Closed Sales Up...AGAIN!

Closed Home Sales Up 22% in Third Quarter for 2013

There are three key real estate market indicators that help determine how a community is performing when compared to the same time period of previous years. Those are: 1.) The number of closed sales, 2.) the amount of inventory, and 3.) the median home sale prices. ~According the The Naples Area Board of Realtors, in a report published October 17th, our local real estate market closed sale units is up 22% over the same period last year. Overall sales were 1,882 units in third quarter of 2012 compared to 2,290 units in the third quarter of 2013. Additionally, the median home price went from $190,000 in the 3rd quarter of 2012 to $235,000 in the 3rd quarter of 2013--that's a 24% increase! ~Although it is October, a time of year typically when many people begin to put their properties on the market in anticipation of the upcoming season, currently our inventory is down a remarkable 20% from 6,195 residential units to less than 5,000.  Higher demand + fewer properties has continued the upward pressure on pricing. Many sellers in the lower price points are getting discouraged if their homes or condos are not selling--I'd say they need to look to their real estate professional for counseling to determine 'why' their property isn't getting an offer--Could it be they are in direct competition with new construction? Many older homes are being directly affected by the new product coming out of the ground. In other cases, the market just hasn't caught up to their 'inflated' price, but with inventory down, many buyers will need to pay more than they would have a few years ago...The patient seller will have to weigh out the pros and cons of selling now vs. waiting to get their price...Appraisals are lagging behind, especially in the "under $300,000 price range where median home prices have increased 14% over the previous 12 months. 

Other trends identified in this report are as follows:

• The overall average days on the market (DOM) decreased 18% in the third quarter of 2012 compared to the 3rd quarter of 2013.
• Pending sales were up 8% year over year for that same time period.
• Condo closed sales rose 31% third quarter 2013 compared to 3rd quarter 2012.
• Naples coastal areas improved 14%, again comparing third quarter 2102 to 2013.
• Overall closed sales in the $2 million+ category increased 45%, one of the largest gains noted.

If you would like additional information about a specific neighborhood or a particular condominium, the professionals at NaplesRealEstate.com are standing by to assist you. Please call us at 239-370-0574. We welcome your comments and questions. We are also on track for our best year since the 2006 downturn. Let us share with you some of our successes and how we can make the real estate transaction, whether you are looking to buy or sell, as smooth and stress-free as possible!

Thank you, and make it a GREAT day!


The Naples Real estate Blogger


Information was obtained through the local MLS and is deemed accurate and reliable.

  

Naples Florida Real Estate Increased 17%

The Naples Area Board of Realtors 2012 Annual Report

The Naples Area Board of Realtors 2012 Annual Report was recently released with some good information about sales within the greater Naples area. This report tracks and provides comparisons of both single family homes and condos sales in 2011 and 2012, and breaks them down into price ranges and location segments. Here are some of the *statistics which I found to be particularly noteworthy:

• Overall closed sales increased 9% in 2012 over 2011. The price range between $300,000 to $500,000 saw a 20% increase. The greatest jump was in the $500,000 to $1 million category where Naples saw a 29% jump!
• Over all inventory decreased by 13%. Sales that are pended with contingencies are still included in the inventory number. 
• Overall median closed price increased a remarkable 17% from $175,000 in 2011 to $204,000 in 2012. 
• The sales along the beach, Naples Coastal areas, increased 15% with over 2,000 closed sales in 2012.
• Presently in the Naples geographic areas there are only 5,676 active listings.

To view the entire report visit: Naples Area  Here you will also find the 4th Quarter 2012 Market Statistics. If you would like additional information, or a specific neighborhood analysis, please call anyone on The Harris Peppe Team. We are standing by to assist you with all your housing needs. 239.370.0574

We can see that 2012 was a very good year, the numbers don't lie, but I think 2013 is going to be even better! The unemployment rate in Collier County dropped below 8% to 7.8% last month. Tourism is up, and even the commercial market is seeing improvements. We are gaining momentum. I predict this is going to be a strong, sustainable recovery. Buyers this season are already saying, "I should have bought last year!"

For a virtual tour of all our listings log onto our award winning website today at: www.NaplesRealEstate.com or to search only $1 million plus Luxury homes and condos in Naples log onto www.NaplesPREVIEWS.com .  

Thank you as always for reading my blog. Please let me know if you would like me to do research on something of particular interest to you.

Make it a great day!

The Naples Real Estate Blogger


*data derived from the Naples multiple listing system: SunshineMLS

Top 10 Turnaround Towns

Naples Florida Makes the Top 10 List!

Wow! 8 of the 10 turnaround towns that made the CNBC.com list are in Florida, and Naples made its first ever appearance! Check out more of the story by clicking HERE! Data derived from Realtor.com, the official site of The National Association of Realtors, showed clearly that many of those cities that once led the downturn in the real estate markets nationwide, are now leading the way to a turnaround! The list weighs a comparison from the last quarter of 2010 to the last quarter of 2011 and tabulates which towns have shown the most dramatic improvements based on a number of statistics. Naples Florida ranked #7, Miami was ranked #1! The only 2 towns NOT in Florida [are] Boise Idaho and Phoenix Arizona. One of the most striking statistics about Naples that CNBC documented was the fact that the "year-over-year" inventory was down a remarkable 35.94%! To answer the cynics who believe there may still be a shadow inventory lurking out there that will curtail the current trend upward  I say, "based on the current actives, pendings and closed sales, the demand will quickly absorb this possible inventory." 

