Thursday, April 24, 2014
Unless, that is, you want to live south of San Carlos Park, in which case you can forget about it.
"You really can't find single-family there under $300,000 now," said David Cobb, regional director in the Naples-Fort Myers area for housing data provider Metrostudy, which tracks pricing and new-home construction in subdivisions.
But throughout most of Lee County, it's a price point that offers a decent variety of homes — although what you get for the money varies considerably by what part of town you choose.
Cape Coral is the top of the line for that price range, said Steve Koffman of Koffman & Associates, a broker/associate at #1 Century 21 Team in FL.
"They could get one of 56 homes between $200,000 and $250,000 with Gulf access," he said.
Those tend to be older houses with two or three bedrooms and 1,300 to 1,800 square feet, and "you don't get too many with pools," Koffman said.
If you can live without the Gulf access, the choices are more plentiful, he said: 143 pool homes are available in that price range.
Denny Grimes, of Denny Grimes & Co. and Royal Shell Real Estate, said homes for sale in the $200,000-$250,000 range have a median time of 30 days listed, compared to 70 to 90 days for the home market as a whole.
He attributed that to demographics: The median price of a home nationally is $200,000, so that's close to the amount a typical family would spend when relocating here from up North.
Besides, Grimes said, "If you're going to come down to Southwest Florida, where else are you going to go? You're not going to Collier County for $250,000."
There are limits to what you can get for $250,000. In Fort Myers, for example, 12 pool homes built in 2002 or later are listed for sale in that range, Koffman said.
As far south as the Daniels Parkway corridor, "The typical master-planned community with a smaller amenities package is $120, $135 per square foot," Cobb said, so a 2,000-square-foot home would be available for $250,000.
Grimes said he expects the middle-range homes in Lee County will continue to appreciate as demand keeps inventories low and builders of new homes run into buyer resistance to future price increases.
For a prospective seller of a $250,000 house, he said, "Every morning when he wakes up his house is worth a little more. The market is marching to him."
Saturday, April 19, 2014
The median resale price of an existing single-family home in the Naples area increased 15 percent
The median resale price of an existing single-family home in the Naples area increased 15 percent to $265,000 in the first quarter of 2014 compared to the price a year earlier, according to statistics released today by the Naples Area Board of Realtors.
In the same time period, the number of resales increased 5 percent from 2,237 in the first quarter of 2013 to 2,352 in the first quarter of 2014.
In the first quarter of 2014, a total of 270 homes with a median closed price of $1 million and above exchanged hands in Collier County (excluding Marco Island), up 65 percent from 176 closed sales in that category during the first quarter of 2013, according to the report.
Inventory in all price ranges has continued to decline. In the first quarter of 2014 there were 4,405 available properties, a 14 percent decrease from the 5,136 available during the same quarter last year.
The $2 million-and-over market increased 83 percent from 48 sales in the first quarter of 2013 to 88 in the first quarter of 2014, according to the report.
Connect with this reporter: @DickHogan (Twitter) or email firstname.lastname@example.org
Thursday, July 18, 2013
The crown jewel of Cape Harbour, 5832 Armada Court, also known as Cape Coral’s largest home, just sold for $5.3 million. The property sold for $5.1 million and the furniture represented $200,000 in the sale, making it the second highest residential real estate transaction this year in Lee County according to the Multiple Listing Service (MLS).
Ted Stout, Realmark Realty Broker listed and sold the home, which is officially the most expensive home sold in Cape Coral. It’s only preceded by the original sale of the house in 2009 for $6 million.
The $5.3 million sale trumps the next in line in the MLS by a whopping $2.4 million, a sale of $2.9 million at 5649 Riverside Drive in 2011. Stout said, “You can count on one hand the number of homes that have sold for more than $5 million that don’t have beach access in Lee County.”
Armada Court is located in Cape Harbour one the few gated waterfront communities on the Southwest Florida coast. It is unlike any other home in Lee County topping out at 18,404 total square feet.
The estate is situated on four lots and features the main house, guesthouse, caretaker’s quarters, six bedrooms, six full baths, three half baths, and three fireplaces. The vanishing edge pool with beach entry seamlessly merges with the waterways to offer endless waterfront views.
