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. 

- Ideal Floor Plan Essentials

- 20 Tools For DIY Homeowners

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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.

~ What Every Buyer Should Know About Closing Costs

~ Questions To Ask When Searching For A Lender

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February Was A Solid Month for Cape Coral Real Estate

 

High-season has brought good news for the SWFL real estate market. Home prices rose from February 2023, and most importantly, inventory dropped significantly from the decade's high number in January. The charts below are most encouraging for our local market. 

On the caution side, insurance and property taxes continue to be buyer’s major obstacles. I expect insurance prices to ease up as several new insurance companies are gradually entering the state later this year.  

                                Cape Coral February 2023 vs. February 2024

                                     Lee County February 2023 vs. February 2024

Inventory: Available homes for sale in the Cape dropped from 10 monthssupply in January down to a more neutral 7 1/2 months. This was a strong indicator. 

Cape Coral Gulf Access Homes: Jan = 61 Gulf Access Sales, Avg Price: $915,000

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

 Cape Coral $1M+ Homes: Jan = 17 $1M+ Sales, Avg Price: $1,526,000   Highest: $3,420,000

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

Notes: Although the Cape Coral home prices were only up by 4% from last February, it was a significant hike from December’s low price point of $454,000. I expect prices to remain above the $500K mark for the foreseeable future. Lee County’s prices in Feb were neutral from last Feb, but also up from the low point of $547K in December.

Note the significant jump in C.C. sales of both Gulf-Access and $1M+ home sales, a traditional spike each high season. 

Cape’s Crystal Lake Park Has Broken Ground

   Rendering CapeCoral.gov

The $9M park project in Northwest Cape Coral broke ground on February 23. Construction is expected to take approximately a year (Spring of 2025) and will offer a new beach and much more. Cape residents are excited about the new park.

Features of the park will include:

ÕA beach surrounded by a 45-acre lake        ÕRestrooms

ÕPicnic shelter                                            ÕScuba diving area

ÕSun shelters                                             ÕFitness stations

ÕHill overlook                                             ÕA boat launch that connects to canals

ÕA kayak launch that connects to canals       ÕPaved parking stalls

ÕBoat trailer parking stalls                           ÕA 10’ wide multi-use path

ÕA 6’ wide walking path                               ÕAn emergency boat launch

ÕGrass parking spots                                   ÕOverflow parking area

Fla. Ranks 2^nd Best Small Business State

SimplifyLLC: Florida ranks No. 2 as the best state for entrepreneurs and small businesses in the U.S. in 2024. Coming in just behind Texas, Florida was No. 1 for net influx of educated workers, No.6 for job creation (12.7% increase), and No. 15 for consumer spending, which rose by 3.4%.

The study considered six key factors to determine the rankings of states and their level of small business development, including corporate tax rates, inflation, migration of educated workers, new business formations, job creation and consumer spending. According to the U.S. Small Business Administration, more small businesses were launched in the nation in 2023 than ever before, with 5.5 million new small businesses created last year. 

Lisa & Jenna: We’ve always known that Florida is a wonderful place to live, but it’s also a great place to start a small business. We see new business start-ups almost every week in our area. 

Sales of $100M+ Homes Are Skyrocketing

                                                     Photo Source Redfin

Sales of homes that exceed $100M are skyrocketing, with Florida taking a leading spot in megadeals. In the last four years, about 24 homes nationwide sold for $100 million or more, which is 20 years after the first $100 million home sale.

The number of megadeals in the U.S. has significantly increased, as the median sale price of luxury homes rose 75% to $1.14M in 2023, according to Redfin. Between 2011 and 2020, 19 homes sold for $100 million or more, compared to 22 megadeal homes sold between 2021 and 2023. Tom: I’m showing my age by admitting that I’ve been in the business so long that I actually remember when a million-dollar home was a very big deal. Now that's simply a starting point in many communities. 

Facts & Stats and Tom’s Musings

30% of FL. Homes Fully Paid Off, Above U.S. Average: In Florida, housing costs as a percentage of income with and without a mortgage stands at 21% and 10%, respectively. Nationally, just 27.7% of owner-occupied homes are paid off. 

