Friday, January 16, 2015

Luxury Market Gains Momentum in 2014


 
Naples, Fla. (January 16, 2015) - Overall closed sales for homes in every price category above $300,000 saw double digit increases in 2014. As a result, broker analysts contend that 2014 was one of the best years in Naples real estate history for closed sales. According to the Annual 2014 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory increased 16 percent for homes in the $2 million and above price category from 394 in 2013 to 457 in 2014. The report also showed that overall closed sales in this luxury market price category increased 33 percent from 299 homes in 2013 to 399 homes in 2014, yet the overall median home price in this price category held steady year over year at $2,950,000.
 
"Even though the report shows that the overall inventory decreased 6 percent in 2014, it increased in several price categories including the very high end. Interestingly however, and as indicated by the report, prices for luxury homes held steady. There appears to be clear indication of price stabilization," said Coco Waldenmayer, managing broker at John R. Wood Properties.
 
"Yes. That's true," commented Cindy Carroll, SRA, with the real estate appraisal and consultancy firm of Carroll & Carroll, Inc. "The market in general is trending toward a balance of supply and demand and value stabilization. Some market sectors may have reached their peak for this economic cycle in the fall of 2014 while other areas will demonstrate continued value growth in 2015."
 
Buyers looking for single family homes in 2015 will be pleased, as the report indicated a 3 percent increase in inventory of single family homes from 2,260 in 2013 to 2,321 in 2014. As noted by Rick Fioretti, NABOR® President Elect and Broker Associate with Berkshire Hathaway Home Services Florida Realty, this may be due to what the industry calls a "sleeping inventory," or sellers who were unaware of the market's improvement and upon exploring their options with a REALTOR® decided to place their home on the market for sale.
 
While closed sales stood firm at a 3 percent increase for condominiums in 2014, inventory in the condominium market did not fare as well as single family home inventory in 2014. The report indicated a 14 percent decrease in condominium inventory from 2,354 in 2013 to 2,030 in 2014. The only price category that experienced an increase in inventory was the $300,000 to $500,000 price category. It increased 13 percent from 408 condominiums in 2013 to 462 condominiums in 2014. Broker analysts indicate that this increase in inventory may be due, in part, to bracket creep, which is what happens when a home's value increases to a point that it surpasses its current category's threshold and advances into the price category above it. The fact that inventory for condominiums in the $300,000 and below price category decreased 23 percent is further evidence of the bracket creep.
  
The NABOR® Annual 2014 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Annual 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:  
  • Overall pending sales decreased 5 percent from 11,065 in 2013 to 10,494 in 2014.
  • Pending sales for single family homes in the $2 million and above price category increased 28 percent from 249 in 2013 to 319 in 2014.
  • Pending sales for condominiums in the $1 million to $2 million category increased 11 percent from 262 in 2013 to 292 in 2014.
  • Overall closed sales increased 1 percent from 9,723 in 2013 to 9,826 in 2014.
  • Overall closed sales for homes in the $1 million to $2 million category increased 21 percent from 516 in 2013 to 623 in 2014.
  • Overall closed sales for homes in the $2 million and above category increased 33 percent from 299 in 2013 to 399 in 2014.
  • Overall median closed price increased 13 percent from $240,000 in 2013 to $270,000 in 2014.
  • Overall inventory decreased 6 percent from 4,614 homes in 2013 to 4,351 homes in 2014.
  • Average days on market for 2014 was at 82. 
As noted by Bill Coffey, Broker Manager of Amerivest Realty Naples, the gain in Naples housing market's momentum is evident when you compare quarterly sales activity for 2014. Closed sales increased 5 percent in the first quarter, but then fell 4 and 11 percent respectively during the second and third quarters. But in the fourth quarter, sales jumped 9 percent. This increase is a welcome sign and indicates consumer confidence in the Naples area housing market.
 
Industry predictions of a self-correcting housing market have come true. A return to a balanced housing market can be seen in the NABOR® Annual 2014 Market Report because, even though sales increased by double digits for homes above $300,000, the median home price did not shift substantially.

   
 
 
  
To view the entire report, visit www.NaplesArea.com

Move to Florida for warm weather, better tax conditions - Here's How!!

www.ScottSorensonRealEstate.Com


MIAMI – Jan. 15, 2015 – Atlantic Trust, a private wealth management division of CIBC, advises clients to move to Florida to save on taxes.


