TOM & SUE DEMOGENES...
"YOUR INFORMED REAL ESTATE COUPLE"
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MAY 2014 MARKET UPDATE
It Will Be A Longer Than Average Real Estate Season
All indications are that real estate season will be extended in SW Florida. Usually, after Easter our real estate activity drops off precipitously. This year it will be going strong into May, and in my opinion possibly into June or later.
The primary reason for more late Spring/early Summer real estate sales is how many northerners are finally "above water" in home equity. They can now sell their homes without coming to the closing table with cash, and can move to the warmer climes of SW Florida. The exodus is further fueled by the brutal winter endured by northerners, and to a lesser extent, by improved stock market profits.
We hear from many northern clients who have their homes on the market, or under contract, that they will be coming here to buy a home/condo right after closing on their existing homes.
Cape Coral 2nd Best Mid-Sized City For Home Buyers
Movoto Real Estate recently compiled a list of the top ten mid-sized cities (population: 126,000 - 211,000) in the U.S. where market conditions are best right now for buyers. The Criteria for the survey:
* Total Homes for Sale Per Capita (Cape is #1 in U.S.)
* Median Days on Market
* Median Income to Median Price Ratio - Affordability
* Crime Rate (Cape has very low crime rate)
* School Quality (Cape #11 in U.S. in schooling)
* Unemployment Rate
Tom: The number one city in the country was Clarksville, TN. If weather, water, and state taxes were factored in, I'm certain Cape Coral would have been #1...by a landslide
Poll: Americans Prefer Real Estate to Stocks, Gold
According to Gallup Poll, Americans believe real estate is the "best" long-term investment, followed by gold, stocks, mutual funds, savings accounts/CD's and bonds. In 2011, Americans surveyed said the most popular long-term investment was gold. That marked a time when gold was at its highest price and real estate and stock values were lower than today.
Americans with higher incomes are most likely to consider real estate and stocks the best investments. Higher income Americans are most likely to own their own homes (87%), followed by middle-income earners (66%) and lower-income earners (36%). "With housing prices improving across the country, Americans are regaining faith that real estate is the best choice for long-term investments", according to Gallup.
The Pitfalls of Selling a Home with Pets
Home sellers with pets must take extra precautions to avoid turning off potential buyers. Odors or pet encounters can offend buyers – for some, they're deal-breakers. Agents recommend that pets be removed during showings. Pets that remain in the home should be caged, and the cages should not be left in unexpected places, like the bathtub; instead, they should be placed against the back wall in whatever room the seller chooses, so the buyers can look around.
Even buyers who like pets can find them distracting, especially if they spend more time petting or avoiding Rover than looking at the home. When removing a pet from a home for showings, also take the accessories – the litter boxes, beds, bowls, toys, photos and especially odors.
Fun Facts of The Month
Passenger Totals Break Record in March at Southwest International Airport: During March, 1,147,059 passengers traveled through our airport, the highest single month for passenger traffic in the 31-year history, culminating in a record-breaking first quarter at RSW. RSW is one of the 50 busiest airports in the nation. Tom: Undoubtedly, the horrible winter up north played a big role in the record number of passengers.
Local Home Inventory Continues to Drop: Cape Coral now has just 5 months of home inventory, compared to 7 months last month, and 9 months at the start of the year. Tom: At the present sales pace we may get into the somewhat undesirable inventory range of 3 to 4 months, which can cause bidding wars and unsustainable price increases, which could induce another real estate bubble.
Analysts Still Bank on 7% Home Appreciation: Despite a weak 1st quarter in U.S. existing-home and new-home sales, analysts from Wall Street, Morgan Stanley and Barclays are keeping their projection for home price increases at 7%. Barclays analysts are most upbeat about home-price appreciation in four "sand states": Arizona (8.2%), California (9.4%), Florida (8.3%) and Nevada (11%). Tom: Cape Coral/Ft Myers have already exceeded these state appreciation projections, with no indication of a let-up.
Home Flipping Down to 3.7% of All Sales: RealtyTrac's Q 1 2014 Home Flipping Report finds that 3.7% of all U.S. single family home sales were flips - purchase and resale in less than six months. The previous quarter saw 4.1% flips, and in the first quarter of 2013 6.5% were flips. Tom: locally there are less flips as well. Most of the major "flippers" are now buying land and/or building new homes as investments. Sue, Kim and I are doing both.
Client Question of the Month
Client: "You mention high or peak real estate season. If I buy a home in SW Florida in off-season, will I get a better deal?"
Kim: Good Question. The short answer is no, and here's why:
Mothers hold their children’s hands for a short while, but their hearts forever.
Topics: Low New Construction Inventory - Cape Coral, One Of The Fastest Growig Cities - Property Values Continue To Rise
Topics: Local Home Prices Highest in 6 years- Gulf Access homes up 24%- Bad Weather Hinders Construction in the North
Topics: 4th of Year RE Recovery - No Housing Bubble! - Cape Celebrate's Comeback
Topics: Lot Prices Increasing - 2014 Projectons - Construction Labor Shortage
Topics: FL Unemployment Down Again- 25% Raise in Home Prices- Cape Coral 5th Best Mid-size City
Topics: Flood Insurance Info - Out of Area Realtor Help - New Home Construction