Monthly Archives: January 2013

Naples, Florida 2012 Median Closed Price Increased 17 Percent

2012 MEDIAN CLOSED PRICE INCREASED 17 PERCENT

Naples, Fla. (Jan. 18, 2013) – The Naples area overall median closed price increased a remarkable 17 percent from $175,000 in 2011 to $204,000 in 2012, according to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“At our annual Economic Summit held in April, Dr. Lawrence Yun, Chief Economist of the National Association of REALTORS®, predicted a 10 percent increase in the overall median price by the end of 2012,” stated Brenda Fioretti, Managing Broker at Prudential Florida Realty. “At the time, many people were incredulous with his assessment, but now today we are delighted to see the real estate market’s prices rebounding and surpassing estimates.”

The NABOR® 2012 Annual Report provides comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® annual sales statistics are presented in chart format, including these overall (single-family and condominium units) findings:

– Overall closed sales increased 9 percent, from 8,345 units in 2011, compared to 9,121 units in 2012. Overall closed sales increased 20 percent in the $300,000-$500,000 category, from 1,129 units to 1,357 units, and increased 29 percent in the $500,000-$1 million category, from 794 units to 1,022 units, from 2011 to 2012, respectively.

– Overall pending sales increased 6 percent, from 10,070 pending sales in 2011 to 10,683 pending sales in 2012.

– Overall inventory decreased by 13 percent, from 7,581 listed properties in 2011 to 6,557 listed properties in 2012. Pending sales with contingent contracts are included in the overall inventory number.

– Overall pending sales in the Naples coastal area increased 15 percent, from 1,791 units to 2,057 units, in 2012. Closed sales increased 14 percent, from 1,641 units in 2011 to 1,869 units in 2012.

“2012 was a very good year across the board for the Naples area real estate market,” stated Mike Hughes, Vice President and General Manager of Downing-Frye Realty. “From overall pending sales to closed sales and higher median closed prices, along with a continued decrease in inventory, it was a strong year. So strong, in fact, that we now would like to see higher levels of available inventory.”

Thomas A. Bringardner Jr., President and CEO of Premier Commercial, added “The continued economic recovery, both nationally and locally, as well as the decrease in the unemployment rate (dropping to 7.8 percent for Collier County in November 2012) and increase in tourism is benefitting the residential and commercial market.”

“The overall commercial market has remained relatively steady and now we are seeing modest improvements,” he said. “Recent large deals, including the sale of the Fifth Third Bank building and the Venetian Village, in addition to large land deals, highlight the improvement in the commercial market.”

The NABOR® 2012 Fourth Quarter Report provides annual comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® fourth quarter statistics are presented in chart format, including these overall (single-family and condominium units) findings:

– Overall closed sales increased 22 percent, from 1,689 units in fourth quarter 2011 to 2,061 units in fourth quarter 2012. Overall closed sales increased 58 percent in the $300,000-$500,000 category, from 207 units to 328 units, and increased 51 percent in the $500,000-$1 million category, from 146 units to 221 units, from fourth quarter 2011 to fourth quarter 2012, respectively.

– The median closed price increased 24 percent overall, from $165,000 in fourth quarter 2011 to $205,000 in fourth quarter 2012.

– Overall pending sales increased 8 percent, from 2,250 pending sales in fourth quarter 2011 to 2,422 pending sales in fourth quarter 2012.

– Overall inventory decreased 13 percent, from 7,580 units for fourth quarter 2011, compared to 6,557 units in fourth quarter 2012.

To view the entire report, visit www.NaplesArea.com

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.

The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

Marco Island Luxury Sales

Marco Island is experiencing a surge in buying. Marco Island saw a 24% increase in closed sales in 2012 (over 2011) and a 19.7% decline in inventory.

Marco Island also reported the following facts for the 2012 real estate market:
•The highest number of sales in 2012 for the reporting years of 2005 to 2012;
•The lowest inventory levels in 2012 for the reporting years of 2005 to 2012;
•Year-end inventory on 12/31/12 is almost equivalent to the total number of sales for the entire reporting year for the first time in over 7 years. The most impressive statistic is the lowest differential between sales and inventory (reporting years of 2005 to 2012).

For the high-end condominium market, specifically Cape Marco and Madeira, closed sales have increased by 21% for 2012 in comparison to 2011.

Since there are already 2 closed sales and 4 pending sales/under contract in Cape Marco and Madeira for the first 24 days of 2013, all indications point to continued growth in the high-end condominium market in the upcoming year.

