Bonita Springs – Estero real estate trends continue their upward in pricing, while the number of sales continue downward. The median sales price for single family homes comparing August 2021 to August 2022 is up 31.8%, while the average sales price is up 46.1% in the same comparative.
Median condo sales comparisons show a 23.1% increase over the same time period, while the average condo sales price is up 27%
Here are some quick tips from Access Title Agency to our partner realtors on how to stay safe.
Access Title Agency welcomes Helen Defaira to the team!
Helen has a background in retail sales.
She has joined our Fort Myers Beach branch and is helping to centralize our order entry processes for the Lee County offices.
She is very excited to become part of the title insurance industry and is looking forward to growing in her role.
Helen will usually be the first point of contact in a transaction. She is very friendly and will go the extra mile to help get your transaction going.
Indications that the Naples area housing market is transitioning to a balanced market became more evident during August as both inventory and days on the market increased.
According to the August 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory increased 71.3 percent to 2,140 properties from 1,249 properties in August 2021. Of the homes on the market during August, 35.8 percent of them (766) experienced a price decrease and the overall list price received for the month slipped slightly to 96.4 percent from 99.2 percent in August 2021. Broker analysts say these factors are attributed to seller and buyer behaviors that resemble a healthy market environment.
While overall closed sales for August decreased 36.7 percent to 669 from 1,057 in August 2021, it increased 5.6 percent compared to July’s closed sales. Historically, closed sales and pending sales (homes under contract) in August do not outperform July’s closed and pending sales. But this year is different. “Pending sales in August increased nearly 20 percent [19.2%] compared to July,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “This means that people wrote more contracts in August, but we will be tracking to see if this becomes a
trend.”
Jeff Jones, Broker at Keller Williams Naples, commented, “There are many opportunities for buyers. The market is healthy, inventory is up, demand continues and prices are realistic. Also, with rents skyrocketing, the option to buy is more desirable.”
The overall median closed price continued to increase in August, up 30.7 percent to $575,000 from $440,000 in August 2021. “There were only 31 single-family homes and 79 condominiums under $300,000 on the market during August,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. In August 2019, there were over 1,400 properties on the market under $300,000. But with so few available in the lowest price category today, Hughes remarked that “we should expect the median closed price to continue to
stay high as long as the high-end market continues to stay very active.”
While looking at new listings reported in August, Molly Lane, Senior Vice President at William Raveis Real Estate, commented that, “We are on par with new listings compared to pre-pandemic levels in August 2019.”
There were 850 new listings in August, a 16.9 percent decrease compared to 1,023 in August 2021. Jones responded that “buyers should be aware that new listings don’t just come from new sellers entering the market, but also from existing inventory where the home’s list price was decreased or from sales that were pending but fell through and went back on the market.”
In 1980, the Florida Legislature passed the Truth in Millage (TRIM) Act. This law is designed to inform taxpayers which governmental entity is responsible for the taxes levied and the amount of tax liability taxpayers owe to each taxing authority. The property appraiser sends this information, known as the TRIM notice, to the property owner.
Truth in Millage establishes the statutory requirements that all taxing authorities levying a millage must follow, including all notices and budget hearing requirements. The TRIM requirements also provide for maximum millage levies for counties, municipalities, and independent special districts. These requirements are prescribed by chapter 200 of the Florida Statutes.
The Property Appraiser’s Office studies the real estate market and reports what has happened to property values. The property tax is the backbone of local government and helps provide services such as police and fire protection, streets and drainage construction and maintenance, environmental regulation, libraries, streetlights, garbage pickup, and parks and recreation.
The taxing authorities, not the Property Appraiser, have control over the level of taxes, through the millage rate.
The market value is the appraisal of what a willing buyer would most likely pay for your property (excluding costs of the sale). The property is assessed as of January 1, so the value reported is a reflection of the previous year’s real estate transactions and comparable property values in your area.
Your exemptions are deductions that apply to your property for Homestead or other special categories like those for disabled persons or seniors who meet certain income guidelines.
Your assessed value is generally the market value limited by the Amendment 10 or “Save Our Homes” tax cap. This 1992 amendment to the Florida Constitution limits increases in the value of homesteads (your primary residence) to 3% or less per year.
Your taxable value is the number the appraiser reports to the various taxing authorities and is the assessed value minus exemptions.
Taxing authorities calculate the annual tax rate, called the millage rate by dividing their total budget (their spending) by the total taxable value reported to them. The millage rate is simply a name for the rate, which the taxing authorities set in order to balance their budgets. Millage is a rate expressed in dollars per thousand (one mill just means you pay one dollar of tax for each $1,000 of taxable value).
