Let's Talk Hot Off The Press...
For the NABOR October 2021 detailed report
e-mail me at...
Let's Talk! I Invite you to make Southwest Florida and Naples "Your Home Sweet Home" My expertise will be invaluable to you in your selection process whether you are Buying, Selling your home or Relocating to Southwest Florida... Let me introduce you to Southwest Florida Inside and Out...I am Michelle DeNomme, REALTOR, GRI with Berkshire Hathaway HomeServices Florida Realty. Let's Talk Real Estate Today!
Let's Talk... Hot Off The Press...
Naples Beaches Update
On November 1st, 2021, Collier County’s beach renourishment truck haul will begin. This year’s project will start with Naples Beach, spreading about 84,000 tons of sand from just south of Lowdermilk Park to just north of Naples Pier. Trucks will travel (click on the haul route map to enlarge) from Stewart Mine in Immokalee to 3rd Avenue North beach access point; on average about 200 trucks per day will make the trip. Trucks will make their way from the mine to I-75 and then exit at Golden Gate Parkway. From there, they will head west to US41, then south to Banyan Boulevard, and head west to Gulf Shore Boulevard. The trucks will then travel south to 3rd Avenue North and then unload on the beach. The outbound route is north on Gulf Shore Boulevard, to east on Mooring Line Drive, similar to the outbound route used last year. From Mooring Line Drive / US41, trucks will head south to Golden Gate Parkway and back to I-75. If the weather cooperates, the expected duration of hauling for the Naples Beach section is approximately three weeks with the anticipation to finish the hauling by Thanksgiving. Collier County and the City of Naples understand the concerns of the residents affected and always insist that safety is our absolute priority. Collier County will be working with the Naples Police Department to ensure adherence to speed limits and the haul route.
Let's Talk... Did You Know?
FOOD & THOUGHT 2 NAMES CULINARY TEAM FOR
NEW NORTH NAPLES ORGANIC RESTAURANT
The daily operation of the new Food & Thought 2 all-organic restaurant in North Naples will be led by General Manager Dan Kniola and Executive Sous Chef Raena Hobson. Targeted to open in November or December, the new restaurant will replace Founders Market & Bistro, which permanently closed this spring at 7941 Airport-Pulling Road. Kniola recently left his role as executive chef at Players Club & Spa in Lely Resort after working for Stock Development for 21 years. He previously was a chef for the Ritz-Carlton hotel company and the Grand Floridian resort at Walt Disney World. Hobson most recently was executive chef at Meridian Café in Naples for more than three years and previously was chef at Three60 Market in East Naples, Naples Grande Golf Club and The Club at Grandezza in Estero. The restaurant will have a large courtyard and an adjacent organic market. The venue is owned by Alfie Oakes of Naples-based Oakes Farms, Randy Johns of Phoenix Associates construction company and Anthony High of Marjon Specialty Foods.
Let's Talk... Did You Know!?
DELL GROUP BUYS
HAMILTON HARBOR YACHT CLUB IN NAPLES
Tech billionaire Michael S. Dell’s MSD Partners purchased the exclusive Hamilton Harbor Yacht Club in Naples for $16.6 million on Sept. 27. The seller was Collier Enterprises Inc., a Naples-based real estate investment and development firm that also sold its Old Collier Golf Club last week to Hoffmann Family of Companies for $45.3 million. Dell is the founder, chairman and CEO of Dell Technologies computer IT company and also the money behind The Athens Group’s redevelopment of the Naples Beach Hotel & Golf Club, which permanently closed in May and is proposed to be the future home of a Four Seasons resort. Dell’s MSD Partners and MSD Capital control a luxury portfolio that includes the Boca Raton Resort & Club purchased two years ago. MSD, which has offices in New York, California and West Palm Beach, is a private investment firm established in 1998 to exclusively manage the assets of Michael Dell and his family. Hamilton Harbor Yacht Club is tucked away in a protected harbor off Naples Bay on 28.38 acres at the southern tip of the city of Naples near Naples Botanical Garden, Rookery Bay National Estuarine Research Reserve, Gordon Pass and Keewaydin Island. Developed by Collier Enterprises in 2008, the private club has 25 floating wet slips and an advanced storage center that can hold as many as 325 boats. Its Old Florida-style clubhouse includes a full-service restaurant and bar. For the full story, click here.
