What a far cry from the “lazy days of summer”! The Naples market has been performing at a speed that has left many buyers stunned! Some properties are going under offer in days and others are being taken off the market to be renovated in order to attract a larger pool of buyers in time for “season”.
A year ago the under $ 300,000 property category was red hot with investors largely buying up entry level stock. Now buyers from every corner are back in the market as the July 2013 figures indicate closed sales increased by 24 percent in the $ 300-$500K category and 26 percent in the $ 500K-$1Million category as compared to one year ago.
Another big shift in our market ; the increased number of condominium sales where pending sales in the $2 Million category rose 167 percent from July 2012 to July 2013. Second home purchasers, foreign buyers and investors are all now equally represented given that sales in each price category has increased over the past twelve months. With financing options available and improvements in the stock markets, buyer confidence has swelled. The effect of all this hoopla has placed extreme pressure on the inventory of available properties for purchase.
Inventory has been the hot topic in Naples since the beginning of 2013. Buyer demand has eclipsed the supply and at time of press the entire Naples area is functioning with a three month supply of inventory. Within the popular beach areas inventory numbers dip even further to represent a one to two month supply. With the beginning of the buying season upon us and the current scarcity figures we can begin to speculate that prices will begin to rise.
When comparing closed sales to the original asking price we have witnessed since October 2012 an increase in the overall achieved sales price. Particularly since May 2013 sellers have achieved upwards of 93% of the asking price of their property. Given the lack of inventory and strong buyer demand, price negotiations will likely flat line unless a significant number of new properties enter the market. Within the beach areas, prices in Olde Naples lead the way with the median price hovering over $800,000 and the remaining neighborhoods such as The Moorings, Pelican Bay and Vanderbilt beach achieving a median price of $ 600,000.
With momentum at an all time high and supply at record lows the market is in need of some relief. New developments throughout Naples have absorbed some demand yet given the variety of purchasers in our area and their affinity for specific locations and designs the re-sale market is still the first choice among many buyers. Sellers will be capitalizing on buyer demand and given the pace of sales this summer we expect that “seasonal visitors” will be arriving in time for Halloween. Let’s just hope there are enough properties to go around as the last thing people like is arrive at a party in time to hear that they just ran out of punch!
*Graphs and statistics as reported by the Naples Area Board of Realtors and SouthWest Florida Multiple Listing Service.