BONITA SPRINGS 2023 MARKET REPORT and 5-YEAR REVIEW
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO). Median numbers are used in all calculations.
Click BONITA SPRINGS 2023 MARKET REPORT and 5_YEAR REVIEW to download a copy of this report.
Median Price and Sales
The median price of the Single Family homes sold in Bonta Springs increased more than 80% from $409,900 in 2019 to $750,000 in 2023. Sales surged until around Q3 2021, thereafter returning to pre-pandemic levels in 2022 and 2023.
The median price of Villas (attached and detached) sold increased almost 80% from $308,500 in 2019 to $552,500 in 2023. Sales followed a similar pattern to that for SF. The decline was greater – but on a small number of sales.
The median price of Condos (and Townhouses) increased 85% from $259,000 in 2019 to $480,000 in 2023. Sales in 2023 dropped to a little below the pre-pandemic number.
Single Family Sales by Price
Another way to look at sales is the distribution by price. (more…)
NAPLES 2023 MARKET REPORT and 5-YEAR REVIEW
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO). Median numbers are used in all calculations.
Click NAPLES 2023 MARKET REPORT and 5_YEAR REVIEW to download a copy of this report.
The numbers have been dramatic over the last few years, for all the well-known reasons. With the market returning to more normal conditions, pricing and condition are again important. If you are thinking of selling, please contact me for a current market analysis for your property. (more…)
Where Should I Place The TV?
TV options have grown tremendously in the past few years as new technologies have emerged and older ones have been vastly improved. While many accept the look of a TV on a wall, others bemoan it. There are solutions for all.
1. Regular wall-mounted TV’s. There are multiple options, sizes and price points.
2. Projection TV’s: these days the quality has improved so notably that they are clearly visible projected on a screen or wall in full daylight.
3. Retractable TV mounts: these allow you to place a TV on a wall and angle the TV towards you when watching, allowing for more placement options.
4. Furniture mounted concealed TV’s: cabinets with a hydraulic system allow a TV to rise from a cabinet and disappear when not in use.
5. Ceiling mounted TV’s: These lie flush within the ceiling and then angle down when in use.
6. Floor mounted concealed TV: a high-tech automated arm raises the TV concealed in the floor.
7. Under-bed mounts: a mechanism houses the TV under a bed and it emerges from the foot and rises with a hydraulic arm when in use.
8. TV on a stand. Several attractive variations of this exist at multiple price levels.
9. Mirror TV’s. Tech allows. a TV to be mounted within a bathroom (or other) mirror and disappear when not in use.
10. Room divider see-through TV. LG has revealed a new technology in TV options for the home, a TV with a transparent screen, the world’s first wireless transparent OLED TV, with a 77-inch OLED (organic light-emitting diode) screen, a technology used in lighting that facilitates digital displays on products including TV’s and smartphones. Thanks to its transparency, the TV does not need to be placed against the wall like a traditional screen. (DEZEEN)
11. Rollable TV’s. Yup, a TV that rolls up into a low-lying cabinet that maintains your view when placed in front of a window.
12. TV as art? The FRAME TV by Samsung appears as if it were an art piece in a gallery-style frame when not in use.
Naturally, some of these are very expensive options, but often these are cheaper solutions than blocking a view. In a world where real estate can cost $1,000-plus per square foot, the cost of a TV should be weighed up against the space savings…..
New Mortgage Applications Jump More Than 10%
WASHINGTON — Mortgage applications increased 10.4% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 12, 2024. Last week’s results included an adjustment to account for the New Year’s holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 10.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 26% compared with the previous week.
The Refinance Index increased 11% from the previous week and was 10% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 9% from one week earlier. The unadjusted Purchase Index increased 28% compared with the previous week and was 20% lower than the same week one year ago.
“Mortgage rates declined across all loan types as Treasury yields moved lower last week on incoming inflation data, which helped to support a rise in mortgage applications. The 30-year fixed mortgage rate decreased six basis points to 6.75%, the lowest rate in three weeks,” said Joel Kan, MBA’s vice president and deputy chief economist.
