Monday, August 20, 2012
Naples Real Estate Update
Strong Summer Sales in Naples Florida
Recently released statistics show strong summer sales abound in Naples Florida. As reported in the Naples Area Board of Realtors Market Report, all three categories documented: Pendings, Closed Sales, and Median Sales Price showed increases for the 12 month period ending July 2012. Comparing July 2012 to July 2011 it is clear to see positive signs in every price point. Those sales posted in all pricing categories over $500,000 range were up a whopping 30%. Additionally, inventory in Naples remains at record breaking lows. Currently there are less than 3,000 single family homes for sale in the Naples SunshineMLS. ~And, considering those that have contracts 'pending with contingencies' are still included when calculating Active Listings, the inventory is even lower than what shows up when the public does independent searches on IDX sites. The July statistics can be found on the local website which is available to the public by clicking here, Naples Area.
The entire report is quite interesting, and outlines both single family homes as well as condominiums in a chart format that is easy to read. Of course, if you would like information about a specific neighborhood, The Harris Peppe Team at Coldwell Banker Previews International would be happy to assist you.
Many of their prospects have read this report and have mentioned that it really isn't fair to compare 2012 to 2011 and expect to believe the market is as strong as purported. Many think that 2011 wasn't a very good year, so just because 2012 is showing strong sales it doesn't necessarily mean the market is strong overall. My response to this is: I compared the 2012 sales year-to-date to the total sales in 2005, a year that everyone can agree was the peak of the market. In 2005 the Naples SunshineMLS reported a total of 8,856 closed residential sales; this equates to an average of 738 closings per month. So far, in 2012 from January 1st through July 31st we have had 5,698 closings; which translates to an average of 814 closings per month. Approximately a 10% increase in units sold. A lot of seller's are testing the market at a higher price than the comparables substantiate because of the lack of competition and then reducing the prices until an offer is obtained, rather than listing at a price in line with recent sales. This results in a lag in the list date to sold date and could account for the slight increase in days on the market, up 2% in July 2012 from July 2011.
One of the "hottest" tickets this summer are listings in the coastal communities. As an example, the areas where we live and sell have had brisk sales and very low inventories. Coquina Sands had 26 closed sales in the past 12 months and presently there are only 8 single family homes on the market. Gina Fischer, the resident specialist for Coquina Sands mentions in her monthly update that there is only 1 home listed in this entire neighborhood priced below $1 million! This could prove to be an opportune time for sellers, especially those in older homes, and should consider having Gina do a no-obligation evaluation. You can reach Gina directly at 239.564.5475. The Royal Harbor Area presently only has 25 homes for sale. With 39 closings in the past 12 months, this means there is less than an 8 month supply of homes for sale in this community. ~And, only 7 of the 25 are priced below $1 million. Olde Naples is another coastal community being effected by high demand and low inventories. If you have any questions about waterfront properties or the downtown market, please call or email Chip Harris. 239.370.0574
As always, all of us at NaplesRealestate.com hope to earn your business and look forward to hearing from you soon. Thank you again for taking the time to read our blog. Make it a great day!
The Naples Real Estate Blogger