THE GREATER NAPLES REAL ESTATE MARKET CONTINUES TO IMPROVE WITH SEVERAL ENOURAGING SIGNS AND A SHRINKING INVENTORY
NAPLES, FL (8 August 2012) – The BEST news for our real estate market is that the available inventory of properties for sale is the lowest it’s been since 2006! Although prices have been somewhat stable, some areas, such as the beach areas, have seen strong sales, steep decline of inventory and an increase of 5% in the median sale price.
That trend will likely be the pattern for most areas in the Naples area over the next few months.
What does that mean for buyers and sellers? History tells us that when a market experiences a reduction in inventory and an increase in the number of properties sold, prices will likely rise. With mortgage interest rates, anyone sitting on the fence about buying a property should make the move now.
The good news for sellers too is that looking back over the past 18 months of sales, the average list-to-sale price was in the range of 10-12%. The most recent data has improved to 5-7%. That means buyers will have a much tougher time making a successful “low-ball” offer. And with fewer properties on the market, the choices are far less than that of a year or two ago. That also equates to properties remaining on the market for shorter periods than a saturated market.
The outlook on the market remains steady as sales remain stable and inventory continues to diminish. More and more neighborhoods are achieving a balanced market (a one year supply), with a growing number moving into a shortage of supply. Sales above the million dollar mark remain robust, achieving their highest level for second quarter since 2005. At the same time, properties priced below $250,000 are steadily decreasing and at the end of Q2 2012 comprise only 57% of closed sales for the year.
Stable prices (for now, at least!), along with low mortgage rates create a favorable environment for the smart buyer. Both buyers and sellers should seek specific information on changing market conditions in areas in which they have an interest.
For more specific results or a detailed report on your neighborhood, call Realtors Greg Gorman, PA & David Burke