Nan's Blog

New challenges in flipping properties

Nan Dietrich (John R. Wood Realtors) — Fri, 19 Jun 2009 08:58:26 -0500

Thanks to Mary Adams at Element Funding for the updated information. Element Funding is an example of the full-service I am able to offer through John R Wood, Inc. Realtors.

I wanted to share as this can, and has, become an issue for some buyers - as well as investors looking to purchase and then quickly flip a property.

A sale is considered a "flip" by lenders when title has been transferred (via sale or otherwise) within a 12 month period.

The mortgage industry, including the agencies that ultimately provide the underwriting for these loans, are very sensitive to property flipping. They know that historically this can lead to "artifically" inflated values.

Here are some updates on how various agencies are handling property "flips":

FHA has very specific guidelines- In a nutshell:

ü Only owners of record can sell properties that will be financed using FHA insured mortgages (in other words... someone who is currently 'under contract to purchase" a home cannot go to contract to sell the property to another buyer)

ü Any re-sale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing

ü Resales that occur between 91 and 180 days- where the new sales price exceeds the previous price by 100% or more - FHA will require additional documentation validating the properties value, including a 2nd appraisal. In addition, the rule provides flexibility for FHA to examine and require additional evidence of appraised value when properties are re-sold within up to 12 months.

FNMA/ FHLMC- Conventional lending would require indepth review of appraisal if there has been significant increase in sales price from when the current owner purchased (within 12 months). They will also want to document any improvements made to the property since it's purchase to support the increase. There are no specific time limits on how long the prior owner would have to have owned the property prior to selling as FHA requires. Ultimately, the lenders are reviewing the appraisals on these properties with a fine toothcomb.

USDA lenders are also reviewing these properties in much the same light as conventional lending.

AUCTIONS IN NAPLES

Nan Dietrich (John R. Wood Realtors) — Mon, 15 Jun 2009 12:50:56 -0500

A year ago, the auctions didn't create much of a stir in the county. A few investors might have attended here or there. But mostly it was bank representatives who were there to buy the homes back for the lender. Now and then a luxury home in a luxury multi-million dollar Country Club community would attempt an auction, not always successfully.

Even six months ago, the auctions didn't draw much attention. But over the past few months that's changed, with more investor groups and other spectators going and bidding in hopes of getting a good deal. There's an auction on the sixth floor of the Collier County Court House at 11 a.m. Monday through Thursday. Now, there can be 30 or even 50 people attending a day. The homes being auctioned are to the east of Collier, Golden Gate area, for the most part, and under $200,000 and $300,000.

What's remarkable to me and my market share is a home on Gordon Drive, on the west , beach side that was just auctioned. With a winning bid of $1,427,000. The estate home, with four bedrooms and four and a half bathrooms, offers 4,300 square feet of living space near the Gulf of Mexico. It's in a small gated community with private beach access for residents. Collier County property records show the assessed value for the home at nearly $2.9 million. It is very rare to have a property of that quality go to foreclosure.

There's more interest from investors at the auctions because buyers are back. They are jumping off the fence, especially at the low end of the market. Home resales have been up every month this year in the Naples area. Meanwhile, median prices continue to fall, dragged down by foreclosures and short sales - sales made for less than the bank is owed to avoid foreclosure. The median price for all resales fell to $174,000 in May, down from $314,000 in the same month a year ago, according to a report released by NABOR. However, if you don't know what you are doing you could end up paying too much for a home, or getting stuck with someone else's back taxes and liens.

Market Update for May 2009

Nan Dietrich (John R. Wood Realtors) — Mon, 15 Jun 2009 12:49:24 -0500

Market Update for April 2009

Nan Dietrich (John R. Wood Realtors) — Tue, 12 May 2009 09:41:26 -0500

Bernanke More Optimistic on Economy

Nan Dietrich (John R. Wood Realtors) — Wed, 06 May 2009 14:09:28 -0500

Washington -- Federal Reserve Chairman Ben Bernanke gave his most optimistic prediction yet Tuesday about the end of the recession, saying he expects the economy to start growing again this year--although the comback could be weak and more jobs will disappear even after a recovery takes hold.

The Fed chief told Congress' Joint Economic Committee that he saw hopeful signs, including firmer home sales, a revival in consumer spending and some improvement in lending conditions for banks, businesses and individual borrowers.

"We continue to expect economic activity to bottom out, then turn up later this year," Bernanke said.
Previously, Bernanke has suggested the recession could end this year if the government managed to stabilize the financial markets. This time, he said not only that he expects an end to the recession this year end buy also a return to growth.

Market Update for October 2008

Nan Dietrich (John R. Wood Realtors) — Mon, 16 Mar 2009 09:48:47 -0500

Recovery in view but bumps remain in recession road, economist says

Nan Dietrich (John R. Wood Realtors) — Mon, 23 Feb 2009 15:18:26 -0600

Noted Florida economist Hank Fishkind gave Naples Realtors and brokers a dose of reality, along with a sprinkle of hope of better days to come.

Speaking to a sold-out crowd at the offices of the Naples Area Board of Realtors on Friday, he said home prices in Collier County aren't going to drop much more. He sees them improving later this year.

His predictions for the Naples-Marco Island market are far rosier than those given by an economist with Moody's Economy.com, who in a report earlier this week said he expected average home prices in the metro area to fall more than 70 percent from their peak in 2006 to their "trough," or bottom, in 2010.

