Are golfers behind surprising SWFL surge in home sales? And who's buying country clubs?
Phil Fernandez, Naples Daily News
8 min read
Home sales surprisingly surged in the newest data for Southwest Florida's three larger real estate associations after a lot of dipping the past two years.
The trio saw a better August, which historically is slow, than July, following a statewide trend.
But there's at least one factor in play, said Florida Realtors Chief Economist Brad O'Connor, who spoke at this past week's economic summit by the Naples Area Board of Realtors known as NABOR.
"That's likely in part due to August having a few more business days than July," O'Connor said.
However, NABOR and the Bonita Springs-Estero Realtors group that goes by BER reported more home sales in August than in August 2022, too, and that's giving positive vibes to BER's Steve Kolenda, managing broker for Berkshire Hathaway Florida Realty's Bonita office.
“While one month doesn’t make a trend, August showed some signs of life with new listings, pending sales, closed sales and median price all increasing from the prior month. Plus, August closed sales actually increased 14.6% from a year ago," said Kolenda, noting that wads of Benjamins may be playing a role for BER in the boost. "We are in a majority of second-home cash buyers sitting at 61.3% cash sales in August."
A condo in Omega at Bonita Bay sold for $4.02 million in August.
Similarly, cash sales as well have consistently been propelling NABOR, which had a 1.9% uptick in closings from a year ago. Lee County almost matched August 2022, just off by a total of three homes, according to Florida Realtors stats analyzed by Matt Klinowski, who leads the Naples Golf Guy real estate team for Downing Frye Realty.
"It is notable 61% of condo sales were paid in cash compared to 58% during the prior month," Klinowski said of Lee County, where golf communities are helping drive the way. "The luxury market remained active with 132 properties sold at or above $1 million during August. The highest-priced sale was a luxury condo in Omega at Bonita Bay for $4.02 million. Fifty percent of the top 10 highest-priced homes sold in Lee County were luxury golf properties priced between $1.55 million to $4.02 million."
Collier County also had a familiar swing: "Of the top 20 highest-priced home sales, 65% were in luxury golf communities including Pelican Bay, Grey Oaks, Mediterra, Quail West, Talis Park, Tiburon and Treviso Bay," said Klinowski, noting the top dog in the group: $19.5 million for a 8,550-square-foot Bay Colony penthouse in Pelican Bay.
A view from Bay Colony at Pelican Bay in Naples.
How is golf boosting real estate and development in Florida and SWFL?
The monthly 73-year-old Golf Digest offered an explanation in its September magazine of what might be going on, which is continuing to spur the market and course construction:
"COVID-19 squeezed the South Florida golf market hard as seasonal residents remained in their winter homes and others migrated south. Clubs that only a year before were searching for ways to reach capacity suddenly had difficulty fitting everyone onto their courses. Rounds skyrocketed, club rosters filled and waiting lists developed almost everywhere. As remote productivity removed the necessity of going into offices, families relocated to Florida permanently for the weather, lifestyle and absence of a state income tax."
“I found myself spending almost three months in Florida during the winter, which would not have been the situation had COVID not happened,” avid golfer and Connecticut-based investment manager Renee Noto, 57, told Golf Digest. “That’s true for most people who have moved down there. There are so many younger people moving to Florida."
Gators, like this one at Coral Oaks in Cape Coral, aren't scaring golfers from Southwest Florida's housing market.
How could golfers affect our future growth in Collier and Lee counties?
When the University of Florida’s Bureau of Economic and Business Research released population projections through 2050, golf was part of the scorecard. Lee County is expected to grow by nearly 24% from 2025 to 2050 to 1.1 million, with Collier at 18%, surpassing 500,000.
"Future growth in Southwest Florida will be due largely to record numbers of Baby Boomers retiring and migrating south," said a LSI Cos. analysis this year of the UF report. "Southwest Florida has and will continue to appeal greatly to affluent Baby Boomers looking for sun, beaches, boating and championship golf. "
The tax breaks are in play across the board with August real estate, Realtors say.
“Even in a time of economic volatility and uncertainty, Florida still provides benefits as a tax haven,” said NABOR's Jillian Young, president of Premiere Plus Realty. “If the housing market’s activity continues to perform at the same steady rate we’ve enjoyed so far this year ― and current market conditions show it has the potential ― then it’s likely homeowners could enjoy a 7% increase in home value by year end. The fact that properties didn’t lose value during a year after a major hurricane will only strengthen the desirability of future homeownership.”
