Wednesday, August 30, 2017

Let's Talk Hot Off The Press...

July Home Sales Hit the Sweet Spot...

Naples, Fla. (August 25, 2017) – REALTORS® in Naples sold more existing homes in July (682) than they did in January (603) or February (613), a statistical reality that busts an old myth that home sales stall in the summer. In fact, overall closed sales in the market’s sweet spot (homes priced between $300,000 and $500,000) increased 32 percent in July. Broker analysts reviewing the July 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County
(excluding Marco Island), said a 9 percent increase in closed sales during July was very good, but the continued reduction of inventory, especially in the single-family home market, is cause for concern as it limits choices for buyers.

One segment of the market that brokers are watching closely is the $300,000 and below single-family home market, which saw pending sales decrease 24 percent, closed sales decrease 19 percent, and inventory decrease 2 percent in July. In fact, the entire single-family home market is getting stretched thin as inventory tightens. In July, inventory rose just 3 percent overall, but single family home inventory decreased 1 percent.

Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out, “The July report showed the median closed price for homes under $300,000 was the highest since 2008. However, the median closed price for homes over $300,000 was the lowest reported in 9 years!” 

According to the report, overall median closed prices in July increased 6 percent to $319,000 from $300,000 in July 2016. For homes in the $300,000 and below price category, the median closed price increased only 3 percent to $225,000 from $219,000 in July 2016. And for homes above $300,000, the median closed price decreased 7 percent to $485,000 from $524,000 in July 2016. 

Many broker analysts reviewing the July report agreed that an increase in conventional sales (homes purchased with financing) is a good sign that first-time homebuyers are gaining a foothold in the market. As such, the July Market Report showed total closed sales were split almost equally between cash sales and conventional sales.

Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, said she is optimistic that the third quarter closed sales will finish ahead of the second quarter, and pointed to activity in the $500,000 to $1 million price category, which saw the overall pending sales increase 44 percent in July from July 2016. “The median
closed price went down 16 percent for condos in this $500,000 to $1 million price category. 
I believe this is a reflection of smart pricing strategies finally taking hold.”

For months, broker analysts and NABOR® have warned against setting unrealistic pricing, a strategy that Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty, said can “hurt a homebuyer because a home is often overlooked if it’s overpriced.”

High prices are a strategy that can work in an accelerating market, but it’s risky. A home might sit for months without an offer and sellers typically end up marking the price down, perhaps lower than it should have sold for in the first place. A licensed REALTOR® uses real-time MLS data that can help a seller hit the sweet spot when setting the listing price: a price that’s high enough to reflect the home’s value, but attractive enough to gain
buyer attention and get it sold quickly.

Another segment that brokers are watching closely is the number of days on the market it takes for a property to sell, which is on the rise and hit 105 days in July. One reason for this could be cosmetic. According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, “Many homebuyers are looking for a coastal, contemporary look, not the Mediterranean or Tuscan look that dominates much of the
existing home market and appears dated. Sellers must either consider making renovations to meet the light, coastal look buyers want or reducing the home’s price in order to stay competitive with the new construction product that reflects this new coastal, contemporary style.”

The NABOR® July 2017 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® July 2017 sales statistics are presented in chart format, including these overall (singlefamily
and condominium) findings:

Please contact me by e-mail for the Full Report at...

Wednesday, August 2, 2017

Let's Talk...

Study: Best U.S. cities to flip homes

NEW YORK – Aug. 1, 2017 – More than 126,000 U.S. homes were flipped last year – the 
highest rate since 2007, according to a study by WalletHub. The average gross profit on 
a single home flip? Nearly $63,000.
Overall, Florida metro areas ranked in the top 25 percent for home flipping, with only cities 
in South Florida ranked below 50 percent. Miami ranked lowest out of Florida metros for home 
flipping, but at No. 110 it still ranked better than about 25 percent of all U.S. metro areas.
WalletHub looked at three broad categories to create its "Best & Worst Places to Flip Houses" study:
  • Market Potential: ROI, purchase price, share of home flips, average days to flip and more
  • Renovation & Remodeling Costs: Average costs for kitchens, bathrooms, full homes and more
  • Quality of Life: Crime rates, schools, walkable park access, job growth and more
Tampa was the only Florida city to make the top 10, though Orlando followed closely behind at No. 16.
Florida ranking of top flipping metro areas out of 150 in U.S.
6. Tampa (Market potential 8; remodeling costs 19; quality of life: 66)
16. Orlando (Market potential 29; remodeling costs 23; quality of life: 70)
24. Pembroke Pines (Market potential 33; remodeling costs 63; quality of life: 25)
36. St. Petersburg (Market potential 6; remodeling costs 79; quality of life: 79)
51. Cape Coral (Market potential 98; remodeling costs 71; quality of life: 18)
55. Jacksonville (Market potential 14; remodeling costs 69; quality of life: 111)
58. Tallahassee (Market potential 42; remodeling costs 34; quality of life: 128)
69. Port St. Lucie (Market potential 83; remodeling costs 85; quality of life: 24)
84. Fort Lauderdale (Market potential 49; remodeling costs 58; quality of life: 134)
90. Hialeah (Market potential 24; remodeling costs 83; quality of life: 121)
110. Miami (Market potential 91; remodeling costs 87; quality of life: 116)
Florida cities also ranked in the top five in some of WalletHub's secondary reports. Orlando, 
for example, is third nationwide for the number of real estate agents per capita. Only Seattle 
and Atlanta have more.
Tampa (No. 2) and Orlando (No. 3) made the top five for the percentage of home flips. Only 
Memphis, Tenn., had more.
For a complete ranking of all 150 U.S. cities and more, visit WalletHub's website.
© 2017 Florida Realtors