Are Mortgage rates really under 3%?
When Freddie Mac released its weekly mortgage survey on Thursday it did so with the heading: “Mortgage Rates Drop Below Three Percent Again.”
Which they are not now.
The problem lies with the methodology. Freddie Mac surveys lenders from Monday to Wednesday with the major weighting given to Monday’s rates. As I have explained in many postings over the years (see Mortgage Rates back to 3% – again as an example), the 30-year Fixed Rate Mortgage (FRM) is priced based upon a premium that investors, when they buy pools of mortgages, demand over the yield on the nearest-equivalent US Treasury – which is the 10-year Note (10T). Thus, if the yield on 10T increases from Monday to Thursday – as it did this week – by the time of Thursday’s announcement the FRM may have changed – as it did this week.
Mortgage News Daily had a great article this week and I am going to use their charts. I recommend signing up for their newsletter, a source of great information and opinion. (more…)
The Europeans have started to Arrive!
The unprecedented travel ban, implemented in March 2020 in response to the pandemic, saw travellers from the UK, EU and various other countries worldwide allowed into the States for only a handful of “essential reasons”.
From 8 November, entry restrictions have been lifted for all fully vaccinated arrivals.
In celebration, British Airways and Virgin Atlantic staged an historic simultaneous take-off from London Heathrow’s two runways yesterday morning.
Contact me to see how I can help you in your search for a home in Paradise!
Read these articles about the impact European – and Canadian – buyers will have on the real estate market: (more…)
International Tourism to Return to Southwest Florida
While Collier County is on pace to see record tourism this year, and Southwest Florida International Airport is seeing record passenger numbers, most of this activity stems from visitors within the State and elsewhere in the US. But that could be about to change.
International tourism to return
International tourism has been almost non-existent in Southwest Florida this year, due to COVID-related travel restrictions that will soon ease.
The U.S. will lift restrictions for fully vaccinated international visitors starting Nov. 8, which is expected to benefit the region in a big way, with the anticipated return of Europeans to the region. (more…)
How accurate are Zillow’s Zestimates?
During the pandemic-spurred housing boom, Zillow Offers emerged as a particularly aggressive iBuyer, or instant buyer, of homes in Sun Belt markets, offering homeowners more than the market value of their properties, with no catch. Zillow has now conceded that it has been paying too much for properties, even in a market characterized by soaring home values. Saying it had lost $1 billion on iBuying, Zillow has shut down its Zillow Offers unit.
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility,” Chief Executive Rich Barton said.
Zillow used an algorithm to make home price estimates, called the “Zestimate,” and determine what it would pay home sellers.
Are Zestimates accurate?
Zestimates are somewhat like the National Hurricane Center’s projection for a hurricane’s path: both provide a single price or point, but those prices and points are actually the median of a range.
Here’s an example for a house: (more…)
What I like about Living in a Gated Community
When people are thinking of buying a property in Florida one of the questions is whether to buy in a community with a Homeowners’ Association or a stand alone property. Here’s what I like about living in a gated community.
The gate
While it can at busy times cause a delay for service vehicles entering the property it also provides a sense of security for residents knowing that every car entering the property has to be cleared with an owner
Landscaping
Wednesday is my favourite day of the week – it is the day the landscaping crew of 3 comes. In addition to cutting the grass, they prune and trim trees and plants and will do other work on request.
Just this last week the palm trees were pruned and – best of all – mulch was laid throughout. No more trips to Home Depot for me! (more…)
Travelers are returning to Southwest Florida to find low inventory
Travelers are returning to Southwest Florida after the pandemic grounded flights and restricted some from coming, and RSW has announced new international flights from Frankfurt and Montreal, along with Midwestern and Northeast Destinations.
One recent arrival, Mark Keegans of Toronto, said: “I think the weather is the biggest thing, and my wife and I are looking at buying a place down here to spend the winters down here.” (NBC-2)
Really, really low Inventory (more…)
Pine Island Q3 2021 Market Report
Only 30 minutes from Fort Myers but a world apart, secluded Pine Island offers a quiet, laid-back atmosphere, plenty of great fishing, and lush natural environment.
Most of Pine Island is Single Family homes, often on a canal leading to open waters. Median prices showed steady increase throughout the year. All but 5 of the 2021 Condo sales were in Bokeelia.
Fort Myers Beach Q3 2021 Market Report
Fort Myers Beach sits on a little barrier island, about seven miles long, and the beach is fabulous – wide, gradually sloping, and thick with the area’s justifiably famed sand.
The median price increased significantly in 2021, especially for Single Family homes.
Sanibel/Captiva Q3 2021 Market Report
Sanibel Island Beaches are some of the most unique barrier islands of the world, having an east-west orientation when most islands are north-south. Captiva Island is just over a small bridge which crosses at Turner Beach.
Sales and median prices dropped from Q2 to Q3 as a result of the usual summer slowdown in sales.
Bonita Springs/Estero Area and Community Market Reports
I have published the following Fall Market reports:
Bonita Springs Fall Market Report
Estero Fall Market Report
Bonita Bay Fall Market Report
Pelican Landing Fall Market Report
Spanish Wells Fall Market Report
Naples area Fall Market Reports
Foreign Buyers May Return in November
Mortgage rates back to 3% – again
Andrew Oliver
REALTOR®| Market Analyst | DomainRealty.com
Naples, Bonita Springs and Fort Myers
Andrew.Oliver@DomainRealtySales.com
m. 617.834.8205
www.AndrewOliverRealtor.com
www.OliverReportsFL.com
_____________
Market Analyst | Team Harborside | teamharborside.com
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
www.OliverReportsMA.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Bonita Bay Fall Market Report
With 56 neighborhoods, homeowners can choose from coach homes, single family custom homes, multi-unit villas, or waterfront high-rise luxury living.
The apparent large drop in the Single Family median home price in Q3 simply reflects the small number of sales during the slower summer months.
Bonita Springs Fall Market Report
Known as the “Gateway to the Gulf” – Bonita Springs enjoys the charm of small town living with sprinkles of magnificent upscale communities and businesses.
Sales showed a seasonal slowdown from Q2 to Q3, while the median Single Family home price also dropped.
Spanish Wells Fall Market Report
The community of Spanish Wells Golf & Country Club consists of 8 subdivisions, 7 of which are not bundled.
The apparent large increase in the Single Family median price in Q3 simply reflects the small number of sales in the summer months.
Estero Fall Market Report
Estero is sandwiched along Florida’s Gulf Coast between Naples to the south and Fort Myers to the north and lays claim to Florida Gulf Coast University and serves as a relaxing destination.
Median prices in all categories have increased steadily this year, while sales saw the usual seasonal slowdown in Q3.
Pelican Landing Fall Market Report
Pelican Landing is a master planned community of 3,350 residences on over 2,300 acres, bordering Estero Bay on Florida’s Gulf Coast and accented by lakes and preserves.
The market saw consistent increases in median prices in the first 9 months of the year.
