In the Bonita Springs real estate market condominiums show some stability in new listings coming on the market, closed sales, and pending sales as one reviews the statistics and analysis, with exception of median price paid. The median sold price is lower largely due to higher priced condominiums sold in Bonita Bay and The Colony in Pelican Landing. The market report covers not only the month of December, but also for the quarter ended December 31, 2007 and 2007 in totality.
Monthly Analysis:
Listings:
The number of condo listings coming on the market in December was 150. In December 2006 the number was 153 or a reduction of slightly less than 2% in volume. In December 2005, new listings were 138 condos or increase of 8%. It would appear that there is stabilization of the number of new condos listings in a year over year review, but higher than 2005.
The number of months of condominium resale inventory is 34 months, down about 1 month from November 2007 inventory of 35 months.
Closed Sales:
The number of closed sales for condominiums in the Bonita Springs area in December was 26 versus 31 in December 2006 or a volume reduction of about 16%. This compares favorably to the national average of 16% of loans made to sub-prime borrowers. When looking at December 2005, the closed sales totaled 61, a reduction in closed sales volume of 57%. The reduction in closed sales can be attributed to the real estate slow-down as well as, the aforementioned elimination of sub-prime loan programs.
Pending Sales:
A total of 20 condos in the Bonita Springs area were pending sale as of the end of December. In December 2006, 26 condos were pending sale as of month end. While in 2005 there were a total of 53. With pending sales we can see the trend or impact of the elimination of liberal underwriting requirements and sub-prime borrower programs, when comparing pending sales for December 2007 to 2006 and 2005.
Median Price Paid:
The median price paid for a condominium in the Bonita Springs for the month of December 2007 was $319,500. The median price paid in December 2006 was $555,000. The median price paid in 2005 was $341,000. In 2006, there were 8 closings where the condominiums were over $1 million and other condo residences in Bonita Bay and The Colony in Pelican Landing which resulted in the higher median price.
For the year over year December analysis one can see the number of months of inventory of resale condos reducing by about one month, similar number of condos coming on the market, pending sales reflecting the impact of the elimination of sub-prime loan programs, and the median price paid in the Bonita Springs area declining by slightly more than 6%.
Quarterly Analysis:
Listings:
During the 4th quarter ending December 31, 2007, the total number of new listings was 528 versus 602 in 2006 and 482 in 2005. The decrease in the new listings for the 4th quarter versus 2006 and increase over 2005 reflects some volatility in the Bonita Springs condominium market.
Closed Sales:
A total of 86 condos were sold in the 4th quarter of 2007 versus 92 in 2006 and 177 in 2005. The reduction of 6 condos between 2007 and 2006 is insignificant considering the tighter credit criteria and elimination of liberal loan programs. While between 2007 and 2005 the reduction of 91 or 51% is substantial.
Median Price:
The median price paid for a condo in the Bonita Springs area during the 4th quarter of 2007 was $337,150. The median price paid in 2006 was $470,000 and $353,500 in 2005. The median price decrease between 2007 and 2006 was largely related to the sales of condominiums in Bonita Bay and The Colony in Pelican Landing. However, the reduction between 2007 and 2005 was approximately 5%.
2007 Year Analysis:
Listings:
In 2007 there were a total of 2044 new listings to come on the market for sale. In 2006, the total was 2496 and 1721 in 2005. The new listings in 2007 were 452 units less than 2006, or roughly 22%. The reduction could be a sign that future new listings will trend down as well.
Closed Sales:
During 2007, 434 Bonita Springs condos were sold compared to 454 condos in 2006 and 968 in 2005. The reduction in the total number of condos sold in 2007 compared to 2006 was only 22 condo units. This could suggest that the mortgage crisis did not affect the condo market as well as buyer confidence in the condo market due to the reduction in median prices paid for a condo.
Median Price:
The median price paid for a condo in Bonita Springs in 2007 was $321,250 versus $397,250 in 2006 or a percentage decrease in value of slightly more than 19%. The median price was $349,000 in 2005. The increase in value between 2007 and 2005 was about 5%. The median price in 2006 was affected by 49 condominium residences sold in The Colony in Pelican Landing with a median price of $1,025,000 and 78 condo units in Bonita Bay with a median price of $620,000.
What is very interesting to note is that the median price paid for a condo in Bonita Springs during 2004 was $225,000. The big question is will the prices remain so stable? Especially when you consider that in 2006 the median price for condos sold that were built in 2004 and subsequently had a median price of $425,250. Be sure to read my post on the 2008 Bonita Springs real estate forecast from Florida economist, Hank Fishkind.
Post updated for Florida real estate.
? will median price continue to drop in 2008
Hi John,
Thank you for your question. Since you are asking this question in the Bonita Springs condo market report post, I will address only this category.
The median price for condominiums in Bonita Springs for 2008 will remain flat. However, we will see median price changes both up and down depending upon the neighborhood where the condominium is located, as well as, its age (the year in which it was built).