Monthly Archives: June 2015

Months Supply of Inventory Dips Drastically

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Sellers, listen up!  You’ve probably heard Realtors state over the years “This is the Best Time to Buy” or “This is the Best Time to Sell”.  There may have been truth to that, but never more so than right now.

Months Supply of Inventory Dips Drastically

Inventory levels have dropped to their lowest level since we began tracking inventory with a new system in 2012.  We’re down to 4,712 single family homes on the market in Lee County and this brings us to a new low in Months Supply of Inventory, down to just 4.3 months.  That is a 22.9% drop in months supply from last year and a 14.9% drop in number of listings compared to last year.

Months Supply of Inventory Dips Drastically

If I were to tell you new pending sales were up 5.6% and May closings were up 1.2% you might wonder how that could be if inventory levels were falling drastically.

It’s all true.  Sales are out-pacing new listings.  Closings are up and it’s driving the supply of available inventory down.  Median sale prices are up 11.4% in May while average sale prices fell by .8%.  This tells us that the bottom of the market is coming up which is pushing the median price up.  The big sales didn’t occur last month so it didn’t pull the average up at the same rate.

Months Supply of Inventory Dips Drastically Single family homes sold

Some sellers are getting nervous and wondering if now is the best time to sell while others see a nice upswing and want the market to go up even more so they’re waiting to sell.

From a statistical standpoint, the best time to sell is when you have more buyers than sellers, and this market definitely qualifies for that.  We can’t tell you how much further the market will go up, how fast, or for how long.  What we can tell you is demand is larger than supply and it’s always more fun to sell in those kinds of markets.

If you’ve ever tried to sell a home when supply was much greater than demand you know that’s not near as much fun.  We’d caution sellers not to overprice, even in a low supply market or you may miss it.  Buyers will turn off at a certain point.  Back in 2005 buyers turned off.  Of course they were a different kind of buyer back then.  We had speculators back then.  What is different today is we have real buyers, real end users.  That’s why we’re not concerned about a downturn like we were in 2005.

Just the same, buyers can only purchase what they can afford, so there is a limit to what they can pay.  Unless we import a bunch of millionaires, incomes will drive the market and pricing as much as supply and demand will.  We’re getting to that point.  We could see further price gains with this kind of demand/supply imbalance but there will be limits one day, and this is one of those moments in history where sellers may want to begin asking the question, “Is now the time to sell?”

When we hit that point prices may stagnate and supply and demand may level out.  That doesn’t mean prices have to fall.  It just means it won’t be as fun to be a seller as it is today.  Today is big fun for a seller.  Tomorrow may be good, just not big fun.

If you’ve ever been to a sporting even and thought that game was good, but not as good as the best game I ever saw, it might be a little bit like that.

If you’d like to check out available inventory, you can do so on our website at Leecountyonline.com  You can also find out what your home is worth too.

If you’re thinking about selling, now might be a good time to call us and we can discuss your options.  239-489-4042  We’re here today, tomorrow, or next year, but it might be more fun to talk today!

SW Florida Real Estate Market Update

 

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Feel free to view our Virtual Tours

SW Florida Real Estate News Week of June 26, 2015

Other Resources

Fun Things to do in SW Florida

Fishing and Boating in SW Florida

Lee County Florida Sports

SW Florida Entertainment

 

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

How New Federal Rules Will Affect Financed Closings After August 1?

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A few weeks ago we wrote about 8 things buyers and sellers need to know before August 1.  Since then we attended a TRID (TILA-RESPA Integrated Disclosures) class taught by Westcor Land Title Company and we thought we’d bring you new information as it will affect closings this Fall.

How New Federal Rules Will Affect Financed Closings After August 1

The Good Faith Estimate and initial disclosure are being replaced by a Combined Loan Estimate.  This disclosure is done upfront.  At the end of the loan process there are sweeping changes as well.  There will no longer be a HUD-1 closing statement nor the Truth in Lending disclosure.  Those are being replaced by a new 5 page single Closing Disclosure form.  Ironically, this form will not suffice as a closing statement.  Title companies will still need to prepare a 2 page closing statement and there is no set regulation on that.

How New Federal Rules Will Affect Financed Closings After August 1

Let’s get to the issues that will affect closings.  There are new rules that require 3 day disclosures to the borrower.  This will require the lender to gather information from the title company so they can properly disclose to the buyer.  But wait, it’s more than 3 days.  If you mail the documents regulations say there is a 3 day window on top of the 3 day waiting period, so we’re looking at 6 days.  Lenders may try to find a way to personally deliver the documents, but that’s not always practical.