Under Florida law, when a taxing authority sets a millage rate higher than the rate which would produce the exact same revenues as the previous year, they must properly advertise their action as a tax increase. This rate, which would result in no change in revenue, is called the rollback rate. As a practical matter taxing authorities are rarely able to adopt the rollback rate, since the cost of government services generally rises with the cost of everything else.
January 1 is the date that determines value; it is also the date for residency and ownership requirements to qualify for homestead exemption.
January 1 – March 1 is the normal filing period for Homestead and other exemptions such as widow/widower, disability, charitable organization, etc.
August Notice of Proposed Property Taxes, called TRIM notices are mailed to property owners mid-month. TRIM is an acronym for “Truth in Millage”. TRIM notices contain your taxing authorities’ proposed tax rates for the year, the locations and times for Taxing Authorities’ budget hearings, and the deadlines for filing petitions with the Value Adjustment Board.
The TRIM mailing starts the formal protest period, which is 25 days long. During the protest period, taxpayers can file formal notices to the county Value Adjustment Board to seek to have their assessment changed.
October Value Adjustment Board (VAB) hearings are held.
November Tax bills are mailed by the Tax Collector to all property owners of record.
Exactly how is my property value determined?
For taxation purposes, nearly all property has a value, including land, buildings, and tangible personal property used in business. By law, the appraiser must accurately determine fair market value (also called “just” value). To do that, standardized and accepted appraisal practices governed by Florida law, and the Uniform Standards of Professional Appraisal Practices are used. While sophisticated computer modeling techniques are used, they also periodically inspect all property. They consider:
What if I disagree with the Property Appraiser’s value?
Discuss it with the Property Appraiser and they will conduct an informal review. The review can be done any time during the year but most are soon after the TRIM mailing. After TRIM notices are mailed, you have 25 days to file a formal protest petition with the Value Adjustment Board.
So the Property Appraiser and Value Adjustment Board are not the same?
They’re completely separate by law. The VAB is the formal review board. An independent appraiser, called a Special Master, hears both sides and makes a written recommendation to the VAB. The VAB makes the decision. The value sought is always fair market value. Short of going to court, the decision of the VAB is final.
What does the “Save our Homes” or “Amendment 10” mean to me as a taxpayer?
This is a 1992 amendment to the Florida Constitution that limits the annual increase in the assessed (not market) value of homesteaded properties to 3% or the National Consumer Price
Index, whichever is less.
So Amendment 10 is a tax cap?
Not exactly. It’s a limit on the assessed value of the parcel. It’s not a limit on the taxes charged to the property. Taxes are a product of the value times the millage rates. The millage rate actually sets the tax level. Tax levels can change more or less than 3%.
What property is affected by “Save Our Homes”?
Only properties that have a Homestead Exemption.
What happens when I buy a new home?
The cap is removed anytime ownership changes. A new property owner should file for Homestead, which will establish a new value cap on your new home during January 1-March 1 of the tax year. You can file for a future year as soon as you buy a new home. If you already have Homestead and there is no change to ownership, your exemption automatically carries from
year to year. Other types of exemptions do require an annual filing.
Is the TRIM notice exactly what I can expect to billed for in November?
No, the TRIM notice is showing you taxes and exemptions, however, the full bill that you will receive in November will also include any special assessments, CDD’s, Solid Waste, etc that are
collected by the tax collector for your district.
If I am closing in September or October, why am I paying a full year’s taxes, plus escrows for next year?
Most lenders require that any taxes that become due and payable with sixty days of closing be collected and held by the title company until the bill is available in November. The title company will collect an estimated amount of taxes plus assessments from the buyer (Prior to November) and prorate the taxes between the buyer and seller as normal. The escrow amount
that you are paying is being sent to your lender in order to accrue for taxes next year.
How does my lender determine my tax escrow amount?
Most lenders use the prior year tax amount for the total amount to be escrowed. Lenders do not normally estimate tax increases, unless there is new construction. In November your lender will most likely pay your taxes regardless of the amount you have escrowed and then bill you for any shortages and readjust your escrow for the following year. Upon receipt of your copy of the tax bill or TRIM notice you may contact your lender to receive information on their policy regarding taxes.
Elianne Onoz was born on the lovely island of Cuba just 90 miles south of Florida. When she was eight years old her family moved to the U.S. and made Florida their forever home.
