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Despite New Housing Starts Real Estate Inventory Is Going To Tighten Further

Posted on Tuesday, April 16, 2013

Readers of this blog will be well aware of the decreasing real estate inventories in Naples, Florida and the resulting impacts on buyers and sellers. This morning inventory stands at a reduced 6.68 months and we expect things to tighten further adding to the buyer’s challenge of finding that perfect property and boosting seller confidence (Sunshine MLS data for the “All Naples Area” shows 5110 properties for sale and 9178 sold in the last twelve months).
We should see more supply side actions like spec homes and new constructions – and we are but the lead time for these activities is several months in the future and the market is eating up properties faster than the build rate.
Bloomberg reports “Housing starts increased to a 930,000 annualized pace, the second-strongest in more than four years, from a 917,000 pace in February, according to the median estimate of 78 economists surveyed by Bloomberg. Other figures may show factory production rose in March and consumer prices were little changed.” True on the national scale I am sure but new properties are not arriving fast enough in Naples.
We see a further tightening of the Naples market. Why? More”pendings” and fewer “listings” equals a tighter market. According to the Sunshine MLS this morning for the All Naples Area pending sales are increasing at an increasing rate. Our local average is 886 pending sales per month but March saw another significant jump to 1400+ pending sales per month. When these pending sales close in the coming months (and most will) inventory should drop further.
What’s to replace the sold property? Well, new listings but they are decreasing. At the same time new listings per month have returned to their average of 1,211 after sharply falling in February and again in March.
So What? Well buyers are going to find fewer and fewer places they like and prices will be rising in the face of scarcity. Eventually demand may slow unless supply picks up. Sellers will rejoice in the strengthening market as will spec home builders. What a change form two years ago.
Let us help you find property in this scarce market or help you price your property for sale in these times. Give us a call or email us and let’s get started.
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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 Naples homes for sale and Naples real estate for sale on the 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
Facebook: NaplesBestAddresses