It has been another quiet week on the islands. No meeting at the Association of Realtors® and little action reported by the Sanibel & Captiva Islands Multiple Listing Service. No new listings on either island. That MLS activity since last Friday is posted after a couple of news items below. Also, our “Island Sun” ad from the paper today.
Photo below from Thistle Lodge. Was great to return there last week for dinner. Service, food, and view still as terrific as ever! Also had lunch today at Doc Ford’s. It also remains a favorite!
All eyes are on the economy. Wednesday when the Federal Reserve enacted its 2nd consecutive 0.75%-point interest rate increase as it tries to slow down runaway inflation, we couldn’t help but wonder when all of this will stop affecting island sales.
This week, we are thankful that the Sanibel-Captiva Bank again got a transaction done on time for a client. We love it when we can make a recommendation and it turns into a positive experience.
Local Schools Starting August 8
With Lee County schools starting in just two weeks, local kiddos already are preparing to go back.
It sure was a fast summer this year!
Inching Closer to Recession
The Sumer 2022 issue of Realtor® magazine arrived this week. It includes the following article by NAR (National Association of Realtors®) Chief Economist, Lawrence Yun:
“The next downturn may be different than the last. Look to commercial real estate for clues about the direction of the economy.
“The U.S. gross domestic product contracted in the first quarter by 1.5%. The stock market has bee tumbling. Inflation is stubbornly high. The Federal Reserve plans to continue raising interest rates. Pending home sales have fallen for six straight months and are now trending slightly below 2019 levels. The economy, in short, is on the verge of a recession.
“Yet, it will not be a straightforward recession. Despite hiring freezes at tech firms and recent job cults among mortgage lenders as refinance business dries up, the bigger problem for the economy is not a lack of jobs but rather a shortage of workers. Statistically, there are two job openings for each unemployed person. That’s why wages are up an average of 5.5% from a year ago, to nearly $32 per hour nationwide. However, inflation is gobbling the increase up with an 8% rise in cost of living.
“A recession typically means bad news for commercial real estate. But this time, the condition of the commercial market may not be an indicator about the direction of the overall economy. Demand for apartments and single-family rentals is booming because of consistent job gains and affordability challenges in the For Sale market. Low vacancy rates, though, have pushed up average rents significantly this year.
“Demand for warehouse space has surged as retailers took to avoid supply-chain disruptions. The retail sector is recovering, with more fitness gyms, nail salons, and restaurants popping up in the suburbs. Hotel bookings, air travel, and park attendance, are above pre-pandemic levels. Consumer spending in the GOP calculation was up a solid 3.1%, even after adjusting for inflation.
“Weak trade numbers – exports were down, and imports were up – brought the fall in GDP. Homeowners, after all, have accumulated sizable housing wealth: $75,100 in the last two years and $155,400 over the past five years. The stock market is going through a painful correction, though the broad S&P 500 index is up by 70% from five years ago. That’s why total net household wealth has essentially doubled from 10 years ago.
“The office market is another story. There’s no strong desire on the part of employees to return to their downtown offices. Google’s GPS tracker shows robust movement just about everywhere except in office locations during work hours. Some form of working from home will be a permanent feature of the post-COVID-19 economy. This is also the reason traffic jams are happening more often on weekends than on weekdays. Welcome to the new normal.”
Sanibel City Happenings
Tuesday was Land Development Code meeting where the agenda was the proposed revisions to the Land Development Code pertaining to Chapter 94-Floods based upon the updated FEMA Flood Insurance Rate Maps (FIRM) which include the delineation of the Limit of Moderate Wave action (LiMWA).
Though these new FEMA maps are not effective until mid-November, they result in positive changes for many island properties. The new maps may be viewed in person at City Hall in the Planning Department. Electronic versions may be seen and downloaded through the These new maps may be viewed in person at the Planning Department at City Hall. Electronic versions may be viewed and downloaded through the FEMA Flood Map Service Center search by entering the State, County and Community in the drop down menus.
Sanibel & Captiva Islands Multiple Listing Service Activity July 22‑29, 2022
No new listings.
1 price change: Loggerhead #323 2/2 now $860K.
No new sales.
3 closed sales: Captains Walk #A5 2/1 $549K (our buyer), Sandalfoot #1A3 2/2 $1.135M, Pine Cove #101 3/2 $1.65M.
No new listings.
1 price change: 446 Lake Murex Cir 2/2 now $820K.
5 new sales: 4052 Coquina Dr 3/2 listed at $1.199M, 5802 San-Cap Rd 3/3.5 listed at $1.365M 5690 San-Cap Rd 3/3 listed at $1.875M, 437 Lake Murex Cir 5/3 listed at $1.95M, 1318 Seaspray Ln 5/3.5 listed at $4.295M
3 closed sales: 1545 Serenity Ln 3/2 $820K, 947 Lindgren Blvd 3/2 $1.2M, 585 Chert Ct 3/2 $1.48M.
No new listings or price changes.
1 new sale: 1321 Seaspray Ln listed at $995K.
1 closed sale: 1226 Isabel Dr $1.85M.
CONDOS, HOMES & LOTS
Nothing to report.
This representation is based in part on data supplied by the Sanibel & Captiva Islands Association of Realtors® 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 the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.
Enjoy your weekend!
Until next Friday, Susan Andrews, aka SanbelSusan