By David Dorsey
South Seas Island Resort, which is on the northern tip of Captiva Island, has sold for $50.38 million.
The Timbers Company, Wheelock Street Capital and the Ronto Group have combined forces for the purchase of the iconic property that has been in place since 1946.
The new owners bought it from BRE/South Seas Resort Owner LLC, part of Blackstone, an investment management company.
Blackstone had purchased it in February 2006 for $23.4 million. The value has more than doubled in 15 years, from just before the Great Recession began and the real estate bubble burst.
South Seas sits on 2.5 miles of white-sand beaches. The 330-acre resort and wildlife preserve and estuary comprise about one-third of the northern tip of the 6-mile-long island.
“We see this as a phenomenal piece of real estate,” said Greg Spencer, CEO of Timbers Company, which is based in Winter Haven. He is a former Air Force logistics officer who served for five years. After the Air Force, he earned a master’s degree in real estate development at Colombia University in New York, then joined Timbers, working his way up to CEO.
“These things don’t come on the market that often,” Spencer said of South Seas. “We saw this as iconic, old-Florida charm. It’s a great opportunity to take it and enhance everything.”
The property has 434 units. They range from a hotel and guestrooms and suites, one- to three-bedroom condos, a private home, cottages to small home rentals.
All have balconies and lanais with views of the waterfront.
There are 20 swimming pools, a pool complex, beachfront golf, tennis, a full-service spa and restaurants.
Timbers develops luxury properties, including boutique resorts, hotels and private residence clubs.
Wheelock and Ronto have developed more than 700 condominium units on the west coast of Florida.
On Monday, efforts will begin to spruce up the property with painting and landscaping.
Over the next six months, the remaining workforce that has been living on the property will be relocated to off-island housing, Spencer said.
The workforce also projects to grow, he said, by about 20% from the current number of about 220 employees.
“There were 19 different groups that came in,” said South Seas general manager Shawn Farrell, who has been on the job for 11 years and will be retained. “Everybody had different ideas about what South Seas should be. When Greg came in, it just connected.”
Timbers owns 16 resorts around the world and also owns master-planned communities in the Virgin Islands, Italy, Hawaii and now Captiva.
Wheelock owns Chateau Elan Winery and Resort, just outside of Atlanta, and the 265-room, all-suite, AAA Four Diamond Hotel Contessa on the Riverwalk in San Antonio.
Ronto Group is a Naples-based real estate development company.
The new ownership group eventually will tear down and redevelop the existing workforce housing.
“There are 140 units, and a third of them have been condemned for 10 years at least,” Spencer said. “We’re providing six months of assistance for the transition to off-island housing.
“This is about the people. I wanted to come down here and meet the team. I want to make sure that this is one of the top resorts in the United States.”
Let's Talk... Did You Know?!?
Home values are surging seemingly everywhere — but, more than a year after the Covid-19 pandemic hit home, what are the most expensive ZIP codes in America?
The Business Journals analyzed more than 30,000 ZIP codes, using Zillow Group Inc. data, to find the 25 most-expensive ZIP codes by median home value. While the ranking strictly looks at median home value as of July 31, 2021, we've included how home values have changed for those ZIP codes in the past six months, one year and five years.
New York dominates the list, with the greatest number of ZIP codes from a single metropolitan area making the list. Unsurprisingly, several ZIP codes in California also made the ranking.
Notably, though, several New York ZIP codes containing some of the highest home values in the U.S. also have seen double-digit home-value losses in the past few years. A ZIP code that includes the West Village and Greenwich Village, for example, has seen double-digit declines since 2016. So has a ZIP code on the Upper East Side.
Outside of New York, though, several tony ZIP codes have seen moderate to big gains in home values in the past five years, including the Los Angeles metro area and the Bay Area.
Viewing the data with another lens, more modestly priced housing markets saw the biggest jumps in home values since 2016. Three in particular — 43222 and 43205, both in Columbus, Ohio, and 30314, which is in Atlanta — have seen a more than than 300% spike in home values since 2016.
Looking at the past year, Columbus also ranked among the areas with the fastest growth in home values, specifically ZIP code 43222, which saw a 65% increase in one year. Topping the list for one-year home-value growth is 18254, which is in Tresckow, Pennsylvania, in the eastern part of the state. That area has seen 66% home-value gains in the past year.
