Sorry for the delay in reporting the *year-end results...It's not for lack of what to blog about, trust me...We've just been very busy, and the days just seem to slip by. Looking back over last year's blog post, it is obvious we are experiencing a constant trend that promises to show more signs of improvement in both the low end and the luxury price points this year. I predict we are in for the busiest season we have seen in five years. Several factors indicate that we are at or near the bottom. However, not every community has hit the bottom. Keep in mind, not only is real estate 'local', but also within a town like Naples, each neighborhood has its own personality and market conditions. Three things which I believe are still impacting our local market are: Inventory, Interest Rates, and Pent Up Demand.
INVENTORY:
Last year at this time, inventory of active residential listings per the Naples MLS was at 7,946. Presently there are 8,222 active residential listings, a slight increase, but still well below the peak of a few years years back by nearly a 38% decrease. Of those homes and condos listed in Naples 1,359 are Previews Properties [those listed at or above $1 million], and 3,997 are listed at or below $300,000.
Here are some more specific stats:
Total residential units closed in 2009: 7014
Total residential units closed in 2010: 7,848
Total closed sales in 2009 of $1 million+ homes and condos: 475 [6.7%]
Total closed sales in 2010 of $1 million+ homes and condos: 605 [7.7%]
Total closed sales in 2009 of $300,000 or less: 4,836 [68.9%]
Total closed sales in 2010 of $300,000 or less: 5,328 [67.8%]
Clearly, the "under $300,000" price point is still the driving force behind the recovery in the Naples area. Presently, this price point only consists of approximately 49% of the current active residential listings, which in my opinion means there is less to choose from in the most popular price range. This in turn will begin to have a 'trickle up' effect, as those homes which may have been listed at $299,000 last season may now be able to list at a higher price, depending on the competition in their given neighborhood.
Here are a few more interesting stats from the past year:
The Residential Median Sold Price for 2010: $180,992. The 2 Year Residential Median Sold Price: $179,523. The Residential Average Sold price for 2010: $370,872. The 2 Year Residential Average Sold Price: $361,892.It is also interesting to look at the different geographic areas in Naples. Our MLS is divided into Geo Areas such as NA 05 is the Crayton Road Area, NA 06 is Old Naples, NA 07 includes Aqualane Shores, Port Royal and the surrounds, NA 08 encompasses Windstar as well as The Royal Harbor area and surrounding waterfront communities of Oyster bay and Golden Shores.
Here are a few statistics about some of these neighborhoods that I found interesting:
Port Royal had 29 sales in 2009, and was one of our shining stars with 38 closed sales in 2010. The average closed sale price in Port Royal in 2009 was $4,818,448. The highest closed sale in MLS was for $14,135,000. In 2010 the average closed sale price in Port Royal was $6,681,368. and there were 4 sales over $20 million!
The **Royal Harbor Area was not as brilliant. After consistently closing an average of 42 homes since 2000, the Royal Harbor Area peaked in 2005 with 58 closings. The very next year saw one of the worst downturns in Naples with only 9 MLS sales recorded. Royal Harbor bounced back somewhat in 2009 with 30 closed sales and an average sold price of $1,408,405. up from the average sold price of $1,281,950 of 2008. Last year in 2010 there were 23 closed sales and the average sold price decreased to $1,059,978.
INTEREST RATES:
Banks continue with stricter lending criteria, however mortgage rates remain low and there are some excellent programs out there. I invite you to call Kelly Rebimbus at Sunbelt Lending if you have any questions, or if you'd like to get pre-qualified before beginning your Naples home buying search. Her direct line is: 239.273.5239. By the way, CASH transactions out numbered Conventional Financed purchases 3 to 1 at our office.
PENT UP DEMAND:
Our phones are ringing off the hook! Walk-ins at our prestigious 5th Avenue South address are up! Internet inquiries, up! Rental bookings? You got it, up! The Naples market appeals to 2nd home buyers. This is a very attractive place for so many reasons, and our snowbirds are here, enjoying the warmer climate and all the other natural and cultural amenities that Naples has to offer. They are also looking at Naples Real Estate! In the next 10 years there will be over 35 million baby boomers turning 60 in this country. That is a huge source of buyers who could potentially be relocating to Southwest Florida. In addition, our European and Canadian friends are back, more confident than ever in the Florida real estate investment.
There is a lot of good news. Please do not hesitate to call us personally, or to refer someone you know who might be interested in receiving more detailed information about our beautiful little city. Our direct number is: 239.370.0574 or we would love to mail you a complete Welcome to Naples package!
Thanks, and make it a great year!
The Naples Real estate Blogger
*All data is derived from the local Sunshine MLS and includes residential single family homes and condominiums in the Naples Geo Areas is deemed to be accurate but not guaranteed.
** The Royal Harbor Area statistics include Oyster Bay and Golden Shores
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