Fishkind sees prices recovering a year sooner and based on his research doesn't expect their drop to be anywhere near 70 percent when they hit bottom.

His prediction is based on deeds, which show average home prices falling 33 percent from their peak to the end of 2008.

"I think what's going to happen this year is that prices will stabilize," said Fishkind, principal of Orlando-based Fishkind & Associates. "It's going to come sooner. It's going to come this year."

He said the Moody's report is based on a federal index and a random sampling of homes that have sold over the past few years so it's not the best reflection of the entire market and it shows more volatility.

In his annual speech to NABOR in April of last year, Fishkind said he thought home prices had already hit bottom. It appeared as though they had stabilized, but then came the financial crisis in September and October that he didn't foresee.

"I never thought the sky would really fall," he said. "It fell."

In terms of sales, the housing market in Collier County has hit bottom, Fishkind said. Sales have been rising month after month, spurred by lower prices driven by foreclosures and other distressed sales.

A flurry of foreclosures continues to drive down prices. It will get worse before it gets better, Fishkind predicts.

In Collier County, foreclosures are not "spread all over the place like peanut butter," he said. He showed a map of where most of the foreclosures are happening. Red dots were all over Golden Gate, indicating that community has been hit hardest.

He expects there to be more than 18,000 foreclosure-related filings in Collier this year - about twice the number as last year. That includes all filings, from defaults to bank repossessions. It doesn't mean that many people will lose their homes.

This year, sales will continue to be the most active in the $300,000 and under price range, he said. Nearly 1,400 single-family homes sold in that category in 2008.

New home starts will be very modest this year and next, Fishkind said. He expects there to be about 1,000 - a number some in the audience thought was even too high.

"It's the commercial side that is going to get whacked over the next 12 months," Fishkind said.

Brett Brown, a real estate broker and president of the Naples Area Board of Realtors, said Fishkind's talk backs up what his group has been reporting monthly about sales and prices. Sales have been trending up and prices have showed some signs of stabilization, he said.

"I was quite proud of our group," he said. "We are on the same page."

Fishkind also talked about Collier's economy. He shared some sobering numbers. The county's population shrank by 1,004 last year. The city of Naples lost 545 people.

Marco Island's population actually grew last year by 1,031.

In the Naples metro area, 9,800 jobs were lost between September 2006 and the same month in 2007. Most of those were in construction.

The county lost another 3,700 jobs between December 2007 and December 2008.

The good news, he said, is that most of the layoffs are behind us.

"They don't get lost again because they already got lost," Fishkind said.

He described these times as both "troubling and confusing," saying this is the worst recession Florida has seen since 1976.

The state lost 155,000 jobs last year. He said it's a difficult recession for our state because it has been so dependent on construction and growth. Florida is no longer the nation's fastest growing state.

Last year, the recession spread to every county in the state, Fishkind said.

"It will take time to crawl out of this one," he said.

He said this recession may go down as one of the longest; a recession lasts 10 months on average, Fishkind said.

But he thinks help is on the way with the federal economic stimulus plan President Barack Obama signed earlier this week. The sweeping plan is a mix of spending and tax cuts designed to stop the nation's economic spiral.

"We are going to get a ton of dough through the stimulus package," Fishkind said, referring to Florida. "Make no mistake."

Most of the help will come in the form of tax cuts.

"This is going to make a huge difference," Fishkind said.

Naples Market Report 2008

Nan Dietrich (John R. Wood Realtors) — Mon, 26 Jan 2009 14:58:37 -0600

NAPLES - BONITA SPRINGS - ESTERO MARKET AREA

CLOSED SALES

Total closed sales units in 2008 increased by 20% over 2007. This upward trend continued through the year with most months showing increases over prior year month. In fact, as you can see from the graph below, 2008 is very close to 2002, the year that preceded the run-up in units and volume experienced during 2003 through 2005. Volume for the year is down 9.6% and almost on par with 2003 volume, the third highest year during the nine year reporting history.

ANNUAL CLOSED SALES UNITS HISTORY

The highest number of closed sales occurred during May with 695 sales recorded, and the lowest number in January with 372.

The unit growth was driven by the sale of properties priced under $250,000, with this segment posting a gain of 130% over prior year. Overall, active listing inventory was reduced by 7% during the year, and the number of new listings taken was the lowest since 2005.

ANNUAL NEW LISTINGS HISTORY

Inventory levels based on closed sales are down from approximately a 3.1 year supply in February 2008 to a 2.1 year supply on January 1, 2009. Absorption levels are increasing, while supply levels are decreasing in the overall market, creating an increasingly balanced situation in many market segments. This has already occurred in a number of areas which are currently showing a one year or less supply of product.

PENDED SALES

Pended sales are the best indicator of current market conditions. Commencing October 2005, pended sales began showing a significant decrease on a monthly basis when compared to same month, prior year. This decline continued, almost uninterrupted, for 28 months, until February 2008 when pended sales began posting increases over prior year. Although January and March 2008 were down slightly from prior year, all other months recorded increases. The month over prior year month increases ranged from 6% in April (the lowest monthly increase for the year) to 107% in September (the highest monthly increase in 2008). Actual fourth quarter increase was almost 68% over 2007 fourth quarter.

ANNUAL PENDED SALES UNITS HISTORY

The ratio of pended sales to new listings taken (on a monthly basis) was one pended sale for every 2.6 new listings at the end of December, vs. the high of one pended sale for every 6 new listings recorded in January 2007.

