The Gary Cardillo Group

Market Update

Gary Cardillo — Wed, 04 Dec 2024 18:59:29 +0000

For months we’ve been posting updates on the real estate market which up until recently has impacted the local and statewide markets by the higher than anticipated taxes, rising insurance premiums, interest rates and the election. While those factors alone led for a decline in sales and sales prices for most of the state, the devastating effects of the hurricanes over the past few months have had a unique impact of their own, especially to our local markets.

Typically this time of year we not only focus on the year to year sales comparisons, but the year to date recap as well, however, adding in the variable of multiple hurricanes are skewing the numbers resulting in fewer showings, inventory that was damaged or lost this year versus last, and listing prices decreasing. While we would typically see more inventory coming on the market this time of year in anticipation for the upcoming season and the arrival of our winter visitors, we are also seeing a significant number of inquiries by investors looking for opportunistic buys. Unlike Hurricane Charley where Money and Forbes magazines had just voted our area as one of the best places to retire that created an unique competition between investors and buyers vying for limited inventory, there is plenty of inventory for buyers and investors of all types. The silver lining for some is if their homes have not been impacted by the recent storms, those homes will be viewed more favorably and the potential is for shorter times on the market if priced competitively. For others who did not fare as well, keep in mind there is a 50/50 rule that will impact your recovery plans. When in doubt call a reputable contractor to give you an estimate, and who can also determine if any of your damage was wind related or just caused by rising water. Before making any decisions check with your accountant and financial advisor as they will help you decide if rebuilding is a viable option or selling the property “AS IS” is your wisest financial choice.

Market Update November 2024

Gary Cardillo — Tue, 12 Nov 2024 18:33:03 +0000

Not a day goes by when someone asks, “What’s going on with the real estate market?” I think everyone senses the market is off the pace of recent years when inventory was low, sellers could name their price, and concerns about rising taxes, interest rates and insurance premiums were not at the forefront of a buyer’s mind as they are today, and of course you can always factor in the upcoming election. Add the impact recent storms have had and the result is more inventory is coming on the market from those looking to relocate in addition to the uptick in listings we typically see this time of year when more sellers are looking to put their homes on the market in advance of the new season. From a buyer’s perspective, they are not only factoring in the projected costs related to taxes and insurance coverage, but the anticipated costs for remodeling that typically would be a cost a seller would not consider allowing for in the negotiation process. With more inventory coming on the market properties will stay on the market longer unless they are priced very competitively. For those whose streets and neighborhoods are showing the residual effects from these storms, they can either wait until their streets are in better condition with the hope they can list their homes closer to market averages, or they may need to price their homes more aggressively to overcome a buyer’s concern when seeing the potential storm affect that could impact them. However, with many areas recovering quickly and restaurants and businesses coming back on line, there is a community spirit that is contagious and could be a factor in making this a strong upcoming season

Q: How has this new “anti-trust suit” in Missouri impacted the way agents work with buyers and sellers?

Gary Cardillo — Thu, 29 Aug 2024 20:26:56 +0000

A: For as long as most can remember, seller’s paid a commission to the listing agent, and that agent would then split the commission with the buyer’s agent, also known as the “selling agent.” With the decision that came down as a result of this lawsuit, commissions can no longer be posted on an MLS sheet for the buyer’s agent to view. That agent must now reach out to the listing agent to see if a commission to the buyer’s agent is going to be paid from the seller’s agent’s total commission, or from the seller him or herself. Any buyer wanting to view a home, must now sign a brokerage relationship disclosure by law with a buyer’s agent, or agent working in that capacity, prior to showing any property. That document will outline the commission the buyer’s agent is to receive and the length of time that representation is to last. In a rare case, if a seller decides he or she wants the buyer to pay his or her agent’s commission, then that brokerage relationship disclosure the buyer signed will come into play with the buyer having the responsibility to pay the commission.

