Info: More on the rental market

Attempting to put a number on the cost of renting is akin to establishing the length of a piece of string. However, there are generalized conclusions available from poking around the MLS, speaking with agents who specialize in the rental market, and becoming familiar with the numerous large apartment complexes coming out of the ground and opening for business.

Some of the latter are offering large (up to 2,000 square feet,) well-equipped units at about $1.35 per foot per month for a full year lease. (Longer leases are not legal in Florida.) The supply of brand new units, plus the attractive rates offered to get the occupancy rate up quickly, will likely put downward pressure on existing rentals of all types, private and commercial alike. I would expect to find a dollar a foot or even less for some newly-vacated properties. Continue reading Info: More on the rental market

Info: Boomers retiring in record numbers!

According a report from CRE (Councilors of Real Estate,) baby boomers are retiring at the rate of 10,000 per day! Talk about demand for second homes or a shift in one’s choice of a legal residence!

The study also predicts continued societal shifts to what has become known as the “shared economy,” changing business paradigms as pioneered by airBNB, Uber, and Lyft. Continue reading Info: Boomers retiring in record numbers!

Info: changes in credit score math

When people talk about their credit score in the context of a home loan, they generally are referring to the number provided by the Fair Isaac Corporation — known as FICO. That index isn’t changing.

However, three other credit tracking entities, Equifax, Experian, and Trans-Union, together operate VantageScore — and that is the one that is being tweaked in at least two important areas. One relates to closing inactive accounts — which had been at least informally known to affect credit scores negatively because one’s rating was based on current debt as a ratio of the total credit available. In the future, closing unused credit lines may affect credit scores positively or not at all.

In a more important way, the new formulas will assess ‘trending’ on the total debt — meaning one will be rated at least partially on whether the amounts owed are collectively going up or down. Those who are paying debt down will likely be looked upon as less risky than people who are still piling it on.

Read more here or here.

 

Fact: Is Naples huge or small?

The term “Naples” applies to two vastly different areas. Legally, Naples is a small incorporated city in the very south-western part of Collier County. Its population was estimated last year to be 20,600. It’s what we locally call “downtown” and includes some very luxurious waterfront communities such as Port Royal, Aqualane Shores, Park Shore, and The Moorings. Naples is but 14.4 of the 2025.5 square miles of Collier County — about 7 tenths of one percent!  Continue reading Fact: Is Naples huge or small?

Trending: larger garages.

I’ve heard estimates of up to one hundred as the number of new communities, assisted care facilities, and rentals coming out of the ground here in Naples. Driving by and through those that feature new home construction, one trend is apparent: more three-car garages than ever before. About one in four new houses offer more than two spaces.

Is that because families own more cars today than in the past? Statistics seem to refute that: fewer than one in five homes have to deal with three or more cars, only a small increase over 25 years ago.

One in three buyers now shop for listings with three-car garages, while half prefer two spaces. The one car garage is the choice of only one in 10 buyers.

Reasons are many, but one factor locally is the increasing number of multi-generational homes with either a young person returning home after college or children taking care of aging parents.

Source: “America Is Building More Three-Car Garages Than One-Bedroom Apartments,” Bloomberg (Oct. 26, 2016) and “Garages in New Homes: 2015 Data,” National Association of Home Builders (Oct. 21, 2016)

Rentals: what to expect.

With the 2017 ‘season’ now officially complete, seasonal renters are either renewing for next year or seeking to upgrade in a market that is reputed to be ‘very tight.’ As with most things, it’s all relative. A search of the local MLS-controlled public access sites for a January and February rental at a rate of between $2,000 and $4,000 per month in Naples, Marco, Ft Myers Beach, and Bonita-Estero — reveals about 100 properties.

Is that all there is? Well, no. Continue reading Rentals: what to expect.

Info: NABOR study reveals now is a good time for buyers.

The Naples Area Board of Realtors® recently crunched the numbers on nearly 56,000 residential real estate transactions, taking a look at the original list price/final sale price ratios in each of the 12 months of 2016.

While these averages of averages rarely produce conclusive information on specific future transactions, this report did show significant patterns that are worth passing on.

From a buyer’s perspective, the months of January, February, March, October, and November seem to offer the best chance of getting a favorable offer accepted: with homes selling for close to 80% of list. The study shows that in the seven other months of 2016, the final price on listed properties was closer to 90% of the original price point.

The MLS shows 1,312 homes for sale at one million dollars and over. That’s about a 16 month inventory, given that there were 952 sales in the same price grouping in all of 2016.

That’s a decent buyer’s market, especially going into a three-month period in which the lowest priced offers have the best chance of going to closing. Call me if you’d like the inside word on a particular property or neighborhood.