Two ZIP codes in Kansas City, Missouri — 64130 and 64128 — saw 62% and 60% growth, respectively, since summer 2020. 60426 (Harvey, Illinois) and 59928 (Polebridge, Montana) round out the ZIP codes that posted more than 60% growth in home values from July 2020 to July 2021.
The data underscores broader population and migration patterns we've observed for several years, even before the pandemic: The most expensive places to live in the U.S. are seeing flat, reduced or modest growth in home values, likely owing in part to people moving out of those places, while more affordable places are seeing the biggest gains as more people flock to those ZIP codes.
Want more real estate news? Sign up here for The National Observer: Real Estate Edition.
Miami’s housing market has been one of the hottest since the start of the pandemic, as buyers from around the country have descended on the city for added space and warm weather in the WFH world.
Strong demand for condos and single-family homes and dwindling supply pushed prices higher, and now Miami has overtaken Los Angeles as the second most expensive housing market in the U.S., according to the latest report from RealtyHop.
A household in Miami should expect to pay $2,653 a month toward homeownership costs, or roughly 81.6 percent of median income, according to the October index. The monthly report analyzes homeownership affordability across the country’s 100 most populous cities.
New York City is still the least affordable large metro in the nation. The average household in New York has to spend 82.2 percent of their income on homeownership costs.
But Miami overtook L.A., which ranked second in the September report. RealtyHop’s latest data show the city’s homeownership burden was 81.2 percent, slight dip from the month before.
In the new index, many of the country’s most expensive cities saw minor improvements in their affordability scores, with the white-hot real estate market showing recent signs of cooling amid high labor and materials costs. But to date the slight downturn in some of the nation’s highest priced markets only amounts to a blip.
“Generally speaking, we’re not in a buyer’s market yet,” said RealtyHop’s Shane Lee.
To come up with its rankings, RealtyHop compares a city’s median household income figures to median home listing prices, which the site calculates from its own database. It also factors in local property taxes.
In the October index, New York’s median home listing was $958,000, and its median household income was $64,000. Compared to a month earlier, the listing price actually dropped by $9,000.
In Miami, the median home listing was $549,000 and the household median income was $39,000. The Magic City also saw a tiny improvement in its affordability score.
Still, it narrowly overtook L.A., where the median home listing price was $915,000 — median income was $62,000 — compared to $930,000 the month before.
Newark, New Jersey, and Long Beach, California, rounded out the top five of most expensive housing markets in October.
San Francisco ranked sixth: The notoriously unaffordable tech hub registered a median home listing price of $1.3 million, the nation’s highest; but also a very high median household income of over $112,000.
Chicago ranked 41st on the list. A family with a household income of $58,000 would have to set aside 37.4 percent toward owning a home.
Other places like Hialeah, Florida (No. 7), Jersey City, New Jersey (No. 10) and Riverside, California (No. 19) have all become less affordable because of their proximity to larger, more expensive neighboring cities, Lee said.
“Covid in some ways pushed for that, too,” she said, “because remote working is now possible.”
RealtyHop’s October report marked the fourth straight month that New York took the top spot, while California accounted for 12 of the country’s 20 most expensive housing markets. The state’s newly emboldened governor, Gavin Newsom, recently signed controversial legislation aimed at improving density and curbing its dire affordable housing crisis. Despite the move, many analysts, including Lee, say it won’t have a meaningful impact.
“It definitely would be hard [to change], unless you see a lot of new construction or developments hitting the market, which always takes more than a year or two,” she said. “So I think for the foreseeable future Los Angeles, for instance, will still be unaffordable.”
What’s the most affordable housing market in the nation? That would be Wichita, Kansas, where a family making $52,620 can expect to set aside just 17 percent of their annual income toward owning a home.
September 28, 2021 12:15 PM
Evening on 5th will coincide with the event from 12pm to 9:30pm with music up and down 5th Avenue.
Any merchant that would like to participate in the activities that day please contact firstname.lastname@example.org
Let's Talk Hot Off The Press...
Naples resident David Hoffmann, through the Hoffmann Family of Companies, has acquired Old Collier Golf Club, the prestigious and renowned, 18-hole championship course tucked alongside the Cocohatchee River west of US 41 in North Naples on 400 acres.
Celebrating its 20th anniversary this year, the Old Collier Golf Club offers a highly personal experience and anticipates each of its member’s unique preferences. Membership in the club is by-invitation-only with the sole purpose of providing pure enjoyment of the game of golf for its members.