There has never been a better time to invest in Naples Real Estate than NOW! Purchasing a home or condo, whether it is as a primary residence, a 2nd home, or as an investment, at today's low interest rates, is the best place that you can put your money right now!

For information about the local Naples real estate market, or specific neighborhoods in Southwest Florida, please call a member of The Harris Peppe Team today!  239.370.0574

Thank you and make it a great day,

The Naples Real Estate Blogger

Naples Real Estate Update

May 2011 vs. May 2012

Well, here it is, the 1st of another month. Time flies when you're having fun! May has been a very good month all the way around. We took a few well priced, saleable new listings...we showed homes to some fabulous customers and wrote a few offers...negotiated a few sales...and managed a few days off, including presently being on our boat, bringing her home from the east coast of Florida via the keys.

I thought you would like a Naples Real Estate Update, so I did some general research and compared [this] May to May 2011. Here's what I came up with:

Closed Sales Comparison:

• In May of 2011 there were a total of 911 residential closings in Naples vs. 1,043 in May 2012. That's a nice solid increase considering listing inventory is way down.
• May 2011 approximately 14% of the closings were listed as short sales vs. 12% in May 2012.
• 43% of the closed residential sales in May 2011 were single family homes as opposed to condos and villas vs. 44.5% in May 2012. It is pretty typical that condo sales out number single family home sales, but that they usually run a little closer to 50/50...could be the diminished sfh inventory. 
• 64% of the closed sales in Naples in May 2011 were listed at or below $300,000 vs. 61% in May 2012.
• A little over 10% of the closings in May 2011 were listed at or above $1 million vs. 12.3% in May 2012. Luxury Real Estate Sales are up in Naples!
• The majority of the residential sold financing types, approximately 70% both years, continues to be Cash transactions.

Current Listing Inventory Statistics:

• Currently Naples has 5,346 active residential listings [single family homes as well as all condos and villas]. 
• Of the 5,346 listings, there are only 346 short sales, less than 7% of our inventory. 
• 40.3% of the current inventory is single family homes. 
• 42% of the current inventory is listed below $300,000. Compare that to the 61% of last month's closing being in this price range and it becomes very evident how diminished the inventory is in this price range.
• 17% of the current inventory are homes and condos for sale priced at or above $1 million. That also is just over a one year supply! A one year supply in any neighborhood or price point is a healthy market.

That's just a brief overview of today's Naples Real Estate Market. Please call a member of The Harris Peppe Team today to assist you with any questions you may have about our local market, or to assist you with any of your real estate goals and objectives.      

Thank you, and make it a great day,

The Naples Real Estate Blogger

*all data derived from the Naples multiple listing system: SunshineMLS and is deemed reliable but not guarenteed.



Naples Real Estate Update

Once again we had the distinct honor of having Cindy Carroll, Florida State Certified Residential Real Estate Appraiser, as a guest speaker at the Coldwell Banker monthly business meeting at The Naples Area Board of Realtors. Cindy came chock-full of good information and reliable market statistics. I would like to share some of the highlights of her talk, much of which is based on data derived from our local multiple listing system, and is a reflection of supply and demand.

One of the interesting points that Cindy made was to identify the 4 tiers of sellers in today's market:

1. Short Sales
2. Foreclosures
3. Investor "flippers"
4. Traditional transactions

It is relatively easy to extract whether a neighborhood is "in-balance" based on supply and demand. If the number of listings is equal to the number of sales in the last 12 months, it is a "balanced" market. In some cases, which I will discuss in this post, the absorption rate is less than a year. Any areas or price ranges, carrying 2 or more years of supply, are still experiencing downward pressure on pricing.

Another interesting point to consider is this: In Naples, approximately 60% of the closed sales are cash transactions. Cash buyers, especially with today's strict financing guidelines, allow our market to "move along". 

Here are a few neighborhood observations:

