Category: Real Estate News

According to Realtor.com’s sixth annual Best Time to Buy Report, the week of September 29 to October 5, 2024, is shaping up to be the optimal time for homebuyers. Several key market indicators—including listing prices, inventory levels, and homebuyer demand—suggest that this period offers the best combination of savings, options, and market conditions for prospective buyers.

Why October is Ideal for Buyers

• Lower Prices: During this week, buyers could save over $14,000 compared to summer’s peak home prices, which reached a median of $445,000.
• More Listings: Inventory levels are expected to be up by 37% compared to the beginning of the year, providing more choices for buyers.
• Longer Time on Market: Homes are projected to stay on the market for over two weeks longer than during peak buying periods, giving buyers more time to make decisions.
• Less Competition: Buyer demand is expected to be 29.5% lower than at peak times, meaning less pressure to compete for properties.

Market Conditions Favoring Buyers

October historically provides a favorable balance between inventory and pricing. According to Danielle Hale, Chief Economist at Realtor.com®, “This year, buyers will find one of the best dynamics in years during the first week of October, with ample options and the potential to save on list prices.” Falling mortgage rates may drive late-season demand, but with plenty of available inventory, the competition should remain manageable.

If you’re unable to act in the first week of October, the following two weeks still offer great buying opportunities with many of the same benefits, though new listings may start to decline slightly, according to Hannah Jones, Senior Economic Research Analyst at Realtor.com®.

What to Expect: Key Market Metrics

Realtor.com analyzed six critical metrics to determine the best time to buy:

• Listing Prices: Around 50,000 homes could see price reductions, potentially leading to savings.
• Inventory Levels: Active listings could reach their highest level since before the pandemic, offering a broader selection.
• Homebuyer Demand: Demand typically slows down during this period, making competition less fierce.
• Days on Market: Homes are expected to stay on the market 34.8% longer compared to peak buying times earlier in the year.

Prepare for Fall Homebuying Now

To make the most of this unique buying opportunity, experts recommend starting preparations early. One useful strategy is saving a search on platforms like Realtor.com® to keep track of new listings within your price range, without needing to recreate your search every time.

October 2024 is shaping up to be the best time for homebuyers in years, offering a combination of lower prices, ample listings, and a less competitive market. Whether you’re a first-time buyer or looking to upgrade, this fall could provide the perfect window to make your move.

In a positive shift for homebuyers, the average rate for 30-year fixed mortgages in the U.S. has dropped to its lowest point since February 2023. This week, the rate fell to 6.20%, down from 6.35% just last week. For comparison, a year ago, rates were significantly higher at 7.18%.

Similarly, 15-year mortgage rates, popular among homeowners looking to refinance, also declined. The average rate dropped to 5.27% from 5.47% last week, while a year ago, it stood at 6.51%.

This decrease in mortgage rates reflects broader economic conditions, including a drop in Treasury yields as markets anticipate an interest rate cut from the Federal Reserve. With inflation slowing and the job market cooling, expectations are high that the Fed may lower rates for the first time in four years in their upcoming policy meeting.

The 10-year Treasury yield, a key indicator for mortgage rates, has been falling in anticipation of the Fed’s actions, contributing to the lower borrowing costs. As of Thursday, the yield had dropped to 3.68%, down from its peak of over 4.7% in April.

Despite the easing rates, prospective buyers remain cautious due to ongoing challenges like high home prices and a shortage of available properties. This has contributed to the continuation of a housing slump, now in its third year. Although home sales in the U.S. improved slightly in July, they remain below last year’s levels, as many buyers struggle with the higher costs of borrowing.

While mortgage rates have softened, they still remain considerably higher than the rates seen just a few years ago, when 30-year mortgage rates were below 3%. The elevated rates have added significant costs for buyers, often increasing monthly payments by hundreds of dollars.

As the economic landscape continues to evolve, mortgage rates may shift further, making it important for prospective buyers and homeowners looking to refinance to stay informed on market trends.

Stay tuned for updates as we monitor the potential impact of the Federal Reserve’s decisions and their influence on mortgage rates in the months ahead.

Here is the 2023 Sanibel, Captiva, and Southwest Florida Luxury Real Estate Market Report. Browse through the report to learn more about the Southwest Florida Luxury Real Estate Markert

For over a year, the beloved Doc’s Beach House stood silent, a casualty of Hurricane Ian’s wrath. Walls crumbled, debris scattered, and the bottom floor became a mere shadow of its former self. But the spirit of this family-owned restaurant, a Bonita Springs staple since 1987, refused to be extinguished.

