Let's
Talk Hot Off the Press...
Condominiums an Affordable Option in Naples Market
Naples,
Fla. (November
21, 2014) - As buyers seek an opportunity to own a
home in Naples,
condominiums continue to be an affordable option. Condominium
median closed prices
increased only 9 percent from $198,000 to $215,000, which is
below the overall
median closed price of $265,000 in the 12-months ending October 2014.
In comparison, single
family homes experienced a 21 percent increase in the median
closed price from
$280,000 to $340,000 in the same time period according to an October
2014 report released
by the Naples Area Board of REALTORS® (NABOR®), which tracks
home listings and
sales within Collier County (excluding Marco Island).
Most of the sales
activity in the Naples condominium market is in the $0-$300,000 category with
3,483 closed sales recorded in the 12-months ending October 2014. Compared to
the sales activity for the single family home market, which had 1,986 closed
sales recorded in the same $0-$300,000 category in the 12-months ending October
2014, condominium sales in Naples are stronger.
"In October 2013
the difference between the median closed price of condos and single family
homes was $82,000 compared to October 2014 when the difference was
$125,000," said Phil Wood, President & CEO of John R. Wood Properties.
Mr. Wood's comparison
shows median closed prices for condominiums did not increase as fast as median
closed prices for single family homes. Yet inventory for both types of homes in
the $0-$300,000 category continued to deplete in October 2014 with a 22 percent
decrease in single family homes and 27 percent decrease in condominiums
compared to October 2013.
The report also
indicated cash sales remained strong with cash sales growing to 67 percent of
overall home sale transactions in October, as noted by Kathy Zorn,
Broker/Owner, Florida Home Realty, who believes is due, in part, to the
tightening of mortgage requirements. "Nationally, the cash sales rate is
at about 33 percent", she said, "Cash offers in our area put buyers
in a stronger position than buyers using conventional financing."
As for the short sale
or foreclosure market, the October report showed only 18 short sale
transactions and 73 foreclosed property sales taking place in October 2014.
"Traditional
sales accounted for 87 percent of all reported transactions in October 2014,
which is an indicator of a strong housing market in the Naples area," said
Carmen Isbely Vasquez, Owner/Broker of US Prime Realty.
The NABOR® October
2014 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® October 2014 sales statistics
are presented in chart format, including these overall (single-family and
condominium) findings:
· Overall median closed
price increased 13 percent from $235,000 in the 12-months ending October 2013
to $265,000 in the 12-months ending October 2014.
· Overall pending sales
increased 9 percent from 839 in October 2013 compared to 911 in October 2014.
· Pending sales for
condominiums in the $1 million-$2 million category increased 211 percent from 9
in October 2013 compared to 28 in October 2014.
· Overall closed sales
decreased 2 percent from 9,912 in the 12-months ending 2013 to 9,667 in the
12-months ending 2014.
· Closed sales for
single family homes in the $2 million and above category increased 31 percent
from 210 in the 12-months ending October 2013 to 275 in the 12-month ending
2014.
· Median closed price
increased 13 percent from $235,000 in the 12-months ending October 2013 to
$265,000 in the 12-months ending October 2014.
· Overall median closed
price for homes in the $1 million-$2 million and $2 million and above
categories both decreased 3 percent.
· Overall inventory
decreased 10 percent from 4,376 homes in October 2013 compared to 3,939 homes
in October 2014.
· Average days on
market for October is at 73.
The October reports
showed signs our winter residents and visitors returned early this year:
Overall pending sales rose 10 percent from September 2014 (829) to October 2014
(911), and inventory also increased from 3,702 units available in September
2014 to 3,929 units available in October 2014. Pending sales are driving the
market into what is anticipated to be a strong fourth quarter according to
NABOR®.
"We're seeing
the demand for homes in the Naples beach area start to rise again too,"
said Steve Barker, Advising Broker for Equity Realty, who added that the report
showed pending sales for both condominiums and single family homes rose over
40% in this geographic area for October 2014 compared to October 2013.
Several broker
analysts agreed with incoming NABOR® President Mike Hughes, Vice President and
General Manager of Downing-Frye Realty, who remarked that Naples is now an
exclusive luxury destination similar to Aspen and Hilton Head, and predicts the
area is poised to see more price appreciation, especially in the luxury single
family home market.
With the majority of
inventory in the $0-$300,000 category located in the condominium market, buyers
looking to own a piece of paradise are encouraged to seek guidance from a local
REALTOR®, who can help them navigate through the 1,800 available condominiums
for sale-of which half are priced under $300,000-and find a perfect fit.
As
always if you have any questions please feel free to contact me by calling
239.404.7787 or by e-mail at Michelle@NaplesHomeSweetHome.com I have
placed below the full report as well.
I hope
you and your friends & family have a fantastic Thanksgiving,
Michelle
Berkshire Hathaway
HomeServices Florida Realty
Cellular Phone 239.404.7787
Michelle J. DeNomme, REALTOR, GRI
Office: 239.659.2400
E-Fax Number: 239.236.5550
Twitter
Me: DeNommeRealtor