Painting a room in your home

Have you ever picked a color from the myriad of paint samples available, put it on the wall and decided that it was all wrong? It shouldn’t have to be that difficult but trying to pick the perfect color from those little swatches is just not that easy.

Painters and decorators suggest you buy a small amount of the colors you’re considering. Your paint store should be able to mix them in any brand and any color. Once it’s on the wall, it will be easy to determine if it needs to be lighter or darker or if it’s completely wrong.

Take them home and paint a 2′ x 2′ area on the wall. If you’re concerned about testing the colors on your wall, you can paint some sample boards that can be easily moved around to see how they’ll look with the furniture, floors and other items in the room.

Instead of guessing what it’s going to look like, you’ll actually see how it looks during different times of the day, in natural and artificial light.

While $30 to $40 a gallon for paint may seem like a lot of money, the cost in time and labor to put it on the wall is even more. It’s worth taking the time to test the color on the wall before you buy all the paint needed

Reasons to buy now

Buyers who have delayed purchasing a home due to concerns about what might happen to the tax laws affecting home ownership should feel comfortable about getting back in the market. The recent legislation passed by Congress and signed by the President continues to value homes as a favored investment.

For a summary of specific real estate provisions in the “Fiscal Cliff” bill, click here.

Whether the delayed purchase is for a home to live in as your principal residence or to use as rental property, taking action sooner is better than later.

Reasons to buy now:
1.The house payment with taxes and insurance is probably cheaper than the rent.
2.Rents will continue to rise making the difference even greater in the future.
3.Lock-in the principal & interest payment with a fixed-rate mortgage.
4.30 year mortgage terms are available to most borrowers.
5.The mortgage interest deduction is intact for the majority of taxpayers.
6.The capital gain exclusion for principal residences up to $500,000 remains in place.
7.Prices are going up due to lower inventories and several years of low housing starts.

Contact me about any specific questions you have or information you need.

U.S. $1 million market ends year with a burst of activity

According to the National Association of Realtors, sales of homes priced at $1 million or more jumped 51% in November, compared with a year earlier. As the fiscal cliff approached, many sellers concerned about the anticipated capital gains tax increase and the 3.8% surtax on investment income of high earners as part of the Affordable Care Act, rushed to close home sales before year end.

It remains to be seen what impact this might have on 2013’s sales. The good news for demand is that interest rates remain low, foreign buy interest remains high, and last year’s fourth quarter sales activity has reduced luxury home inventory, which may bode well for prices.

Get your offer accepted!

As the market shifts from a buyer’s market, it’s good to know how to improve your chances to have the seller accept your offer.

Once you decide on a home, don’t waste time; write an offer and submit it as soon as possible. Competing with another buyer happens more frequently than you’d expect. Multiple offers are a seller’s advantage but here are some tips to level the playing field:
• Realistic offer – don’t give the impression you’re trying to “steal” the property. Submit comparable sales that justify your offer.
• Pre-approval letter – this satisfies seller’s biggest concern that an unqualified buyer will unnecessarily take the home off the market and the seller will lose other opportunities.
• More earnest money – it shows you’re serious and makes the seller feel like the contract will actually close.
• Minimize contingencies – from a seller’s standpoint, each contingency is one more reason why the sale won’t go through. They feel the home is “off the market” and they’re in limbo.
• Shorten inspection period – your agent can help you set a reasonable date but let the seller know you’re willing to close prior to that if possible.
• Write a personal letter to the seller telling them why you want their home – this can be the emotional connection to the seller that makes the difference in you getting the home.
A seller wants to feel confident that the offer they accept will actually close so they can plan for their next move. Following tips like these can definitely affect negotiations and help put together an offer that is more likely to be accepted.

Happy 2013 to your and your family!

After spending the holidays with family and friends, this is a time of the year to start thinking about changes to make in our lives, both personal and in business. I wanted to share one of mine with you.

My goal is to become your REALTOR® for life. I want you to think of me first when you need to buy or sell and that you’ll recommend me to your friends too. That kind of trust has to be earned and I’m committed to helping you be a better homeowner even when you’re not buying or selling.

The strategy is simple. A well-informed homeowner will make better decisions. I’ll periodically offer information through articles and social media on a wide variety of home-related topics like maintenance tips, tax law changes, financing suggestions, insurance, equity building strategies, and rental property investments.

Please contact me if you need a recommendation on a service provider. My experience has built a list of reputable and reasonable contractors that you can rely upon. When you have any kind of home-related questions, I hope you’ll have the confidence to call me.

Happy New Year. I sincerely look forward to helping you or your friends.