Stock Development – new construction at Wild Blue, Muirfield VIII Coastal. photo: Stock Development
By Meghan Belnap RISMEDIA, Monday, October 28, 2019
In most cases, it makes sense to search for older things rather than their newer counterparts when you want to save money. This doesn’t, however, always hold true when it comes to buying a home.
Here are several factors that can lead to older homes costing more than new construction:
Energy Efficiency
One of the great things about buying a new home is that everything inside is new. This generally means that most of the appliances and systems were built in the last few years, which in turn means that they tend to be more energy-efficient. On top of better appliances, newer homes feature the latest in design for insulation, from the framework to the material used in building. This means that, over time, the cost of owning new construction can actually be substantially less than the cost of owning an older home.
Perks Specific to Older Homes
Sometimes buying an older home can also cost more simply because it has perks that aren’t available in new homes. Classic architecture, antique fireplaces or period-specific additions can command a great deal of money, and they’re simply not features that you get in a newer home. Buyers who want these features are willing to pay a premium, which drives up the price of homes that have those touches. As such, new construction may be much cheaper in comparison.
Maintenance Costs
Older homes cost more to take care of than newer homes, if only because time tends to be unkind to any building. In the short term, at least, it’s also more likely that a homeowner would have to replace big-ticket items in an older home than in a newer home. New construction homes may cost more upfront, but the actual cost of living in an older home will generally be quite a bit more.
Property Value
In many cases, the true cost of a home comes down not to the style of the house or what perks it offers, but rather the value of the property on which it sits. New construction can often be less expensive simply because the area in which it was built hasn’t had time to gain the same sort of social cache as older construction. An older home in a well-established neighborhood is almost always going to cost more than new construction in a less desirable area.
Old homes aren’t always cheaper than their newer counterparts. Even when new construction costs more to buy, it can still cost less than living in an older home. As such, it’s always a good idea to look at both types of homes when you’re trying to find something that will fit your budget!
This was originally published on RISMedia’s Housecall.
Meghan Belnap is a freelance writer who enjoys spending time with her family. She finds happiness in researching new topics that help expand her horizons.
To tour new construction homes and existing older properties call David at 239-285-1086 or email david@davidflorida.com.
PHASE II is here!
The response to our announcement of Phase II of WildBlue has been phenomenal. Homebuyers who attended our Model Opening were excited about the release of 19 beautiful new Stock Signature Homes on 85’ lots, with spectacular canal and preserve views. WildBlue, the one-of-a-kind new luxury lakeside community set on 3,500 acres is the talk of the town. With over 800 acres of lakes, with an incredible array of amenities and endless opportunities for activities in and around the water, no other community offers the luxury lifestyle of WildBlue.
Phase II includes a wonderful collection of residences by Stock Signature Homes that range from 2,500 to over 4,000 square feet, with several floor plans exclusive to WildBlue. There is also excellent opportunities available in Phase I, which is now over 70% sold. With brand new furnished models to tour, and exciting amenities coming soon, there’s never been a better time to discover WildBlue.
For more information about Wild Blue and to arrange a visit to any of these luxury homes, call David at 239-285-1086 or email david@davidflorida.com.
For August 2019, REALTOR.com reported over 9.2 million search result page views in the Bonita Springs and Estero markets, which is a 4 percent month-over-month increase. Continued buyer interest in Bonita Springs and Estero was also supported by the notable 16 percent increase in pending sales for combined single family homes and condominiums. For closed sales, August 2019 saw the strongest sales in the $1 to $2 million price segment for single-family homes. “Buyer interest in the market continues for several reasons,” stated a Broker. “Opportunities for home affordability are greater in Bonita Springs and Estero than some of our surrounding areas, which further encourages year round residents to relocate to the area, as well as new businesses.” “Additionally, the upcoming October 15th policy change regarding FHA loan approval of condominium units will also generate additional buyer interest in the condo market.”
While pending and closed sales see continued activity, buyers looking in Bonita Springs and Estero are also facing low inventory numbers, a trend that has been ongoing for several months in 2019. For single family homes and condominiums, each market segment showed more than a 24 percent decrease in inventory for August 2019 compared to this time last year. “Bonita Springs and Estero continues to be the ‘sweet spot’ between Naples and Ft. Myers,” stated a Broker.“These markets are being searched online daily and inventory levels continue to decrease as we move in the autumn buying season
For buyers looking to purchase a new construction home, there are still many choices available, but it’s critical to bring a REALTOR® on a home search in new construction communities. “When buying new construction, many buyers believe it’s a good idea to not have a REALTOR® and to use the builder representative. The thought process is that it can save them money, which is unfortunately false,” stated a Broker. “Most builders will advertise base prices and have a list of additional prices for upgrades and changes to their floor plans. A REALTOR® who has experience with new construction can help the buyer negotiate the prices of these upgrades and changes. He added, “the bottom line is that representation for the buyer in a new construction home transaction is just as important as in a resale home transaction.”
Low inventory numbers also present an opportunity for homeowners who want to sell now. “Sales and buyer interest in the Bonita Springs and Estero markets continue to be active year round as sales grow, especially in the $500K to $1 million price segments, “stated a Broker. “Homeowners who wish to sell have an opportunity to list and sell now. There is no reason to wait until January, as buyers have been looking all summer and are here now”.
