On the road to becoming a homeowner? If so, you may have heard the term pre-approval get tossed around. Let’s break down what it is and why it’s important if you’re looking to buy a home in 2024.

What Pre-Approval Is

As part of the homebuying process, your lender will look at your finances to figure out what they’re willing to loan you. According to Investopedia, this includes things like your W-2, tax returns, credit score, bank statements, and more.

From there, they’ll give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac explains it like this:

“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”

Now, that last piece is especially important. While home affordability is getting better, it’s still tight. So, getting a good idea of what you can borrow can help you really wrap your head around the financial side of things. It doesn’t mean you should borrow the full amount. It just tells you what you can borrow from that lender.

This sets you up to make an informed decision about your numbers. That way you’re able to tailor your home search to what you’re actually comfortable with budget-wise and can act fast when you find a home you love.

Why Pre-Approval Is So Important in 2024

If you want to buy a home this year, there’s another reason you’re going to want to be sure you’re working with a trusted lender to make this a priority.

While more homes are being listed for sale, the overall number of available homes is still below the norm. At the same time, the recent downward trend in mortgage rates compared to last year is bringing more buyers back into the market. That imbalance of more demand than supply creates a bit of a tug-of-war for you.

It means you’ll likely find you have more competition from other buyers as more and more people who were sitting on the sidelines when mortgage rates were higher decide to jump back in. But pre-approval can help with that too.

Pre-approval shows sellers you mean business because you’ve already undergone a credit and financial check. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

Sellers love that because that makes it more likely the sale will move forward without unexpected delays or issues. And if you may be competing with another buyer to land your dream home, why wouldn’t you do this to help stack the deck in your favor?

Bottom Line

If you’re looking to buy a home in 2024, know that getting pre-approved is going to be a key piece of the puzzle. With lower mortgage rates bringing more buyers back into the market, this can help you make a strong offer that stands out from the crowd.

December Cape Home Prices Hit a New Low – Inventory Steady

December is typically the least active month of the year for obvious holiday reasons. It was my wrong opinion that December 2022 was going to be the low point in this cycle for Cape Coral home prices. Well, December 2023 prices were $11,000 lower than December 2022, as you’ll read in the chart below.

You’ll also read that inventory held steady at 7 months, almost a neutral level, but significantly higher than the past several years. I’m not sure where inventory is headed now that we are in peak season, but based on MLS data, I can give you positive news that we’ll see a noticeable increase in prices over the next several months. 

                                   Cape Coral Dec 2022 vs. December 2023

                                  Lee County Dec 2022 vs. December 2023

Inventory: Available homes in the Cape remained at 7 months for December

Cape Coral Gulf Access Homes: Nov = 51 Gulf Access Sales, Avg Price: $1,033,000

                                                   Dec = 42 Gulf Access Sales, Avg Price: $908,000 (-14%)

Cape Coral $1M+ Homes: Nov = 14 $1M+ Sales, Avg Price: $1,977,000  Highest $6,000,000

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

                                ---------------------------------------------------------

                            Cape Coral & Lee County 2023 vs. 2022 Sales Stats

Cape Coral Sales 2022: 5,780 Sales, Avg Price: $519,000            Avg 58 DOM

Cape Coral Sales 2023: 5,137 Sales, Avg Price: $491,000 (-6%)  Avg 52 DOM

Cape Coral Gulf Access Sales 2022: 1,073 sales, Avg Price: $969,000

Cape Coral Gulf Access Sales 2023:   810 sales, Avg Price: $895,000 (-8%)

Cape Coral $1M+ Home Sales 2022: 327 Sales, Avg Price: $1,546,000

Cape Coral $1M+ Home Sales 2023: 227 Sales, Avg Price: $1,460,000 (-6%)

                                         ------------------------------------------------

Lee County Sales 2022: 14,864 Sales, Avg Price: $572,000

Lee County Sales 2023: 13,776 Sales, Avg Price: $563,000 (-1.5%)

Note: 2023 prices and sales were down in all Cape Coral & Lee County home categories, but not too drastically considering that 2022 was a fairly strong year, combined with the headwinds we faced this past year from Ian and increased interest rates.