Through sheer determination and unwavering resilience, Doc’s Beach House has risen from the ashes, reclaiming its place on the pristine Gulf Coast beach. While repairs were underway, the passionate owners kept the flame of their culinary magic alive through a dedicated food truck, ensuring their loyal patrons wouldn’t go hungry.

Now, the wait is finally over! Doc’s Beach House is back, and bigger and better than ever. A soft opening on December 1st gave a taste of what was to come, and now, the grand opening on Friday throws open the doors to the public, inviting all to rediscover the magic of this iconic restaurant.

Step into Doc’s Beach House and be greeted by breathtaking views of the turquoise waters and the soft, golden sands. Savor delicious food prepared with love and expertise, knowing that each bite contributes to the ongoing revitalization of this cherished community treasure.

Head over to Doc’s Beach House at 27908 Hickory Blvd., Bonita Springs, and experience the perfect blend of exquisite food, breathtaking scenery, and heartwarming community spirit. Or, visit their website for a sneak peek: [link to website].

Let’s raise a glass to the triumphant return of Doc’s Beach House, a testament to the power of perseverance and the enduring spirit of Bonita Springs!

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Closed Sales
Closed sales for the 12-month period ending August 31, 2023 were down 25% from the preceding 12-months, from 31,726 to 23,941. The 1,945 sales posted for the month of August were down 2% when compared to August of 2022.

Listing Inventory / New Listings
As of August 31, 7,564 properties were available, up 40% from the same date last year and static compared to the prior month. New listings for the 12-month period ending August 31 were down 9% from the preceding 12-months, from 36,467 to 33,076. For the month of August, new listings were down 1% from the same period in 2022. 3.79 months of supply was posted as of August 31, up 85% from August 2022 when months of supply was an unusually low 2.05 months, and unchanged from July 2023.

Average Selling Price
The average selling price for the 12-month period through August 31 was $795,912, up 7% from the preceding 12-month period when the average selling price was $746,900.

Perspective
Closed sales during the month of August fared well, posting a 9% uptick over July and a mere 2% shortfall compared to August of last year. Offering welcomed additional options for buyers, new listings posted month-over-month and year-over-year increases, at 5% and 1%, respectively. However, due to the steady pace of sales, standing inventory remains low from a historical standpoint with 7,564 units on the market as of August 31^st, up 40% of one year prior, but still well short of the 10,000+ that was typical for this time of year prior to the pandemic-induced buyer surge. Due to continued steady demand and a tight inventory that’s increased little in recent months, and in spite of interest rates having edged up, closed sales prices have continued to rise year-over-year, but at a slower rate than during the height of the market.

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A 1031 exchange is a tax-deferred exchange that allows you to sell one investment property and use the proceeds to buy another investment property of equal or greater value. This can be a great way to grow your real estate portfolio without having to pay taxes on the capital gains from the sale of your first property.

Here are the steps on how to do a 1031 exchange:

1. Identify the property you want to sell. This is the first step in any 1031 exchange. You need to find a property that you are willing to sell and that meets the requirements of a 1031 exchange.
2. Identify the property you want to buy. Once you have sold your first property, you need to find a new property to buy. This property must be of equal or greater value than the property you sold.
3. Choose a qualified intermediary. A qualified intermediary (QI) is a third party who will help you facilitate the exchange. The QI will hold the proceeds from the sale of your first property until you purchase the new property.
4. Decide how much of the sale proceeds will go toward the new property. You will need to decide how much of the sale proceeds from your first property will be used to purchase the new property. The remaining proceeds will be returned to you.
5. Keep an eye on the calendar. There are strict time limits for completing a 1031 exchange. You have 45 days to identify the new property and 180 days to close on the purchase.
6. Be careful about where the money is. The money from the sale of your first property must be held in escrow by the QI until you purchase the new property. You cannot touch this money or use it for any other purpose.

If you follow these steps, you can successfully complete a 1031 exchange and defer the taxes on the capital gains from the sale of your first property.

Here are some additional tips for doing a 1031 exchange:

• Start planning early. It takes time to find the right properties and to work with a qualified intermediary.
• Get professional help. A qualified real estate advisor can help you find the right properties and navigate the complex rules of a 1031 exchange.
• Be aware of the risks. There are some risks associated with 1031 exchanges, such as the risk that the new property will not appreciate in value or that the market will crash.

Conclusion

A 1031 exchange can be a great way to grow your real estate portfolio without having to pay taxes on the capital gains from the sale of your first property. However, it is important to understand the rules and to work with a qualified professional to ensure that the exchange is completed correctly.

As of today, August 4, 2023, there are still 44 days left in the 180-day window for completing a 1031 exchange. If you are considering a 1031 exchange, it is important to act quickly so that you do not miss the deadline.

