This week as much of the world has suffered with high temperatures, weather on Sanibel and Captiva has been normal for summer rainy season – maybe even with fewer showers that usual for late July. Sunny daytime temperatures are mid to high 80’s F, while sometimes the high humidity makes it feel warmer. Occasional showers pass quickly, but it makes sense to always keep an umbrella handy.
Sanibel & Captiva Islands Association of Realtors®
Yesterday morning was the July Membership Meeting of the Sanibel & Captiva Islands Association of Realtors®. County Commissioner (former Sanibel Mayor) Kevin Ruane was the guest speaker. Following the meeting, the Caravan of new listings had six properties open for viewing, including our new listing at Captains Walk. Six properties “open” is the highest number in months, years. Probably another sign that the market is shifting.
The activity posted since last Friday in the Sanibel & Captiva Islands Multiple Listing Service and our ad from today’s “Island Sun” are after a couple of news items below.
First a few highlights from Commissioner Ruane’s talk. His transition from serving for more than a decade on Sanibel City Council, including as Mayor, to Lee County District 1 Commissioner (covering Sanibel, Captiva, Pine Island, St James City, Boca Grande, and southwest Cape Coral) sure is a plus for us.
Thank you, Kevin, for all you continue to do! Here are some items mentioned:
- Restructuring of Sherriff’s department, office, and 911 system upgrade. Lee County now ranks the safest in 67 counties. To improve safety, added 24 new sheriffs and more prosecutors.
- Emergency response improved with addition of 32 more ambulances.
- 34,000+acres preserved through Conservation 20/20 program, exceeding original goal.
- With 100% increase in Florida visitors since the pandemic, the Port Authority (SW Florida international Airport (RSW)) is undergoing a $331 million expansion. Last two years, it has ranked as fastest growing airport in the county.
- With last tropical storm causing loss of ~5” on both sides of the causeway islands, the $10 million erosion plan underway is of utmost importance to islands who rely on the causeway as their way on/off to mainland. Though some plans still being finalized, intent is to reduce number of parked cars to 450. Parking cost expected to remain free, but still being discussed in workshops. Sheriff and ranger presence has increased tremendously to keep the public in check. Causeway A expected to remain with open areas for windsurfing, kayaking, etc.
Sanibel and Captiva inventory continues to stabilize with summer activity this year significantly less than last. Economic worries seem to be the biggest factor. Below is an update of inventory today (July 22, 2022) with data from the Sanibel & Captiva Islands Multiple Listing Service.
|#||Avg $||DOM||#||Avg $||DOM||#||Avg $||DOM|
|Sold to-date 2022||98||1,132,004||42||124||1,679,275||61||22||676,943||231|
|#||Avg $||DOM||#||Avg $||DOM||#||Avg $||DOM|
|Sold to-date 2022||27||1,468,575||51||19||5,723,973||134||0||N/A||N/A|
Sanibel City Happenings
Tuesday afternoon/evening, I listened to Sanibel’s City Council Meeting where a lengthy (12-page) agenda (beginning at 9 a.m. and not wrapping up until 5:58 p.m.) covered such topics as proposed 2023 budget millage rates, changes to FEMA flood maps that become effective in November (available for viewing at City Planning Dept), non-motorized vehicles on beach, smoking on beach, digging holes on beach, operation of low-speed vehicles on roadways, boat ramp parking, and more. Sanibel City government officials and staff certainly are a thoughtful careful bunch. Kudos to all involved in this successful meeting, especially Mayor Holly Smith.
Midweek, it was announced that vegetation trimming has begun and will continue through August 3 on Periwinkle Way (including the shared use path) from the Lighthouse to Tarpon Bay Rd. The road occasionally may be limited to one lane with minor delays expected.
Last night, the City announced that their new website is “up & running”. Check it out at www.MySanibel.com.
NAR Study: International Buyers Are Back
By Kerry Smith, posted Monday July 18, 2022, on FloridaRealtors®:
“WASHINGTON – Foreign buyers purchased $59 billion worth of U.S. existing homes over a one-year period (April 2021 through March 2022) – an 8.5% increase from the previous 12-month period and the end of a pandemic-led three-year skid.
“The 98,600 existing homes sold – the lowest since NAR tracking began in 2009 – were down 7.9% year-to-year. Overall, however, Florida led the nation in welcoming foreign investment as one in four international buyers (24%) selected property in the Sunshine State.