• Aqualane Shores: was at the "top of the market" in February of 2005 with less than a 4 month supply of houses on the market. In April of 2007 there was a 3.5 year supply. Currently there is approximately an 18 month supply, which has been virtually unchanged in about 2 years. Presently 37 "actives", 5 homes under contract [pending], and 21 closed sales in the past 12 months.
•  NA 06 [Old Naples]:  Presently there is only a 10 month supply of single family homes for sale in Old Naples. This area peaked in February of 2005 with a 5 month supply. In December of 2008 there was a 3.2 year supply. There was a "balance" market reported for the first time in approximately 4 years in September 2011.      
• NA15, the area between US 41 and Goodlette Road, is "on fire"! Currently there are only 26 active listings...27 "pendings" and 92 closed sales in the past 12 months!
• NA 05 [Coquina Sands, The Moorings and Park Shore]: In September 2005 there was a 6 month supply...In September of 2007 there was a 4 year supply! Today's inventory is only a 7 month supply! Great recovery!
• Pelican Bay is one of the least variable neighborhoods. It never really got "over-supplied", and never had the short sales and foreclosure numbers of other communities. In September of 2009 there was a 2.5 year supply, but the market has been balanced for awhile and presently there are 34 active single family homes, 13 under contract and 31 closings in the past 12 months.
• Royal Harbor has one of the best stories in town! Just to give you a history of the area, in September of 2004 there was only a 3 month supply...In April of 2007 there was a 9.6 year absorption rate...As Cindy put it, "it was dreadful!" By November 2010 the Royal Harbor area had improved to a a 3 year supply, which still wasn't great. Presently there are only 25 homes for sale, 16 pendings and 29 closed sales in the last 12 months. This equates to approximately a 10 month supply...a remarkable comeback!
• Vanderbilt Beach area: A year ago had a 2+ year supply of inventory, presently only an 8 month supply.
• Golden Gate Estates: NA 22, the Logan Woods and Oaks Blvd corridor, has been "artificially depressed" due to land values and the inability to finance vacant lots, but the single family home market presented itself with a shortage of inventory by November 2010, and today there is a very healthy 9 month supply!
• The Grey Oaks single family market is "a bit of a mystery"...In September of 2005 there was less than a 6 month supply. In October of 2011 there was nearly a 4 year supply. Currently there are 43 actives and only 14 closed sales in the past 12 months. 

The meeting ended on a high note. Predictions were made: Many neighborhoods will be back to our "last point of sanity", 2004 prices, by year's end. ~And, it is probable that values will go up 10% in the next 12 months! In any event, whether you are inclined to be optimistic or not, the facts speak volumes. Inventory is down in most neighborhoods, demand is great, interest rates are at record lows...The short sales and foreclosures are "clearing out". It's a great time to buy Naples Real Estate! Of course, as with any data, each isolated neighborhood, and types of housing in each area, should be evaluated on its own.  The Harris Peppe Team welcomes your comments and questions. Please call us if you would like additional information in a particular location in Naples. 239.370.0574

Thank you, and make it a great day,

The Naples Real Estate Blogger

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.

"Real Estate is NOT Real"!

Again we are faced with the media presenting erroneous information to consumers based on data that is inaccurate and far too broad-based to carry water. As one of my colleagues so eloquently put it earlier today in remarking about various newspaper and magazine accounts of the current real estate market, "Real Estate is NOT real, it's the perception that is real"!

As stated in CNNMoney this week, according to FISV, a financial analytics company, home values are expected to fall another 3.6% nationwide by next June. Naples Florida was used as an example as a region that will be hardest hit, with an anticipated drop of another 18.9%" In addition FISV states that Naples has already dropped 61%. What they, and others, fail to take into consideration is the vastness of Collier County and the gaping range in housing values from one zip code to the next. The areas around Naples which have experienced the greatest setbacks are now some of the most resilient. As an example, Golden Gate Estates, a rural community of Collier County with a Naples mailing address, has seen values decrease as much as 75%! As short a time as only 3 years ago that community had approximately a 7.2 year's supply of inventory! Presently there is less than a 6 month supply, and enough demand to absorb any shadow inventory that might come up on the market in the foreseeable future. Across the board we are seeing signs of stabilization. The trend lines in almost every Naples neighborhood are up!

The Naples Luxury Real Estate market has shown strong signs of recovery. Cindy Carroll with Carroll & Carroll, Inc. a Florida State Residential Real Estate Appraiser, was guest speaker at The Coldwell Banker business meeting last week. According to her market statistics: Old Naples single family homes currently have a balanced supply with 64 Active listings, 7 pending and 62 sold in the past 12 months. The Moorings/Park Shore/Coquina Sands single family homes currently has a shortage of inventory: 104 Actives, 16 pending and 115 closed in the past 12 months. Port Royal and Aqualane Shores both have approximately a 1 1/2 year supply of inventory. Royal Harbor, which had a 9.6 year's supply in April of 2007 now has about a 1.5 year supply...talk about a 'come back'!

Despite the challenges that we, and everyone else in the real estate industry are facing today, The Harris-Peppe Team remains bullish on the housing outlook in Naples. Just a few factors that we believe back up that opinion are: 1.) It just snowed as far south as Virginia last week and 1.6 million people are still without power....people want to spend winters in paradise! 2.) 78 million baby boomers will begin retiring within the next 10 years and many of them will be looking for housing, either to buy or rent, in warmer climates, and #3.) Our interest rates remain at record lows, making housing more affordable than ever for the 35% of the buyers in Naples that finance!

The media may try to do their best to scare away the investors, snowbirds and our international friends, but these factors will come into play more times than not. We all just need to continue to get the word out there that Naples is a safe and beautiful place to live, with well priced listings and a limited inventory.

If you would like information about a particular neighborhood or zip code in Naples, please do not hesitate to call The Harris Peppe Team. 239.370.0574

We welcome your comments. Please make it a great day!