C.C. Ranks in Top 10 U.S. Cities Where Baby Boomers Move To

Boomers are people born between 1946 and 1964, and this generation makes up a substantial portion of the world’s population. SmartAsset examined Census Bureau data for 268 of the largest U.S. cities and ranked them by the rate at which baby boomers moved in 2022.

Boomers comprise almost three out of every 10 people in Cape Coral. Florida unsurprisingly had four of the top ten cities in the country where Baby Boomers are relocating. Cape Coral placed 4^th highest percentage in the U.S., with 6,233 Boomers moving to the city in 2022.

Florida Population Growth Continues, But Easing May be Coming

A recent state report found Fla. with 22.6M residents – 1.61% more than it had a year earlier. But the study also predicts growth will slow over the next several years. The rate is expected to slow to 1.51% in 2024, 1.3% in 2026, and 1.18% in 2028. If that trend were to continue, the annual growth rate could dip below 1% in the 2030s, according to state economists.

In 2022, the 60-69 year-old-age group represented the largest share of people moving to Florida from other states according to the U.S. Census Bureau. The second-largest age group moving to the Sunshine State was people ages 50-59. A representative from Governor DeSantis’ office said “people in the 20–39 year-old age range have consistently not shown the same desire to move to Florida”.Tom: For those of us currently living here, I think we’ll greatly welcome a slowdown of population growth.                              

FSBO Sellers Regret Not Having an Agent

Survey: Sellers who go-it alone are twice as likely to be unsatisfied with the experience – and more likely to say their earlier opinion, “agents are overpaid”, was wrong. More than a third of FSBO’s (for sale by owner) or those selling to an iBuyer, said the process was more difficult than they expected. FSBOs represented only 7% of homeowners. These sellers admitted:

·         43% of buyers distrusted the sellers because they didn’t have an agent

·         40% struggled to understand their contract

·         36% made legal mistakes because they didn’t use an agent

·         They had a longer selling process

·         52% admit to being more overwhelmed, stressed and crying at some point in the process

·         Most glaringly, FSBO’s sold at a median price of $310K last year vs $405K for MLS listed homes Jenna & Lisa: Our team will work hard to eliminate, or at least greatly minimize the ordeals listed in this article, and we’ll assure that you get fair market value for your home. 

Lower Rates to Draw Buyers – Not as Many Sellers

While mortgage rates moving down to the 6.5% range will draw buyers into the 2024 housing market, several economists don’t think it will create a similar rush of sellers who are locked into lower interest rates. 

Forecasts from housing economists put the average mortgage rate somewhere in the 6% range in 2024, down considerably from 7.79% a few months ago, the highest rate in almost 20 years. The projected 6% rate is still about double what the average rate was just two years ago. It appears that interest rates will have to drop below 6% to incentivize homeowners to sell in large numbers.

2023 Lee County Facts & 2024 Predictions 

By our Fabulous Broker Yoselyn Hollow

Lee County Facts:

·         Inventory was the highest in 13 years, and reached a neutral level

·         Sales were lowest in over a decade, and down more than 30% across Lee County

·         11,000 total single family home sales in Lee County

·         New construction made up 18% of all sales in 2023

·         Interest rates more than doubled in one year (3.5% in December 2022)

·         Cape Coral and North Fort Myers prices depreciated for the first time in 13 years. 13 years was a much longer up-cycle than normal. Lisa: let’s hope for the same with this cycle

Lee County Predictions:

·         Overall inventory will continue to rise and sales will improve only slightly

·         Additional inventory will ease the upward pressure on home prices

·         Home appreciation will remain dismal across our market with the only foreseeable exception being the Bonita/Estero area

·         The average 30-year mortgage rate will linger between 6.1% to 7% in the first quarter.

·         If rates fall rapidly, it could create a surge of demand that will reduce inventory, and cause home prices to rebound

·         With a decline in mortgage rates expected, new construction will see a slight uptick this year and inch toward 20% of all home sales

·         Numerous new apartment units will be a major concern for investors in the rental market

Facts & Stats and Tom’s Musings

Cape Coral Completes Caloosahatchee Connect Pipeline: After years of progress, the Caloosahatchee pipeline is ready to bring 12 million gallons of reclaimed water to the Cape every day. The water will be used for irrigation, fire protection and to maintain canal levels, a most welcome improvement for the exceptionally dry season Cape Coral experienced last summer.

