A service from the Naples Area Board of REALTORS® Naples, FL (October 17, 2014)
Limited inventory continues to be the story of the Naples area real estate market, according to the third quarter report released by the Naples Area Board of REALTORS® (NABOR®). Inventory of existing homes decreased 9 percent from 4,080 homes available in the 3rd quarter of 2013 to 3,702 homes in the 3rd quarter of 2014. This tight inventory affected sales activity as demonstrated by a 10 percent decrease in pending sales from 2,548 in 3rd quarter 2013 to 2,304 pending sales in 3rd quarter 2014; and an 11 percent decrease in closed sales from 2,339 in 3rd quarter 2013 to 2,093 closed sales in 3rd quarter 2014.
Contrary to the reduction of pending and closed sales in the 3rd quarter of 2014, real estate agents across Collier County reported being very busy keeping up with the growing demand. This anomaly, as confirmed by a panel of brokers analyzing the NABOR® 3rd Quarter 2014 Naples area market statistics, is likely a result of the market experiencing an influx of new home construction that, while not reported in the Southwest Florida MLS, has replenished the void resulting from a decreased inventory in the resale market.
Pat Pitocchi, NABOR® president and corporate trainer at Downing-Frye Realty said, “The market report does a good job at showing us a big picture view of how the resale market in Collier is behaving in general. However, it does not report all new homes sales, which appears to be a considerable segment of the current market activity according to reports from local brokers.”
Wes Kunkle, a commercial broker at Kunkle Realty, pointed out that the 21 percent decrease in overall pending sales in the $300,000 and below market drove the overall 10 percent decrease. “Overall pending sales in every price segment over $300,000 increased in the third quarter 2014. Overall closed sales increased in two of the five price segments, $300,000 to $500,000 and $1 million to $2 million, as well.”
The NABOR® 3rd Quarter 2014 Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 3rd Quarter 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
- Pending sales of single family homes over $2 million increased 26 percent from 43 in 3rd quarter 2013 to 54 3rd quarter 2014.
- Pending sales of condominiums between $1 million and $2 million increased 29 percent from 38 in 3rd quarter 2013 to 49 in 3rd quarter 2014.
- Overall closed sales in the $300,000 to $500,000 category increased 13 percent from 398 in 3rd quarter 2013 to 451 in 3rd quarter 2014.
- Overall closed sales in the $1 million to $2 million category increased 14 percent from 91 in 3rd quarter 2013 to 104 in 3rd quarter 2014.
- Overall median closed price increased 13 percent from $234,000 in 3rd quarter 2013 to $265,000 in 3rd quarter 2014.
- Overall median home price of homes over $300,000 decreased 7 percent from $530,000 in 3rd quarter 2013 to $493,000 in 3rd quarter 2014.
- Overall inventory decreased 9 percent from 4,080 homes in 3rd quarter 2013 to 3,702 homes in the 3rd quarter of 2014.
- Overall inventory of single family homes in the $300,000 to $500,000 market increased 15 percent from 422 in 3rd quarter 2013 to 487 in 3rd quarter 2014.
NABOR® also released its September 2014 Market Report, which revealed the following:
- Overall pending sales increased 2 percent from 810 in September 2013 to 829 pending in September 2014.
- Overall closed sales decreased 3 percent from 9,919 in the 12-months ending September 2013 to 9,585 closed sales in the 12-months ending September 2014.
- Overall median closed price increased 14 percent from $230,000 in the 12-months ending September 2013 to $262,000 in the 12-months ending September 2014.
- Overall inventory decreased 9 percent from 4,080 in September 2013 to 3,702 in September 2014.
Broker analysts agree that new construction within the last year is a welcome addition to the Collier County housing market.
With guidance from a local REALTOR®, buyers can discover opportunities and ensure their sale or purchase is a success within both the new home and resale markets.
Naples, Fla. (September 19, 2014) – A service from the Naples Area Board of REALTORS®
“We can’t sell what’s not there,” was a phrase repeated among several brokers as they analyzed a recent report tracking August home sales activity released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall inventory dropped 20 percent in the $300,000 and below price category in August 2014 compared to August 2013. The median price in this price category rose 13 percent as a result. The pending and closed sales dropped double digits in the same price segment August 2014 compared to August 2013, factors that illustrate the economic law of supply and demand.
Low inventory was also a strong factor in the decrease of pending and closed sales activity in the Naples Beach area condominium market. This much-sought after location experienced a 28 percent decrease in available inventory from 571 condominiums to 409 condominiums in August 2014 compared to August 2013. The low inventory contributed to the 31 percent decrease in pending sales and 23 percent decrease in closed sales of condominiums in this area. And, the median closed price in this area increased 7 percent from $495,000 in the 12-months ending August 2013 to $530,000 in the 12-month ending August 2014.
