Sanibel Real Estate Blog: 2015 was a good year!

February 4th, 2016

2015 was a pretty good year from a real estate standpoint. Our Sanibel Board of Realtors stats show a 12 % increase in sales over 2014 with a slight increase in prices over that same time.

2016 began with low inventories. We were 20% lower than 2015 and 55% lower than the 3 year average from 2010-2012. In the “good old days” this would have translated in to significant price increases, but “these days” the increases are modest.

A snapshot of the last 10 years from our board stats shows the peak sales period(condos and single family homes) was 2006 and bottom was 2012. Since then we have seen modest price increases with overall values just a bit higher than 2008. All in all, it’s a healthy market. The record low inventories should provide for an interesting winter season.
Stay tuned!!

If you want to be a part of this interesting Sanibel real estate season, give us a call at 239-849-3396, or check out our listings at www.chuckandrews.com, as well as all Sanibel real estate listings.

Sanibel Real estate blog: Remax gets the hits!

January 28th, 2016

REMAX.COM number of visits in 2015: 62,132,115

Other companies:

century21.com
42,457,848 visits
kw.com
31,567,836 visits
weichert.com
20,452,820 visits
coldwellbanker.com
20,618,581 visits
I think we will just let those numbers speak for themselves in this blog. If you have an interest in Sanibel real estate: call the ones getting the visits at remax.com.

Check out www.chuckandrews.com for Sanibel real estate listings at well as remax.com!

Sanibel Real Estate Blog: December Stats

January 22nd, 2016

The story for December in home sales: prices continue to rise but number of homes sold drops.

The selling prices have dramatically increased this year, with the current median home sales price in Lee at $ 231,000 compared to $ 190,000 in Dec of 2014. Condo prices were up 2.6% to $189,900 from $185,000 in Dec. 2014.

Houses also are on the market a shorter time with current market time of 30 days- December 2014 had a 34 day market period.

Maybe it is time to get out there and get ahold of some Sanibel real estate. Check out listings at our website,www.chuckandrews.com or give us a call to discuss the market anytime at 239-849-3396

Sanibel Real Estate Blog: Just in From the NAR

January 13th, 2016

WASHINGTON – Jan. 12, 2016 – Following the housing market’s best year in nearly a decade, existing-home sales are forecast to expand at a more moderate pace in 2016 as pent-up buyer demand combats affordability pressures and meager economic growth, according to National Association of Realtors®(NAR) Chief Economist Lawrence Yun.

In an NAR video, Yun discusses his expectations for the U.S. economy and housing market in 2016. He cites pent-up demand, sustained job growth and improving inventory conditions as his reasons for an expected gain (from 2015) in new and existing-home sales. A NAR-created infographic provides an overview of Yun’s forecast.

Despite his forecasted increase in sales, Yun cites rising mortgage rates, home prices that still outpace wages and shaky global economic conditions as headwinds that will likely hold back a stronger pace of sales.

“This year, the housing market may only squeak out 1 to 3 percent growth in sales because of slower economic expansion and rising mortgage rates,” Yun says in the video. “Furthermore, the continued rise in home prices will occur due to the fact that we will again encounter housing shortages in many markets because of the cumulative effect of homebuilders under producing for multiple years. Once the spring buying season begins, we’ll begin to feel that again.”

With one month of data remaining for 2015, Yun expects total existing-homes sales to finish the year up 6.5 percent from 2014 at a pace of around 5.26 million – the highest since 2006, but roughly 25 percent below the prior peak set in 2005 (7.08 million).

The national median existing-home price for all of 2015 will be close to $221,200, up around 6 percent from 2014. In 2016, existing sales are expected to grow between 1 and 2 percent (5.30 to 5.40 million) and prices between 5 and 6 percent.

If it is time for you to check out Sanibel real estate, view listings at www.chuckandrews.com or give us a call for Sanibel real estate info anytime at 239-849-3396

Sanibel Real Estate Blog: Positive Trends Continue

January 5th, 2016

ORLANDO, Fla., – Jan. 4, 2016 – Positive trends continued for Florida’s housing market in November, with more closed sales, higher median prices, more new listings and fewer days on the market, according to the latest housing data released by Florida Realtors®. Statewide closed sales of existing single-family homes rose last month with a total of 18,102, an increase of 1.9 percent over November 2014.

“The Consumer Financial Protection Bureau’s Know Before You Owe TILA-RESPA Integrated Disclosure (TRID), which was implemented in early October, may have affected home sales in the last couple of months,” says 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. “It appears some sales have been delayed and likely pushed into closing the following month. However, as the TRID implementation process moves forward, we believe its impact should be transitory.

