July Naples Market Report

July Naples Market Report


July Naples Market Report
Brought To You By Barry Brown
Broker Associate
Coldwell Banker Residential Real Estate
239-298-0522

Six months are in the books and while the first five were positive, the July Naples Market Report shows that June was down in just about every respect.  Sales, inventory and sales prices were all down from last month raising the question, is this an aberration or the start of a trend?

Closed sales were down 11.0% for the month, but are still up 10.2% for the year. This in not unexpected since June has been lower than May four out of the last five years. The good news is that 2017 is running 10.0% higher than 2016 and out of the last 11 years only 2013, 2014 and 2015 have been higher.

Units for sale dropped from 5,404 to 5,189 which again was to be expected as this June has been lower than May for the last five years. At the same time, the number of months of inventory continues to hover around a six month supply which is good as this an indication of a neutral market, i.e. neither a seller’s or buyer’s market.  

What was not expected was the June drop in sales prices for two consecutive months. The average sales price dropped in June from $681,469 to $536,358 or 21.3% and the median sales price dropped from $349,950 to $321,500 or 8.1%. This is also reflected in the average price per square foot which dropped from $268 to $240 or 6.3%.

When we look at sales price comparisons by price rage and housing type we see the same type of results with loses outnumbering gains by 2 to 1.

July Naples Market Report - Naples Table of Pct Chage for Sales by Price Range and Housing Type

We start to get a better picture when we look at housing types within specific communities, but again this is mixed and is not perfect, as it does not consider view, updates, location, furnished, etc.

On a positive note the Sales to List Price Ratio continues to hover around 96% which means that sellers are getting pretty much what they expect when they sell.   At the same time, prices continue to show positive appreciation with the median sales price for the first half of the year up 5.0% over full year 2016.

The number of days that it takes homes to sell continues to creep up and is now at 69 days. It is well above the mid 30’s we experienced in 2015 but a long way below the 150’s we saw in 2007 and 2008. It is also interesting to note that median list price has increased over the last two months while the median sales price has decreased over the same period. The question is: are agents overpricing to get a listing or do sellers believe their home is worth more and are holding firm on their prices?

As always, the question is “What does this mean for the future?”.   Are the drop in prices over the last two months an aberration or the start of a trend?

As I have indicated in the past, I would normally be bullish given the upswing in the stock market and the promise of lower corporate taxes, both of which bode well for the economy and the creation of jobs.   However the ongoing viciousness of the political climate is of concern and in my opinion is definitely affecting the market. Given that we are seeing both negative and positive trends I am still cautiously optimistic, however I would like to hedge and see what the next month or two brings.

I hope my July Naples Market Report has been helpful and informative. If I can be of any assistance, please let me know.

Best Regards,

Barry

Barry L. Brown
Broker Associate
Coldwell Banker Residential Real Estate
550 Fifth Avenue South
Naples, Florida 34112
239-298-0522
www.barry4homes.net
barry4homes@aol.com

P.S. If you are thinking of putting your home on the market and would like a no obligation Comparative Market Analysis, please let me know. I would love the opportunity to earn your business. If you know of anybody who is looking to buy or sell, feel free to share my July Naples Market Report with them. The opinions are those of the author and should not be considered to be a specific recommendation. They along with the data are presented to help you make an informed decision. The source of the data is the Sunshine MLS and Naples Board of Realtors.

 

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