Are New Starter Homes Becoming Smaller? As home affordability continues to challenge buyers, builders are now testing the market for smaller, more affordable homes - some just 400 square feet. So-called “tiny houses” are popular among retirees and minimalists who are looking to simplify their lives while still owning a home. In the last five decades, home buyers are increasingly couples without children, singles and empty nesters, rather than families with three or more children.

Florida’s Single Women Lead in Homeownership: More than 14.5% of homes in Florida are owned by single women, compared to 10% by single men, according to Axios. Florida has the fifth-largest share of single-women homeowners in the nation.

Lego-Style Bricks Used to Build Apartments: Interlocking bricks made from recycled glass, recycled plastic, resin and stone have been used to construct 100 apartments in Palm Springs, Ca. Eight weeks and 11 people were all that were needed to complete the apartment project which was finished off with traditional stucco. The only tools required were a rubber mallet and a glue gun, and the materials are rated to withstand a Category 5 hurricane.

Wall Street Sees a Solid Year for Homebuilders: According to the Commerce Department, sales of new homes rose nationally in 2023 for the 1^st time in 2 years, up 4.2% from 2022. Housing market trends are shaping up in favor of a solid 2024 for U.S. homebuilders – as long as mortgage rates don’t jump back to the highs they hit late last year. 

*Life Changing Events That Move The Housing Market

*Why Pre-Approval Is Even More Important in 2024

Please click here to read our blog

Good News/Bad News: Cape & SWFL Home Prices Soar

But So Does Inventory

As projected last month, C.C. and SWFL home prices took off in January after a dismal, cycle-breaking low in December. As you'll read below, even with MLS stats to help guide me, I did not expect this big of a jump in January prices over December's. Nor did I anticipate such a rise in inventory, which typically translates to lower prices, not higher prices. 

 

If you’re scratching your head, I’m right there with you. As longtime clients know, inventory and prices almost always go in opposite directions. The only possible explanation for the abnormality of rising prices at the same time as inventory is also increasing is that we are entering “high-season”, combined with a drop in interest rates. 

 

                                                  Cape Coral January 2023 vs. January 2024

	Jan 2023	Jan 2024
Cape Coral	326 Sales     $489,000	269 Sales     $530,000                       +  8 %

 

 

                                    Lee County January 2023 vs. January 2024

	Jan 2023	Jan 2024
Lee County	887 Sales     $573,000	749 Sales     $634,000                                 +  10 %

 

 

Cape Coral Gulf Access Homes:  Dec: 42 Gulf Access Sales, Avg Price: $908,000

                                                    Jan: 61 Gulf Access Sales, Avg Price: $915,000

 

Cape Coral $1M+ Homes: Dec: 12 $1M+ Sales, Avg Price: $1,422,000              Highest: $3,300,000

                                          Jan: 17 $1M+ Sales, Avg Price: $1,526,000 (+ 7 %) Highest: $3,420,000

 

Although I can't say for certain that prices over the next few months will be at January’s level, I fully expect that December 2023 is truly the lowest point of this current cycle, at least for the next several months.

 

Inventory: Available homes for sale in the Cape rose from 7 months in Nov & Dec to 10 months in January. This is the highest inventory in C.C in several years. 

 

Notes: Cape Coral home prices in January were a whopping 19% higher than December's prices. Notice that both C.C. and Lee County had significant year-over-year price jumps, but fewer sales. It will be interesting, surprising, and unusual if this trend continues. It's my expectation that inventory will slowly recede over the next several months, which will put added pressure on prices. 

 

Real Estate Trends: What’s in Store for 2024

Florida Realtors Chief Economist, Dr. Brad O’Connor: “Watch for the state market to reignite over the next several months. We have weathered the worst of it.” O’Connor believes that the Florida real estate market will slowly start growing this year as interest rates flatten and consumers begin realizing what they’re seeing is the new normal in prices and interest rates.

 

Florida saw almost $200 billion in closed sales in 2023, which wasn’t far off from 2022, a super-strong sales year post-pandemic. Mortgage rates have likely peaked, and there’s a very good possibility that the Fed could begin cutting rates in the coming months – and that could reinvigorate buyers. O’Connor speculated a cut below 6% could be in the forecast with the first relief possibly coming in May. 