The walls of glass, unique finishes, rare wood flooring complete the look and feel of a Tuscan manor mansion. It’s both a boater and car collector’s dream with a garage that can house up to seven cars and more than 560 feet of seawall with seven boat docks and two boat lifts to accommodate multiple yachts.
The buyer is, a retired entrepreneur from Naples who was represented by Jutta Lopez, Sales Associate with Premier Sotheby's International Realty. Stout added “They bought the property because of the incredible value Cape Coral offers compared to Naples.
This home would sell for $15 to $20 million in Naples, making it a steal when you shop the Southwest Florida coast.”
Tuesday, June 25, 2013
Real estate rebounding with the help of quick turnarounds
BY ROGER WILLIAMS
The answers may be both yes and yes, according to Realtors and investors alike in the distinctive and sometimes dissimilar markets from Palm Beach Gardens on the east to Naples, Fort Myers and Punta Gorda on the west.
Here, through the eyes of the experts in several markets, Florida Weekly glances at both the opportunities and the complexities inherent in flipping — the investment art of buying property then reselling it in short order at a significant profit.
Although the process came to symbolize poor judgment and greedy excess during the recessionary years between 2006 and 2009, that’s changed significantly.
For many banks and loan agencies, not to mention flippers, it was an anything-goes time.
“The flipping thing got a bad rep because there wasn’t any real value added,” says Tom Weekes, a Keller-Williams Realtor based in Charlotte County who teams with his wife, Gay Weekes, to do business from Cape Coral north to Sarasota.
“It was just a crazy market that allowed people to make a lot of money provided they flipped it over quickly and didn’t get caught without a chair when the music stopped, so to speak.”
Now, however, home-buying loans remain much more difficult to get from banks, and investors come to the game with money in hand.
Investors are also much more likely to restore the properties they buy nowadays — often they have to if they’re buying foreclosed homes that have sat vacant — adding value before they sell, or renting them out for the time being.
That way, they can capitalize on strong rental markets and bet with a bit more security on increasing home values as investment opportunities begin to shrink.
“I am seeing investors hold for rentals as rental prices are up,” says Kathryn Klar, a real estate agent for Lang Realty in Palm Beach Gardens. The comment might apply to many communities where investors appear to be profiting significantly, or waiting just a bit longer to profit significantly.
And now, nobody appears to be questioning flippers for lacking virtue or value.
“This is taking care of business,” says Jim Green, a Realtor based in Lee County. “Too often society ignores blight and proceeds to build anew in other places. Blight begets blight. These restorations cause values to go up, improving the tax base for the subject property and the surrounding community.”
As Naples-based, John R. Wood Realtors Karyn and Rowan Samuel see it, “every transaction generates cash; each sale affects the local economy,” says Mr. Samuel.
“Real estate has a tremendous trickle down effect on multiple industries — from the sellers cashing out, to the builders and contractors, the brokerages and Realtors, the closing agents, all the way down to retail — to furniture and car sales, to dining and entertainment.
“An improving real estate market (helped by flippers) is an economic powerhouse, and I think we are starting to see that, especially in areas like Naples and Miami that are in-demand real estate markets.”
Cause for excitement?
All that said, last month, Realtytrac Inc., a market analyst, published a survey that identified the 25 hottest markets for flipping homes in the United States, based on sales from the first quarter of 2012 through the first quarter of 2013.
The company defined a flip as the buying and reselling of a home within six months.
First, it picked 600 markets nationwide where flips occurred. From those, it picked metro areas where at least 500 homebuyers flipped their properties in 2012, winnowing that number down to metro markets with a 9 percent annual increase in home values over a year, or more.
From that grouping, finally, the surveyors listed the 25 top markets. They awarded list position based in part on gross profit defined as a percentage of the first selling price, explains company Vice President Daren Blomquist, in an online description of the process.
Thus, if a buyer picked up a home for $150,000 and sold it for $200,000 within six months, the gross profit of $50,000 would amount to 33 percent of the original price.
On the Realtytrac list, five of the first 10 markets appear in Florida, including Orlando (No. 1 in the nation), Tampa (No. 4), Miami (No. 6), Lakeland (No. 7) and Sarasota (No. 9).
