Naples Area Market Update - May 2014
Strong real estate sales marched on in May…Closed sale prices continuing to rise, low inventory and days on market sharply decreased (again!).
Collier County's single family home median price climbed 16.2% in May!! That's another big year over year jump from $352,750 to $410,000. Condos in Collier County also showed a decent median price increase, up 6.7% ($215,600 to $230,000). So what does that mean? Well, most importantly it means the Naples Florida area demand is high and the market continues to flourish.
Single Family Homes
Sales in May were strong, with 556 single family homes sold versus 513 sold in May 2013, up 8.4%. Cash Sales were prevalent in May, with 296 of the 556 total homes sold (53.2% of homes sold were cash). That's a decrease of 6.1% of total cash sales for May compared to May 2013. So what does this mean? Cash sales can be a useful indicator of the extent of which investors are participating in the market. A decrease in the percentage of cash buyers also indicates that buyers are taking advantage of low mortgage rates.
Inventory year over year decreased 7.5% with a 6.1 month supply of homes to sell. Median days on the market have remained much lower at 51 days, down 51.9% from last May. This is great news for sellers, who are selling in less than half the time. The average percent of original list price received is also up to 93.9% (1% increase from last year).
Read the full Collier County Market Report (Single Family Homes) May 2014
Condos
Condo Sales in May were also strong, with 763 condos sold versus 664 sold in May 2013, up 14.9%!!. Cash Sales on condos were even greater in May, with 532 of the 763 total condos sold (69.7% of condos sold were cash). That's an increase of 12% of total cash sales for May compared to May 2013.
Inventory year over year decreased 27.4% with a 5.2 month supply of homes to sell. Median days on the market have drastically dropped to 61 days, down 48.3% from last May. This is great news for sellers of condos. The average percent of original list price received is also up to 92.8% (2% increase from last year).
Read the full Collier County Market Report (Condo) May 2014
Summary
We continue to see the same trends observed last month. Prices are up but still very reasonable. With rates under 5% this represents one of the best opportunities to buy a home or sell. There is a healthy level of inventory for everyone to find what they need, but the days of lowball offers are behind us. And good news if you're selling with higher sale prices, reduced days on market and offers closer to your asking price.
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