“I thought we had seen the top of this economic cycle a year ago,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., referring to unpredictable activity in certain areas within Collier County. “Our local market is extremely diverse. For example, in Pelican Bay there is a three month inventory of single family homes for sale, but if you are looking to buy a Crayton Road area condo in the $2 to $3 million price range, you’d better be ready with a checkbook because there are only two listings.”
Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, pointed out that the report also showed financed sales had increased 30 percent since NABOR® starting tracking overall cash versus conventional (financed) sales in January 2013. “We are starting to see an increase in the number of homes being financed by qualified buyers.”
The NABOR® August 2014 Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® August 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
- Overall pending sales decreased 11 percent from 890 homes in August 2013 to 795 homes in August 2014.
- Overall closed sales decreased 2 percent from 9,798 homes in the 12-months ending August 2013 to 9,613 homes in the 12-months ending August 2014.
- The overall median closed price increased 14 percent from $228,000 in 12-months ending August 2013 to $260,000 in the 12-months ending August 2014.
- Overall inventory decreased 8 percent from 3,875 in August 2013 to 3,579 in August 2014.
- Average days on market were 83 for August 2014.
- Inventory for single family homes increased 1 percent from 1,894 homes in August 2013 to 1,904 homes in August 2014. The largest increase was in the $300,000 – $500,000 price category, which saw a 12 percent increase.
- Closed sales for condominiums decreased 1 percent from 5,137 condominiums in August 2013 to 5,066 condominiums in August 2014.
Several brokers agreed with Phil Wood, President & CEO of John R. Wood Realtors, who said, “We’ll have to see if the low inventory will continue to be a trend in the coming months.”
The August report reflects inconsistent activity across all geographic areas making it difficult to predict whether the low inventory will continue to affect pending and closed sales moving forward. Additionally, another factor not tracked in the report but one that impacts pending homes sales is new construction, which continues to swell in the area. However, the rising inventory of newly constructed homes will not help those buyers looking for homes in the under $300,000 price category because there are few available.
“This is a very diverse market with a diminishing inventory in the reasonably priced housing sector,” said NABOR® President and Corporate Trainer at Downing-Frye Realty Pat Pitocchi. “The increase in median closed price continues to be driven by the under $300,000 market, which comprises nearly 65 percent of existing home inventory. In August, the under $300,000 price segment’s overall median closed price increased 13 percent, while all other price categories moved slightly up or down. It’s the only area of the market whose median closed price behavior is predictable.”
With the complexity of real estate transactions today, compounded by varying price pockets within the diverse Naples geographic areas and the speed at which you need to be ready to make a move, using a Naples REALTOR® to buy or sell a home is the best way to know you have a guide that understands what’s best for you. A Naples REALTOR® has the expertise and professionalism to help you make the smartest move at the right time.
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,700 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
View August 2014 Market Statistics
NABOR Market Report: Median Closed Price Increases $35,000
Naples, Fla. (August 22, 2014) – “Stable” continues to be the adjective real estate experts use to describe the Naples area housing market after analyzing a recent report tracking July activity released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall pending and closed sales for July increased in all price categories except the $300,000 and under market. The overall median closed price in July increased 16 percent from $225,000 to $260,000; with a 12 percent increase in the $300,000 and under market, from $155,000 to $174,000,driving the overall price increase.
“Due to demand in the under $300,000 market, which resulted in a 25 percent decrease in that segment’s inventory, the market’s total inventory in July fell 13 percent,” said Phil Wood, President & CEO of John R. Wood Realtors. “However, it’s important to note that 15 percent of the total inventory available included 539 newly constructed homes. Our report tracks some new construction activity, typically ‘spec’ homes, however, it does not include new home inventory being added from the 30 new communities currently under development in the area.”
“The report shows us clear inventory decline in the $300,000 and below market,” said Wes Kunkle, a commercial broker at Kunkle Realty. “The fact is: we’re running out of homes to sell in this price category.”
Kunkle continued, the trend can be seen in the statistics, as pending sales for homes under $300,000 decreased at almost the same rate as its inventory. The report also shows new summer trends by neighborhood. In July 2014, the only increase in pending sales of single family homes was in the Naples Beach and South Naples areas. Interestingly, the only area to experience a positive increase in inventory was East Naples.
“Appreciation is one key factor driving prices in the lower end of the market,” said Dr. Shelton Weeks, Department Chair of Economics & Finance, Lucas Professor of Real Estate and director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University. “These homes are in demand and quick to sell.”
Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, noticed another interesting trend in the July report, “Overall pending sales in the $2 million and above price segment increased 47 percent from 19 homes pending in July 2013 to 28 homes pending in July 2014. For single family homes in this segment and timeframe, pending sales increased 100 percent from 11 to 22; yet pending sales for condominiums in this price segment decreased 25 percent from 8 to 6.”
The NABOR® July 2014 Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® July 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
- Overall pending sales decreased 13 percent from 975 homes in July 2013 to 845 homes in July 2014.
- Overall closed sales had=0 no change from 12-months ending July 2013 to 12-months ending July 2014.
- The overall median closed price increased 16 percent from $225,000 in 12-months ending July 2013 to $260,000 in the 12-months ending July 2014.
- Overall inventory decreased 13 percent from 4,086 in July 2013 to 3,562 in July 2014.
- Average days on market were 77 for July 2014.
- Pending sales for single family homes decreased 10 percent from 505 in July 2013 to 453 in July 2014. In the $2 million and above category, pending sales increased 100 percent from 11 in July 2013 to 22 in July 2014.
- Closed sales for single family homes decreased 1 percent for 12-months ending July 2014. However, closed sales increased in all price categories except the under $300,000, which saw a 20 percent decrease.
- The median closed price for single family homes increased 25 percent for the 12-months ending July 2014. However, all price categories above $500,000 saw a decrease in median closed price.
- Inventory for single family homes increased 1 percent. The largest increase was in the $300,000 – $500,000 price category, which saw a 14 percent increase.
- Average days on market for a home in the $300,000 and under category was 50 days in July 2014.
- Pending sales for condominiums decreased 17 percent for 12-months ending July 2014.
- Closed sales for condominiums increased 1 percent for the 12-months ending July 2014. Activity in this area was most impressive in the $1-$2 million price category which had a 25 percent increase, and in the $2 million and above price category which had a 35 percent increase.
- The median closed price for condominiums increased 12 percent for the 12-months ending July 2014.
- Inventory for condominiums decreased 19 percent with all price categories experiencing a drop.
- Average days on market for a condominium in the $300,000 and under category was 56 days in July 2014.
- Average days on market for a condominium in the $2 million and above category was 95 days in July 2014.
“Traditional sales dominate the market. In July 2014, they increased 35% from 345 in July 2009 to 603 in July 2014,” said Carmen Vasquez, owner/broker of US Prime Realty. “There were 330 non-traditional [short sale or foreclosed] home sales in July 2009. In July 2014 there were only 102, a significant reduction.”
There were also more closed sales recorded in the first seven months of 2014 (5,952) than there are available in our current inventory (3,563), which NABOR® experts believe is an encouraging message to consumers looking to sell or buy.
View July 2014 Market Statistics
ORLANDO, Fla., Aug. 21, 2014
Florida’s housing market reported rising median prices and increased inventory in July according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 22,099 last month, up 5 percent over the July 2013 figure.
“Florida’s housing market continued its steady pace in July,” said 2014 Florida Realtors® President Sherri Meadows. “Median sales prices rose year-over-year for both single-family homes and townhouse-condo properties in July – marking 32 months in row for higher median prices. Statewide, inventory (active listings) for single-family homes last month rose 17.5 percent year-over-year, while the townhouse-condo inventory of active listings rose 10.9 percent.”
The statewide median sales price for single-family existing homes last month was $185,000, up 3.6 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis (IDA) department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in July was $137,500, up 7.4 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in June 2014 was $224,300, up 4.5 percent from the previous year; the national median existing condo price was $215,700. In California, the statewide median sales price for single-family existing homes in June was $457,160; in Massachusetts, it was $365,000; in Maryland, it was $284,553; and in New York, it was $229,000.
Looking at Florida’s townhouse-condo market, statewide closed sales totaled 8,984 last month, down 6.7 percent compared to July 2013. The closed sales data reflected fewer short sales last month compared to the previous year: Short sales for condo-townhouse properties declined 61.1 percent while short sales for single-family homes dropped 54.8 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
Florida Realtors Chief Economist Dr. John Tuccillo said, “The July numbers look very much like June’s when each is compared to the prior year. This tends to verify our preliminary view that the market is settling into a stable pattern. I’m asked a great many times about the ‘new normal,’ meaning how the Great Recession changed the housing market. We are now beginning to see that the ‘new normal’ is really the ‘old normal’ with statistical patterns reminiscent of the market that prevailed prior to the frantic run-up of prices.
“The only troubling area is condo sales. The declines here, coupled with the sharper declines in condo cash sales, suggest waning interest on the part of investors. This is an area that will bear watching.”
