Absorption rates have nothing to do with sun screen but they do tell us how many months it will take to "absorb" all the units for sale in Pelican Bay. The formal definition of Absorption Rate is: The ratio of the number of properties in an area that have been sold against the number available. Used to show the volatility of a market.
As of April 8, 2009, Pelican Bay has a total of 443 properties for sale. April 8, 2008 - April 8, 2009 saw 206 closed sales in Pelican Bay. During this period of time, we had an average of 17 sales a month. As of April 8th, we have 443 units for sale. If we divide this number of units available for sale by the 17 sales a month, we have an inventory that could last for 26 months. A "normal" market is said to have an inventory of 6 months.
My last blog entry talked about taking your home off the market if you really did not have to sell it. I keep harping on this because I follow the market and I know our inventory will take at least 26 months to deplete. Why place your home on the market if you really do not have to sell? Even with all the beauty that Pelican Bay has to offer, we are still in a price driven market. Roughly 66% of all listings are currently failing to sell in Pelican Bay. A listing coming on the market today in Pelican Bay has less than a one in three chance of selling.
If you scroll down this blog, you'll see some opinion boxes on the left hand side. It is interesting to note that people responding to the Home Seller question, Is your home sold because it is over priced? 44% of the 91 people who responded said "Probably!" I am curious if these people really don't have to sell their homes or if their Realtor® has not been communicating with them about the market.
We live in an incredibily wonderful area. I have tremendous joy each time I introduce a new buyer to Pelican Bay and they purchase a home here. I always hope they will enjoy this community as much as my husband, Don, and I enjoy it. Not much beats having dinner down at the Sandpiper Restaurant on the beach and watching gorgeous sunsets.
Should you be thinking of selling your Pelican Bay home and would like a candid assessment of what it would take to sell your home in today’s market, I would be happy to help. Feel free to give me a call at 239-594-2780 or E-mail me at Lynn@NaplesBuys.com
Looking for a home in our unique beach community? Search here, once at the search page, you can search by development, save your search and I will send you out new listings to you daily.
Care to share a comment with us? Just click on the comment link at the bottom of this blog entry. Comments are always welcome.
How did you bring in the New Year? My husband Don and I enjoyed hosting a New Year's Eve party at our home for our friends. We had lots of champagne, lively music, tons of food that our friends had brought and a basket full of noisemakers. After a festive New Year's Eve party at our home the night before, talking a walk to enjoy the first sunset of 2009 was a relaxing idea. The hustle and bustle of the holidays, company, entertaining and real estate work had totally exhausted me.
What a delight it was to see this lovely sunset and contemplate what 2009 will bring for my family, friends and the real estate market in Pelican Bay. I always find it difficult to describe Pelican Bay to friends and potential buyers. Until you have seen the beauty of Pelican Bay you will never quite understand the joy of living here. The beach drew Don and I. After "serving" 43 years in Chicago's nasty weather, we both longed for a home that had warm weather and a beach. The moment we saw the beach in Pelican Bay, we knew where we wanted to live.
The media is filled with doom and gloom lately. While our economy is in a horrible condition, we have a new President coming into office in just a few days. Don't you wish President-Elect Obama could wave a magic wand and make everything better? While we all may wish that could happen, the reality is that no matter what our new President tries to do, he will be faced with challenges that will take time to fix.
I have calculated all the statistic for the various building designs in Pelican Bay. Please know that where ever you see a TITLE, you can click on it and be taken to the full reports. There is some good news and some not so good news.
Low rises had 69 closed sales in 2008 with an average sales price of $527,914.00. The number of units sold was up from the 58 closed sales in 2007. The average price of a low rise in Pelican Bay fell 8.15% from 2007. The median price fell 16.81%. 31 of the 69 closed sales in 2008 were under $500,000.00. In 2007 - 71% of all low rises listed failed to sell. The good news is that in 2008 the number dropped to 60%. This indicates to me that sellers of low rise units are trying to get more realistic about pricing their units. We currently have a 18 month inventory of low rises
Mid Rises had 19 closed sales in 2008 with an average sales price of $739,202.00. If you look at the average sales price from 2007 to 2008 it increased 1.93%. The median sales price tells us that mid rises increased .78%. In 2007 - 48% of all mid rises failed to sell. In 2008- 54% failed to sell. If mid rise sellers were only looking at the average sales figures with its modest increase, they may have felt they could have asked more money, this could be the reason the percentage of unsolds increased. As of today, we have a 21 month inventory of mid rises.