“Top international buyer destinations
- Florida (24%)
- California (11%)
- Texas (8%)
- Arizona (7%)
- New York (4%)
- North Carolina (4%)
“Florida ranking among residents of foreign countries
- Canada: Florida was the No. 1 choice for 45% of Canadians
- China: Florida No. 4 for 7%
- Brazil: Florida No. 1 for 55%
- Mexico: Florida No. 2 for 12%
- Colombia: Florida No. 1 for 60%
“Region of origin for Florida’s top foreign buyers
- Latin America/Caribbean: 39%
- North America: 25%
- Europe: 12%
- Asia/Oceania: 4%
- Africa: 0%
- Region not identified 20%
““For the second year in a row, restrictions and general caution tied to international travel during the pandemic slowed home buying by wealthier foreign buyers,” says NAR Chief Economist Lawrence Yun. “Even so, domestic home buying demand was exceptional and, therefore, boosted home sales nationally.”
“NAR’s 2022 Profile of International Transactions in U.S. Residential Real Estate surveyed members about transactions with international clients who purchased and sold U.S. residential property from April 2021 through March 2022.
“Foreign buyers who resided in the U.S. as recent immigrants or holding visas that allowed them to live in the U.S. purchased $34.1 billion worth of U.S. existing homes, a 5.2% increase from the prior year and 58% of the total dollar volume of purchases.
“Foreign buyers who lived abroad purchased $24.9 billion worth of existing homes, up 13.2% from the 12 months prior and for 42% of the dollar volume. International buyers accounted for 2.6% of the $2.3 trillion in existing-home sales during the time.
“Typical foreign buyer home
“The average ($598,200) and median ($366,100) existing-home sales prices among international buyers were the highest ever recorded by NAR – and 17.7% and 4.1% higher, respectively, than the previous year. The increase in foreign buyer prices partly reflects the increase in U.S. home prices, as the monthly average existing-home sales price rose to $374,300, up 10% from the prior period.
“At just over $1 million, Chinese buyers had the highest average purchase price, and nearly a third – 31% – purchased property in California. “Affordability challenges along with the inability to find the right property were the top reasons given for prospective international buyers who showed interest but ultimately did not purchase a home in the United States,” says Yun.
“China and Canada remained first and second in U.S. residential sales dollar volume at $6.1 billion and $5.5 billion, respectively, continuing a trend going back to 2013. India ($3.6 billion), Mexico ($2.9 billion), and Brazil ($1.6 billion) rounded out the top five.
“For the 14th straight year, Florida remained the top destination for foreign buyers.
“All-cash sales accounted for 44% of international buyer transactions, nearly twice the rate (24%) of all existing-home buyers. Non-resident foreign buyers (60%) were twice as likely to make an all-cash purchase compared to resident foreign buyers (30%). Nearly 7 out of 10 Canadian buyers (69%) made all-cash purchases, the highest share among foreign buyers. Asian Indian buyers were the least likely to pay all-cash, at just 9%. Almost 6 out of 10 Chinese buyers (58%) and a quarter of Mexican (27%) and Brazilian buyers (26%) made all-cash purchases.
““Due to rising interest rates, overall home sales will decline in the U.S. this year. Foreign buyers, however, are likely to step up purchases, as those making all-cash offers will be immune from changes in interest rates,” Yun says. “In addition, international flights have increased in recent months with the lifting of pandemic-related travel restrictions.”
“Type of homes purchased
“44% of foreign buyers purchased their property for use as a vacation home, rental property or both.
64% purchased detached single-family homes and townhouses.46% bought a home in the suburbs while 29% bought a home in an urban area, numbers which have held steady over the last five years. 5% bought property in a resort area, down from 17% in 2012
“NAR “collaborates with groups across the country to help our members unlock and better understand the opportunities in U.S. real estate for foreign buyers, maximizing the global business potential in our local markets,” says Katie Johnson, NAR’s general counsel and chief member experience officer. The network has grown to include more than 100 real estate associations across 76 countries.”
Redfin Reports Prices Begin to Fall from Record Highs
Posted on-line Monday July 18, 2022, on “Realty Times” and sourced to RedFin:
“Inflation and high mortgage rates are taking a bite out of homebuyer budgets, leading to fewer sales and supply gains The median sale price for U.S. homes came down 0.7% from its record-breaking June peak during the four weeks ending July 10, according to a new report from Redfin (redfin.com),….
“Sellers’ asking prices also came down 3% from their May peak as the share of homes with price drops hit another new high. Home supply posted its first year-over-year increase since August 2019 as pending sales continued to slide. These changes in the housing market can be attributed to buyers reaching their limit on costs—not just of homes and mortgages, but also food, transportation, and energy.