"Florida has no individual income tax, so many of our clients who live in states that have a high state income tax consider moving to Florida in order to avoid that level of taxation," says Linda Beerman, chief fiduciary officer for Atlantic Trust. "Florida has long been a popular destination for clients who are retirees because there is no state estate tax as well."


One of the issues individuals can face is continued income tax assessments from their former state even though they've moved away. Therefore, it's important for people who relocated to Florida to establish conclusively that they have changed their domicile.


Proof isn't the same as establishing residency, which simply requires having a presence as an inhabitant of a particular place, Beerman says. Someone establishing a domicile not only lives there, but he or she also demonstrates an intent to make that place a fixed and permanent home.
"Individuals can have several residences – that is, different homes in different states – but you can only have one domicile," Beerman says.


To establish that intent, individuals should spend sufficient time in their new "home" state, register to vote, move some tangible property, become involved in a local church or community activities, and change their address.

Saturday, December 20, 2014

Buyers Rush Luxury Market in November

www.ScottSorensonRealEstate.Com




Buyers Rush Luxury Market in November
 
Naples, Fla. (December 19, 2014) - Sellers in the luxury market can expect a very good buyer turnout in the coming months according to a consensus among Naples' top brokers after they analyzed the November 2014 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Their prediction was based on several factors including overall pending sales activity, which rose 11 percent for homes priced over $1 million; overall closed sales activity, which increased 17 percent for homes priced over $1 million; and that the majority of homes sold in the $2 million and above category were cash sales.
 
"Pending and closed sales activity in all price categories above $300,000 was up over the past 12-month period ending in November," said Tom Bringardner, Jr., President/CEO of Premier Commercial.
 
"Activity in the high end market is remarkable coming into season," said Steve Barker, Advising Broker for Equity Realty. "The report indicated that a greater number of homes in the $2 million and above price category were sold [21] as compared to what sold in the same month last year [14]. This is a good sign for sellers in our market because people who have the resources to pay cash for million dollar homes are smart and careful investors. They are not going to make a poor investment decision, which speaks volumes for the value of our market."  
 
The November 2014 report showed heightened activity in several areas of the luxury market including a 40 percent increase in overall closed sales for single family homes priced $2 million and above from 202 in the 12-months ending November 2013 to 282 in the 12-months ending November 2014; an 11 percent increase in closed sales for condominiums priced $1 million - $2 million from 234 in the 12-months ending November 2013 to 260 in the 12-months ending November 2014; and a 35 percent increase in single family median home prices in the Naples Beach area from $739,000 in the 12-months ending November 2013 to $1,000,000 in the 12-months ending November 2014.
 
"Median price in the Naples Beach area single family home market can not continue to increase at the current rate indefinitely," said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm of Carroll & Carroll, Inc., who added that, despite aggressive activity in new construction, the report indicated that inventory in the resale market continued to decline.
 
The NABOR® November 2014 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® November 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
  • Overall pending sales decreased 2 percent from 840 in November 2013 to 825 in November 2014.
  • Pending sales for single family homes in the $300,000-$500,000 price category increased 32 percent from 99 in November 2013 to 131 in November 2014.
  • Pending sales for single family homes in the $2 million and above category increased 24 percent from 25 in November 2013 to 31 in November 2014.
  • Overall closed sales decreased 2 percent from 9,878 in the 12-months ending November 2013 to 9,635 in the 12-months ending November 2014.
  • Median closed price increased 12 percent from $236,000 in the 12-months ending November 2013 to $265,000 in the 12-months ending November 2014.
  • Median closed price for single family homes in the $2 million and above price category increased 50 percent month over month from $2,600,000 in November 2013 to $3,900,000 in November 2014.
  • Overall inventory decreased 10 percent from 4,584 homes in November 2013 compared to 4,136 homes in November 2014.
  • Average days on market for November is at 79. 
According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, the market's median closed price has gone up 62 percent in the last four years from when it was $169,000 in November 2010 to $272,000 in November 2014. And inventory is down 63 percent from one of its highest points of 11,116 in November 2008 to 4,136 homes in November 2014.
 
"Traditionally, the soft part of the year for real estate is September, October and parts of November," said NABOR President Mike Hughes, Vice President and General Manager of Downing-Frye Realty. "But this year, the soft wasn't soft; it was strong."
 
Despite a double-digit drop in overall inventory, the Naples area real estate market continued to see positive growth in various price points, categories, home styles and neighborhoods for both pending and closed sales activity in November. With luxury homes at a premium, homeowners that decide to sell in Naples now may begin to encounter more cash offers. Navigating the complexity of these real estate transactions can be made easier with guidance from a Naples REALTOR®. 

