On average it cost just over $21,000 more to purchase a home in the Fort Myers area in 2011 than it did in 2009 with average selling prices increasing from $132,068 to $153,021.  This increase of 15.87% in the average selling price is among the highest in the nation for the 2009 – 2011 time period.

A key factor driving these home price increases was a significant drop-off in 2011 in the number of foreclosed homes hitting the market.  We are also seeing an increase in the percentage of end-user buyers vs. investors participating in the market as investors are finding it challenging to borrow to purchase real estate.

The increase in days on market can be most likely be attributed to the increased scrutiny buyers are experiencing in obtaining financing for their real estate purchases.  It is interesting to note that the average selling price to listing price ratio of 94% has remained virtually unchanged for three consecutive years.

In 2011, 18,634 residential properties sold in Lee County for a total of $2.8B in sales.  The average listing price was $163,541 and the average selling price was $153,021.  This represents an average selling price to listing price ratio of 94%.  This average selling to listing ratio of 94% remains unchanged from 2010 and 2009 in Lee County and is an excellent barometer for buyers to keep in mind when making an offer.

Anyone who tells you that banks are accepting offers at 50% of asking price is just not dealing in reality.  If you are interested in finding a discounted home in Southwest Florida, here is a resource to search for Southwest Florida Foreclosures.

The 2011 BIA Parade of Homes is gearing up for a busy second weekend of home buyer activity.  While the tour focuses on new construction properties throughout Southwest Florida, there are many resale opportunities in the communities on the tour.

Here is a resource to assist buyers in identifying resale deals in the communities on the Parade of Homes tour:

Alva

• River Hall Golf & Country Club

Fort Myers

• Oasis
• High Point Place
• Promenade at the Forum
• San Simeon
• Pelican Preserve
• Paseo
• Botanica Lakes
• Hampton Park
• Gateway Golf and Country Club
• The Plantation
• Catalina Isles
• Shadow Wood Preserve
• Belle Lago
• The Reserve at Estero

Estero

• Bella Terra

Bonita Springs

• Palmira Golf and Country Club

North Fort Myers

• Moody River

Cape Coral

• Celebration Cape Coral

In 2010, 19,372 residential properties sold in Lee County for a total of $2.6B in sales.  The average listing price was $144,459 and the average selling price was $135,445.  This represents an average selling price to listing price ratio of 94%.  This average selling to listing ratio of 94% remains unchanged from 2009 in Lee County and is an excellent barometer for buyers to keep in mind when making an offer.

Anyone who tells you that banks are accepting offers at 50% of asking price is just not dealing in reality.  If you are interested in finding a discounted home in Southwest Florida, here is a resource to search for Fort Myers area foreclosures.

Investopedia reports on 10 reasons real estate could rebound in 2011.  While the article generalizes about real estate trends on a national basis, several of these points are very relevant to the market in Southwest Florida.

One of the biggest factors currently drawing in new buyers is the new construction currently underway here in the Fort Myers area.  Many buyers, particularly busy pre-retirement snowbirds are cautious about jumping into the distressed short sale or foreclosure market.  These buyers want a problem-free experience associated with new construction.  At present over 15 communities in the greater Fort Myers area have new construction underway.

Another key factor drawing buyers to Fort Myers real estate is the low prices of our existing inventory.  Prices have dropped by as much as 50% or more in some sectors and buyers, particularly second-home buyers, are now able to pay cash for a home in Southwest Florida.  The decision for many comes down to a decision of asset allocation, would I rather keep my money in the stock market or move some of my portfolio to a beaten down real estate asset in Southwest Florida?

If you are like the majority of our clients, it is cold outside, you are already sick of winter and would welcome a warm place to hang your hat every winter.  If that is the case, here is a resource to begin your search for Fort Myers real estate.

RSW in Fort Myers has scored a major tourism coupe landing direct flights from Denmark cities of Copenhagen and Aalborg, Denmark’s fourth largest city.  European discount operator, Comefly selected RSW for its first Florida destination over East Coast locations.  Currently, RSW serves Dusseldorf, Montreal and Toronto with direct International flights.

While the Fort Myers area has traditionally been a major draw for Canadians, Germans and Brits, we are excited to welcome new Scandinavian visitors to our area.  These new visitors can enjoy our pristine Gulf of Mexico beaches, barrier islands including Sanibel and Captiva, championship golf courses and tropical weather.

Many seasonal visitors to Southwest Florida eventually decide to call this area home.  Here is a resource to get acquainted with the neighborhoods and and developments in the Fort Myers real estate market.

