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3rd Quarter Market Review of Naples Real Estate

CLOSINGS AND INVENTORY

Closed sales units for the third quarter increased slightly over third quarter 2010, with 2,150 closings compared to 2,109 for the prior year. Third quarter closed sales have only exceeded 2,000 units in five of the past 12 years. Two of those were the peak years of 2004 and 2005, and the remaining three occurred in 2009, 2010 and 2011.

Closed sales above $2,000,000 remained strong and posted a 26% increase over third quarter 2010.

Inventory is down in every price segment in both condominiums and single family homes, with the exception of condominiums priced above $5,000,000, which is level with Q3, 2010. The largest decreases occurred in condominiums priced between $2,000,000 and $5,000,000, which decreased by 27% and single family homes priced above $5,000,000, which posted a 24% decline.

NEW LISTINGS AND PENDED SALES

The number of properties placed in inventory in the third quarter continued to decline when compared with the same period in prior years. In fact, it was at its lowest level since Q3, 2004.

Pended sales remained strong, and third quarter 2011 posted the fourth highest number on record for the quarter. With one pended sale for every 1.6 properties placed on the market, this ratio remains very healthy, and up significantly from 2007 levels when this indicator showed only one sale for each approximately five new listings.

SUMMARY

Available inventory is at its lowest level since John R. Wood Realtors began tracking inventory levels in 2007. Third quarter 2011 posted a 24% decline over Q3 2010. When compared to third quarter 2007, the number of units offered for sale has declined by 45%. It is significant that the segment priced below $250,000 declined by 34% since the same period 2010, and now comprises 38% of total inventory – down from 43% a year ago. Diminishing supplies in this entry-level category could be a factor in driving prices in the future.

Average and median sales prices remain approximately constant with the same period 2010, and at historically low levels. In fact, average sales price is consistent with 2001 levels, providing yet another indicator that it is a great time to buy!

Diminishing supplies in all price ranges, historically low prices and mortgage rates, and one of the best locations in the world, point to an active season in the southwest Florida real estate market. The unprecedented market dynamics which currently exist provide astute buyers with a once-in-a-lifetime opportunity, which will probably not be repeated in the foreseeable future.

This report is intended to give the reader a macro-view of the market in the combined Naples, Bonita Springs, Estero area. Buyers or Sellers who have an interest in a particular area or property should consult with Dustin for specific information on those areas or properties.


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Naples Real Estate Market Report – July 2011

For all Naples, Bonita and Estero Market Areas: Click here for a full printable version.

Listed, Pended, Closed Year to date July 2011
Listed, Pended, Closed Month of July 2011
Breakdown by Price Category Year to date July 2011

CLOSED SALES

  • Year-to-date July closed sales units are up 4% over 2010.
  • During the first seven months of 2011, all price segments showed increases in the number of closings with the exception of properties priced above $5 million, which decreased by 24% (19 closings through July 2011 vs. 25 for 2010).
  • Average and median price remained the same for the period when compared with 2010.

PENDED SALES

  • The number of pended sales year-to-date July is down 5% from the same period 2010.
  • Sales above $1 million remain strong and are up 10% for the year.

NEW LISTINGS

  • The number of new properties placed on the market in July is the lowest for the month for the past eight years.
  • Available inventory in the Naples, Bonita Springs, Estero market stands at 7,320 units (3,934 condominiums and 3,386 single family homes). This represents a 25% decline from July 2010.
  • Overall inventory currently stands at approximately an 8.5 month supply based on the number of closed sales during the past 12 months.

“The source of this real property information is the copyrighted and proprietary database compilation of Sunshine MLS, LLC. Copyright 2011 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.”