The big question everyone is asking these days is "When will the bottom of the real estate market occur?" The bottom of the market may be closer than you might think.
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Naples, Florida News By Amerivest Realty
March 31, 2008
Signs of Real Estate Market Bottom
Naples intern calculating city’s greenhouse emissions
The job of calculating a city’s greenhouse gas emissions might sound as insurmountable as counting grains of sand on Naples beach. But Naples is going to try.
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March 30, 2008
"Get Back in the Saddle, Get Back in the Game"
Grant Simon, nationally known motivational speaker and owner of First Florida Mortgage in Orlando was guest speaker at the monthly career building session of Amerivest Realty of Central Florida in Winter Park. Mr. Simon talked about today’s exciting opportunity for buyers to purchase a home.
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March 29, 2008
Latest Real Estate Fad - Hunting for Foreclosure Deals
During the housing boom, investors climbed onto buses where they checked out affordable new homes they could buy low and sell high. Now, the bus tours to those edge suburbs are starting again. But this time, home buyers are looking for foreclosure properties they can flip for a for a profit.
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March 28, 2008
New Naples Florida Directory Service
Great place to post websites related to Naples, Florida and other US cities and towns..Visit TownIt.com today...
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March 25, 2008
The end of the real estate slump may be near
Unexpected increase of home sales on national, local level gives hope to many
Naples Daily News
By TOM HANSON (Contact)6:20 p.m., Monday, March 24, 2008
Home prices and buyers may have finally met their match.
After falling for six straight months, sales of existing homes on a national and local level posted an unexpected increase in February. The National Association of Realtors reported sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units.
In Lee County, existing home sales climbed 32 percent this past month with 445 homes sold in February, according to numbers released Monday by the Florida Association of Realtors, compared to January’s 338 total. The Naples Board of Realtors reported a slight decrease last week.
The reason for the spike is simple. The prices are falling.
The average price of a home in Lee County dropped dramatically from $234,000 in January to $211,000 in February. It’s the lowest median price in Lee County since the $197,000 tag in November of 2004.
“The real estate offices have cracked down and are not willing to take on listings that are not realistic,” said Sherry Haas, president of the Bonita-Estero Board of Realtors. “You have it priced to sell. This is all encouraging.”
The Naples Area Board of Realtors (NABOR) saw a similar trend with lower priced homes. Single-family home sales below $300,000 increased to 45 sales this February from 27 last year; condo sales in the same price range increased to 83 sales from 61 last year.
Meanwhile, prices in the lowest Naples Florida bracket dropped: single family-homes sold at a median price of $211,000, down $46,000 from last year, and condos sold at a median price of $200,000, down $30,000 from last year. NABOR reported sales of homes and condos in the Naples were down from 304 to 289 in the past year.
Nationally, the median existing sales price in February fell to $195,900. That was the largest year-over-year drop on records that go back to 1999.
Lawrence Yun, chief economist for the National Association of Realtors, said that prices in some formerly hot markets in California and Florida were seeing significant price declines now as sellers try to attract buyers.
Median prices in Florida fell 16 percent to $198,900, with the Miami area dropping even further at 20 percent. Unlike on the national level, sales in the state fell 25 percent.
Analysts cautioned against reading too much into the one-month rise in national sales. Many economists are predicting that the steep slump in housing will not bottom-out until later this year after prices fall further and allow huge levels of unsold inventories to be reduced.
“We’re not expecting a notable gain in existing-home sales until the second half of this year, but the (February) improvement is another sign that the market is stabilizing,” Yun said.
Haas said in the Bonita-Estero area, the market is picking up with even more pending sales for March. She said she doesn’t have a crystal ball to predict the future but she is optimistic the end of the slump is near.
“We see a little shimmer of light at the end of the tunnel,” Haas said.
- - -
Staff writer Laura Layden and The Associated Press contributed to this story.
March 24, 2008
Is Real Estate Still Fun?
Maybe yes…maybe no. It depends who you’re talking too. There is something different about this current downturn in the market.
