Florida’s housing market continued to show momentum in January even with the ongoing pandemic, with more closed sales, rising median prices, more new pending sales and increased pending inventory compared to a year ago, according to Florida REALTORS® latest housing data. Single-family existing home sales rose 18% compared to a year ago.
“2021 began with the same market conditions we saw over the previous months, such as very low mortgage rates, high buyer demand and a lack of inventory,” said 2021 Florida REALTORS® President Cheryl Lambert,. “This shortfall in inventory continues to put pressure on home prices. However, new pending sales increased 16.9% for single-family existing homes last month compared to January 2020, while new pending sales for condo-townhouse units rose 32% year-over-year.”
In January, closed sales of single-family homes statewide totaled 21,587, up 18% year-over-year, while existing condo-townhouse sales totaled 9,608, up 24.6% over January 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The statewide median sales price for single-family existing homes was $305,000, up 15.1% from the previous year, according to data from Florida REALTORS® Research Department in partnership with local REALTOR® boards/associations. Last month’s statewide median price for condo-townhouse units was $230,000, up 15% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Florida REALTORS® Chief Economist Dr. Brad O’Connor noted that Florida’s housing market kicked off 2021 on a strong note.
“Eighteen percent year-over-year growth in single-family sales and 25% growth in condo and townhouse sales is way, way above our historical average—and we will likely remain well above our historical average for most, if not all, of 2021,” he said. “The primary reason is that mortgage rates will likely remain quite low for the duration of the year. The Federal Reserve has repeatedly signaled it intends to pursue a monetary policy agenda that ensures this will be the case.
“That said, economic forecasters have reached something of a consensus that mortgage rates have finally reached a bottom. Interest rates are, of course, notoriously difficult to forecast, so you never really can be sure exactly where they’ll be 12 months from now—then again, it’s a reason to take notice when everyone’s forecasts actually agree on something. However, there is still some mild disagreement among prominent forecasters in terms of how fast rates will rise from here—although no one is currently predicting rates are going to rise too significantly.”
Taking a look at the supply side of the market, last year’s decline in active listings of existing homes for sale continued into January 2021, according to O’Connor.
He added, “To be clear, I’ve pointed out that year-over-year growth in new listings—at least on a statewide basis—was positive over the second half of 2020. It’s just the pace of sales has been so phrenetic that these new listings have not replaced enough of our inventory to reverse the trend. However, in January 2021, new listings of single-family homes were down over 10% year-over-year in what is normally a strong month for new listings. Likewise, new listings of condos and townhouses were down statewide by almost 7%. We’ll need to keep an eye on new listings for the next few months to see if this is really a downshift or just a one-time decline.”
On the supply side of the market, inventory (active listings) continued to be constrained in January. Single-family existing homes were at a very restricted 1.6-months’ supply while condo-townhouse inventory was at a 3.9-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.75% in January 2021, significantly lower than the 3.62% averaged during the same month a year earlier.
Source: Florida REALTORS®
Luxury Portfolio International® (LPI), the luxury division of Leading Real Estate Companies of the World®, recently released a study of the world’s most affluent households: “State of Luxury Real Estate.”
The report focuses on consumers in the top 1-5% income bracket across 17 countries and 30 million households. The study was conducted in collaboration with the Affluent Consumer Research Company, finding that of the 30 million-plus households surveyed, more than 15.5 million will be in the market for residential real estate over the next three years. Within that group, 66% (10.3 million consumers) say they’d likely to purchase a property valued at U.S. $1 million or more.
“It is clear that affluent residential real estate buyers see opportunities within their respective markets,” said Mickey Alam Khan, president of Luxury Portfolio International®. “We are noting a surge in buyers throughout many markets worldwide, where it continues to be a seller’s market in the luxury space vis-à-vis the previous year. We expect that trend to continue through 2021—as well as the next couple of years—as buyers rush into the market. The ultra-luxury buyer perspective is that the current climate is getting stronger. In many markets, we see home values going up, and there is more interest in prime property.”
Trends among these soon-to-be buyers: One-quarter mentioned they have an investment or rental property in mind for their next purchase. The No. 1 global preference, however, is new construction in a newly developed neighborhood as it commands the highest price among the luxury buyer segment, according to the report.
