Posted on Monday, April 02, 2012
This morning we took a look at first quarter results for Naples real estate – you know the first three months of 2012. The work is a little math heavy but bear with us as the facts will outline our local real estate trends. All data is from the Sunshine MLS for the all Naples area and includes all property types.
Let’s start with price trends. The first three months of buying and selling Naples real estate showed a continued up trend in price. The average sold price started under $350,000 in January and finished the quarter at over $400,000 – a whopping 14% increase in a single quarter. Wow. Readers of the blog will remember we have looked at supply-demand trends these past several months and the relatively low inventory and decent volume translated into higher prices.
What about inventory? If supply and demand is such a driver – what inventory trends do we see here in Naples real estate this morning? Inventory is still decreasing. Inventories are now less than nine months – a level we would expect continued price stability. Are banks “dumping” that shadow inventory on the market? Not so much. If they are the market is snapping up the inventory.
What about volume? Are people continuing to buy Naples real estate in the face of these rising prices? Yep. Pending sales is a leading indicator of future sales. Pending sales are properties under contract but not yet closed. A look at pending sales shows an up tick from roughly 1,000 properties per month to over 1,400. Wow, roughly a 40% increase. If most of these properties actually close then second quarter sales are off to a good start. Actual sales in the quarter showed a similar increase – moving from 550 sales per month in the beginning of the quarter to 820 at the end – 40%+ again.
Does all this positive data predict the future? Nope. We are in the heart of season for one thing, and will all this market “goodness” continue when season ends and all our seasonal folks head back up north or across the pond? We will see. If the second and third quarters show this kind of activity I will be surprised. A second consideration – we need more inventory. If we do not see more property come on the market either through folks selling their places or developers building more property then watch volumes taper off off. Never a great thing but prices may increase some more.
What does all of this mean for buyers and sellers? We are not seeing the wild markets of the early 2,000’s but Naples real estate is clearly on the up tick lately. Buyers eyeballing potential property need to understand places are selling more rapidly and if you really want that place – now may be the time to buy it or risk losing the property to another buyer. If the property is the best address for you we advise no more fence sitting on well priced, good conditioned property in good locations.
What about these sellers? Well now may be the time to have a little more good cheer. BUT, if you are not seeing some repeat visits in thirty days of your initial listing get with your Realtor and re-check your pricing, conditioning and marketing. Even a strong market requires competitively priced and marketed properties.
So it is on to the second quarter of 2012. Let’s hope for the sake of the local job market and seller’s needing to sell these strong trends continue.
Have a great day and tell us what you think?
No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA REALTOR Coldwell Banker 5th Avenue South Mobile: 239.595.3921 Email: firstname.lastname@example.org NaplesBestAddresses.com Facebook: NaplesBestAddresses Twitter @mcgoebel Naples Best Addresseses – Where The Best Address in Naples Real Estate Is Yours