Brokers have been used to cyclical markets and for the most part they are pretty tough lot. I talked with a 30 year plus veteran of real estate that has had a family business for well over 30 years. In today’s economy how long can one go without a profit? He said next Sept. is the litmus test for him…and he owns his own building, but what about the small to medium sized brokerage that is paying $7,000 to $9000. Per month rent to fight the current market battle, when will they decide if the business is still fun?
An agent of a national brand franchise told me yesterday her broker is answering his own phones and has cut all advertising and promotion from a company standpoint.
Some would suggest residential real estate hasn’t been much fun for a long time, maybe since the advent of RE/MAX or the 100% commission concept, where the agent pays a desk fee. This concept has driven the average commission from 50% to over 70% in the last 30 years.
When a brokerage adds to the commission owes, the cost of operation the risk vs. rewards picture doesn’t look good at all. It is my belief that by the end of 2008 as many as 30% of the small to medium sized brokerages including franchises will close their doors in Southwest Florida dispersing their agent count across the larger independent companies and large franchise based companies, resulting in a 10 to 15% loss in agent count as well to the industry. The decrease in agent count is not a bad thing, because the fact remains we don’t need 2 million real estate agents to do 5.6 million transactions nationally.
Today the harsh reality of the market is sales have decreased by 50% since the boom times. Values have plummeted and consistently appraisals are coming in lower than the asking price. This tells me the average consumer just doesn’t get it. Zillow reported last week their survey showed that well over 36% of those surveyed thought the price of their home actually went up last year. (Come on now!)
The news media has taken the industries advertising dollars in one section of the paper and beat us up in nearly ever other section. i.e. Front Page, Business and Local news.
We all know bad news is what sell’s newspapers, and we know they are having increasing difficulty sell them anyway. Newspaper readership is down all over the country, with several major area newspapers going out of business. (Philadelphia for example)
For over the past year real estate activity has been down, sales down, listing inventories at all time high’s, open house activity at a stand still, mortgage defaults at all time highs, short sales are back in vogue and foreclosures are climbing as homeowners are willing to just walk away.
The current mortgage market is reserved to those borrowers with perfect credit. Buyers are confused by the media and slow to pull the trigger to purchase even on the best of buys, leaving sellers angry with anyone who doesn’t have a quick fix.
Thousands of sub-prime lenders are gone from the marketplace along with many more thousands of workers. Many brokerages have all ready closed shops, while another 30% will by the years end. Builders have cut construction crews, slashed home prices of current inventory by up to 40% and many just walked off and abandoned homes that weren’t completed. Thus leading to our current economic owes…The old saying is: “If you’re out of a job it’s a recession…If I’m out of a job it’s a depression.”
How did we get to this point? Greed and the Push for Profit! How bad will it get? We have probably seen the worst of it and the market has come very close to bottoming out, yet there will be more foreclosure’s and short sales along a long slow recovery for the real estate industry leading to a prolonged buyer’s market with extremely good buy’s. When will the current buyer’s market end? Probably well into 2010!
Some of the pundits have said no government bail out…yet, the Bush administration has agreed to a 200 billion dollar tax stimulus package, They also said: “Nor would their be any substantial relief for Wall St. who have lost their shirts,”
Yet, days later they are bailing out Bear Stearns with a stock that was selling for over $170. per share one year ago.
Chase bailed them out of collapse at $2.00 per share, with government guarantees, so no maybe we haven’t seen the complete end to it. However, one must remember the bright side of this.
There are 130 million households in America, approximately 35 million of those are renters, and another 27 million own their home outright, according to the U.S Census Bureau data. Even should we hit 2 million foreclosures that is only 1.5% of the U.S. Households? But, remember why we are here greed and profit. Why should we bail out lenders who financed people with 520 credit scores with 100% financing. These people have nothing to lose by walking off and renting again, letting the taxpayer pay for their mistakes, or, the investor who wanted to buy pre-construction and flip the property for a handsome profit before ever closing on the property.