“Compared to a holiday-adjusted week, both purchase and refinance applications were up, and the increases were heavily driven by the conventional market. Although purchase activity is lagging year-ago levels, refinance applications have improved from their recent low point and have been showing year-over-year gains, albeit at low levels. If rates continue to ease, MBA is cautiously optimistic that home purchases will pick up in the coming months.”
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.
© 2024 Florida Realtors®
More Properties Listed, Supply Still Short
The recent pullback in mortgage rates is spurring more homeowners to put their homes up for sale, though the increases so far have been too modest to return the housing market’s inventory of available properties back to pre-pandemic levels.
The number of active listings, a tally of U.S. homes on the market that excludes those pending a finalized sale, climbed 4.9% to 714,176 in December from a year earlier, the biggest annual increase since June, according to data released this week by Realtor.com.
A big part of the increase was due to a 9.1% jump in new listings, or properties that made their market debut in December, which posted an annual increase for the second time after 17 months of declines.
As is typically the case, active listings declined in December from the previous month, falling 5.5%. But the drop was less than the typical decline of 6.8% to 13.2%, Realtor.com said.
While the pickup in home listings is a welcome development for prospective homebuyers, the housing market remains constrained with for-sale inventory still well below pre-pandemic levels.
Consider that active listings were down 30.9% in December compared to the same month in 2019, while new listings were down nearly 12%.
Housing economists expect that the average rate will continue to decline this year, though forecasts generally see it moving no lower than 6%.
That may not be enough to motivate many homeowners to sell, given that some two-thirds of U.S. homes have a mortgage with a rate under 4% and more than 90% have a rate below 6%.
That means the upcoming spring homebuying season is likely to favor sellers as homebuyers compete for a relatively limited number of homes for sale. (Florida Realtors)
And read these articles:
Why Mortgage Rates will fall in 2024
Transitory inflation? Recession? What else will forecasters get wrong?
More insurers coming to Florida
- Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
Andrew.Oliver@Compass.com - AndrewOliverRealtor.com
m 617.834.8205
Naples November Market Highlights
My year end reviews will be published on January 14.
And read these articles:
INFLATION and RECESSION UPDATE
Why Mortgage Rates will fall in 2024
Transitory inflation? Recession? What else will forecasters get wrong?
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year
Market Reports
BAY FOREST Q3 MARKET REPORT 2019-2023
BONITA BAY Q3 MARKET REPORT 2019-2023
IMPERIAL GOLF ESTATES Q3 MARKET REPORT 2019-2023 (more…)
INFLATION and RECESSION UPDATE
This time last year, stocks were still in the gutter, inflation was in the stratosphere and Fed interest rates were going up, up, up. Today the S&P 500 has risen 17% since Jan. 1, the much-anticipated recession has yet to arrive, unemployment remains below 4% and consumers are still spending–Walmart, Target, and Gap all beat expectations this week.
Inflation has dropped to around 3%, not too far off the Fed’s 2% target. Walmart CEO Doug McMillon was talking about deflation in the coming months. Oil prices are below $75 a barrel, Airfares are significantly cheaper this year than they were for the holidays last year. Bond yields are dropping, too, as traders start to price in Fed rate cuts next year. The 10-year yield has dropped back to around 4.4% from as high as 5% in October. (Barrons)
On Thursday, Walmart CEO Doug McMillon said deflation could be coming as general merchandise and key grocery items, such as eggs, chicken and seafood get cheaper.
He said the retailer expects some of the stickier higher prices, such as the ones for pantry staples, to “start to deflate in the coming weeks and months,” too.
“In the U.S., we may be managing through a period of deflation in the months to come,” he said on the company’s Thursday earnings call. “And while that would put more unit pressure on us, we welcome it, because it’s better for our customers.”
