May 2009 Ellis Team SW Florida Real Estate Current Market Index
The Ellis Team May 2009 SW Florida Real Estate Current Market Index shows relative stability. We switched the way we compile the data for this report, and it looks like the index held steady at 3.99, up slightly from 3.72 the month prior. All signs point to big sales ini April once they are released. We are tracking over 1,400 single family home sales in April, which far exceeds sales from last year.
In the coming days we will be releasing a Fort Myers-Cape Coral inventory chart which will show available inventory in just those areas, as well as pending sales activity. Lee County overall single family inventory stands at 12,579 which is up slightly from last months number of 12,356. Again, we switched data compilation sources and we now feel we’ll pick up a few extra listings by making the change, so it’s possible inventory didn’t really increase at all.
First time home buyers hoping to take advantage of the $8,000 tax credit are competing with investors trying to scoop up bank foreclosure bargains. Pending sales currently are running high, and might even be higher if we weren’t running out of foreclosure inventory. The lack of foreclosure inventory may lead to reduced sales going forward if foreclosures do not pick back up again soon. Some think the banks will be taking possession of more foreclosures soon as they work through the process, but less are being filed each month.
That is the question WINK News asked. WINK interviewed Brett Ellis and wanted to know how bank foreclosures were affecting the local SW FLorida real estate market. See WINK News report Local Housing Rebound? Bank foreclosures are drying up, and first time home buyers are competing with investors for these good deals. Inventory levels have continued to fall as home sales break all-time records. Because builders are not building right now, it will be interesting to see what happens if we don’t have a continued pipeline of affordable bank foreclosures to sustain buyers insatiable appetite for housing in SW Florida.
Brett also did a newspaper article with the Fort Myers News Press about how Lee County’s Meltdown Turns Golden for home buyers. Agents are amazed at how far prices have dropped, and perhaps they have over corrected. Listing inventory has fallen sharply in hard hit areas like Cape Coral, and Lehigh Acres is seeing a resurgence in home buying activity as buyers jump from Cape Coral in search of affordable houing in SW Florida.
Here are a few ways to search for bank foreclosures on our website:
Brett Ellis appeared recently on NBC’s Today Show on April 19, 2009. The report focused on housing deals in SW Florida and if now is the time to buy. One Realtor talks about the buying frenzy and the bank foreclosure deals to be had presently in SW Florida, but time is running out.
Additionally, the report focuses on the $8,000 tax credit, and buyers competing with investors for the bargain buys. Brett Ellis of the Ellis Team at RE/MAX Realty Group in Fort Myers stands in front of a home that is priced 1/5 the price of what it sold for just a few short years ago. Because of the tremendous buys, many buyers are bidding on properties. One buyer in the report bid on 14 properties until they were successful. The best bargain buys go quickly and many receive multiple offers, so you have to act quickly and have your ducks in a row. This means getting pre-approved for a mortgage through the correct lender, and using all the forms the seller requires and filling them out correctly.
There are tips to being the successful bidder, and experienced agents in the foreclosure business know what these tips are. Listen to the advice you receive from your agent, and if they tell you there are multiple offers on the property, believe it. It’s far better to get your 1st or 2nd choice then your 15th.
Contact the Ellis Team at RE/MAX Realty Group in Fort Myers for bank foreclosure buys in Cape Coral, Fort Myers, Lehigh Acres, and all of SW Florida.
Due to a shortage of U.S. manufactured drywall between 2004 and 2007, many builders were forced to buy drywall imported from China. The “Chinese drywall” has been linked to seeping sulfide gases that can corrode electrical wiring and components of air-conditioning and other household appliances. Some residents have been forced to move from their homes, and a few builders in Florida have begun gutting homes and replacing the drywall.
We have found some helpful information put out by the Florida Department of Health that may be help to answer some questions the public may have regarding if Chinese drywall is present in your home and what the health implications may be, as well as where to turn for help.
Unfortunately, there is no easy answer to this question. The most definitive method to date is finding a “made in China” marking on the back of sheet of drywall. DOH observed some drywall in several homes with no discernable markings. The origin of the unmarked drywall is unknown. DOH observed that homes with marked Chinese drywall also contained drywall marked as made in USA. Remember that we do not know how many sheets of the suspect drywall can cause problems. DOH did observe at least one home with marked Chinese drywall with none of the associated corrosion or odor problems. The bottom line is we think the question should really be “Does my house have corrosion problems?”
We will continue to provide additional information and resources as they become available. You can also listen to The Future of Real Estate each week as we bring you important information and news regarding real estate in SW Florida.
Industry experts Brett Ellis of the Ellis Team at RE/MAX Realty Group in Fort Myers Florida and Adrian Jacobs from Countrywide Home Loans in Fort Myers Florida outlines successful strategies in identifying short sale candidates, structuring your offer so the bank can accept it, and compiling the short sale package the way the banks want to see it. We also go into qualifying the seller, getting pre-qualified, and talk about lien searches and why they’re important.
Brett is a CDPE (Certified Distressed Property Expert) and has helped dozens of homeowners sale their properties in SW Florida. Working with a CDPE is a good idea and Brett encourages agents to obtain the accredidation. The more agents with this knowledge the more it helps the entire market. Both the listing and selling agent must have detailed knowledge about the process to make a short sale work. Making mistakes can cost the buyer several months, kill the deal, and the buyer has lost out on many other properties they could have purchased during the time they waited for the failed short sale. The seller faces likely foreclosure in a failed short sale, so the results are tragic on both buyers and sellers. Working with a CDPE helps improve the success rate by only focusing on qualified short sale opportunities and putting together a package that works for the banks.
