Naples Florida Real Estate 1st Quarter Market Report 2012

Posted on May 1, 2012 by Dustin Beard

Closings and Inventory

Following three years of increases for the quarter, closed sales for the period appear to be stabilizing. Despite a slight pull-back from Q1 2011, first quarter 2012 is the third most active in the past 13 years. Average and median sales prices increased over 2011 with the average price at its highest level for the period since Q1 2007 and median price the highest since 2008.

Inventory continued to decline and on April 1, 2012, there were 7,625 units in the Naples, Bonita Springs, Estero market available through Sunshine Multiple Listing Service. This represents only 50% of the available supply at the end of first quarter 2008. At that time there was just over a three year supply of product, while today it stands at less than nine months.

NEW LISTINGS AND PENDED SALES

The number of properties placed on the market in the first quarter continued the downward trend for the period, dropping 7% from Q1 2011. The largest declines were in the segments priced under $250,000 and those priced between $750,000 and $1,000,000.

All price segments showed increases in the number of pended sales with the exception of properties priced under $250,000, which declined 16% from first quarter 2011. Properties priced above $1,000,000 were up for the third consecutive year with an increase of 9% over prior year.

SUMMARY

Demand for Southwest Florida properties remains strong. On a rolling twelve month basis,
the number of annual sales has stabilized around the 10,000 level since April 2010. Although demand has remained consistent at this level, inventory continued to decline another 23.5% during this period. Short sales and foreclosures as a percentage of the overall inventory are also decreasing. In march 2010 there were 1,687 distressed properties in inventory representing 16% of the market. At the end of first quarter 2012, this number stands at 788, comprising only 10% of available units.

Dustin will carefully monitor inventory levels, pended sales activity and price fluctuations over the coming months to determine if new trends are emerging. Diminishing inventory coupled with sustained demand could signal the beginning of escalating prices if it continues.

To learn more about market dynamics in your neighborhood, contact Dustin Beard at (239) 289-2650. Visit our award-winning website  to preview all of Southwest Florida’s finest properties.  http://paradisecoastnaplesrealestate.com/search-naples-real-estate

“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2012 Sunshine MLS, LLC. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.”
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Gulf Shore Boulevard Market Report 1st Quarter 2012

Posted on May 1, 2012 by Dustin Beard

Quarterly Number of Closed Sales

Bayfront properties continued to sell at a brisk pace, setting a new first quarter record with 27 closings. The number of closed sales on the beachfront posted a pull-back from first quarter 2011 with 44 closed sales vs 64 last year. Closings that occur in the first quarter were typically pended during the fourth quarter, which is historically the slowest for beachfront sales. Sales in this segment are highest during first and second quarters, so closings will likely show increases during the second and third quarters.

Quarterly Average Sales Price – Closed Sales

Average sales price on the beach at the end of the first quarter is $1,054,409. This represents a slight increase over Q1 2011 and is the third consecutive first quarter of stable prices in this segment.

The Terraces and Gulfside posted the highest number of sales with four closed sales in each building.

Average sales price of bayfront properties also appears to have stabilized with an average for the first quarter of $425,407 vs. $422,899 for the same period 2011. The most active buildings on the bay were Charleston Square and Ambassador Club with each recording four sales for the period.

Summary

Inventory of available beachfront properties is down 14% from first quarter 2011 and bayfront supply is down 35%. On April 1, 2012 there were 218 properties for sale on the beach and 59 on the bay. Based on closings during the past 12 months, there is approximately a one year supply of product on the beach and eight months on the bay. Given the strong first quarter, these levels are expected to continue to decrease going forward.

Gulf Shore Boulevard remains one of southwest Florida’s most desirable locations and demand is expected to remain strong throughout 2012. Prices continue to be attractive, but diminishing inventory will have an impact on this variable at some point.

Dustin Beard monitors inventory levels, sales activity and prices in each condominium
building on Gulf Shore Boulevard. If you are considering selling or purchasing in this area,
contact Dustin for specific information on your personal area of interest. All properties currently for sale through Sunshine Multiple Listing Service can be viewed at http://paradisecoastnaplesrealestate.com/search-naples-real-estate

“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2012 Sunshine MLS, LLC. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.”
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Median Sales Price in Naples Increases as Inventory Continues to Decrease

Posted on May 1, 2012 by Dustin Beard

Closed Sales

March 2012 remained the same as March 2011 with 22 closings priced at $2,000,000 or more. However, the price segment between $500,000 and $750,000 posted the biggest gains for the first three months of 2012 with a 34% increase over prior year. Additionally, the average sales price year-to-date is the highest in four years, and the median sales price increased 9% over this time in 2011.

