Welcome to Southwest Florida, a paradise where sun-kissed beaches, vibrant wildlife, and charming towns await your exploration. Whether you’re a nature enthusiast, a history buff, or simply looking for a relaxing getaway, Southwest Florida has something for everyone and is renowned for its stunning beaches. From the powdery white sands of Sanibel Island to the tranquil shores of Naples, you’ll find the perfect spot to unwind. For those who love the great outdoors, Southwest Florida offers a plethora of activities. Explore the Everglades on an airboat tour and witness the unique ecosystem up close. Kayak through the mangroves of Estero Bay or hike  the trails at Lover's Key State Park for a chance to see dolphins and/or manatees. Step back in time with a visit to the Edison and Ford Winter Estates in Fort Myers. These beautifully preserved homes offer a glimpse into the lives of two of America’s greatest inventors, Thomas Edison and Henry Ford. The estates feature lush gardens, a museum, and Edison's original laboratory. 

Southwest Florida is a food lover’s paradise. Enjoy fresh seafood at waterfront restaurants in Fort Myers Beach or indulge in gourmet dining in Naples. Don't miss the local farmer's markets where you can sample fresh produce and artisanal goods. 

For a bit of retail therapy, head to Fifth Avenue South in Naples, where you’ll find an array of boutiques, galleries, and cafes. Southwest Florida is a destination that truly has it all. Whether you’re seeking adventure, relaxation, or a bit of both, you’ll find it here. So pack your bags and get ready to discover the magic of Southwest Florida!

Cape Coral/Lee County June Home Prices Drop Again

As we’ve been projecting for a few months, Cape Coral and Lee County are experiencing the summer home price doldrums. MLS stats indicate that prices will likely drop a bit more in the next few months before high-season and  interest rate decreases arrive. Cape Coral home prices are getting close to the $453K low mark of this new cycle.

Bank of America: Housing Market ‘Stuck’ until at least 2026

The bank said home prices will stay high and go even higher and the housing shortage will persist. And mortgage rates may not fall much – even if the Fed finally delivers long-delayed interest rate cuts. Home prices spiked during Covid-19 and then the Fed’s war on inflation sent mortgage rates surging. 

The one-two punch has made it an historically unaffordable time to buy a home. The median price of a previously owned U.S. home climbed in May (and June & July) for the 11^th month in a row to a record $419,300 – up 6% from a year earlier. B of A expects home prices will climb by 4.5% this year and then by another 5% in 2025.

One other major problem keeping inventory low is the “lock-in-effect”, homeowners with a low interest rate who are unwilling to give up that appealing rate. B of A feels that the “lock-in-effect” could persist for eight years. And because those homeowners aren’t moving, the supply of existing homes on the market is limited. Tom: The silver lining of the lock-in-effect is that it is keeping inventory somewhat at bay, thus avoiding a severe price crash similar to the mid-2000s. 

Fort Myers in Top 3 Florida Cities to Buy in Next 5 Years

According to a Real Estate Agent survey conducted by GoBankingRates, Fort Myers is one of the top areas where Florida homebuyers should purchase property in the next five years. 

Not too long ago, Fort Myers/Cape Coral had a reputation for being retirement towns. However, the cities have shifted to offering more diverse activities, including recreation, dining and cultural sightseeing, to attract an increasingly younger demographic. According to U.S. News & World Report, the median age of a Fort Myers resident is 45 years old. 

Compared to cities like Miami, there’s a lot of land still available in Fort Myers/Cape Coral for residential development. And, it’s a less expensive alternative than pricier cities in SWFL like Naples or Marco Island. Jenna: Home prices in SWFL are as low as they've been in several years. We're here to help you purchase a home at these favorable prices. 

America’s Renter Population is Growing

Redfin: The number of renter households in America grew 1.9% year over year in the 2^nd quarter to a record 45.2 million. That’s over three times faster than the number of homeowner households, which grew .6% to a record 86 million. 

