Let's Talk... Hot Off The
Press!!!
May Real Estate Market Stays a Steady Course...
Naples,
Fla.
(June 20, 2014) - The housing market momentum continues to remain strong heading
into summer. NABOR® leaders cite four key indicators: 1) Pending sales are up;
2) Closed sales are up; 3) Median closed prices are up; and 4) Days on the
market have decreased. Activity for the 12-months ending May 31st reflects
consumer confidence in the Naples area real estate market.
In
a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks
home listings and sales within Collier County (excluding Marco Island), overall
pending sales increased 2 percent year-over-year from 10,723 to 10,905 pending
sales in the 12-months ending May 2014, overall closed sales increased 3 percent
year-over-year from 9,447 properties to 9,739 properties in the 12-months ending
May 2014, and the overall median closed price rose a comfortable 15 percent
overall year-over-year from $220,000 to $253,000 in the 12-months ending May
2014. This slow and steady growth trend contributes to the stability factor in
our local real estate market.
"May
is what Realtors consider a transitional month," said Mike Hughes, Vice
President and General Manager of Downing-Frye Realty. "Seasonal residents are
leaving town and the international visitors haven't arrived yet. It's not
surprising that overall pending and closed sales were down compared to last May
due to restricted inventory this year. But over a thousand sales took place in
May which is still quite significant."
"An
inventory shortage usually drives down pending home sales," said Glenn Ginsberg,
Broker/Owner of A Delta Realty of Naples, Inc. "For May, a 2 percent increase in
overall pending sales is very good considering inventory decreased 8 percent."
According
to the report, May's inventory was the lowest it's been since NABOR® started
tracking activity in 2007. But the decrease is mainly in the condominium market
where inventory decreased 19 percent from 2,294 units in May 2013 to 1,850 units
in May 2014. Inventory in the single family home market actually increased 5
percent from 1,968 in May 2013 to 2,069 in May 2014. New home construction is
helping to relieve the inventory pressure and moderate price gains, according to
NABOR® analysts.
"Brokerages
are seeing a significant increase in new construction," said Brenda Fioretti,
Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "And Realtors
are involved in new construction sales. Agents have access to all new properties
and can present a comparative and objective view to homebuyers."
Another
positive indicator that the Naples area real estate market is balanced was
pointed out by Dr. Lawrence Yun, PhD, Chief Economist National Association of
Realtors® (NAR®), at NABOR®'s annual Economic Summit in April 2014, where he
stated that a market becomes stable when its non-traditional (short-sale or
foreclosed homes) sales activity remains under 10 percent. For the second month
in a row, non-traditional closed sales in the Naples area are 9 percent of the
total closed sales.
The
NABOR® May 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® May 2014 sales
statistics are presented in chart format, including these overall (single-family
and condominium) findings:
- Closed
sales for single-family homes in the $2 million and above market increased 73
percent from 22 in May 2013 to 38 in May 2014.
- Closed
sales for condominiums in the $2 million and above market increased 123 percent
from 13 in May 2013 to 29 in May 2014.
- The
overall median closed price of homes $300,000 and under increased 13 percent
from $150,000 in the 12-months ending May 2013 to $170,000 in the 12-months
ending May 2014.
- The
median closed price for condominiums in the $2 million and above market
increased 5 percent from $2,770,000 in the 12-months ending May 2013 to
$2,900,000 in the 12-months ending May 2014.
- The
overall average days on market are at 96 for May 2014.
- Overall
pending sales increased 34 percent for homes $2 million and above from 41
contracts in May 2013 to 55 contracts in May of 2014.
- Overall
inventory decreased 8 percent from 4,262 units in May 2013 to 3,919 units in May
2014.
- Overall
inventory for properties under $300,000 decreased 18 percent from 1,761 units in
May 2013 to 1,448 units in May 2014.
- Inventory
of single family homes in the $300,000 - $500,000 price segment increased 15
percent from 438 homes in May 2013 to 502 homes in May 2014.
Analysts
at NABOR® explain that the ongoing activity in the high-end of the market every
month is in part a result of continued stock market gains which, coupled with
continued low mortgage interest rates, is boosting consumer confidence in
investing in the housing marketing and allows a good climate for diversification
in real estate investment.
According
to Pat Pitocchi, NABOR® president and corporate trainer at Downing-Frye Realty,
"This is a great time to buy or sell a home in Naples. The influx of new
construction is finally helping the market fill a void where demand is outpacing
inventory. But even with nearly 30 new communities being developed in our area,
the average days on market in May was at 96 days. So homeowners looking to sell
are still at an advantage."
"Real
estate agents have access to all homes for sale," says Steve Barker, Advising
Broker for Equity Realty. "In fact, a large percentage of the newly constructed
homes in those 30 developments are being sold by independent Realtors."
Working
with a REALTOR® can benefit both buyers and sellers. While anyone can search the
local housing market online, only a REALTOR® has the experience to know whether
a specific property is overpriced or underpriced. REALTORS® also provide
objective insight into factors that affect the contractual process including
things like repairs, appraisals, fees, negotiations, and financing.
As always if you have any
questions please feel free to contact me by e-mail or by calling
239.404.7787.
I hope you have a fantastic
weekend! 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
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 4,700 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.
