Closings and Inventory
Second quarter closed sales units increased 20% over first quarter, and 18% ahead of second quarter 2009. This makes it the third highest quarter in the past 10 years, exceeded only by second quarters 2004 and 2005. Properties priced under $250,000 comprised a smaller percentage of the market than in the past several quarters, and represented only 59% of all closed sales versus well over 60% over the prior six quarters.
Inventory continued to decline with the number of available properties decreasing by 14% from second quarter 2009 to second quarter 2010. The two-year supply of product available at the end of Q2 2009 now stands at less than one year, and indicates a balanced market at the current time.
New Listings and Pended Sales
The number of new listings placed in inventory during the second quarter continued to decline and posted the lowest level for any second quarter since 2005. Although some areas remain oversupplied, the combination of declining inventory and fewer new listings has already resulted in a shortage of supply in some segments.
The ratio of closed sales to new listings increased to one sale for every 1.7 new listings, an improvement over second quarter 2009 when there was one closed sale for every 2.1 new listings. The ratio of pended sales remained constant with Q2 2009 with one pended sale for every 1.3 new listings taken.
Inventories continue to shrink in almost every price category when compared with their levels twelve months ago. The under $250,000 price category, which has comprised such a significant percentage of the market over the past two years, appears to have stabilized. Inventory in this previously oversupplied segment now stands at approximately a one year supply based on the number of closings that occurred during the past 12 months. Single family homes priced over $2,000,000 and condominiums priced between $750,000 and $1,000,000 posted the biggest declines in available product. Single family homes in the category decreased by 27% and condominiums by 29%.
Median and average sales prices have also improved as a result of significant activity in the over $2,000,000 price range. Prices remain substantially lower than at the peak of the market, and buying opportunities are still available. However, if inventory continues to shrink, and fewer properties are placed on the market, these opportunities could be limited in some areas. Modest price increases are already occurring in a few areas and John R. Wood Realtors will continue to monitor this trend over the coming months.
This report is intended to give the reader a macro-view of the current market in the Naples, Bonita Springs, Estero area. Buyers or Sellers who have interest in a particular area or building should consult their John R. Wood Realtor for up-to-date information on those areas.
“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2010 Sunshine MLS, LLC. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.”