Naples Pier

Everyone celebrates Christmas differently, and holiday traditions and festivities do not have to be limited to singing carols around snow-covered evergreens. The merry season can be enjoyed in any climate. People in southern locales such as Florida can delight in the cheer as much as anyone else.

Christmas is not just a chilly-weather holiday. Even if Jack Frost is not nipping at your nose, you can celebrate the season in a grand way. The holiday celebrations in a balmy climate may not be typical, but Floridians have found a way to rejoice in some very exceptional ways. In many cases, celebrating Christmas in a warm region has advantages over celebrating in colder climates.

How many times in a year do you wish you were on vacation? Celebrating Christmas in Naples, Florida is the ultimate retreat. You can enjoy the warmth of the season by taking a Christmas Day cruise, picnicking at the beach, or swimming in the ocean. The best way to make Christmas merry is to celebrate with loved ones. Why not bring the entire family to the beach for an afternoon of sun and surf? The sounds of the sea at Christmas are unmatched. Relaxing to the mesmerizing drone of the waves is a great way to reflect on what is truly important in life. While you bask in the warmth, you can also be entertained by the many beach Santas who roam the sandy shores.

If your favorite part of the season is checking out the decorated homes in your neighborhood, you can get your fix in Naples. Many Naples homes are decorated to extreme levels by putting up thousands of lights, themed decorations, and whimsical statues. You will even see palm trees decorated with seashell ornaments and starfish toppers. Some neighborhoods have decorating contests, and people from all areas stop by to see the festive displays.

If you long for the inspiring services provided by your local church, there are some communities that offer Christmas Eve service on the beach. In Naples, the community church gives members a chance to enjoy the magnificence of an ocean view while giving thanks for the season. Thousands of candles are lit and traditional, faith-filled carols are sung by members.

While it may warm your heart, the tropical climate in Florida will not stop you from enjoying a winter wonderland. In various parts of the state, you can find skating rinks, ice sculptures, and quaint villages depicting wintry scenes. You can even do some traditional Christmas shopping in the many shops that are dedicated to keeping the holiday spirit alive. Disney World and Sea World also provide unique holiday experiences with festive parades and Christmas-themed shows.

Christmas is known as a time for celebrating with family and friends. It allows you to give from your heart and to reflect on the positives in your life. You can celebrate the season from any location, but Christmas in Florida is a unique experience that can add a new level of warmth to your holiday.

The holiday season also coincides with the start of the peak months for real estate.  So, if you are in Naples during the holidays and are curious about the Naples real estate market, you may get a head start on the buyers that come down in the first quarter of the year.

Tim Ryan – Amerivest Realty

Fort Myers Real Estate

Portfolio.com rated each area in the six categories below. The highest scores in each category went to the markets described in parentheses.

1. Seniors as share of total population—Percentage of all residents who are 65 or older. (Highest scores: largest percentages.)
2. Median age—The market’s midpoint age, with half of all residents being older and half being younger. (Highest scores: oldest medians.)
3. Seniors born out of state—Percentage of all seniors who were born in a different state from their current state of residence. (Highest scores: largest percentages.)
4. Incoming seniors—Percentage of all seniors who moved to their current county of residence from another county (or nation) during the previous 12 months. (Highest scores: largest percentages.)
5. Difference in out-of-state births—Comparison of the percentages of seniors and younger residents (64 or younger) who were born out of state. (Highest scores: largest advantages for seniors.)
6. Difference in incoming rates—Comparison of the percentages of seniors and younger residents who moved to their current county from another county (or nation) during the previous 12 months. (Highest scores: largest advantages for seniors.)

Here in the trenches of Southwest Florida, we are seeing a steady flow of pre-retirement baby boomers from Northern cold-weather climates looking to jump on a retirement home while our prices are really low.   A large percentage of these clients are paying cash and viewing the purchase as an asset relocation from a stock portfolio to value-priced Southwest Florida real estate.  On average over the past year, our clients are spending just under $200K on their Fort Myers area properties.  The housing style is fairly evenly divided between town homes, condos and single-family homes with a significant majority located in gated communities.

If you are considering an investment in a retirement home in Southwest Florida, here is a comprehensive Fort Myers area real estate resource to begin your search from the comfort of your home.  Hopefully, this resource will help you evaluate different housing options from afar so that your trip down to view properties is most productive.

The Associated Press ran a story yesterday titled Where fewer foreclosures are now bad for business which featured Lee County and detailed how the slowdown in the foreclosure pipeline is bad for business. The irony of this premise is thick enough to cut with a knife…..yes our economy has become dependent on foreclosure transactions to keep sputtering along.