The 18-hole championship golf course was designed by noted golf course architect Tom Fazio. Set in a gently elevated park-like setting and favored by cooling breezes from the nearby Gulf of Mexico, the Club has no residential real estate whatsoever, making it truly a unique environment for all.
“We’re excited about the opportunity and trust from all the members to purchase the club. Many of the members are close friends and we look forward to working with all the existing staff and management.” David Hoffmann, Founder Hoffmann Family of Companies.
General Manager Steve Waugh and his team of directors and staff will all stay on after the transition from Collier Enterprises. The existing staff and members are all looking forward to joining the Hoffmann Family of Companies and all that comes with the Hoffmann “standard of excellence” and their commitment to Old Collier Golf Club.
As the largest private owner of commercial property in SWFL, the Hoffmann portfolio of 35 properties in Naples, majority on 5th Avenue South and the 3rd Street district, showcases the Hoffmann standard through the quality and pride in ownership that is put into all properties owned by the Hoffmanns. In addition to properties, the Hoffmann Family of Companies also operates 34 companies in FL and employees 2,300 people, a majority in Naples, and has over 240 total operations worldwide with 6,000 employees.
Let's Talk... Hot Off The Press...
Are rising housing prices actually a good thing?
Goods stay low as housing prices rise
Let’s take a look at some recent housing information and statistics and discuss what they mean precisely.
Housing prices have risen dramatically over the past 40 years. According to Works in Progress editor Sam Bowman:
“The average New York City metropolitan area house prices are up 706% since 1980 (or 376% more than US consumer prices, and 326% more than US wages). For San Francisco the rise is 932%.
London house prices are up over 2,100% in that period (or around 1,500% more than wages). Prices in Sydney, Australia, have risen by 1,450% (compared to hourly wage increases of 480%).
In Ireland, prices have risen by about 800% in that period. Rents show similar, but less extreme, trends, because they are not directly affected by interest rates.”
More expensive housing means people have less to spend on other things. Higher prices also impact behavior and everything, including:
When one of your most basic needs is significantly more expensive, it changes things. Interestingly, Bowman wrote:
“Almost every other household product has become better and less expensive since then.
Compared to 1975, the number of hours a median American worker would have to work to buy a television fell from 60 hours in 1975 to 7 hours in 2013; to buy a fridge-freezer, it fell from 65 hours in 1975 to 20 hours in 2013; to buy a manual exercise treadmill, from 18 hours in 1975 to 6 hours in 2013; and to buy a washer-dryer, from 67 to 30 hours.
Even cars are three times’ cheaper’ in terms of hours worked on an average hourly wage now than they were in 1964. And none of these estimates accounts for how much better most of these products are now than they were in 1975.”
The housing prices mentioned above range from about two times to four times the cost of building new homes of equivalent value and specs.
As we know, over the past year and a half, lumber and building material costs have skyrocketed, making homes even more expensive to build.
In addition, many cities and states have strict zoning and development restrictions on new construction that makes building more difficult (and often more expensive for the developer) or impossible altogether.
These restrictions may hinder the developer in the short term. New construction prices increase, which can also drive up the cost of existing homes in the area, making housing less affordable all-around. But, ultimately, builders pass on increased costs onto the buyer client, which is often the exact opposite intention of state and municipal regulatory bodies.
In short, consumer products are becoming more innovative and more widely available and less expensive, while the exact opposite is happening with housing — which is becoming more scarce and more costly.
But this isn’t necessarily a bad thing.
If housing prices came down as much as consumer products have over the years, a new home would cost about $4,000. That is just not realistic because, at the same time, we have fluctuating building material prices, increased fees for construction and even growing land costs.
If pricing and economic models for housing break, everything breaks (just like we saw in 2008). Housing prices must continue to increase in the long run. If they didn’t, banks would break, people would lose equity, and many people’s retirement would be gone.
I believe housing prices are just about their height, and we’ll see them course correct a bit in the next 12 to 18 months. But our systems are designed to increase over time. Real estate markets are cyclical.
We’ll have cycles where the market corrects itself, but again, over time, housing prices must rise. It’s simply important to understand and to be able to navigate what that inevitability means for consumers, the real estate industry and the economy as a whole.
As one of our most basic human needs, housing will always drive our actions and behaviors. It’s an exciting opportunity and a big responsibility that we can’t take lightly as real estate professionals. But I know we are up to the task.