Renter households have formed faster than homeowner households for three straight quarters partly because home buying costs have risen much faster than rents. Nationwide, just over one-third of households in the U.S. are renter households – a figure that has remained fairly steady over time. 

The median apartment asking rent increased less than 1% year over year in June, while the median monthly mortgage payment jumped roughly 5%. America still faces a housing shortage, but the recent boom in multifamily construction has helped narrow the gap. Multifamily building completions are at historic highs because many projects started during the pandemic housing frenzy are just now being finished. 

Tom: The abundance of new Cape Coral/Fort Myers apartment developments in the last few years has contributed to tamping down home prices. Fortunately, we're seeing a decrease in the number of complexes being completed, and they are not being rented as quickly, or for the high rental prices they were getting a few years ago. 

Facts & Stats and Tom’s Musings

New technology is Cleaning Waterways in SWFL: A company called Clean Earth Rovers is using water-cleaning robots to clean fish kills, red tide, oil spills and algal blooms. The ‘Roomba’ for waterways will clean a spill event in 40 minutes that used to take 4 to 6 hours.

There are currently six Clean Earth Rovers in Florida, but talks are in progress with more companies and municipalities. 

Florida Remains Top International Buyer Preference: Fla. continued to be the top selection for international buyers, with 20% of that buyer market. At 13%, Texas ranked second, and California was the remaining state with triple digits at 11%. Canada, China, Mexico and India were the top international home buyers. 

The number of homes purchased by international buyers dropped 36% from 2023 and the lowest number since tracking began in 2009. Despite the decrease in number of sales, the average home purchase price of $780,300 was the highest ever recorded. 

Florida Dominates for First-Time Buyers: A new WalletHub survey found Florida is home to six of the top 10 cities for first-time buyers, and Cape Coral was the 2^nd ranked city for newbie buyers. Nine Fla. cities ranked in the top 20. The survey looked at 300 cities using 22 key metrics, including home prices, taxes, and crime rates. 

How Low Must Rates Go to Break Lock-In Effect? Nearly 50% of existing homeowners said rates need to drop below 5% to feel comfortable buying a new home. Six out of 10 current mortgages have rates below 4%. Redfin expects rates to only decline to about 6.6% by the end of this year. Lisa: Can we expect rates to hit that magical 5% sometime in 2025? We can only hope.

Be Safe: Our team hopes you and your families experienced minimal impact from Hurricane Debby, and may we be so lucky that it was the last one to visit us for at least the rest of this year.

The National Association of REALTORS® (NAR) recently reached a groundbreaking settlement that could significantly impact home buyers and sellers. Under the settlement, NAR will no longer require sellers to pay buyer agents’ commissions when selling their homes. This practice, which has been around for nearly a century, will change, as buyers may now be required to pay the buyer’s agent/brokerage’s compensation. 

Offers of compensation between real estate professionals are no longer allowed on MLS platforms so buyers must now enter into written agreements with agents before touring a home. These agreements must include clear details about compensation, ensuring transparency for consumers.  However, sellers can still offer compensation outside of an MLS. Negotiations between buyers and sellers may become more intricate as buyers and sellers will need to discuss compensation directly, leading to various outcomes and potentially slowing down the selling process. 

Remember, NAR has not admitted to any wrongdoing, and the settlement aims to enhance transparency and empower consumers in real estate transaction. Time will tell.  

Buyers face challenges in any market and today’s is no different. With higher mortgage rates and rising prices there’s a lot to consider.

But, there’s one way to avoid getting tripped up – and that’s leaning on a real estate agent for the best advice. An expert’s insights will help you avoid some of the most common mistakes homebuyers are making right now.

Not Having Your Pre-approval In Hand

As part of the home buying process a lender will look at your finances to figure out what they’re willing to loan you for your mortgage. This gives you a good idea of what you can borrow so you can really understand the financial side of things before you start looking at homes. While house hunting can be a lot more fun than talking about finances, you don’t want to do this out of order. Make sure you get your pre-approval first. 

Perfection?