How high are median prices continuing to rise in the current market?
Median prices for single-family and condos remain above levels from a year ago, with NABOR at $605,000, BER at $575,000 and Lee County-based Royal Palm Coast Realtor Association at $365,000.
The NABOR Market Report noted brokers "are confident sales during the second half of 2023 could outperform sales during the second half of 2022, unless we experience another major disaster like a hurricane."
However, NABOR pending numbers, which help gauge future activity, were down by 9.4% as compared to a year ago, and Lee County is off by more than 10%, according to Florida Realtors statistics. BER had a drop of 7.2%.
What investment firms have recently purchased SWFL country clubs?
Besides home sales, the pandemic-inspired interest in Florida links has helped stir investments.
A Naples firm has grown its golfing portfolio by 50% after obtaining four Sarasota and Venice courses in recent months including the Misty Creek Country Club in September.
“Our strategy is to continue growing our golf business along the I-75 corridor between Naples and Tampa," said Lee Weeks, chief operating officer at Coral Hospitality.
And last month, Virginia-based Heritage Golf Group procured The Club at Grandézza off I-75 and Ben Hill Griffin Boulevard in Estero's gated enclave of nearly 1,000 homes, its seventh acquired in Florida since the coronavirus year of 2020, bringing its overall total to 33. Heritage didn't release the price, but public records specialist Paige Rausch combed the rough and found $27 million.
A course was part of the $248 million deal last year that included the purchase of the Naples Grande Beach Resort by London-based private equity real estate manager, Henderson Park.
Naples Grande Beach Resort in January 2023.
What are some emerging golf course projects in Southwest Florida?
▶ London Bay Development Group is nearing completion of converting Raptor Bay into the Saltleaf Golf Preserve adjacent to its rising ultramodern Ritz-Carlton Residences and Saltleaf Marina on Estero Bay near the end of Coconut Road. Tee times bookings are scheduled to begin in January.
▶ Detroit-based Soave Enterprises has been aiming for a winter 2024 completion of the Kinsale Golf Club at Vanderbilt Drive and Wiggins Pass Road in North Naples. The project had received initial backing from Collier County more than five years ago, pre-pandemic, but work didn't begin until this year.
▶ Houses are slated to begin sprouting next year for the 2,500-home Rivergrass rural village in eastern Collier County that will include 18-holes, ahead of further construction of thousands of other abodes on the edge of the Everglades.
Aerial view of parts of South Seas Island Resort in Captiva photographed Tuesday, June13, 2023.
What's up with South Seas and Dunes courses since Hurricane Ian?
After Hurricane Ian's devastation to Captiva's South Seas resort, its owners decided this year that reviving the course with a more sustainable design would be part of its $1 billion or so comeback efforts.
"We continue to focus on building back better with a focus on resiliency," said Greg Spencer, president of the South Seas Ownership Group. "The golf course rebuild is underway with a new storm water management system that will reduce flooding, improve drainage and control runoff. This is just one of many examples of resilient practices that will better protect us from future storms."
A hot tub ended up on the 18th green at The Dunes on Sanibel Island.
The ravaged Dunes Golf & Tennis Resort on Sanibel has come a long way from Sept. 28, 2022 when Ian left a hot tub floating on the 18th green, but it still hasn't reopened the fairways, which are in "the growing phase" of re-grassing. Partial play could begin by mid-December, said Golf Superintendent Roy Jones, who originally hails from England and has been in a Dunes leadership role since 2011.
"The front nine — we'll be very, very close to that date. Back nine maybe a few weeks after that. We're going to see how it goes and see how quickly we can push it, and if Mother Nature cooperates," said Jones, who talked about her lack of love. "We're approximately 25 to 30 inches under our normal rain total for the year. (It) has been difficult. It's tough conditions to grow a golf course in."
Based at the Naples Daily News, Columnist Phil Fernandez (pfernandez@gannett.com), who grew up in Southwest Florida, writes In the Know as part of the USA TODAY NETWORK. Support Democracy and subscribe to a newspaper.
