Happy Friday the 13th from SanibelSusan. It has been a very quiet week on the islands. Last weekend, when I manned the office, it was fun to write and negotiate an offer. Those are the best kind of surprises, particularly when it’s a sight-unseen purchase. That sale was one of the few posted in the Sanibel & Captiva Islands Multiple Listing Service (MLS) this week, actually the only Sanibel condo sale. Details of all the action posted since last Friday are after a few news items below.
Gulf & Bay Waters Around Sanibel & Captiva
Last weekend, the aftermath of Dorian created a little havoc with red drift algae washing up on some Sanibel beaches (mostly east-end) and creating a bit of a stink. Or the thought was that rotting algae was the cause of the smell.
After complaints, the City brought in equipment and started cleaning up the algae at Lighthouse Beach. Click on the link below to see the drone aerials taken for the City on Tuesday morning. If you pan onto the beach near the “green roof” on the south side at Lighthouse beach, you will see the equipment and workers then, removing the algae. https://cityofsanibel.s3.amazonaws.com/LH9-10-19/index.html?fbclid=IwAR3DSv2s_4RWlDscmsk_zRVIhkolOVaUaKd-wfI9avKwWn4WVxL5FxdQTyQ
As follow-up, the City posted condition reports for several days on www.mySanibel.com about each of the island beaches. But, by Wednesday the beaches were all clear with the nasty odors gone. Some say that it could have been the offshore water itself that was creating the smell, from decayed material on the gulf floor that was stirred up during the hurricane. Mid-week, the wind had changed direction. That is when it all changed – a good example of how the beaches, like the shelling, can be different every day.
The picture below was posted today on the “Sanibel Island” Facebook page and described as in front of the Sanibel Inn at 10:15 a.m. this morning. The Sanibel Inn is at the end of Lindgren Blvd which is a continuation of Causeway Rd, so the photo is a good representation of what the east-end beach looks like. Thank you to Gina Frasca for sharing her photo.
Comparing water quality this summer to last year, this year there has been no evidence of red tide. Though the water level is high at Lake O, there have been no water releases this direction for many months. Fingers crossed that no more tropical storms come this way or that rains linger over the lake.
Peak hurricane time passed this week, as we remembered Hurricane Irma from two years ago. Now we look forward to November 30, when the 2019 hurricane season officially is over.
It has been bright sunny and warm here pretty much all week, but a few showers just began and are expected to occur off-&-on over the next few days as the tropical disturbance out in the Atlantic travels up the eastern seaboard.
76% of All Home Buyers Use Their Phones to Find Properties
Wondering how real estate is done in today’s digital age? The below article by Information, Inc. was published last month by the National Association of Realtors®.
“CHICAGO – Buyers turn to mobile devices to find properties and connect with real estate agents. This puts increasing importance on real estate pros to make sure websites are mobile friendly and connecting to clients in the ways that they desire.
“The typical home buyer used a mobile device to search for properties online, looking at websites with photos, home listings, and information about the homebuying process, according to the newly released “Real Estate in a Digital Age 2019 Report” published by the National Association of Realtors® (NAR) that looks at technology use within transactions.
“Overall, 76% of all buyers say they found their home on a mobile device – and 17% said they found their agent on a mobile device. The younger the buyer, the more likely they are to use mobile searches. Eighty-one percent of older millennials, 80% of younger millennials, and 78% of Generation X found their home on a mobile device compared to 68% of younger baby boomers, the NAR report finds.
“Type of communication – Ninety-three percent of real estate pros surveyed said they prefer to communicate with clients through text messaging, phone calls (93%) and email (92%). The mediums were more popular than instant messaging (38%) and postal mail (27%).
“Websites – The website features respondents find most helpful are photos (87%), detailed information about properties (85%), floor plans (52%), virtual tours (46%) and real estate agent contact information (42%). Half or more of respondents also valued property listings, agent/staff profiles, customer reviews/testimonials, mortgage/financial calculators and information on the home buying and selling process.
“Additional report findings:
“Social media: Real estate pros cited social media as the top tool for generating high-quality leads (47%), followed by Multiple Listing Service websites (32%).The main reasons cited for using social media was to promote listings, help build and maintain relationships with existing clients, and a belief that they’re “expected” to have a presence on social media sites nowadays. The top social networks used by Realtors: Facebook (97%), LinkedIn (59%), Instagram (39%) and Twitter (33%).
“Drones: Twenty-nine percent of real estate pros have hired a professional to operate a drone for their business, and 5% personally use one. An additional 14% say they plan to use drones in the future to capture aerial pictures or videos of their listings.”
iBuyer Perspective: Not New and Not Much to Worry About
Have you heard about iBuyers? We have not seen them on the islands, though I have had inquiries from them. Here is an article about them, posted this week on Florida Realtors®: Realtor Bill Lublin, lead author of e-Pro and Florida Realtors® convention speaker, says iBuying has nothing to do with tech. They’re “instant buyers,” and “we’ve had them for years.”
“ORLANDO, Fla. – Bill Lublin, a Realtor® from Pennsylvania, lead author of e-Pro and a speaker at last month’s Florida Realtors® Convention & Trade Expo, says iBuying has nothing to do with tech. “It’s an ‘instant buyer’ and we’ve had them for years,” Lublin said. “That’s not new.”
“The big difference between flippers and iBuyers is the type of homes they want to buy. Flippers often want a fixer-upper they can improve and sell for a profit. iBuyers, however, look for value-added flips, said Lublin. “They want livable houses. Polish-and-buff kinds of buyers – minimal repair amounts.”