Thank you,

The Naples Real Estate Blogger

Naples Real Estate 3rd Quarter Stats

Nothing indicates what is happening in the real estate market more accurately than listings going under contract. The graph below depicts pendings of Naples residential listings over the past 4 years, per the local multiple listing service: SunshineMLS. This is a clear illustration [click on graph to enlarge] of the peaks and valleys in our local market. Obviously, our pendings go up during "season"-- that just makes sense. But, what I am hoping to show here is the "trend line"...regardless of what is happening in markets across the country, we are definitely seeing an increase in sales in Naples Florida.

Here are a few more *statistics that I think you will find interesting:

1.) January 1st, 2011- September 30th, 2011: Total Closed Sales = 6,598.

This averages 733 closings per month.

We are on track for an 11% increase in sales this year over last year.

2.) January 1st, 2010-December 31st, 2010: Total Closed Sales = 7,837.

This averages 653 listings sold per month.

2011 Year-to-date, of the 6,598 closed residential sales:

• 3,000 were single family homes
• 1,800 single family homes were listed under $300,000.
• 586 of the 3,000 were 'short sales'., of which 78% were listings under $300,000.
• Of the 3,000 single family home closed sales year-to-date, only 17 were short sales listed at or above $1 million
• 709 of the 3,000 were foreclosed homes, of which 89% were listed under $300,000.
• 3,495 were condos/villas
• 2,505 condos/villas were listed under $300,000.
• 506 of the 3,495 were short sales, of which 94% were listed under $300,000.
• 552 of the 3,495 were foreclosed condos/villas, of which 96% were listed under $300,000.
• There was a total of 237 closed condos/villas year-to-date listed at or above $1 million. Only 1 of the 237 closings was a short sale.
• There haven't been any condos/villas closed year-to-date, listed at or above $1 million that were categorized as foreclosed properties.

A few more stats: Current inventory in Naples, residential listings, is down 18.5% over this same time period last year. With pendings up 11% and inventory down to approximately a 9 month supply, I believe we are beginning to see a seller's market again in some choice neighborhoods. The absorption rate varies from community to community, and I would be happy to do a more specific analysis for you. The lower priced listings are still driving the market, but there is no question we are seeing a dramatic rebound in the Naples luxury market. Also, the lack of inventory in new and newer homes due to the slow down in construction has created opportunities for sellers in neighborhoods built since 2000. We are even seeing multiple offers in some cases when homes and condos are priced fairly. There are also some fabulous values to be found in the "tear down" market in the neighborhoods along the beach and waterfront. Royal Harbor as an example, which had approximately a 9 1/2 year absorption rate just a few short years ago, now has less than a one year supply. Old Naples presently has 63 Active single family homes listed, whereas there have been 55 closings year to date...another example of less than a year's supply of inventory.

For additional details about The Naples Real Estate market, please call a member of The Harris Peppe Team today. We look forward to hearing from you soon and hope to earn your business. 239.370.0574

Thank you and make it a great day,

The Naples Real Estate Blogger

*The source of this information is compiled from data obtained from SunshineMLS. The accuracy is not warranted or guaranteed and should be independently verified if one intends to engage in a transaction based upon it.

Is Season Really Over?

Where has the Naples Real Estate Blogger been?

It's been a busy couple of weeks at NaplesRealEstate.com. Chip and I have been showing homes to prospective Neapolitans almost everyday for the past 2 weeks. 'Season' might technically be over, but buyers looking for real values are coming back to town now that the crowds are gone to look hard at those listings that are still available...And the best buys are going quickly! Regardless of the price range, we are seeing the 'bottom' inventory across the board being bought up by shrewd investors, smart second home buyers, international visitors, and first time home owners alike.

Here are some interesting, recent Naples Statistics:

Current Naples inventory is at 6,341 active homes & condos for sale per our local MLS data. That is approximately a 10% decrease in inventory over the same time last year. Single family homes make up 2,576 of those listings. Of the homes presently listed, 15.9% are short sales and less than 2% are foreclosures. 26% of today's homes for sale in Naples are Previews Properties [those homes listed at or above $1 million dollars]. 30% are listed at or below $300,000. Of those homes listed under $300,000 over 35% are categorized as short sales! Total closed residential sales in Naples year-to-date comprised of 16.5% short sale properties.

Currently there are 67 single family homes for sale in Old Naples. Only 1 is listed as a short sale in the MLS, and only 1 is listed as a bank foreclosure. There have been 36 single family home closings in Old Naples year-to-date. 75% of the single family homes which have sold since January 1st, 2011 were listed at or above $1 million!

For an up-to-date analysis of any Naples area in which you have interest, please contact a member of The Harris Peppe Team today. We have served the Naples area since 1981, and I believe our knowledge and enthusiasm is unmatched in the industry today. Whether you are looking to buy or sell, we hope you will interview us to assist you with all your real estate needs. 239.370.0574

Thank you, and make it a great day!

The Naples Real Estate Blogger

What's Happening In Paradise?