 
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
  
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
 
  
To view the entire report, visit www.NaplesArea.com
EXPLORE OUR WEBSITES
 
    
      

Tuesday, November 25, 2014

Condominiums an Affordable Option in Naples Market

www.ScottSorensonRealEstate.com




         Condominiums an Affordable Option in Naples Market
 
Naples, Fla. (November 21, 2014) - As buyers seek an opportunity to own a home in Naples, condominiums continue to be an affordable option. Condominium median closed prices increased only 9 percent from $198,000 to $215,000, which is below the overall median closed price of $265,000 in the 12-months ending October 2014. In comparison, single family homes experienced a 21 percent increase in the median closed price from $280,000 to $340,000 in the same time period according to an October 2014 report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
 
Most of the sales activity in the Naples condominium market is in the $0-$300,000 category with 3,483 closed sales recorded in the 12-months ending October 2014. Compared to the sales activity for the single family home market, which had 1,986 closed sales recorded in the same $0-$300,000 category in the 12-months ending October 2014, condominium sales in Naples are stronger.
 
"In October 2013 the difference between the median closed price of condos and single family homes was $82,000 compared to October 2014 when the difference was $125,000," said Phil Wood, President & CEO of John R. Wood Properties.
 
Mr. Wood's comparison shows median closed prices for condominiums did not increase as fast as median closed prices for single family homes. Yet inventory for both types of homes in the $0-$300,000 category continued to deplete in October 2014 with a 22 percent decrease in single family homes and 27 percent decrease in condominiums compared to October 2013.
 
The report also indicated cash sales remained strong with cash sales growing to 67 percent of overall home sale transactions in October, as noted by Kathy Zorn, Broker/Owner, Florida Home Realty, who believes is due, in part, to the tightening of mortgage requirements. "Nationally, the cash sales rate is at about 33 percent", she said, "Cash offers in our area put buyers in a stronger position than buyers using conventional financing."
 
As for the short sale or foreclosure market, the October report showed only 18 short sale transactions and 73 foreclosed property sales taking place in October 2014.
 
"Traditional sales accounted for 87 percent of all reported transactions in October 2014, which is an indicator of a strong housing market in the Naples area," said Carmen Isbely Vasquez, Owner/Broker of US Prime Realty.
 
The NABOR® October 2014 Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® October 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
  • Overall median closed price increased 13 percent from $235,000 in the 12-months ending October 2013 to $265,000 in the 12-months ending October 2014.
  • Overall pending sales increased 9 percent from 839 in October 2013 compared to 911 in October 2014.
  • Pending sales for condominiums in the $1 million-$2 million category increased 211 percent from 9 in October 2013 compared to 28 in October 2014.
  • Overall closed sales decreased 2 percent from 9,912 in the 12-months ending 2013 to 9,667 in the 12-months ending 2014.
  • Closed sales for single family homes in the $2 million and above category increased 31 percent from 210 in the 12-months ending October 2013 to 275 in the 12-month ending 2014.
  • Median closed price increased 13 percent from $235,000 in the 12-months ending October 2013 to $265,000 in the 12-months ending October 2014.
  • Overall median closed price for homes in the $1 million-$2 million and $2 million and above categories both decreased 3 percent.
  • Overall inventory decreased 10 percent from 4,376 homes in October 2013 compared to 3,939 homes in October 2014.
  • Average days on market for October is at 73. 
The October reports showed signs our winter residents and visitors returned early this year: Overall pending sales rose 10 percent from September 2014 (829) to October 2014 (911), and inventory also increased from 3,702 units available in September 2014 to 3,929 units available in October 2014. Pending sales are driving the market into what is anticipated to be a strong fourth quarter according to NABOR®.
 
"We're seeing the demand for homes in the Naples beach area start to rise again too," said Steve Barker, Advising Broker for Equity Realty, who added that the report showed pending sales for both condominiums and single family homes rose over 40% in this geographic area for October 2014 compared to October 2013.
 
Several broker analysts agreed with incoming NABOR® President Mike Hughes, Vice President and General Manager of Downing-Frye Realty, who remarked that Naples is now an exclusive luxury destination similar to Aspen and Hilton Head, and predicts the area is poised to see more price appreciation, especially in the luxury single family home market.
 
With the majority of inventory in the $0-$300,000 category located in the condominium market, buyers looking to own a piece of paradise are encouraged to seek guidance from a local REALTOR®, who can help them navigate through the 1,800 available condominiums for sale-of which half are priced under $300,000-and find a perfect fit.
 