SUMMARY

The increases in both closed and pended sales throughout most of 2008 indicate that a steady and strengthening recovery is underway. The reduction in inventory, along with decreasing numbers of new properties coming on the market, should bode well for real estate activity in 2009. A key to the strength of the recovery lies with what happens in the market segment of properties priced above $2,000,000. This segment has been comparatively quiet during 2008, posting a 20% decline in sales units from 2007. Although not quantifiable at this point, activity in this segment has increased significantly over the past three weeks, based on the number of showing appointments scheduled. The next 30 days should indicate whether there will be a full recovery of this segment in 2009.

Prices have fallen in virtually every price segment and property type across the market. Existing median price is almost 25% below 2007, but we expect this to begin to move upward again in some areas where supply and demand have balanced. Be aware that some areas are still over supplied and will require further price adjustments. However, these are diminishing, and prudent buyers and sellers will insist on specific neighborhood and/or building information upon which to base a buying or pricing decision.

John R. Wood Realtors continues to be a market leader in today's market. As the "Symbol of Local Knowledge" in real estate, we attribute our success to:

The delivery of timely, reliable information to the customer.
Well educated and informed agents who can communicate and interpret market indicators.
Highly targeted marketing designed to reach a maximum number of buyers and sellers.

This focus enabled us to sell more of the properties listed with our firm in 2008 than any other local broker, and achieve an enviable position at the top of the market.

REPORT: HOUSING MARKETS WILL ROAR BACK IN 2009

Nan Dietrich (John R. Wood Realtors) — Mon, 19 Jan 2009 09:28:20 -0600

The Nation's foreclosure hemorrhage has finally slowed and 2009 should see a significant decline in foreclosures as buyers return, pushing home prices up and fueling a real estate recovery, accordingto the 2009 Outlook from ForeclosureS.com.

RECOVERY IS UNDERWAY

Affordable is back in the housing market,"says Alexis McGee, real estate expert, educator, and president of ForeclosureS.com. "In 2009, housing will not only recover, but we'll see buyers leap into this market in droves, depleting our housing oversupply and actually put higher price pressures on the market."

THE FED'S 500 BILLION PLAN TO BUY FANNIE MAE AND FREDDIE MAC

SECURITIES AND DRIVE LONG TERM INTEREST RATES DOWN

With 4.5% fixed mortgage rates, housing prices lower than they were' pre-housing bubble', commodity prices lower, tax credits available for homebuyers, and the government eager to stimulate our economy, for the first time in years, I can see prices rising again in 2009" adds McGee. "This is a great time to buy properties for investors - to buy properties at wholesale prices below today's already low prices - rent them out for positive cash flow and then sell them for big profits in late 2009 once price appreciation kicks in."

FORECLOSURES FALL FROM RECORD PEAK

The latest U.S. Foreclosure Index by ForeclosureS.com shows a slight drop (from 84,534 to 84,291 in the number of properties repossessed by lenders following foreclosure last month (November) over October. These are REOs or lender-owned real estate. But that's off nearly 21% from September's 106,415 REO filings. (year to date 12.6 of every 1000 households nationwide have been lost to foreclosure.) "Certainly some of the drop reflects growing results of government and private efforts to keep homeowners in their homes,"says McGee. "But the recovery takes shape when you factor in other things like what the National Association of Realtors calls ‘solid'gains from a year ago in existing home sales in some key areas and the fact that many of the same areas are seeing dropping home prices. Fewer foreclosure actions were initiated in the last quarter too, according to the latest Mortgage Delinquency Survey from the Mortgage Bankers Association,"McGee adds. "California is a great example of what's happening now and what lies ahead for the housing sector. Long a leader in the sub prime mortgage mess and rising numbers of foreclosures, thestate's foreclosures have slowed significantly." Says McGee.

"Potential homebuyers and investors on the other hand, will find the bargains growing in 2009," says McGee. "As the year progresses, more bright spots will emerge too, both in terms of foreclosure numbers and housing markets as efforts to work with strapped homeowners really begin to take root." "I wish my crystal ball could pinpoint everything that's going to happen with housing markets in the next 12 months, but there are just too many variables. What I can tell though, is that hardest hit housing markets have already hit bottom and others will follow in 2009. Third-quarter National Association of Realtor numbers actually show existing home sales picking up in about 20 percent of the areas studied. And, given the uncertainty and volatility of the stock market combined with all time low interest rates, extremely affordable low priced homes and all the choices out there, 2009 is an excellent time to buy real estate. Properties, especially foreclosed ones, will be highly discounted, lenders are motivated to work with buyers and the opportunities are abound. The bottom line is to keep in mind: What goes down, absolutely positively will go back up again.

"The return of solid housing markets is an important part of restoring stability to financial markets. The market will return when mortgage rates and home prices are down and that's exactly what is happening now in the hardest-hit areas of the country," adds McGee.

Mortgage rates approach record low

Nan Dietrich (John R. Wood Realtors) — Fri, 09 Jan 2009 09:36:32 -0600

By Holden Lewis • Bankrate.com

Mortgage rates continue to plunge toward record territory.

The benchmark 30-year fixed-rate mortgage fell 31 basis points, to 5.33 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point.

The mortgages in this week's survey had an average total of 0.39 discount and origination points. One year ago, the mortgage index was 5.88 percent; four weeks ago, it was 5.8 percent.