Things got quiet around here pretty quickly this year...the seasonal snowbirds hung in longer than usual, possibly because of the later than normal Easter, plus the inclement weather up north...but, all of a sudden, in the past week or so, it has gotten very quiet. We didn't 'ease' into summer...it just kinda' happened one day. I found myself driving on an otherwise busy road this morning without another car in sight! Hello, where is everybody? The locals just finished celebrating the annual Naples City Fest which culminated on Saturday with The Great Dock Canoe Race...There are a lot of really neat things to do in Naples this time of year, and the weather is absolutely perfect! The glorious Royal Poinciana trees, the Jacarandas and the Tabebuia [see inset] trees are all in full bloom! People that leave before mid-May never get the treat of viewing these amazing flowering trees in person! I showed property over the weekend to a couple staying at The Residence Inn and they told me they were the only 'non-European' visitors at the hotel! Yes, we Neapolitans are getting ready for summertime...

Here are a few local Naples real estate statistics that I thought you might find interesting:

• Presently there are 6,717 Active Listings in the Naples area MLS. 2,996 of them are priced at or below $300,000. 1,152 are priced at or above $1 million, and only 612 of them are 'short sales'.
• Currently there are 2,359 homes & condos under contract [pending, or active with contingencies].
• There have been 3,438 closed sales year to date. Of those, 295 have been Previews properties: those listed at or above $1 million, and 2,321 of the 3,438 closed sales were listed below $300,000 which is approximately 67% of the closings.
• Short Sales get a lot of press, but only 13% of the total closings year to date were listed in MLS as short sales. In addition, only 11 total closings priced above $1 million were short sales!
• Of the 932 closings last month, nearly 700 were cash buyers!

I suggest you take advantage of this time of year, and come back to Naples to look around. The hotels and restaurants offer some fabulous discounts...the weather is beautiful, and there are some amazing real estate opportunities!

We look forward to hearing from you soon, and hope to earn your business. Make it a great day,

The Naples Real Estate Blogger

*info is derived from the local Naples sunshine MLS and is deemed accurate.

Naples Florida Residential Pending Sales UP UP UP!

I'm a very visual person, comes from my art background I guess, but you have to admit, a picture can paint a thousand words. Take for example the chart below [click on picture to enlarge]. This graph depicts the Pendings month by month for the past 4 years in Naples Florida. Who can argue that sales are up? If this doesn't convince the buyers that are on the fence that it's time to make a decision I'm not sure what will. As for the sellers: If you are not getting offers, there is probably only one reason: You are overpriced! Inventory is way down, less than 7,000 Active Residential listings in the Naples MLS...remember when we had over 16,000 listings? It wasn't that long ago! Activity has remained brisk even into May! I remain very optimistic about the Naples Real Estate market.

If you would like additional information about the listings available in a specific neighborhood, and/or details about the activity that an area that you either live in, or are interested in purchasing a home or condo in, please call or email us anytime: 239.370.0574

Thank you, and make it a GREAT day! The Naples Real Estate Blogger

First Quarter 2011

The first quarter of 2011 is officially behind us. It's been a much busier 'season' than any we've experience since 2005. Prices are leveling off in most price points, and inventory remains low. Economists predict we are at or near the bottom. Homes and condos are selling, but it is only the most competitively priced properties that have gone under contract in the past 90 days in any given community. Realistic sellers can still expect a sale in the next two months as lingering 'snowbirds' wait out their return to their northern homes. Combine the late Easter with the inclement spring weather up north, and I believe we will also have some "be-backs" right into the late spring looking for the 'end-of-season' bargains.

Here are some local Naples Real Estate 1st Qtr 2011 Statistics that I thought you might find interesting:

• Presently there are 7,546 Active Residential listings in the Naples MLS. Down approximately 5% over the same time last year.
• Current Listings: 3,261 are Single Family Homes & 4,285 are Condominiums.
• 1 Qtr 2011 there have been 926 total closed single family home sales. Based on that number we could possibly close over 3,700 homes by the end of the year, making our present inventory of single family homes less than a 1 year absorption rate overall.
• Of the 926 closings, 583 were listed at or below $300,000-that is approximately 63% of the single family homes closed.
• 92 of the 926 closings were homes listed at or above $1 million-approximately 10%
• 1st Qtr 2011 there were 1,114 total condominium closings.
• 836 were listed at or below $300,000-over 75% of the closings.
• 63 of the 1,114 condos closed YTD were listed at or above $1 million, less than 6% of the total closings. Currently condos listed at or above $1 million comprises 11.8% of the total condo inventory. However, it is the luxury condominiums which have seen the greatest increase in number of closings when compared to the 1st Qtr of 2010, up nearly 8%.
• Total closed residential sales 1st Qtr 2010=1,945 vs 1st Qtr 2011=2,040
• 38% of the closings have been conventionally financed. Most buyers are still paying cash.
• The Median sale price in Naples is presently approx. $186,000.
• The Average sale price in Naples is presently approx. $349,000.
• In contrast, the Average sale price in Naples zip codes 34102 & 34103 is $1,199,242.
• NA06: Old Naples average sale price is up an estimated 12% in the past 12 months vs. the previous 12 months.
• NA05: The Crayton Road area average sale price is up approx. 3%.

Perhaps the best barometer in determining the real estate climate is measuring "Pendings". [see chart above]. This best demonstrates the trend line. Sales are UP, and well priced listings are selling fast! Call The Harris-Peppe Team today to discuss in more detail any specific neighborhood that you are interested in and we will gladly assist you. 239.370.0574

Thank you and make it a GREAT day!