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
  
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
 
  
To view the entire report, visit www.NaplesArea.com
EXPLORE OUR WEBSITES
 
This email was sent to you by Naples Area Board of REALTORS®.      

Saturday, November 22, 2014

Collier home sales continue to show strength

www.ScottSorensonRealEstate.Com


NAPLES, Fla. - Winter visitors have arrived early, and they’re snapping up homes, particularly along the beach.


The latest monthly report by the Naples Area Board of Realtors showed overall existing home prices in Collier County, excluding Marco Island, rose 8.2 percent in October from the same month a year earlier, to a median of $265,000.


That’s down from its recent double-digit growth rate, because many more new homes are entering the market, said David Cobb, South Florida regional director of research group MetroStudy.
“Builders are picking up the pace,” he said.


But the supply of newly constructed homes hasn’t been enough to dampen sales of existing ones.
NABOR said closed sales rose 5.8 percent to 707 in October year-over-year, while pending sales were up 8.6 percent to 911.


Real estate broker Phil Wood, president of John R. Wood Properties in Naples, said most of the sales are being made to seasonal visitors, who are arriving earlier than usual this year.


But he said they are coming from the Northeast instead of the Midwest, which is the region’s traditional feeder market of vacation homebuyers and retirees.


That’s helped bolster prices because sellers in the Northeast have higher-priced homes and so have more equity to spend on a Naples-area property.


“It’s not just the weather that’s driving Northeasterners here,” he said. “They’re fed up with higher taxes and the cost of living.”


Demand was strongest along the beach. Overall, sales in this area, which spans the 34102, 34103 and 34108 ZIP codes, rose 40 percent in October from the same month the year before.
Kathy Zorn, broker and owner of Florida Home Realty in Naples, said demand was particularly strong in some of the older and more expensive beach neighborhoods such as the Moorings, Park Shore and Port Royal.


“People are picking up older houses and tearing them down,” she said.
Meanwhile, NABOR said 3,939 resale properties were on the market in October, a 10 percent decline from a year earlier.


But the drop was almost entirely in the supply of condominiums, which fell 19 percent, to 1,811, in October from the year before. For the same period, single-family home inventory was flat.


Demand is highest for the least expensive condos, Wood said. Condo prices haven’t increased at as quick a pace as single-family homes, he added, which makes them more affordable to workforce buyers who are competing with out-of-towners.


But both homes and condos continue to move fast, said NABOR president Pat Pitocchi. Overall, average days on the market dropped to 73 in October from 107 a year earlier, a whopping 32 percent decline.


“The housing market is trending up, and people are feeling better about their finances,” she said. “That’s when urgency kicks in.”



Friday, October 24, 2014

Housing is missing 700K in sales

ScottSorensonRealEstate.Com


WASHINGTON – Oct. 24, 2014 – A drop in single-family home sales – both new homes and existing homes – over the past few years equates to a real estate market that is at least 700,000 shy in annual home sales, according to estimates by David Crowe, the chief economist for the National Association of Home Builders.
He arrived at that estimate by taking into account historical market averages in the late 1990s and early 2000s, which showed home sales at about 5.6 million per year – made up of 900,000 new-home sales and 4.7 million in existing-home sales.
But the latest loss in sales can largely be attributed to a drop in new-home sales, Crowe notes. Single-family new-home sales peaked in 2005 at 1.3 million, but plunged by 77 percent to 300,000 in 2011. It's slowly been regaining. Meanwhile, existing-home sales – heavily lifted by distressed sales to investors in recent years – dropped 40 percent from peak to trough, Crowe notes.
"As demand for more homes dried up, households lost their owned homes through foreclosure, and the number of newly formed households shrank, the existing supply of homes was more than sufficient to satisfy demand," Crowe says. "Adding more inventory to a saturated market made little sense" at the time.
First-time buyers will be key to making up for the loss in sales, Crowe says. Sales of existing-homes to first-time buyers are more likely to result in the seller buying a new home, he notes.
"First-time buyers expand the need for more homes even if they aren't the primary purchasers of those new homes," Crowe notes. "First-time buying was 40 percent of the existing market and 30 percent of the new-home market in in more stable periods. Those shares, of a smaller market, have dropped to 27 percent and 16 percent, respectively. …
"First-time home buyers continue to struggle with their own financial limitations but as the economy expands and jobs become more available and better paying, the core 25- to 34-year-old first-time buyers will come back."

