Condo and Apartment Living Rises in Bonita Springs

Jerry Starkey, president and CEO of WCI Communications, spoke on just the popularity of condominum and apartment living at this week’s International Builder’s Show.

“Condos have been the big story in multifamily housing in the past year, representing half the new multifamily units built. They’re likely to continue to be a major factor in many markets.”

For the year ahead, Starkey predicts more and more competition in this part of the industry. An increasing number of condominums is expected to be built and to go onto the market, meaning a substantial increase in inventory.

The focus on Florida

The real estate market of Bonita Springs, Florida, has been just a beautiful as the area itself, with appreciation rates in the double digits for all of last year.

According the Florida Association of Realtors, the selling price of single family homes rose 24 percent in the first quarter of 2005 alone. The median price of a home in May 2005 was $468,000. The average sales price was $693,158, an increase in average selling price over May 2004 of 70 percent.

This, along with the gorgeous climate, has been a draw for many investors.

There is currently a larger inventory of homes for sale than last year at this time, though experts note this is no reason for concern. A rise in inventory is due to several one time factors, including Hurricane Wilma, which came ashore in October. The hurricane’s effects on the market were minimal, however, there was a two-four week period where travel to the area and inquiries certainly slowed. Most experts feel that the hurricane had nominal effects.

Another reason for the rise in inventory: sellers taking advantage of the demand for homes. Early in 2005, the demand for homes strongly outweighed the supply. This is longer the case in areas such as Sarasota.

Overall, the Florida home loan market for condo development has hit some snags recently. More and more lenders have been cutting back on financing for these projects.