“I think the most important observation we’ve made is that the worst of the inflationary environment is behind us,” Hone Depot, Chief Financial Officer Richard McPhail
The question now is whether the Federal Reserve, having been extremely slow to start raising rates and reversing Quantative Easing, will be similarly late in easing. The Fed claims to be data dependent, but data tells us what happened in the past – and the Fed’s actions impact the future.
“The Fed must lower rates to cause money suply to grow by 5% per year, consistent with the 2% inflation target.If the Fed waits until core inflation is 2% we could have a recession.”(Jeremy Siegel, Wharton)
And read these articles:
Why Mortgage Rates will fall in 2024
Transitory inflation? Recession? What else will forecasters get wrong?
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year
Market Reports
BAY FOREST Q3 MARKET REPORT 2019-2023
BONITA BAY Q3 MARKET REPORT 2019-2023
IMPERIAL GOLF ESTATES Q3 MARKET REPORT 2019-2023 (more…)
Why Mortgage Rates will fall in 2024
This article addresses two things: what drives mortgage rates, and why they will fall.
What drives mortgage rates?
The Federal Reserve (Fed) meets regularly and announces, with great fanfare, its “Federal Funds Rate(FFR).” But what is this interest rate and what does it influence?
The FFR is the rate at which commercial banks borrow and lend their excess reserves to each other overnight. It is this rate which impacts the interest rate on many consumer loans, such as credit cards and automobile loans, but NOT 30-year Fixed-Rate Mortgages (FRM).
In general, FRM are sold to Fannie Mae and Freddie Mac and are bundled into portfolios which are sold to investors as Mortgage-Backed Securities (MBS). The yield investors demand for MBS is based upon the yield on the US Treasury 10-year (10T) yield, and the extra yield investors want to buy MBS rather than just risk-free Treasuries.
Look at this chart showing the three rates (FRM, FFR and 10T) over the last year. Note that the Green (FRM) and Red (10T) lines move in tandem, while the blue line (FFR) does not move with either of the other two. Thus, the FRM is determined by the yield on 10T, which is set by the market, and not by the Federal Reserve.
Transitory inflation? Recession? What else will forecasters get wrong?
Economists spent 2021 expecting inflation to prove “transitory.” They spent much of 2022 underestimating its staying power. And they spent early 2023 predicting that the Fed’s rate increases, meant to cure the inflation, would plunge the economy into a recession. (NY TIMES)
“US Economy Grew at a 4.9% Pace Last Quarter, Fastest Since 2021” (Bloomberg)
“The forecasts have been embarrassingly wrong, in the entire forecasting community. We are still trying to figure
out how this new economy works.” (Torsten Slok, Apollo Global Management)
“The economy is slowing faster than recent data suggests.” (Bill Ackman, Pershing Capital)
“I want to point out the central banks 18 months ago were 100% dead wrong. I would be quite cautious about what might happen next year.” (JPMorgan Chase CEO Jamie Dimon)
And read these articles:
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year
Market Reports
BAY FOREST Q3 MARKET REPORT 2019-2023
BONITA BAY Q3 MARKET REPORT 2019-2023
IMPERIAL GOLF ESTATES Q3 MARKET REPORT 2019-2023 (more…)
BONITA BAY Q3 MARKET REPORT 2019-2023
The median price of the Single Family homes sold in Bonita Bay doubled from just under $1.2 million in 2019 to $2.5 million in 2022. YTD Q3 2023 the median price declined slightly from $2.7 million to $2.5 million, but the number of sales was small in both years.
Sales increased until around Q3 2021, thereafter returning to pre-pandemic levels and below.
The median price of the Villas sold in Bonita Bay increased more than 50% from $554,100 in 2019 to $862,500 in 2022. YTD Q3 2023, the median price has increased a further 15% to almost $1 million.
The number of sales has fluctuated in recent years, but the overall number is quite small.