“Investment sentiment toward real estate is positive and outstrips other forms of financial investment,” added Alam Khan. This bodes well for developers and resellers, along with sister industries, such as home design, art and furniture.”
The pandemic has greatly shifted luxury home trends. According to the report, quarantining highlighted an increased need for self-reliance amenities at home, and many respondents say that COVID influenced their motivation for wanting to live abroad, specifically in Mexico, India, China and post-Brexit United Kingdom.
The report highlighted the following four leading trends:
– The home must meet more needs, having solutions for working, learning and diversion at home.
– Luxury buyers are looking to expand their borders, seeking out homes in another country.
– Affluent buyers are interested in homes with a lot of space outside their main living quarters, such as properties with a guest house or separate adjoined residence.
– Luxury buyers want to work with a reputable brokerage that offers basic, quality offerings with a focus on customer service, while offering new technology.
From a confidence standpoint, LPI found that luxury buyers are bullish on the residential real estate market, with 45% believing it is getting stronger, compared to 31% who said it is getting softer. The majority (52%) perceive their current home value to have risen more than 10%, and 50% of luxury buyers state they believe now is a good time to purchase real estate, beating out other investments such as stocks, private equity and gold, among others.
“Real estate is an increasingly sensible investment at a time when financial and alternative investments appear potentially disconnected from traditional success indicators, like revenue and profit,” said Chandler Mount, CEO of Affluent Consumer Research Co., the study’s author, and research partner for Luxury Portfolio International®. “Many luxury buyers all over the world share this sentiment, and the implication is a lot of money flowing into real estate in the coming year.”
Liz Dominguez is RISMedia’s senior online editor.
In the market for a luxurious property in southwest Florida? contact David at David@DavidFlorida.com or 239-285-1086.
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Kalea Bay, the luxury residential high-rise community located on Vanderbilt Drive, just north of Wiggins Pass Road in North Naples, has reported the construction of its third tower has already reached the 8th floor of the 22-story structure.
“It was back in early November when construction crews began pouring the lobby floor,” said Inga Lodge, Vice President of Sales and Marketing for Kalea Bay. “As of today, Tower 300 is scheduled to be completed in October 2022.”
In the past two months buyers have been especially enthralled with what the high-rise community has to offer in terms of amenities, lifestyle, location and residential opportunities.
“Although a few residences remain in the community’s completed second tower and are available for immediate occupancy, the majority of our recent sales occurred in Tower 300,” Lodge noted. “That boom, which included 23 sales in a month, pushed our third tower over the 50 percent sold mark.”
Tower 300, like its predecessors, will feature 120 luxury residences. Specifically, it’s 20 floors of residences over two floors of parking. Rooftop amenities are similar to those found in Tower 100 and 200 including a rooftop pool, open-air fitness center and a sky lounge.
“And the views of the Gulf of Mexico from the rooftop are simply incredible,” Lodge stated. “There’s nothing like it in Southwest Florida.”
Six floor plans are available in Tower 300 ranging between three-bedroom plus den/three-and-a-half-baths to four-bedroom/four-and-a-half-baths. The size of the residences ranges from 3,722 to 3,922 total square feet.
Each floor plan, following an open-concept design, allows the living, dining and kitchen areas to spill out onto an expansive lanai, creating a true outdoor living room.
Kitchens include such standard features that most consider upgrades such as luxury cabinetry, quartz countertops and a large island, as well as SubZero and Wolf appliances.
The master bedroom includes an oversized walk-in closet while the master bath has his and hers vanities, quartz countertops, luxury cabinetry, a soaking tub and a glass-enclosed shower.
Additional residential features include floor-to-ceiling sliding glass doors that retract across the entire living area bringing the outdoors in. The large lanais are constructed with transparent glass rails for uninterrupted views of the gulf. Smart home ready and fully equipped laundry rooms round out the list of features.
Residences in Tower 300 are currently priced from $1.5 million.
For three years now the residents of Kalea Bay have been enjoying their community’s incredible clubhouse and the many amenities that surround it.
“Our main amenity area measures 88,000 square feet and is truly the recreational and social centerpiece of the community,” said Lodge. “Receiving compliments regarding our amenities from residents, their guests and even visitors is a daily occurrence. They believe the amenities at Kalea Bay are the envy of all other communities in the Naples area.”