“New iBuyers continue to come onto the market, but the biggest – Opendoor, Knock, Offerpad, Zillow Instant Offers and Redfin Now – are “fueled by cash,” Lublin said. “Opendoor, the first one, has $1.3 billion in equity raised; Zillow has a $7.1-billion market cap; Offerpad has $150M in equity; Knock has $60.5 million equity raised (Knock is slightly different – buying and selling you another one.) Redfin has an $18 billion market cap.”
“As corporations, the iBuying concept is new, and investors want to get in on the ground floor. That makes them less concerned about profitability for now – and more concerned about becoming one of the dominant iBuyers in the U.S.
“Other iBuyer differences, according to Lublin: People go to the iBuyers websites, fill out a form about their house, and request an offer. An inspection might be requested, but “It all starts with someone raising their hand and saying they want an offer on their house,” Lublin said.
“iBuyers use algorithms. They calculate upfront what they can pay, what they need to sell the home for, and what the cost of holding is. Like Zillow home price Zestimates, iBuyers use an AVM (Automated Valuation Models) to calculate a home’s value. “It’s an educated guess,” said Lublin. “AVMs don’t include the things that make sales, such as views, neighbor’s flowers, etc.”
“Each iBuyer company has targets. Offerpad, for example, targets homes valued from $200,000 to $400,000. “They don’t want to buy everything. They identify a sweet spot in their business model, and that’s the only thing they buy,” said Lublin. “Just like Realtors have a market niche, they’ll stray from it if a potential sale comes up – but when iBuyers stray, it hurts their bottom line.
“Observers who wonder how the iBuyers make money may find out that they don’t – or not much money. “They’re only marginally concerned with profitability,” said Lublin. “They have tons of money to go out and experiment with a new business model. Redfin says they weren’t profitable in their first 10 years, and they made the most amount of money from their IPO. Speed of growth fuels profit in the beginning. None of these companies is profitable so far, and that’s a competitive advantage.”
“iBuying may not debut in all markets. Cities like Philadelphia have an older housing stock, for example. iBuyers are more attracted to metros, such as many in Florida, with a newer housing stock that’s easier to value. iBuyers with secondary companies – Zillow’s mortgage company, for example – could also benefit via their related industries.
“While the iBuyer share of the market isn’t expected to get large – Morgan Stanley projects a 3% market share by 2030 – it still could potentially pick up a large numerical number of sales.”
Sanibel & Captiva Real Estate Scoop
Below is an update on the year-to-date sales posted in the islands MLS – first on Sanibel, then Captiva. It compares inventory today, sales year-to-date, sales over the last three years, and the sales during the market peak, 13 years ago, in 2006. Though averages, these statistics shows the market downturn from the water woes last summer. Even so, things are looking up!
Status as of 9/13
|#||Avg $||DOM||#||Avg $||DOM||#||Avg $||DOM|
|Sold in 2018||155||720,617||172||218||1,112,748||162||21||602,095||240|
|Sold in 2017||140||728,793||188||186||1,004,237||163||32||327,229||504|
|Sold in 2016||143||717,768||217||181||979,576||176||25||487,095||571|
|Sold in 2006||143||866,972||147||156||1,143,682||186||18||523,917||158|
Status as of 9/13
|#||Avg $||DOM||#||Avg $||DOM||#||Avg $||DOM|
|Sold in 2018||27||797,532||153||25||2,127,352||290||0||N/A||N/A|
|Sold in 2017||34||671,551||261||22||2,457,023||394||2||2,312,500||1,005|
|Sold in 2016||22||873,636||314||27||3,195,000||284||2||3,150,000||365|
|Sold in 2006||21||1,362,476||180||10||2,307375||334||4||2,218,750||432|
(Note: Average $ is average asking price for properties “For sale” and “Under contract”.)
Sanibel & Captiva Islands Multiple Listing Service Activity September 6 – 13, 2019
2 new listings: Heron at The Sanctuary #3B 3/2.5 $885K, Golden Beach #3 3/2.5 $1.499M.
1 price change: Sundial #H211 1/1 now $395K.
1 new sale: Sundial #I104 1/1 listed at $469K (our buyer).
1 closed sale: Seashells #12 2/2 $360K.
1 new listing: 1954 Roseate Ln 3/2 $599K.
8 price changes: 401 Raintree Pl 3/1.5 now $475K, 5745 Pine Tree Dr 2/1 now $498K, 1401 Sandpiper Cir 3/2.5 half-duplex now $509.9K, 681 Rabbit Rd 3/2.5 now $549K, 5303 Umbrella Pool Rd 3/2.5 now $648K, 760 Cardium St 3/2 now $699.9K, 1010 Kings Crown Dr 3/3 now $1.095M, 2385 Wulfert Rd 4/5 now $1.199M.
2 new sales: 1203 Kittiwake Cir 3/2.5 listed at $539K, 725 Donax St 6/6 listed at $1.295M.
3 closed sales: 1520 Centre St 3/2 $409K, 1035 Blue Heron Dr 3/2 $1.42M, 852 Lindgren Blvd 3/3 $1.595M.
No new listings.
1 price change: 1800 Woodring Rd now $2.595M.
No new or closed sales.
2 new listings: Bayside Villas #5316 3/3 $660K, Beach Homes #30 4/4.5 $3.949M.
No price changes.
2 new sales: Sunset Beach Villas #2216 1/1 $519.9K, Gulf Beach Villas #2008 2/2 listed at $639K.
2 closed sales: Beach Villas #2436 3/2 $812.5K, Ventura Captiva #2A 3/3 $900K.
1 new listing: 17041 Captiva Dr 2/2 $1.699M.
No price changes.
1 new sale: 15161 Wiles Dr 5/5.5 listed at $2.4M.
1 closed sale: 16801 Captiva Dr 3/3.5 $1.8M.
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, wishing you clear skies & sunny days!
Susan Andrews, aka SanibelSusan