I recently started a new blog called Naples Florida Real Estate Homes. The website is http://naplesfloridarealestatehomes.com The name refers to Naples, but the information also includes Bonita Springs and Estero.
On this blog I will be reporting real estate statistics and analysis of the market. Other useful information will also be posted there.
This blog will be used whenever I add new information to my website - Naples Real Estate
Please feel free to post your comments on either of these blog. I will be more than happy to answer any questions about the Naples, Bonita Springs or Estero real estate markets.
Sunday, November 05, 2006
New Blog Started
Thursday, August 24, 2006
Increases in Condominium Insurance
As the financial affects of the previous 2 hurricane seasons are felt by insurance companies, these are now being passed onto the consumer. Recently, condominium maintenance fees are increasing significantly, due to higher insurance premiums for liability coverage (building replacement, etc. - similar to homeowners insurance).
Another reason for the increases is the increase in building supply replacement costs, as well as, property value increases.
These represent a double edged sword for the significant increase in premiums.
In one case the condominium association which consists of 5 buildings with 8 units or a total of 40 units the budget called for an annual insurance premium of $23,000 for one year. This equates to about $575 per unit annually. The current year's renewal had a premium of $48,000, or about $1,200 per unit. Or, an increase of $625 per year.
The condominium units are generally 2 bedroom, 2 bath units which in January 2005 were selling for in the $160's and $170's. In today's real estate market the estimated values are in the $210,000 to $225,000 range. This equates to about a 32% increase in estimated value. This could explain part of the increase or about $184 or the $625. The remaining portion could be attributable to risk assigned and losses incurred by the insurance industry.
When purchasing a newly constructed condominium, where the developer is still in control, there maybe some relief found by the new purchasers. A careful review of the Declaration of Condominium may reveal a clause entitled "Statutory Assessment Guarantee; Liability of Developer for Common Expenses." Within this clause, it specifically states the developer's guarantees for common expenses on a per unit basis(insurance coverage is a common expense) for a period of three years from the date of recording the Declaration of Condominium or the "turnover date" (a majority of the condominium directors are elected by the unit owners), which ever is the earlier date. The guarantee is not based on a line item basis of the budgetted expenses, but by total common fees. A condominium buyer should check the "Statutory Assessment Guarantee; Liability of Developer for Common Expenses." to determine if any increase of the common maintenance fees falls within the guarantees stated.
Buyers of condominiums, often ask, "Will the maintenance fee increase significantly after they purchase?" The "Statutory Assessment Guarantee; Liability of Developer for Common Expenses." may give a prospective buyer an indication of what future maintenance fees could be, if the condominium association directors (elected by the unit owners), continues to maintain the property in the same manner as the developer. Note - the condominium association directors need to be conservative in their goals and objectives for common maintenance.
Tuesday, August 15, 2006
Osprey Cove
I have created a new page for the condominium complex called Osprey Cove. Osprey Cove is located in Estero. It is strictly a condominium community with 6 distinctive floor plans. Garden style condos have either 2 bedrooms and 2 bathrooms or 2 bedrooms with den and 2 bathrooms in a 4 story elevator building. In addition, there are two story buildings with 2 bedrooms with den and 2 bathrooms, with a detached one car garage. A special bonus with these units is they have both a front and rear screened lanai or porch. All residences have lake views.
If you wish to view one of the floor plans for the 2 bedroom, 2 bath condo with 1,194 square feet of living area.
Some of the amenities in this community are: gated, community center with state of the art fitness center, community pool and spa.
Estero is located conveniently between Naples and Ft. Myers.
You can also select another fine Estero condos for sale on my Naples real estate site.
Technorati Tags:estero real estate
Wednesday, July 12, 2006
Bonita Real Estate Market - Single Family Homes
In the month of June '06 there were 44 single family homes sold with a median sales price of $492,000.
In Jume of 2005 there were 83 single family homes sold with a median sales price of $525,000.
Both sales volume and median price are down in June 2006 versus 2005.
Looking at the pending sales for Bonita Springs single family homes - there were as of June 30th - 81 homes with a median list price of $689,000. Estimated adjusted median list price to closed sales price is $659,000. These will close between 4 and 8 weeks from the date the sales contract was signed and are an indicator as to future closed sales prices.
The Bonita Springs area may have reached the bottom as far prices are concerned, however the volume of sales still remain down.
Naples Real Estate Market - Single Family Homes
The median price for closed sales in June '05 was $505,000 (492 sales). In June '06 the median price for closed sales is $455,000 (224 sales). Thus, prices have dropped by about 10%, since last year.
The next question - will the prices continue to drop? Pending sales can tell us what "future" closed sales will be. As you are probably aware, a pending sale is one that will close between 4 and 8 weeks from the time the sales contract is signed. The pending sales as of this morning have a median price of $499,000 (385). But, we need to factor in the difference between list and sales price, because pending sales generally do not sell for list price. Based upon the difference between sales price and list price was about 94% in June 06. Using that factor - the closed sales for the future should be about $469,000.
The single family home market may have reached the bottom, due to the projected median priced closed sales in the range of $469,000 versus the June '06 median closed sales price of $455,000.
The statistics compiled within this report are from the SunshineMLS, and does exclude Marco Island and manufactured homes.
Subscribe to:
Posts (Atom)