MORE GOOD NEWS!
Recently released statistics, from The Naples Area Board of Realtors [NABOR], report more good news! Closed home sales, as well as sales pended, have increased 5% over the past 12 months. This data tracks all home and condo sales in Collier county excluding Marco Island, which has its own board. In addition to the increase in sales, our inventory is way down…an overall decrease of 17% less than what was active a year ago! There is so much data–so many statistics…but, to simplify and make the outline more concise I wanted to concentrate on the numbers which were the most striking to me.
Overall pending sales increased 55% in the $500,000 to $1 million category February 2001 to February 2012.
Closed sales increased 13% in the $1 million to $2 million category 12-month ending.
Overall closed sales increased 70% in the $2 million plus category during that same time period.
Median closed sale prices are up 5%.
Inventory decreased 17%.
Over all pending sales in the $300,000 to $499,999 range are up 11%.
Naples Beach [which includes zip codes 34102, 34103 & 34108] pending sales increased 17% and closed sales increased 20% 12-month ending.
855 homes pended last month in the “under $300,000” price range. Presently there are 646 homes active in this price range. That equates to approximately a 9 month absorption rate.
The overall market experienced 8,349 closed sales for the 12 months ending February 29th 2012 compared to 7,929 closed sales for the previous 12 month time range.
A year ago, as released by NABOR on their site NaplesArea.com on March 18th, 2011, home prices were up 10%. With the current trend of low inventory, low interest rates and continued demand from both investors and foreign buyers as well as baby boomers looking for a vacation home or permanent Florida residence, I feel confidant that number could double this year! What I have referred to as the ‘trickle up’ effect is now causing low end prices to increase, pushing middle pricing higher and demand for middle pricing to gain great strength. ~And, well priced luxury real estate is also breaking records!
Lower inventory and increased demand creates an urgency that effects value. A perfect example: Chip Harris had a listing in Old Naples, on and off the market, for approximately 4 years. Like so many sellers, they got into the trap of continuing to chase the market down with price reduction after price reduction. This is not uncommon as many agents will agree. Last month they received 4 offers within 24 hours of another…One of the buyers who did not get his offer accepted wanted to keep his contract in back-up position. Chip then called other owners in the same complex, and that buyer ended up paying more for another unit in the same building! Cindy Carroll, a principal of the appraisal firm of Carroll & Carroll was recently quoted as saying, “The market is on fire!” I couldn’t agree with her more!
For additional information about a particular Naples neighborhood or statistics about a certain price range, please contact a member of The Harris Peppe Team today at 239.370.0574
Thank you, and make it a great day,
The Naples Real Estate Blogger