Go high rise market! Here is a bright spot! The median closed sale price from 2007 to 2008 increased 2.5% to $1,522,500.00 and the average closed sale price increased 5.14% to $1,700,366.00. 2008 saw 82 closed high rise sales. Unfortunately the unsold percentage rose to 63% in 2008 from 46% in 2007. 34 of the 82 closed sales were between $1,500,000.00 - $2,999,999.00. There is currently a 26 month inventory of high rises.
Attached villas in Pelican Bay saw a 6.1% decrease in the average sales price from 2007 to 2008 to $972,656.00. Unsold attached villas also increased to 7% from 2007 to 47% in 2008. We have at present a 16 month inventory of attached villas.
From 2007 to 2008 detached villas average sales price decreased 18.42% to $1,321,923.00. Unsold detached villas rose from 17% in 2007 to 50% in 2008. Average market time for closed sales increase from 140 days to 220 days. There is currently a 13 month inventory of detached villas.
Single family homes in Pelican Bay saw the greatest decrease in average sales prices from 2007 to 2008 - 26.02% to $1,802,500.00. 50% of all single family homes listed for sale in 2008 failed to sell. Single family homes have an inventory of 13 months at present.
The National Association of Realtors® says that a "normal" amount of housing inventory should be six months. As you can see, Pelican Bay still has a high amount of inventory in all categories. Once again I would caution Sellers in Pelican Bay that if you really do not have to sell, get your place off the market! The United States economy is even worse than last year and will take a while to recover. If you can wait for the market to recover, DO NOT PUT YOUR HOME ON THE MARKET. Our current market is purely price driven. In order to have your home sell in this market it has to be priced at market or under and in good condition. You may need to spend some money on updating your kitchen and master bathroom, painting, and replacing worn carpeting. (I know that most Sellers do not want to hear this advice.) Sellers in Pelican Bay should remember that one of the HUGE selling points in our community is the beach. Buyers who purchase in Pelican Bay do not want to buy a place and have to spend time waiting for workmen to update their new home. These buyers would rather be at the beach in Pelican Bay toasting in our Florida sun or cooling themselves in our Gulf waters.
If you are looking to buy in Pelican Bay, look at different subdivisions and styles of units that fit your pocketbook. Decide on an area in Pelican Bay and research it. You will need to look at past sales, the length of time a unit has been on the market and if the unit has had any price reductions. If you can afford it, now is a great time to purchase as there are many lovely units to chose from in Pelican Bay. Should you be thinking of buying a home in Pelican Bay or selling your home in Pelican Bay, give me a call at 239-594-2780 or e-mail me at Lynn@NaplesBuys.com I will be happy to help you.
Pelican Bay has been lit up for the holidays since right after Thanksgiving. Each subdivision within Pelican Bay has had their holiday lights illuminating their entry ways also. The palm trees at the entry to Bay Colony are something to see. I am hoping that you have had a chance to visit Pelican Bay over the holidays. My husband Don and I were able to enjoy a walk down to the beach on Christmas Eve. My poor relatives and friends in Chicago were dealing with snow and cold weather on Christmas Eve!
Today we took a walk down to the beach in Pelican Bay and had a late lunch. The beach was filled with the umbrellas of residents and visiting family and friends. The week between Christmas and New Year's is usually a busy time at the beach.
The media has really been pounding away at how horrible retail sales have been this holiday season. While I feel for the stores, it is also nice to have the media spot light on another industry besides real estate. There is no doubt that this was a dismal holiday season for the stores. The Naples Daily News reported this morning in an interview with a Waste Management employee that garbage pick up in Naples Park the day after Christmas was almost like a normal garbage day. The lack of boxes being thrown away points to how little consumers spent this holiday season in the Naples Park area.
How are the restaurants faring? I wonder. The last few times that I have been in a restaurant lately in Naples I have not had to wait for a table. If you have ever tried to get into a restaurant in Naples around the holidays, you are usually faced with a wait unless the place takes reservations.
What will happen this coming season in real estate? That is a good question. I have a crystal ball on my desk and that ball is always cloudy! Let us take a look at what has happened since November 22nd in Pelican Bay.
