November 2016 SW Florida Market Report

The latest SW Florida residential real estate market report is out, and John R. Wood Properties continues to be the market leader YTD through November based on closings and volume of closings. Have I mentioned how proud I am to be a part of this incredible organization?

Click here for the full report. If you're interested in homes in our Naples -- Bonita Springs -- Estero corridor, please feel free to get in touch. My team and I are already busy as Season kicks in, but never too busy to help folks find their dream home along the Paradise Coast.

John Glenn Has Passed Away

As a kid in Columbus, Ohio, I was fascinated by anything to do with space. I don't remember John Glenn orbiting the Earth, but I have a vague recollection of the Gemini missions. And of course, I was transfixed with the Apollo moon landing program.

I can recall lying on the floor at our home, watching the black and white TV late into the night -- especially when the Eagle, the lunar lander, touched down on the surface of the Moon. Furthering my fascination, was that the first human to set foot on that lunar object was an Ohioan, Neal Armstrong.

So obsessed with all things space, one year my parents took us on a 3-week trip to southeast U.S., a mix of business for my dad and vacation for the family. Just before we were to take the northward swing toward home, our parents gave us a choice of last fun excursions. We were revisiting SWFL, relaxing for a couple of days. The choices: a brand new amusement park in Orlando that they didn't know much about, DisneyWorld, or over to Cape Canaveral and a tour of the space facility there.

Which do you think two young boys -- at the end of Apollo and the dawning of the Space Shuttle program -- chose?

Fast forward many years later, on two occasions I had the opportunity to shake John Glenn's hand. Less as  U.S Senator, but more as one of my childhood heroes. A living legend, a fellow Ohioan, right in front of me, warm to the flesh.

With Sen. Glenn's passing, we are diminished. He is the last of the original Mercury 7 astronauts. When I heard a few days ago that he had been hospitalized at the James Cancer Center in Columbus, I had a sense of foreboding.

I wish peace to his bride, Annie, and to the entire extended Glenn family, to Ohioans on the loss of one of their heroes, and to Americans who marveled at the risks John Glenn and others of that first astronaut corps took, on the top of a rocket filled with explosive fuel, that had been constructed by the lowest bidder on a government contract.

Rest In Peace John Glenn.

Real Estate After Trump's Election: What Next?

Everyone in my business is trying to get an understanding of what a Trump presidency will mean for real estate, both residential and commercial. The stock market has surged since November 8, and while there are sharp disgreements, a lot of people in business are pleased.

Here is how two industry news organizations analyze it, as of December 7, 2016.....

From REALTOR.com:

"We do know that the incoming president will limit the federal government’s role in the real estate market, as was outlined in the 66-page Republican Platform 2016. So, longer term, the implications of this for home buyers, sellers, and owners could be sweeping.

"As for now, “our November elections come at one of the slowest time of the year for sales, so I doubt we will see much disruption to the normal seasonal pattern” of home buying and selling, says realtor.com’s chief economist, Jonathan Smoke. “However, one short-term risk could be if the [election] has a big impact to financial markets that lasts more than a few days. “About half of voters got what they wanted,” he adds. “If this does impact purchases, it is more likely to be in blue states and not the red heartland.” 

"A Trump presidency could be a boon for home buyers struggling to save up for a hefty down payment. That’s because he has promised to cut taxes and shrink the number of tax brackets from seven to three. This could, in theory, leave buyers with more money to spend on the homes of their dreams. 

"And it could give the luxury market, which has been slowing down as of late, a boost, says James Harris, one of the star real estate agents on Million Dollar Listing Los Angeles. “For the high-end, luxury market, it may turn into something very positive.”


From NREI Online:

"Business owners, investors and others are asking key questions, such as whether it is feasible to make hiring decisions, launch expansion programs or make investments during this uncertain period. In a broader sense, they are asking how markets and foreign leaders will respond. Some early signals, within the first seven to 10 days after the election, aren’t conclusive; they may only reinforce the uncertainty: Just after the election a prospective client announced his intention to delay investing in our Fund III until there is “greater clarity about what a Trump presidency means for the investment outlook” in the United States. Since election day, the Dow Jones Industrial Average has produced a 625-point-gain (3.4 percent) to about 18,957. This is far different than late election night when the futures market was down 800 points. Interest rates already have started to climb, increasing more than 30 percent, from 1.75 percent to 2.30 percent. We know a lot of the president-elect’s positions and likely actions on a variety of issues, or at least we think we do.” 

My own perspective:

In addition to the continuing stock market surge, Carrier announced a deal where it will keep some 300 engineering jobs and 800 lower wage manufacturing jobs in the U.S. rather than shipping them all off to Mexico. The company still plans to send another 1300 jobs to Mexico, but was persuaded to keep a plant open in Indiana rather than shutter the facility. Mr. Trump has claimed credit for that agreement, though some suggest he is taking credit for too much.

More recently, the CEO of Softbank, Mr. Masayoshi Son, announced in a joint appearance with President Elect Trump, that the Japanese business concern will invest $50 billion in the United States in the next several years. He expects that infusion to wind up creating some 50,000 jobs for Americans.

Regardless of politics, when jobs are increasing, that is good for the economy and GREAT for housing. Reducing the number of tax brackets also would be a boon for all buyers, particularly in the luxe segment.

Time will tell. More to come . . .

U.S. Dollar Value Against Other Currencies Spiking

BLOOMBERG -- The U.S. dollar is headed toward its largest gain since 2009.

"The greenback has risen more than 7 percent in November amid speculation U.S. President-elect Donald Trump will pursue reflationary policies, as futures signal growing bets that the Federal Reserve will follow an interest-rate increase in December with additional hikes next year."

Read the full story here.

Monday Funny

October Sales of Naples Area Homes Fell 7 Percent In October

October home sales in the Naples area were down 7 percent from last year, and the number of homes listed for sale last month was 39 percent higher.

 

The Naples Area Board of Realtors also reported that the median sale price of single-family homes and condos rose to $315,000 in October, up 9 percent from the same month last year. October sales of houses and condos in the Naples area dropped to 556 from 601 last year. Sales of condos in October fell more steeply than sales of houses.

 

For the full story, click here.

Why The Super Wealthy Are Getting Mortgages

One of my lender colleagues here in SWFL, Gerry Teeven of New Penn Financial, has penned an interesting piece on the trend of how the ultra wealthy using mortgages as a tax tool. Not a new approach, as we have seen it before.

BUT, it seems to be gaining in popularity.

Check out his piece by clicking here.