I’ve often used the analogy of buying a car. You either get the discount off your trade-in or off the sticker price, but not both. Essentially you have two different paths to arrive at the same number and this is no different. Virtually all the sellers we know are looking to keep the terms as they have been, as a seller’s expense. The thought is it will increase the size of the number of agents who want to show their property. However, as we’ve shared with our sellers, should they decide they want the buyer to pay the commission, just like every other consideration the buyer is taking into account when making an offer on a property, that commission will now be factored in as well. The result could be an offer that is significantly lower than the commission percentage the buyer will now have to factor in. In short, while there is an extra step that may be involved for a buyer’s agent, we are seeing things pretty much remaining the same.

Reading the Real Estate Market “Tea Leaves”

Gary Cardillo — Fri, 29 Sep 2023 17:28:37 +0000

Compared to the last couple of years, the real estate market may seem to be very quiet, but it is really just more of a return to the normal ebb and flow of the real estate market. Our busiest times of year have always been from January through March/April with September and October typically a bit more quiet. Compared with the Covid era, it is a stark comparison, but we are pretty much back to our normal market in terms of our out of state visitors. Since the beginning of the year, when compared to the same time from January through the end of August of the previous year, Charlotte County did experience over 15% fewer homes being sold, but those decreases only accounted for an approximate 5.00% decrease in the overall price of a home. On the other hand, condominiums prices in Charlotte County rose slightly by 2.70%.

In the boating and golf communities of Punta Gorda Isles and Burnt Store Isles, there were over 25% fewer homes sold through the end of August, but the average selling price only decreased by 6.00%. Condominiums in the same area also had fewer sales with the average selling price dropping by 10%.

While Sarasota County’s average selling prices stayed pretty consistent from the previous year, overall this year’s comparative figures are skewed by inflation and higher interest rates. Someone financing a home this year compared to interest rates during the pandemic are going to have significantly higher mortgage payments. With the “panic buying” that went on during the pandemic now being a thing of the past, buyers today are going to factor in the higher interest rates and costs involved in remodeling a home. The end result is list prices ae going to have to become more realistic to attract buyers, or sellers will have to be more willing to accept lower purchase offers than they did during the past few years.

Does this mean our market is in trouble? If you are looking for some encouraging news and take a look at all the large tracts of land being developed, and the big box stores continuing to expand their presence in the area. Coupled with the political climate and high cost of living up north, we may experience some market adjustments, but overall our cost of living and quality of life will insulate us from those downturns better than most.

Real Estate Update

Gary Cardillo — Mon, 22 May 2023 19:27:17 +0000

You may be thinking, “What goes up, must come down,” and the real estate market is no different. However, unlike the stock market you still have your property which continues to have great value. When Hurricane Charley impacted the area, property prices skyrocketed due to investor interest and limited supply. A few years later many homeowners looking to sell complained that prices dropped. What they didn’t consider was unless they bought at the high, most still enjoyed increases in the valuation of their property that outpaced returns they were getting in the stock market. Now we are seeing the same thing. Prices rose due to what we perceived as panic buying that occurred during the pandemic, but with those fears subsiding, and travel being restored to more normalcy, we are seeing that buying frenzy abating. It started the end of July 2022, and with higher interest and insurance rates in addition to inflation and banking concerns for some, valuations have been trending lower. Single family home prices in Sarasota County dropped 9.6% in the month of April compared to the year before, dropping to an average of $650,789.00, while condominiums in Sarasota County fell by 3.3% to $640,583.00. Charlotte County saw a more significant decrease in the price of single family homes over the same time period falling 18.4% to $417,914.00 from a high of $511,939.00. Condominiums saw a 16.4% decrease from the previous year to $325,303.00. The boating communities of Punta Gorda Isles and Burnt Store Isles also saw single family homes selling for 20% less this April compared to April 2022, as the average selling price dropped from $1,043,625.00 to $835,166.00. Condominiums experienced a 13.25% drop as the average selling price adjusted from $422,510.00 to $383,854.00.

