Naples 2022 Housing Market Report
The story in 2022 was that prices continued to rise, while sales dropped sharply.
And read these recent articles: (more…)
Real Estate Trends: What’s the 2023 Florida Outlook?
What should consumers, Realtors® and policymakers expect when it comes to Florida real estate over the next year? After the unexpectedly strong years of 2020 and 2021 despite an ongoing pandemic, Florida’s housing sector in 2022 was affected by rapidly rising inflation and higher mortgage interest rates, Florida Realtors® Chief Economist Dr. Brad O’Connor told nearly 500 Realtors during the 2023 Florida Real Estate Trends summit last Thursday.
“Now, we expect the state’s residential real estate market to return to a more typical pace,” he said. “I believe 2023 will look more like the ‘traditional’ housing market years of 2018-2019 in Florida as supply and demand become more balanced.”
One major question currently on the minds of real estate professionals, homebuyers, home sellers and others: Is a price correction on the way? (more…)
Coming Soon: 3 bedroom/2 bathroom condo in Laurel Oaks at Pelican Bay.
My real estate team, The Feins Group, has a listing hitting the market very soon. You can view professional photos, take the virtual 3D-walkthrough tour, and read all about the features here
Serene water views and plenty of sunshine await you from this bright, fully-furnished 3 bedroom/2 bathroom condo in Laurel Oaks at Pelican Bay.
The 2nd-floor end-unit boasts 1481 square feet of living area and includes a southwest-facing balcony overlooking the community lake.
With vaulted ceilings peaking at 13 feet high, hurricane-impact glass throughout, and a new hot water heater (2021), this property is a can’t-miss.
Contact me ASAP on 617.834.8205 to see this property in person!
And read these recent articles: (more…)
BERMUDA GREENS Open Houses this weekend
OPEN HOUSES SATURDAY 1-4; SUNDAY 1-4
Click HERE to see video tour and photos of property. (more…)
Home Prices After Ian? Probably Going Up
A price spike is expected for Florida real estate spared the wrath of Hurricane Ian. Multiple studies show property values in storm-ravaged regions have historically risen past the national average following a disaster.
Veros Real Estate Solutions estimated that property prices topped the national average by 7% in five metropolitan areas over the 12 months following a hit by a major storm.
An April 2022 analysis of Florida’s housing market by University of California, San Diego economist Joshua Graff Zivin and colleagues also concluded that home prices rise temporarily after hurricanes. And the authors also said they did not observe “any major changes to the racial, ethnic or gender profiles of buyers, suggesting that socio-demographic characteristics of neighborhoods are quite stable in the face of these housing market shocks.”
Many storm victims show an unwillingness to move, which is often the biggest factor in rising prices. However, Ian might change that equation because of predicted hikes to homeowners insurance policies.
A June 2022 report from the Insurance Information Institute found the average cost of insuring a home in Florida has risen to $4,231 annually, although Veros Chief Economist Eric Fox still does not anticipate the situation changing significantly.
“People want to move from states that aren’t run as well as ours, and they have the money to do it,” says Florida real estate agent Rick Pitts. “Hurricanes are no joke – but in California you don’t get an earthquake warning.”
Source: Forbes (10/07/22) Kochkodin, Brandon
© Copyright 2022 INFORMATION INC., Bethesda, MD (301) 215-4688
And read these recent articles:
Economic commentary
No, the Federal Reserve does not control mortgage rates
Federal Reserve tries to rewrite history
Has Inflation Peaked?
Have Mortgage Rates peaked?
Are we already in a Recession?
Federal Reserve in Fantasyland: Implications for Housing Market
How far Behind the Curve is the Federal Reserve?
Will the Federal Reserve show chutzpah today?
Why are Mortgage Rates so high?