While you may have a long list of must-haves and nice-to-haves, you need to be realistic about your home search. Even though your ideal state is you find a home that checks every box, you may need to be willing to compromise. Plus, a home that has everything you want may be too pricey. 

Buying More House Than You Can Afford

With today’s mortgage rates and home prices, there’s no arguing it’s expensive to buy a home. And while it may be tempting to stretch your finances a bit further than you’re comfortable with to make sure you get the house, you want to avoid overextending your budget. 

Not Working with a Local Real Estate Agent

This last one may be the most important of all. Buying a home is a process that involves a lot of steps, paperwork, negotiation, and more. Rather than take all of this on yourself, it’s a good idea to have a pro working with you. The right agent will reduce your stress and help the process go smoothly.

Bottom Line

Mistakes can cost you time, frustration, and money. If you want to buy a home in today’s market, be sure and find an experienced local real estate agent so you have a pro on your side who can help you avoid these missteps.  Lisa and Jenna would be happy to assist you in buying or selling. Please contact Lisa at 239-292-2479 or Jenna at 239-851-3744.

May Cape Coral/SWFL R.E. Market Steady

“Steady as she goes” is the message for this month. Cape Coral prices remained about the same as April 2023, and although Lee County experienced a drop in the number of sales, the average price increased by 3% over April, 2023. 

                                                Cape Coral April 2023 vs. April 2024

                                      Lee County April 2023 vs. April 2024

Cape Coral Gulf Access Homes: Mar = 99 Gulf Access Sales, Avg Price: $905,000

                                                  Apr = 100 Gulf Access Sales, Avg Price: $998,000

Cape Coral $1M+ Homes: Mar = 28 $1M+ Sales, Avg Price: $1,441,000   Highest: $2,550,000

                                         Apr = 42 $1M+ Sales, Avg Price: $1,445,000    Highest: $3,100,000

Inventory: Cape Coral inventory remained at 5 1/2 months for the 2nd month in a row. Additionally, there are now less than 2,800 C.C. homes available for the first time in many months. 

Notes: C.C. $1M+ homes had a nice spike in the number of sales from 28 in March to 42 in April. Gulf-Access home prices increased by $93,000 month-over-month. Although we are still a long way from the gangbuster days of a few years ago, the C.C. and Lee County real estate market is certainly not in a freefall as some reports would suggest. 

Cape Coral is #11 Fla. Affordable ‘Hidden Gem’

Retirement Spot in the U.S. South

GoBankingrates.com recently published a report on under-the-radar destinations in the South that are perfect for retirees, and the list includes 11 places in Florida. To compile the list, the website looked at one hundred of the most populated communities in the South to retire. Cities were ranked based on factors such as violent crime, monthly expenses for residents 65 and over, and the percentage of seniors from the general populations.

With its sunny weather, beautiful coastline, tax-friendly policies, and large senior population, Florida remains one of the top states to retire. However, as real estate prices, inflation, and interest rates have soared nationwide in recent years, certain Sunshine State communities have become too expensive for retirees.

Although 2.6% higher cost of living than the national average, our very own Cape Coral still made #11 on the list of the best “hidden gems” communities to retire based on the following:

·         Monthly Expenditures: $1,942

·         Violent Crimes per 1000 residents: 1.44

·         Population of residents 65+: 24.37%

·         Livability Score: 77  

Jenna: We love our wonderful retiree clients. They compose a high percentage of our business.

Tips for Finding the Right Home

The best way to start a home search is by keeping a top 10 list of essentials, as well as deal breakers. Also, consider your lifestyle, pets and necessary features, among other things. Here are some other additional factors to consider when looking for the right house:

Budget: including mortgage payments, taxes, insurance, and maintenance costs

Location: Proximity to schools, work, amenities, safety, and neighborhood vibe

Size & Layout: Think about the number of vehicles you have and overall layout & flow

Condition of the property: Is it move-in ready or in need of renovations or updates

Future Needs: Can the home accommodate a potential growing family or aging in place changes

Resale Value: It usually takes more work to sell a house bigger or smaller than the typical house in the neighborhood