While the numbers may have adjusted, take heart. Most would agree the valuations of their homes are still significantly higher now than they were prior to the pandemic. For those who bought at the high during the pandemic, I would venture to say you are enjoying your lives here in Florida. For those looking to sell at this time, keep in mind the market isn’t the same as it was during the pandemic. Inventory is a bit higher and buyers are being more patient and looking for prices that aren’t as inflated. The good thing to consider is with the lower prices buyers are going to start reentering the market, but they are factoring in higher interest rates if they are financing, along with high costs association with insurance. With remodeling costs remaining high, these are the factors buyers are keeping in mind when purchasing a home. Homes are selling if they are being perceived to be competitively prices to others on the market when factoring in the cost to remodel along with the price to purchase the property.

Press Release: Cardillo is a Certified Luxury Home Marketing Specialist™

Gary Cardillo — Wed, 15 Feb 2023 20:06:12 +0000

“Gary Cardillo with The Gary Cardillo Group of RE/MAX Harbor Realty Punta Gorda, FL has earned The Institute for Luxury Home Marketing’s Million Dollar GUILD™ recognition for experience, knowledge, and expertise in million-dollar and above residential properties.

Cardillo is a Certified Luxury Home Marketing Specialist™ (CLHMS), an exclusive group of real estate professionals who have completed The Institute’s training and have a proven performance in the upper-tier market.

“Agents who have earned the CLHMS designation are performing at the highest level in their community,” said Diane Hartley, president of The Institute. “It takes a superior level of service to be successful and consistently close sales at or above one million dollars. We want to recognize this performance, and give these elite professionals the earned distinction that they are the agent of choice for affluent buyers and sellers.”

The specialized training and ongoing membership with The Institute provide Cardillo with the knowledge and tools to better serve his clients. The GUILD recognition provides evidence of the successful commitment to service at the highest level. “I am always looking for ways to learn and better serve my clients,” said Gary.

Q: What is happening in the real estate market and do you think it is going to crash?

Gary Cardillo — Tue, 01 Nov 2022 18:58:17 +0000

A: I don’t think there is anyone who wasn’t aware how hot the real estate market was since the beginning of Covid, and the frenzied buying characteristic of that time. I’ve often wondered, “Why do humans panic so much, and who started the fear and supplied the response to that fear?” I’m sure many a forest was cleared to produce the paper needed for the consumption of toilet paper that was purchased. And what about hand sanitizer? With hurricanes we see water flying off the shelves and gas being purchased in amounts that could sustain a small town, let alone a single family. This is what happened with the housing market. Someone “Started the fire” as singer Bill Joel wrote in his song, and before you know it the real estate market took off to heights seldom seen before. Now that we’ve all taken a breath and realized Florida isn’t closing its borders to people looking to relocate from the north to purchase a home, we are all settling back to the normal real estate trends. We typically see fewer buyers this time of year as people are just starting to return from their summer getaways, and children are engrossed in school activities. The start of the typical “hot seasonal market” starts in January and runs throughout the late spring and early summer. The slowdown you are currently seeing with fewer buyers in the market is a stark contrast to what we’ve seen with the panic buying the past couple of years, but the sky isn’t falling.

Yes, interest rates will play a role for some, but keep in mind those that purchased homes the past few years paid cash or borrowed around 50%. Those that purchased did so as a permanent move, and not so much as an investment. We don’t see short sales and defaults due to sub prime mortgage lending. In short we don’t see a market crash. In fact we see well priced properties continue to be in hot demand as this part of Florida offers a more affordable way of life than many other areas around the state or country.

What I am hearing is some people who are “hurricane weary” saying they are considering a move, as they don’t want to go through another storm and the cleanup aftermath. If you are one of them, before you do anything please give us a call. This is not a solicitation to list your home and to wish you much success on your move, but to help you decide if making a move is really going to give you the peace of mind and enjoyment you are seeking. People buy and sell real estate on emotion, and that emotional desire is different for everyone. There isn’t an area in the country that isn’t impacted by one form of catastrophic weather or another, but there is a reason you came to Florida. The two pieces of advice we would give anyone giving serious thought to a move would be 1. Research the area you are considering and determine if it really provides you all the things that meet your interests, and not just an emotional escape. 2. Know the value of your home. When Hurricane Charley impacted us there were countless stories of people coming in and preying on the emotions of those most severely impacted, especially the elderly. They agreed to accepting extremely low offers and in some cases even signed over their insurance benefits. Our goal is, and always has been, to give honest advice and insight to the market. If a move is a serious consideration, make sure it is for all the right reasons. Who knows, you may find in a short time your current home and community in which you live offers you the best quality of life you’ve been seeking.