Electronic delivery may become an option, but there has to be proof the borrower is actually the one that opened and reviewed the files, so it gets tricky.  Fines for non-compliance are harsh, so lenders are not going to want to mess around with this.  It’ll be easier for them to say sorry, closing must be delayed.

HOA’s will play an important part too.  The title company will need estoppel payoffs much sooner, but they’re only good for so many days.  Typically these HOA management companies want to charge extra fees for updating them, so title companies wait until end, but they won’t be able to.  HOA’s need to change the way they do business or we won’t be having on-time closings.  If things change, it may trigger a new re-disclosure process.  If it does, plan on an extra 2 weeks.  Even if an HOA fee doesn’t trigger a new waiting period, the form still needs to be changed for closing.  This will require banks have people on standby just to change figures like prorations and estoppel fees that don’t affect the borrower.

How New Federal Rules Will Affect Financed Closings After August 1

If there are walk-thru issues that affect the closing it will require the final disclosure to be redone.  Who is going to do that and when?  The lender will, but the lender has a hard enough time meeting today’s deadlines.  Just imagine issues like this.

We predict final walk thrus may be done a week or more before closing to prevent issues at closing.

You can kiss the 30 day closing goodbye.  It’s not going to happen.  We’re probably looking at 45-60 day closings realistically.

What happens when one of the agents understands the new process but the other one doesn’t?  Many agents only do 1-2 transactions per year.  Buyers and sellers may have to re-think who they do business with because these new rules require agents who are on top of their game, and details.

The consumer will not be educated.  New rules take effect, but there is no education program for consumers.  They will get all their education from lenders, agents, and title companies.  Let’s just hope the lenders are ready for the new forms, the new deadlines, and that the agent you’re working with is too.  It will take all of us working together to pull this off.

I see blood in the water.  Not because it can’t work, but rather because I don’t see an entire industry all having the staffing and education necessary to pull this off at the get-go.

HOA’s will need to change too.  The FAR-BAR contract is being re-worked for the new rules.  Most people won’t know that the new Federal rules violate state laws in 24 states, including Florida, in regards to sections C. and H in the new Closing Disclosure.  So it will be interesting, and some changes will have to be made.  Until then, pray that your lender and agent are prepared for August 1.  If not, your closing may not take place.

Search MLS listings in SW Florida the new and easy way.

Fort Myers and Cape Coral Listing Inventory Down 9.2%

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Fort Myers and Cape Coral listing inventory down 9.2% in the latest data released by Florida Realtors.  To be fair, this data includes more than just Fort Myers and Cape Coral.  It includes single family homes in all of Lee County, but since Fort Myers and Cape Coral are the two largest cities, that’s how the headline reads.

Fort Myers and Cape Coral Listing Inventory DownFort Myers and Cape Coral Listing Inventory Down Total Inventory Down

If new listings are up 6.1% over last year, you might be asking how listing inventory is down 9.2%.  New listings have been up for several months in a row now.  The answer is while new listings are up, new pending sales are up 10.2% in April and 17.7% in March.

Fort Myers and Cape Coral Listing Inventory Down

New listings are hitting the market, but demand is soaking them up before they can linger on the market.  This tells us that demand is out-pacing supply.  Agents complain that there just isn’t enough inventory and they’re correct.  We have inventory, it’s just that it’s not enough for the demand.

As you can tell we’re into graphs as they tell a story visually that sometimes gets lost in the raw numbers.  Of course, we only have so much room in the article or we’d fill it with all graphs and no explanation.

Buyers have been into our office desperate to find homes in their price range.  One way buyers can find out about new listings that hit the market is to search online.  Our website has a feature whereby if you login and save your search the system will email you listings that match your criteria.  You can save the listings that interest you, but the best part is when a new listing hits the market that matches your criteria the system will notify you.

Buyers love being notified when new properties hit the market.  They get a leg up on the competition.  Unlike some of the national websites, our information includes all the listings that brokers share with each other and its updated daily.  Some of these national websites have old data or not all brokers participate.  Remember, it’s the individual brokers who decide where the listing data is displayed, not these national companies.

This is probably why buyers get upset when they find properties online only to find out it’s been off the market for awhile.  That is frustrating.  These national websites come in and spend a ton of money online promoting their websites so it’s hard for buyers to know which sites are the best ones to search on.  They typically search whoever is listed at the top of Google or Bing not knowing that website may not have accurate or timely data.