Home Features: List specific features you desire

Home Inspection: Plan to have a professional home inspection before finalizing the purchase to uncover any potential issues with the property

Despite a National Housing Shortage

Florida & Texas Have Too Much Supply

Redfin reports that a lack of housing has fenced off most U.S. would-be buyers, but two states are dealing with the opposite problem – an overflow of homes. Florida and Texas accelerated construction to take advantage of pandemic-era demand. But, serious spikes in construction costs, interest rates and insurance costs have caused many new homes to linger on the market and burden inventory

Cape Coral and North Port, Florida saw the country’s biggest surge in homes for sale, with volumes up about 50% from a year ago in March. Fl and Texas have been building more homes than any other part of the U.S., and of the country’s 10 metros where sellers are most likely to reduce listed prices, seven are in these two states.

Nationally, a shortage of homes has pushed the median U.S. sale price up 5% year-over-year to $420,400. That’s only 3% below a record-high median price of $432,500.

Facts & Stats and Tom’s Musings

Millennials Moving to Golf Communities: Before the pandemic, golf communities were seeing a decline in interest. Now, millennials, those born between 1981 and 1996, are increasingly moving to private golf communities, even if they don’t play golf. Perks like more space and privacy, lower cost than living in the city, fitness centers, pools, sports facilities, in addition to the golf course are all very appealing to millennials.

Prices Top Location in Dream Home Purchase: A national survey showed 39% of homeowners plan to move. 56% of prospective buyers prioritize price and 50% prioritize location. The No. 1 region of the country selected by consumers as their ideal location was the South, particularly Florida. 

56% believe the real estate market will remain stable or improve this year, and 39% said they plan to move to a different city, compared to 19% of consumers who said the same in 2022.

Buyers Preference Shifting to Smaller Homes: Homebuyers are increasingly looking to build smaller, more affordable homes. The average size of a new-build home in 2023 fell to 2,411 sq ft, the smallest size since 2010. The median price of new homes in 2023 was $428,200, down 6% from 2022. Lisa: Ever since interest rates spiked, we noticed a desire for smaller, less expensive homes, although the $1M home market in C.C. seems to now be in high demand.

Fort Myers #3 ‘Best Place’ To Start a Small Business: WalletHubcompared the business friendliness of more than 1,300 small-sized cities. There were 18 metrics ranging from growth rate of the number of small businesses to investor access and labor costs. 

Fort Myers has one of the highest numbers of investors per capita in the country, and is in the top 100 cities for office-space affordability, and for the number of startups per capita. These small-business metrics earned Fort Myers an impressive #3 ranking in the entire country.

U.S. Housing Supply Short 7.2M Homes: Realtor.com reports that despite the recent uptick of new construction, single-family home construction is lagging behind the need. This is a result of underbuilding relative to population growth. Tom: Overbuilding of apartments in Lee County, especially in Cape Coral, is heavily responsible for the sales#/price stagnation of homes…and greatly contributing to frustrating traffic. 

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As summer arrives, many boaters eagerly take to SW Florida waters. However, with increasing boating traffic, it is important to be aware of the rules for everyone’s safety.  Here are some essential tips for navigating your vessel while staying safe.

Plan Ahead Be Prepared:

Before heading out on the water, plan your trip carefully. Check the weather forecast and be mindful of any potential changes in conditions throughout the day. Ensure your boat is properly equipped with all necessary safety gear, including life jackets, fire extinguishers, and distress signals. Let a friend or family member know your intended route and expected return time.

Keep a Lookout:

With increased boating activity, keeping a lookout for other vessels, swimmers, and obstacles in the water is important. Scan the horizon and stay a safe distance from other boats, especially in busy waterways. 

Follow Customary Boating Rules:

Following navigation rules is crucial for maintaining order and safety on the water, especially during times of high boating traffic. Familiarize yourself with the “rules of the road/water” for boating, including right-of-way rules, speed limits, and navigation markers. Be courteous and respectful to other boaters. Be sure and yield to larger vessels and/or emergency vehicles.

