2005 Single-family resales
SW Florida year-end round-up
The Ft. Myers-Cape Coral single-family resale market was turbo-charged in 2005. The region topped the State of Florida with a 26 percent increase from 9,612 to 12,128 sales. The Ft. Myers-Cape Coral market also led the State of Florida with a median price increase of 44 percent from $192,700 to 278,200.
With a fragile psychy as a result of rough back-to-back hurricane seasons, it is a stretch to expect sales volumes to grow from these lofty levels. I expect price leveling particularly in the more modest price ranges and volumes to fall back closer to the 2004 levels.
Florida's Home Sales Rise 2 Percent;Median Price Up 29 Percent for Year End 2005 [Florida Association of Realtors]
posted by Mark Washburn on 1/30/2006
10 Comments:
Interesting post from our friends at Matrix: Interpreting the Real Estate Economy Blog about the lack of objectivity of the National Asociation of Realtors. The NAR chieftains certainly are the masters of the spin.
Hi,
What do you think will happen to the multi-family sector (duplexes) in the area of Westminster Golf Club. I purchased 2 duplex lots there about 6 months ago with plans to build, however, the numbers no longer show a postive or break-even situation with a 20% down payment.
Do you see prices decreasing or holding steady ?
Thanks,
Robert
West Lehigh particularly around Westiminster is about the strongest area in Lehigh.
The last duplex lot sale on Golfview Blvd was at $66K in December. Currently, there are 4 active duplex listings on Golfview Blvd. at 65K, 89.9K, 89.9K and 100K.
In all of West Lehigh, there is currently a 7.4 month supply of duplex lots on the market. With this much inventory, tough to see much appreciation in the short term.
From a rental perspective, there is a significant inventory of $1K down entry-level investor spec homes coming on the market as rentals. These investor-owners will aggressively compete for tenants with the duplex scenario that you described. From an investor perspective, I would be leery about entering this space right now.
We can take this offline if you want more detailed info from MLS or might be interested in listing the lots. --Mark
Thanks for your comments Mark.
What commission percentage would you charge in order to list both lots (47 & 27 St, 46 & 24 St) and what do you think it will realistically sell for, assumming a 1 - 3 month time-frame vs the 7.4 months of inventory.
Thanks
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The duplex lots just south of Leonard Blvd. on 24th St - 30th St are selling for between $55K and $60K right now. There are 14 active in MLS on these blocks under $60K. Also an additional 15 between $60K and $65K. The price to draw activity is about 57K. Please send me an e-mail regarding transaction specifics including commission rate.
$57,000
4633 4635 24th St SW
Lehigh Acres FL 33971-6146
12414 Sqft. (0.285 Acres)
Listing # 200612871
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57,000
4728 4730 27th St SW
Lehigh Acres FL 33971-6134
12414 Sqft. (0.285 Acres)
Listing # 200612886
Good price, should sell within a month. There are only 4 other duplex lots in zip 33971 (55K - 56.9) I am disregarding MLS # 200540836 & 205062464 (49,900) as junk lots as 200540836 is half wet-land and 205062464 is across the street from the airport.
Mark, what’s your opinion on prices of the completed product: Brand new duplex 3BR/2BA/1 Garage each side. I see prices as low as 307K. Do you foresee a bigger drop within the next few months?
A duplex investment in West Lehigh near either Westminster CC or Alvin Ave should remain pretty strong. This area rents better than the more remote sections of Lehigh or rundown parts of Ft. Myers.
The concern that I have is competition for renters with all the 3/2 SF spec homes that sre hitting the market. Many First Homes/J. Roberts etc. $0 or $1K down properties are reaching completion and are increasingly competing for renters with duplex product.
With appreciation rates slowing, prices that allow for at a minimum break-even cash flow will ultimately drive valuation for this sector.
The Westminster area of Lehigh Acres is going to remain strong. You cannot get any closer to town in Lehigh Acres. Gunnery Road is going to become a four lane landscaped roadway, the mall IS opening at I75 on Alico, and the upscale shopping plaza opening at LEE & Gunnery is coming soon. The Westminster area is no longer a remote location.BTW - Have you seen the homes in Westminster? Anyways, there is a brand new fully featured Publix Plaza @ SR 82 + Lee/Colonial Blvd. It's a great location.
I am lucky enough to own one of the duplex lots on Golfview Boulevard that has a spectacular view of the golf course that's across the street. I will be holding onto this gem, because this area has much more potential than the rest of Lehigh Acres. I would have sold it by now if it was just some mundane lot in Lehigh Acres.
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