The benchmark 15-year fixed-rate mortgage fell 31 basis points, to 4.85 percent. The benchmark 5/1 adjustable-rate mortgage fell 14 basis points, to 5.72 percent.

These benchmark rates are averages. Rate shoppers with excellent credit and plenty of equity (or a big down payment) may be able to do better.

Weekly national mortgage survey

Results of Bankrate.com's Jan. 7, 2008, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:

	30-year fixed	15-year fixed	5-year ARM
This week's rate:	5.33%	4.85%	5.72%
Change from last week:	-0.31	-0.31	-0.14
Monthly payment:	$919.33	$1,291.95	$959.75
Change from last week:	-$32.07	-$26.65	-$14.71

"Right now, the 30-year (fixed) I have this morning -- I have 4 5/8 (percent) on a regular conforming and I have 4 3/8 (percent) on a 15-year today," all with 1 discount point plus fees, says Jeff Lazerson, president of MortgageGrader.com, a brokerage in Southern California. Minutes later, he sends an update by e-mail -- the 15-year fixed is available at 4.25 percent.

For Lazerson, business is better than it's been since summer 2003, the last time rates dropped so low. In Bankrate's weekly survey going back to 1985, the 30-year fixed hit a record low of 5.28 percent June 11, 2003, and was 5.31 percent two weeks later. This weeks' rate of 5.33 percent is the third-lowest in the 23-plus-year history of Bankrate's weekly survey.

Income and debt ratios rule
About four in five applicants today are homeowners who want to refinance their current loans, according to the Mortgage Bankers Association. In formerly hot real estate markets, a lot of those applicants are turned away because house values have fallen and they don't have enough equity in the home to refinance. "Maybe 30 percent of the people we can actually help, and 70 percent we cannot help, and the primary driver is they don't have any equity," Lazerson says. "The secondary issue is their income and debt ratios won't fly and the third issue is credit score."

When Lazerson mentions income and debt ratios, he refers to guidelines that limit borrowing ability to ensure that mortgages are affordable. Generally, Fannie Mae and Freddie Mac want to keep borrowers' total debt payments to 36 percent of before-tax income. That's total debt payments -- house, vehicles, credit cards, student loans. The FHA is more lenient, and likes to limit total debt payments to 41 percent of gross income. Lenders can make exceptions, but they're not inclined to during this credit squeeze.

While it can be hard to qualify for a refi, the picture is brighter for homebuyers. They can get Federal Housing Administration-insured mortgages, which require down payments as low as 3.5 percent. "I would say that most of the first-time buyers calling in -- 75 percent of those people -- we can actually help because FHA is more lenient about credit scores," Lazerson says.

Volume affected rates
The reasons for this week's drop in rates are complicated. First of all, Bankrate surveys the same 100 lenders each week -- 10 lenders in 10 large markets -- and some of those lenders had been quoting high rates because they already had as much business as they could handle.

During this downturn, lenders "whacked (operational) staff en masse and simply can't handle intense volume today," writes Jim Sahnger, mortgage planner with Palm Beach Financial Network, in an e-mail from his office in Stuart, Fla. "So, if you are already at capacity, (you) increase rates and then you can concentrate on getting your loans closed without being bombarded by new apps."

Certain lenders in Bankrate's survey -- Bank of America, most prominently, and also Chase and Citi -- had kept rates high for the past few weeks. But they dramatically cut their rates on the 30-year fixed this week, and that's partly what's behind this week's decline in the Bankrate survey.

And then there's the Federal Reserve, which last week opened the checkbook for the first time on its promised shopping spree for mortgage-backed securities. The Fed plans to buy up to a half-trillion dollars' worth of mortgage-backed securities in the first half of the year. Think of the Fed as an extremely deep-pocketed bank, competing with other banks to provide money for mortgages. When banks compete, you win: Rates go lower.

Bankrate.com's corrections policy

-- Posted: Jan. 8, 2009

5 Things You Never Knew Your Cell Phone Could Do

Nan Dietrich (John R. Wood Realtors) — Fri, 05 Dec 2008 08:45:10 -0600

For all the folks with cell phones. (This should be printed and kept in your car, purse, and wallet. Good information to have with you.)

There are a few things that can be done in times of grave emergencies .

Your mobile phone can actually be a life saver or an emergency tool for survival. Check out the things that you can do with it:

FIRST
Emergency

The Emergency Number worldwide for Mobile is 112. If you find yourself out of the coverage area of your mobile network and there is an Emergency, dial 112 and the mobile will search any existing network to Establish the emergency number for you, and interestingly, this number 112 can be dialed even if the keypad is locked. Try it out.

SECOND
Have you locked your keys in the car?

Does your car have remote keyless entry? This may come in handy someday. Good reason to own a cell phone: If you lock your keys In the car and the spare keys are at home, call someone at home on their cell phone from your cell phone. Hold your cell phone about a foot from your car door and have the person at your home press the unlock button, holding it near the mobile phone on their end. Your car will unlock. Saves someone from having to drive your keys to you. Distance is no object. You could be hundreds of miles away, and if you can reach someone who has the other 'remote' for your car, you can unlock the doors (or the trunk).

Editor's Note: It works fine! We tried it out and it unlocked our car over a cell phone!.

THIRD
Hidden Battery Power

Imagine your cell battery is very low. To activate, press the keys *3370#.  Your cell phone will restart with this reserve and the instrument will show a 50% increase in battery.

