Thursday, October 20, 2016

Let’s Talk HOT Off the Press…
3Q Prices Hold Steady with Inventory on the Rise

Naples, Fla. (October 20, 2016) - The Naples Area Board of REALTORS® 
(NABOR®) released its Third Quarter 2016 Market Report, which tracks 
home listings and sales within Collier County (excluding Marco Island), 
and it showed overall inventory increased 40 percent with little change 
in median closed prices. In fact, as reflected in the report, the overall 
median closed price for homes on the market increased only 4 percent 
to $312,000 in the 3Q of 2016 from $300,000 in the 3Q of 2015. This 
was predominately driven by a 9 percent increase in the $300,000 
and below price category. Comparatively, all other price categories 
saw a zero or negative price adjustment.

Upon reviewing the report, NABOR® President and Broker Associate 
with Berkshire Hathaway Home Services Florida Realty Rick Fioretti 
said, "a quick analysis of price behavior since December of 2015 
hows median closed prices leveled out." Several broker experts 
agreed with Fioretti, adding that the pricing trend is a natural reaction 
to the increase in inventory.

"I think we're seeing the completion of a cycle that began in 2013," said 
Cindy Carroll, SRA, with the real estate appraisal and consultancy firm 
Carroll & Carroll, Inc. "Prices have remained relatively stable for over a 
year, and now I'm noticing more competitive value-based pricing as the 
supply increases."

Carroll remarked that her business encounters a small herd of listings 
that are still not moving, and believes ongoing increases in inventory 
over the next six months will require these sellers to adjust their value 
perceptions. "The list to sale price ratio is shrinking and this needs to 
continue if we want to compete with new home construction."

"If it's overpriced, then the property sits," said Dominic Pallini, Broker at 
Vanderbilt Realty, who went on to say that days on market decreased 
12 percent in the $2 million and above price category, but overall, there 
was a 10 percent increase in days on market. "Pricing is critical now 
more than ever."

While both pending and closed sales decreased 14 percent (quarter over quarter), 
inventory continued to rise in all areas of Collier County during the 3Q of 2016. 
Overall, inventory rose 40 percent to 5,044 homes in the 3Q of 2016 from 3,606 
homes in the 3Q of 2015; with a marked increase in Central Naples, which rose 
49 percent to 608 homes in the 3Q of 2016 from 408 homes in the 3Q of 2015.

Inventory increases in the condominium market were also remarkable during the 
third quarter of 2016. This home type experienced a 53 percent increase in 
inventory to 2,375 condominiums in the 3Q of 2016 from 1,557 condominiums 
in the 3Q of 2015.

The NABOR® 3Q 2016 Market 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® 3Q 2016 sales statistics are presented in chart format, including 
these overall (single-family and condominium) findings:

"Only 23 percent of homes for sale under $300,000 are single-family 
residences," said Brenda Fioretti, Managing Broker at Berkshire Hathaway 
HomeServices Florida Realty. "When it's priced right, it sells."

NABOR® also released its September 2016 Market Report, which showed 
activity in September 2016 compared to activity in September 2015 was a mixed 
bag. For example, while overall pending and closed sales decreased 12 and 
19 percent, respectively, median closed prices held steady or decreased in 
73 percent of the market in September. In fact, median closed prices for all 
homes above $500,000 decreased, with a 12 percent decrease occurring in 
the $2 million and over price category.

"While this year's summer activity at the high end was no match to last year's 
'banner year' pace, we have started to experience a slight uptick in interest and 
inquiries this month when compared to last month," said Richard Prebish, II, 
Broker Associate at William Raveis Real Estate. "I anticipate there will be 
some more great opportunities at reasonable prices being introduced to the 
high end marketplace in the coming months."

The NABOR® September 2016 sales statistics are also presented in 
chart format, including these overall (single-family and condominium) findings:

If you are weighing the pros and cons of buying or selling a home in the coming months, let me guide you through the process. I can provide you with a market comparison and determine a fair and reasonable listing price.
If you are a Buyer I can also identify properties best suited for your needs and negotiate a purchase price that fits your criteria and budget. Discover more by contacting me today!

I have sent along the full Market Report for your review below. 
Please feel free to contact me with any questions you may have by contacting me by e-mail at  or by calling 239.4047787.

Let's Talk soon!

Michelle J. DeNomme, REALTOR, GRI
Cellular Phone I  239.404.7787
Berkshire Hathaway HomeServices Florida Realty
Office: 239.659.2400
E-Fax Number: 239.236.5550
Twitter Me: DeNommeRealtor

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

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