Homebuyers’ Median Age Jumps to 49: The median age of folks buying homes is up significantly from 39 two decades ago, suggesting finances play a critical role in homeownership. The National Association of Realtors (NAR) notes that today’s homebuyers are generally older and wealthier. Young Americans are dealing with inflated home prices, higher interest rates and substantial student loans.

Home Buyer Demand Shows Signs of Early Rebound. Redfin Homebuyer Index reports that U.S. homebuyers, encouraged by declining mortgage rates and increased listings, are moving from the sidelines. Redfin also found median sales prices across the country had the biggest increase since Oct. 2022. Jenna: Lee County did not experience the same boost in home prices as the U.S. average.

Nov. Cape Home Prices Increase, But Inventory Keeps Rising

As anticipated, November home prices witnessed a decent jump in prices, in part due to a $6M home sale which you'll read about herein. Inventory rose for the 5th straight month, and it may not be until the mid-to late Q1 2024 that we see a decrease in inventory (a further drop in interest rates will certainly help). 

As December 2022 was the bottom of the SWFL market in the current cycle, starting next month we will report the same month year-over-year comparisons. We'll also have our annual "Timing the SWFL Real Estate Market" report out in January. 

                                                  Cape Coral Dec 2022 vs. November 2023

                                        Lee County Dec 2022 vs. November 2023

Cape Coral Gulf-Access Homes: Oct =  50 Gulf Access Sales with Avg Price of $846,000

                                                   Nov = 51 Gulf Access Sales with Avg Price of $1,033,000

Cape Coral $1M+ Homes: Oct = 12 $1M+ Sales with Avg Price of $1,450,000  Highest $3,250,000

                                         Nov = 14 $1M+ Sales with Avg Price of $1,977,000  Highest $6,000,000

All Cape Coral Price Stats are skewed slightly upward due to the $6M home sale.

C.C. Inventory: Over 7 months of available homes - we are now barely entering a "Buyers Market".

NAR Issues 2024 Real Estate Forecast

National Assoc of Realtors Chief Economist Lawrence Yun looked at the current state of the U.S home market and shared his 2024 outlook. He said home sales will likely decline by 18% once all 2023 numbers are in, and that’s on the heels of a 17% drop last year. These drops are caused by 20-year high interest rates and a lack of available homes.

Yun states, “Pent-up sellers and buyers cannot wait any longer. People will begin to say, ‘life goes on’”. “Listings will steadily show up, and new homes sales will continue to do well” He also noted that international buyers have declined, but once they return to the market, there will be a boost in buying.

Yun believes that the 30-year mortgage rate has crested. He states that the number of home sales will rise by 15% next year, and mortgage rates will hover in the 6 to 7% range by spring, and he anticipates that more sellers and buyers will enter the market. Tom: If Dr. Yun’s projections are proven correct, this will be very encouraging and timely news for SWFL real estate, as winter and spring are our most active sales months.

1 in 3 U.S. Buyers Use All-Cash – Highest Share in a Decade:

Just over 33% of U.S. home purchases in September were made in cash, up from 29.5% a year earlier and the highest share in nearly a decade, according to a report from Redfin.

In Florida, the percentage of cash sales was higher than the national average in all six metros included in the study, ranging from 38% in Tampa to 49% in West Palm Beach. SWFL is typically included in the Tampa metro.

All-cash purchases are making up a bigger piece of the home buying pie for two reasons. Affluent Americans who can already afford to pay cash are more apt to do so in an expensive housing market – and elevated mortgage rates make buying a home in cash and avoiding interest and loan fees altogether more financially appealing.

Florida Islands Named ‘Most Beautiful Places in The State’

The United States is home to all sorts of alluring locations, from jaw-dropping waterfalls to vast deserts to picturesque buildings and architecture. If you’re thinking about visiting these spots, Conde’ Nast Traveler pinpointed the “most beautiful” places in every state. According to the writers, Florida’s most beautiful place is the Sanibel and Captiva Islands! Here’s why this famous pair of islands are worth the visit:

“The sister islands have long drawn visitors with their biking trails, wildlife, and calm Gulf Coast beaches. Sanibel is particularly famous for being the seashell capital of the world. Meanwhile, Captiva is known for its untouched sand dunes and charming seaside hotels”. Lisa: If you needed another reason to love or visit our fabulous area, here it is!

