Posted on Wednesday, November 23, 2011
Naples Area Board of Realtors (NABOR) reports on real estate trends in the Naples, Florida area. Their September data showed a 15%+ increase in trailing twelve month prices and last week their October data showed an 18%+ increase in trailing twelve month prices. Results by individual neighborhood differ but the overall figures are impressive.
We also learned from reports from CNN and Money Magazine … “Last year the economic forecasting firm Fiserv predicted that home values would sink around 5% in 2011, and that prices in three-quarters of the nation’s major metro areas would fall. The bad news is, the firm wasn’t that far off the mark. The good news: In the coming year, Fiserv thinks 95% of the 384 metro areas it tracks will see prices rise.”
All this looks pretty good but keep your eye on inventory. Our thoughts are the real estate market like all markets is driven by supply and demand, and supply or “inventory” is in pretty good shape right now – far better than a year or two ago. Inventory is where foreclosed properties from banks will show up, inventory is where seller’s re-entering the market returning after “pulling” listings will show up and inventory is where new construction will show up. If inventory can remain at one year supply levels there is some hope for price support.
What does inventory look like this morning? As of the writing of this article there are 6,408 properties for sale in the Naples area in the Sunshine MLS. In the last twelve months 8,254 properties have sold – so inventory in the Sunshine MLS stands at 9.3 months. Not bad.
We think there is big improvement in inventory levels and price support in Naples – what are your thoughts?
No legal or investment advice or suggestions are being given in this Blog. Actual real estate price and sales results are subject to market forces and are not completely predictable. Please consult a lawyer or investment advisor for such legal and investment advice. The writings of this Blog are intended for the sole use of our clients.
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.