The median price of the Condos sold in Bonita Bay increased 70% from just under $500,000 in 2019 to $831,000 in 2022. On the surface, the median price jumped to $1.1 million YTD Q3 2023, but the 31 sales at Omega boosted the median price. Without those sales, the YTD Q3 median price would be $794,000, a drop of some 6% from the YTD Q3 2022 level, when there were no sales at Omega.
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO).
Median numbers are used in all calculations.
Click on BONITA BAY MARKET REPORT 2019_2023 to read the full report.
And read these articles:
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year (more…)
IMPERIAL GOLF ESTATES Q3 MARKET REPORT 2019-2023
The median price of the Single Family homes sold in Imperial Golf Estates (“Imperial”) doubled from $515,000 in 2019 to over $1 million in 2022. YTD Q3 2023 the median price increased further to $1.2 million.
Sales increased until Q2 2021, thereafter dropping below pre-pandemic levels.
The median price of the Villas increased nearly 50% from $315,000 in 2019 to $465,000 in 2022. The YTD Q3 2023 median price was $539,500, in line with Q4 2022. The number of sales was low, but fairly steady over the years.
The median price of the Condos sold increased by over 70% from $222,000 in 2019 to $386,000 in 2022, before slipping slightly in 2023. Sales increased in 2020/21 before returning to 2019 levels.
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO).
Median numbers are used in all calculations.
Click on IMPERIAL GOLF ESTATES MARKET REPORT 2019_2023 to read the full report.
And read these articles:
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year (more…)
BAY FOREST Q3 MARKET REPORT 2019-2023
The median price of the homes sold in Bay Forest jumped nearly 70% from $268,000 in 2019 to just over $450,000 in 2022. Sales surged until around Q3 2021, thereafter returning closer to pre-pandemic levels. YTD Q3 2023 – a better gauge than quarterly fluctuations on a very small number of sales – the median price increased 14% to $500,000. Quarterly fluctuations will occur when the numbers are small and the price range wide – in Bay Forest from $320,000 to $799,000 in 2023.
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO).
Median numbers are used in all calculations.
Click on BAY FOREST MARKET REPORT 2019-2023 to read the full report.
And read these articles:
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year (more…)
Two More Ways the Mortgage Market differs from 2007/2008
The chart below shows how loans with a credit score under 660 – the bottom colours of yellow and dark blue – which were about 20% of the total in the 2004-2007 period, have virtually ceased, with loans over 720 now making up the vast majority of new mortgages.
Two other changes:
Adjustable-rate mortgages can lead to higher default rates when interest rates rise, but they now represent less than 5% of total purchase and refinance loans, compared with over 35% at the peak of the pre-GFC (Global Financial Crisis) housing cycle. (FORTUNE)
The ratio of Americans’ mortgage debt to their real estate assets—also called loan-to-value—was just 27% in the second quarter, compared to over 40% in 2008 and roughly 50% in 2010. (Bank of America)
And read these articles:
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year (more…)
More insurers coming to Florida
More insurance companies have come to do business in Florida, according to State Representative Bob Rommel.
Rommel said that the four carriers coming will not officially sell you a policy until hurricane season is over. There are three more insurers that are in the process of coming into the state as well.
“Before we got the bill, there was a fear that there will be little or no reinsurance money available for insurance carriers, which they need. Since we passed the bill, everybody has been able to get reinsurance, so I think that there is a light at the end of the tunnel,” said Rommel.
According to Rommel, he’ll continue addressing the state’s insurance crisis when legislators meet again in 2024 (WINKNews) (more…)
Core Inflation Prices Barely Budged in August
While inflation rose 3.5% year-to-year in Aug. – still above the Fed’s 2% goal – it was only up 0.1% month-to-month after backing out higher gas prices.
Core inflation slows
But excluding the volatile food and gas categories, “core” inflation rose by the smallest amount in almost two years in August, evidence that it’s continuing to cool. Fed officials pay particular attention to core prices, which are considered a better gauge of where inflation might be headed.
Core prices rose just 0.1% from July to August, down from July’s 0.2%. It was the smallest monthly increase since November 2021.
Compared with a year ago, (more…)