Friday, October 17, 2014

3rd Quarter Inventory Remains Tight


3rd Quarter Inventory Remains Tight


 

Naples, Fla. (October 17, 2014) - Limited inventory continues to be the story of the Naples area real estate market, according to the third quarter report released by the Naples Area Board of REALTORS® (NABOR®). Inventory of existing homes decreased 9 percent from 4,080 homes available in the 3rd quarter of 2013 to 3,702 homes in the 3rd quarter of 2014. This tight inventory affected sales activity as demonstrated by a 10 percent decrease in pending sales from 2,548 in 3rd quarter 2013 to 2,304 pending sales in 3rd quarter 2014; and an 11 percent decrease in closed sales from 2,339 in 3rd quarter 2013 to 2,093 closed sales in 3rd quarter 2014.

 

Contrary to the reduction of pending and closed sales in the 3rd quarter of 2014, real estate agents across Collier County reported being very busy keeping up with the growing demand. This anomaly, as confirmed by a panel of brokers analyzing the NABOR® 3rd Quarter 2014 Naples area market statistics, is likely a result of the market experiencing an influx of new home construction that, while not reported in the Southwest Florida MLS, has replenished the void resulting from a decreased inventory in the resale market.

 

"I don't think the market need has changed," said Steve Barker, Advising Broker for Equity Realty. "Agents are showing homes every day because the new construction market has finally caught up to the demand. But the resale market is still desirable as location continues to be a factor for many new home buyers and the new construction market can't be everywhere."

 

Pat Pitocchi, NABOR® president and corporate trainer at Downing-Frye Realty said, "The market report does a good job at showing us a big picture view of how the resale market in Collier is behaving in general. However, it does not report all new homes sales, which appears to be a considerable segment of the current market activity according to reports from local brokers."

 

Wes Kunkle, a commercial broker at Kunkle Realty, pointed out that the 21 percent decrease in overall pending sales in the $300,000 and below market drove the overall 10 percent decrease. "Overall pending sales in every price segment over $300,000 increased in the third quarter 2014. Overall closed sales increased in two of the five price segments, $300,000 to $500,000 and $1 million to $2 million, as well."

 

The NABOR® 3rd Quarter 2014 Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 3rd Quarter 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

 

  • Pending sales of single family homes over $2 million increased 26 percent from 43 in 3rd quarter 2013 to 54 3rd quarter 2014.
  • Pending sales of condominiums between $1 million and $2 million increased 29 percent from 38 in 3rd quarter 2013 to 49 in 3rd quarter 2014.
  • Overall closed sales in the $300,000 to $500,000 category increased 13 percent from 398 in 3rd quarter 2013 to 451 in 3rd quarter 2014.
  • Overall closed sales in the $1 million to $2 million category increased 14 percent from 91 in 3rd quarter 2013 to 104 in 3rd quarter 2014.
  • Overall median closed price increased 13 percent from $234,000 in 3rd quarter 2013 to $265,000 in 3rd quarter 2014.
  • Overall median home price of homes over $300,000 decreased 7 percent from $530,000 in 3rd quarter 2013 to $493,000 in 3rd quarter 2014.
  • Overall inventory decreased 9 percent from 4,080 homes in 3rd quarter 2013 to 3,702 homes in the 3rd quarter of 2014.
  • Overall inventory of single family homes in the $300,000 to $500,000 market increased 15 percent from 422 in 3rd quarter 2013 to 487 in 3rd quarter 2014.

According to Kathy Zorn, broker/owner at Florida Home Realty, "Homes priced under $300,000 may make up over 60 percent of our market but this is not our entire market. In fact, the 3rd quarter report showed an increase in inventory of single family homes in the combined price categories above $300,000, which accounts for 1,564 homes or 42% of the overall 3rd quarter inventory.

 

NABOR® also released its September 2014 Market Report, which revealed the following:

  • Overall pending sales increased 2 percent from 810 in September 2013 to 829 pending in September 2014.
  • Overall closed sales decreased 3 percent from 9,919 in the 12-months ending September 2013 to 9,585 closed sales in the 12-months ending September 2014.
  • Overall median closed price increased 14 percent from $230,000 in the 12-months ending September 2013 to $262,000 in the 12-months ending September 2014.
  • Overall inventory decreased 9 percent from 4,080 in September 2013 to 3,702 in September 2014. 

Broker analysts agree that new construction within the last year is a welcome addition to the Collier County housing market.