Saturday, January 21, 2012
Naples Real Estate Update
What is happening today in the Naples Real Estate market?
Just released, The NABOR Market Report has some exciting and interesting statistics about the current state of the real estate market in Naples Florida. Several factors are coming into play regarding value, primarily supply and demand. The 2011 housing inventory ended at a 5 year low. Specifically, the number of properties listed below $300,000., which has been the driving force behind our recovery, are way down. There has been a 21% drop in inventory in this price range. This is the lowest level of housing available in the under $300,000 homes and condos since 2007! Of those currently active in this price point, there are only 771 single family homes. This is 'pushing' the average price up in the under $500,000 range. Presently there are nearly 1,600 fewer listings available this January than there was a year ago. This translates to fewer choices for today's buyers.
Sales and average sale prices are increasing across the board. The Previews listings, those listed at or above $1 million have seen the largest increase in both pended contracts and closings. The last quarter of 2011 compared to the last quarter of 2010 saw a 38% increase in the number of closings between $1 - 2 million dollars! The over $2 million luxury homes and condos increased 12%. When you take the under $300,000 closings out of the equation, the overall median closed sale price increased 2%.
Some of the areas where The Harris Peppe Team focuses much of their business are the Old Naples area [NA06], and Naples Waterfront, [NA 07 & NA08] comprised of Port Royal, Aqualane Shores and The Royal Harbor area. The graph above is a stunning visual of the trend of the average price of single family closed sales in these waterfront communities. [click on graph to enlarge].
Presently in Old Naples there are 72 active single family homes available. Only 12 are priced below $1 million. There were 63 single family home closings in 2011, this reflects are fairly balanced market, and those listings on the best lots will sell if priced well this season.
On the water in the Royal Harbor area there currently are 44 single family homes on the market. Only 17 of them are listed below $1 million! Last year there were 38 total closings in the Royal Harbor area. Again, we are seeing just over a one year supply...that is quite a recovery when you take into consideration those neighborhoods had a 9.6 year supply in April of 2007. Here prices are a bit more scattered, but again the best lots priced right will sell. Also, the number of inventory homes in both Old Naples and on the waterfront with gulf access is minimal. If you are looking for a newer home in any of these communities you have very few choices.
People ask me my opinion about what the cynics call the "shadow inventory"...and it is my feeling that our market is in good shape to take on that inventory. Keep in mind, most of the short sales and foreclosures are not in the high-end neighborhoods.
Well, I hope you found this little recap informative. Please call The Harris Peppe Team today to assist you with your Naples Real Estate housing objectives. We are here to help you any way we can. 239.370.0574 and we are always interested in your feedback!
Thank you, and make it a great day!
The Naples Real Estate Blogger
*information derived from SunshineMLS and is deemed reliable but not guaranteed.