NAPLES, FL (August 16, 2013) -
The Naples area condominium market has rebounded with full force as evidenced
in a July 2013 report released by the Naples Area Board of REALTORS® (NABOR®),
which showed a 143 percent increase in condominium closed sales in the
$300K-$500K price category and a whopping 1200 percent increase in the $2M+
price category from July 2012 compared to July 2013.
"The condominium market is
hot," according to Mike Hughes, Vice President and General Manager of
Downing-Frye Realty. "The July SunshineMLS statistics show us that
high-end buyers were out condo shopping as demonstrated by an increase in
condominium pending sales of 167 percent in the 2M+ price categoryfrom July
2012 to July 2013. Overall, if you subtract the 'bubble years' of 2004 and
2005, 2013 is looking to be one of the best years on record for home
sales."
NABOR® officials point to a
prediction made by Dr. Lawrence Yun, Chief Economist at the National
Association of REALTORS®, who stated at the 2011 NABOR® Economic Summit that a
sense of urgency would drive the market in 2013.
"His prediction has become
reality," said Steve Barker, Advising Broker for Equity Realty, who
explains, "The SunshineMLS statistics show that the inventory is
decreasing and the median home price is increasing. This creates a market where
buyers are afraid there won't be anything left in their price range if they do
not buy now. They are looking for homes in a limited inventory and prices are
on the rise."
NABOR®, which tracks home
listings and sales within Collier County (excluding Marco Island), released its
July monthly report which provides annual comparisons of single-family home and
condominium sales (via the SunshineMLS), price ranges, and geographic
segmentation. It also includes an overall market summary. Statistics worthy of
attention in this report include:
- Overall closed sales increased by double digits in all but the $0-$300K category in the 12-months ending July 2013. Closed sales in the $300K-$500K market increased 24 percent from 1,196 in the 12-months ending July 2012 to 1,608 in the 12-months ending July 2013. Closed sales in the $500K-$1M market increased by 26 percent from 906 in the 12-months ending July 2012 to 1,141 in the 12-months ending July 2013. Closed sales in the $1M-$2M market increased by 19 percent from 412 in the 12-months ending July 2012 to 492 in the 12-months ending July 2013. And closed sales in the $2M and above market increased by 33 percent from July 2012 in the 12-months ending July 2012 to 281 in the 12-months ending July 2013.
- Pending sales increased by double digits in all but the $0-$300K category in the 12-months ending July 2013. Pending sales in the $300K-$500K market increased 33 percent from 1431 in the 12-months ending July 2012 to 1907 in the 12-months ending July 2013. Pending sales in the $500K-$1M market increased by 19 percent from 1078 in the 12-months ending July 2012 to 1287 in the 12-months ending July 2013. Pending sales in the $1M-$2M market increased by 25 percent from 462 in the 12-months ending July 2012 to 576 in the 12-months ending July 2013. And pending sales in the $2M and above market increased by 22 percent from 276 in the 12-months ending July 2012 to 337 in the 12-months ending July 2013.
- The overall market median closed price increased 19% percent from $190,000 to $226,000, 12-month ending July 2013.
- The overall average days on market decreased 41 percent in the $2M and above category from 403 days to 238 days, July 2012 compared to July 2013 and 31 percent in the $1M-$2M category from 271 days to 186 days, July 2012 compared to July 2013.
- The median closed price for condominiums in the $2M and above category increased 36 percent from $2,650,000 in July 2012 to $3,600,000 in July 2013.
- Condominium inventory decreased
by 23 percent from 3,299 available units in July 2012 to 2,534 units in
July 2013.
John Steinwand, President of
Naples Realty Services, suggested two possible contributing factors for the
increase in condo demand:
- The stock market's performance
has helped Baby Boomers recover investment losses and, in turn, this is
helping them make the decision to sell their homes up north and purchase
property in Florida,
- Homeowners who lost their homes
in the recession and became local renters are now qualifying for new home
loans.