Other
How to protect your house from title fraud
Florida Lawmakers Pass Insurance, Condo Reforms
Florida Regulator: Insurers Can Offer Roof Deductibles
Expansion Plans for Fort Myers Airport
Guide to Buying and Selling in Southwest Florida
Market Summaries
Florida Market Update in 4 minutes
Naples mid-year Market Report
Sales Resemble Pre-Pandemic — But Not Pricing & Inventory
- Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
Andrew.Oliver@Compass.com
www.TheFeinsGroup.com
www.OliverReportsFL.com
m: 617.834.8205
———-
800 Laurel Oak Drive, Suite 400, Naples, FL 34108
———-
Licensed in Massachusetts
www.OliverReportsMA.com
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact me on 617.834.8205 or Andrew.Oliver@Compas
Buyers Undeterred in Ian’s Hardest-Hit Areas
In the month before Hurricane Ian hurtled into southwest Florida, shredding Lee County and destroying or damaging more than 32,000 homes, the area reigned as having the most overvalued real estate in the nation.
The county of pristine barrier islands and waterfront homes had bullied title-holder Boise, Idaho, into second place in an August ranking of price-bloated housing markets, according to a study released Tuesday by Florida Atlantic University and Florida International University.
Two weeks after Ian’s Category 4 wrath, economists and Realtors said the Sept. 28 storm may be a pause in Florida’s humming housing market but is unlikely to have long-term impacts because “people want to live near saltwater in a warm and business-friendly climate,” said Ken H. Johnson, an FAU housing economist.
In the near term, however, Ian could bolster unaffordability in Southwest Florida and Palm Beach County by reducing the number of homes for sale and rent as locals look for temporary residences while their Lee County homes are rebuilt.
“I haven’t lost a single potential buyer because of the storm,” said Bob Ashworth, a real estate agent with RE/Max Realty Team in Cape Coral. “We still have strong demand. People still want to buy.” (more…)
How have home prices behaved after previous major Hurricanes?
Veros Real Estate Solutions has published a report looking at real estate markets after 5 major storms. All the cities that experienced these massive hurricanes experienced higher levels of home value appreciation in the year after the storm than the year before.
There may have been other factors impacting house prices in the year prior to and the year following the hurricanes that were unrelated to the hurricane itself. For example, house prices might have been going up rapidly in a given market simply due to an overall seller’s market in that city at the time of the storm. This was certainly the case with Ft. Myers in 2004 during Hurricane Charley.
To mitigate the effect of other factors outside of the hurricane and to normalize the appreciation statistics, the appreciation of each city pre- and post-hurricane was taken as a percentage of the US national average appreciation during the same timeframes.
Overall, the same trend is observed. For example, in the year prior to Katrina, New Orleans had appreciation of 97% of the US average appreciation. In the year after Katrina, the average appreciation skyrocketed to 109% of the US average – an increase of 12%! For these five storms, the post hurricane annual appreciation (as a percentage of average US house price appreciation) ranged from a low of 2.4% to a high of 11.9% more than the annual appreciation in those markets prior to the storm. The average increase was 6.6% Thus, both methods of analyzing the data show the same results.
At first blush, this may seem like a surprising result, but it all comes down to supply and demand. People whose homes have been severely damaged have to find a new place to live in the short term while their home is being repaired. This causes demand to increase for an existing pool of housing inventory. Likewise, some of the inventory of homes to purchase will have been damaged by the storm thereby reducing the supply. Increased demand and reduced supply for an asset means (all other things being equal) that there will be upward price pressure. Thus, post-hurricane housing markets follow classic economic theory.
And read these recent articles:
Economic commentary
No, the Federal Reserve does not control mortgage rates
Federal Reserve tries to rewrite history
Has Inflation Peaked?
Have Mortgage Rates peaked?
Are we already in a Recession?
Federal Reserve in Fantasyland: Implications for Housing Market
How far Behind the Curve is the Federal Reserve?
Will the Federal Reserve show chutzpah today?
Why are Mortgage Rates so high?
Other
How to protect your house from title fraud
Florida Lawmakers Pass Insurance, Condo Reforms
Florida Regulator: Insurers Can Offer Roof Deductibles
Expansion Plans for Fort Myers Airport
Guide to Buying and Selling in Southwest Florida
Market Summaries
Florida Market Update in 4 minutes
Naples mid-year Market Report
Sales Resemble Pre-Pandemic — But Not Pricing & Inventory
- Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
Andrew.Oliver@Compass.com
www.TheFeinsGroup.com
www.OliverReportsFL.com
m: 617.834.8205
———-
800 Laurel Oak Drive, Suite 400, Naples, FL 34108
———-
Licensed in Massachusetts
www.OliverReportsMA.com
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact me on 617.834.8205 or Andrew.Oliver@Compas
Is the U.S. Housing Market at a Crossroads?
