Naples, Fla. (July 17,
2015) - According to the Second Quarter 2015 Market Report released by the
Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales
within Collier County (excluding Marco Island), 60 percent of the market
experienced inventory growth, and overall sales activity remained on pace with
activity experienced in the second quarter of 2014. The report also indicated a
9 percent increase in pending sales (quarter over quarter) for homes priced
above $300,000. These factors and other statistics in the 2Q 2015 Market Report
have led broker analysts to conclude another great year is very likely.
"In this quarter last year, 44
percent of pending sales [homes under contract] were for homes in the price
category over $300,000," said Brett Brown, a Broker/Salesperson for
Premier Sotheby's International Realty. "The current report shows us that
the number of pending sales has increased to 53 percent of the market."
Brown pointed out that from 2010 to
2012 80 percent of all pending sales were composed of homes under $300,000. But
second quarter reports for 2014 and 2015 identify a shift took place in pending
sales activity to homes at higher price points within the market. And while
inventory in the under $300,000 price category decreased 24 percent in the 2Q
of 2015 (the same rate as in the 1Q of 2015); this price segment no longer
makes up the majority of the market's inventory.
Broker analysts contend that the
market was quite different 10 years ago with a lot of flipping and loose
financing going on. But the consumer and industry setting is different today.
The 2Q 2015 Market Report revealed where the differences occurred like median
closed price, where prices for homes between $300,000 and $2 million leveled
out increasing or decreasing 0 to 2 percent. Other differences revealed in the
2Q Report are a gradual increase in financed homes to 38.3 percent of the
market in June 2015, and a non-traditional market (short sales and
foreclosures) that is dwindling at just 7 percent of the market.
"Prior to 2014, prices in all
segments were going up," said Tom Bringardner, Jr., President/CEO of
Premier Commercial. "But a side-by-side comparison of overall activity for
the first six months of last year to this year signifies a different climate
where the market has reached stabilization."
According to the 2Q 2015 Market
Report, the Naples area experienced a 14 percent increase in overall median
closed price from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in
the 12-months ending 2Q of 2015. Yet this increase was driven by increases at
both ends of the market spectrum during this time period; i.e., an 11 percent
increase in homes under $300,000, and a 15 percent increase in homes $2M and
above. Incidentally, the median closed price for homes in price categories over
$300,000 and under $2M decreased 1 percent.
Pockets of market highs and lows
will continue to appear in the area, as demand and location continue to be
major market influencers. For example, the report showed an 83 percent increase
in inventory for condominiums in the $2M and above price category from 29 units
in the 2Q of 2014 to 53 units in the 2Q of 2015, and a 23 percent decrease in
condominium inventory in the Naples Beach area from 476 units in the 2Q of 2014
to 368 units in the 2Q of 2015.
Inventory for single-family homes
continued to rise in the 2Q of 2015 with a 9 percent increase from 1,964
single-family homes in the 2Q of 2014 to 2,133 single-family homes in the 2Q of
2015. Whereas the condominium market saw an 11 percent decrease in inventory
for 2Q 2015 from 1,759 condominiums in the 2Q 2014 to 1,565 condominiums in the
2Q of 2015.
The NABOR® 2Q 2015 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® 2Q 2015 sales statistics are presented in
chart format, including these overall (single-family and condominium)
findings:
- Overall pending sales decreased 4
percent from 2,949 in the 2Q of 2014 to 2,843 in the 2Q of 2015.
- Overall closed sales remained flat
with no increase or decrease reported in the 2Q of 2015.
- Closed sales for condominiums in
the $300,000 to $500,000 price category increased 38 percent from 682 in
the 2Q of 2014 to 938 in the 2Q of 2015.
- Overall median closed price
increased 14 percent from $255,000 in the 12-months ending 2Q of 2014 to
$290,000 in the 12-months ending 2Q of 2015.
- Overall inventory decreased 1
percent from 3,723 homes in the 2Q of 2014 to 3,698 homes in the 2Q of
2015.
- Overall inventory for homes in the
under $300,000 price category decreased 24 percent from 1,366 homes in the
2Q of 2014 to 1,036 homes in the 2Q of 2015.
- Inventory for single-family homes
in the $500,000 to $1M price category increased 32 percent from 456
single-family homes in the 2Q of 2014 to 604 single-family homes in the 2Q
of 2015.
- Average days on market decreased 20
percent from 94 days in the 2Q of 2014 to 75 days in the 2Q of
2015.
The NABOR® June 2015 Market Report
was also released and reflected these overall (single-family and condominium)
findings:
- Overall pending sales increased 5
percent from 840 homes in June 2014 to 882 homes in June 2015.
- Overall closed sales remained flat with
no increase or decrease reported in the 12-months ending June 2015.
- Overall median closed price
increased 14 percent from $255,000 in the 12-months ending June 2014 to
$290,000 in the 12-months ending June 2015.
- Overall inventory decreased 1
percent from 3,723 homes in June 2014 to 3,698 homes in June 2015.
- Average Days on market decreased 22
percent from 94 days in June 2014 to 73 days in June 2015.
"Overall inventory is almost
the same number as it was this time last year. That is amazing when you consider
the fact that we have had 9,850 closings over the last twelve months. Overall,
this tells you that the properties are being listed almost as fast as we are
selling them. Certainly we would like to see more listings come on the market
than the 3,698 properties that are currently listed," said Mike Hughes
NABOR President, Vice President and General Manager of Downing-Frye Realty,
Inc. "If there is a perception that inventory is dramatically shrinking,
the 2Q Market Report shows us that this observation is unfounded."
"I saw a lot more locals
selling and buying homes in the second quarter of 2015," said Steve
Barker, Advising Broker for Equity Realty, who added that market conditions are
right for this type of transition. "People are no longer underwater in
their homes and are confident it's a good time to sell and move into a new
community."
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