TOM & SUE DEMOGENES...
"YOUR INFORMED REAL ESTATE COUPLE"
August 2013 Real Estate Newsletter
Cape Coral/Ft Myers 3rd Fastest Rising Market in the Nation
A National Association of Realtors survey showed that Cape Coral/Ft Myers median home sale prices rose by 36.1% in the second quarter compared to a year ago. Naples was seventh with a 29.3% increase to $346,600. Nationwide, home prices continued to rise in a majority of metropolitan areas, with prices showing the strongest price gain in 7 1/2 years.
Cape Median Home Prices Break $215,000 Mark
Thanks to unusually brisk summer sales activity, combined with a few high priced home sales (see below), Cape Coral broke the $215,000 mark in July for the first time in many years. At the start of the year median home prices were $186,000, so the price increase represents a 16% jump in only seven months. We are well on our way to achieving our January prediction of over 20% appreciation for 2013.
$5.3 Million Home Sells in Cape Harbour
There was a $5.3 M home sale last month in prestigious Cape Harbour. This was the highest priced single family home sale in the Cape since the real estate downturn. There were also a $1.6 M and a $1 M home sale in the city. Our market is gradually coming back, but still a long way before it reaches peak levels of early 2006.
Tom's Key Chart Notes:
* July's prices were 37% higher than July 2012
* List/Sale price is now only a 3.2% differential, reflecting the tight inventory
* $114 Per Sq Ft indicates that more high-end homes are being sold
Tom's Fun Facts for the Month
* New Construction: U.S. single family construction permits are at the highest level in 5 years, and the country saw 12.2% year-to-year price increases, the best improvement in 6 years. The national housing recovery is in full stride.
* CREDIT SCORES: The average credit score to secure a mortgage is now at 761, up from 720 earlier in the year, according to the National Association of Realtors.
* HOUSING REBOUND ENCOURAGES JOB MOVES: Homeowners are feeling free to move where the jobs are, Reuters reports, as worries about homes that won't sell at a loss begin to fade. Tom: Our local housing rebound, especially new construction, prompts more people to move here for work. This relocating creates a need for additional housing, which keeps perpetuating the positive economic cycle of more jobs, more housing and less unemployment. In our area there is a huge "cause and effect" between the housing market and jobs.
* INVESTOR ACTIVITY: The country now has an all-time high level of investor activity, reaching 30% of all home re-sales, and up to 45% in the hotter markets, like Florida.
* CASH PURCHASES: Realty Trac reports that all-cash purchases made up 30% of U.S. home sales in June, with Cape Coral/Ft Myers having an astounding 70% of cash transactions, the highest percentage in the nation. Miami (62%), Sarasota (59%) and Tampa (58%) had the next highest percentages of cash sales.
* IMPORTANCE OF GOOD SCHOOLS: 44% of homebuyers across the country are willing to pay up to 10% more for a community with highly rated schools.
* IMPORTANT CORRECTION: Recently I have been reporting that August 2010 was the month that Cape Coral/Ft Myers hit the bottom of the market. I've recently found out that December 2010 was the official trough. Although there are only four months and a few thousand dollars difference, it's very important to me that I report accurately to my clientele. I apologize for the misinformation.
Client Question of the Month
Client: If Florida is supposedly recovering from the real estate slump ahead of the rest of the nation, why does the state still rank #1 in the country in foreclosures?
Tom: In my opinion there are two key reasons:
1. All of Florida is not equal. The mid and northern sections of the state are now experiencing much higher foreclosure rates than South Florida, thus increasing the state's overall foreclosure rate. South Florida is almost its own separate entity, due to warmer weather, more tourists, and more second homeowners than the northern part of the state. The northern two-thirds of the state is more in line with the rest of the U.S., and lags a few years behind South Florida.
2. Florida's court process for completing foreclosures is one of the lengthiest in the nation, often taking one and a half times longer than most other states
* Citizens of India Buy $3.5 Billion in U.S. Real Estate in One Year
* Florida Home to 7 of the top 15 Retirement Cities
* Marketing To Baby Boomers? Sell Low Taxes
* Adjustable Rate Mortgages Make a Big Comeback
* Some Homeowners Still Uncertain of the Market
We hope everyone enjoys what remains of the summer and we're wishing for all of you, a great Labor Day spent with family and friends.
Topics: Summer Weather Heats Up - Real Estate Sales Remain Hot-Number of distressed sales has been greatly reduced - Only 11 Weeks of Inventory left l
Topics: Cape Coral/ Fort Myers Home Inventory Under 3 Months - Lot Loans Available Again After Long Absence - SWFL Seasonal Rental Market Is Very Strong
Topics: Vacation Season Ends- But Not R.E. Buying Season- Gulf Access Lot Prices up 83% in One Year- Bidding Wars Are Back
Topics: Best Local Real Estate Year in 7 Years? - Seasonal or Annual Rentals - Which is better for Owners? - Construction Labor Shortage
Topics: Short Sales vs Foreclosures - Major CC Gov't Happenings - Future Appreciation in SWFL