Tag Archives: Fort Myers real estate

2009 SW Florida Real Estate State of the Market Report Released Yesterday

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Yesterday Brett Ellis of the Ellis TEAM at RE/MAX delivered the SW Florida State of the Market Report to the public.  The report is 77 pages and includes data on Lee County Florida home sales, including Cape Coral real estate sales numbers, Fort Myers real estate sales numbers and pricing trends, Bonita Spring real estate updates, Estero, Lehigh Acres, Fort Myers Beach, Sanibel and Captiva, Pine Island, and all of Lee Couny.

The report shows single family home inventory in Lee County Florida declined 15.61%, and months supply of inventory in Lee County declined 42.66% due to decreasing inventory and increasing sales.

Cape Coral is the hot spot for sales activity, with 4,633 sales and less than a 1 yr supply of inventory.  Lee County overall inventory level stands at 17.53 months, down from 30.57 last year.  Median single family home sale prices were down 37.89%.  Two areas actually saw a rise in mean average sales prices in 2008; Bonita Spring-Estero and Central Fort Myers.

The report provides insightful data at the county level, and at the neighborhood level, as well as foreclosure data.  The sub-markets we analyzed were Cape Coral North, Cape Coral Central, Cape Coral South, North Fort Myers, Central Fort Myers, SE Fort Myers, SW Fort Myers, Lehigh Acres, East Fort Myers including Alva, Bonita-Estero, Pine Island, Fort Myers Beach, and Sanibel and Captiva Islands.  We provide data such as monthly pricing graphs for 2008, monthly sales charts, List price to sales price ratios, months supply of inventory levels, total list and sales volume,Minimum listing, maximum listing, lowest sold listing, highest sold listing, median price, average price, and total sales.

It is our most detailed report yet.  We scrutinized the data from multiple MLS boards and eliminated duplicates.  This one of a kind database is more thorough and accurate than services such as MLS Alliance because some boards pull their data out of the Alliance.  Additionally, we scrubbed the data for known errors.  We allowed duplicates when there were actually multiple sales on the same property for the same year.

73% of foreclosures in SW Florida were non-homestaeded property, meaning investors walked from their investments when the value fell below what they owed.  Most investors were planning to flip for a profit when they purchased.  SW Florida bank foreclosures were absorbed and sold, and inventory fell as the market heated up, even if prices have not.

We’ll add video of news stories from the report in coming days.

Fort Myers Real Estate and Cape Coral Real Estate sales Numbers Released for November 2008

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November 2008 real estate numbers for Fort Myers and Cape Coral were released recently and single family home sales in Cape Coral and Fort Myers were up 64% over last year, a trend we’ve seen repeated throughout 2008.  Median sales prices for Fort Myers and Cape Coral real estate fell 53% from last year, down from $228,100 to $106,100.  Statewide home sales were up only 4%, so again SW Florida real estate has been leading the state in home sales.

Condo sales in Fort Myers and Cape Coral were down 21% from last year, while statewide they were only down 8%.  Statewide sales prices for condo were down 30% and condos in Cape Coral and Fort Myers were only down 20%, perhaps a reason why our sales were down.  The better the pricing the more sales we are seeing in any particular market segment.

December 2008 Ellis Team SW Florida Real Estate Current Market Index

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Fort Myers Cape Coral Real Estate Current Market Index
Fort Myers Cape Coral Real Estate Current Market Index

 

The December 2008 Ellis Team SW Florida Real Estate Current Market Index again showed improvement from last month’s index.  The Current Market Index now stands at 6.65, down from 6.89 in November.  The lower the number the better the market is for sellers.  Transactions in the Fort Myers and Cape Coral real estate markets were up again significantly over last year as our index predicted it would be.  Single family home sales in Fort Myers and Cape Coral were up 78% over last year’s numbers in October.