Lee County’s Fort Myers/Cape Coral — the market once ranked first in the nation for foreclosures — came in at 20 on the list.
The results led Mr. Blomquist to offer a rosy prediction for those with the capital to flip homes in 2013.
“Flipping homes — buying, rehabbing and reselling for a profit usually within about 90 days — will likely become more favorable for investors in 2013 as home prices are expected to rise,” he writes.
“And while buying homes as rentals still offers a solid rate of return in many markets, many buy and sell investors typically flip properties periodically to fund their ongoing rental purchases.”
But experts on the ground may not be so quickly optimistic, or so blithe in analyzing the 2012 numbers, depending on the given market and on what some call the hidden costs.
“If it’s a foreclosure market, it’s all being purchased by investors now,” says Tara Bua-Bell, a Realtor and partner with her mother Emily Bua in Naples Estate Properties. “I’d say for those investors in the last six to nine months especially, it becomes a question of whether they’re going to make a profit.
“Collier County was not as affected as some outlying counties or communities like Lehigh Acres and Cape Coral by the recession.
In Lee County’s Cape Coral, together with nearby Lehigh Acres one of the markets hit hardest in the United States by foreclosures, that’s precisely what’s been happening, says Frank Ehrhardt, a Realtor with Cape Realty. Mr. Ehrhardt flipped houses in Los Angeles and Chicago before moving to Cape Coral three years ago to invest in an opportunity himself.
“It’s a perfect time to have gotten into this because we bought our home at close to the bottom,” he says.
“The low-range market is where it’s easiest to get in, and it’s where a lot of the flipping happens. Groups and companies buy in, and we’re seeing a lot of individuals, too.”
But sometimes, he says, those individuals regret their investments because they don’t see unanticipated costs before they invest.
Still, “flipping is becoming extremely competitive,” he notes.
In 25 purchase offers Mr. Ehrhardt has made for his clients so far this year, at least 20 have have faced competing bids on the same day, he says.
That experience is common.
“We recently listed a Cape Coral home that was attractive to investors and had five above-asking-price offers within 48 hours,” says Jim Green. “That has become the current norm.”
But Mr. Green echoes the voices of several of his colleagues by questioning the easy optimism of the Realtytrac survey, and data like it.
“The gross profit numbers used by the media have been very misleading,” he says.
“They exclude disaster remediation, renovation and improvements — say $20,000 on the average home purchased at $138,000. Typical cost-ofsale in our market is about 9 percent. If that home is sold at $189,000, the math says the investor made 9 percent on a $158,000 high-risk investment, less purchase fees and carrying costs.”
Mr. Green was using some other figures from Realtytrac in his example of built-in but unseen costs, in which the company described the Palm Beach, Broward, Miami-Dade metropolis as the number one market in the U.S. for flipping (taken together, those communities ranked ahead of Orlando).
There, from the first quarter of 2012 through the first quarter of 2013, about 4,300 houses were flipped by investors who bought in at an average price of $138,000 or so, and sold at an average price of about $189,000, within six months.
And finally, investors worry about other unseen factors, too — shadow inventories, for example.
“We think now we have an 18 to 36-month period left (for these investments),” says Mr. Shaffner.
“It’s more difficult to find deals that make sense on a rental program now. And there’s a caveat: Is there a shadow inventory? Are there a lot of homes that haven’t been released by the banks or Freddie Mac yet? Are they holding on to them and releasing them slowly because they can’t afford the capital hit?”
Nevertheless, Mr. Shaffner and his team of investors who can use family members to contract and restore properties, are sticking to an original plan defined in dollars per square foot.
In 2009 they started out paying about $35 a square foot for homes in Lehigh Acres and Cape Coral. Now they’re paying about $55, and their bet — this is the gamble bas
And that’s when they might sell significant numbers of their 300-plus rental properties, he says.
All of which seems like an opportunity to live with a lot of stress.
But that’s the life of an entrepreneur — any entrepreneur, but especially real estate investors, he says.
“Anybody who’s an entrepreneur wakes up every morning unemployed,” he explains.
“I don’t have Ford Motor Co., or Chico’s, or somebody else giving me a paycheck. So I wake up every morning unemployed, and figure out a way to create income.
“Anybody who’s 100 percent commission, that’s who we are.”