Watch Tips on Short Sales. We also talk about buying bank foreclosures in SW Florida, Fort Myers, and Cape Coral as well.
SW Florida Real Estate Current Market Index April 2009
The Ellis Team at RE/MAX Realty Group released the April 2009 SW Florida Real Estate Current market Index which accurately predicts the local real estate market’s future direction, and once again the index improved. Fort Myers and Cape Coral recorded their lowest numbers since October 2005.In October 2005 the number stood at 3.44, and the index today stands at 3.72The lowest on record was July 2005 when the index stood at 1.07.The lower the number the better the market is for sellers and the higher the number the better the market is for buyers.The lower numbers are a result of higher transaction volume combined with declining inventory levels.
Lee County Florida index numbers for single family homes stands at 4.26, down from 5.07 in March.We’re seeing tremendous sales numbers for a variety of reasons. Not only do we have home affordability back in the market, but also the perception that we’ve seen drastic price cuts and the end in price declines may be near.Buyers do not want to miss out on the possible buying opportunity of a lifetime.Along with attractive pricing is record low interest rates, declining property taxes, and a decent but dwindling supply of homes to choose from.Lastly, the government passed a 1st time home buyer tax credit that gives buyers up to $8,000 tax credit to buy a home and if the home is kept for three years does not have to be repaid to the government.
Rarely do all the stars align for a perfect buying opportunity, but that’s just exactly what we have right now.The SW Florida real estate market has been heating up for some time, and in 2009 we’re seeing some dramatic results on the transaction volume side.Pricing is a lagging indicator and will follow once inventory is depleted further.We’ve already seen a 2.74% rise in prices in March over February 2009 numbers.Total single family home inventory in Lee County fell to 12,356 in April, down from 13,019 in March.
Cape Coral is again leading the way as the CMI index numbers for the Cape stands at 2.88.Fort Myers CMI numbers stand at 7.26 Inventory is dropping in both Fort Myers and Cape Coral, and pending sales are increasing.We believe when official sales numbers are released later this month we’ll see record sales for March, and sales activity going forward for April and May looks to be very strong.Current home prices are so far below replacement cost that builders are not even attempting to build yet.Once this inventory is depleted prices may begin to rise on a gradual path towards replacement cost, and when that occurs builders will again start building.We believe we are still some time off from that point; however we are amazed at how quickly homes are selling and how the SW Florida real estate market has heated up.Once the overall economy improves and businesses start hiring again in force, we believe prices could rise at a quicker pace and approach replacement prices.Until then, home sales will be great as long as the price is attractive, and we may enter No-Man’s land once we deplete existing inventory and the market absorbs what to do once the bargains are all gone.The economy and employment will eventually drive home sale prices, and home sales may help drive the economy back to health.
Stay tuned as the market is definitely heating up, and the Current market Index points to more good times ahead.
This week’s SW Florida real estate video update presented by The Ellis Team at RE/MAX Realty Group focuses on SE Fort Myers Florida. SE Fort Myers consists of zip codes 33912, 33913, 33966, and 33967 and covers Gateway, Fort Myers South around the Daniel’s Parkway Corridor over to US 41 down tthrough San Carlos Park.
Follow The Ellis Team on Twitter, so you can keep up to date on Fort Myers and Cape Coral real estate news and information, including information on the entire Southwest Florida real estate market. Our latest post on Twitter includes our Cape Coral real estate video update. Check our our Ellis team SW Florida Top Agents page on Twitter.
The Ellis Team at RE/MAX Realty Group in Fort Myers released the Annual SW Florida State of the Market Report in February. Local TV stations covered the release and here are some of the stories.
Download the State of the Market Report In this report we detail the Fort Myers real estate market, along with updates on the Cape Coral real estate market, Lehigh Acres home sales, Bonita Springs and Estero real estate updates, Sanibel and Captiva, Fort Myers Beach, Pine Island, and all of Lee County Florida.
We also detailed bank foreclosure information, and short sales statistics, distressed property information, and we talked about the CDPE (Certified Distressed Property Expert) designation to help owners keep their homes or sell their homes to protect their credit
We’ll be uploading more video in the coming days, so stay tuned.
Fort Myers and Cape Coral Real Estate Current Market Index
The January 2009 Ellis Team SW Florida real estate current market index covering Fort Myers real estate, Cape Coral real estate, and Estero leveled off this past month and currently stands at 6.74, up slightly from 6.65 the previous month. The index still shows signs of strong buying activity and overall market absorbtion.
Single family inventory for Lee County dropped below 14,000 this month to 13,740, while pendings remained relatively the same. The Current Market Index for the entore county actually fell from 7.99 to 7.89, but we are reporting numbers in the graph for just Fort Myers and Cape Coral real estate single family homes. Single family home inventory has been falling nicely as the market has been absorbing homes to the market all throughout 2008. Other agents are just now starting to pick up on this trend and report it, instead of the gloom and doom some have been reporting all year.
Next month we’ll be releasing our annual SW Florida State of the Market Report, which will be much more comprehensive this year. We’ve been hard at work analysing the data and identifying emerging trends. As usual, there will be some surprises. We’ve spent extra time eliminating duplicate entries in various MLS systems, so we feel quite confident this new set of numbers will be the Most realistic picture of what is actually happening in SW Florida real estate.
We’ll be drilling down much deeper so you can see what’s been happening in various neighborhoods. Stay tuned for official announcement for the release date for this very special report.