The bottom-line is simply real estate always has been and always will be cyclical in nature, and driven by supply and demand. The fact remains:
· Like all other markets we are driven by supply and demand
· We do not need 2 million Realtors to do 5 or 6 million transactions
· Fair lending practices must be in place
· People with 520 credit scores should not be able to buy houses
· It’s not the governments job to bail out people who shouldn’t have been in the market in the first place
· Lenders who loaned into those scenarios should not be bailed out nor should their investors
· Part of the correction is walk away owners returning to the rental market and qualified first-time home buyers and true long term investors taking those properties off the market.
In a cyclical business the deepest fear is that the good market won’t last forever. Yet, the same is true for the bad market, as it won’t last forever either. The buyer market will continue for the next several years because it was long overdue for correction on the affordability index. This is good news for Realtors who understand how to get buyers, and investors who can profit from the buyers market. Especially first –time buyers it might well be there best hope for the future.
The bottom-line is, I see us scooting across the bottom for several years in a long over due buyers market while this major price adjustment takes place. When we look at this in retrospect we will come to remember what really drives the market:
· First-time home buyers
· Death
· Divorce
· Job transfer
· Empty-nesters
· Investors
Remember this: Our Creator doesn’t decide when someone is going to die based on the interest rate or the economy. When it’s all said and done people will buy and sell on the factors listed above, understanding we still need the Realtor…we just don’t need 2 million of them. And 1.3 million of them are with the national Association of Realtors. They are part of the problem in that they benefit from quantity not necessarily the quality. Note: We need far less Realtors, far less MLS services, far less mortgage broker’s, we don’t need a bank on every corner like gas stations used to be. With online capabilities where they are today, we probably 8 to 12 regional MLS services would be plenty. Educational requirement and fees increased should take the Realtor count to somewhere between 500,000 to 700,000. The same is true for Local Boards of Realtors, and State Associations. (Like the Regional MLS’s; there should be, fewer Regional Associations all funded by fewer Realtors.)
The fact remains today is one of the best times in years to buy a home! It’s affordable, interest rates are low, and inventory is up…it just doesn’t get any better than that.
Submitted & Posted for
Bob Burns CRS, e-PRO, RECS Industry Consultant
P.S. Agents who truly want to survive the cut, must mentor under one who has a System that focuses on building and maintaining a Quality Business-Base, a Follow-Up System for high touch repeat business and Referrals. And finally have a Lead Generation System that helps them meet their Job Description of uncovering at least 1 new prospect to buy or sell a home each and every working day. If you don’t have it you just as well get out now!
March 23, 2008
Myrtle Beach Real Estate Market Improving Slowly
Other resort & 2nd home market show signs of improvement!
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March 21, 2008
Pending Sales Increased 10.6% Breaking 28-Month Trend
NABOR REPORTS FEBRUARY REAL ESTATE TRANSACTIONS
NAPLES, Fla. - March 17, 2008 - For the third consecutive month, real estate activity in the Naples area steadily increased, with condo sales and single-family homes under $300,000 leading the way, according to a report released by the Naples Area Board of Realtors® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island).
Most notably, February marked the end of a 28-month downward trend of pending home sales, which increased 10.6 percent overall from February 2007.
NABOR President Arlene Carozza, a Realtor® and corporate trainer with Amerivest Realty, attributes the increased activity to lower median prices, reduced interest rates, abundant inventory and common sense."Buyers have realized the incredible values that are currently available and will most likely be gone by next season," Carozza stated. "As the lower priced inventory is absorbed, there is nowhere for prices to go but up."The report, which provides annual comparisons of single-family home and condo sales (via the Multiple Listing Service), price ranges and geographic segmentation, also includes an overall market summary.
The statistics are presented in chart format, along with the following analysis:
"There is tremendous activity in the low end of the market," said Jo Carter, president of Jo Carter & Associates, acknowledging that homes less than $300,000 is the best-selling category right now. "Properties that are priced realistically are being sold."Tom Bringardner, president of Premier Properties, predicts this activity will have a domino effect. "In a traditional market recovery, as the lower priced product is sold, it pushes buyers into the higher price ranges."To view the entire February report, go to http://www.naplesarea.com/.