Opinion by Adam Hergenrother is the founder and CEO of Adam Hergenrother Companies, the author of The Founder & The Force Multiplier, and the host of the podcast, Business Meets Spirituality. Learn more about Adam’s holistic approach to business here.
For more information contact me today and I will
send you the full report by e-mail at
Let's Talk Hot Off The Press...
Be on the Look out for the opening of...
CMX CINÉBISTRO DEBUTS ...
OCT. 1 AT COASTLAND CENTER MALL IN NAPLES :0)
Showtime is just three weeks away for CMX CinéBistro, an upscale dinner-and-a-movie destination launching Friday, Oct. 1, at Coastland Center mall in Naples.
The new 35,000-square-foot freestanding cinema, built on the footprint of the longtime Sears store demolished years ago on the northwestern corner of the mall, marks a rebirth for Miami-based CMX Cinemas, which filed for bankruptcy last spring after the pandemic lockdown.
The company has hired about 80 team members, including eight managers and an executive chef for Naples. The cinema has six movie screens, a full-service dinner menu, a full bar and a lounge. Patrons are advised to arrive a half-hour before the movie begins to place dinner orders so that meals are delivered to their seats before the show starts.
Admission after 6 p.m. is only for patrons 21 and over.
Naples Art District to host Art for a Cure:
Pink with a Purpose...
The 80 artist members of the Naples Art District (NAD), The Florida Breast Cancer Foundation and Susan G. Komen Florida are presenting Art for a Cure: Pink with a Purpose. During October, artists from the NAD will host a series of VIP behind-the-scenes tours to benefit breast cancer awareness, research and treatment initiatives.
Tickets are $125 and tours are available from 1-4 p.m. on Oct. 14 and Oct. 16 and 5-8 p.m. on Oct. 21. A $125 donation includes a three-hour VIP artists’ studios tour. Tours will include refreshments, treats by Norman Love Confections, 10 raffle tickets and special invitations throughout the season to art openings and exhibition previews in the Naples Art District. Tours will be closed to the public and VIP guests will be chartered between artists' studios by Dolphin Transportation Specialists.
Buyers who close after Oct. 1 and need flood insurance should understand upcoming flood insurance changes. The new rating system is property-specific and not yet published, but 12% of Fla. homes will see at least a $120 yearly increase. Buyers may be able to assume a seller’s policy and rates, however.
ORLANDO, Fla. – The yearly rates for flood insurance policies under the National Flood Insurance Program (NFIP) will change on Oct. 1. For most Florida homes, rates will be roughly the same as they are now; for about 1 in 5 Florida homes, they’ll go down.
However, 7.8% of Florida homes will see an increase of $120 to $240 more per year, and 4.2% of Florida homes will be charged $240 or more per year. FEMA calls the new program Risk Rating 2.0: Equity in Action.
The problem may directly affect current homebuyers closing after Oct. 1 for two reasons: It’s not yet clear whether a specific property’s rate will go up, down or stay the same – and it might not be clear until after Oct. 1. The issue is evolving, but sellers should stay current on the changes if they plan to close after Oct. 1 and their lender requires flood insurance on the property.Current NFIP rates are not grandfathered in. However, a current home seller’s policy is assumable by the buyer, providing the seller agrees to do so. In some cases, private flood insurance coverage may be an option.
According to the National Flood Insurance blog, the seller must transfer the current flood insurance policy to the buyer. In most cases, the seller receives a premium refund for their yearly payment after closing; in this case, the money gets settled at closing. However, the arrangement can benefit sellers if they find it easier to complete a transaction after buyers find flood insurance costs challenging.
For buyers, it often means saving money, though that might not be true for the 19.8% of Florida homes that will see a decrease in their yearly flood insurance fees. It also means the buyer can avoid the “hassle of meeting underwriting requirements to purchase a flood insurance policy, which can help a property sell faster.”
Note, however: NFIP policies renew yearly, and buyers as well as current homeowners will eventually pay the new rates after the Oct. 1 NFIP changes.
For more information on assuming a seller’s flood insurance policy, read the blog, The Flood Policy Assumption Process.
A PDF overview of Risk Rating 2.0’s impact on Florida is also posted on FEMA’s website. According to FEMA, the percentage of Florida properties getting higher or lower rates is:
© 2021 Florida Realtors® By Kerry Smith
Naples Area Market Report - June 2021