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SPECIAL REPORT: The Real Deal

Some real estate agents struggling but others still cashing in

By Laura Layden

Saturday, November 3, 2007

Even in tough times, homes sell.

The real estate industry continues to chug along in Southwest Florida, despite a market slowdown.

It’s nothing like the heydays of 2004 and 2005, when homes practically sold themselves. In those years, investors looking to turn a quick profit went into a buying frenzy that drove home prices in Southwest Florida to record highs. Homes got snatched up hours after listing.

Now it’s a market like you might have seen in 2002 or 2003, local Realtors say.

No one disagrees. Transactions are off, even compared to four or five years ago.

In Collier County, property appraiser records show that countywide 2,689 single-family homes sold in the first nine months of this year. That compares with 5,340 sales in 2002. But the median price _ the price at which half the homes in the market are selling above and half below _ is nearly $200,000 higher.

Some of the biggest players in real estate say they still are having one of their better years in the business. For at least a few agents, it has been a record year for sales.

With more to buy, there’s more to sell.

“Compared to the rest of Florida and the rest of the country, we don’t look too bad,” said Spencer Haynes, president of the Naples Area Board of Realtors (NABOR). “We are still selling a lot of property.”

A report by NABOR shows a total of 3,114 closed residential sales through the Multiple Listing Service in the Naples area from January to September, down from 3,675 sales a year ago and 7,437 sales in the period of 2005. That includes all areas in Collier County, except Marco Island.

There were 786 residential sales in the third quarter, down more than 18 percent from 961 a year ago and nearly 63 percent from 2,113 two years ago.

“There are sales going on,” said Phil Wood, broker for John R. Wood Realtors in Naples. “The single factor that probably had the greatest impact on the third quarter was the bad news about the mortgage market.”

Realtor associations in Lee County don’t produce the same quarterly reports. Statistics from the Florida

Association of Realtors show agents in the Fort Myers-Cape Coral metropolitan area handled 5,976 existing home sales in the first nine months of the year, down nearly 35 percent from 9,101 a year ago. In September, the median home price fell 3 percent to $224,000.

Another indicator of the market is sales through the Sunshine Multiple Listing Service, which covers south Lee and Collier counties.

In the first nine months, there were 4,000 closed residential sales, said Jim Scartz, president of the Bonita Springs-Estero Association of Realtors.

“There were 278 sales in September, which is the slowest month of the year. That is a very significant amount of activity,” he said.

The high sign

Prices remain strong at the high end and have even escalated.

There have been record-breaking sales in Naples, Marco Island and Captiva this year.

While the market is not red hot like it was a few years ago, some high-end agents are pocketing more money this year.

In the Naples area, there were 257 homes sold for $2 million or more through the first nine months of this year, up slightly from 250 a year ago, said Joe Ballarino, president and chief executive for Amerivest Realty.

“The higher-end buyer is more sophisticated and understands the market and when it’s time to buy. They have come back to the market a lot sooner than the average buyer,” he said.

In the Port Royal area, including South Gordon Drive, 37 homes and lots have sold this year, and three more sales are pending, said Tom Campbell, a Realtor with Premier Properties in Naples. That compares to 46 properties sold last year, he said.

Eight spec homes are going up on multimillion-dollar lots in Port Royal, where there were none a few years ago, Campbell said.

“We’ve got a very healthy market going on down here,” he said. “The fact of the matter is there is a lot of cash in our economy and a lot of people getting paid a lot of money.”

At the high end, values have been on the rise since 2005.

In May, a waterfront estate on 4.8 acres skirting Port Royal went for $40 million, beating an all-time record in Collier County of $30 million set in 2001.

Last month, Villa Venezia, an eight-bed, eight-bath mansion on Caxambas Court, fetched $9 million, a new record on Marco Island.

Mike McMurray and Trevor Nette, with McMurray & Nette of VIP Realty Group Inc., handled the top five sales on Sanibel and Captiva this year. That includes a $13.5 million sale for a two-story home on about an acre on Captiva that set an all-time record in Lee County.

“There are spots in the marketplace that are seeing strong activity, and there are spots in the market that are not,’’ McMurray said.

