According to statistics recently published by Census.gov, Lee County ranks 9th in the highest population growth country wide between July 1st 2020 and July 1st 2021. Lee County reportedly grew by 23,297 people during this period, less than 700 people fewer than Montgomery County in Texas which finished 8th in new population growth rankings. Punta Gorda, FL ranked as the 4th highest growth percentage during the same period, with a 3.7% population increase. 

 

https://www.census.gov/newsroom/press-releases/2022/population-estimates-counties-decrease.html

According to the national home price index, there was a 18.8% growth rate between December 2020 and December 2021. In the 34 years this data has been tracked, this is the highest calendar year increase ever. In the final quarter of 2021 housing prices still increased quite a bit, but not as quickly as they had in the earlier quarters of the year. During 2021 all 50 U.S. states and the District of Columbia house prices rose. The top five states with the highest annual appreciation were Arizona, Utah, Idaho, Florida, and Tennessee. Specifically, the area with the highest annual price increases in the country was the Cape Coral-Fort Myers area with a 34.6% increase according to the FHFA’s House Price Index. Home buyers in entry and mid-level markets can expect to see the biggest effect of these home price increases with the low level of inventory even as mortgage rates continue to tick upwards.

Starting in December, lenders enacted new condo financing guidelines in regards to the condo questionnaires filled out by management companies.

New questions were added to the condo questionnaire that generally relate to the possibility of “deferred maintenance” to the subject building. These questions must be answered by the condo associations management company or condo boards in order for lenders to approve the condo for financing. We have been seeing pushback from several management companies’ legal teams since these questions are highly subjective and aren’t black and white. Some lenders do have possible workarounds such as meeting minutes, inspection reports, and engineering reports, but in general the new documentation needed to finance condos has been tedious to gather and confusing for all parties involved. These new condo guidelines are still temporary in nature and we are optimistic for improvement to this process in the future.

When financing a condo, it’s more important than ever to work with someone who understand the guidelines and knows what is required to get the financing approved.

Please call us with any condo questions!

According to the latest Freddie Mac PMMS Mortgage Survey, the average 30-year-fixed mortgage rate declined one basis point this past week. This drop comes after nearly a month of consistent increases. The expectation is that mortgage rates will continue to move in concert with the 10-year Treasury yield. If the Federal Reserve continue to raise interest rates, there is a good chance mortgage rates continue to rise also.

2021 was another huge year for real estate in all parts of the United States. Specifically, the Southwest Florida real estate market saw higher than average home price increases when compared to the rest of the country. U.S. home prices rose 18.5% year-to-year in Q3 but eight Florida markets saw higher gain than that. Cape Coral-Fort Myers saw the 2nd highest annual gains nationally at 34.7% year-over-year with North Port-Sarasota-Bradenton coming in 8th highest at 25.6%. More notably, the Cape Coral-Fort Myers market saw a 9.8% increase from Q2 to Q3 of 2021.

Overall, the real estate market stayed hot all of 2021 after a record 2020. The low interest rate environment coupled with increased home buying demand created a high level of competition for the already low inventory in Southwest Florida. Historically low interest rates not only allowed more potential home buyers to enter the market, but helped current homeowners save money through refinancing at record volume also. Whether homeowners looked to take cash out of their homes via cash-out refinances or simply just lower their interest rates and monthly payments, 2021 saw nearly 59% of total loan originations come via refinances.

As we head into 2022 low interest rates and high buyer demand should keep the housing market on its current path. As the new year begins and people begin to implement their goals, what do you expect to happen in the housing market?