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Let's Talk Hot Off The Press...
February
Market Activity Strong,
Seasonal Outlook Good!
Naples, Fla. (March
14, 2014) - Over 40 contracts were initiated every day on average in
February making it a busy month for Collier County REALTORS® according to
the February 2014 Market Report released by the Naples Area Board of
REALTORS® (NABOR®), which tracks home listings and sales within Collier
County (excluding Marco Island). Overall pending and closed sales
increased 5 percent each from 10,629 pending sales in the 12-months ending
February 2013 to 11,151 in the 12-months ending February 2014, and 9,308
closed sales in the 12-months ending February 2013 to 9,735 in the
12-months ending February 2014.
Overall closed sales
decreased 5 percent in the $300,000 and below price segment, which
encompasses almost two-thirds of the existing home sales market, from 6,149
in the 12-months ending February 2013 to 5,823 in the 12-months ending
February 2014. Conversely, the February report showed a 20 percent
increase in closed sales for all homes over $300,000 from 3,159 closed
sales in the 12-months ending February 2013 to 3,912 for the 12-months
ending February 2014. The largest decrease in inventory continues to
be in the $300,000 and below price segment which saw a 20 percent decrease
versus a 12 percent decrease in inventory for all other price segments
combined.
"Homes under
$300,000 made up 66 percent of the market in 2013 but we are starting to
see that figure decline in 2014," said Pat Pitocchi, NABOR® president
and corporate trainer at Downing-Frye Realty. "Two factors are
driving this change: median closed prices are going up and pushing these
homes into a higher price category; and non-traditional sales [short sales
and foreclosures] are disappearing."
As the report
demonstrated, of the 670 homes that closed in February 2014, only 82 were
non-traditional sales. That's a 10 percent decrease from a year ago
when 687 homes closed in February 2013, of which 152 were
non-traditional.
The report continued
to show the majority of activity occurred on either end of the market with
the middle market showing stability. Overall median closed prices for
homes $300,000 and below increased 14 percent from $145,000 in the
12-months ending February 2013 to $165,000 for the 12-months ending
February 2014, while overall median closed prices for homes $2 million and
above increased 7 percent from $2,805,000 in the 12-months ending February
2013 to $3,000,000 in the 12-months ending February 2014. Yet for
homes priced in between these two price categories (i.e., $300,000 - $2
million) the report shows virtually no change in overall median closed
prices from the 12-months ending February 2013 to the 12-months ending
February 2014.
The NABOR® 2014
February 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® February
2014 sales statistics are presented in chart format, including these
overall (single-family and condominium) findings:
- Closed sales for
condominiums in the $2 million and above price category increased 102
percent from 55 in the 12-months ending February 2013 to 111 in the
12-months ending February 2014.
- Median home prices in the
under $300,000 single-family home market rose 15 percent from $155,000
in the 12-months ending February 2013 to $179,000 in the 12-months
ending February 2014.
- Overall Days on Market is
at 94 for February 2014.
- Overall median closed price
increased 17 percent from $210,000 in the 12-months ending February
2013 to $245,000 in the 12-months ending February 2014.
- Overall inventory decreased
by 15 percent from 5,443 properties in February 2013 to 4,633 properties
in February 2014.
- Pending sales in the
condominium market rose 6 percent from 5,356 properties in the
12-months ending February 2013 to 5,696 properties in the 12-months
ending February 2014.
Steve Barker, Advising Broker for Equity Realty,
and Carmen Vasquez, owner/broker of US Prime Realty, agree and contend that
the 2014 season has been one of the busiest ever.
"We are experiencing multiple offer
situations for homes priced on either end of the market," said
Vasquez. Barker added, "People are not getting a second chance
to take a second look at homes for sale in the lower and upper price ranges
because that's where the majority of sales activity is happening right now.
Buyers must make quick decisions to avoid losing the home they want."
Mike Hughes, Vice President and General Manager of
Downing-Frye Realty summed up real estate activity by stating, "This
season is turning out to be good for both buyers and sellers.
Basically what the report is telling us is that inventory remains tight
and pricing steady. As a result, buyers must act fast. The home
you look at today may likely be gone tomorrow, so it's important to have a
professional REALTOR® partner on your side to help you identify value;
negotiate a fair price, terms, date of possession and often the inclusion
or exclusion of repairs and furnishings or equipment; and avoid missing a
great opportunity."
As always if you have any questions regarding the
Collier County Market please feel free to contact me by calling
239.404.7787 or by e-mail.
I hope you have a fantastic weekend!
Michelle
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