July Housing Update

Gary Cardillo — Wed, 31 Aug 2022 20:19:47 +0000

While some are feeling the effects of higher interest rates and media reports the early stages of a recession are upon us, our housing market continues to remain strong, especially with homes that are well priced. I think it is safe to say the frenzy may be over as the buyers have adjusted to Covid from the panic buying it elicited. Comparing sales in June and July of 2021 to the same time period this year for Charlotte County while there were a 186 fewer homes sold, the average selling price increased from $390,024 to $461,425 or 18.3%. Sarasota County had 442 fewer homes sold during the same period of time however the average selling price of a home increased from $606,904 to $716,607 or by 18%. The fewer number of sales can be attributed to low inventory and supply chain issues that have delayed new construction. We are seeing some reductions in list price from those who wanted to test the market by pricing their homes above what the market would support. Another indication there will be more of a balance in the buyer vs. seller market.

Did you hear?

Gary Cardillo — Tue, 31 May 2022 16:35:49 +0000

Did you hear PUNTA GORDA was ranked #1 as the nation’s most sought-after areas from buyers who are looking at homes in a different metro area from where they live AND we were the only city listed in top 10 in FL #lovewherewelive #garycardillogroup #localagents Read more below from Realtor.com….

Here Are the Most Popular Cities for Homebuyers in 2022—and the Places People Can’t Wait To Leave

By Clare Trapasso

May 3, 2022

The COVID-19 pandemic shook up just about everything—especially where many people live. It caused a mass real estate migration unlike any in recent memory.

Lots of folks traded the cities for suburbs—more space! fewer people!—while others relocated to new, often cheaper, parts of the country. And with the popularity of remote work that allows buyers to live just about anywhere and the growing frustration with record-high home prices, the real estate reshuffle isn’t slowing down anytime soon.

In the first quarter of the year, more than half, 59.7%, of all of the views on the home listings on Realtor.com® came from shoppers based in other metros, according to recent Realtor.com research. That was a 4.6% bump over the same time last year.

Our economics team analyzed the search traffic on Realtor.com to figure out the areas where people wanted to move to—and where they most wanted to leave. We scrutinized the data to determine the nation’s most sought-after areas from buyers who are looking at homes in a different metro area from where they live. On the other end of the scale, the team also found the metro areas where the highest percentage of locals were looking for homes someplace else.

“The pandemic led many Americans to revisit priorities, preferences, and timelines,” says George Ratiu, manager of economic research for Realtor.com. “Worries over health, financial pressures, lifestyle, and well-being were channeled into finding a home in a location which offered ample access to the outdoors, better quality of life, and increasingly important, affordable housing.”

As for trends, we found that the ever-elusive quest for affordability is still driving most preferences. Vacation and retirement destinations are especially popular with those browsing real estate listings from other areas. Some shoppers were looking to relocate, especially those who can work remotely. Others were hoping to purchase a second home, and then there were those who just wanted to dream.

Meanwhile, folks in the more expensive cities, colder parts of the country, and college and military towns seem to be looking for exit strategies. Folks in the chilly and pricey Northeast were the most likely to look at homes in other parts of the country. About 37.2% of them viewed properties in different regions. About 26.4% of folks from the Midwest, 25% of those in the West, and just 11.3% of people in the South also searched Realtor.com for residences located elsewhere.

To track the moves, the Realtor.com analysis covered the 300 largest metropolitan areas in the first quarter of 2022. (A metro area encompasses the main city and surrounding towns and smaller urban areas.) We limited the list to just one metro per state to ensure geographic diversity.