 

A few of the factors buffering Fl. real estate from some national economic trends:

 

* The state’s labor market is strong. (Paychecks are still coming in)

* Florida’s population growth remains strong at about 1,000 new people a day

* The state is still attractive to “untethered” remote workers

* Retirees with home equity looking to relocate are unfazed by high interest rates 

 

Six New Insurance Companies Coming to the Sunshine State

At the start of the 2024 legislation session, state leaders touted six new private insurance companies have entered the state’s insurance market, as a sign things are slowly turning around. Companies will start writing new policies in the first quarter of this year. 

 

Citizens, the state-backed insurance carrier of last resort, will transfer 76,000 policies to private insurers this month, and 338,000 policies by the end of the year. On December 31, 2023 Citizens had 1,228,718 policies or about 18% of Florida’s insurance market. 

 

Mark Friedlander, spokesperson for the Information Insurance Institute, states “These companies will be providing insurance products for consumers and giving homeowners choices, something we haven’t seen for years”. “We were told these companies weren’t going to jump in before hurricane season ended.” Jenna & Lisa: As insurance is the single biggest sales obstacle facing us today in SWFL real estate sales, even more crucial than interest rates, these new insurance companies bring a huge sigh of relief to buyers as well as existing homeowners.  

 

Could Multigenerational Housing Help Supply Issues?

At a recent National Association of Realtors panel, industry experts said that when multiple generations live together, it can help address affordability concerns and homeownership gaps. A panel member began the discussion with the topic of the pandemic and the years following when many families chose to move in together. Trends of elderly parents moving in and younger people staying home longer grew, and so did the prevalence of multigenerational housing.

 

Intergenerational living or multigenerational living is here to stay, and it’s here to stay because it’s being consumer-driven. One member of the panel noted, “we live in a society where there is a stigma that is sometimes associated with multigenerational living, and that it is a burden. But, there’s nothing wrong with a multigenerational household. It’s the future of housing”. 

 

U.S. Real Estate Investors Optimistic About The Future

According to a 2023 Investor Sentiment Survey, 72% of the nation’s real estate investors say the market is as good or better than it was last year, and 75% expect stability or improvements over the next six months. 

 

The high cost of financing was the biggest issue among investors, being mentioned by 76%, while lack of inventory was mentioned by 42%. Most focus close to home: 44% purchase within their hometown, and 79% within their home state. There wasn’t a significant difference in purchase distances between fix-and-flip and rental property investors. 

 

Is Self-Storage the Right Solution?

Self-storage can be a practical and simple solution for homeowners and renters who have too much stuff and not enough space. Such facilities can accommodate individuals in various situations, making this an ideal option for anyone looking to organize their homes without getting rid of their possessions. Some beneficial situations:

·         Organizing a Home

·         Renovating a Home

·         Selling a Home – Tom: I’ve often suggested renting a storage space during the sale period so that a home                                              and/or garage will look bigger and less cluttered.

  

Facts & Stats and Tom’s Musings

FEMA: Roofs Built After 2015 Fare Better: When Hurricane Ian struck SWFL in 2022, homeowners’ roofs built after 2015, when new building codes took effect, experienced significantly lower damages than older roofs. The new building codes require roofs to be attached to homes in a sturdier way and have special coating to prevent water leakage.

 

FEMA’s figures showed 90% of asphalt roofs installed before 2015 were badly damaged, compared to just 28% of those installed or replaced after. Older metal roofs fared a bit better, with 79% of pre-2015 roofs surviving without visible damage, versus just 10% of asphalt roofs.

 

Buyers Gained Purchasing Power with Lower Rates: Redfin said buyers can afford a more expensive home since mortgage rates have dropped from nearly 8% in October. A $3,000 monthly budget will buy a $453,000 home with a 6.7% mortgage rate, compared to the $416,000 home the same buyer could have purchased in Oct with a rate of 7.8%.