Single family inventory is down 12.42% from last year’s numbers.  In December 2007 we had over 16,000 single family homes for sale in Lee County and now that number is down to slightly over 14,000.  With sales up around 80% over last year’s numbers and inventory declining, many would say that 2008 has been a year of recovery for the SW Florida real estate market, but we cannot do so until prices stabilize.  Median prices have continued to head lower all year and this is why Fort Myers and Cape Coral has bucked the state and national trends, because value and affordability are back in the market.

In fact, prices are so far below replacement costs that first time home buyers and investors alike are scooping these properties up as fast as they come on the market.  While more foreclosures are scheduled to hit the market in 2009, many are condominiums and vacant land.  We are doing a study right now along with the SW Florida Real Estate Investment Association to determine how many Lis Pen dens filings are actual home foreclosures.  Keep in mind, a property may have multiple Lis Pen dens filings which may skew the numbers, so we may not see as many foreclosures in 2009 as some are quoting.

Local mortgage companies are reporting fixed rates in the 4.5% range today with 1 point.  Loan amounts are also on the rise, which could signal an up tick in future home buying in higher price ranges.  We don’t look for drastic upward changes to median home prices, however we do like to look at mortgage applications to get a reading on potential future purchasing activity.

We see regular negative articles and news stories about the real estate market, but the numbers tell another side of the story.  Sellers do not like today’s prices, and nobody knows where tomorrow’s prices will be for sure, however we can report there is a market at the right price and this market has been posting large gains all year.  We think many buyers and investors have figured out there are tremendous buying opportunities available now and they’re not listening to the Downers in the market.

If you really want to know how a market is doing, follow the money.  Buyers are back in this market because the prices are Right.  It’s a lot like the BCS polls.  Don’t follow what the polls say; follow the Vegas odds, because that’s where the money is.  It’s amazing how much better the money does in picking games than the experts do.  The numbers always tell a story.  The real wisdom is deciding not which expert to listen to, but which numbers you should follow.  In the SW Florida real estate market you can look at falling median prices, or increased sales.  Both tell a story, and we’ll leave it to the market to decide what the numbers mean.  We just thought we’d present another side you may not be seeing in the media or hearing from other experts and let you decide.

SW Florida Real Estate October Home Sales Shows Continued Improvement

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The Fort Myers and Cape Coral real estate markets again posted significant gains over last years numbers, bucking national trends and leading the state of Florida for the entire year.  Single family home sales in Cape Coral and Fort Myers were up 78% in October.  Statewide home sales were 15% and median prices were down 24%.  Median prices in Fort Myers and Cape Coral were down 42%, and this is the reason buyers are back in the SW Florida real estate market.

I speak with top agents from all over the country and many times they tell me sales are way down, but prices have held steady.  The reality is buyers no longer want or are able to afford the prices, so while sellers may not be selling for less, buyers aren’t buying, and that’s why their sales are way down.  It’s true in just about every market where sales decline.  Fort Myers and Cape Coral has led the state in reacting, perhaps because we had to with such a large inventory of brand new homes that were on the market, and this is the major reason Fort Myers and Cape Coral is leading the state back out of this.  Our prices are compelling, not just attractive.

In the first half of 2008 we noticed a lot of first time home buyers entering the market, which was a good sign going forward because it signaled affordability was back in the market, and buyers again had confidence going forward that 2008 was a good time to buy.  In the second half of 2008 we noticed a tremendous influx of long-term investors coming back into the market.  This is another good sign as investors have realized this market is priced so far below replacement cost that when this whole thing settles down they’ll be buying at tremendous savings.  Fort Myers and Cape Coral truly is having a 1/2 off sale and it won’t last forever.

Investors know that you make money on the Buy, not the Sell.  Interest rates look like they’re falling again, and season is just about here, so 2009 could get a little interesting.  Foreclosures have paused temporarily as lenders have suspended many filings.  Inventory has not increased all year in the MLS even with all the foreclosures we’ve had.  This is a very good sign as the market is absorbing all new inventory, because it is priced to sell.  The banks losses have become new homeowners and investors gains.

