BayWatch Magazine – Property Values | December 1, 2019
Over the years, we’ve seen that our real estate market can change on a dime. This pertains to both Southwest Florida as a whole, and Bonita Bay, specifically. Just in time for season, perhaps this is happening again. There was a small flurry of sales in Bonita Bay in the third quarter of 2019, a time of year that had been historically quiet in years past. It leaves us with what feels like an active market.
As we near the New Year, we are reminded that every season is a story unto itself in terms of Bonita Bay real estate. And what this season will bring is anyone’s guess. With the real estate market being influenced by economic conditions, what does the news tell us? As of this writing, U.S. equity markets are at all-time highs. But uncertainty remains with trade talks, a negative interest rate environment overseas, and a seemingly hushed and mysterious situation with overnight lending markets domestically. That might sound scary as it relates to real estate, then again a European client recently said, “with negative interest rates back home, it only makes sense to buy this second property.” And he did.
So how to take the varying conditions and apply them to what we think about the real estate market? Overall, year-to-date pending sales are down 12% versus this point in 2018. But that might be because inventory is down 22% over the same period. At some price points, it seems there is nothing to choose from. Real estate is local, and in Bonita Bay real estate is hyper-local. As examples, entry level coach home inventory is down 20% at this time versus 2018. Whereas high rise inventory remains the same, and this represents an incredible buying opportunity in high rises.
What does this mean to you? Do you find yourself sitting around after a round of golf or a tennis game and someone says, “I love my place but I wish I never bought it”? Of course not. Instead, we tend to lament the moves we don’t make. It’s a healthy market, if it’s time to make your move then go for it. If it’s time to sell the house then now is a good time to do it. Or if it is time to transition to a high rise it is a great time to do that too. Make your move, typically being decisive has its dividends.
Gary L. Jaarda & Jeff Jaarda
John R. Wood Properties
(239) 293-1507 | firstname.lastname@example.org