Naples, Fla. (January 16, 2015)
- Overall closed sales for homes in every price category above $300,000
saw double digit increases in 2014. As a result, broker analysts contend that
2014 was one of the best years in Naples real estate history for closed
sales. According to the Annual 2014 Market Report released by the Naples Area
Board of REALTORS® (NABOR®), which tracks home listings and sales within
Collier County (excluding Marco Island), inventory increased 16 percent for
homes in the $2 million and above price category from 394 in 2013 to 457 in
2014. The report also showed that overall closed sales in this luxury market
price category increased 33 percent from 299 homes in 2013 to 399 homes in
2014, yet the overall median home price in this price category held steady
year over year at $2,950,000.
"Even though the report
shows that the overall inventory decreased 6 percent in 2014, it increased in
several price categories including the very high end. Interestingly however,
and as indicated by the report, prices for luxury homes held steady. There
appears to be clear indication of price stabilization," said Coco
Waldenmayer, managing broker at John R. Wood Properties.
"Yes. That's true,"
commented Cindy Carroll, SRA, with the real estate appraisal and consultancy
firm of Carroll & Carroll, Inc. "The market in general is
trending toward a balance of supply and demand and value
stabilization. Some market sectors may have reached their peak for this
economic cycle in the fall of 2014 while other areas will demonstrate
continued value growth in 2015."
Buyers looking for single
family homes in 2015 will be pleased, as the report indicated a 3 percent
increase in inventory of single family homes from 2,260 in 2013 to 2,321 in
2014. As noted by Rick Fioretti, NABOR® President Elect and Broker Associate
with Berkshire Hathaway Home Services Florida Realty, this may be due to
what the industry calls a "sleeping inventory," or sellers who were
unaware of the market's improvement and upon exploring their options with a
REALTOR® decided to place their home on the market for sale.
While closed sales stood firm
at a 3 percent increase for condominiums in 2014, inventory in the
condominium market did not fare as well as single family home inventory in
2014. The report indicated a 14 percent decrease in condominium inventory
from 2,354 in 2013 to 2,030 in 2014. The only price category that experienced
an increase in inventory was the $300,000 to $500,000 price category. It
increased 13 percent from 408 condominiums in 2013 to 462 condominiums in
2014. Broker analysts indicate that this increase in inventory may be due, in
part, to bracket creep, which is what happens when a home's value increases to
a point that it surpasses its current category's threshold and advances into
the price category above it. The fact that inventory for condominiums in the
$300,000 and below price category decreased 23 percent is further evidence of
the bracket creep.
The NABOR® Annual 2014 Market
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® Annual 2014 sales statistics are
presented in chart format, including these overall (single-family and
condominium) findings:
As noted by Bill Coffey, Broker
Manager of Amerivest Realty Naples, the gain in Naples housing market's
momentum is evident when you compare quarterly sales activity for 2014.
Closed sales increased 5 percent in the first quarter, but then fell 4 and 11
percent respectively during the second and third quarters. But in the fourth
quarter, sales jumped 9 percent. This increase is a welcome sign and
indicates consumer confidence in the Naples area housing market.
Industry predictions of a
self-correcting housing market have come true. A return to a balanced housing
market can be seen in the NABOR® Annual 2014 Market Report because, even
though sales increased by double digits for homes above $300,000, the median home
price did not shift substantially.
To view the entire report, visit www.NaplesArea.com
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Friday, January 16, 2015
Luxury Market Gains Momentum in 2014
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