Not surprisingly Cape Coral and Fort Myers leads the states in condo sales gains as well.  Condo sales in Fort Myers and Cape Coral were up 48% while the median price was down 5%.  Statewide condo sales were only up 5% and prices were down 23% from last year.  Areas like Tallahassee were down 95%, Lakeland Winter Haven 64%, Ocala 75%, and Sarasota-Bradenton 47%.  As you can see, Fort Myers real estate and Cape Coral real estate is doing very well and leading the state.

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SW Florida Real Estate Home Sales Statistics Released for September 2008

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SW Florida Real Estate Home Sales Statistics

Fort Myers and Cape Coral saw a 128% increase in home sales over last year as reported by the Florida Associatiopn of Realtors.  Statewide sales were up 24%, but locally they were up much greater becuase affrodability is back in the SW Florida real estate market what is not priced into all Florida markets. Median sale price is Fort Myers and Cape Coral dropped to $141,400 from $231,600 last year.

Condo sales in Cape Coral and Fort Myers saw a 50% rise in condo sales over last year, while the median price dropped 17% to $185,000.

Home sale prices declined for the 4th straight month in Fort Myers and Cape Coral real estate.  See our month over month prices graph. You can also view a monthly price summary by year for Fort Myers and Cape Coral real estate.  We’ve also included a home sales by month for the past several years for Fort Myers and Cape Coral.

We’ve created some videos for you to learn about the SW Florida real estate market better.  Some of these videos were newscasts done on TV, while others were simply us on a video camera talking about the market in our office.  We’ll be adding more videos like the newscast we did for NBC Nightly News with Brian Williams a few weeks ago, so stay tuned.

Thank you for reading our SW Florida Real Estate Home Sales Statistics update this week.  We look forward to bringing you further SW Florida Real Estate Home Sales Statistics.

SW Florida Real Estate Buying Strategy

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People always ask each year what Season will bring in terms of home buying activity in SW Florida.  The past few years Season has been slow compared to historical standards, with good reason.  The past few years buyers have been fearful prices could slip lower, and the economy seemed to be showing signs of slowing down and consumer confidence was eroding.  Some have even argued we’ve been in recession or at least heading toward recession.

So why would 2009 Season be any different, as the economy doesn’t look any better than it has the past several years?  There are many reasons this year could be different.

1.  Prices are down.  Not just a little down, but way down.  They’re down so far that builders wouldn’t dare build right now because sales prices are much lower than replacement cost.  This phenomenon can only last so long, and once inventory levels start coming down, prices will go back up.  We’ve witnessed a large number of foreclosures work their way through the system and come to the market.  As soon as they hit the market, they’re sold because they’re affordable.  Affordability is back in this market, and that is new.

2. Retirees aren’t getting younger.  A Retiree has been able to sit on the sidelines and wait for prices to come down, and they have come down significantly.  The demographics for Florida are still fantastic as Baby Boomers haven’t even peaked yet.  Retirees have wisely waited, but they can’t wait forever.  A retiree only has so many good years and opportunities left, and if they wait too long they’ll miss out on living their dream in Sunny SW Florida forever, not because the market won’t be good, but because they only have so many good years left.  Retirees are so much healthier when they move to the sunshine because their outlook improves, and they can be physically active 365 days per year due to the weather.  They also enjoy conversations with other people in the neighborhood close to their same age and with similar interests.  This isn’t always the case in rural areas up North with bad weather.

3. It’s always wise to Buy when everyone else is selling and Sell when everyone else is buying.  Look back to 2005 and you’ll recognize many were buying.  Those that sold did very well.  Now that prices are abnormally low and below replacement costs, those that buy now when banks and sellers are selling at bargain prices will fare much better than those that purchased only 3 short years ago.

4. Interest Rates have remained low.  Because of the global crisis, the World Bank has coordinated interest rates cuts among many nations, so the US was free to cut again without fear of the dollar being de-valued if we were the only one’s cutting rates.

5.  Inflation may come back long term.  If so, buying assets today at low prices and financing them with low rates allows people to pay back a rapidly appreciating asset due to inflation at today’s low prices and with cheap money.  It’s the same reason people have bought gold, only a house is something you can live in, Vs.  gold or a stock.

