Tuesday, August 23, 2011
More Naples Real Estate Updates
A Diminishing Inventory in Naples Florida Real Estate
The Naples Daily News article from the weekend paper touted the continuing market stability of our local real estate values. According to The Naples Area Board of Realtors, key indicators such as 'pending sales, current inventory and the median closed price' show signs of real estate stability during these otherwise challenging economic times. Their report further states pending sales were up 2% in July 2011 when compared to July 2010. Another contributing factor is the decrease in non-traditional sales such as short sales and foreclosures. In one of my recent posts about waterfront homes in Naples I calculated that there were 214 homes for sale in the Naples MLS with direct or indirect gulf access. Of those only 12 were short sales and there weren't any foreclosures reported. According to NABOR, 'inventory continues to drop at a rate of 19%. Across the board we currently have less than a 9 month supply of inventory'. This is the lowest seen since NABOR began tracking absorption rates in April 2007. Since April 2007 inventory in Naples has declined over 5,000 residential units. Thanks mostly to smart money investors who are taking advantage of the great values!
Here is a synopsis of one aspect of our market which I believe will help illustrate the current trends in a very popular price range here in Naples, as an example:
Currently Active Single Family Homes priced below $500,000=1,300
When you add to that general search criteria more specific search parameters such as: Year Built 2000 or newer, homes with a private pool, located in a gated community, that number goes from 1,300 Active listings down to only 158 Homes for Sale in all of the NA zones in Naples. Now, take into consideration all homes that meet the very same specifications that have closed in the past 12 months: and there have been 298 closings. That equates to approximately 24.8 closings per month. Based on those closed sales and today's current inventory, we are left with only a 6.37 month absorption rate in that priuce range and specifications! Typically a 12 month absorption rate is considered a 'healthy market, therefore it is this writers' belief that we are experiencing a stabilizing real estate market in Naples Florida.
For additional information about homes for sale in all price ranges, please contact a member of The Harris Peppe Team today! 239.370.0574
Thank you, and make it a GREAT day!
The Naples Real Estate Blogger
data derived from the Naples area MLS is believed to be accurate but not guaranteed.