I’ve been seeing new national websites popping up weekly now.  All they are trying to do is scrape data from the MLS or wherever they can get it, attract buyers through online advertising, and then sell ads to brokers.  Why not go straight to the source and get the best data directly from a broker?

Sellers like our website too because they can find the value of their home through our home valuation tool.  Sellers too can be on the lookout for new listings because many times they want to find a property to buy before they decide to sell.  Having a local broker who knows the market is gold versus a website that sends your lead out to multiple agents who may or may not be active in your market.

With tight inventory buyers need every advantage they can get.  They’re not competing with the sellers as much as they are against other buyers who want the same property.  Give yourself the extra advantage and call the Ellis Team at RE/MAX Realty Group 239-489-4042 or visit our website at www.Topagent.com
SW Florida Real Estate Market Update

8 Things Buyers and Sellers Need to Know Before August

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We first wrote about this topic back in March and yet we still find many agents and buyers and sellers have no idea what’s about to happen starting August 1. Large companies like RE/MAX are lobbying Congress to delay implementation because so few are prepared and the impact will be great.

8 Things Buyers and Sellers Need to Know Before August

I’m attending a major seminar next week about the upcoming changes and their effects on real estate closings. Let us tell you what we know right now.

8 Things Buyers and Sellers Need to Know Before August

1. Currently borrowers receive two separate forms at loan application; the Good Faith Estimate and the initial disclosure. This is being replaced by a Combined Loan Estimate.

2. At the end of the transaction the HUD-1 settlement statement and the final TILA (Truth in Lending Disclosure) are being combined into a new 5 page single Closing Disclosure Form.

3. Closing times will be impacted by the new requirements. The CFPB (Consumer Financial Protection Bureau) mandates borrowers have at least 3 days to review the new Closing Disclosure. Review starts upon receipt of the form by the borrower. This means 6 business days unless you can confirm receipt by hand delivery.

4. Walk-Thrus will need to be moved up. Often times at walk-thru the buyer notices a repair item or something missing that was in the contract. The seller needs to keep a property in same repair up until closing. If the walk-thru is done the day of closing there isn’t time to change the closing statement. A title company cannot give a credit to the buyer on the closing statement without re-starting the time issue. It’s unclear if an item can be escrowed, but I have heard a repair can be escrowed as long as no money goes to the buyer.

5. If a closing is delayed for any reason, it changes to disclosure and prorations, which means the process starts all over and everyone must wait to close.

6. Line numbers have been removed on closing statement. There are now 7 fee areas on the disclosure, like origination charges, services buyer did not shop for, services buyer did shop for, taxes and other government fees, pre-paids, initial escrow payment, and other.

7. Buyers will receive more than one closing disclosure. There is one 7 days before closing and another noting any changes that occurred between initial disclosure and closing. One title company states this disclosure can be done post-closing but an attorney I spoke with familiar with that matter said differently, so we need more clarification on this matter.

8. Lenders have notoriously sent over closing packages the same day as closing. This practice will end, and that’s the good part. It will force many lenders to get their stuff together well in advance.

The hiccups will occur with lenders and title companies that aren’t prepared and on a strict systematized schedule. We also see problems when a lender does not have final clear to close from underwriting in time to make all these disclosures.

Additionally, if there are any changes like repairs, those must be negotiated well in advance. We see many deals falling through. Closings will take longer, and frustrations will mount for buyers and sellers. The government will not care that the buyer has a moving truck sitting in the driveway all ready to go for a week. The government will not care that the buyer wants to close; everyone will be forced to wait.

The government will not care that the seller needs to close by a certain date to close on their next house. Any changes will delay several closings, and nobody will care. The buyer can be perfectly fine with new changes, I.E receiving a credit, but everyone must wait to re-disclose and close.

Agent, lenders, and title companies will be pulling their hair out. Fortunately for me, I’m bald. A lot of education and communication will be needed as we inch closer to August. We can all gripe about it, but its here and we have to deal with it. If your closing is delayed, you can thank the government for more regulation. They won’t care, so just sit back and be patient. It is what it is folks!

Good luck and Happy Home Selling/Buying!