Facts & Stats and Tom’s Musings

1 in 3 Sellers Granting Buyer Concessions: According to Redfin, home sellers gave concessions to buyers in 35% of U.S. home sales during the third quarter of 2023 – about the same as one year earlier but up from 28% two years ago. Jenna: Sellers are more conciliatory in today's market, but we've still been able to bring reasonable buyers and sellers together. 

Miami Luxury Prices Soar as Billionaires Move In: RE investors are building more $50M-plus condos in S. Fla. Demand grows from an uptick in ultra-rich celebrities and business people wanting to call South Florida home. A condo on Fisher Island is under contract for $90M. Billionaire Jeff Bezos is just one of the high-profile names to relocate to South Florida.

NAR Releases 2023 Profile of Home Buyers and Sellers: In the face of high interest rates and rising home prices, the typical home buyer’s income rose 22% to $107K. 32% of buyers were first-timers, and 89% of all buyers used a RE agent. 

First-time buyers averaged 35 years old and repeat buyers were 58 years old. 19% purchased a multi-generational home. The median distance moved was 20 miles, a decline from 50 miles in 2022. The typical home seller was 60 years old and lived in their homes for 10 years before selling. 

Older Condo Woes Make It Harder to Buy/Sell Units: Buyers in some older condos can’t get traditional financing because the associations have made insurance trade-offs as they deal with skyrocketing expenses. This leads to sellers having to sell their condos for a lower price. Tom: I've never been an advocate of buying condos for investment, and am now even less inclined to recommend them. 

Are Stalled Buyer Spending, Saving Differently? - Many frustrated would-be home buyers are deferring their first house purchase due to high home prices and high interest rates. Instead they may be spending more money that would have gone toward a house on home renovations, vacations, college savings accounts, or student debt payoff. 

Tom’s Not That Funny Joke of the Month:  Investor: “I currently have a fortune in the stock market”. His Jealous and Curious Friend: “How did you do that?”.  Investor: “Well, I started out with a much larger fortune”. 

Cape Home Prices Drop – Inventory Rises To “Neutral” Level

Sometimes I wish I was wrong in my projections, but unfortunately, MLS indicators rarely are wrong. We’ve seen the continuing rise in home inventory, which inevitably leads to lower prices. For the first time in over a decade, October’s inventory reached the commonly held “neutral level” of 6 months, which favors neither buyer nor seller. 

On the pricing side, October came within $2,000 of the lowest point in the new cycle, and Lee County dropped $4,000 below the previous low. The only positive I can take from this is that if the C.C. home price was any lower, I would have to start using October as the low-point of the cycle instead of last December. Based on Pending Sales it appears that December, 2022 will remain the low-point of this cycle.

For our existing clients who may be looking to sell soon I have some positive news. First, based on the first week in November, it seems home prices are slightly rising and as I’ve been predicting (hoping I was right), more $1M+ homes are going under contract. Notice the low number of $1M+ homes that sold in October.

I’m no Nostradamus - I have only been projecting what has been the annual norm in SWFL of increased activity and higher pricing as seasonal homeowners and potential waterfront buyers return to the area. Now let's see if the norm holds true this winter/spring. 

                                                     Cape Coral Dec 2022 vs. October 2023

                                           Lee County Dec 2022 vs. October 2023

December 2022 vs October 2023 Sales Stats: The number of Cape Coral/Lee County sales and prices for October were so close to December that we didn’t report the insignificant percentage.

Inventory: As reported above, we’ve reached 6 months of inventory for the first time in many years. Gone are the times when we measured inventory in weeks, and even days not so long ago. The next three months will be very telling as to which direction inventory goes. 

Cape Coral Gulf-Access Homes: 

September: 66 Gulf Access Sales w/Avg Price of $852,000 

October:     50 Gulf Access Sales w/Avg Price of $846,000

C.C. $1M+ Homes: 

September: 18 $1M+ Sales w/Avg Price of $1,336,000 – Highest $2,150,000

October:     12  $1M+ Sales w/Avg Price of $1,450,000 – Highest $3,250,000

This is by far the fewest Cape Coral $1M+ home sales since....I don't remember when!