6. When real estate was down, people flocked to stocks.  People are running from stocks right now, and because prices are so low in real estate, you could see a charge back into real estate in the next year or so.

The bottom line is nobody knows for sure the future.  All we do know is that our streets are getting busier with our friends from the North visiting, and people are watching to see if this is the year many of these snowbirds start opening up their wallets now that Florida is on sale.  Everyone loves a good sale, and we’re having a blowout sale as we speak.  The next few months could get interesting.

Click here to Search the entire MLS for your bargain property today.  Cape Coral and Lehigh Acres has had a number of bank foreclosures.  Fort Myers has had a few, but not near as many, but there are bargains galore.  Sales in Lee County Flroida have been up tremendously versus other areas of the state because our prices in SW Florida real estate have come down much faster than other areas.  The areas throughout the country seeing the greatest sales gains are those where the sellers have reacted first and brought value back into the market.  While it’s been painful, SW Florida home sellers have reacted.

 

October Ellis Team SW Florida Real Estate Current Market Index Shows Improvement

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The October 2008 Ellis Team Current Market Index shows slight continued improvement in the SW Florida real estate housing market.  The index went down to 7.27, down from 7.75 the month prior.  The lower the number the better it is for sellers, and the higher the number the better for buyers.

Ellis Team SW Florida Real Estate Current Market Index Fort Myers Real Estate

Cape Coral real estate led the way with a market index of only 5.93, down from 6.38 in September.  Fort Myers real estate stands at 13.13, down from 13.76 in September.  There is currently 15,570 single family home listings in Lee County, up from 15,530 in September, so listing inventory is remaining relatively steady.  Pending sales in SW Florida rose to 1700, which is a very good sign going forward.

It’s important to keep in mind that many of these sales are a result of foreclosures hitting the market at affordable prices.  These listings are replacing short sales that were not sellable, and once they become sellable and affordable, the market gobbles them up.

It is still a tough environment for agents though as marketing costs remain high, gas prices remain high, and sale prices are half what they used to be.  Add in financing troubles and many times the agent has to sell the home more than once to get that one sale.  So bottom line is margins are tight, workload has doubled which adds administrative costs, and prices are down.  This is perhaps why there is a flight to quality by home sellers to top agents capable of selling in a tough market.  The same is true with mortgage professionals and title professionals, as only the strongest have survived in this market.

 We are noticing seasonal vistirs again, and may are inquiring about buying this year as prices are much more to their liking.  They’ve held off in past years waiting for the bargains, snd this year will be the year of bargains for our northern friends.

We beleive there may be pent-up demand from northern buyers as we are still receiving calls from our NBC Nightly News  with Brian Williams report we did last week showing affordability is back in the market, as well as The NBC Today Show we did a few weeks ago.  We also did a piece this past week for ABC-7 News on Sales up and Home Prices Down.

Busy Week in the News For The Ellis Team at RE/MAX Realty Group in Fort Myers Florida

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Brett Ellis on NBC Nightly News with Brian Williams SW FLorida real estate affordability

 

Busy Week in the News For The Ellis Team at RE/MAX Realty Group in Fort Myers Florida

NBC News featured SW Florida’s real estate market and the Ellis Team at RE/MAX in a story which concentrated on housing affordability.  Lower prices are attracting buyers back into the market, and home sales statistics bear this out.  Home sales have been up dramatically over last year each month this year.  NBC News decided to come to the epicenter of where the housing crisis turned bad, and noticed there may be a turn around in the works, which could be a positive sign for other parts of the country in the coming years. Click here to watch The Flip Side of Foreclosures: Affordable Homes  MSNBC also has a Blog article up about this story Mortgages Are Out There . And So Are Bargains which also features the Ellis Team in the Blog.