““Inflation and high mortgage rates are taking a bite out of homebuyer budgets,” said Redfin Chief Economist Daryl Fairweather. “Few people can afford homes costing 50% more than just two years ago in some areas, so homes are beginning to pile up on the market. As a result, prices are starting to come down from their all-time highs. We expect this environment of reduced competition and declining home prices to continue for at least the next several months.”
“Leading indicators of homebuying activity:
- For the week ending July 14, 30-year mortgage rates rose to 5.51%. This was down from a 2022 high of 5.81% but up from 3.11% at the start of the year.
- Fewer people searched for “homes for sale” on Google—searches during the week ending July 9 were down 5% from a year earlier.
- The seasonally-adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—was down 18% year over year during the week ending July 10.
- Touring activity as of July 10 was up 1% from the start of the year, compared to a 23% increase at the same time last year, according to home tour technology company ShowingTime.
- Mortgage purchase applications were down 18% from a year earlier during the week ending July 8, while the seasonally-adjusted index was down 4% week over week.
“Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, the data in this report covers the four-week period ending July 10. Redfin’s weekly housing market data goes back through 2015.
Data based on homes listed and/or sold during the period:
- The median home sale price was up 12% year over year to $393,449. This was down 0.7% from the peak during the four-week period ending June 19. A year ago the median price rose 0.9% during the same period. The year-over-year growth rate was down from the March peak of 16%.
- The median asking price of newly listed homes increased 14% year over year to $397,475, but was down 2.8% from the all-time high set during the four-week period ending May 22. Last year during the same period median prices were down just 0.9%.
- The monthly mortgage payment on the median asking price home hit $2,387 at the current 5.51% mortgage rate, up 44% from $1,663 a year earlier, when mortgage rates were 2.88%. That’s down slightly from the peak of $2,487 reached during the four weeks ending June 12.
- Pending home sales were down 14% year over year, the largest decline since May 2020.
- New listings of homes for sale were down 1.7% from a year earlier.
- Active listings (the number of homes listed for sale at any point during the period) rose 1.3% year over year—the largest increase since August 2019.
- 43% of homes that went under contract had an accepted offer within the first two weeks on the market, down from 47% a year earlier.
- 29% of homes that went under contract had an accepted offer within one week of hitting the market, down from 33% a year earlier.
- Homes that sold were on the market for a median of 18 days, flat from a year earlier and up slightly from the record low of 15 days set in May and early June.
- 51% of homes sold above list price, down from 54% a year earlier.
- On average, 7.1% of homes for sale each week had a price drop, a record high as far back as the data goes, through the beginning of 2015.
- The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, declined to 101.6%. In other words, the average home sold for 1.6% above its asking price. This was down from 102.2% a year earlier.
“To view the full report, including charts and methodology, please visit:
Sanibel & Captiva Islands Multiple Listing Service Activity July 15‑22, 2022
2 new listings: Colonnades #8 1/1 $489K, Lake Palms #3 2/2.5 $699K.
2 price changes: Loggerhead Cay #271 2/2 now $900K, Sanddollar #A302 3/2 now $1.85M.
1 new sale: Gulf Beach #107 2/2 listed at $999K.
4 closed sales: Seashells #9 2/2 $650K, Sundial #D405 1/1, $851,350, Seawind #110 2/2.5 $900K, Pointe Santo #C26 2/2 $950K.
2 new listings: 9027 Mockingbird Dr 4/3 $1.895M, 1543 San Carlos Bay Dr 4/4 $2.995M.
4 price changes: 446 Lake Murex Cir 2/2 now $844K, 1289 Par View Dr 3/2 now $999K, 542 Boulder Dr 2/2 now $1.15M, 1283 Par View Dr 2/2 now $1.199M.
6 new sales: 1421 Sandpiper Cir (1/2 duplex) 3/2.5 listed at $769K, 760 Cardium St 3/2 listed at $1.172M, 3947 Coquina Dr 2/2 listed at $1.249M, 1260 Par View Dr 3/3 listed at $1.699M, 1313 Seaspray Ln 3/3 listed at $1.795M, 839 Birdie View Pt 3/3 listed at $1.995M.
1 closed sale: 1827 Middle Gulf Dr 2/2 $917K.
No new listings, price changes, or new sales.
1 closed sale: 1226 Isabel Dr $1.85M.
No new listings, price changes, or closed sales.
1 new sale: Tennis Villas #3113 1/1 listed at $535K.
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.
Until next Friday,
Susan Andrews, aka SanibelSusan