SWFL/Cape Coral Draw Ample New Accolades

Wallet Hub: Cape Coral Ranks 16^th Safest City in U.S. WalletHub compared over 180 cities across 41 topics, from traffic fatalities to unemployment rates. C.C. was rated the safest city in Florida and 16^thsafest in the country.

Cape Coral: Best Canal City in The Country: Traveling Rauf rated the Cape as the Top Canal City in the U.S. Fort Lauderdale was #2, and St. Augustine #9. Hurricane Ian left Cape canals littered with debris and junk. The city has removed 750,000 cubic yards of debris thus far with a goal of removing all hurricane-related material by the end of 2023.

Lee Among Top 4 U.S. Markets to Watch; Collier One of 3 Counties Drawing Wealthiest Americans: SW Florida is still one of America’s hottest housing spots despite an overall slowdown nationally. 

Insurify, an online insurance agency used permits, population change, and demographic stats from the Census Bureau to rank the 75 most populated metropolitan statistical areas in the U.S. Cape Coral//Ft Myers ranked #4 in the country. 

Collier County, with prices up 88% from pre-Covid to today, was the #3 county to attract wealthy movers in America. Collier County home owners are looking at approximately $250,000 in wealth gain since pre-Covid. Naples is ranked the wealthiest city in Florida.

Redfin: Cape Coral #8 Top U.S. Move-To Hotspot: About one-quarter of homebuyers looked to different parts of the country in the third-quarter of 2023. This is based on a two million home search conducted by Redfin’s website. 

Florida had 5 of the top 10 go-to metros, with Cape Coral coming in at #8. Chicago, N.Y. City, Washington D.C. Los Angeles and Boston all occupied the top 10 move-from cities. 

How Did Hurricane Ian Affect SWFL Housing Market?

Currently, Lee County has seen a year-over-year decrease for approved residential units under construction, attributed to Hurricane Ian’s September 2022 battering. However, like Collier County, Lee County still has a large number of abodes being built compared to nearly the rest of the continent, and strong data in other categories helped lead Lee to a high ranking, according to Insurify, a Massachusetts company that helps people find the lowest insurance rates. 

Insurify researched that Lee had the second highest number of new residential units under construction when accounting for existing population, with 191 residential units under construction for every 100,000 residents. Jenna: As Realtors, it’s music to our ears that so many new homes are being built. As residents, it’s not the most relaxing music to hear.

Do People Really Move Because of Taxes?

Florida touts its no-income-status, but moving is complicated and buyers consider many variables. Still, it appears that lower taxes carry notable weight, and all things being equal, people prefer lower taxes. The most recent IRS data seem to show a direct connection between taxes and migration:

·         Nine of the top states with the largest population gains from 2019 to 2020 have no or low individual income tax. 

·         Of the states that saw more income tax filers move in than out, 80% had below-average state and local tax collection in 2020

·         19 of the 28 states with more people moving in than out had a top marginal income tax rate below the national median, while 16 of the 22 states, plus D.C., with more people moving out than in had above-median  income tax rates.

Most studies have found that state and local taxes affect migration, and the effect seems to have become stronger over the years, probably because technology has made it easier for people and businesses to move. For example, in 2021, California and New York lost $29 billion and $25 billion in AGI, respectively, while Florida gained $39 billion. Tom: This disparity will eventually cause an even higher mass exodus from high-tax states.

Owners Not Selling? ‘Lock-in Effect’ Not Only Reason

While owners don’t want to give up 3%-ish mortgage rates, a survey from Fannie May found that’s a secondary concern to low inventory challenges making it harder to find a place to go. The results suggest that the lock-in mortgage-rate effect is less than most people think.

Homeowners’ Reasons for Staying in Place:

·         29% of people with a mortgage and 29% of outright owners said that they plan to stay in their home longer than originally intended.

·         However, 45% of mortgage borrowers and 49% of outright owners do not plan to stay in their home longer than originally intended.

·         21% of mortgage borrowers said being “locked-in” to a low mortgage rate was the leading reason for staying longer, but “I like my current home” (19% and “home prices are too high” (13%) were close behind. Lisa: Locally, high insurance rates and low inventory are even larger obstacles than interest rates for buyers

Please Help Us Help Your Family and Friends 

Unlike most Realtors, we rarely reach out to you for referrals. Our faithful clients continue to have us represent them at an extremely high percentage. With so many out-of-staters relocating to SW Florida, if you know of someone moving to our area we would greatly appreciate it if you would recommend us. We will also be happy to assist anyone who is moving away. They will receive the same outstanding, professional service that we’ve provided our clients for decades. 