The Naples Real Estate Blogger

More On Florida Vacancy Percentages

Just logged onto the Florida Realtors website, and lo and behold, today's feature story is yet another rebuttal to the CNNMoney article which I referenced today in an earlier post. Check out this report for more accurate information concerning Census Bureau and Florida Housing Vacancies.

Thanks again for reading my blog! I am just trying to get the most accurate information out to the public concerning Naples Real Estate!

The Naples Real Estate Blogger

February 2011 Naples Real Estate Statistics

I cannot believe that February is already over and I am working on month end reports again. I know it's a short month, but didn't it just fly by? While reflecting back on last February, and comparing it to the activity here in Naples this February, I found some *newsworthy numbers that I thought you might find interesting.

• Listing inventory is down. Now, that could just be that we are all too busy working with buyers to concentrate on getting new listings...or it could simply mean that many sellers have decided to keep their properties off the market until the over-correction of pricing stabilizes. Whatever the reason, the lower inventory and higher pendings, is establishing a trend that we have not seen in years. In February 2010 in Naples there were 1,633 new Listings that came on the market. In February 2011 only 1,362! ~About a 17% decrease. Those new listings last year that were priced over $1 million numbered 180, and those listed below $500,000 numbered 1,229. This year, February 2011, of those new listings taken, 156 were priced at or above $1 million, while only 1,004 were listed below $500,000! This translates to fewer listings going active in both the higher & lower price points. Those that had been listed above $1 million last year are now feeling the downward pressure and are being priced below $1 million. The lower priced listings continue to be the most popular range in both pending and closed sales. ~and, The middle prices are beginning to see an increase in activity. I call this a trickle up effect. I think we will slowly begin to see an absorption of the better, well priced listings in the lower price range over the course of the next 90 days. Emphasis on well priced! I also believe that we will continue to see an increase in sales in the luxury market--But, since a much lower percentage of those listings are going under contract, they must be much more competitive with pricing in order to take advantage of what's left of the peak selling season!
• Overall Pendings in February 2010 were 1,188 compared to 1,221 in February 2011. Approximately a 3% increase...compound that with a 17% decrease in inventory! There are pockets in Naples where neighborhoods have seen a more substantial increase in sales then 3%. Those homes and condos listed at or above $1 million had 80 listings pend in 2010 and 81 of the 1,221 in 2011 were listed over $1 million. In 2010 February saw 988 residences listed under $500,000. go under contract in Naples, while last month the pending sales of listings priced below $500,000 were 1,038. Approximately a 5% increase.
• Closed Sales were almost identical in Naples MLS: In February 2010, 570 residential listings closed. In February 2011 there were 571 closings. 31 of the 570 in 2010 were listed at or above $1 million. February 2011 40 luxury properties closed, including a home in Port Royal which was listed at $13,900,000 and closed for $10,500,000. Luxury home closings represented 7% of the closings in February. In February 2010 there were 482 closings listed below $500,000 vs. 469 that closed in February 2011. The lower price range is driving the market.

Presently there are 8,015 Active Residential Listings in Naples MLS. 1,364 are Previews Properties: those listed at or above $1 million, which represents 17% of the market. 5,194 are listed at or below $500,000.

If you would like a market analysis of a specific neighborhood, please call a member of The Harris-Peppe Team today. 239.370.0574 Of course, this is a broad brush of the overall real estate market in Naples Florida and does not reflect the statistics of unique communities within Naples. It is always our pleasure to do a more in depth study of a particular area whether you are considering buying or selling, and it is always a no-obligation service.

Thank you, and make it a GREAT day,

The Naples Real Estate Blogger

*All data is derived from the Naples multiple listing system, SunshineMLS and is deemed accurate but not guaranteed.

"Recovery to Normalcy"

Today I had the distinct pleasure of being in the audience and listening to Dr. Lawrence Yun, Chief Economist for The National Association of Realtors. He spoke for nearly two hours. In addition to the 7 pages of copious notes that I took during his lecture, I will eventually have access to his power point presentation, as will all those who were in attendance. This will also include his charts and graphs, which I will share a link to at a later date. Some of this may lose a little bit in the translation without those graphs, but I will do my very best to post a few of his top talking points and statistics that I believe will be of interest. Although Dr. Yun's presentation was seamless, my recap likely will not be. Obviously, the seminar included many statistics and graphs charting the United States economy and Home Sales, but I will try to concentrate on those topics which will effect real estate values locally, here in Naples.

Here are a few:

• The present population of the state of Florida is approximately 18 million. This is projected to double in the next 20 years.
• If the pattern of new jobs created in Naples, as documented in the past 20 years, were to stay on its same pattern, not withstanding the short term fluctuation of 2008-2010, jobs in Naples will also double in the next 20 years.
• The "normal" migration to Florida, particularly the huge number of baby boomers, among them the more comfortably wealthy, will begin to increase again in 2011. [more people left Florida than entered in both 2008 & 2009-and 2010 was virtually even.]
• Newly built inventory in South Florida is at a 40 year low. New housing start permits in Collier County numbered about 1,000 per year for the last 3 years vs. an average of over 6,000+ in the previous 4 years.
• Currently, the cost of constructing a new home is higher than buying a newer resale. Buyers wanting newer homes will have to buy resales in most cases.
• Upcoming tighter mortgage regulations as well as the expectancy of home loan rates increasing in 2012 will prohibit some buyers without cash from purchasing.
• Nationwide, there have been no meaningful changes in Home Price Trends, they have gone 'sideways' for approximately 12 months. However there are some "wildcard" markets that may even see a 10-15% increase in prices after the 2008-2010 over-correction. Naples fits into this category!