Pended Sales

March 2012 pended sales priced at $1,000,000 and higher showed a 32% increase over March 2011. The pended sales year-to-date showed a slight decrease from 2011, but remains among the highest on record for the period.

New Listings

Inventory is decreasing, as the number of properties placed on the market in March 2012 is the lowest for the month in nine years. On April 1, 2012, available inventory in the combined Naples, Bonita Springs and Estero market was just 7,625 units (4,106 condominiums and 3,519 single-family homes). This represents a 5% decrease from April 1, 2011 and is approximately an 8.9 month supply based on closings for the past 12 months.

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4 Money Rules That Will Give Your Financial Life a Boost

Posted on May 1, 2012 by Dustin Beard

Money Rule #1: Personal Finance Is More Personal Than Finance

When it comes to your money, you have to make the decisions that are right for you and your family – not right for your best friends or your siblings or even your mother.  That may mean leaving cash in the bank because it enables you to sleep at night while the “experts” are telling you to invest that money so it can grow. It may mean making a lateral move at work because you think you’ll enjoy the work more than what you’re doing now.

Money Rule #2: Your Retirement Trumps Your Child’s Tuition.

If you don’t save for your own future first, you won’t be able to help your children when they need it. Worse, they may be forced to help you just when they’re trying to put their own kids through school. There is no financial aid for retirement but there is plenty of financial aid for college.

Money Rule #3: Don’t Shop Angry, Sad or Hungry

Shopping angry makes you more likely to say “what the heck” to unfortunate purchases, to spend or invest money on a whim. Shopping while sad makes you eager to buy just about anything. Shopping hungry makes you spend more money not just on food, but on everything.

Money Rule #4: Give Back

People who spend money and time on charity are healthier and happier. They sleep more and exercise more and that puts them in a better frame of mind. Grateful people are less likely to be felled by depression or stress-based ailments

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Closed Sales are up in February 2012; March activity shows no signs of slowing down

Posted on March 27, 2012 by Dustin Beard

Listed, Pended, Closed Year to date February 2012

Listed, Pended, Closed Month of February 2012

Breakdown by Price Category Year to date February 2012


Closed Sales. In this month’s John R. Wood Market Report, closed sales priced above $1,000,000 continue to rise with 49 closings in Feb compared to 42 closings this same time last year. During the first two months of 2012, median sales prices are at the highest level for the same period since 2008. Additionally, properties priced between $500,000 and $750,000 posted the biggest gains over prior year with a 30% increase over year-to-date 2011.

Pending Sales. Regarding pended sales, February 2012 is the third highest on record for the month. The number of pended sales between $500,000 and $1,000,000 is up 31% over first two months of 2011; the largest increase of any segment.

Listings. The number of new listings taken in February is the lowest for the month since 2005. On March 1, 2012, available inventory in the combined Naples, Bonita Springs and Estero market stands at 8,059 units (4,336 condominiums and 3,723 single family homes). This represents a 9.2 month supply based on the number of closings in the past 12 months.

“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2012 Sunshine MLS, LLC. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.”

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Neighborhood Snapshot Report – March 2012

Posted on March 27, 2012 by Dustin Beard

Monthly Active/Closed Snapshot
12 Month Sold Comparison Report for Select Communities

“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2012 Sunshine MLS, LLC. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.”

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Good and Bad Reasons to Change Your Portfolio

Posted on March 27, 2012 by Dustin Beard

There are plenty of reasons to make changes to your portfolio; some are good reasons, and some are not. Here are four good reasons to make a change:

More diversification. Diversification lowers the risk of your portfolio without lowering its expected return. That’s why it’s often called “the only free lunch in investing.” Here are a few ways to order off the free menu:

  • If you invest in individual stocks, switch to a broad stock market index fund.
  • If you only invest in US stocks, add international stocks.
  • If you only invest in stocks, add bonds.

Lower costs.  If you own expensive mutual funds charging an expense ratio of 0.5% or higher, you can save a ton of money by choosing cheaper funds. If your 401(k) only offers expensive funds, lobby for better investment options.  Lowering your stock allocation—that is, putting a smaller share of your money in stocks and more in bonds—isn’t an admission of defeat; it’s a step on the path to success.

Simplify. If you have too many overlapping funds or a bunch of leftover 401(k)s from previous jobs, it’s worth consolidating down to as few accounts and as few funds as you can. People with complicated portfolios tend to lose track of what they own and why. You’ll probably end up more diversified and with lower costs by simplifying, too.

Get tax-efficient. Tax-efficiency is probably the most incomprehensible topic in investing.

Here are a few bad reasons:

A friend gave you a tip. Professional investment analysts go blind staring at computers 60 hours a week to find the best investments. Does your friend really know more than they do?

