photo: del webb
NABOR Report | Collier
Increase almost double July’s growth | By June Fletcher | Naples Daily News
Home price growth in Collier County revved up at a double-digit rate in August, traditionally a slow month, a new report released Friday said.
The Naples Area Board of Realtors said overall median home prices jumped 15 percent in August, to $306,000 from the same month a year earlier.
The monthly report covers existing Collier home listings and sales, excluding Marco Island.
The increase was nearly twice the year-over-year price bump up of July, when prices rose 8 percent to $287,000 from $265,000.
Prices jumped the most in South and East Naples, where they are lowest, but also were strong along the expensive beachfront area where multimillion homes are common.
Single-family homes saw prices swell 22 percent, to a median of $388,000 from $317,000, while condos rose more modestly, to $235,000 from $230,000, a 7 percent increase.
Mike Hughes, president of NABOR, said the price growth was due to a number of factors, including worries about stock market volatility, an improved job market and fears that mortgage interest rates will soon rise.
Competition for the ever-shrinking supply of homes costing less than $300,000 — supply was down 26 percent year over year, to 946 from 1,279 — also pushed up prices, he said. “Hopefully, builders in this price range will help us out,” he said.
Because there were fewer homes available in the lowest price point — a situation that has lasted for several months — sales slowed 21 percent, to 338 from 430 The drop contributed to a slowing of sales overall, down 8 percent, to 689 from 747.
But closed sales rose dramatically in all the highest price points: in the $1 million to $2 million range, they were up 48 percent, to 49 from 33, and in the $2 million and up price range, they jumped to 24 from 19, a 26 percent rise.
Pending sales followed a similar pattern, dropping in the under $300,000 range and rising in all other price points. Overall, they were up 2 percent, to 811 from 795. Reflecting the tightening supply, days on the market decreased 4 percent, to 78 from 81. There’s now a little over 4 months’ supply of housing.