While the volume of foreclosures has slowed, there are still plenty of foreclosure listings for astute, bargain-hunting buyers to sort through during this winter season.  Today, our MLS inventory for Lee County has 870 residential foreclosure listings ranging in price from $9,900 for a boarded up Franklin Park bungalow to $3.2M for a Bayshore Road riverfront compound.  There are some real winners as well as a few dogs in this inventory of Fort Myers area foreclosures.  Here is a resource to start your search for a Southwest Florida foreclosure deal.  Let us know if you need any help finding a home run foreclosure deal.

If you are interested in purchasing a foreclosed home in Southwest Florida, here is a resource to view active Southwest Florida foreclosure listings.

The latest Brookings Institute State of Metropolitan America Report has some very interesting data regarding the Cape Coral-Fort Myers Metropolitan Statistical Area (MSA).  This area is categorized as a Mid-Sized Magnet with similar characteristics (high growth, low diversity, low education) as cities including: Baton Rouge, LA; Boise, ID; Greenville, SC; Jacksonville, FL; Little Rock, AR and Oklahoma City, OK.

Some of the key indicators about the Cape Coral – Lee County including our ranking out of the top 100 MSAs:

• Total population: 593,136     US Rank: 86

• % change in population 2000-2008: 33.6%      US Rank: 4

• % non-white population% 27.4%      US Rank: 56

• % of population that is foreign-born: 15.1%     US Rank: 27

• % of population age 45 and over 47.3%     US Rank: 3

• Percent seniors (65+) 22.9%     US Rank: 2

• Percent adults with bachelor’s degrees 26.1%     US Rank: 74

• % of households that are married couples with children: 16.2%     US Rank: 97

• Median household income: $51,081     US Rank: 60

The age demographics truly jumped out at me, with our region ranking second nationally for senior citizens and third for baby boomers.  The baby boomer (45+) stats truly correlate with what we are seeing in the trenches.  The overwhelming majority of our customers right now fall into the pre-retirement baby boomer demographic bucket.  Many have lost confidence in the stock market and are looking to reallocate assets away from the stock market and into a piece of Fort Myers real estate.  Key drivers for this demographic group include a move toward urbanism, a growing interest in amenity-rich gated communities and 55+ communities.

With an extensive schedule of activities, Fort Myers 55+ communities help newcomers quickly acclimate to their new community.  It is easy to quickly meet other residents with similar interests and hobbies.  Social activities, sports and crafts are among the more popular items available in these 55+ communities.

Generally, these communities have deed restrictions that require at least one owner of the property to be at least 55 years of age.  These restriction do not generally preclude a younger spouse or even a child from living with you in the community.

Popular 55+ communities in the greater Fort Myers area include:

• Cascades at Estero – Single-family Homes
• Cascades at River Hall – Single-family Homes
• Cinnamon Cove – Condos, Villas & Single-family Homes
• Heritage Cove – Condos, Villas & Single-family Homes
• Pelican Preserve – Condos, Carriage Homes, Villas & Single-family Homes
• Seven Lakes – Condos & Villas

There are other Fort Myers 55+ active adult communities in the area that our team can assist you with.

A Forbes study ranks the Cape Coral-Fort Myers market at -8% for home-equity-to-home-value, the second worst in the nation.  This current underwater position is a dramatic a shift from the 68% home-equity-to-home-value that Southwest Floridians enjoyed in 2006.

The loss in value has pushed Southwest Florida home prices down to levels of about 8 years ago, well before the bubble run-up.  These significant price drops have made it most challenging for any homeowner who purchased after about 2003 to break even when selling a home.

For buyers, the equation is very different.  Many properties here in Southwest Florida are selling well below the actual cost to build a similar home.  Some of the best deals can be found with bank-owned foreclosures.  Here is a resource to view active Southwest Florida foreclosure listings.  The best priced bank-owned properties are currently in many cases attracting multiple offers and selling at or above asking price.

Canadians are drawn to the Fort Myers area for our average annual temperatures of 72 F, our year round golfing and our Gulf coastline.  The Southwest Florida market downturn has reduced home prices in many upscale communities to a level of unprecedented affordability. Buying a Fort Myers foreclosure property from a bank is an approach many Canadians are taking to get the absolute best deal.

If you are considering a real estate investment in Southwest Florida, it is important to understand all the costs involved with both the transaction itself as well carry costs after you own the property.  A  Montreal Gazette column titled, Is it time to bottom fish for real estate in the U.S.? discusses these issues and is a must read for any Canadian considering an investment in Southwest Florida.

