41% increase in sales. Anybody noticed this "micro-boom"? (Cape Coral: short sales, foreclosed)

[SoFLGal]

I live and sell real estate in the North Port area and we have seen a huge increase in closed sales in May. Now, I'm not saying that prices are increasing but the amount of homes sales has dramatically increased.

The two types of buyers that we are seeing are:
People that were renting are now jumping into being home owners because they can finally afford the home prices.

Many retirees or second home owners are buying because they see that they can now fit it into their budget.

Another thing we've seen in the last few weeks are that the banks with the foreclosed property don't see to be as willing negotiate on price. Many banks are starting with a reasonable list price and getting multiple offers.

Each area is very specific, for example-in North Port there are over 300 foreclosures and 15 miles south in Punta Gorda there are maybe 10. In North Port many people bought for speculation and in Punta Gorda most homes sold to end users.

So that's pretty much what I'm seeing being on the front lines.

[121804]

Originally Posted by SoFLGal

I live and sell real estate in the North Port area and we have seen a huge increase in closed sales in May. Now, I'm not saying that prices are increasing but the amount of homes sales has dramatically increased.

The two types of buyers that we are seeing are:
People that were renting are now jumping into being home owners because they can finally afford the home prices.

Many retirees or second home owners are buying because they see that they can now fit it into their budget.

Another thing we've seen in the last few weeks are that the banks with the foreclosed property don't see to be as willing negotiate on price. Many banks are starting with a reasonable list price and getting multiple offers.

Each area is very specific, for example-in North Port there are over 300 foreclosures and 15 miles south in Punta Gorda there are maybe 10. In North Port many people bought for speculation and in Punta Gorda most homes sold to end users.

So that's pretty much what I'm seeing being on the front lines.

Out of curiousity, what were homes sales last year & were they even in the positive %? I should remember b/c I was living there & this was right about the time we put an offer in on a home...

For what the median income for working folk is in Charlotte County, I do hope prices continue to fall & that home ownership will become a possibility for those who have to work 9-5 on SWFL wages & are not just retiring there.

I've been tracking a house we were interested in last year. Still for sale. $43k less. It is interesting in that part of the state, that is for sure.

SoFlGal- Are you seeing a mix in demographics or a pattern of those who are putting in offers? Are those who need to generate income working in the city or the surrounding larger ones? (I just find it interesting...not trying to nitpick or be petty, etc etc. Just curious. Thanks.)

[SoFLGal]

121804-Looking at my sales for May here's how they break down. Hopefully this explains what I was trying to say ==I had 11 closings in May:

Closing #1 I had the listing so I don't know about the buyers

Closing #2-She was buying a retirement home and moving from Tennessee

Closing#3-They are retiring in a year and bought early to take advantage of the low prices. Moving from West Point, NY

Closing #4-Investment for a service man in Iraq. He will rent the home until he comes home.

Closing #5-Moving to Florida from Rochester, NY. Husband and new wife are combining households with the mother-in-law.

Closing #6-Another service man investing because the prices are down. Renting the home until he retires.

Closing #7-Using the home as a second home/vacation home.

Closing #8-Moving to the area from NY and retiring down here.

Closing #9-Young couple who was renting and now can afford a home. They were renting in Sarasota and now can afford a home in North Port. She works in the medical field in Venice and he works in Sarasota for a TV company.

Closing #10-Young couple moving from renting in Cape Coral to owning in North Port. She is a teacher and he is in property management.

Closing#11-Young couple moving from Jacksonville. He is a yacht broker in Ft Myers and she is in Human Resources and works from home.

Upcoming closings in June:
Closing #1 She is in the medical field and this will be her first home. She works in North Port.

Closing #2 This will be a second home/retirement home for them. They are from Rhode Island.

Closing #3-Young couple that were renting and are now buying. She's in the medical field in Venice and he works for a home improvement store in Venice.

Closing #4-He is semi retired. Taking advantage of the low prices. He will be moving from NJ.

Closing #5-They are moving from NJ and this will be their full time home. She is in the medical field and will be working somewhere locally.

Closing #6-They are a young couple who own a small home in North Port. His parents are selling their home in Georgia and will be moving into the present home owned by the couple. Since the buyers have a new baby they are purchasing a new, larger home and selling their old home to their parents. He is an EMT in Ft Myers and she is a stay at home mom.

Closing #7-He is retiring from Oklahoma but is originally born and raised in SW Florida.

Closing #8-They are renting and now can afford a home. She works for the school system in North Port. He is a mobile mechanic and works from Punta Gorda to Bradenton.