NBC Today Show from Fort Myers Florida featuring Brett Ellis of RE/MAX Realty Group

The NBC Today Show visited Fort Myers on September 23 and reported on foreclosures in the SW Florida real estate market, particularly on Lehigh Acres and Cape Coral Florida.  NBC came to The Ellis Team for answers.  Click here to watch Florida’s Foreclosure Hot Zone.

 

Last night Brett Ellis was also on the ABC News about home sales increasing while prices have been declining.  Click here to watch this story.

 

This past week Brett Ellis was featured on WINK News regarding Governor Sarah Palin’s speech in Fort Myers, and Mike Ellis was seen live on WINK News as a local business leader and his reaction to the presidential debate.  We’ll try to get video uploaded on these two stories later on.

The O’Reilly Factor called and asked Brett Ellis to be on The O’Reilly Factor this past Tuesday.  Unfortunately the taping time with Bill O’Reilly conflicted with Brett’s son’s baseball game that night, so we had to pass on that interview.

Florida Statewide Home Sales Numbers Released Including Cape Coral and Fort Myers Real Estate

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The Florida Association of Realtors released official home and condo sales numbers for the month of August.  Median sale prices were down 41% for single family homes in the Fort Myers Cape Coral area from last year.  See SW Florida Real Estate Sale Prices 2005-2008 and were down 5.16% from July’s numbers.  See Month Over Month % Price Change Chart Fort Myers Cape Coral Florida.

Median home sale prices in Cape Coral and Fort Myers have fallen 30.84% in three short months, from a median price of $212,400 in May to a median price of $146,900 in August.  Home sales were up 31% over last year with 684 sales this year Vs. 520 last year, but home sales were down 11% from July 2008 numbers.  Financing has become increasingly difficult for many homebuyers.  Even though affordability is back in the market, many good credit homebuyers cannot qualify due to changing underwriting standards and amidst a capital crunch on Wall Street.

It’s also important to note that foreclosures are driving the median home sales price down more so in areas with higher concentration of foreclosures, like Lehigh Acres and Cape Coral.  Fort Myers has not see the concentrated number of foreclosures like the previous two areas, and home prices have not suffered as much in many areas in Fort Myers because of that.

Anywhere we saw rampant speculation building; we saw rampant cases of investors/speculators walking away from their investment.  Most of these homes were built in 2005 and 2006 with no end user in mind.  The speculators were convinced they’d buy as many houses as the banks would lend money on and flip them to a buyer or another speculator for large profits.  This strategy worked until we ran out of bigger fools, and the whole strategy came crashing down, taking lenders with them, as well as legitimate end users who bought in that time frame.

Now banks and Wall Street are in trouble and asking the taxpayer for a bailout.  Most people are strongly against this idea, and yet the government is probably going to have to get involved in some capacity whether we like it or not to protect a domino effect of financial institutions from crumbling under their past poor decisions.

It’s not right, but it is where we’re at today, and unfortunately we may all have to pay for the sins of others.

 

Fort Myers Florida Real Estate Video Update

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Who knew people actually wanted to tune in and watch a short video each week on what’s happening in the SW Florida real estate market?  The Fort Myers and Cape Coral market is changing rapidly, so I guess everyone is just trying to get a handle on what’s really happening and the trends we’re seeing on the streets.

Watch out 9-15-08 Fort Myers Florida Real Estate Update here presented by The Ellis Team at RE/MAX Realty Group in Fort Myers Florida.  This started out as a test a few weeks ago and people actually called and complained we didn’t post one last week.  Last week we were really busy writing new contracts, listing new properties, and keeping existing deals together.  FInancing has become increasingingly difficult to obtain, and lenders are updating their files just before closing and asking more questions, which is causing delays.  Add to that a shaky capital market, and you’ve got chaos in a moments notice, so sometimes we’re busy fighting fires.  Keep in mind helping consumers buy and sell real estate is our primary business, and even though we enjoy educating consumers and the media as to what’s really happening in real time, sometimes we have to fight the fires first so to speak.

Hope you enjoy this week’s video.  It is low budget (Free) so hopefully you’ll get something out of the content and not the production quality.