You heard something scary in the news. Thanks to the internet, you can find terrifying and seemingly actionable financial news 24-7. Unfortunately, you can find a bullish or bearish expert for any type of asset, and most of them are not much better than a Ouija board at predicting the future.

Any time you consider making a change to your portfolio, ask yourself: am I doing this to get more diversified, lower costs, bring my portfolio in line with my risk tolerance, get tax-efficient, or simplify my holdings? Or am I trying to predict the best or worst investment of 2012, something no one can successfully do until 2013? If it is within the latter group of answers, re-read this article!

Source: Mintlife.com

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Best Times to go Shopping in Naples

Posted on March 27, 2012 by Dustin Beard

In Southwest Florida, we are lucky to live in a region that offers world-class shopping. From 5th Avenue and 3rd Street South to the Mercato to Waterside Shops – we have it all! If shopping for the latest in designer wear is your thing, this article gives you the best times to shop and when to get the best deals!

Thursday Evenings. Stores typically reorganize their racks on Thursdays in order to replenish stocks for the weekend rush. Stores also generally mark down items that will be on sale over the weekend on Thursday evenings.

Six Weeks into the Season. If you’re in need of clothing for the current season, try to avoid giving in to the urge to buy all the exciting new arrivals when they’re first in the store. About six or eight weeks after an item arrives, the price is marked down. If you can wait a measly six weeks, you’re likely to get a better a price than if you buy immediately.

End of (or out of) Season. If your clothing size doesn’t change much from year to year, stocking up on clothing at the end of the season is a great way to save money and have a good supply of new clothing available for next year. This works well for many classic or staple items, like suits, pants, jeans or cardigans that aren’t prone to going out of style too quickly. Trendy items may be a riskier purchase, as they tend to become passé after a season or two.

Scout the Sales Online. Many popular clothing retailers allow consumers to subscribe to their newsletters online. Many stores send out advance notice to their subscribers of big sales, or perhaps even allow subscribers to pre-shop at special events. If you get the newsletter, you’ll know when all the promotions are happening at your favorite stores and you will be able to anticipate a markdown on those clothing items you’ve been admiring.

Discount and off-Price Retailers. Not interested in planning your shopping trips according to seasons and sales? Discount and off-price clothing stores can be a great choice. These stores typically buy large volumes of clothing from stores that have excess inventory, are clearing space for new merchandise or have gone out of business.

The Bottom Line

Though these guidelines will definitely get you a deal, also keep in mind that bargains can be found at any time during the year and in every season. It’s just a matter of scoping out the sales and having the courage to battle the crowds.

Source: Investopedia.com.

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Neighborhood Snapshot January 2012

Posted on February 21, 2012 by Dustin Beard

Monthly Active/Closed Snapshot
12 Month Sold Comparison Report for Select Communities

Information contained in this report is current as of February 1, 2012.

“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2012 Sunshine MLS, LLC. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.”

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Rethinking CDs as an Investment

Posted on February 21, 2012 by Dustin Beard

People generally think of CDs as investments for risk-averse retirees. Also, you can’t usually buy CDs inside your 401(k) or other workplace retirement plan.  Despite this, CDs have some peculiarities that make them worth a look, even if you’re a long way from retirement. According to Certified Financial Planner Allan Roth (who did not invent the Roth IRA) you should also consider using CDs as a replacement for bonds in your retirement savings.

Why? Because CDs offer two features bonds don’t:

Higher interest. Right now you can buy a 5-year U.S. Treasury bond paying 0.92%. An equally safe FDIC-insured 5-year CD from Ally Bank pays 1.79%. A 7-year CD from PenFed Credit Union pays 2.75%, while the comparable Treasury bond pays 1.49%.

Less interest rate risk. When interest rates go up, bond prices go down. That’s not true of CDs, which don’t fluctuate in value. If rates go up, you can just break the CD, pay the penalty and buy a new CD—or a bond, if bond rates are superior in the future.  Of course, if interest rates go down, CDs don’t go up in value, either.

We could also compare CDs to a broad-market bond index fund like the AGG ETF, which has a yield of 2.04% and duration of 4.3 years. That’s not terribly different from the rate on the Ally Bank CD and it introduces default risk. About a third of the bonds in the index fund are corporate bonds, which are riskier than U.S. government bonds.

So, you’re getting almost the same yield and have less default risk and far less interest-rate risk. Why should this situation persist? “There’s this inefficiency we can take advantage of that Goldman Sachs cannot,” Roth says.

For more information on using CDs as investments, click HERE.

If you’re a more of a hands-on investor and want to add some CDs to your portfolio, you can buy them for your traditional or Roth IRA at most banks and credit unions.

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