Naples, Fla. (September
19, 2014) - "We can't sell what's not there," was a phrase
repeated among several brokers as they analyzed a recent report tracking
August home sales activity released by the Naples Area Board of REALTORS®
(NABOR®), which tracks home listings and sales within Collier County
(excluding Marco Island). Overall inventory dropped 20 percent in the
$300,000 and below price category in August 2014 compared to August 2013.
The median price in this price category rose 13 percent as a result. The
pending and closed sales dropped double digits in the same price segment
August 2014 compared to August 2013, factors that illustrate the economic
law of supply and demand.
Low inventory was also a
strong factor in the decrease of pending and closed sales activity in the
Naples Beach area condominium market. This much-sought after location
experienced a 28 percent decrease in available inventory from 571
condominiums to 409 condominiums in August 2014 compared to August 2013.
The low inventory contributed to the 31 percent decrease in pending sales
and 23 percent decrease in closed sales of condominiums in this area. And,
the median closed price in this area increased 7 percent from $495,000 in
the 12-months ending August 2013 to $530,000 in the 12-month ending August
"I thought we had seen
the top of this economic cycle a year ago," said Cindy Carroll, SRA,
with the real estate appraisal and consultancy firm Carroll & Carroll,
Inc., referring to unpredictable activity in certain areas within Collier
County. "Our local market is extremely diverse. For example, in
Pelican Bay there is a three month inventory of single family homes for
sale, but if you are looking to buy a Crayton Road area condo in the $2 to
$3 million price range, you'd better be ready with a checkbook because
there are only two listings."
Brenda Fioretti, Managing
Broker at Berkshire Hathaway HomeServices Florida Realty, pointed out that
the report also showed financed sales had increased 30 percent since NABOR®
starting tracking overall cash versus conventional (financed) sales in
January 2013. "We are starting to see an increase in the number of
homes being financed by qualified buyers."
The NABOR® August 2014 Report
provides comparisons of single-family home and condominium sales (via the
Southwest Florida MLS), price ranges, and geographic segmentation and
includes an overall market summary. The NABOR® August 2014 sales statistics
are presented in chart format, including these overall (single-family and
sales decreased 11 percent from 890 homes in August 2013 to 795 homes
in August 2014.
closed sales decreased 2 percent from 9,798 homes in the 12-months
ending August 2013 to 9,613 homes in the 12-months ending August 2014.
median closed price increased 14 percent from $228,000 in 12-months
ending August 2013 to $260,000 in the 12-months ending August 2014.
inventory decreased 8 percent from 3,875 in August 2013 to 3,579 in
on market were 83 for August 2014.
for single family homes increased 1 percent from 1,894 homes in August
2013 to 1,904 homes in August 2014. The largest increase was in the
$300,000 - $500,000 price category, which saw a 12 percent increase.
for condominiums decreased 1 percent from 5,137 condominiums in August
2013 to 5,066 condominiums in August 2014.
Several brokers agreed with
Phil Wood, President & CEO of John R. Wood Realtors, who said,
"We'll have to see if the low inventory will continue to be a trend in
the coming months."
The August report reflects
inconsistent activity across all geographic areas making it difficult to
predict whether the low inventory will continue to affect pending and
closed sales moving forward. Additionally, another factor not tracked in
the report but one that impacts pending homes sales is new construction,
which continues to swell in the area. However, the rising inventory of
newly constructed homes will not help those buyers looking for homes in the
under $300,000 price category because there are few available.
"This is a very diverse
market with a diminishing inventory in the reasonably priced housing
sector," said NABOR® President and Corporate Trainer at Downing-Frye
Realty Pat Pitocchi. "The increase in median closed price continues to
be driven by the under $300,000 market, which comprises nearly 65 percent
of existing home inventory. In August, the under $300,000 price segment's
overall median closed price increased 13 percent, while all other price
categories moved slightly up or down. It's the only area of the market
whose median closed price behavior is predictable."
With the complexity of real
estate transactions today, compounded by varying price pockets within the
diverse Naples geographic areas and the speed at which you need to be ready
to make a move, using a Naples REALTOR® to buy or sell a home is the best
way to know you have a guide that understands what's best for you. A Naples
REALTOR® has the expertise and professionalism to help you make the smartest
move at the right time.