The Naples Market remains strong despite the economy, the drop in the Euro and the concern over the oil spill. Pending sales for June were up 3% despite the bad news and are up 24% for the year. Although closed sales were down 1% they are up 40% for the year. This is indeed good news for both buyers and sellers. As always, the low end continues to the lead the way. Properties under $300,000 continue to dominate the market at 46% of the listings and 72% of the sales. The good news is that the one million and above price range showed the greatest increase in pending and closed sales with pending sales up 38% and closed sales up 48% for the second quarter. Distressed sales continue to dominate the market with foreclosures and short sales making up 40% of the total sales in June. According to a report by Irvine California based Realty Trac there were 6,251 foreclosure filings in the Naples-Marco Island market. This was 13th in the nation and is down less than 1% from a year ago. Both median and average sales prices continue to hold steady although they show some signs of drifting up. The average sales price under $500,000 has increased by 7% since the first of the year. The question then becomes, "is this a real increase that will spread across the board, or just one at the low end?" I expect it is the latter as I don´t expect any significant increases as long as the market continues to be dominated by distressed sales. The real question is what does the future hold? As I indicated above, I don´t expect to see any significant increases in the near term. We still have a lot of inventory on the market, the distressed problem to work through, a very sluggish economy, a depressed Euro and the uncertainty of the oil spill in the minds of potential buyers. (It is worth noting that the Gulf Loop Current is over 80 miles off the coast of Naples and there is less than a 1% chance of oil hitting our beaches. In the unlikely event that it does, the county is prepared to ensure that it does not become a disaster.) In conclusion, I believe that if you are looking to buy, now is a really good time. There are great values in every community and at every price point and interest rates are extremely low. However my feeling is that if you wait, you may be able to buy the same number of square feet at a comparable price, however those homes in really great condition, that have great amenities, a nice view and a really good floor plan, will be gone If you are looking to sell, are willing to price at today´s prices and your home shows well, then by all means put it on the market. It will sell as evidenced by the upswing we have seen over the last 27 months. If you feel that your home is worth more, then wait. However, remember that it is going to take three or four years for prices to recover, and then they still may not be at the 2005/2006 levels. And don´t forget your carrying costs, i.e. taxes, insurance, HOAs and condo fees, utilities, etc, as these costs can be significant. I hope the above has been helpful and informative. If I can be of any assistance, please let me know. Best Regards Barry Brown Associate Broker Coldwell Banker 239-598-2257 239-298-0522 barry4homes@aol.com You can view the current month’s market report every month on my web site, www.barry4homes.net, by clicking on the This report discusses the overall
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