If someone you know is planning to relocate to our area in the next year or so, it'sjenn a good idea to connect us so they can receive our Market Updates. Our team thanks you so much for your continued trust and confidence. 

Facts & Stats and Tom's Musings 

2023 Home Sales Likely the Lowest Since Housing Bust: Highest mortgage rates in two decades have started to take a toll, and by the end of next year, total existing-home sales will likely be the weakest for many years according to economist forecasts. Redfin estimates that the existing-home sales for 2023 will be around 4.1 million, the lowest mark since 2008.

Fewer Retirees Downsizing Due to Finances: Older adults once downsized to reduce monthly costs, but facing few small properties for sale and higher interest rates, many now feel locked into their current home. The top reasons older Americans give for downsizing are wanting to be close to family and friends, having less house to manage, and becoming empty-nesters. 

Upside to Current Market? Increase in First-Time Buyers: A pullback in move-up buyers and investors has helped first-timers become 50% of the homebuyer market, a jump from 37% in 2021, and the highest share Zillow has ever recorded. High mortgage rates and a shortage of inventory is keeping would-be repeat buyers in their current homes, but the larger share of first-time buyers is filling the gap. 

1 in 5 Couples Include ‘Home Fund’ in Wedding Registry: On wedding website The Knot, 20% of couples ask for home down payment money – a level that has risen 55% over the past five years. Only ‘Honeymoon Fund’ ranked ahead of ‘Home Fund’. 

Cape Coral Homes Have Increase in Days on Market: The year-to-year DOM in Cape Coral is 43 days, 19 days longer than a year ago

Cape Inventory Rose in September – A Future Concern?

We are getting very close to the well-known “balanced market” of 6-months supply of homes. Somewhat surprisingly, C.C. home prices rose slightly from August despite the higher inventory. If inventory continues to expand, we can expect the inevitable drop in home prices. 

Lee County home prices experienced a slight 2% drop from Dec 2022 the previous low price point of the current cycle, although with a 6% increase in the number of home sales. 

                                                  Cape Coral - Dec 2022 vs. September 2023

                                                      Lee County - Dec 2022 vs. September 2023

Cape Coral Gulf-Access Homes: Sept witnessed a nice increase in the number of C.C. gulf-access home sales from August. Sept had 66 sales versus 48 in August, but a fairly steep drop in the average price from $929K to $852K

C.C. $1M+ Homes: September was a near mirror of August’s upper-end home sales with 18 $1M+ homes sold at the exact same sales price of $1,336,000

Confused Buyers? No Wonder with Today’s Headlines

Real estate prices are going back up, one news headline says. No, they’re dropping, says another. Confused buyers don’t know whether to move quickly or step back. Some mid-summer headlines from highly reputable sources:

Zillow: “Home values reach new peak as owners hang on to houses”

Core Logic: “U.S. Annual Home Price Growth Drops to Lowest Rate in 11 years in May"

National Assoc of Realtors (NAR): “Existing-Home Sales Fell 3.3% in June; Monthly Median Sales Price Reached Second-Highest Amount Ever”

Redfin: “U.S. Home Prices Rise for the First Time in Nearly Five Months". 

If you look at these headlines it is easy to understand homebuyers’ uncertainty. The info is different because they don’t all measure the same information, nor specific geographical areas. Jenna: Just like the weather, all real estate is local. So, in addition to reading our monthly report, feel free to contact us with any questions about our SWFL market. 

NAR Economists: 2024 Better than Rest of 2023

Dr. Lawrence Yun, the highly regarded Chief Economist for National Association of Realtors,along with two other economists spoke to Naples Realtors recently. Yun says mortgage rates could hit 8% later this year – but he expects around 6% by spring. Tom: Although I hold Dr. Yun in the highest esteem, I should point out that early this year Dr. Yun projected that interest rates would top out at 7% by the end of 2023, a rate that has long gone by.

Dr. Brad O’Connor, chief economist with Florida Realtors, said that Florida, and Collier County in particular, are doing better than many areas in the U.S., and better than in many past years. “The underlying demand for moving into Florida is still quite high, and the desire to move to Florida from other states will be a permanent trend”. 