This reserve will get charged when you charge your cell phone next time.

FOURTH
How to disable a STOLEN mobile phone?

To check your Mobile phone's serial number, key in the following Digits on your phone: *#06#. A 15-digit code will appear on the screen. This number is unique to your handset.

Write it down and keep it somewhere safe.

If your phone gets stolen, you can phone your service provider and give them this code. They will then be able to block your handset so even if the thief changes the SIM card, your phone will be totally useless. You probably won't get your phone back, but at least you know that whoever stole it can't use/sell it either. If everybody does this, there would be no point in people stealing mobile phones.

And Finally.....

FIFTH
Free Directory Service for Cells

Cell phone companies are charging us $1.00 to $1.75 or more for 411 information calls when they don't have to. Most of us do not carry a telephone directory in our vehicle, which makes this situation even more of a problem. When you need to use the 411 information option, simply dial: (800) FREE411, or (800) 373-3411 without incurring any charge at all.

Program this into your cell phone now.

Market Update for October 2008

Nan Dietrich (John R. Wood Realtors) — Fri, 21 Nov 2008 10:57:59 -0600

Attached are the October market stats for Naples, Bonita Springs, and Estero markets. The good news is that inventory is lower now than a year ago. The bad news is that inventory of single family homes and condominiums priced under $250,000 continues to increase, and is higher in 2008 than 2007. Since many foreclosures and short sales fall into this segment, it is likely that this will not change in the near term. Other than single family homes over $5 million, which also shows an increase, all other price segments have decreased from 2007 levels. Since October and November are typically the time of year when listings increase, it remains to be seen whether the pace of sales will also increase and extend this trend.

Also in the category of good news for the market is the ratio of pended sales to new listings taken. Year-to-date October 2007, there was one sale for every four new listings taken. In October 2008, that ratio has improved to one sale for every three new listings taken.

Home sales up 40 percent in October

Nan Dietrich (John R. Wood Realtors) — Mon, 17 Nov 2008 11:06:11 -0600

Meanwhile, the median price dropped by more than 37 percent, to $226,000

The Naples housing market is like a teeter-totter.

Sales are up, prices are down.

In October, total home sales rose

40 percent to 363, from 259 a year ago. Meanwhile, the median price dropped more than 37 percent to $226,000, according to a monthly report by the Naples Area Board of Realtors.

The report tracks sales made in Collier County through the SunshineMLS, or Multiple Listing Service, excluding Marco Island.

Condo sales were up 17 percent. Single-family sales rose 65 percent.

"I feel that if we look out five years from now people who are purchasing today are making very smart decisions," said Brett Brown, president-elect for NABOR and a managing broker for Miromar Realty of Southwest Florida.

Foreclosures and short sales continue to drag down the overall median price in the Naples market.

Short sales are sales made for less than the bank is owed to avoid foreclosure. They are an increasing share of the market with unemployment on the rise and more borrowers upside down on their mortgage, or owing more than their home is worth.

In October, new foreclosure filings reached a record high in Collier County. They surpassed 800 for the first time. That was up from a record 751 in September.

In the under $300,000 category, the median price dropped 17 percent last month to $157,000, down from $214,000 a year ago. That's where a lot of the foreclosures and short sales are happening.

In the past year, the NABOR report shows, the median price for homes selling for more than $300,000 has increased 1 percent. Realtors hope that may be a sign of some stabilization in the moderate and higher-end markets.

Phil Wood, managing broker for John R. Wood Realtors in Naples, called it a "very pleasant surprise."

He said if more banks continue to work with borrowers, prices at the low end of the market could finally stop dropping.

"From the people I've talked to and the things I've read, the general consensus seems to be that the rate of foreclosures will slow down," Wood said. "There will be some more foreclosures, but for the most part the banks are trying to do everything possible to not have a foreclosure."

The NABOR report shows homes aren't sitting on the market as long.

For single-family homes, the average number of days on the market dropped to 166, from 208 a year ago in October. Condominiums are selling a bit faster too.

Pending sales - or sales that have yet to close - continue to rise. In October, they increased 83 percent to 464, up from 254 a year ago.

Pending sales for homes priced at less than $300,000 increased 255 percent to 337, up from 95 a year ago.

The highest number of sales was in North Naples - at 108. Naples Beach was second with 79.

In October there were 10,815 homes on the market, up from 10,689 a year ago.

Despite a bad economy and the housing slump, there still have been more than 4,500 closings this year in the Naples area, Brown said.

"It's a statement that there is still a lot of people out there willing to step to the plate and purchase real estate," he said.

Naples City Council advised to delay decision on buying Renaissance Village property

Nan Dietrich (John R. Wood Realtors) — Mon, 17 Nov 2008 11:02:30 -0600

NAPLES - There's a plan in the works.

But as of Friday, the details were still unknown.

Naples City Council is expected to hear a presentation Monday about the possible acquisition of a portion of Renaissance Village. The presentation is expected to detail plans for the property, as well as how much is available to the city.

While council was notified of the presentation regarding the 22-acre parcel of land on Goodlette-Frank Road and Fifth Avenue South, there was no backup information regarding the specifics of the presentation. That prompted Naples City Manager Bill Moss to send a memo to council suggesting that no decision or direction be made during Monday's meeting.

Naples attorney John Passidomo, who is representing the owner, said Friday he did not want to release information regarding the possible acquisition until Monday, when council sees first sees it.