The main amenity area is located on the north side of the large lake at the community’s entrance. It features three individual pools, including a resort pool, an adults-only pool and a children’s pool, plus expansive pool decks, an open-air bar, a fitness center, a lakeside fire pit, kid’s game room, teen’s lounge and an event lawn.
All three pools overlook the lake and provide a multitude of recreational options. Expansive sun decks with lounge chairs and native, tropical plants separate each of the three pools for the ultimate in privacy.
By Liz Dominguez
With the way things are forecast to go in the housing market in 2021, buyers might be feeling a little overwhelmed. Home sales are predicted to increase by 21.9% with home values expected to rise 10.5% by December 2021, according to a recent Zillow report.
However, while some buyers may think it wise to wait for the market to cool, Zillow’s data shows they may benefit more from simply diving in—of course, if they are financially prepared to do so—as the possibility of rising mortgage rates could bring affordability challenges in the future. Additionally, if the persistent inventory shortage keeps up, this will continue pushing home prices even higher. And with moving trends’ seismic shift due to the ongoing coronavirus pandemic, areas that were once affordable are seeing increased activity and increased home values.
An example, Zillow reports that today’s average mortgage rate is 2.68% for a 30-year fixed loan. With a 20% down payment, that means it would cost a typical U.S. buyer about $861 per month, plus taxes and insurance, to purchase a home. However, if home values rise 8% and interest rates climb to 3%, that same house would cost buyers $969 per month. And with a 12% spike in home values, the scenario would be monthly payments of $1,005.
“The best time to buy a home should always be when it’s the right time for your family. However, home shoppers would be wise to gather as much information as possible and use it to make smart decisions that maximize their buying power,” said Zillow home trends expert Amanda Pendleton. “For someone ready to buy, jumping in sooner rather than later could mean a savings of hundreds of dollars a month. Or, more likely, it could mean having to make fewer tradeoffs to stay within budget.”
The same goes for refinancing, said Zillow. Right now, those refinancing on a typical U.S. home loan would pay $861 per month, but if rates increase 3%, that would tack on $36 per month. And if rates increased to 3.5%, monthly payments would rise to $956.
“Rates are near historic lows, and we expect rates to hover near current levels through the first quarter of 2021. Although we expect rates to slightly increase as the economy recovers from COVID-19, it remains to be seen when that recovery truly gains traction. While these rate fluctuations may seem like small changes, when homeowners do the math, it is clear how lower rates can significantly reduce monthly payments for the life of the mortgage,” said Zillow Senior Economist Chris Glynn. “Like with any consumer decision, it is important to be informed, research the market and shop around to find the best deal possible. Qualified mortgage professionals can help individual consumers identify the loan rate, repayment term and structure that meet their needs.”
Here’s the market scenario for those considering taking the leap:
– According to Freddie Mac, mortgage rates remained flat compared to the previous week, with the 30-year fixed-rate mortgage averaging 2.73%.
– The markets are bustling. According to the National Association of REALTORS®’s Pending Home Sales Index, pending transactions may have dipped slightly (0.3%) in December, but YoY, they are up 21.4%.
– Realtor.com® reports that housing inventory in the 50 largest U.S. metros declined by 41.8% YoY in January.
As for the future? NAR Chief Economist Lawrence Yun expects strong home sales momentum, with sales up roughly 8 to 12% in 2021 vs. 2020, as well as prices rising more moderately, about 4% nationwide.
Liz Dominguez is RISMedia’s senior online editor.
The designer models reflect what JMD Development wanted Antilles to represent. Brand new, well-designed and built luxury-appointed properties in a serene setting, large enough to offer resort style amenities at no extra cost, yet small enough to feel like a place where everybody knows your name – or at least your dog’s. Plus, Antilles’ fresh take on classic West Indies Island style architecture brings 21st century materials and building standards to the Collier Boulevard corridor in South Naples.
