Good news! Just posted the biggest Spring ever!
Real Estate UPdate from Chris Quackenbush, your Golf and Gulf real estate expert from Fort Myers, Florida.
Stats don’t lie and new stats bode well for a booming recovery in the Ft Myers area. From the feeding frenzy top of the market in 2005, the average price has declined a remarkable 48.42%.
Data from 1/1/2010 to 9/8/2010, one year ago, shows total sales in Lee County which includes hard hit areas of Lehigh Acres and Cape Coral amounted to $1,948,904,385. The following chart from the same period this year shows total sales rose to $2,041,362,025. Not only that, but the average price rose 12.7%.
|Other: 0||Total: 14117|
|Bedrooms||Bathrooms||Square Feet||List Price||Selling Price||DOM/CDOM|
|Total Dollar Value||$1,948,904,385|
|Here’s the data from 1/1/2011 to 9/8/2011 in Ft Myers MLS||Sold: 13121|
|Bedrooms||Bathrooms||Square Feet||List Price||Selling Price||DOM/CDOM|
|Total Dollar Value||$2,043,086,856|
When the market was boiling over in 05, we were told demand from aging baby boomers wishing to share Florida’s Famous Sunshine would continue to buoy the markets for the foreseeable future. http://findarticles.com/p/articles/mi_m0KXG/is_3_7/ai_n15762680/
This article from 2008 Sun Sentinel sites similar projections: http://www.tcpalm.com/news/2008/aug/04/new-wave-baby-boomers-ready-descend-florida/
This article claims the peak of the baby boom move to Florida would be 2011 and would last for 10-11 years. This may be accurate, but the authors didn’t imagine the melt down of the economy would forestall the decision for several years in the meantime. This pessimistic article from the Miami Herald showed that result: http://www.miamiherald.com/2011/01/31/2043029/fewer-people-moving-to-florida.html
Now, we have pent up demand with all those who chose to wait it out and work longer. News articles are a barometer of the past, but the demand is about to explode again for these reasons:
- Inventory has dramatically declined. Here’s a quote from http://www.worldpropertychannel.com/us-markets/residential-real-estate-1/real-estate-south-florida-housing-market-condo-vultures-miami-home-sales-miami-condos-for-sale-miami-condos-for-rent-troubled-assets-relief-program-tarp-peter-zalewski-3577.php
- “In the last two years, the number of homes for resale in Miami-Dade, Broward, and Palm Beach counties has declined by nearly 39 percent to less than 66,000 as of Nov. 22, 2010, compared to nearly 108,000 on Nov. 24, 2008, according to Condo Vultures new report.”
- In Southwest Florida, Lee County, we have plummeted from over 18,000 listings to 7,316 today. This is a decline of 60%!
Building permits are at record lows because resale prices are too low to make much profit.
- The Sun is still shining on Florida’s famous white sand beaches and thousands of golf courses, while the North has experienced extreme weather both hot and cold, flooding, tornadoes, and hurricanes.
- More importantly, overall political and economic pressures have everything to do with the future of real estate. Government was responsible for the overheated markets and creation of the bubble, and government will be the reason markets improve.
Florida has a new Governor, Rick Scott, who is doing a marvelous job cutting spending and producing jobs in the state. 2012 is shaping up to be a dramatic shift in Federal government from tax and spend liberals to a conservative rebirth like none before in our history. The shift began in the last elections and continues to accelerate with national sentiment swinging to the right in advance of 2012.
Once the Conservatives control of the Executive branch and the Senate, the job will be overwhelming, but very manageable with the right ideas. Living in the Carter years and transitioning to President Reagan, I have seen the changes can be dramatic and results swift.
For these reasons, I see the light at the end of the tunnel and new days are coming for the beleaguered real estate market of Southwest Florida. Investing now in the incredibly low-priced market with historic lows in interest makes enormous sense.
Your Southwest Florida Golf and Gulf Real Estate Specialist
AMAZING sales this year! Since the first of the year, we just crossed the 100 sold mark in Colonial Country Club in Ft Myers, Florida. This compares with 82 sold in the same timeframe last year. With only 62 available today out of a total of 1,699 homes available our inventory is remarkably low. This is a testament to the popularity of this community…and for good reason!
- *Championship Golf Course by Gordon Lewis
- *Active Golf and Tennis Programs
- *14,000 sf Clubhouse with formal dining, sports bar and live entertainment
- *Friendly, fun loving folks
- *Affordable homes and condos and the best amenities around for the low price of $3977 annual dues and no required club minimums
* and it is Close to Regional Southwest Florida Airport for easy travel
This new listing is only $319,900 completely furnished. Just bring your luggage, golf clubs and tennis racket. It’s 1,715 sq ft with tile floors, 2 bedrooms 2 baths and a den. The master bathroom has a door to the pool for convenient use. Just call me at 239-823-2980 for details! Spacious Great Room
Well, which direction is it for real estate?
I have consulted with the pundits, examined all the figures
and looked into my crystal ball……
And here are my conclusions:
The market is going up because…..
1. Inventory is the lowest I’ve
seen in Colonial (57 total available) and in the County there are only 7,485
2. I have observed that many who
had stalled their retirement move to FL are now starting to move on their
plans. With no FL State income tax and our wonderful weather, all those
baby boomers will finally arrive in the Sunshine State.
3. Interest rates are as low as I have seen in my lifetime and the FED promised to keep it low for 2 years.
4. Foreign currency has gained against the dollar which makes our real estate more attractive for our
Canadian and European buyers.
And the data shows that our average price in the County has risen from $137,034, to $165,243, a 20% increase in price year over year.
But the market is going down because….
- New laws are going into effect adding a 3.8% tax to the gain on home sales.
Here’s a link to the details: http://blog.registeredrep.com/von_aldo/2010/10/04/is-there-really-a-home-sales-tax-hidden-in-obamacare/
- Home sales are slowing. The current 3 months number of homes sold in the
County was only 4,274 as compared with 4,919 last year for the same time
period. That’s a 14% drop.
- Economic and political uncertainty is causing reluctance in the market.
- With roughly 25% of the homes underwater on their mortgages, some project another
round of foreclosures. http://money.cnn.com/2011/02/09/real_estate/underwater_mortgages_rising/index.htm
- Unemployment is an issue that looks like it will continue to dampen the market.
So is that all now totally clear? I suggest we should
all have a nice glass of wine and enjoy your day!
Remember, I’d love to work on your needs and please send
Realtor, ePro, Top Performer Award
Certified Shortsale Professional
Web Site www.QTeamRealEstate.com
“If your ship doesn’t come in, swim out to it!”
Sales are smashing records in Colonial this year. there are only 57 homes and condos available and season is yet to begin! Contact me at 239-823-2980 to get the information for your needs.
Your Golf and Gulf Realtor,