It’s SanibelSusan reporting the third week of “summer quiet” in the Sanibel and Captiva Islands real estate business. I have heard some interesting behind-the-scenes comments about how things have changed here this year. There definitely is a change in occupancy with accommodations mostly at capacity and the island busy, just busy having fun and not viewing or buying or listing real estate.
This week the “Periwinkle Way late-day traffic jam” reappeared. That usually is only during the winter months from about 3 to 7 p.m. when the islands are full and day workers are leaving. It is when traffic gets backed up at the 4-way stop. Typical late afternoon summer showers may have contributed to this extra summer traffic with more visitors on the road once the sun disappears.
The July 4th festivities last weekend were well attended, with a big turn-out at SanibelSusan Realty for the parade. Here are a few photos, some taken by my cell phone, but the good ones are credited to our pal, Scott Shew, who always is great about sharing his pictures. Thank you, Scott.
As the week progressed, Scott shared a few more photos. These two at Ding Darling he said were taken when the no see-ums were out in full force so the bird in the second one might be dunking to avoid them.
Below are a few news items followed by the action posted in the Sanibel and Captiva Multiple Listing Service over the last seven days, there wasn’t much!
Heat Wave Sweeps Through Housing Market
“The housing market is getting hotter this summer, according to a preliminary analysis of June data from realtor.com®. The median list price nationwide in June rose 7% year-over-year, reaching $233,000. The median days on the market is 66 days, also down 7% year-over-year. Also, inventories are growing faster – 4% higher in June over May, but still down over last year. (That’s the case nationally, but not on Sanibel and Captiva where inventory is very low.)
“”Our early read of real estate trends in June suggests good news ahead for the U.S. residential real estate market, especially in the hottest markets with healthy growth in supply,” says Jonathan Smoke, realtor.com® Chief Economist. Traffic and searches on realtor.com® continued to set new highs in June. Unique users for June are now on pace for at least a 40% growth year-over-year and visits and searches at realtor.com® are expected to surge more than 50% and 30%, respectively, Smoke says.”
Economists Pinpoint Inventory Shortage Causes
“Inventories of homes for-sale remain low due to home owners staying put and homebuilders still keeping supplies tight, economists said during a panel discussion at the National Association of Real Estate Editors’ annual conference.
“Homes listed for resale in May were at a 5.1-month supply at the current sales pace. Most economists consider a supply of six to seven months to be balanced and healthy for the market.
“Economists at the National Association of Real Estate Editors’ annual conference pointed to several factors that are preventing sellers from putting their homes up for sale. Lawrence Yun, chief economist of the National Association of REALTORS®, blamed the bulk of the inventory shortage on the lack of new construction. “We will still have an inventory shortage if builders won’t build,” Yun said. “It is just simple math.”
“Other economists during the panel also said the persistent lack of equity four years into the housing recovery for a large number of home owners continues to prevent many would-be sellers. About 5 million homes in the U.S. — or 10% — are underwater, valued at less than the mortgage.
“Also, some home owners may be reluctant to sell partly because they refinanced in recent years at interest rates of less than 4% and they don’t want to give up those low rates, says Frank Nothaft, CoreLogic’s Chief Economist.
“The economists also noted a significant increase in single-family homes being offered for rent that have dented the overall supply of homes for-sale too. Nothaft estimates that since the downturn investors have purchased 3 million single-family homes and converted them into rentals.
“Other economists at the session also noted that stringent mortgage standards, prohibitive land costs, and limited lending to small builders was also prompting a lower supply of homes for sale.”
Study: Biggest Opportunities in Boomer Market
We aren’t giving up on those baby boomers just yet. They definitely are the largest market segment on the islands. Here’s what “DAILY REAL ESTATE NEWS” said about them last Wednesday:
“Though the real estate industry has made it a mission to bring Millennials into home ownership in recent years, a new study by research firm HouseCanary suggests we not ignore an inconvenient truth: Baby boomers have the buying power.
“The study raises questions about how wise it is to focus on Millennial buyers, given their economic limitations. If interest rates — which are expected to keep ticking up this year — were to increase to 6%, more than one in three Millennials would no longer be able to afford a home at their current prices, HouseCanary found. Millennials are carrying high debt with limited savings, and their career growth has been slow.
But baby boomers have fueled the housing market for decades as the biggest drivers of growth in the entry-level market in the 1970s and ’80s, as well as the move-up market in the ’90s and 2000s. Boomers aren’t slowing down: They’re expected to continue to drive household growth over the next 20 years “due to significant wealth and high home ownership rates,” according to HouseCanary. Over the past year alone, baby boomers accounted for 244% of household growth annually.
“”The vast imbalances in wealth and home ownership among baby boomers and Millennials are resulting in wide disparities in the demand for home buying versus renting,” says HouseCanary President JP Ackerman. “Our analysis indicates that rising interest rates and home prices will exacerbate the situation, as the Millennials’ ability to purchase homes will be severely jeopardized as monthly payments get further out of reach.”
“HouseCanary CEO Jeremy Sicklick says his company’s research indicates greater opportunity for developers to target the aging population with for-sale inventory while targeting the younger generation for-rent inventory.”
New Fire Station on Captiva
The grand opening of the new fire station on Captiva is scheduled for Sat, July 18, from 10 a.m. until noon. The public is invited. It also is the 60th anniversary of the creation of the Captiva Island Fire District. During that time, it has transformed from a volunteer bucket brigade to a squad of highly-trained professionals with equipment for not just fighting fires but also for advanced life support. Congratulations! www.CaptivaFire.com
Sanibel & Captiva Multiple Listing Service Activity July 3-10
3 new listings: Tennisplace #D31 1/1 $239K, Heron at The Sanctuary III #1B 3/2.5 $650K, Nutmeg Village #309 2/2 $799K.
No price changes.
1 new sale: Colonnades #15 1/1 listed for $225K.
3 closed sales: Sunset South #2D 2/2 $500K, Breakers West #C2 2/2 $522.5K, Nutmeg Village #214 2/2 $920K.
2 new listings: 976 Sand Castle Rd 3/3 half-duplex $495K, 3402 West Gulf Dr 3/2 $2.2M.
No price changes.
1 new sale: 1774 Bunting Ln 3/2 listed for $539K.
1 closed sale: 1325 Par View Dr 3/2.5 $695K.
No new listings or price changes.
1 new sale: 2460 Library Way listed for $324.9K.
No closed sales.
2 new listings: Bayside Villas #5144 1/2 $299.9K, Ventura Captiva #1B 2/2 $1.35M.
1 price change: Bayside Villas #5310 3/3 now $585K.
No new or closed sales.
No new listings.
2 new sales: 16785 Captiva Dr 3/3.5 listed for $1.395M, 1105 Tallow Tree Ct 3/3 half-duplex 3/3 listed for $2.0449M.
1 closed sale: 16512 Captiva Dr 7/5.5 $6.525M.
Nothing to report.
This representation is based, in whole, or in part, on data supplied by the Sanibel & Captiva Islands Association of Realtors® or its Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or its MLS may not reflect all real estate activity in the market. The information provided represents general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.
Good weekend wishes to all. Little rain is expected here over the next few days, so no traffic jams expected! Here’s hoping the sunsets are as beautiful as this one. (Thanks, Melissa!)
Cheers! Susan Andrews (aka SanibelSusan)