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Housing Market Update In a Nutshell

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Unless you haven’t been watching the news or seeing the number cars with out of state license plates traveling our roads, let me tell you there has been a tremendous increase in the number of people who are now calling Florida “home” on a full time basis. As I’ve mentioned many times in our previous newsletters, last January we were hearing people saying it was the inclement weather and high taxes that had them strongly considering a move to Florida however, when Covid hit, it changed the market dynamics.
No longer did people want to live in densely populated areas, commute via mass transit and work in the tight quarters of commercial office buildings. Employers found production levels didn’t decrease as anticipated and were now allowing their employees to work remotely. As a result instead of waiting for retirement to move to Florida, they were making the lifestyle change now, and for some cities, it has become a mass exodus!
Florida and Texas are two states seeing a tremendous influx of people looking to relocate on a permanent basis and with very low inventory levels the competition for existing homes has been fierce. In fact some of major builders such as Lennar have put a “sales hold” on some of their developments so construction can catch up with sales.
Recently we had three of our listings sell in one day, and well over full price. Our most recent listing had 28 confirmed showings within 12 hours and 15 offers, with the accepted high offer almost $80,000 over full list price….yes, you read it correctly! Agents were telling us of their frustrations in not having their offers accepted when bidding $20,000, $30,000, $40,000 and more over list price. Buyers who wanted to give some thought to the home they viewed before making an offer found themselves on the outside looking in as the property went pending shortly thereafter.
While this may seem reminiscent during the real estate boom in 2004-2006, it is a very different scenario. Sub-prime mortgages and other forms of loans were being approved for buyers who under normal circumstances would never have been able to qualify. Inventory levels were much higher and the speculation that baby boomers were headed to Florida for the next 20-30 years had everyone giddy the sky wasn’t going to fall. Appraiser’s couldn’t keep up with the increases and started giving valuations on properties that were called into question years later.
What you are seeing now are not only retirees, but those looking to make lifestyle changes prior to retirement, both vying for short supply of available properties. Unlike the market back in 2004-2006, this market is not being driven by investors and speculations. We are in a market where there is strong demand and short supply. With the cold weather now hitting the north, those that were contemplating a lifestyle change are acting with a sense of urgency, adding an additional strain to an already robust market. Sensing their opportunity may be slipping away we have seen an immense uptick in offers well above list price. What was a market characterized by gradual growth, we are now seeing the realization by some this may be their last opportunity for some time and are willing to pay a premium for it.
As always if you have any real estate questions, feel free to reach out garycardillo@wesellpg.com 941.916.0939

Hear Ye, Hear Ye, the Real Estate Market is Booming!

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The coronavirus pandemic doesn’t seem to be making the Charlotte County housing market sick. The market is seeing a surge in listings and buyers continue making offers.

With inventory levels so low, if there was ever a time in which to sell your home, this would be it! As of July, the median is 49 days on the market, a trend that is 9 days less from last year, and I see it moving lower in the next few months. Looking at sales of homes over the last year, the market in our area is highly active. In July of 2019, there were 345 homes sold in our area where for July 2020 we had 488 sales. Recently Punta Gorda was in the top 3 cities for people who are relocating to Florida. A lot of interest in our housing market is coming from people relocating from the north looking to escape the harsh winter weather and high taxes, but with concerns from this pandemic are looking to move to areas with less congestion where they can work remotely and avoid mass transit. With the influx of those moving to the area competition is fierce which has resulted in the median price of homes rising to $237,450. So not only are our sales looking good, but the price of our homes are attractive as well. Homes valued in the $250,000-$350,000 range are the most popular among buyers right now.

With mortgage rates at record lows, some buyers who are self -employed are having a harder time qualifying due additional qualifying guidelines stemming from the impact of the pandemic. Others are challenged in trying to get pre-qualified fast enough in order to submit offers quickly on what has become a very limited supply of inventory. Buyers shopping for a home in our area should first get pre-approved so they know what they CAN buy. Second, you need that pre-approval or proof of funds letter as sellers don’t want to tie up their properties for those who can’t qualify. In short, get pre-qualified and if you see a house you better act on it. If you are someone who has a hard time making up your mind now is not the time to just be looking. Homes have hit the market and are immediately going under contract when priced well and buyers are trying to make their offers very attractive in order to outbid their competition.

