Condominiums
an Affordable Option in Naples Market
Naples, Fla. (November 21, 2014) - As buyers seek an opportunity to own a
home in Naples, condominiums continue to be an affordable option.
Condominium median closed prices increased only 9 percent from $198,000 to
$215,000, which is below the overall median closed price of $265,000 in the
12-months ending October 2014. In comparison, single family homes
experienced a 21 percent increase in the median closed price from $280,000
to $340,000 in the same time period according to an October 2014 report
released by the Naples Area Board of REALTORS® (NABOR®), which tracks home
listings and sales within Collier County (excluding Marco Island).
Most of the sales activity in
the Naples condominium market is in the $0-$300,000 category with 3,483
closed sales recorded in the 12-months ending October 2014. Compared to the
sales activity for the single family home market, which had 1,986 closed
sales recorded in the same $0-$300,000 category in the 12-months ending
October 2014, condominium sales in Naples are stronger.
"In October 2013 the
difference between the median closed price of condos and single family
homes was $82,000 compared to October 2014 when the difference was
$125,000," said Phil Wood, President & CEO of John R. Wood
Properties.
Mr. Wood's comparison shows
median closed prices for condominiums did not increase as fast as median
closed prices for single family homes. Yet inventory for both types of
homes in the $0-$300,000 category continued to deplete in October 2014 with
a 22 percent decrease in single family homes and 27 percent decrease in
condominiums compared to October 2013.
The report also indicated
cash sales remained strong with cash sales growing to 67 percent of overall
home sale transactions in October, as noted by Kathy Zorn, Broker/Owner,
Florida Home Realty, who believes is due, in part, to the tightening of
mortgage requirements. "Nationally, the cash sales rate is at about 33
percent", she said, "Cash offers in our area put buyers in a
stronger position than buyers using conventional financing."
As for the short sale or
foreclosure market, the October report showed only 18 short sale
transactions and 73 foreclosed property sales taking place in October 2014.
"Traditional sales
accounted for 87 percent of all reported transactions in October 2014,
which is an indicator of a strong housing market in the Naples area,"
said Carmen Isbely Vasquez, Owner/Broker of US Prime Realty.
The NABOR® October 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® October 2014 sales
statistics are presented in chart format, including these overall
(single-family and condominium) findings:
- Overall
median closed price increased 13 percent from $235,000 in the
12-months ending October 2013 to $265,000 in the 12-months ending
October 2014.
- Overall
pending sales increased 9 percent from 839 in October 2013 compared to
911 in October 2014.
- Pending
sales for condominiums in the $1 million-$2 million category increased
211 percent from 9 in October 2013 compared to 28 in October 2014.
- Overall
closed sales decreased 2 percent from 9,912 in the 12-months ending
2013 to 9,667 in the 12-months ending 2014.
- Closed sales
for single family homes in the $2 million and above category increased
31 percent from 210 in the 12-months ending October 2013 to 275 in the
12-month ending 2014.
- Median
closed price increased 13 percent from $235,000 in the 12-months
ending October 2013 to $265,000 in the 12-months ending October 2014.
- Overall
median closed price for homes in the $1 million-$2 million and $2
million and above categories both decreased 3 percent.
- Overall
inventory decreased 10 percent from 4,376 homes in October 2013
compared to 3,939 homes in October 2014.
- Average days
on market for October is at 73.
The October reports showed
signs our winter residents and visitors returned early this year: Overall
pending sales rose 10 percent from September 2014 (829) to October 2014
(911), and inventory also increased from 3,702 units available in September
2014 to 3,929 units available in October 2014. Pending sales are driving
the market into what is anticipated to be a strong fourth quarter according
to NABOR®.
"We're seeing the demand
for homes in the Naples beach area start to rise again too," said
Steve Barker, Advising Broker for Equity Realty, who added that the report
showed pending sales for both condominiums and single family homes rose
over 40% in this geographic area for October 2014 compared to October 2013.
Several broker analysts
agreed with incoming NABOR® President Mike Hughes, Vice President and
General Manager of Downing-Frye Realty, who remarked that Naples is now an
exclusive luxury destination similar to Aspen and Hilton Head, and predicts
the area is poised to see more price appreciation, especially in the luxury
single family home market.
With the majority of
inventory in the $0-$300,000 category located in the condominium market,
buyers looking to own a piece of paradise are encouraged to seek guidance
from a local REALTOR®, who can help them navigate through the 1,800 available
condominiums for sale-of which half are priced under $300,000-and find a
perfect fit.
The Naples Area Board
of REALTORS® (NABOR®) is an established organization (Chartered in 1949)
whose members have a positive and progressive impact on the Naples Community.
NABOR® is a local board of REALTORS® and real estate professionals with a
legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of
the Florida Realtors and the National Association of REALTORS®, which is
the largest association in the United States with more than 1.3 million
members and over 1,400 local board of REALTORS® nationwide. NABOR® is
structured to provide programs and services to its membership through
various committees and the NABOR® Board of Directors, all of whose members
are non-paid volunteers.
The term REALTOR® is a
registered collective membership mark which identifies a real estate
professional who is a member of the National Association of REALTORS® and
who subscribe to its strict Code of Ethics.
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