Additionally, in the Bonita Springs and Estero markets, the median sales price increased 9.7 percent for single family homes, but decreased 7.5 percent for condominiums. The days on market increased 39.2 percent for single family homes and 22.7 percent for condominiums. In August 2019, there were 124 price repositions for single family homes and 91 price repositions for condominiums in Bonita Springs and Estero. The Bonita Springs-Estero REALTORS® August 2019 Report shows these overall findings for both single family and condominiums combined.
For more information and to arrange a visit to any of these luxury homes, call David at 239-285-1086 or email david@davidflorida.com.
Click graphic to enlarge September 2019 Infographic.
Home Showings Lead to Increased Sales
Naples, Fla. (October 25, 2019) – The Naples area housing market enjoyed another 7 percent increase in overall closed home sales for the third month in a row. This trend leads a Broker to suggest that the consistent uptick in summer home sales illustrates that Collier County is becoming less seasonal.
According to the September 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showings in September 2019 were up 31 percent over September 2018. This translated into a 13.7 percent increase in pending sales (written contracts) or 823 pending sales in September 2019 compared to 724 pending sales in September 2018. Strong showing activity during the summer resulted in 698 closed sales during September 2019.
The September report showed median closed prices remained stable during the third quarter (July, August & September). In July, the median closed price was $326,400. By September, the median closed price had dropped slightly to $325,000, which is only a .7 percent decrease from September 2018, which reported a median closed price of $327,408. Interestingly, the median closed price in January 2019 was $325,000.
With over 500 listings pulled from the MLS in September, it is no surprise that overall inventory for the month fell. However, even though it decreased 17.8 percent to 4,989 homes compared to 6,070 homes in September 2018, inventory for September was higher than August by 72 homes.
The NABOR® September 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
|
CATEGORIES
|
SEPT 2018
|
SEPT 2019
|
CHANGE
|
|
Total closed sales (month/month)
|
651 |
698 |
+7.2% |
|
Median closed price (month/month)
|
$327,408 |
$325,000 |
-0.7% |
|
Total active listings (inventory)
|
6,070 |
4,989 |
-17.8% |
|
Average days on market
|
93 |
102 |
+9.7% |
|
Single-family closed sales (month/month)
|
321 |
359 |
+11.8%
|
|
Single-family median closed price (month/month)
|
$395,000 |
$405,000 |
+2.5% |
|
Single-family inventory
|
3,208 |
2,567 |
-20.0% |
|
Condominium closed sales (month/month)
|
330 |
339 |
+2.7% |
|
Condominium median closed price (month/month)
|
$242,250 |
$245,000 |
+1.1% |
|
Condominium inventory
|
2,862 |
2,422 |
-15.4% |
As noted by brokers reviewing the housing data, September had a 6-month supply of inventory.
Geographically, condominiums in South Naples (34112, 34113) saw a 22.1 percent spike in its median closed prices to $213,000 in September 2019 from $174,500 in September 2018. Alternately, condominiums in North Naples saw a 16.4 percent decrease in median closed prices to $242,500 in September 2019 from $290,000 in September 2018.
Here’s a graphic provided by NAR that illustrates the top Joy Score projects, as well as the top return-on-investment projects.
By Jameson Doris
RISMEDIA, Monday, October 14, 2019— Homeowners and REALTORS® alike want new roofs and kitchens. According to the 2019 Remodeling Impact Report, released by the National Association of REALTORS® (NAR), the two projects rank as the most popular home improvement projects among both demographics.
The report, which examines homeowners’ reasons for completing the projects ranked, also provides the costs and seller recovery values for many of the tasks.
Although NAR regularly releases similar reports, this is the first time since 2017 the organization has released this report, and there are some notable differences from what was included in that iteration two years ago.
“This year, we saw the estimated cost of closet renovations increase from 2017; however, we also saw an increase in the cost recovered from this project,” Brandi Snowden, director of Member and Consumer Survey Research at NAR, tells Housecall. “Because homeowners are staying longer in their homes, we see them investing more elaborately than in the past.”
Another effect of homeowners staying in their residences longer is that they’re choosing to invest their money in projects that they’ll use on a daily basis, and that will improve the functionality and livability of their home.
Aside from kitchen renovations and upgrades and closet renovations, other interior projects hugely popular with both homeowners and REALTORS® this year are HVAC replacements, new wood flooring, bathroom renovations and adding new bathrooms.
As far as exterior projects, the REALTORS® surveyed in the report note that new roofing was most popular among homeowners, and, in their opinion, would add the most value to a home. Other exterior projects that ticked off both of these boxes were new vinyl windows, new vinyl siding, new garage doors and new fiber-cement siding.
Additionally, a Joy Score was calculated by NAR for each of the projects reported. This score is based on the happiness homeowners noted for each of the renovations. For exterior projects, new fiberglass and steel front doors scored the highest Joy Score each, at 9.7.
For interior projects, several renovations scored a perfect 10 Joy Score. They are: complete kitchen renovations, closet renovations, full interior and individual room paint, kitchen upgrades and basement conversions to a living room.