Overall, the outlook was very bright for Florida, and specifically a recovery in Southwest Florida! Dr. Yun also touched on the influx of foreign buyers coming to Florida, consumer confidence levels, unemployment, business investments and commercial real estate, mortgage defaults and governments bail-outs.

Dr. Yun ended the seminar with two quotes, and this discussion: The countries in the world that prosper are those which encourage and support home ownership. He spoke from the heart of his own memories of his birth country, South Korea--the fact that the one true thing that separated the ideology of his homeland and North Korea was home ownership. He compared this to a current news maker and mentioned the fact that 90% of Egyptians do not have title to their homes. He said he believed there had been two 'transformational' Presidents in our modern history...and these were the quotes:

"A nation of homeowners is unconquerable." ~FDR

"We will preserve the part of the American dream which mortgage interest deduction symbolizes." ~Ronald Reagan

Thank you for your time. Make it a great day,

The Naples Real Estate Blogger

A Few More Recent Stats

Here is a smattering of statistics recently released by The Naples Area Board of Realtors that I think you will find very interesting:

• Pending sales up overall 28% in the last 12 months.
• Single family home pending sales are up 71% in the $1-2 million dollar price range in the past 12 months.
• Median closed sale price in the over $2 million price range is up 17% in the past 12 months.
• Single family home inventory dropped 4% from a year ago, and the condo inventory is down 9% as compared to a year ago.
• Condo sales are up 45% overall in the past 12 months.
•  The average "Days On The Market" for single family homes listed at or above $2 million dollars was down 33% from July 2009 to July 2010.

Here's an interesting fact from our office, Coldwell Banker Previews on 5th Avenue South in Old Naples :

• 70% of the closings were cash transactions in July.

The media inundates us with a lot of negative press, but these figures are very promising for a successful season ahead. It also looks like the luxury market is taking off, and the multi-million dollar listings will sell if priced correctly!

For additional information about these figures, please contact Harris & Peppe today. It would be our privilege to assist you in finding your new home in paradise. We hope to hear from you soon, and we look forward to earning your business.

Thank you,
The Naples Real Estate Blogger
239.250.4370

Short Sale and Foreclosure Update

I like sharing statistics about the Naples real estate market...I'm known around the office as the one with all the data and percentages...it is important to me when showing homes to have facts to back up my reasons for why I selected certain homes to show over others. I am a bit of a 'numbers freak'. Lately, I have been asked quite a bit to share some facts about the short sales and foreclosures in Naples.  It is no secret that when the term "short sale" was first coined, I made the decision not to work in this market...After nearly 30 years in the business, I wasn't thrilled with the idea of a less than 10% return on my time. Recent studies indicate that in the state of Florida, approximately 30% of the short sales that are under contract will go through to a successful closing. In Naples it's presently only about 16%.  Recently our company implemented a department within our title company, *Sunbelt Title Services,  that is handling the communication between the sellers and the lenders (*see blog post June 24th, 2010). This is helping to expedite the process. It has been a huge learning curve for everyone, especially the banks, who are overrun with inquiries and negotiations. But, as time goes on, I realize that all price ranges are being effected by this anomaly, which is becoming much more the norm. ~And so, what I originally said I wouldn't do...well let's just say I'm going to the seminars and watching the webinars, and trying to learn what I can to be as knowledgeable as possible in order to give the best service to the buyers and sellers with whom I work. 

Here is some information that I found very interesting:

Currently there are 2,267 Active Residential listings (homes and condos) in NA 01-08. [This is the geographic areas west of U.S. 41, closest to the beach and on the water.] Of those 2,267 listings only 144 are "short sales". AND Of the 144 listings only 12 are priced above $1 million dollars! Of the 2,267 residential listings, only 19 are foreclosures! AND, none of the foreclosures are priced over $1 million dollars!  

Contrary to what many of the buyers are hearing on the news, and reading in the papers, much of the real estate in and near the beach communities of Naples are not being effected by the short sales much as one may think. For a complete list of homes for sale in the waterfront and beach communities of Naples, please call The Harris Peppe Team today. 239.370.0574

Thank you and make it a great day!

Naples Real Estate Market Update

There's a lot going on in the Naples real estate market. Here's a brief recap.

• The average sale price in Naples is $357,010. In April 2009 the average sale price was just under $350,000. In March of 2010 it went above $400,000 for the first time since November 2008.

• In January through April 2009 there were 11,243 new listings taken in Naples compared to the first 4 months of 2010 when 10,441 new listings were placed into the MLS. Presently there are 7,676 active listings. Of those 1,441 are Previews Properties (those listed at or above $ 1 million dollars). Conversely, 43.4% of the current inventory is priced below $300,000.