SW Florida Real Estate Market Update

Update to Story

CFPB Just Announced Relaxed Enforcement August 1

 

Visit our Google+ Business Page

Feel free to view our Virtual Tours

New Riverfront Rental at Oasis

Check out our Buyer Advantage Program

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Other Resources

Fun Things to do in SW Florida

Fishing and Boating in SW Florida

Lee County Florida Sports

SW Florida Entertainment

 

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

Real Estate in the Headlines

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We thought you might like to keep up to date on some of the real estate in the headlines we’re reading, so we’re rolling out periodic updates you might enjoy.

Real estate is always a hot topic in the news.  Different areas of the country experience different real estate markets because they are subject to varying economic conditions.
Here are some headlines we published yesterday

Real Estate in the Headlines

Each week our blog brings you local news and information but we don’t live in a bubble either.  Real estate, while local, can be influenced by markets across the country and by changing economic and tax climates both here in the U.S. and abroad.

Real Estate in the Headlines
River and Pool View of Town and River Home

Does this pool look enticing to you?  It sure does to me.  We’ve included a search function on our website if you’d like to search for your private pool in paradise.

 

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SW Florida Real Estate Market Update

Visit our Google+ Business Page

Feel free to view our Virtual Tours

New Riverfront Rental at Oasis

Check out our Buyer Advantage Program

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Other Resources

Fun Things to do in SW Florida

Fishing and Boating in SW Florida

Lee County Florida Sports

SW Florida Entertainment

 

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

May 2015 SW Florida Market Real Estate Update

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Official numbers for April were just released and median sales prices were up 14% over 2014 numbers.  As you can see from the sales prices graph, median home prices have more than doubled since 2011.  In fact, they’ve gone up 157.63% since January of 2011 which is a nice gain by any standards.

May 2015 SW Florida Market Real Estate Update Fort Myers Real Estate Prices

People often call our office asking for homes they can flip.  They are surprised to learn how low inventory is right now.  They immediately ask about short sales and foreclosures and we tell them there aren’t many anymore.

The economy has improved and so has people’s job outlook.  Secondly, home prices have improved such that if they were underwater before, they may be able to sell now without being a short sale.

Most of the people who were in trouble have sold via short sale or lost their homes via foreclosure awhile back.  The public simply needs to know that SW Florida has recovered and it isn’t that kind of market anymore.  Most locals know that but visitors who aren’t familiar with our daily headlines are not.  Sometimes they read old stories on the Internet or watch old videos on YouTube.

May 2015 SW Florida Market Real Estate Update

 

May 2015 SW Florida Market Real Estate Update

Here is a graph that shows perfectly traditional sales versus short sales versus foreclosures in Lee County Florida. Back in January of 2011 normal sales were only about 35% of all sales.  Short sales were actually more than traditional sales and foreclosures were about 20%.  Fast forward in time and you can see the trend. Normal sales started picking up steam in November of 2011.

Speaking of old stories and old videos, we have them up on our website.  Simply go to our Lee County Florida real estate website  and click on the video tab or our video playlist on the right side of the screen.  It’s fun to go back in time and see what we were talking about years ago and how far this market has come.

Real estate is all about education.  The market is rarely static and is always changing.  The listings change daily and market trends develop over time.  The public has a keen interest in their property value if they are an owner and where values are headed if they’re considering buying.  Just like the stock market, most people don’t have time to study each property or each stock, so they rely on headlines and news articles for general information until it’s time to get serious.

Our website has a tool to find out what your home is worth online.  Owners really love this free tool because it gives you a value today and updates you each month as the market changes.

Buyers love the website because they can search for homes and condos online without a bunch of agents calling them like on the national websites.  Sellers can also search for homes as they may want to see what’s available before they decide to sell.

2 weeks ago we told you about our Buyer Advantage Program.  We informed buyers of listings we were working on as listings go fast in today’s market.  We listed one of the properties and it sold in 1 day on the market.  We have more coming to market in the next few weeks.  If you’d like to get advanced notice, be sure to signup at Topagent.com in the Buying section.

We’re looking forward to a fabulous summer season.  You can always call us at 239-489-4042 if you’d like to speak with us.  We hope you enjoy the Free online tools we provide but remember there’s no substitute to talking with an experienced Ellis Team professional.

Good luck and Happy House Hunting!

SW Florida Real Estate Market Update

Visit our Google+ Business Page

Feel free to view our Virtual Tours

New Riverfront Rental at Oasis

Check out our Buyer Advantage Program

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Other Resources

Fun Things to do in SW Florida

Fishing and Boating in SW Florida

Lee County Florida Sports

SW Florida Entertainment

 

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042