The property is owned by local developer Jack Antaramian, and has an appraised taxable value of $17.9 million.

Several council members have expressed interest in all, or part, of the property in the past few months. According to a staff report prepared by Moss, 15 acres of the 22 acres may be available.

A small parcel of land has been dedicated to a Florida Gulf Coast University Naples campus. Passidomo said in an August 28 report in the Naples Daily News that one parcel of land is being considered for an office building, while a second parcel could be acquired by a third party.

The issue of purchasing Renaissance Village first came up in June, when Mayor Bill Barnett said he spoke to Antaramian about whether the city could purchase the property. Around the same time, Councilwoman Teresa Heitmann said she was approached by several community members who asked whether the city was considering purchasing the property.

Barnett has said the city could use the property as a public park, while Heitmann has said she thought the property would be ideal for a storm water park because of its size.

The property was rezoned in 2005 to a planned development, with the requirement that development begin within 60 months. That means construction needs to begin before June 15, 2010, or else it will reverse back to the original zoning designation.

Naples City Council meets at 8:30 a.m. Monday at Naples City Hall, Eighth Street South.

New-home starts up in Collier in September

Nan Dietrich (John R. Wood Realtors) — Thu, 13 Nov 2008 11:30:50 -0600

NAPLES - New-home starts edged up slightly in September in Collier County.

Last month, county government issued 60 single-family permits, up 5 percent from 57 a year ago, but down 61 percent from 153 a year ago.

The year-to-date total is 520, down 54 percent from 1,134 a year ago and off 82 percent from 2,828 in 2006, according to a report by The Bidder's Broker in Naples.

Multifamily permits stood at 17 last month, up 31 percent from 13 a year ago and down 95 percent from 324 in 2006.

Year-to-date there have been 279, down 73 percent from 1,042 last year and off 86 percent from 1,959 from 2006.

In neighboring Lee County, there were 61 single-family permits issued in September, down 59 percent from 147 a year ago and 93 percent from 829 in 2006. The year-to-date total is 976, off from 4,282 a year ago and down from 14,501 two years ago.

There were 26 multifamily permits issued in Lee County last month, up from zero a year ago and down 82 percent from 148 in 2006.

The year-to-date total is 312, off 80 percent from 1,547 last year and down from 3,625 in 2006.

"As monthly permit totals continue their year-over-year downward trend below levels not seen in decades, the best that can be said is that the rate of decline appears to be slowing," said Ross W. McIntosh, broker for The Bidder's Broker.

"Other than for homes being sold near cost of construction on deeply discounted home sites, or a few custom homes in select locations, home builders, like other frustrated homeowners, are struggling to make sales in the current environment," he said.

Home sales increase again in Naples

Nan Dietrich (John R. Wood Realtors) — Fri, 17 Oct 2008 10:45:43 -0500

NAPLES - The buyers are still out in Naples.

In September, home sales activity increased again for local Realtors.

Pending sales - sales that have yet to close - grew 106 percent, while overall home sales grew 50 percent, according to a monthly report by the Naples Area Board of Realtors.

The report shows sales made through the SunshineMLS, or multiple listing service, in Collier County, excluding Marco Island. There were 361 total sales in September, up from 240 a year ago.

Meanwhile, pending sales grew to 481, from 234 last year.

"I think that's a good indicator there is a lot of people out there who are really getting off the fence, who have had this pent up demand," said Brett Brown, managing broker for Miromar Realty of Southwest Florida and NABOR's president-elect.

Pending sales are up in all six geographic areas that NABOR tracks, from Naples Beach to Immokalee. The biggest jump was seen in Central Naples, where they grew nearly 244 percent to 110, up from 32 last year.

The highest number of sales was in North Naples - at 104.

"Generally speaking, sales are up in all areas, whether it's pending or sold. I think that is the most important part of this. It's not about what happens month to month. It's about a trend," said Tom Bringardner, president of Premier Properties of Southwest Florida.

Pending sales have been up the last eight months over last year, according to NABOR's report. Sales have been up for nearly that long.

The under $300,000 market is still drawing the most activity. In this most affordable price range, there were 225 total sales in September, up from

91 a year ago, and pending sales grew to 320, from 88 a year ago.

In September, 123 single-family homes sold for less than $300,000, along with 102 condos.

The interest from buyers has spread to higher priced homes, Bringardner said. Pending sales for homes priced at $500,000 or more are up 22 percent.

There were 92 sales made in the $500,000 to more than $2 million categories, up from 75 a year ago.

"There are so many compelling values out there in homes that it is very difficult for anyone who is remotely interested in purchasing real estate not to do it," Brown said.

The median sales price - the price at which half the homes sell for more and half for less - dropped to $240,000 in September, down from $366,000 a year ago.

"The question is ‘When is the price going to stop dropping?' Median price has been consistently going down all year," said Joe Ballarino, founder and president of Amerivest Realty in Naples.

Some buyers are still holding out waiting to see if prices drop more.

"It's a dangerous game. The inventory is coming down. The activity is higher than it was," Ballarino said.

The rising number of foreclosures in Collier County continue to bring prices down. New filings jumped to a record 751 in September. That was up from 674 in August - and beat the all-time high of 716 set in June, according to the Collier County Clerk's Office.

Most of today's buyers don't appear to be investors, but there are some scooping up deals, Bringardner said.

