Let's Talk Hot Off the Press...
More Buyers Choose Conventional Mortgage Loans to Purchase Their Home!
Naples, Fla. (November 18, 2016) - Over 44 percent of homes purchased in October
used conventional financing methods (e.g., mortgages), according to a report released
by the Naples Area Board of REALTORS® (NABOR®) that detailed activity in the greater
Naples housing market during October 2016. The October 2016 Market Report, which
tracks home listings and sales within Collier County (excluding Marco Island), showed
a gradual - but continuous - decline in cash sales with growth in conventional sales during
the last 12 months.
In October 2015, cash sales accounted for nearly 65 percent of all homes sales in Naples,
In October 2015, cash sales accounted for nearly 65 percent of all homes sales in Naples,
whereas in October 2016, cash sales accounted for only 56 percent of all homes sales in Naples.
Interestingly, homes purchased in the $300,000 to $500,000 price category in October reflected
the highest percentage of conventional sales (60 percent) of all the price categories reported.
"Increased use of conventional mortgages in October may be an indication of increased consumer
"Increased use of conventional mortgages in October may be an indication of increased consumer
confidence coupled with a better lending environment," said Rick Fioretti, NABOR® President and
Broker Associate with Berkshire Hathaway Home Services Florida Realty. "In October 2014, only
32 percent of all home sales used conventional financing. In October 2015, conventional financing
increased to 35 percent of overall sales."
Coco Waldenmayer, a managing broker at John R. Wood Properties, added that impending interest
Coco Waldenmayer, a managing broker at John R. Wood Properties, added that impending interest
rate increases might create more urgency for people looking to finance a future home purchase.
The October 2016 Market Report showed overall pending sales decreased
The October 2016 Market Report showed overall pending sales decreased
13 percent to 702 pending sales in October 2016 from 807 pending sales in
October 2015. Interestingly, overall pending sales in the $500,000 to $1 million
price category actually increased 14 percent to 125 pending sales in October
2016 from 110 pending sales in October 2015. Likewise, pending sales of
condominiums in the $500,000 to $1 million price category increased 30 percent
to 57 condominiums in October 2016 from 44 condominiums in October 2015.
The increase in pending sales extended to the single-family home market as well,
in which both the $300,000 to $500,000 price category and $500,000 to $1 million
price category increased 3 percent.
In the closed sales category, the October 2016 Market Report showed overall closed sales decreased 7
percent to 556 closed sales in October 2016 from 601 closed sales in October 2015. However, closed
sales of condominiums in the $1 million to $2 million price category increased 80 percent to 9 condominiums
n October 2016 from 5 condominiums in October 2015. And closed sales of single-family homes in the $300,000
to $500,000 price category increased 21 percent from 120 single-family homes in October 2016 from 99
single-family homes in October 2015.
For October, the overall median closed price increased 6 percent to $320,000 in the
For October, the overall median closed price increased 6 percent to $320,000 in the
12-months ending October 2016 from $302,000 in the 12-months ending October 2015. Conversely,
he overall median closed price for homes above $300,000 did not reflect a recordable change. Homes
in the $300,000 and below price segment, which experienced a 10 percent increase to $215,000 in the
12-months ending October 2016 from $195,000 in the 12-month ending October 2015, is once again
responsible for driving the overall median closed price increase.
According to Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the
According to Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the
increase in days on market for October (15 percent) reflects a need to continue dialog about properly
pricing homes in Naples. "Even though we are selling homes in a very desirable location, when days
on market increase, one factor affecting this is overpriced properties. And because historically, inventory
increases right before season, REALTORS® need to take a bold stance now and guide home sellers to
a more realistic asking price based on today's market."
The NABOR® October 2016 Market Report provides comparisons of single-family
The NABOR® October 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® October 2016 sales statistics are presented in chart format, including
these overall (single-family and condominium) findings:
"There is less than a three-months supply of single family homes under $300,000," remarked Bill Coffey,
Broker Manager of Amerivest Realty Naples, who added that if home buyers are looking to stay within
this price range they may be better served in the condominium market, which saw a 53 percent increase
in inventory to 1,116 condominiums under $300,000 in October 2016 from 731 condominiums under
$300,000 in October 2015.
According to Kathy Zorn, broker/owner, Florida Home Realty, "The report showed six months worth
According to Kathy Zorn, broker/owner, Florida Home Realty, "The report showed six months worth
of inventory to sell. We have not seen this high a level of inventory in the month of October since 2013.
So as we move into season with this healthy level of inventory, buyers will have more options, which is
all the more reason sellers should seek guidance now from a REALTOR® who knows the local market
and can help them price their properties right."
Geographically, inventory in the Naples Beach (34102, 34103, 34108) and North Naples (34109, 34110, 34119)
Geographically, inventory in the Naples Beach (34102, 34103, 34108) and North Naples (34109, 34110, 34119)
areas increased the most in October. In the Naples Beach area, single-family home inventory rose
25 percent to 567 single-family homes in October 2016 from 454 single-family homes in October 2015,
and condominiums increased 71 percent to 655 condominiums in October 2016 from 384 condominiums in
October 2015. For North Naples, single-family home inventory rose 35 percent to 878 single-family homes in
October 2016 from 650 single-family homes in October 2015, and condominiums increased 64 percent to 734
condominiums in October 2016 from 447 condominiums in October 2015.
"There are plenty of homes to buy and sell in Naples," said Fioretti, who ends his term as NABOR®
"There are plenty of homes to buy and sell in Naples," said Fioretti, who ends his term as NABOR®
President in December. "It's going to take some time to see how the market will react to the election
and the changes in the government, but I believe the challenge we REALTORS® face in the short-term
is educating the public on market pricing. The value of a home relates to local sale prices and a realistic
price means a rapid sale."
As always if you have any questions about our market in South West Florida please feel free to contact me by calling 239.404.7787 or by e-mail at Michelle@NaplesHomeSweetHome.com.
I look forward to working with you to determine a fair and reasonable listing price when working to market and List your home and as your Buyers Realtor I can identify the properties that will best fit your criteria when negotiating a purchase price that fits your budget.
I have provided the detailed Report below for your review...
View October 2016 Market Statistics
Michelle J. DeNomme, REALTOR, GRI
Cellular Phone I 239.404.7787
E-Mail : Michelle@NaplesHomeSweetHome.com
Berkshire Hathaway HomeServices Florida Realty
Office: 239.659.2400
E-Fax Number: 239.236.5550
Website: www.NaplesHomeSweetHome.com
Twitter Me: DeNommeRealtor
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.
