March Naples Real Estate Market Report for March, 2017
March Naples Real Estate Market Report
Brought To You By Barry Brown
Coldwell Banker Residential Real Estate
Two months into the year and so far so good. Closed sales are up, the number of homes on the market is down, average and median sales prices are up and listing prices are level.
Closed sales are up for both January and February at 14.2% and 19.6% which is the first time we have seen two consecutive months of increases since mid 2015. This is remarkable considering that there are at least 50 new or existing small communities and large developments with homes under construction in Naples. And this does not count Port Royal, Olde Naples, west of 41, Naples Park, Pine Ridge Estates and Golden Gate Estates or even consider Estero or Bonita Springs. Obviously the builders are bullish on the Naples Real Estate Market.
At the end of the month there were 5,993 homes on the market which represented a drop of 487 unit or 7.5% from January, although this is still 17.3 % higher than February of last year. This is reflected in the months of inventory which also dropped form 10.0 to 9.0 months. From a seller’s standpoint, we still have a ways to go as anything over a five to six month supply is generally considered to be a buyer’s market.
The average sales price was up 1.6% over last month but down 2.8% from February of last year. However the median sales price was up 5.0% over last month and 4.5% over last year. Note that the median sales price is generally considered to be more reflective as it is not distorted by a really large or small sale.
A better picture starts to emerge when we look at prices by type or dollar range. However it is not safe to assume that the prices for individual communities are showing the same trends, as prices are very community driven. Following are the twelve month median list and sale price trends for specific property types in a number of selected communities. Again we see a much more positive picture. However, even these can be misleading as they do not reflect condition, upgrades, location, view, etc. The best way to determine what your home is worth is to get a Comparative Market Analysis from a professional Realtor.
Also interesting is that in the above communities most sellers still feel that prices are increasing, as indicated by the median sales price trends. However when we look at the asking price trends for all of Naples, they appear to have leveled out. It will be worth watching to see if these sellers continue to hold firm to their expectations.
As always the question is “What does this mean for the future?”. Normally I would 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 viciousness of the political climate makes me cautiously optimistic as many buyers are scared and and taking a wait and see attitude. Of additional concern is the rise in interest rates. The FED raised rates last week and is expected to do so twice more this year and three times next year. Although close to 60% of buyers pay cash this will have an impact.
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.
In summary, if you are looking to buy, do it now. Prices will only go up, mortgage rates are increasing and you have a nice selection to choose from. If you are looking to sell, be patient. The market is still soft and it may take longer to sell your home, but it will if priced correctly!
I hope my March Naples Real Estate Market Report has been helpful and informative. If I can be of any assistance, please let me know.
Barry L. Brown
Coldwell Banker Residential Real Estate
550 Fifth Avenue South
Naples, Florida 34112
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 March 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.