The fifty-four acre gated development is built around its central five-acre Kingfisher Lake and adjacent Wetland Preserve. Antilles’ 212 condominiums are built in three configurations and all include screened-in Lanais and Garage parking. The larger Grand Coach Homes are four-unit residences with three Bedrooms, two Baths, and range in size from 1,980 to 2,444 square feet under air. The somewhat smaller Classic Coach Homes are also three Bedroom residences, and Antilles’ twelve-unit Multiplexes are elevator buildings, built two-stories over ground level parking, and feature two- and three-Bedroom floorplans. Well-appointed homes are priced from the upper $300,000’s and feature low monthly H.O.A. fees.
The Grand Coach Home’s first floor Nevis model looks like Island style living at its finest. Upon entering, mild Island breezes seem to stir. The first impression is that of a light, bright and airy home. Through and through, the Nevis is sharp and well done. Matte finished Potenza Ivory ceramic tile grounds the living areas with a modern esthetic. Pure White walls, higher ceilings, tall baseboards and substantial solid wood, routed-panel doors and gleaming hardware continue the sun bleached, tropical ambience. Deeply louvered interior Bahama window and door shutters continue the Island rhythms throughout, and a striking deepest sea-blue accent wall in the Entry Area forms a dramatic backdrop for a detailed, bone-white sea coral art installation that exudes Island fun and flair.
The second Grand Coach Home model is the upper floor Montserrat, the largest home in Antilles. Its first floor Entry is grounded by a gorgeous antique brass finished console with deep marble front and subtle mid-century modern styling. The pleasing geometry of the furnishings’ complimentary shapes and surfaces make the room an instant classic while reinforcing the sense of total privacy that the second-story Montserrat affords. Upstairs, the living area is a perfection of shape, texture and color. The fresh color scheme is highlighted in the drapes and accessory pillows on a beautifully scaled high-backed sofa. Its matching cream-colored coffee table is a graceful arrangement of two curvy footrests. Two low profile woven reed arm chairs complete the space with a contemporary edge.
The dining area features open-work furnishings and metallic finishes. Accents with textural interest and another large open-drum chandelier installation highlight the area. The design sophistication continues in the elegant master suite with dazzling white-on-white furnishings accented in silver, gold and a touch of dusty mauve. The adjoining master bath includes a separate commode room. The double sink vanity has bright chrome fittings and the same soft white Quartz countertop as the kitchen, and is topped by a wall-to-wall mirror installation. The oversized, glass-enclosed shower is fitted with a rain forest shower head and substantial frameless glass door. The linen closet and walk-in master closet are both custom fitted with wood shelving.
The Montserrat is a showcase for the standard finishes offered at Antilles. Its cabinetry, flooring and countertops are all among the standard selections available at Antilles, making it a must-see model when considering how much of what is special about a home in Antilles is already included in its purchase price when comparing it to other new home options in South Naples.
All Antilles’ homes include as standard features solid wood interior doors, hurricane-rated windows and doors, Shaker style 42-inch wood kitchen cabinetry in a variety of finishes, Merano hardware, higher ceilings and baseboards, sleek rocker style lighting switches, cove ceiling details per plan, wide profile tile flooring, double sink master bath vanities, Kohler plumbing fixtures, substantial frameless glass shower doors and built-in custom closet systems throughout. Linen closets, pantries, walk-in master closets and separate laundry rooms are included. Quartz countertops are standard, as are kitchen island pendant lights and stainless steel appliances – including on-trend French door style refrigerators. Recessed lighting and advance wiring for data, voice and video are included. JMD Development has set aside four guest suites for the exclusive use of Antilles’ homeowners. These will be finished to the same degree of polish and style as its decorator models.
The fabulous Flamingo Club amenity center is designed to become the heart of the community, offering 14,000 square feet of pure luxury, indoors and out. Concierge and executive services are managed here and the state of the art exercise and fitness center, massage room and catering kitchen are to the rear. The huge gathering room has varied socializing, cafe, lounge and seating areas and occupies about one-half of the Club’s 5,000 square foot expanse, with wall to wall views of the outdoor living areas, including the 3,500 square foot resort pool and spa with sun and shade decks, the Tiki Hut with al fresco seating, an arbor-enclosed fire pit, Bocce ball and regulation Pickleball Quad-Courts.
To arrange an in person or virtual tour of homes at Antilles, contact David at David@DavidFlorida.com or 239-285-1086.
