June Naples Real Estate Market Report

June Naples Real Estate Market Report


June Naples Real Estate Market Report

June 2017

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

The 2017 season is over and is showing a measured improvement over 2016 as detailed in my June Naples Real Estate Market Report.  Sales and prices were up and inventory is down, which is not bad given the number of new homes being built.

 Sales for the first five months of the year were up 410 units or 10.5% over last year and 111 units 11.7% over last month.   This is slightly higher than 2016 and represents gains in four out of the first five months.  At the same time the number of homes on the market declined to a 5.7 month supply.  This is pretty much a neutral market that does not favor either sellers or buyers. 

 The only downside is that  the number of days that it takes home to sell continues to creep up at 61 days.  This is above the mid 30’s we experienced in 2015 but a long way below the 150’s we saw in 2007 and 2008.   One should also note that the more expensive the home, the longer it takes to sell, i.e. condos priced between $100,000 and $200,000 averaged 27 days this year while those priced above $2,000,000 averaged 105 days.  

Also of interest is that the percentage of homes sold by type closely parallels the number that are on the market., i.e. the type of home that you have has little if no bearing of whether it will sell. 

 As one would expect, the number of homes on the market also showed a slight decrease.  At 6,015 it was 202 and 465 less than April and January respectively although was still 982 units higher than May of last year.  It is worth pointing out that this is much better than 2014 when the number of homes on the market was running in 3,300 to 4,000 range and buyers were not buying because they could not find a home they liked.   At the same time new listings have shown a slight uptick, but are still 6.4% lower than 2016.  

The picture for sales prices is also positive.   Although down 0.6% from last month the median sales price is up 5.7% from May of last year and 11.2% from January while the average sales price was up 9.1% from last month, 17.2% from May of last year and up 20.2% from January.  Note that the median number is a much better indicator as the average can be easier skewed by a few expensive sales.   During the same periods the average sold price per square foot also showed positive gains although much smaller at .7% from last month, 5.9% from January and 4.7% from May of last year. 

These gains are despite the fact although the median list price was down 4.4% from January and 1.5% from May of last year.   The good news for sellers is that the sales to list price ratio is still holding strong in the 96% range. 

When we look at sales prices by housing type and price range, we start to get a little better picture with the results being mixed, but overall still positive.  Note that the mid rise percentage gains shows how numbers can easily be distorted by a single sale as with one less, the median sales price would have been $386,000 instead of $450,000 which would have resulted in the percentages being much more reflective of that market segment. 

Naples Real Estate Market Report - Table of Sales Prices by Price Range and Housing Type

It is not safe to assume that the prices for individual communities are showing the same trends, as prices in Naples are  very community driven.  Following are the twelve month median sales price trends for specific property types in a number of selected communities.  Even these can be misleading as they do not reflect condition, upgrades, floor, furnishings, location, view, etc. 

As always, the question is “What does this mean for the future?”.   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 makes me cautiously optimistic as many buyers are scared and holding back for the time being.   At this point, I don’t see any dramatic increase in sales, but still feel we will see price increases in the 5% to 10% range for the year.

I hope my June Naples Real Estate 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 June Naples Real Estate 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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