Condo Market Remains Strong
Naples, FL (November 16, 2012) – The single family home median closed price rose 10 percent overall with increases in all zip codes for the 12-months ending October 2012. In addition, the condominium median closed price increased 4 percent in all zip codes for the same time period, according to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
The NABOR® October report provides annual comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, and geographic segmentation and includes an Overall Market summary.
The NABOR® October sales statistics are presented in chart format, with these overall (single-family and condominium units) specifics:
– The overall median closed price increased 11 percent from $177,000 at the end of October 2011 to $197,000 for the 12-month period ending October 2012.
– Overall pending sales increased 21 percent in the $500,000 to $1 million category, from 947 units to 1,149 units, for the 12-month period ending October 2012. Overall pending sales increased 17 percent in the $1 million to $2 million category, from 418 units to 490 units, for the 12-month period ending October 2012.
– Overall inventory decreased by 13 percent, from 7,325 listed properties in October 2011 to 6,409 in October 2012. Pending sales with contingent contracts are included in the overall inventory number.
– The average DOM (Days on the Market) fell in all price segments except in the $0 – $300,000 price zone, resulting in a one percent increase from 169 days on the market in October 2011 to 170 days on the market in October 2012.
– Overall pending sales in the Naples coastal area increased 14 percent from 1,783 units to 2,037 units, and closed sales increased 10 percent, from 1,615 units to 1,776 units, for the 12-month period ending October 2012.
The result of the inventory decline from 12,157 in February 2007 to 6,409 in October 2012 is that buyers, in many cases, are desperate for inventory,” said Jo Carter
To view the entire report, visit www.NaplesArea.com
The Naples-Marco Island metro area is projected to grow more strongly than approximately twelve other Florida metro areas. A recent report issued by the University of Central Florida’s Institute for Economic Competitiveness indicates the highest personal income growth of 5.7 percent in the reports 12 metro areas.
In addition the Naples-Marco Island metro area is expected to have a high average wage growth rate of 2.7 percent and average 1.9 percent population growth. A 2.7 percent employment growth leads the areas in the study. A 8.3 unemployment rate is also forecast.
Moorings beachfront condos
PENDING HOME SALES INCREASE 12 PERCENT THIRD QUARTER
Naples, FL (October 19, 2012) – A 12 percent jump in overall pending sales marked the third quarter of Naples Area real estate, as compared to the third quarter 2011. In addition, overall pending sales for September 2012 increased 22 percent compared to September 2011, according to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
“The Naples area has just moved from a buyers’ market to a buyers’ and sellers’ market with tremendous opportunities for both,” stated Brenda Fioretti, NABOR Media Relations Chairman and Managing Broker of Prudential Florida Realty.
Cindy Carroll, Vice President of Carroll & Carroll Real Estate Appraisers & Consultants stated, “More inventory would be helpful to the market. Resale inventory continues to decline despite the fact that new home building has returned.”
John Steinwand, President of Naples Realty Services commented, “The single family home market is very hot. Pending sales of single family homes in the $500,000 to $ 1million category had a rousing increase of 15 percent from third quarter 2011 to third quarter 2012, and closed sales were up 4 percent for the same time period. The strong activity contributes to the inventory levels falling below 3,000 for single family homes.”
The third quarter report provides quarterly comparisons of single-family home and condo sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary. An overall summary combines the statistics for both single family and condominium properties.
The statistics are presented in chart format, along with the following statistics for third quarter 2012 compared to third quarter 2011:
- Overall inventory decreased 12 percent from 7,069 for the third quarter 2011 compared to 6,195 in the third quarter 2012.
- The overall average DOM (Days on the Market) increased 1 percent from 171 days in the third quarter 2011 to 173 days in the third quarter 2012.
- Overall pending sales increased 12 percent from 2,103 pending sales in the third quarter 2011 to 2,362 pending sales in the third quarter 2012.
- The median closed price increased 10 percent from $175,000 in the third quarter 2011 to $192,000 in the third quarter 2012.
- Naples coastal area overall pending sales increased 17 percent reflecting 388 pending sales in the third quarter 2012 compared to 331 pending sales in the third quarter 2011.
The NABOR® September sales statistics are presented in chart format, with these overall (single-family and condominium units) specifics:
- Overall pending sales increased 96 percent in the $300,000 to $500,000 category from 67 pending sales in September 2011 to 131 pending sales in September 2012.
- Overall inventory decreased by 12 percent from 7,069 in September 2011 compared to 6,195 in September 2012. Pending sales with contingent contracts are included in the overall inventory number.
- Overall pending sales in the Naples coastal area increased 12 percent from 1,776 pending sales to 1,985 pending sales, and closed sales increased 9 percent from 1,601 closed sales to 1,748 closed sales for the 12-month period ending September 2012.
“In the $500,000 to $2 million price categories for the third quarter, there was an increase in pending and closed sales. The robust third quarter in these price categories is very encouraging,” said Steve Barker, Advising Broker for Naples Realty LLC.
As Brenda Fioretti stated, “Now is the time for sellers and buyers to take action. With interest rates at an all time low and with Naples values increasing, it is a perfect opportunity for sellers and buyers to achieve their real estate goals. Whether you are a seller, first-time homebuyer, investor, second or vacation homebuyer, move-up buyer or someone who has decided that it is time to downsize, it is the time to take advantage of current market conditions and the American Dream of Homeownership.”
To view the entire report, visit www.NaplesArea.com or download the PDF here.
CNNMoney reported that home prices have been rising, second quarter 2012 showed the first increase in prices since 2007. Stan Humphries, chief economist for Zillow said “The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own.” In his opinion markets like Phoenix, Las Vegas and many Florida cities, which were hardest hit by the home price decline may show above average gains in the next year. Read the full article at http://money.cnn.com/2012/07/24/real_estate/home-values/index.htm
(As of October 2012)
A basic method used in evaluating home prices is to study total inventory of listings in relation to home sales for the past 12 months. The theory is that if the sum total of homes for sale exceeds the most recent 12 month sales, a Buyers Market exists. On the other hand, if the total listing inventory is below the recent 12 month sales, a Sellers Market is indicated. A one year (12 month supply) is considered to be “equilibrium”.
Basic supply & demand theory suggests a Sellers Market = escalating prices and a Buyers Market = declining prices.
The October 2012 report “Market Statistics as a Reflection of Supply and Demand” by Carroll & Carroll appraisers indicates the Naples/Bonita Springs area market is becoming a Sellers Market. Of the approximately 45 communities studied, many showed listing inventory has declined to a supply of less than 12 months (increasing prices).
A sampling of communities with less than one year supply of listing inventory:
- Aqualane Shores – houses.
- Olde Naples – houses & condominiums.
- Pelican Bay – houses & condominiums.
- Moorings/Park – houses & condominiums.
- Lakewood – houses.
- Pelican Landing – houses.
- Royal Harbor – houses.
- Saturnia Lakes – houses.
- Imperial Golf Estates.
- Copperleaf at the Brooks – houses & condominiums.
- Shadow Wood at the Brooks – houses & condominiums.
- Spring Run at the Brooks – houses.
- Pelican Sound – houses.
- Lighthouse Bay at the Brooks – condominiums.
Contact me at (239) 285-1086 or David@DavidFlorida.com for a copy of the complete report.