1. Boating – 400+ miles of navigable canals
2. Weather – average annual temperature of 75 degrees
3. Affordable homes – median sales price of $94,000 in 2009
4. Good schools – part of the respected Lee County System
5. Friendly residents – most people are just really nice
6. Short Commutes  – easy access to commercial and government hubs in Fort Myers
7. Beaches – close to outstanding SW Florida beaches
8. Family and Friends – lots of out of town visitors during winter
9. Diversity – everyone is welcome in Cape Coral
10. Sunsets – my favorite is looking over the Spreader Canal

I have another use for Snoop and that is to have him spend some 1 on 1 time with Realtors that are knowingly listing homes with Chinese drywall and not disclosing its presence.  The Greater Fort Myers and the Beach Board of Realtors needs to step up and create and enforce specific rules about listings containing or suspected of containing Chinese drywall.

One of the buyer misconceptions about our current Fort Myers area real estate market is that banks will approve ultra-aggressive, low-ball offers on short sales and foreclosures.  Approving low-ball offers in Lee County has absolutely not been the operating model for lending institutions during 2009.   Particularly for foreclosures, much of the discount on these properties is reflected in the aggressive selling price.

The numbers speak for themselves regarding the ratio of selling price to listing price.  In 2009, 20,480 residential properties were sold in Lee County for a total of $2.7B.  The average listing price was $140,706 and the average selling price was $132,068.  This represents an average selling price to listing price ratio of 94%.  Anyone who tells you that banks are accepting offers at 50% of asking price is just not dealing with reality.

Complete inventories of Estero foreclosure listings, Fort Myers foreclosure listings and Cape Coral foreclosure listings are available on our site.

A Miami Herald article titled, Real-estate bottom is not when things appear to be better, rang true with me and all these bottom predictions.  The article suggests that despite the uptick in sales and decreasing inventories that we have seen in 2009, we are truly not at the bottom.  The article opines that government intervention is the cause for the apparent market improvement.  Two examples cited include the first time buyers tax credits and court systems that are stalled due to being clogged with foreclosures.

While I don’t think I will truly know the bottom until it hits me over the head, we are continuing to see significant interest in well-priced Fort Myers foreclosures and Estero foreclosures from those looking for a pre-retirement second home.  Tough to argue with a 70 degree day down here when the Northeast is getting slammed with a foot of snow!

Highlights from the November 2009 figures released by the Realtor board include:

• An increase in homes sales over November 2008 of 70.5%
• 2009 YTD single-family home sales of 15,336 – up from 8,768 for all of 2008
• November sales included 47.4% bank owned, 18.9% short sales and 33.7% conventional
• MLS inventory of 6,976 homes down from 12,106 in November 2008

It is a great time to be a buyer in Southwest Florida, there are interesting opportunities across all housing types and price ranges.  Use our map tool to start your search of every active listing in the Greater Fort Myers area.

Pre-retirement baby-boomers are taking a serious look for a second home in Southwest Florida. Our highly discounted prices are very enticing and the continued strength of the stock market this year are two of the key drivers for this class of buyer.  Most of the buyers in this category are paying cash.  This opens the market up to deeply discounted condo projects that are currently not finance-able with conventional mortgages.

Here is an excerpt from the Credit Suisse report:

Here is a resource to view Fort Myers real estate including all the currently available active listings.  There are interesting bargains to be had across all housing types and pricing levels.

The Bradenton Herald reports that Chinese drywall saga is entering a crucial phase:

Within the next few weeks, officials expect to determine how much of a fire hazard, if any, the contaminated product poses. They’ll also have a better idea of how much the drywall contaminates the air inside affected homes. A federal judge is expected to decide which of the several hundred lawsuits that have been filed over the product will be the first to go to trial.

And the White House will raise the issue for the first time when President Barack Obama visits China this week.

It will be interesting to see if President Obama puts the hammer down on the Chinese to cough up some funding to fix drywall problem.

Cape Coral has a beautiful new addition with the opening of Tarpon Point’s Resort at MarinaVillage.  This new 19-story resort hotel offers comcierge and spa services along with shops, waterfront dining and a 175 slip marina.  The spectacular views from the MarinaVillage property are include the Caloosahatchee River, San Carlos Bay and the Gulf of Mexico.

If you are considering a trip to Southwest Florida this winter to look at property,  the Resort at MarinaVillage offers a luxury alternative to other Southwest Florida resort complexes including Sanibel Harbour Resort and South Seas Island Resort.  Fractional ownership options are available at the MarinaVillage.

