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Naples Home Market Conditions March 2008

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The market conditions for Naples covers both the month of March 2008 and the first calendar quarter of 2008, ending March 31, 2008. A monthly analysis reflects activity during a month with comparative data for the previous years of 2007 and 2006. The quarterly analysis covers a longer period of time, therefore, giving a more comprehensive picture of the current market conditions and trends. Trends are important for both buyers and sellers in determining their actions in the Naples real estate market, as well as, cyclical variations.

MARCH ANALYSIS

NEW LISTINGS:

During the month of March a total of 698 homes were listed for sale. The 698 homes listed were lower than March 2007 and 2006, where the total homes listed were 959 and 1100 respectively. The number of home listed in March, other than December 2007 (670), is the lowest volume of new listings since October 2005. The effect of less listings coming on the market is starting to be reflected in the total number of homes available for sale as March is showing 6016 versus 6186 homes in February. Although a slight decline, it is a positive sign for market improvement.

PENDING SALES:

The number of homes where purchase contracts were negotiated was 308. During March 2007 a total of 274 homes were pending sale – March 2008 was an increase of 34 homes or a 12.4% increase. In March 2006 the pending sales totaled 347 homes. The 308 pending sales for March represent the highest number of pending sales since March 2006 where 347 were under contract. One has to go back to August 2005 (323) to find a higher volume of pending sales.

CLOSED SALES:

During the month of March 169 were sold versus 213 in 2007 and 302 in 2006. To the casual observer the number of closings during March may not appear optimistic, however, there are some factors which must be considered – lenders have much stricter underwriting guidelines, fewer liberal loan programs, and the length of time needed to obtain lender approval for possible short sales.

MEDIAN SOLD PRICE:

In the month of March the median price paid a Naples home was $365000. In 2007 the median price was $495000 and in 2006 $489101. The median has declined approximately 26.3% between 2008 and 2007, while from 2006 it is a decline of 25.4%.

INVENTORY:

As stated earlier, there are 6016 homes currently on market which represents about 37 months of inventory to be sold. 

QUARTERLY ANALYSIS

NEW LISTINGS:

The number of homes listed during the first quarter of 2007 totaled 2834 while the first quarter of 2007 was 3369 and 2006 was 3576. If one were look at the trend for the previous 3 calendar quarters, it would show an increasing trend line, but it needs to be looked at more critical since the month of January is the highest month for listings.

CLOSED SALES:

In the first calendar quarter of 2008 a total of 437 homes were closed. The closed sales were lower than 2007 with 500 closed sales and 2006 with 688. The implications of lenders’ actions are reflected within the lower volume of closed sales. The closed sales for the first quarter of 2008 are the second lowest starting with the second quarter of 2005. The lowest volume of 406 was during the fourth quarter of 2007.

MEDIAN SOLD PRICE:

The median sold price for a home in Naples during the first quarter was $400000 versus the median prices of $499500 in 2007 and $499275 in 2006. The decline in the median price is about 20% from the previous two first quarters. The median price paid trend line over the immediate five calendar quarters shows a decline, however, the most recent three quarters shows only a 4.4% decline. This could a sign of the market approaching or at the bottom. One does not truly know the bottom of the market until after it passes.

In summary, the real estate market is showing some positive signs where the new listings are decreasing, pending sales are increasing, and median prices are relatively stable over the past three quarters. The negative signs are the lower volume of closed sales and the number of months of inventory for homes for sale.

If you have any questions please do not hesitate to either post them as a comment or e-mail me.

 

Filed Under: Naples Florida Real Estate, Naples Homes, Naples Market Update, Real Estate News

Naples Home Market Update February 08

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Some positive signs are continuing to show in the Naples single family home market, but it still remains a buyer’s market. Through out the month March additional commentary, neighborhood or community specific will be posted to better inform both buyers and sellers.

New Listings: In the month of February a total of 887 Naples homes were listed for sale, which down from February 2007 new listings of 993 and February 2006 figure of 1137. The absorption rate of new listings for the February listings is 8.3 months which higher than in previous February’s rates of 6.8 and 6.2 in 2007 and 2006, respectively. The new listings with the lower volume, represents the situation where as less homes on the market the greater the reduction in the number of months of existing inventory of homes for sale. Generally an absorption rate of 6.0 months represents a balanced market between both buyers and sellers of real estate. The new listings for January were 1,127 homes and in December 629.

Pending Sales: During February 2008, 231 Naples homes had offers that were accepted, therefore they are pended sales. Pending sales represents the future closed sales.  Pending sales generally close between 30 and 60 days after a contract has been agreed upon. The 231 homes pending sale, is an improvement over 2007 when 219 homes were pending sale. In 2006, the figure was 292. The improvement over 2007 is positive as the number of liberal loan programs available in 2008 are less than in 2007. February pending sales represents the first month in the most recent three months where pending sales have actually shown an increase in absolute numbers. The pending sales in January was 195 and in December 146.

