Naples, Bonita, Estero market area
This Naples Area Real Estate Market Review is brought to you by Dustin Beard and his team. The Naples, Bonita and Estero markets have all shown significant increases in closed sales and average sold price while the available inventory has decreased. Quality homes and condominiums that are priced right are not lasting long on market.
NEW LISTINGS AND PENDED SALES
Available inventory decreased to 5,615 single family homes and condominiums in the Naples, Bonita Springs, Estero combined market.This represents a 15% decrease from April 1, 2013 and a reduction of 64% from the peak for the period on April 1, 2008 when supply was at 15,395 units. The number of new properties placed on the market in the first quarter has been stable since 2012, and is near 2004 – 2005 levels. (Exhibit 1)
Pended sales for the quarter were approximately the same as the number of new listings placed in inventory for the first time since John R. Wood Properties began tracking this ratio in 2004. Although all pended sales do not close, this is the best leading indicator of the current and near-term market. (Exhibit 2
CLOSINGS AND AVERAGE SALES PRICE
After three years of relatively stable first quarter closings, Q1 2014 posted a 13% increase. Sales between $2.0 million and $5.0 million remained brisk, (101 closings) posting the highest number of closings in this segment (for any quarter) since Q2 2005, when there were 117 closings. Average closed price for the first quarter increased 19% over prior year, driven by the large number of sales above $2 million. However both average and median sales price remains 32% below their highs for the quarter in Q1 2007. (Exhibit 3)
MONTHS OF SUPPLY
The number of months of supply continued to decline with an overall supply at the end of first quarter of 5.4 months. Supply varies among different price ranges with only 3 months in the under $250,000 range and a balanced market in most other segments. (Exhibit 4)
Sales above $2,000,000 moved at a brisk pace during the first quarter, posting a 66% gain in the number of sales and an increase in volume of 74% over Q1 2013. Median price in this segment remained stable at approximately the same level as 2013, while median price in the overall market rose 7%.
Properties priced below $250,000 continue to be absorbed rapidly with a 21.5% decline in inventory from first quarter 2013. Distress sales, which comprised a substantial portion of this price range during the market correction, are shrinking and currently make up only approximately 14% of total inventory, (down from 19% a year ago). Other factors affecting the decrease in supply in this segment are the impact of rising prices pushing some of the inventory into the next higher range, and the decline of investor activity.
The message to Sellers and Buyers is the same as it has been for a number of months – It is still a great time to sell or buy, but more important than ever to request specific data on the price range, neighborhood and property in which there is an interest. Some segments are experiencing extreme shortages of inventory, while there are others still in a balanced or perhaps, slightly oversupplied situation.
This report is intended to give the reader a macro-view of the market in the combined Naples, Bonita Springs, Estero areas. Contact a Dustin Beard for additional information at (239) 289-2650 to learn more about the area.
“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2013 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.”