properties were Canadians at 22 percent, Europeans at 19 percent, and Asians at 11 percent.
  • While foreign buyers purchased property across the state, most foreign buyers were concentrated in five metropolitan areas: Miami-Fort Lauderdale-West Palm Beach (54 percent); Orlando-Kissimmee-Sanford (9 percent); Tampa-St. Petersburg-Clearwater (9 percent); North Point-Sarasota-Bradenton (5 percent); and Cape Coral-Fort Myers (5 percent).
  • Most foreign buyers-67 percent-made an all-cash purchase (72 percent in 2017).
  • Most foreign buyers-71 percent-purchased residential property for vacation, residential rental, or for both uses (68 percent in 2017). Nationally, 37 percent of all foreign buyers purchased for these purposes.
  • Foreign buyers had a preference for townhouses or condominium-53 percent-while only 43 percent purchased a detached single-family home. Three percent purchased residential land and another three percent purchased other types of properties.
  • Nearly half of foreign buyers purchased in a suburban or small town/rural area.
  • Most foreign buyers-93 percent-visited Florida at least once before purchasing a property.

Interactional Client Transactions 

  • A lower fraction of Florida REALTORS®’ respondents-41 percent-worked with an international client in 2018 (44 percent in 2017). Nationally, 23 percent of REALTORS® worked with a foreign client.
  • A lower fraction of respondents-23 percent- reported an increase in their business that is international in the past year (26 percent in 2017).
  • A lower fraction of respondents-30 percent- reported an increase in their business that is international in the past five years (33 percent in 2017).
  • A lower fraction of respondents-34 percent- expect an increase in their international transactions in the next 12 months (37 percent in 2017).
  • The fraction of respondents who reported that their client found Florida’s home prices to be less expensive than the prices in their home country decreased to 35 percent (41 percent in 2017).
  • “Cost of property”, “could not find property”, and “exchange rate” were the major reasons why international clients decided not to purchase.
  • Sixty-eight percent of foreign clients were personal or business contacts or former clients.
  • Most respondents-60 percent-reported no significant issues when working with international clients.
  • Seventy-five percent of respondents were born in the United States, and 34 percent were fluent in a language other than English.
           © 2019 Florida Realtors®
 

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Spike in July Home Sales, a Sign of Heightened Buyer Interest

“Twenty-six percent of the homes on the market during July had price reductions,” said Jeff Jones, NABOR® President and Broker at Keller Williams Naples. “The number-one reason a home lingers on the market is that it is priced too high. Those price reductions seemed to bring more buyers into the market.”
 
The July 2019 ShowingTime report, a monthly supplemental report that’s now being run alongside the monthly Market Reports, indicated that local REALTORS scheduled over 17,000 appointments to show a range of properties during July. On average, the report shows that a home for sale in Collier County is shown 17 times before it sells. Broker analysts believe the less inventory people have available to view, the more properties they want to see. This is why they believe now is a good time for sellers to enter the market so they have the opportunity to capture buyers who are looking at homes now.
 
“The late summer and early fall are a good time for a seller to list a home because there is a lot of interest from eager buyers – 17 showings per listing in July compared to 13 in January – and values are not decreasing,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.
 
Sellers added 935 new listings to July’s inventory, but this increase in inventory failed to keep up with the buyers entering the market. At the end of July, there were 5,200 homes on the market compared to 6,100 in July 2018. 
 
“We have about a 6-months supply of homes, which is lower than we like during this time of year,” said Jones. 
 
According to Coco Amar, a managing broker at John R. Wood Properties, the report showed one category where sellers seemed more open to negotiate home prices. “In the $1 million to $2 million price category for condominiums, there was a 10 percent decrease in the median closed price during July. This decrease in median price might have been precipitated by soft sales for condos in this price category as its sales decreased the most during July [-17%] compared to all other price and home type categories as compared to July 2018.”
 
Since January, median closed prices have decreased 2.9 percent to $335,000 from $345,000. But compared to last July, prices have held steady. July’s median closed price was $326,200 compared to $326,500 for July 2018. However, based on a rolling 12-month analysis, only condominiums priced above $2 million have seen a substantial increase in their prices, i.e., 13 percent.
 
The NABOR® July 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
 
CATEGORIES
JULY 2018
JULY 2019
CHANGE
Total closed sales (month/month) 
774 829 +7.1%
Median closed price (month/month) 
$326,500 $326,200 -0.1%
Total active listings (inventory) 
6,100 5,200 -14.8%
Average days on market  
94 103 +9.6%
Single-family closed sales (month/month) 
380 435
+14.5%
Single-family median closed price (month/month) 
$423,500 $409,500 -3.3%
Single-family inventory 
3,175 2,668 -16.0%
Condominium closed sales (month/month)
394 394 0%
Condominium median closed price (month/month) 
$254,500 $240,000 -5.7%
Condominium inventory 
2,925 2,532 -13.4%
 
Geographically, closed sales activity was the highest in the Naples Beach area (34102, 34103, 34108), which saw a 25 percent increase in overall closed sales and a 40 percent increase in single-family home closed sales compared to July 2018. Interestingly, the median closed price for condominiums in the Naples Beach increased 27.1 percent to $632,500 from $497,000 in July 2018.   
 
“Land values are high right now,” said Amar, “which will make homes for sale in the resale market more attractive this fall.”