Median Price Paid: The median price for a Naples home in February was $425,000. In 2007 the median price was $445,000 and in 2006 the price was $465,000. Year over year decrease in price was 4.5%. Cumulative price decrease since 2006 is 8.6%.

Closed Sales: The number of closed sales in February 2008 for Naples homes was 107, down from the previous year’s 147 and 2006’s 182.

The inventory of homes presently for sale is 6,186, which represents 38 months of inventory available.

The Naples real estate market still remains a buyers market for selection and price. If the new listings continues to decrease from previous years and pending sales continue to increase over previous years, then the market may have reached the bottom in terms of volumes. The bottom of the market for prices, may have not been achieved at this time, as the inventory of home for sales continues at high level.

Filed Under: Naples Homes, Naples Market Update, Real Estate News

Naples Real Estate News 02/25/08

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FLORIDA HOME SALES – The mortgage credit crunch and a sluggish economy continued to affect the sales pace of existing homes and condos in Florida in January, with a total of 6,737 existing single-family homes sold statewide, a decrease of 28 percent from January 2007, according to the Florida Association of REALTORS. The statewide median sales price for existing single-family homes was $208,600.

For comparison purposes the sale of existing single-family homes in Naples was 111, a decrease of 20 percent, with a median sales price of $450,000. In Bonita Springs 26 homes were sold, a decrease of 16 percent, the median price was $802,500. Estero single-family homes sold were 16, an increase of 23 percent, with a median price of $463,750.

The areas of Naples, Bonita Springs and Estero are performing stronger than the statewide sales volumes.

HOMEOWNERS INSURANCE – State Farm Insurance, Florida’s largest private property insurer, plans to essentially shut the door to the Sunshine State. State Farm Insurance officials told the state last week that the company would essentially stop selling new homeowners policies in Florida.

HOME TRENDS – Because of their style, relative affordability and durability, metal roofs are becoming a popular alternative to asphalt-shingle roofs. Architectural metal roofs in new-home construction reached a projected 30 percent of the market in 2007, up from 23 percent in 2004, according to the National Roofing Contractors Association.

Filed Under: Bonita Springs Homes, Estero Homes, Naples Homes, Real Estate News

Blog Makes Top 100 Real Estate Blogs

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Today, I was very surprised to find this blog to ranked in the Top 100 Real Estate Blogs as per Top 100 Real Estate Blogs.

The ranking is determined by Google Page Rank, Technorati Rank, and Alexa rankings.

The blog is entitled Naples Real Estate News and Market Updates and does cover the communities of Bonita Springs and Estero as well.

Thank you – Top 100 Real Estate Blogs. 

Filed Under: Ave Marie Real Estate, Bonita Springs Condos, Bonita Springs Florida Real Estate, Bonita Springs Homes, Bonita Springs Market Update, Estero Condos, Estero Florida Real Estate, Estero Homes, Estero Market Update, Homes for Sale in Naples FL, Naples Condos, Naples FL Realtor, Naples Florida Real Estate, Naples Florida Relocation Realtor, Naples Homes, Naples Market Update, Pelican Bay, Real Estate Financing, Real Estate News, Real Estate Tips, Uncategorized

Naples Home Market Conditions January 08

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The Naples single family home market conditions is continuing to show a trend of less listings coming on the market in January 2008. Pending sales are also showing an improvement in the number of homes having offers which are being accepted by the sellers. The number of closed sales were down from previous years as well as the median price which was down 7.9% in comparison to last January.

New Listings – during the month of January 2008, a total of 1,127 single family homes in Naples were listed for sale, up from the 629 listings in December. This compares favorably with 1,411 listings in January 2006, and 1,340 listings in January 2005. Traditionally, the month of January has the highest number of new listings. As the number of new listings coming on the market reduces, the inventory of homes will decrease through sales or sellers deciding to remove their houses from the market.

Closed Sales – the volume of closed sales for Naples homes in January 2008 totaled 111, down from December’s 143.  This is slightly less than the 140 homes sold in January 2007 and the 204 homes in January 2005. Although the number of closed is less than 2007, the impact of the elimination of sub-prime borrowers purchasing homes in 2007 is not being reflected in this analysis. The national average for sub-prime borrowers is about 16%, so the decrease in closings may not be as significant as the number reflect. January closings are usually one of the lowest of year.

Pending Sales – for the month of January came in at 195 homes for Naples, up from 146 pending sales in December. In 2007 and 2006, the pending sales were 220 and 244, respectively.

Median Purchase Price – the median price paid for a Naples home was $450,000 in January, which is up (7.9%) from December’s median price of $417,000. The median prices paid in 2007 and 2006 were $584,500 and $580,000, respectively.

Filed Under: Homes for Sale in Naples FL, Naples Florida Real Estate, Naples Homes, Naples Market Update, Real Estate News
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