"Have I seen a giant influx of investors and vulture funds coming in here to purchase up those properties? I have not," he said.

For single-family homes, the average number of days on the market fell slightly in September to 156, from 187 a year ago. But there were more of them on the market - 5,387, compared to 5,164 a year ago.

The inventory of condos dropped last month to 5,271, from 5,580 a year ago.

Looking forward, Realtors are both jittery and optimistic. Some saw their activity drop off earlier this month when the stock market started crashing because of a financial and banking crisis that led to a $700 billion government bailout.

"The week that we saw the banks start to fall apart, everybody sat on their hands. It was absolutely stone cold dead," Brown said.

It didn't take long for business to start picking up again, he said.

At Downing-Frye Realty Inc., showings are still "off the charts," said Mike Hughes, a company vice president.

In September, the company's Naples office had more than 1,400 showings, he said.

"What is encouraging is our contracts for the month of October look pretty good and this is the time of year when you don't have a lot of people here," Hughes said. "I'm hoping this is an indication of what season is going to bring."

Season starts in November.

More volatility in the stock market and tight credit could make it a tough selling season.

"Are we watching the market and wondering what's going to happen? We sure are. I don't know of anybody who is not.

But I'm continuing to look forward to a pretty good season," Bringardner said.

New Listing in Oakmont in Pelican Bay

Nan Dietrich (John R. Wood Realtors) — Wed, 15 Oct 2008 15:04:11 -0500

New Listing in Grosvenor in Pelican Bay

Nan Dietrich (John R. Wood Realtors) — Wed, 15 Oct 2008 15:01:28 -0500

New Listing in Bay Colony

Nan Dietrich (John R. Wood Realtors) — Wed, 15 Oct 2008 14:35:20 -0500

Pocket Listing in Aqualane Shores in Naples, FL

Nan Dietrich (John R. Wood Realtors) — Wed, 15 Oct 2008 14:14:42 -0500

Call me on this pocket listing in Aqualane Shores on large waterfront lot, navigable water with no bridges to the Gulf, with two boat lifts. Key West style 3 + or 4 bedroom. Very open large rooms. Excellent move in condition. Many extras, elevator, storm shutters, pool, hot tub, outdoor bar, great view. I have lots of photos. This is a special opportunity.

Unique Opportunity in Pelican Bay

Nan Dietrich (John R. Wood Realtors) — Tue, 14 Oct 2008 08:57:13 -0500

I have a unique purchase opportunity available in the St Raphael at Pelican Bay. A property under contract has fallen through. The Seller is EXTREMELY motivated to get the property under contract within the next few days. The misfortune of the cancelled contract is providing an opportunity for a lucky buyer to purchase a 3 bedroom unit in this exquisite tower for under $1,000,000.

If you would like more information, please contact me ASAP!

Economist: Now the housing market has hit bottom

Nan Dietrich (John R. Wood Realtors) — Thu, 09 Oct 2008 15:15:31 -0500

BONITA SPRINGS - A leading economist said Southwest Florida's housing market continues to sit on the bottom and Congress had no choice but to step in with $700 billion to prop up the nation's financial institutions.

Hank Fishkind, speaking in Fort Myers on Wednesday for the 21st Annual Regional Economic Outlook Conference, said it's true the rapidly passed legislation could be seen as a bailout as much as a rescue.

"It's not sufficient by itself to unfreeze the credit market, and it won't cause the recession we're in to be over," he said. "It does prevent further deterioration of the banking system."

There are those who are to blame, he said, but action had to be taken.

"They were bad people and I'd like to see them in jail," he said. "That said, that doesn't solve it."

If banks lose too much, they stop doing business, Fishkind said. If enough of them go out of business, credit cards and checkbooks and the rest of the financial structure Americans are used to stop working.

"Now, the garage is on fire and I'm sitting in the living room," he said. "Are you mad at the guy who set the fire? Yes, but you put the fire out."

Fishkind was the keynote speaker at the conference, hosted by the Chamber of Southwest Florida. At last year's event, Fishkind said the Southwest Florida housing market had bottomed out.

"It just keeps banging along the bottom," he said. "Certainly, I couldn't anticipate the financial panic."

Fishkind said foreclosures in Lee County seem to have peaked, with year-to-date numbers down, but foreclosures in Collier County doubled in the same period.

"It looks to me like we've seen the worst. Collier County's going to have some problems going forward though," he said. "I didn't think we'd see the surge in foreclosures in Collier County. I think it's the last of the speculators throwing in the towel - or being forced to."

Fishkind said he knew urgent action was needed two weeks ago when the interest on Treasury bills dropped below zero.

"The interest on T-bills was negative," he said. "People were tying up $110 to get $100 back."

Fishkind was joined by John Adams, CEO of Enterprise Florida, the state's public-private economic development group. Adams said there is reason to be optimistic in Southwest Florida.

"This region grew 20 percent faster than the rest of the state, which grew 40 percent faster than the rest of the nation," he said.

That base is still here, Adams said. No one could have predicted the national economic crisis, he said.

"We said a year ago the economy was softening," he said. "Nobody foresaw this."

"This" is a collapse that saw the loss of a huge number of jobs. More than 25,000 are unemployed in Lee County and 12,500 in Collier County. Florida lost almost 100,000 jobs in the past year.

"Nine out of 10 of those jobs lost in the economy were in construction," Adams said. "Look 50 miles north and 30 miles south. No spot more than here."