Watch Speed:

In congested areas with heavy boating traffic, you must reduce your speed and maintain a safe distance from other boaters. Slow down when approaching marinas, docks, or swimming areas, and be prepared to maneuver your boat at a moment’s notice to avoid collisions or accidents. Watch for kayakers and other smaller watercraft, and give them plenty of space to navigate safely.

Stay Sober and Alert:

Captaining a boat under the influence of alcohol or drugs is illegal and extremely dangerous. Alcohol increasing the risk of accidents on land and water. 

As boating activity increases during the summer months, it’s so important to follow the rules and be aware while on the water. By planning, keeping a sharp lookout, following navigation rules, reducing speed in crowded areas, and staying sober and alert, you can enjoy boating while minimizing the risk of accidents. 

Cape Coral/SWFL March R.E. Prices Steady – Inventory Drops

If the past few months are any indication, Cape Coral and Lee County real estate seems to be back on track. As you’ll read in the charts below, C.C. home prices equaled last March’s price, as did the number of sales. Home sales and prices far exceeded this cycles’ low point in December.  Based on MLS Pending Sales numbers I expect this positive trend to continue.

                                             Cape Coral March 2023 vs. March 2024

                                    Lee County March 2023 vs. March 2024

Cape Coral Gulf Access Homes: Feb = 73 Gulf Access Sales, Avg Price: $970,000

                                                       Mar = 99 Gulf Access Sales, Avg Price: $905,000

Cape Coral $1M+ Homes: Feb = 27 $1M+ Sales, Avg Price: $1,500,000   Highest: $3,300,000

                                             Mar = 28 $1M+ Sales, Avg Price: $1,441,000   Highest: $2,550,000

C.C. Inventory: In the course of a few months, available homes in the Cape went from a several-year high of 10 months in January to 7 months in Feb, and surprisingly, down to 5½ months in March. Although I anticipated a drop in inventory, I didn’t expect it to be this significant over such a short time span. IMO, it won't drop any lower until interest rates fall. 

National Study Finds 7 Fla. Cities ‘Up and Coming’ Hotspots

Fort Myers Makes the Top 10 Small Town Shortlist

Looking for that small town sense of community without giving up the perks of living in a city-like environment? Then a small city is exactly what you’re looking for. A small city has a population between 63,000 and 100,000, according to MoneyGeek. 

MoneyGeek set out to determine the top small up-and-coming cities that are the most promising for financial growth. They analyzed 211 small U.S. cities based on median household income, unemployment rate, population growth and the average annual GDP growth.

Florida walked away with seven cities in the top 10, thanks in part to their strong population growth. Fort Myers took the 8^th top spot in the country, with a median household income of $62,981, unemployment rate of 3.1%, an Average Annual GDP Growth of 4.3%, and an impressive 5-year population growth of 20%. Lisa: At the rate Ft Myers is growing it won’t be long before it is not considered a small city.

$4B Everglades Restoration Underway

The restoration effort in the Everglades is the largest hydrological restoration project ever undertaken in the U.S. and aims to improve the water supply and increase flood protection. The natural flow of the Everglades has been degraded by farming, road projects and land development, resulting in flooding of some areas, drying out of others, and hypersalinity in Florida Bay, which has killed off crucial seagrass areas of Everglades National Park.

On Jan. 25, Gov. Ron DeSantis joined the South Florida Water Management District at a ceremony to begin filling the EEA Reservoir’s stormwater treatment area, a critical component to restore the natural southward flow of clean water The 6,500-acre stormwater treatment area, or STA, located adjacent to the reservoir, will filter harmful nutrients from the water flowing from Lake Okeechobee and increase freshwater flow to the Everglades and Florida Bay. The process will also reduce the harmful discharges from Lake O to the state’s east and west coasts. 

Groundbreaking on the 10,100-acre reservoir commenced in 2023, and the project is expected to be completed in 2030. Safety testing will follow, with the hope that the water will begin its southern flow by around 2032. Tom: Although we all wish that cleaner water would be sent our way sooner, it’s a little encouraging that the project is finally in the works.