OK, let’s start with the most popular list—a tour of the most desired destinations for homebuyers right now!

1. Punta Gorda, FL
Percentage of Realtor.com home listing views from outside of the metro: 90.12%
Median home list price: $430,000*

2. East Stroudsburg PA
Percentage of listing views from outside of the metro: 89.1%
Median home list price: $322,000

3. Kahului, HI
Percentage of listing views from outside of the metro: 88.3%
Median home list price: $1,197,500

4. Rocky Mount, NC
Percentage of listing views from outside of the metro: 88.3%
Median home list price: $232,500

5. Prescott, AZ
Percentage of listing views from outside of the metro: 87.9%
Median home list price: $622,300

6. Claremont, NH
Percentage of listing views from outside of the metro: 87.5%
Median home list price: $400,000

7. Hilton Head Island, SC
Percentage of listing views from outside of the metro: 85.9%
Median home list price: $522,000

8. Santa Fe, NM
Percentage of listing views from outside of the metro: 85.9%
Median home list price: $879,000

9. Decatur, AL
Percentage of listing views from outside of the metro: 84.9%
Median home list price: $268,000

10. Barnstable Town (Cape Cod), MA
Percentage of listing views from outside of the metro: 84.7%
Median home list price: $849,450

Real Estate Update-“Nearly half of home buyers pay cash”

Gary Cardillo — Thu, 24 Mar 2022 18:00:02 +0000

By NANCY J. SEMON STAFF WRITER “Charlotte Sun Newspaper”

Homes sales strong despite holidays

January traditionally is a slower month for real estate sales, and although closed sales were down from December, the market shows no sign of slowing.

“There is a 30-day lag and due to the holidays in December, Realtors were not writing as many contracts; January is even lower than the summer months,” said Sharon Neuhofer, president of Realtors of Punta Gorda-Port Charlotte-North Port-DeSoto, Inc.

She said in some parts of the nation, rising interest rates might be attributed to slowing home sales, but not in our area.

Many buyers in Southwest Florida are paying cash, so the mortgage interest rates do not affect them, she pointed out.

In January, when there were 323 closed sales of single-family homes in Charlotte County, 46.4%, or 150 buyers, paid cash.

Neuhofer said beside January’s traditional slowdown in sales, Realtors “have buyers we don’t have houses for.”

She said current low inventory levels means would-be buyers do not have a lot to choose from, and when they do find a house, often there are multiple parties interested.

“You can’t sell what we don’t have,” she said.

The same scenario held true for townhomes and condominiums. Of the 66 closed sales, 47 buyers paid cash, or 71.2% in January.

But while the median and average sale prices of single- family homes in January was lower than in December, the median and average price of townhomes and condos was higher.

SINGLE-FAMILY HOMES

The median sale price in January was $346,500, compared to $350,000 in December. The average sale price of $407,678 was also lower than December’s $450,671.

For 11 consecutive months, sellers were getting 100% of the original listed price.

The median time to sale was 57 days, and time to contract was 12 days. There were 370 homes in inventory in January, which represented a 0.9 month supply.

The inventory level from a year ago was down 30.8%.

TOWNHOMES AND CONDOS

The median sale price in January stood at $287,000, up from $269,950 in December.

The average sale price was $312,069 versus $296,717 in December.

The median percentage of the original listed price was 100% in January, continuing a nine-month trend.

Inventory stood at a 0.6 month supply, the same as it was in December. The inventory level was down 77.8% from a year ago.

Those wanting to sell should “know what you’re going to buy, or you could wind up homeless,” Neuhofer said.

QUICK SALES

She said with cash buyers coming to buy in Southwest Florida, homes are being bought up quickly.

The median time to contract for single family homes in Charlotte County was 12 days, and the median time to sale was 57 days — under two months.

But in some cases buyers will offer incentives — such as a higher price — if sellers agree to move in 30 days.

The median time to contract for townhomes and condos was similar — 10 days, and 53 days for the median time to sale.

January saw 671 single family homes about to come onto the market in February, and 119 townhomes and condos.