Adams said the $25 million earmark Lee County commissioners set aside this year could help a lot.

"That means someone has a little foresight in looking out over the horizon," he said. "That fund is just that much psychologically. Their heart, their intent is in the right place. That's an important signal."

Richard Pegnetter, dean of the Lutgert School of Business at Florida Gulf Coast University, said incentives won't make the difference by themselves, but will be a big plus. With basics like an international airport, highway system and the university itself in place, the region will come back, he said.

Confidence in Naples

Nan Dietrich (John R. Wood Realtors) — Tue, 30 Sep 2008 13:40:37 -0500

Arizona-based builder buys Treviso Bay sites

One developer thinks a recent land deal could be the start of a positive trend. Arizona-based homebuilder Taylor Morrison purchased 21 home sites in Treviso Bay for about $3 million last month, sign that indicates a shift in confidence in the area's real estate market, said Sanjay Kuttemperoor, president of the project's master developer, V.K Development Corp.

The subsidiary of publicly traded Taylor Wimpey already owns 40 sites in the 1,050-acre gated community being developed near St. Andrews Boulevard on U.S. 41 in Naples, according to a recent statement.

The company paid about $6 million in that deal a couple of years ago, Kuttemperoor said.

Hard Hit Areas are Pulling Out

Nan Dietrich (John R. Wood Realtors) — Tue, 30 Sep 2008 10:45:36 -0500

The hard hit areas are pulling out. This week, the Naples Daily News reported on the FAR statistical release, which indicated that the Cape Coral/Ft. Myers MSA led all other areas in Florida for August. The Naples/Bonita/Estero area, as reported on our John R Wood monthly stats, has been showing a steady trends of increased unit sales on a monthly comparison of year to year figures.

And here's something that happened in Vegas that doesn't need to stay in Vegas. They were in a tough market, like SWFL. But, as reported by Real Trends, they have bottomed and are definitely headed up. In every month since Dec. of 2007, the subsequent month had a higher number of sales. The Dec. '07 number was 2,261 sales, and the July '08 number was 4,687, an increase of 107%! Projections indicate that '08 will be only 26.6% less than their all time high in 2004, which is not bad considering what a heated and frenzied market Vegas had at that time. Too bad the media has failed to pick that up.

The markets are starting to recover, and the areas hit hardest in the real estate recession will, in general, be the ones to start pulling out ahead of the others. In case you missed it, SWFL falls into that "areas hit hardest" category. The Vegas news and our own local activity is significant as we track the developments each day. Likewise, it is significant that a few months ago, Countrywide, Fannie Mae, Freddie Mac, Bear Stearns, AIG, Merrill Lynch, Washington Mutual, Wachovia and others were in severe financial trouble. Now they are all in a relatively safe situation. So the buyouts/bailouts by the government and large private companies can only be a positive in the marketplace, definitely better than the alternatives.

A number of "experts" are now predicting the turning point of the recession to be the 2^nd or 3^rd quarter of 2009. Fortunately, it appears that SWFL, as we have done historically, will be ahead of that pace, and be continuing our upward trend line. DON'T WAIT UNTIL WORD GETS OUT OF THE CHANGE IN THE NAPLES MARKET BEFORE YOU JUMP IN!! ASK ME FOR SPECIFICS ABOUT THE AREAS/PRICE RANGE OF YOUR CHOICE!

Ray of Sunshine in the Naples Market

Nan Dietrich (John R. Wood Realtors) — Fri, 26 Sep 2008 12:28:13 -0500

NAPLES - In one economist's eyes, the Naples real estate market is now seen as "slightly undervalued."

In an interview with CNBC Wednesday night, Richard Dekaser, a senior vice president and chief economist at National City Corp., singled out Naples in talking about the "first rays of sunshine on a possible end to the housing crisis."

"Three years ago, the poster child for excess valuation in America was Naples, Florida," he said.

Not anymore. Through the second quarter of this year, prices have dropped 33 percent, he said, leading him to judge the market as "slightly undervalued." That means home prices are actually lower than where they should be.

"Now it could become even more undervalued and I suspect it will," he said in the interview. "But I think we have to appreciate the adjustment that has already occurred."

He said prices could hit bottom within six months as foreclosure rates begin to fall.

"I don't want to overstate the case," he said. "The housing bust is not over. But we are in a later stage of stabilization," he said.

Dekaser is the same analyst who labeled Naples the most overpriced market in the U.S. a few years ago.

At the end of the first quarter of 2006, National City judged that with a median home price of $383,000, prices were more than double what they should be in Naples.

Prices continue to fall.

In August, the median home price - the price at which half of the homes sell for more and half for less - dropped to $238,000 in the Naples area. That was down from $375,000 a year ago, according to a monthly report by the Naples Area Board of Realtors.

For seven straight months, sales have picked up.

It was nice to see Naples shown in a positive light in the media, especially with so much bad news going on in the banking and financial markets, said Brett Brown, president-elect for the Naples Area Board of Realtors.

He said if you took out the under-$300,000 market, where most of the foreclosures and short sales are happening, the median price would have been up 5 percent in August. Short sales are sales made for less than the bank is owed to avoid foreclosure.

Naples was the only market mentioned in the interview with CNBC.

"It shows we haven't fallen off a cliff," Brown said. "We are here. Properties are selling."

To see the interview, go to www.cnbc.com/id/15840232?video=859022956