“Also, we don’t expect that (December’s) decision by the Federal Reserve to slightly raise the federal funds rate will have a significant adverse impact on the housing market, as rates remain historically low. The increase was long anticipated, and it may even encourage homebuyers who had been waiting on the sidelines to enter the market now.”

The statewide median sales price for single-family existing homes last month was $200,000, up 13.6 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in November was $150,000, up 7.1 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

November marked 48 months in a row month that statewide median sales prices increased year-over-year for both single-family homes and townhouse-condo properties.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in October 2015 was $221,200, up 6.3 percent from the previous year.

In Florida’s townhouse-condo market, statewide closed sales last month totaled 7,638, up 5.7 percent compared to November 2014. The closed sales data reflected fewer short sales in November: Short sales for townhouse-condo properties declined 35.8 percent while short sales for single-family homes dropped 34.3 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.

“We are ending the year on a high note, but the market is definitely tightening in Florida,” says Florida Realtors Chief Economist Dr. John Tuccillo. “Both single-family sales and condo-townhouse sales increased in November, but inventories continue to fall.

“Although the recent Fed increase in interest rates will not affect the housing market in any significant way in the next few months, the rise, coupled with the absence of inventory, could cause the market to slow down a bit as we enter 2016.”

Inventory continues to be tight, with a 4.5-months’ supply in November for single-family homes and a 5.5-months’ supply for townhouse-condo properties, according to Florida Realtors. Most analysts consider a 6-month supply of inventory as the benchmark for a balanced market between buyers and sellers.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.94 percent in November 2015, down from the 4.0 percent average recorded during the same month a year ago.

Maybe time to check out the Sanibel real estate market, if you want to check out listings go to www.chuckandrews.com, or for personal advice- call Chuck Andrews at 239-849-3396.

 

Sanibel Real Estate Blog: Rates on The Rise?

December 17th, 2015

The nation’s largest banks, in response to the Federal Reserve raising interest rates, have already started raising their prime lending rates. Citibank, B of A, US. Bancorp, Wells Fargo, JP Morgan Chase, PNC and others raised their prime lending rate to3.5% form 3.25%, effective in most cases Friday.

Get your home loan before you hear of another rate hike. If you are interested in checking out Sanibel real estate, give us a call at 239-849-3396 or check out some Sanibel real estate listings on our website.

Sanibel Real Estate Blog: Baby Boomers: What’s UP?

December 9th, 2015

Baby boomers blamed for clog in housing market

WASHINGTON – Dec. 8, 2015 – Some economists say the baby boomers aren’t selling their homes like previous generations did and not downsizing fast enough – and that leads to shortages of homes for sale and rising prices.

Baby boomers are “clogging up the whole chain of home sales,” says Sean Becketti, chief economist of Freddie Mac. “They appear to be staying in the family home longer than previous generations, and the imbalance between housing demand and supply continues to boost prices.”

Baby boomers are big players in real estate. In 2013, people age 55 and older controlled two-thirds of all home equity, according to the Federal Reserve’s most recent Survey of Consumer Finances.

In previous generations, once the kids moved out of the house, empty nesters tended to downsize and move to smaller homes or rent apartments. But so far, boomers haven’t made a move.

“Economists say boomers’ slower-than-expected rate of downsizing and selling is playing a contributing role in supply, demand and pricing imbalances in local markets – not creating those imbalances,” The Washington Post reports.

Lawrence Yun, chief economist for the National Association of Realtors®, told The Washington Post that the lingering effects of the housing crisis and the Great Recession may be the reason more baby boomers are postponing their moves. From 2008 to 2011, homeowners of all ages lost lots of equity, and many of them may still be rebuilding equity to allow them to sell without having to bring money to closing.

But Fannie Mae’s Patrick Simmons, an economics and strategic research group director, says that the real estate pipeline clog caused by baby boomers probably won’t last much longer.

“Boomers will not inhabit this vast inventory [32 million homes] forever,” he says. Their circumstances will inevitably change with age and they will move, and “their actions will reverberate through the housing market.”

Source: “By Not Downsizing, Baby Boomers Help Clog Up the Real Estate Pipeline,” The Washington Post (Dec. 2, 2015)

© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688

C’mon Sanibel boomers! Let’s release some of that inventory. If you have an interest in selling your Sanibel Real estate, give us a call at 239-849-3396 or check out the current market on our website: www.chuckandrews.com.