Previous Low Mortgage Rates Creating Housing Dilemma

Buyers complain about too-few sellers selling – but some homeowners want to move yet feel frustrated that an ultra-low mortgage rate has locked them in. According to Realtor.com, 82% of homeowners felt locked in by their existing low-rate mortgage.

A recent report from Zillow, states homeowners were nearly twice as willing to sell their home if their current mortgage rate is 5% or higher, but 80% of mortgage holders have a rate below 5%. As a result, many homeowners who would otherwise choose to downsize, leave their starter home, or move to a new location are opting to remain in place, keeping those homes out of the inventory pool. A reduced supply creates a more competitive market and keeps prices at a higher level. Tom: Today’s high interest rates create a dual problem. Fewer buyers qualify for a high-interest loan, or are simply unwilling to pay double previous low rates. And, homeowners with an existing low interest rate are justifiably unwilling to give up those favorable rates in exchange for a much higher interest rate should they sell and move. 

Cape Coral Featured on “My Lottery Dream Home” 

Recent Powerball winners immediately knew that some of their winnings would go towards purchasing a home in Cape Coral, one of the remaining places in Florida offering reasonably priced coastal living. The show's host David Bromstad was able to find them several homes in their $350 - $450K range (for an off-water home). 

Bromstad refers to Cape Coral as “a slice of paradise that’s still surprisingly budget-friendly. 

Sue: We’ve watched several episodes of HGTV’s “My Lottery Dream Home”, so it was interesting and exciting that Cape Coral had been chosen by these lucky winners and would be featured on the hit TV show. 

Two Local Resorts Make Favorite Florida List

Given that Hurricane Ian blew through SWFL barely a year ago, it is quite a tribute that both the Pink Shell Beach Resort & Marina (#15) in Fort Myers Beach, and the Hyatt Regency Coconut Point Resort & Spa (#8) in Bonita Springs made an award-winning travel publication list - Conde Nast’s Readers Favorite Florida Resorts.

A true beachfront resort with Matanzas Pass on one side and the Gulf of Mexico on the other, Pink Shell evolved from a single cottage built in 1950 to an expansive 12-acre beach resort and marina. 

Coconut Resort & Spa is known for its water attractions spreading over three acres featuring a Lazy River, five waterslides, including a pair of dueling speed waterslides and an inner tube water slide.

It’s nice to know we wouldn’t have to travel far to stay at either of these beautiful top Florida resorts. 

Facts & Stats and Tom’s Musings

Don’t Wait for a Rate You Like Better: Economists advise against waiting for rates to drop for one main reason – when rates drop more buyers will be in the market and home prices will once again escalate. If you purchase now and rates drop by a decent margin you can refinance, but if home prices increase there is nothing you can do about that. 

Start Spreading the News - Fla. Tops NY in Home Values: Study: Fla. leaped past New York to be 2nd highest in U.S. housing values, trailing only California. S Fla. (No. 5) and Tampa (No. 18) made the top 20 “most valuable metros” list. S. Fla. (Miami area) pushed Washington D.C. out of the top five. N.Y. City, Los Angeles, San Francisco and Boston were the 4 priciest metros. 

Fla. Getting New Private Flood Insurance Company: An AI- based, Next Gen cloud platform, Titan Flood, plans to offer private flood insurance with the ability to provide quotes “in seconds”. Leveraging hyper-automation, Tital helps homeowners understand their true flood exposure, saving them time and money, while offering a fast, simple way to buy insurance protection online. Lisa: The ability for homeowners to get faster, easier, less expensive online insurance will be a huge relief for many of our SWFL clients and for future homeowners..

1 in 5 Millennials Fear They’ll Never Own a Home: A survey found 18% of millennials and 12% of Gen Zers feel they’ll never own a home due to student loan debt, high home prices, high interest rates, and the inability to raise the down payment. 

26% of Gen Z adults and 52% of millennials currently own their home, compared to 71% of Gen Xers and 79% of baby boomers. 40% of Gen Zers and millennials are working a second job to save for their down payment, and about 25% plan to use a cash gift from family. 

  (Pictured: Snowy egret and an Ibis). 

If you live in SW Florida it’s likely you’ve seen both of these white tropical birds making their way slowly through your yard; either an ibis or an egret. Here are a few facts about each bird and how you can tell them apart.