Congratulations to the Grosse Point Development Company for completing this beautiful project in our currently challenged market.

The NY Times has an informative article about seller expectations and the consequences of listing a home for sale at an unrealistic price point. In our market, distressed properties are the baseline which are setting the pricing bar across most communities and sectors.

If you are selling in a community that has short sale or foreclosures, these distressed units will generally be the price leaders in the community.  Until these distressed price leaders sell, traditional sellers should expect buyer offers to reflect pricing based on these distressed units.  Getting an offer based upon distressed pricing is a bitter pill to swallow, but unfortunately is what we are dealing with right now.

Our site offers pricing information on over 600 communities in the Greater Fort Myers area.  It is a great resource to stay up to date on asking prices in your community.  If you are considering a sale of your property and looking for an objective opinion of value, please drop us a quick note.

With the Loonie at parity with the US Dollar and across the board price reductions, many Canadians are now considering an investment in Southwest Florida real estate.  The Canadian Press reports that the currency equality is very enticing but shouldn’t be the key driver in your decision to buy real estate in Florida.  Some of the drivers that should be considered include lifestyle goals and investment expectations.

An investment by a Canadian in Florida real estate is certainly a decision that should not be rushed into.  It can be most helpful to visit or rent in a community prior to making the decision to buy.  Our team is hearing from many Canadians who have previously taken this approach and are now considering a purchase primarily due to the significant price reductions on much of the real estate inventory in Southwest Florida.  Popular areas for Canadian buyers include Fort Myers, Fort Myers Beach and Estero.

This dramatic increase in sales activity is putting a big dent in our inventory of available homes.  Currently there are 6,809 single-family homes available in the MLS system, down from over 12, 000 in September of 2008.

Bank-owned properties are currently about half of the monthly sales, here is a resource to view available Fort Myers foreclosure listings.

The trail of false promises, scammed investors and deceit just never seems to end when it comes to Russ Whitney. His latest venture, Millionaire University is the subject of a class action suit filed by a group of scammed students. Basically, Millionaire University ran late night infomercials designed to lure naive real estate investor wannabees to a free seminar.  At these seminars they convinced students to sign up for costly seminars and eventually over-pay for inferior new construction investments.

Its scam artists like Russ Whitney, Samir Cabrera and others that have made significant contributions to the Southwest Florida real estate foreclosure mess.  With the record sales that have been occurring over the past couple of quarters, we are digging our way out of this hole.  Investors are finding some interesting opportunities with Cape Coral foreclosure properties and Fort Myers foreclosure properties.

Estero, with its location close to Naples and the beautiful Estero Island beaches, is a Southwest Florida community popular with foreign buyers.

Publicly traded builders are being grilled by analysts about their liability in using defective Chinese drywall.

Miami-based Lennar Corp. has announced that it built about 400 homes between 2006 and 2007 using the foul-smelling, corrosive material. It has set aside $40 million to make repairs and expects to get about half that back in insurance.

Another Florida-based developer WCI communities, which is set to emerge from Chapter 11 bankruptcy, will face an estimated 160 potential cases.

D.R. Horton Inc., Beazer Homes USA Inc., and Ryland Group Inc., all have announced very small numbers of affected homes.

Hovnanian Enterprises Inc. will report its third-quarter results on Wednesday and is expected to report some drywall exposure as well.

Source: The Wall Street Journal, Dawn Wotapka (09/02/2009)

The Star provides a how to guide for Canadians interested in buying distressed Florida real estate.

The Fort Myers area is popular with Canadian buyers.  Right now, Fort Myers foreclosures and Cape Coral foreclosures are selling at highly discounted prices.  With the strong Canadian Dollar, the opportunity to invest in Florida real estate has never been better.

The fall is a great time for Canadians to visit Southwest Florida before the winter tourist season kicks in.  Low airfares and hotel rates provide the perfect environment for finding a place to call your own in Southwest Florida.

Levy and other people with whom “Globes” has talked mention double-digit returns on investment. A comparison with the Israeli real estate market is necessary in view of the rise in housing prices in Israel in recent years, and Levy has no doubt which pays better.

“We cannot find such returns in Israel,” he says. “In Israel, the ratio between home prices and rental prices is disproportionate. An average three-room apartment in central Israel costs NIS 1 million and the average rent is about NIS 100,000 a year.

Southwest Florida leads the nation in foreclosures and homes are currently available at prices below replacement cost.  Fort Myers foreclosures and Estero foreclosures are popular with foreign nationals.  Many are investing now with plans to rent out the property until retirement.