The duo has done close to $120 million in sales, making it their best year ever in the real estate business. “There are still Realtors out there doing OK, and there is still business out there. It’s just the market has changed and you have to change with the market,” McMurray said.

“You can’t wait for the phone to ring anymore. You've got to pick up and dial,” he said.

Down, but not out

It may not be the busiest year ever for Downing-Frye Realty Inc. in Naples. But from January to September, agents handled 1,600 transactions valued at more than $1.1 billion.

In the same months last year, they did about 2,000, broker Michael Hughes said.

“We're actually having a pretty good year, considering the climate that is out there,” he said.

He said the “three Ps” in the market continue to do well: Park Shore, Pelican Bay and Port Royal. Buyers in these upscale neighborhoods aren’t as influenced by what’s happening in the local real estate market or the economy.

Realtors say baby boomers still want to come here for all the same reasons they did a few years ago: the golf, the sun, the beaches and the country clubs.

In the past few months, Hughes has noticed investors coming back into the market and buying because of lower prices, with plans to hold on to the property for several years. That may signal the bottom of the market has been reached, Hughes said.

For the year, his company expects sales in the range of $1.3 billion. That compares to more than $1.6 billion last year.

Last year, the company handled 2,619 transactions, down from 5,463 in 2005.

In October, the company had 133 transactions. In September, it had 107. “It’s encouraging that it’s going up,” Hughes said. “And it’s going up at time that historically is
relatively slow.”

The average sales price for the company is above $680,000 this year, higher than last year. In two of the last four months, sales transactions were up over a year ago.
“The last nine months I feel will be very solid compared to last year,” Hughes said. “I don’t know how competitors stack up.”

Many companies aren’t willing to share their numbers. But some are reporting higher sales in recent months, compared to a year ago.

“For two months in a row, in August and September, our net unit sales were above that of last year’s ... I’ve seen some progress being made,” said Charles Richardson, a senior regional vice president for Coldwell Banker Residential Real Estate.

Homes under $400,000 and those above $1 million are seeing the most activity, he said.

With so many homes on the market, the company has trained agents on the “new direction” of the market so they can better help clients determine a selling price that will draw interest from buyers, Richardson said.

“You are seeing some very extraordinary values right now,” he said.

Tom Bringardner, general manager for Premier Properties of Southwest Florida, said sales are up not only month-to-month, but year to year at his company.

“What’s selling? Homes that are priced well. Homes that are well-located are selling well,’’ he said, noting that waterfront is doing particularly well.

Selection, selection, selection

Inventories remain high.

As of Oct. 1, there were 10,526 active listings on the market in the Naples area, representing a more than 31-month supply of homes. In Lee County, more than 15,000 single-family homes and about 8,000 condominiums are on the market.

With prices coming down, more people are out looking and making offers, Realtors say.

“You get under $200,000 and that is really, really desirable right now,’’ said Brett Ellis, a partner with the Ellis Team at RE/MAX Realty Group in Fort Myers.

In Bonita Springs, the lower prices have opened up buying opportunities for teachers, firefighters and other essential workers, who a few years ago couldn’t afford to purchase anything, said Wes Brodersen, broker with EXIT Gulder Real Estate on Bonita Beach Road.

While some companies are weathering the storm, others aren’t surviving, he said. “Realtors are leaving the business in droves,’’ Brodersen said. “Companies are closing.’’
Eydie and Bob Heller with Amerivest Realty, who describe themselves as “Spouses Selling Houses,’’ specialize in North Naples real estate. They’ve sold about a dozen homes this year. In 2005, they did 20.

At one point, the least expensive home in North Naples was $402,000. Now it’s about $200,000 less, Bob Heller said. “We’re doing pretty well compared to a lot of Realtors,” he said. “We are hearing a lot of Realtors are leaving the business. We have continued to market and to do the right thing for our customers. We hope to be well-positioned when the market does turn around.”

© 2007 Naples Daily News and NDN Productions. Published in Naples, Florida, USA by the E.W.
http://www.naplesnews.com/news/2007/nov/03/special_report_market_some_agents_struggle_real_de/

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