|
JANUARY HOME SALES STRONG
the following info is courtesy of the Naples Area Board of Realtors...Naples, Fla.
(February 17, 2017) -
The new year rebounded with a strong gust of activity in the Collier County real estate market. Increases in overall pending sales (homes under contract), overall closed sales and overall inventory indicate a strong season ahead. Broker analysts who reviewed the January 2017 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS, are confident that market indicators are favorable to support momentum through season."We are definitely in a buyer's market now, and home sales were strong in January," said Phil Wood, President & CEO of John R. Wood Properties, who pointed out that the 6 percent increase in overall closed sales for January was driven by an impressive 14 percent increase in closed sales of condominiums. He remarked, "Properties that are selling rapidly are those that are priced at true market value."
In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., agreed with Wood adding that, "the increase in inventory is a positive opportunity, especially for buyers looking in the under $300,000 condominium market, which increased by over 400 units in January."
According to the January Market Report, overall pending sales increased 9 percent to 924 pending sales in January 2017 from 847 pending sales in January 2016. Broker analysts said they are most encouraged by pending sales activity in the middle range of the market; namely, homes between $300,000 and $2 million, which all experienced double digit increases in January.
Overall closed sales increased 6 percent to 603 closed sales in January 2017 from 571 closed sales in January 2016. Interestingly, January was the first time both overall pending sales and overall closed sales were on the upswing simultaneously since March 2015.
The report also showed that overall inventory for all price segments increased by double digits in January too. Comparatively, condominium inventory in the $2 million and above category had the highest gain with a 44 percent increase to 135 condominiums in January 2017 from 94 condominiums in January 2016.
Geographic proximity to the beach remains a driving force in the Naples real estate market. As such, properties located in the Naples Beach area experienced a 15 percent increase in overall median closed price to $784,000 in January 2017 from $680,000 in January 2016. Pending sales for the Naples Beach condo market for January 2017 increased by almost 40 percent compared to last year and closings were up 16 percent. This was mostly driven by a somewhat limited condominium market in the Naples Beach area, where inventory increased 34 percent and pending sales shot up 39 percent in January.
The NABOR® January 2017 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® January 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
Nationally, a balanced market (balanced equally between buyers and sellers) is considered to be six months of inventory. Yet, as observed by Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, "Our report shows 8.91 months of inventory for January. The last time we had a supply of inventory like this was five years ago. I think it's time to remind sellers that 'price sells a home'."
Responding to these observations, Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., warned that sellers who are testing the market with high list prices may be disappointed in a few months as "these sellers see a reduction in list price as a reduction in value, when this is not the case at all. Working with a REALTOR® who closely monitors comparable listings will help them avoid months of waiting for a sale."
|