If it’s a white bird with a slender, reddish-orange, down-curved bill, red legs, and a football-shaped body, you’re looking at an ibis. They are medium-sized birds that range in length from 22 to 30 inches and as they probe through your grass they’re looking for earthworms, insect larvae, grubs, and frogs. They’re actually very beneficial in helping rid yards, gardens and crops of insects that are harmful to plants. You can also find flocks of ibis searching through areas of mud or in a marsh on the hunt for crustaceans, small fish and snails, and in general feed as a group. In flight the white ibis is beautiful with its out-stretched black-tipped wings.  Did you know, ibises can live up to 25 years and the University of Miami mascot is a white Ibis named Sebastian The Ibis!

The other populous white bird you’re liable to spot is the snowy egret. They are distinguishable from the ibis because the snowy egret has a slender black, straight bill, black legs, yellow feet, yellow patch around the eyes, and a fluffy white plume on its head/neck. In 1886 the plume of the snowy egret was valued at twice the price of gold by the fashion industry, for use on women’s hats. Consequently, snowy egrets were killed for their plumes almost to the point of extinction, until reforms were passed in the early twentieth century.

Snowy egrets grow to about two feet in length and have a wingspan of about three feet. They feed on a diverse collection of egret delicacies such as small fish, crabs, crustaceans, snakes, young frogs, small lizards, crayfish, insects, snails, and aquatic vegetation. You're likely to observe a solitary egret as they don't travel in groups as do the ibises. Snowy egrets have a lifespan of about 16 years. 

So now you know a little bit about two of SW Florida's most common tropical birds. 

If you like bird watching or just love living around beautiful wildlife, SW Florida is the place for you. 

At Cape Waterfront Living, we can help you make SW Florida your home by finding you your dream house in a wonderful location. 

If there’s a lot of buyers out there, you might think it will be easy to sell your home, especially if there aren’t many other homes on a market – this is called a seller’s market. However, there’s many reasons you’re home won’t sell, even if it’s one of the few homes available.

In a survey conducted by ActiveRain, an online community of real estate professionals who write blogs, exchange best practices and share information, it was revealed what realtors believe the top reasons or mistakes as to why homes don’t sell.

• 77% of realtors believe the home was overpriced.
• 34% of realtors said the showing ability.
• 32% of realtors said it was a cluttered space.
• 21% of realtors say sellers are unable to negotiate.
• 28% of realtors say there are unpleasant odors in the home.
• 20% of realtors say sellers won’t make repairs.

Selling a home can be harder than it sounds. Before you sell a home, you should try to anticipate problems before they come up. Selling a home is a major process with lots of steps including listing, making repairs, finding a buyers, navigating the closing process, and moving to a new place. 

Here are some more common mistakes when selling:

• Underestimating the cost of selling. You want to estimate your net proceeds, which is the amount of money you will pocket after selling costs are accounted.
• Selling at an unrealistic price. Often, the price you want is not what the market will pay. You want to hit a “sweet spot” in between asking for too much and too little.
• Only considering the highest offer. The highest offer isn’t always the best offer, especially with contingencies, which are conditions that need to be satisfied for the sale to close.
• Ignoring repairs. If your home needs a lot of repairs, it can turn off buyers and decrease the value of your home.
• Not preparing your home for sale. You want your home to look clean, uncluttered, and well-decorated.
• Choosing the wrong agent or way to sell. You want to choose a realtor/agent who has your best interests at heart.
• Limited showings. You need to cooperate when your agents can show the home.
• Skipping necessary preparation.
• Not staging the home.
• Taking poor photos of the home.

Selling a home can be overwhelming, but if your properly prepare yourself and your home, work with a good realtor, and are a aware of these above common mistakes to avoid, you will have a better chance of getting your home to sell easier and faster. 

At Cape Waterfront Living, we don’t just help people find homes, we help people sell their homes in Southwest Florida, as well.

If you need help selling and getting your home to sell, let us help. We can help make your home inviting to potential buyers of all ages. We can also help look for a new home in Cape Coral and other cities in southwest Florida, as well.
Selling a home can be a tiring process and discouraging if your home is on the market for a long time. We can help you make your house stand out while helping you get the most back for it.  

Buy or Sell