One of our favorite quotes at Naples Meridian is “There is blink luck, dumb luck and then there’s get up every morning at 5:30 and sweat the details luck. Few people actually stumble into wealth. It takes persistence, tenacity and a tireless work ethic. In the end, luck has little to do with success. It takes experience and hard work. Pure and simple. SmithBarney Citigroup
The players in the Naples real estate market may or may not be aware of this poignant quote, yet it’s incredibly applicable given the market conditions that we all live in today. “Real estate is local in nature” we have all heard this statement before and some roll their eyes in disbelief as national news channels are always shouting their negative rhetoric and blind the majority of the country with statistics and updates that apply to some but not all markets. Today in Naples something remarkable is occurring and unless you are here, pounding the pavement and reading local reports you may miss it.
Real estate is extremely local in nature and the Naples real estate market continues to defy the remainder of the nation in property sales for the first part of 2012. While countless (national) market reports signal the increase of distressed properties (foreclosures and short sales) and subsequent decreases in property values, the Naples market is experiencing a surge of activity. The buying season in Naples generally takes off at the beginning of the calendar year and subsides by Easter. Therefore, comparing year on year figures at the beginning of the calendar year provides a precise snapshot of the Naples market.
First quarter results for 2012 as compared to first quarter 2011 results have been compiled by the Naples Area Board of Realtors which tracks home listings and sales within Collier County:
- Pending sales increased:14 percent $ 300,000 to $ 500,000 category, 29 percent $500,000 to $ 1 Million category and 14 percent $1 Million to $2 Million category.
- Median closed price increased 14 percent
- Overall inventory decreased 13 percent.
- The Average Days on Market for all properties decreased 3 percent.
For several months in 2011 Naples Meridian reported that the most active price range in Naples was the under $ 200,000 category. As activity levels continue to increase based on buyer demand and availability of funds; either by cash or financed options, inventory levels have decreased. The Naples beach area which in 2011 experienced little activity saw an increase of 14 percent in closed sales by the end of March 2012. Sales of single family homes rose as compared to 2011 figures and in the $ 1 million to $ 2 million category rose by 14 percent, an impressive increase given the slumber that this category experienced in much of 2011.
So what’s next? Buyers in March 2012 associated with our brokerage Downing-Frye Realty Inc continue to purchase property in droves as the email excerpt below outlines
“I have had several brokers lately ask me if our business is slowing down. My response has been that we are having one of our best years ever. Our March 2012 pending sales are up 21% over last March. We have had 300 pending sales turned in to our accounting department this month and have on the books $ 132 million in pending sales for the brokerage. It certainly doesn’t sound like we are slowing down!” Mike Hughes, General Manager
So there is very little sitting around or even gliding through the Naples market right now, instead it is incredibly exciting to witness the vast difference in pace and vibe in our local market since a year ago. Sellers and their neighbors are very encouraged to see properties selling. Buyers are enthusiastic about purchasing a home and are motivated as they are experiencing first hand that properties that are priced correctly are being sold within days or weeks and not months.
April is historically known as the month that things begin to slow down though we foresee that the momentum that has been building during the first three months of the year will carry over. Until reports that support our theory are published we will continue to rise early, sweat the details and paddle hard as Naples is always a beautiful place to call home!