Cape Coral Yacht Club Design Approved by Council

The city council were presented with three design options for the community center for the future Cape Coral Yacht Club. The first option had a “Key West, old Florida” architectural style, the second option was based on the existing Yacht Club building, and the third option was a contemporary architectural design.

It was a close decision between the first and second option, with a final 5-3 majority choosing to go with the Key West option, and the cost of that option might be lower than the other two. Some Cape residents expressed concerns about the parking garage, cost of the project and source of funding for the project. 

The city does not have an exact number for how much the new Yacht Club will cost, but current estimates are between $60 and $90 million. YIKES!

Is a Fixer-Upper Right for You?

Homes that are fixer-uppers might be a great deal but require a lot of time, patience, and skill. Before deciding on a fixer-upper, consider all the factors that go into home renovations:

Your financial budget: Costs of renovations usually exceed initial estimates – sometimes substantially

Lifestyle and preference timeline: If you need to move in immediately, a new home is your best bet

Tolerance for disruption: Living in a home while renovating can be stressful and disruptive

Personal skills: Do you have the personal skills to take on some of the DIY projects?

Investment Potential: Homes that are renovated can be sold for a significant profit, depending on the market and extent of renovations. This is not without risk, as market conditions can change and renovation costs can escalate

Resale value: Consider the appreciation value of a remodeled property

Buyers Could Be Alerted to Flooding Before Purchase

The Florida legislature passed the first flood disclosure bill in state history. If signed into law by the Governor, it would reveal some - but not all – flood risks of a potential home. Buyers would be able to find out if the property they’re considering has made any flood insurance claims or received any federal aid for flood damage. 

Currently, Florida does not explicitly require sellers to tell buyers about the flood history or flood risk of their property in the same way it requires disclosure about sinkholes or lead paid. Instead, sellers have a catchall on the disclosure for anything else important buyers should know, and in recent years, sellers had the option to fill out a voluntary flood disclosure form. This often leaves buyers in the dark. And suing someone for lying on the disclosure form doesn’t always work out.

This bill is supported by Florida Realtors, and if signed by the governor would kick in October 1. 

Facts & Stats and Tom’s Musings

Which States Have no Income Taxes: Seven U.S. states currently have no income tax whatsoever: Florida, Alaska, Nevada, South Dakota, Texas, Washington and Wyoming. Tennessee and New Hampshire only tax interest and dividend income. 

DeSantis Signs bill Targeting Home Squatters: A law (HB 621) goes into effect on July 1 which allows property owners to remove an unauthorized person from their property. Squatters can face harsh penalties, including first-degree felony for trying to sell or rent a property without authority or ownership, and a 2^nd-degree felony for staying or trespassing in a home and causing over $1,000 in damages.

Naples & Cape Coral/Ft Myers Among Top 10 Cash Home Buyers: In January, 32% of U.S. home sales were all-cash buyers, marking the highest rate since 2014, according to the National Association of Realtors. Naples ranked 2^nd highest in the U.S. with 59%, and Cape Coral-Ft Myers came in #8 with 52% all-cash buyers. Vacation-home buyers and real estate investors made up the bulk of all-cash buyers over the last six months

Top Factors that Influence a Home’s Appreciation:

·         A smaller home – when interest rates are high buyers tend to choose smaller homes

·         It’s in an up-and-coming neighborhood

·         It has an appealing exterior

·         The land itself has value – waterfront or scenic area improves chances of increased value

Luxury Market Sees Bounce: Recent gains in the stock market have driven a surge in the luxury market. At the same time, other potential buyers are still on the sidelines due to high interest rates. 

Renters Would be Happier Owning a Home: 70% of renters say owning a home would make them happier, yet 60% say it’s out of reach, a new study found. At the same time, 90% of owners say they’re happier since buying a home. Jenna: 90% is a pretty telling statistic in favor of homeownership.

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