An article I read recently, “More Buyers Nix Inspections as Bidding Wars Heat Up”, a Redfin agent study found that almost one in five offers (19.9%) waived the inspection contingency to make their offers more attractive. This study was done with agents in select major US markets. The previous year it was 13.2%. Although, I understand why some are doing this I do feel this is a major part of home buying not to skimp on.

Our local newspaper mentioned how single family home permits in Charlotte County were on the rise with 216 permits were issued for the month of July which is up over 189 from the same time period a year ago. The value of the permits were $58.5M which is a $9M jump over the previous two July’s. This also represents a 14.3% jump year to year which runs from October to September. 1,791 single family home permits have been issued representing a 22.7% increase over 2019 year to date, and we still have 2 months to go. Total permits account for $487.9M, more than 2019 with 2 months to go and Charlotte County has outpaced the rest of the state which had a 17.1% increase over 2019.

We have a good education system, good government and we offer a vibrant waterfront town with many medical options nearby and our crime is low. It is just a great place to live and why we love to call it home!

If you are looking to sell, do the following to help it sell sooner rather than later. If your house is cleaned, updated, priced right and has a pool/view your days on the market will be less. Buyers are looking for those recreational activities to keep their families busy as they work from home. And of course you can reach out to me anytime if you would like a free market analysis. As we say to all of our clients, “We will be there with you every step of the way.”
-Gary Cardillo

Real Estate Question: Recently we were asked why their Realtor had charged them an “administrative fee” when no additional services were provided during the transaction process?

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Answer: While we do not charge this fee to our clients we are seeing this fee appear more frequently. Our position is a commission earned should be acceptable compensation for the service provided but there are agents who are charging this fee to either offset overhead for assistants, or to add to their compensation. There are a few ways this fee can be charged. In the Tampa area for example, this fee is most often charged to the buyer’s agent however, typically we are seeing the fee in other areas being charged to the buyer. These fees can range from $195.00 to $495.00. When multiplied by the number of transactions throughout the year, this is a fee that has the potential to more than offset additional overhead costs or add significantly to an agent’s income. However, some brokerages are charging their agents to collect this fee, most we have come across do not. As a Realtor myself, I can only ask another agent to drop the “administrative fee,” when it is being charged to me with no guarantees they will, but as a buyer you can inform your agent you are not going to incur this fee if you feel it is excessive.

Tips On Salt Pools

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I get asked fairly often about converting pools to Salt and what are the pro’s of a Saltwater pool. Pool Boy came by and spoke to our team recently and shared this informative piece, that I thought I would share you all:

What I’m Reading:

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In the New York Post, a segment stated how 41% of New Yorkers say they can no longer afford to live there. A single room apartment in the city is renting for $3,100 per month.

A Quinnipiac College survey found 61% of those interviewed said they could afford to live in New York, but 35% said they would be forced to move within the next 5 years.

Maria Bartiromo is a global markets editor at Fox Business News and hosts a variety of financial programs stated, “Money goes to where it is treated best.” This was in response to New York’s Governor Cuomo stating, “The state is facing a $2 billion dollar shortfall due to companies leaving the oppressive taxes in New York, and they are not the only major city facing this crises.” He goes on to say “Liberal policies are pushing companies out to states like Florida where there is no income tax.”

In addition to this article, and comments from the interview with Maria Bartiromo, it was recently reported New York is going to start invasive audits of high income people looking to establish their homestead out of state to recapture tax revenues leaving the state. States like New Jersey have already imposed an “exit tax,” which essentially is a tax you pay when you sell your home to leave the state. While it is essentially a prepayment of taxes on the capital gains, it is just another way states are making sure they can limit the loss of tax revenue leaving the state.

I think this bodes well for states like Florida that offer lower tax rates and a climate that fosters a better quality of life year round.

Source: Campanile, Carl and Max Jaeger “More than a third of New Yorkers say they can’t afford to live here.” New York Post, 22 March 2019. www.nypost.com

 

About The Gary Cardillo Group

Gary Cardillo, Realtor While most people would like to talk about themselves, Gary and Gail have always put their clients first, and their diverse backgrounds have provided their clients an unparalleled level of service and knowledge throughout the past years.
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