• There were 1,384 listings that went under contract in April 2010 as compared to April 2009; an increase of approximately 17%. Of those that pended last month, 73.4% were listed at or below $300,000. This price range continues to drive our market.

• 18% of the active listings in Naples are Previews Properties vs. only 303 of the 4,373 closed sales TYD having been listed at or above $1 million dollars which translates to only 3% of the closings.

For the purpose of conducting property searches, Naples is divided in NA zones (Naples Areas) numbered from 1 through 48. In reviewing the averaged closed sale statistics over the past 12 months only two NA zones showed an increase in average sold price; that being NA 02: Vanderbilt Beach, and NA 07: Aqualane Shores and Port Royal. It is always favorable when the high end of the market shows signs of recovery.

Interest rates are holding fairly steady, although it has been predicted that they may rise intermittently over the next 6 months and level out around 7%. This may get some hesitant buyers off the fence, but won't effect us as much as could be expected as 68% of our office's closed sales YTD have been cash transactions.

As always, Chip & I welcome your comments and questions. We can be reached at 239.370.0574 (direct). We look forward to hearing from you and hope to earn your business.

*Information has been derived from the Naples multiple listing system, SunshineMLS, and are deemed reliable but not guaranteed.

Inventory Down. Sales Up!

It's the first day of a new month and a new quarter. We completed our month-end reports yesterday and we are also carefully reviewing the year-to date statistics in each of the markets that we are most active. We found a few interesting conclusions based on data from our local MLS that I thought I would share. Keep in mind, these findings are inclusive of all geographic areas in Naples. Certain market segments are holding there own better than others, and indeed, certain areas are quite active and showing strong signs of leveling off. More than just a few local real estate gurus are predicting we may be at or near the bottom.

• Residential Sold Listings peaked in June of 2005 with three subsequent spikes in the next 3 years in March 2006, May 2007 and May 2008. The most recent peak in May 2009 marks the first time since September 2005 that closings in the Naples MLS exceeded 700 units!

• Residential Pending Sales By Month, which is typically the best barometer for determining what is happening "now" shows a marked improvement when tracking pendings June 2005 through to the present. The average number of pending per month over the past four years has been 475, but in April and May of this year we exceeded 1000 each month!

• Residential Median Sold Price Per Month indicates the "middle" (half sold above this price, half sold below) from June 2005 to May 2009 at $352,006. However, if all listings priced at $300,000 or less are taken out of this equation, the Residential Median Sold Price By Month dramatically becomes $515,718. (keep in mind, 4 years ago you'd have been hard pressed to find any listings priced under $300,000 in Naples Florida. Today approximately 40% of our inventory is listed under $300,000).

• When duplicating this same search, but only going back 12 months to June 2008 another interesting result occurs. The Residential Median Sold Price By Month hit a low of $175,000 last month. However, once again when we eliminate all closed sales of listings priced below $300,000 from the search criteria the median price for this date range is back up to $517,371.

• Currently, Naples MLS inventory is down to under 9,000 Residential Active Listings. Just one year ago, in June 2008, we had a 33.76 month supply in inventory. But, when we take our current inventory and chart it with the current 12 month trend of pendings and closings we calculate that as of June 30th, 2009, we have a 20.79 supply in months of Active Residential Listings.

There is a strong demand for well priced listings; today's buyers are looking for value. Interest rates have remained stable. ~and We feel very lucky to be selling real estate in Naples Florida. Chip & I have had a good 1st and 2nd quarter. Year-do -date pendings and closed sales exceed 2008.

Please don't hesitate to contact us should you have any comments or questions concerning the current state of the real estate market here in Naples Florida. The Harris Peppe Team is happy to provide you with details about any specific communities or condominiums. We hope to hear from you soon and look forward to earning your business. Please call us anytime at 239-370-0574 direct. Thank you...have a super month!

Naples Real Estate Statistics

At this morning's weekly sales meeting, at the Coldwell Banker Fifth Avenue Previews office, our broker shared with us the following statistics from the Naples area MLS: May 2008 vs. May 2009

• The number of pendings of residential listings priced under $300,000 is up 193%. The median price in this same price range is down -39%.
• Pendings of residential listings in the $300,001-$500,000 are up 9%, and the median price is only down -1%.
• One of the most dramatic changes is in the $500,001-$1 million list price range where prices are up 1%, but the number of listings pending is up 24%.
• Listings priced over $1 million dollars saw a 13% increase in the number of properties going under contract last month and the median price was down a mere -3%.

The median sales price of closed sales comparing May 2008 to May 2009 changed from $314,000 to $174,000. But, when you take the closed sales with list prices at or under $300,000 out of the equation the median closed sale price changed from $557,000 to $550,000.

Months of Inventory has been on the decline since February 2008. In May 2008, the Naples inventory had a 35.36 month supply. In May 2009, that supply decreased to 23.15. Inventory is down--Sales are up--interest rates are stable--NOW is a great time to buy!

Call us today for a more detailed analysis of your neighborhood, or of any community or condominium that you might be interested in. The Harris-Peppe Team is looking forward to hearing from you and hoping to earn your business. 239-370-0574