Sanibel Real Estate Blog: Seller’s Market Continues

November 30th, 2015

Lee County continued to be a seller’s market inOctober, but is slowing down slightly ahead of the upcoming holiday season.
According to the latest data released by Florida Realtors®, closed sales on Single Family Homes was up 1.6% year-over-year in October. There were 1,055 last month, compared to 1,038 in 2014. The Median Sale price jumped 14% from 2014 to 2015 from $184,175 to $210,000.
For Condos and Townhomes, Closed Sales were up 10% from 471 in October 2014 to 518 in 2015. The Median Sale price was up 6.4% to $173,450.
Both Active Listings and Months Supply of Inventory are down. Single Family listings dropped 10.3% year-over-year in October. Months Supply is down 21.6% 4 months, compared to 5.1 months in October 2014.
Both Single Family Homes and Condos/Townhouses continue to sell quicker than this time last year. Homes are spending a median 28 days on the market, which has dropped from 36 days in 2014. Condos and Townhouses spent a median 43 days on the market in October 2015 comparedto 53 in 2014, a drop of nearly 19%.

Maybe it is time to put that Sanibel real estate on the market! Check out our sales info on www.chuckandrews.com or give Chuck a call anytime at 239-849-3396 to discuss the Sanibel real estate market

Sanibel Real Estate Blog: Housing Crash Not Likely

November 20th, 2015

OK, keep in mind- we didn’t write this and the credit is below. Just thought it was blog worthy as we get this question a lot!

6 Reasons a Housing Crash is not likely:

NEW YORK – Nov. 20, 2015 – The 2006-2007 housing bubble happened almost a decade ago. Should Americans be worried that history could repeat itself? After all, home prices have risen above the bubble era in most areas of the country.

However, the bubble’s pain still stings, and many Americans worry that it could happen again. But housing experts say there are many reasons Americans shouldn’t be concerned about “Housing Crisis Part II” anytime soon, including:

1. Fixed-rate loans are more common. Many Americans have refinanced to a fixed-rate mortgage so when interest rates rise – largely predicted to start next month – there won’t be as much shock when short-term Adjustable Rate Mortgages readjust compared to the 2008-2009 era. In 2008-2009, many Americans saw their ARMs reset to a higher rate that they could no longer pay, which sent defaults skyrocketing.

2. Old distress is being flushed out through bank repossessions. Bank repossessions recently reached their highest level in more than two years. But the reason behind the climb is positive: Banks are flushing out long-term distressed properties rather than adding more.

3. Foreclosures have fallen dramatically. Despite the uptick in bank repossessions, the number of loans in foreclosures is 2.1 percent. That marks the lowest level since 2007, according to the Mortgage Bankers Association.

4. First-time buyer programs are bringing new clients into the market. In addition to new downpayment programs, the Federal Housing Administration moved this year to reduce its annual mortgage insurance premiums by up to $900 per year. That move alone has been predicted to help jump-start home sales by the most since 2006. What’s more, it could lure 140,000 new buyers to the market, according to the National Association of Realtors®.

5. The economy is strengthening. Over the past five years, the U.S. has added jobs at a steady rate, now replacing many of the jobs lost during the recession. Also, the quality of jobs is improving as the economy strengthens.

6. New-home construction remains dismal. The supply of existing for-sale homes is lower today than it was in 2000 – despite the population growing by more than 14 percent. Also, new single-family starts remain 60 percent below the peak in 2006 and are about 25 percent below the average for the past 15 years. An oversupply of the homes on the market isn’t likely any time soon.

Source: “10 Reasons Why Another Imminent Real Estate Crash Is Unlikely,” TheStreet.com (Nov. 10, 2015)

IF you are ready to jump in and buy some Sanibel real estate, check out our website at www.chuckandrews.com for all the Sanibel real estate listings or give us a call anytime to discuss!

Sanibel Real Estate Blog: You love Realtors!

November 12th, 2015

The National Association of Realtors®‘ (NAR) 2015 Profile of Home Buyers and Sellers indicates that 89 percent of sellers used real estate agents this year – an increase from 88 percent in 2014.

Meanwhile, 87 percent of buyers used real estate agents, one-percentage point lower than last year.

NAR and real estate professionals attribute the increased demand for agents in the digital era to a variety of factors, including:

  • Supply shortfalls. A lack of inventory makes home buying competitive, which prompts buyers to turn to agents for the inside scoop on homes coming to market and, when they do, to quickly write offers.
  • Data overload. Consumers also need agents to weed through vast amounts of data, when the info available online is often old or inaccurate.
  • Complex steps. The buying-selling process is now more complex, with longer contracts. More and more consumers start to realize that agents are better equipped to handle them.
  • Earlier connections. Real estate websites and online ads have contributed to the increase in demand for property professionals by helping consumers connect with agents earlier in the process.

If you need help navigating the Sanibel real estate market, check out our website at www.chuckandrews.com for new listing info or give us a call and let us do the Sanibel real estate search!