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March 11, 2008
Amerivest Realty Announces February Leaders
Closings By Dollar Volume:
Judi Gietzen
One of the many developments Judi specializes in is Wildcat Run where she is also a resident. Wildcat Run is a 584 acre golf course community, features a championship golf course designed by Arnold Palmer, his first in Southwest Florida.
http://judigietzen.com/
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Closings By Number Of Transactions:
The Foster Team
The FosterTeam is the prominent waterfront real estate professional team in Naples and Bonita Springs. Bridgette and Gene Foster are dedicated to providing the finest service available while breaking new ground. Constant research of the market and effective innovative marketing of your property is what we use to help meet your real estate goals.
Thank you for considering The Foster Team and we look forward to working with you! Our Web Site is http://golfngulfnaples.com/
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New Listings By Dollar Volume:
Elizabeth Garnelo
Elizabeth is fluent in both english and spanish. Call Elizabeth to help you find your new home or condo!
On the web at http://elizabethgarnelo.com/
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New Listings By Number of Properties:
Marcie LaRochelle.jpg)
With many years of experience in the real estate business, Marcie works effectively and successfully with both buyers and sellers. Property owners are especially impressed with the high level of service she provides, as well as her finely tuned marketing skills.
Visit her on the web at http://marciesellsnaples.com/
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NOTE: At Amerivest Realty our leaders are selected based on their performance over the prior 12 months, not just the most current month. These are proven, dedicated performers, not just one month wonders. An associate or team may only win one category each month and only once a year.
March 9, 2008
David Cole, Realtor of the Year!
Amerivest Realty would like to congratulate David Cole as the Naples Area Board of Realtors, 2007 Realtor of the Year!
Laura Layden of the Naples Daily News Wrote:
When David Cole sets his mind to something, he gets it done.
And he does it the way it should be done.
For everything he’s done for the Naples Area Board of Realtors (NABOR) and the community, the association on Saturday night named him Realtor of the Year during its annual Night of Honors at the Grey Oaks Country Club in Naples, Florida.
“He demonstrates a lot of leadership and integrity in everything he does,” said Joe Ballarino, broker and president for Amerivest Realty in North Naples.
The Realtor of the Year Award recognizes outstanding accomplishments made in the past three years. Winners must have been involved in NABOR for at least eight years, and exude a positive image for the industry.
Cole, a licensed Realtor and broker, is director of business development at Amerivest Realty. Since joining NABOR in 1994, he’s served on 11 project teams and committees for the local and state associations.
He’s been especially active with NABOR’s political action committee, where he’s organized events and served as chairman in 2006 and 2007.
“If he took on a volunteer role at NABOR, he made sure the job got done,” Ballarino said. Cole served on NABOR’s board of directors for five years. In 2003, he was elected vice president/secretary.
At one time, he was treasurer of the SunshineMLS LLC Board of Managers and also served as president of the Realtor Association of Greater Fort Myers and the Beach.
Cole has worked in real estate for more than 23 years. He’s spent 19 of those years in Southwest Florida.
Before joining Amerivest Realty, he was broker/vice president of operations at VIP Realty Group in Fort Myers, one of the largest firms in the area with six offices and 232 agents. He owned his own Century 21 franchise, and worked as a sales associate at Re/Max Realty Group.
Read the full Naples Daily News Article Here.
March 2, 2008
Move Inc. reports $5.3 million Q4 loss
Realtor.com is ran by Move Inc., they have continued to struggle to make a profit. As a Realtor, I can only hope to see NAR (National Association of Realtors) separate itself from a company running a site with a bad business plan.
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America's Debt Crisis Lot Worse Than Reported / $48 Trillion
Last year total debt increased $3.9 Trillion, 5 times more than GDP.External debt owed foreign interests increased $1 Trillion;Household, business and financial sector debt soared 9%.72% ($35 trillion) of total debt was created since 1990,a period primarily driven by debt instead of by productive activity.
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March 1, 2008
Developer experimenting with green roof
The rooftop garden is an experiment that Bonita Bay is doing for the Florida Department of Environmental Protection. The DEP wanted to find out how effective green roofs are and what plants, watering system, filtration, and soil do the best job.
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