Pelican Bay Real Estate 11/22-12/27/2008
Active Listings
Pending Sales
Closed Sales
Low Rises
97
3
3
Mid Rises
33
0
0
High Rises
164
5
9
The first thing I can see is that our inventory is increasing from the last time period. I would guess that more owners are coming back into town thinking that they will test the market. I have said this numerous times but it bears repeating, IF YOU REALLY DO NOT HAVE TO SELL YOUR PELICAN BAY UNIT, DO NOT PUT IT ON THE MARKET. More listings coming onto the market and less sales increase our inventory and our turn over periods for that inventory. The last time I checked we had roughly about a 14 month supply of listings in all categories. A "normal" market is supposed to have a six month supply of inventory. We need to sell some of the inventory we already have to make some progress. The bottom line is that in order for a unit to sell, it has to be priced reality not in fantasy land. The market is what the market is and it is a buyer's market at present. Though the real estate market may be bleak for some sellers, people need to remember that real estate is cyclical. In the 30 years that I have been in real estate I have seen the market up and down and over and out. Sellers, if you do not have to sell, hang in there. The market will take a while to come back but it will come back.
Where ever you are this holiday season, I hope that you are able to enjoy the holidays with family and good friends. I wish you all a happy and healthy New Year.
The spiders in Pelican Bay have been busy decorating the boardwalk for our Halloween party, October 31st from 5:00 PM - 8:30 PM at the Sandpiper.
I'll be at the party with some friends and I hope to see you there!
Please remember that where ever you see high lighted text in this blog, you can click on that text and be taken to the full report.
LOW RISES in Pelican Bay have shown a slight decrease in price since September. The good news is that low rises' closed sales our up slightly from December of 2007. There are currently 90 low rise listings on the market giving us an inventory of 14 months. Low Rises' list to sales price differential is high at 9.24%. You should note that the differential between the unsold listings and the closed sales are at 16.65%. This indicates to me that the unsold listings were way out of whack with the market.
Out of the 63 closed sales for Low Rises, 21 of them were all under $399,999.99. There were 31 closed sales of 3 bedroom units with an average sales price of $563,016.00. 22 of the 96 unsold Low Rises were priced from $450,000.00 - $499,999.99. 43 of the 90 low rise active listings are under $500,000.00. Of those 90 active listings, 40 of them are 2 bedroom units with an average asking price of $465,565.00. It is interesting to note that of the 21, 2 bedroom units that did sell, the average closed sale price is $435,125.00.
MID RISES in Pelican Bay have no pending sales at present. There is currently a 14 month inventory of mid rises on the market. The closed sale time for mid rises is at 189 days, which is lower than the low rises closed sale time of 240 days.
HIGH RISES in Pelican Bay inventory is hovering around 20 months. Prices have increased 7.21% since December of 2007. The bulk of all the closed sales are from $1,500,000.00 - $2,999,999.99. Of the 109 unsold units, 42 of them are priced from $800,000.00 - $1,499,999.99. 61% of all the high rises listings taken are failing to sell.
Should you have any questions or comments on these statistics, please feel free to leave me a comment at the bottom of this post.
If you are a registered Florida voter, know that Florida has early voting. Governor Crist extended the early voting hours to 7:00 AM to 7:00 PM through November 1st. My husband Don and I went to vote Tuesday. The lines at the library on Orange Blossom were horrendous. We headed over to the Government Center where the line was a bit shorter and seemed to move faster. All in all we stood in line for a little over an hour. Florida has a paper ballot and several amendments to vote, which is taking more time than usual. I would encourage all voters to VOTE EARLY. I would also encourage you to get a SAMPLE BALLOT and fill it out before you enter the polling place. I am concerned that lines on Election Day will be worst than what I encountered on Tuesday.
In case you have not heard the news, Linens n Things is having a going out of business sale. The Linens n Things located at Immokalee and 41 and the one located across from the Coastland Center are closing. There are a number of items discounted at least 10% right now. Should you need anything for your home, you might want to check out the sale.
Studio 41 Salon in the Market Place at Pelican Bay has recently changed ownership. The new owner, Cynthia Sullivan, is hosting an open house on Thursday, November 6th from 5:00 PM to 7:00 PM. Wine and appetizers will be served and you'll have the chance to win raffles of baskets of products and a Grand Prize raffle of $250.00 worth of services. You will also have the opportunity to meet Studio 41's new massage therapist, facial esthetician, stylists and nail tech. FYI - Studio 41 is now selling OKAb shoes. Studio 41's address is 8849 Tamiami TRL N. Their phone number is 239-594-5011. Come on out to meet the new staff, support a local shop owner, mingle with Pelican Bay neighbors, get a chance to win a prize and have a fun evening!
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Absorption rates have nothing to do with sun screen but they do tell us how many months it will take to "absorb" all the units for sale in Pelican Bay. The formal definition of Absorption Rate is: The ratio of the number of properties in an area that have been sold against the number available. Used to show the volatility of a market..jpg)