Homes reached record prices in early 2022 – so is the current market a housing recession or just a market correction?
Here are some extracts from an article Market at the Crossroads on the Florida Realtors website, with my comments and links to recent articles at the end.
Is there a housing slowdown?
There is widespread consensus that the housing market has experienced a drastic drop-off in activity since its pandemic-prompted heights.
The housing market is “not like the volatile stock market, always going up and down; the housing market moves at a different, slower pace. “The market simply could not, and was never expected to, grow at that pace indefinitely,” Neda Navab, president of brokerage operations at real estate company Compass said. “Whether this trend will continue long enough for the market to enter a true ‘recession,’ or if this is simply the start of an expected ‘correction’ to historic norms, still remains to be seen.”
The case for a housing correction (more…)
Pelican Bay Villa Open House TODAY 2-4
Join me today 2-4 to see one of only 2 villas currently for sale in Pelican Bay with a private pool.
Lush landscaped views await you from this 3 bed/2.5 bath villa in Lugano at Pelican Bay. Located in the heart of Pelican Bay, this Northwest-facing property boasts 2,100 square feet of living area, plus a walled garden and lanai with private pool and spa. There is only one Pelican Bay! The premier luxury community in northern Naples, Pelican Bay offers residents exclusive access to unrivaled amenities that include three Gulf-front restaurants, two tennis facilities, a 27-hole golf course, two boardwalks, a Fitness and Wellness Center, and three miles of private beaches. With venues easily accessible by the community’s comprehensive tram system, residents can just take a backseat and enjoy the ride. Pelican Bay is adjacent to Waterside Shops and within walking distance of Artis–Naples, Southwest Florida’s top tier performing arts center, which is currently planning a $150 million renovation. You’ll never be far from fine dining, luxury shopping, and world class entertainment.
Click Customer_Financial_Report for details and Features for highlights. And Pelican Bay for full information about Pelican Bay.
And read these recent articles: (more…)
Florida July Market Update in 4 minutes
This short video is an excellent summary of what is happening to the market overall in Florida.
And this is my recent overview of the market in Naples: Market returning to normal – well, mostly
And read these recent articles: (more…)
Market returning to normal – well, mostly
After the extremely strong market post COVID it is instructive to take a slightly longer-term look.
These 3 charts are very much big picture for the entire Naples region and include all types of property. They do show, however, that sales and new listings have reverted to the norm, while prices overall are some 65% higher. (more…)
Sales Resemble Pre-Pandemic — But Not Pricing & Inventory
The number of closed sales is starting to resemble pre-pandemic levels — but this is a very different market now because homes are listed at significantly higher prices and inventory levels remain much lower than before.
Click June Florida Housing Report to watch a short video from Brad O’Connor, Ph.D., the Chief Economist for Florida Realtors®
And read these recent articles: (more…)
Naples mid-year Market Report
The trends evident in 2021 – persistent demand meeting lower inventory leading to fewer sales at higher prices – continued into the early months of 2022, but there was a notable cooling of the market towards the end of the second quarter, as rising mortgage rates and fears of recession, along with a sharp drop in the stock market, contributed to a hesitation amongst buyers. As always, caution should be exercised when looking at small numbers of transactions.
And read these recent articles: (more…)
Moody’s: Housing Correction Coming – but No Crash
NEW YORK – Moody’s Analytics Chief Economist Mark Zandi predicts that the latest Federal Reserve interest rate hike will cause a housing correction across the United States – but there won’t be a housing crash.
He suggests that the Southeast and Mountain West are the most overvalued housing markets, and the pendulum will swing back down. Cities and states due for a correction include Phoenix and Tucson in Arizona, the Carolinas, northeast Florida, and above all, Boise – “the most overvalued market in the country,” according to Moody’s analysis. (more…)