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SWFL Active Residential Inventory and Pending Activity for the first half of the year over the past 4 years!

Real estate leader Robin Sheakley, president of Sibcy Cline Realtors, received a text from a friend in Ohio asking for help in buying a house in Sarasota. Coincidentally, Sheakley happened to be in Sarasota at the time and was attending a dinner party hosted by Michael Saunders, founder of Michael Saunders & Co. Sheakley and Saunders see this as an example of the continued flow of homebuyers to areas on the west coast of Florida, despite some signs of weakness in the overall real estate market. They, along with four other realty brokerage leaders from around the state and country, spoke about the real estate market during a media session on April 26 at The Ritz-Carlton in Sarasota. The leaders were in town for a conference hosted by The Realty Alliance, a network of elite real estate brokerages across North America. They discussed the state of their home markets, trends, and what they see happening in Florida.

Inventory

Robin Sheakley notes that her company’s transaction volume in Ohio has decreased by 35% in 2023 due to a severe shortage of inventory. The other panelists, including Stephen Baird, President and CEO of Baird & Warner in Chicago, also report struggling with inventory. Baird, whose company is the oldest independent family-owned real estate services company in the U.S. and the largest independent real estate brokerage in Illinois, says his firm’s listings of homes for sale are down 50%. Despite high demand, they are unable to sell due to the lack of available homes.

Florida Pipeline

Despite facing challenges in the real estate market, including inventory shortages, the executives on the panel agree that Florida remains a popular destination for homebuyers. Ron Howard of John R. Wood Properties in Naples notes that many buyers seek second homes or condos in Southwest Florida for the weather and active lifestyle. John Horning of Shorewest Realtors in Wisconsin reports seeing an increase in dual ownership, with clients keeping condos in Wisconsin and buying another in Naples or elsewhere in Florida. Stephen Baird of Baird & Warner in Chicago also sees this trend, but believes the national stories of people fleeing Chicago and Illinois are overblown. Nonetheless, he recently opened a Florida office in Naples due to demand from his agents. Michael Pappas of The Keyes Co. in Miami says that people from the Midwest tend to head to the west coast of Florida, while those from the Northeast prefer the east coast. Some buyers are even purchasing homes in Ave Maria, 90 miles west of Miami, and commuting to Miami-Dade or Broward counties due to crowding in South Florida.

Insurance

Despite reforms to the state’s insurance market, affordable insurance remains a challenge for some homebuyers. Michael Pappas, president of The Keyes Co., notes that 80% of his firm’s clients are insured by Citizens Property Insurance Corp. due to lack of coverage options. Pappas also gives an example of the high cost of insurance in Miami, where he is paying $85,000 for insurance on a $3.5 million home. Some South Florida buyers in the higher price range have even decided to forego insurance altogether, according to Pappas.

Mortgage Rates

Panelists are advising clients that low mortgage rates of 3% or 4% are unlikely to return. However, Michael Pappas notes that even the current fixed-rate of 7.1% is better than it has been for at least 40 of the past 50 years. Buyers are being informed that this is the new normal, but they can purchase now and refinance later if/when rates go down. As Elizabeth Sheakley says, “you date the rate, but you marry the house.”

Design

Real estate executives see a trend towards more space, including backyards, pool areas, and ceiling heights, as well as better use of space, such as sliding doors. They note that the Mediterranean look is out and modern style is in, and that the outdoor lifestyle is popular. Michael Saunders & Co. has 20 sales offices and over 600 agents in Sarasota, Manatee, and Charlotte counties.

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During a public hearing on Thursday, the Cape Coral City Council unanimously approved the Hudson Creek planned unit development, which encompasses a mixed-use area. This 1,732-acre development is located in northwest Cape Coral, positioned east of Burnt Store Road and north of Jacaranda Parkway.

The project will comprise up to 3,500 dwelling units, with 2,500 of these being single-family homes. Alongside the residential components, the development will feature 425,000 square feet of retail and restaurant space, 500 hotel rooms, and 150,000 square feet of office space.

Moreover, the site has been designated for a potential 800-bed assisted-living facility and a 3,000-student university, but no discussions have taken place with interested colleges or universities. The proposed schedule of uses serves as a guideline for permissible developments that can be established on the site.

Over the years, some sections of the site have been part of Cape Coral, while other portions were annexed into the city at different times.

The entire site remains undeveloped, with no existing roadway access and no utilities present.

A central spine road will be constructed through the development, with access from Burnt Store Road, Wilmington Parkway, Jacaranda Parkway, and Chiquita Boulevard. The neighborhood roads will feature sidewalks on both sides, and the spine road will have bike lanes on both sides as well. Click here for the entire article