The 2016 Season Indicating Stability in the Market
According to our data, combined with information released in a recent article from The Naples Area Board of Realtors, we are seeing a stabilization in the local real estate market. Several factors are used to determine a “balanced” market; a market with equal “fairness” to both buyers and sellers. Typical of a balanced market is an equal number of homes and condos for sale in any geographic area compared to how many have sold in that same area over the past 12 months. Today’s total residential inventory in Naples equates to approximately a 6.2 month absorption rate across the board [some areas are higher, some are lower]. Current total inventory has risen approximately 13% year-over-year, the highest numbers of listings we’ve seen since April 2013. Many sellers are beginning to put their properties on the market, because it’s the first time in a long time they can actually see themselves making a profit…giving buyers a better selection than they’ve had in years. And although pending sales are down when compared to January 2015, many people are forgetting to take into consideration the rise in inventory in all the new construction communities, which are selling like hotcakes! Likely, there are as many if not more sales, just not re-sales as calculated by the multiple listing system.
Here is an overall market summary:
Every price range showed a double digit increase in inventory except the under $300,000 segment.
The 500,000- $1 million segment experienced the highest increase at 26%, typical of upward pressure prices.
pending sales decreased January 2015 vs. January 2016 23%, again likely due to the increase in sales in the new construction home communities.
pending sales in condominiums in Naples in the $1 million- $2 million range increased significantly, 14%.
Closed sales for the calendar year ending January 2016 decreased 1%
Median closed sale prices for the calendar year ending January 2016 increased 13%
Average days on the market year over year decreased 14%
We are optimistically planning on March and April being two excellent months. Many buyers we have worked with are already planning their return trips to Naples later this spring to make purchases. We have also found many of the buyers we are working with deciding on new construction communities rather than buying resale, older homes in the established neighborhoods. Additionally, we have found quite a few foreign owners deciding to sell, adding to the increase in inventory. Our internet inquiries are up year-over-year 23%. All indications of a great season!
For information about a particular neighborhood, please do not hesitate to contact us directly. 1-239-370-0574
Thank you, and make it a GREAT day!
The Naples Real Estate Blogger
*data derived from the Naples MLS and the NABOR Press Release 2/19/16