Closing #9-He already retired down here but was in a mobile home and didn't think he had enough space so he's moving to a new villa in North Port.

Closing #10-He is selling his home in Punta Gorda on the water and moving to North Port to downsize. He is a pharmacist in Port Charlotte.

I figured I'd add a few people I'm currently working with as well:
Person #1-Looking for a second home in the Osprey area. Lives in Canada.
Person #2-Looking for a home in North Port. This will be a second home. Currently owns a home in Englewood. Retired.
Person#3-Wants a lot or home in Sarasota. Moving from NJ. 1 million+
Person #4-Young couple looking for a second home and currently live in Belgium.
Person#5-Younger guy looking for a condo. He is from out of state.
Person #6-Looking for a retirement home and moving from Germany.
Person #7-Moving from Alaska to North Port. Retiring.
Person#8-Moving from Ohio. Young guy.
Person #9-Moving from Swayzee, IN. Retiring.
Person #10-Moving from Sarasota. Currently renting and now can afford a home in NP. He works in Sarasota, she stays home with the kids.
Person #11-Young guy looking for an investment in NP. From NJ.

I'll pull the stats for you tomorrow morning

[ChrisA70]

They are all full of CRAP.... Tons of houses just sitting for months here in Cape Coral, some for over a year.... It's just realtors trying to make it look good here....

[SoFLGal]

Originally Posted by BacktoFLigo

They are all full of CRAP.... Tons of houses just sitting for months here in Cape Coral, some for over a year.... It's just realtors trying to make it look good here....

I never said there weren't tons of homes for sale here. I just said that there are homes selling and I am seeing more homes selling than in previous months. There is still an over abundance of homes here.

[Rakin]

Wow, I had a client in DFW in 2005 who's wife is a real estate agent in Naples. At that time they were seeing a 25% a year increase in home prices.

It appears those huge increases in price and speculation wasn't good for the Naples market.

[ChrisA70]

Sorry, I wasn't trying to offend you at all. It's the news people trying to make it look like it's getting so great here when it isn't... The reason they are selling is because of the HUGE flood of vacant homes selling for HALF what they were 4-5 years ago. Am I right? My mothers house was bought in 2001 for $115K, in 2005 it was worth $295K, now $155K... That is just wonderful.

Originally Posted by SoFLGal

I never said there weren't tons of homes for sale here. I just said that there are homes selling and I am seeing more homes selling than in previous months. There is still an over abundance of homes here.

[outsider1]

SoFLGal,
Thanks a lot for posting your statistics. Very interesting. That's exactly the kind of information I was hoping to get in my original post

[SoFLGal]

Originally Posted by BacktoFLigo

Sorry, I wasn't trying to offend you at all. It's the news people trying to make it look like it's getting so great here when it isn't... The reason they are selling is because of the HUGE flood of vacant homes selling for HALF what they were 4-5 years ago. Am I right? My mothers house was bought in 2001 for $115K, in 2005 it was worth $295K, now $155K... That is just wonderful.

No offense taken-BacktoFL--

Yes, you are right on with your comment about there being an abundance of inventory. Also, looking at the number of short sales/preforeclosures I don't see a real end to it anytime soon. But I am noticing an increase in sales in the area. I'll take mine for example-my sales were half or less than half of what I posted for May and June-Only a few for each month Jan-April of this year.

So, I guess what I'm saying is that the bad news, or good news if you're a buyer, is that I don't see a near end to the foreclosures going on the market but I am seeing an increase in sales. The good news is that, right now, we seem to be burning through the inventory at a good pace. I'm not sure if this will continue or it will end in the near future.

[121804]

Originally Posted by SoFLGal

121804-Looking at my sales for May here's how they break down. Hopefully this explains what I was trying to say ==I had 11 closings in May:

Thank you. It is interesting & the reason I asked was to get an example from someone in the field in the area.

Do you have a rough idea of the average cost of the homes (at closing; not asking price)?

There is a long way to go in fixing the housing situation in the country, as a whole, but hopefully prices are going to get to a respectable level & ARMs are not going to be handed out like Halloween candy.

I think most people are always going to think they could have paid a few thousand less for their home, those who are always going to think homes are overpriced, and those who get a great deal.

If anything, I think people should have fun with house hunting right now. There are some great deals out there as well as many homes that are grossly overpriced. If the average person buys what he/she NEEDS and not what he/she WANTS, I think some of the mess might slowly start to be fixed.