Nina Link's Real Estate Blog

HOMEBUYERS ON A SHOPPING SPREE...
Inventories declining as median home price dips
SPECIAL TO FLORIDA WEEKLY
REALTOR ASSOCIATION OF GREATER FORT MYERS & THE BEACH, INC

Sales of existing homes in the Greater Fort Myers area were up an 181 percent December, with a total of 1,034 properties sold, compared to 367 during December 2007, according to a report by The Realtor Association of Greater Fort Myers and the Beach, Inc. Short sale and bank-owned properties continue to influence market prices, as the median price dropped to $97,750, which is below 2003 levels.

The Naples Area Board of Realtors reported that sales continue to increase as December marked 11 consecutive months of market improvement. The NABOR report tracks home listings and sales within Collier County (excluding Marco Island).

In the Greater Fort Myers area, the report said there were 10,326 single family homes for sale during the month of December, with an estimated 8.8- month supply of inventory - this is in sharp contrast to a year ago when the inventory supply was nearly 23 months. Sales activity remains steady with 1,178 properties pending, an increase of 137 percent versus the prior year.

"Earlier in the year, we predicted that sales of existing single-family homes for the year would surpass 2003 and 2007 levels. We are extremely pleased that, in fact, the sales pace was much greater than anticipated as we surpassed 2004 sales by 6.5 percent and 2006 sales by 7.1 percent," said Association President Suzanne Sherer. "We believe that sales volumes will continue to grow as lenders have priced properties aggressively to move them and now that inventory levels are under nine months, we expect that many properties will receive multiple offers."

In Collier, the available inventory decreased to 10,851 in December 2008 compared to 11,456 in December 2007.

"Over the last 12 months, 5.3 percent of the available inventory has depleted, indicating that the properties that are priced right are being picked off. Inventory is not building up exponentially," said 2009 NABOR President-elect JP Antonmattei with Amerivest Realty.
The average days a property was on the market decreased 23 percent to 156 days in December 2008 compared to 203 days on the market in December 2007.

"For the 12 months ending December 2008, overall sales have increased 33 percent. This increase leaves fewer properties to choose from, which is why we are seeing a drop in the average days on the market," said John Steinwand, president of Naples Realty Services.

The report provides annual comparisons of single-family home and condo sales (via the Sunshine MLS), price ranges, geographic segmentation and includes an overall market summary.
Overall pending home sales in the Greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 100 percent, with 519 pending in December 2008, compared to 259 in December 2007.

"Season arrived early for single family homes under $300,000 as pending sales increased 513 percent. This shows that choice properties that are priced right are quickly disappearing," said Mike Hughes, vice president of Downing-Frye Realty.

Overall condo pending sales increased 46 percent, with 196 in December 2008 versus 134 in December 2007; and pending condo sales under $300,000 increased 165 percent, with 151 in December 2008, compared to 57 in December 2007.

These are unprecedented times! The combination of low mortgage rates and low home prices make this an excellent time to buy.

Mr. Opportunity is knocking. Isn't it time you answered the door?

With mortgage rates and home prices at an almost unprecedented low, buyers have tremendous opportunities in 2009 to get into the home of their dreams.

Jean Chatzky, NBC Today Show's financial editor, confirmed this on a recent episode saying that if you are in the market and you have saved a 10, 15 or 20% down payment, you have a plethora of housing options available.

On a local level, according to a report from IHS Global Insight and National City Corp, Naples is one housing market that is surprisingly undervalued by nearly 20%. The nationwide study considered interest rates, household incomes, population densities and historic data to determine fair values.

As of November, the average sales price in Naples, Bonita Springs and Estero was at 2004 levels, so there's no doubting that great purchase opportunities exist, says Dottie Babcock, chief operating officer of John R. Wood Realtors.

Labels: Mortgage Update

Just in case you missed the article by Max Turnier with WINK news, he has stated that the December 2008 sales have increased dramatically over the last year. Actually, the sales on homes have increased 181 percent! Compared to December 2007, there have been approximately 700 more homes sold in 2008. Because of short sales and foreclosures, the market prices are remaining low.

Labels: Fort Myers Sales Skyrocket

Not in front of us.

According to a recently published article (which I have included a link to the full article below) here are some interesting points....

• Hourly wages rose in December and up from December 2007
• Real wages likely rose from a year-ago which is the fastest increase since '72
• Consumer purchasing power has increased since last year
• Decline in gas prices are saving consumers approximately $410 billion in yearly expenditures
• Initial claims for unemployment have dropped

Please take a few moments to read the entire article. It is quite interesting and certainly provides us with a different view of things to come.

Link to article: http://www.forbes.com/opinions/2009/01/12/recession-stimulus-unemployment-oped-cx_bw_0113wesburystein.html

Brian S. Wesbury is chief economist, and Robert Stein senior economist, at First Trust Advisors in Lisle, Ill. They write a weekly column for Forbes.com.

Labels: Recession is likely behind us