 

What Area of FLA. Are New Residents Moving to?  A recent Redfin report showed that more people across the country researched Miami property listings than other metro areas in the U.S. Cape Coral, Tampa, Orlando, and North Port/Sarasota also made the top ten. 

 

Gen Zers Outpace Others in Homeownership: Most adult Gen Zers are tracking ahead of where their parents were at the same age, likely because they bought when rates were near record lows. 

 

Redfin reports that a decline in rental prices means Gen Zers can put more money toward savings for a down payment. Plus, the job market is strong, and career opportunities have become less concentrated in expensive cities during the remote work era, meaning Gen Zers can choose to live somewhere more affordable.

 

 

Redfin: Lock-In Effect Loosening: A growing number of homeowners with low interest rates aren’t waiting to move until rates drop. Sellers understand that rates aren’t dropping back to 3% anytime soon. So, they’re increasingly opting to move into new homes and take on higher interest rate mortgages. The share of homeowners with a rate below 6% has fallen to 88.5%, down from its record high of 93% in mid-2022. 

 

Empty Nesters Lead in Owning Large Homes: Empty-nest boomers own 28% of the nation’s large homes, while millennials with kids own 14%. A decade ago, young families were just as likely as empty nesters to own large homes, but over the past 10 years a larger share of empty nesters now own the bigger homes.

 

These are excellent questions to ask a potential lender when considering a mortgage. It’s crucial to understand the terms, fees, and options available to you. Here’s a brief overview of what each question entails:

1. Popular Mortgages: Lenders often have a few mortgage options that are popular due to competitive rates or flexible terms.
2. Fees: Understanding all fees, including closing costs, is essential to avoid surprises.
3. Negotiability: Some lenders may offer room for negotiation on various costs.
4. Discounts: Ask about potential discounts that could reduce your costs.
5. Private Mortgage Insurance (PMI): This insurance may be required if your down payment is less than 20% of the home’s value.
6. Escrow: Lenders might require an escrow account for taxes and insurance.
7. Bill-Pay Options: Find out how you can make payments, such as online or automatic bank drafts.
8. Mortgage Payment: Typically includes principal, interest, taxes, and insurance (PITI).
9. Recommendations: A lender can suggest suitable mortgage plans based on your financial situation.
10. Loan Servicing: Confirm whether the lender will service the loan or transfer it to another company.
11. Rate Lock-In: Understand the duration of the rate lock and if you can get a lower rate if market rates fall.
12. Loan Approval: The time it takes to get approved can vary by lender.
13. Closing: The closing process timeline can also vary.
14. Prepayment Penalties: Some loans may have penalties for early repayment.
15. Total Payment: Calculating the total amount paid over the life of the loan includes interest and principal payments.

Remember, the answers to these questions can vary widely between lenders, so it’s wise to ask multiple lenders and compare their answers. Please contact us if you're looking for a local lender at 239-851-3744 or 239-292-2479. We are here to help!

Understanding Closing Costs: Closing costs encompass the various fees and charges due at the time of finalizing your home purchase. As outlined by Bankrate, these costs are mandatory payments required to secure legal ownership of a property, such as a house, condominium, or townhouse. The total amount of closing costs can fluctuate based on the home’s sale price and the financing method.

In essence, closing costs are the assortment of fees and dues payable upon the completion of your home purchase. Freddie Mac notes that these costs often cover a range of expenses, including:

• Government recording charges
• Appraisal fees
• Credit report fees
• Lender origination fees
• Title services
• Tax service fees
• Survey fees
• Attorney fees
• Underwriting fees

Estimating Your Closing Costs: Freddie Mac suggests that closing costs generally fall between 2% and 5% of your home’s total purchase price. To gauge what you might need to budget, consider the median home price of $384,500. Applying Freddie Mac’s estimated range, your closing costs could span from approximately $7,690 to $19,225. It’s important to note that these figures can vary if the price of your prospective home deviates from this median value.

Preparing for the Closing Process: Freddie Mac offers valuable advice to prospective homebuyers: Begin your property search by familiarizing yourself with all potential costs, from the down payment through to closing costs. Collaborating with a cadre of reputable real estate professionals can provide you with the expertise needed to fully comprehend the savings required and prepare adequately for the closing process.