The balmy days of summer have arrived and while our beaches have cleared out and restaurants return to their normal pace of service, all of us in the real estate game are still reeling from a frantic buying season.
The April statistics as reported by the Naples Area Board of Realtors showcases the effects of a market that continues to show signs of growth ; ( April 2013-April 2014 for single family and condominium sales)
- The overall median closed price (for homes under $ 300,000) increased 13 percent from $ 149,000 to $ 168,000.
- Closed sales for all properties priced over $1 Million increased 25%
- Closed sales for single-family homes over $2 Million increased 56%
- Inventory of condominiums (under $ 2 Million) decreased 24 % and (above $2 Million) decreased 47 %
- The overall average days on market for any property in April 2014 is 93 days.
The New Season in Naples
The Naples real estate market has historically been guided by purchasers who seek to buy during the winter months when Naples is typically brimming with seasonal owners and potential purchasers. This year we noticed a major shift in purchasing patterns as the statistics above outline that the median closed price increased by 14 percent in April, a month squarely outside of “season”.
Furthermore, we crunches some numbers on our own for May 2014 and based on information from the South West Multiple Listing service we concluded the following:
From May 1- May 31, 2014 1,086 properties were sold in Naples
- 441 single family homes; 627 condominiums and townhomes and 18 manufactured homes
At time of press; June 19 2014; 3,955 properties area available for purchase in Naples
- 1906 single family homes; 1938 condominiums and townhomes and 111 manufactured homes
- Within the last 24 hours, 44 properties were sold and 55 new properties were added to the market.
The buying and selling patterns based on the above figures are indicative of a fluid market. There is a sufficient number of well-priced properties being sold at a staggering pace. Sellers are responding to buyer demand and placing their property on the market in the middle of the summer. Until this year listing a property at the beginning of summer was unheard of given the perception that “no one buys property in the summer in Naples.”
Cindy Carroll, with the real estate appraisal and consultancy firm Carrol & Carroll, Inc anticipates strong sales activity through the summer and into autumn months. She attributes continued growth based the following key indicators;
- Pending and Closed sales continue to rise
- Median closed prices continue to rise
- Days on Market for any given property is decreasing
- Inventory continues to decrease
The Northern Effect
This year we noticed a major shift in purchasing patterns as the median closed price increased by 13 percent in April, a month squarely outside of “season”. We speculate that the harsh winter experienced by most of the country resulted in visitors and buyers flocking to Naples for an extended stay. While many purchased properties, others may have been simply browsing.
Window shopping buyers this past “season” originally planned on buying while in town yet the extreme weather back home prevented them from selling their Northern property! Several of our clients will be unloading properties up north during this summer as the memory of the past winter has been the greatest motivation to make the move to Naples sooner than later.
Pent up demand from our Northern clients coupled with a record pace of recent sales creates an environment of scarcity. It is this scarcity that leads to a rise in prices. Prices increases from only a year ago have already taken place in some neighborhoods and it may be only a matter of time before all of Naples is sold at a premium.
As new construction properties begin to spur into action how will this affect the demand that is evident? (4,290 single and multi-family housing units were permitted in Collier County from 2012 to 2013 U.S. Census Bureau)
Will there be enough variety in the market for buyers to feel confident enough to purchase in the summer months?
Will our international buyers, who have yet to arrive contribute to even further inventory reductions? Or will they be turned off by the increase in prices since last year and find it difficult to purchase?
We at Naples Meridian keep our eyes and ears in tune with everything that happens in the local market and utilize the facts and figures to present our perspective on the pace of the Naples real estate market as it unfolds.
We look forward to keeping you posted!