Inventory was at a 5.5-months’ supply in July for single-family homes and at a 5.7-months’ supply for townhouse-condo properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.13 percent in July 2014, down from the 4.37 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the July 2014 data report PDFs under Market Data at: http://media.floridarealtors.org/market-data
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Florida’s Housing Market Continues Steady…
Housing Starts Soar in July
By Andrew Khouri | RISMEDIA, Wednesday, August 20, 2014—(MCT)
photo: RISMedia
New home construction surged to an eight-month high in July, providing a lift to the broader economy. Housing starts jumped 15.7 percent from June to a seasonally adjusted annual rate of 1,093,000, the Commerce Department said Tuesday. Economists had expected a rate of 965,000, according to FactSet. The department also revised June’s rate of housing starts upward, to 945,000 from 893,000. “This was a solid report,” IHS Global Insight economists Patrick Newport and Stephanie Karol wrote in an analysis. “Builders’ optimism is picking up.” That optimism, if it continues, could have a sustained, broad effect on the economy, including companies that specialize in home improvement and construction materials. Home Depot, for instance, said Tuesday its profit in its fiscal second quarter, which ended Aug. 3, jumped 14 percent to $2.05 billion, or $1.52 a share, from $1.8 billion, or $1.24, a year earlier. The company, based in Atlanta, also raised its profit outlook for the year. Home Depot’s stock was trading up 5.8 percent Monday morning to $88.47. The monthly Commerce Department report showed new home construction climbed in all regions except the Midwest, where starts fell 24.8 percent. Building permits, a gauge of future construction, rose 8.1 percent nationally in July. Credit Suisse economist Dana Saporta said the latest housing-start report should lessen concerns, raised last week by Fed Vice Chairman Stanley Fischer, that the housing market had become a major impediment to a more robust economic recovery. “Looking forward, a case could be made for continued improvement in the housing sector,” Saporta said. And there have been signs the national housing market is strengthening, after starting to cool last summer amid higher prices and mortgage rates. Sales of previously owned homes have been on the rise, and a gauge of home-builder confidence is at a seven month-high, a trade group reported Monday.
(c)2014 Los Angeles Times | Distributed by MCT Information Services
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ORLANDO, Fla., Aug. 12, 2014
Florida’s housing market reported higher median prices, more new listings and gains in inventory during the second quarter of 2014, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 67,579 in 2Q 2014, up 7.3 percent over the 2Q 2013 figure.
“Florida’s housing market continued its steady course during the second quarter of 2014,” said 2014 Florida Realtors® President Sherri Meadows. “As of June, the state’s unemployment rate is 6.2 percent. More jobs are being created, which is good news for Florida’s economy and a strong housing market.
“And in another positive trend, median prices continue to rise, though the pace has slowed somewhat over the past several months. The statewide median price for single-family homes for 2Q 2014 was $180,000, up 22 percent over two years (compared to the 2Q 2012 median price of $147,450); and the statewide townhome-condo median price of $142,000 rose 29 percent looking at the same period ($110,000 in 2Q 2012).”
The 2Q 2014 statewide median sales price for single-family existing homes rose 5.3 percent from the same time a year ago, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties during the second quarter was up 10.1 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Statewide, new listings for single-family homes over the three-month-period rose 11.5 percent year-over-year, while new townhouse-condo listings rose 2.8 percent.
Looking at Florida’s townhouse-condo market, statewide closed sales totaled 30,918 during 2Q 2014, down 3.4 percent compared to 2Q 2013. The closed sales data continued to reflect fewer short sales over the three-month period: Short sales for condo-townhouse properties declined 59.8 percent while short sales for single-family homes dropped 52.6 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
“The second quarter numbers show that Florida’s real estate market is settling in,” said Florida Realtors Chief Economist Dr. John Tuccillo. “While prices throughout the state tend to be up, sales are mixed with single family sales growing, and condos and townhouses declining. There are a lot of reasons for this, but the major factors are the reduced role of bulk investors, along with the difficulties faced by households with essentially flat incomes and thus limited access to mortgage credit. This market is sustainable, but either or both of these roadblocks must be removed if it’s to take off again.”
In20 2Q 2014, the median days on market (the midpoint of the number of days it took for a property to sell during that time) was 55 days for single-family homes and 56 days for townhouse-condo properties.
Inventory was at a 5.6-months’ supply in the second quarter for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.23 percent for 2Q 2014, up from the 3.69 percent average recorded during the same quarter a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the 2Q 2014 data report PDFs under Market Data at: http://media.floridarealtors.org/market-data