In the spring of 2014, right after college, she married her best friend and started her beautiful family. Elianne has three precious daughters full or personality, who drive her completely crazy, but give her the drive, motivation and strength to be a better human each day. In 2018, she developed an interest in real estate and received her Florida Sales Associate License.
Elianne is a goal driven, disciplined and dedicated individual, constantly improving through learning something new and challenging herself. During her time as a realtor, Elianne became a top producer in her company and became involved in the community. In the past few years, Elianne has been able to work through different market conditions, which have given her the knowledge to work with and help realtors all over Florida.
In her free time, Elianne is either enjoying a good book, or spending quality time with friends and family outdoors at local parks or one of the many beaches Southwest Florida has to offer.
Elianne’s primary goal is to exceed expectations and deliver outstanding client relationships. She is determined to provide superior service in the real estate experience and provide high level value through learning, growing, and helping. She grasps the ideology that business is about building relationships, and that success is measured by gratifying experiences both professional and personal.
While Medians and Average sales prices are up over 30% comparing July 2021 to July 2022, there are trends indicating a slowing and stabilizing in the market. See the report below.
See the Report – Click Here
Access Title Agency VP, Erin Beasley, had the privilege of meeting Florida Congressman Byron Donalds at a luncheon sponsored by the Fort Myers Beach Chamber of Commerce in August. He was an excellent speaker and shared great insights about Florida water release plans, along with a few other relevant topics pertaining to current government policies.
Being in Southwest Florida, we loved hearing his passion about plans for improving Lake Okeechobee releases:
“Water serves as the lifeblood of the Southwest Florida community and economy. As your Congressmen and a father of three, I am committed to preserving and protecting our waterways for generations to come. We must find equitable solutions to Lake Okeechobee releases, while also supporting measures that protect our environment and combat harmful algal blooms. Ensuring clean water for Southwest Florida is my number one priority as your Representative, and that’s why I’ve supported multiple measures since assuming office that coincide with the preservation of Southwest Florida waterways.”
For more information and to sign up to stay informed on Byron Donalds’ efforts to improve the water release process, please visit https://donalds.house.gov/water/.
Naples housing market experts reviewing the July 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County
(excluding Marco Island), confirm the data reflected familiar activity levels akin to prepandemic summer months. Historically, closed sales in Naples during summer months trend around 800 sales a month. But during the last two years, summer sales were well above 1,000 closed sales a month. This July, overall closed sales decreased 43.4 percent to 662 closed sales from 1,170 closed sales in July 2021. For perspective, in July 2018 and 2019, there were 774 and 829 closed sales, respectively. The current level of activity is what market experts expected in a postpandemic summer and consider it a sign that we are on a path back to a balanced market.
Additional indications in the July report that support this shift is the number of pending sales. As such, overall pending sales decreased 33.8 percent to 751 pending sales from 1,135 pending sales in July 2021. The tempering of closed and pending sales, which began in June, is producing one very welcome result: an increase in inventory. In July, inventory rose 87.6 percent to 2,429 properties from 1,295 properties in July 2021 (there were 5,200 properties in inventory during July 2019).
“In a balanced housing market, buyers have more opportunities,” said Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty. “They might look at five or six homes, maybe take a break for a couple of days, then go look at five or six more. That’s possible in a balanced market because homes aren’t flying off the shelf.”
Starting in the fall of 2020 and continuing into this past spring, the Naples housing market experienced remarkable sales activity that was fueled by a frenzy of home buying by those seeking the ideal Naples lifestyle. However, as pandemic pandemonium diminished, broker analysts predicted a slow, gradual return to a balanced market would occur in Naples.
Dominic Pallini, Broker at Vanderbilt Realty, remarked that, “We have a very resilient market. When sales went off the charts during the pandemic, our inventory plummeted, and this contributed to price increases. In July, there were 905 price reductions compared to 293 price reductions in July 2021. But demand is still very high. The difference is that today, buyers don’t feel the pressure to buy like they did during the pandemic. They are taking their time to find a home that they feel justifies the price.”
Adding his opinion that our market has shifted and is now on a trajectory to become balanced again, Budge Huskey, CEO, Premier Sotheby’s International Realty, said, “The report showed pending sales were off less than closed sales in July, which indicates we have likely reached the bottom and can expect to now turn the other way.”
Market experts reviewing the July report say buyers should not expect home values to drop dramatically. While year over year price growth is trimming, demand is still high, and inventory is still not at prepandemic 2019 levels. The median closed price in July increased 16 percent to $545,000 from $469,950 in July 2021; it decreased 9.8 percent from $604,000 in June.
