The February Naples condo market update reflects signs of the market strengthening as less condos are coming on the market, and pending sales increased over 2007 and 2006. These are subtle signs of changes taking place in the market and does bear watching by those thinking about purchasing a condominium residence.
New Listings: During February 2008 a total of 689 Naples condos came on the market. This was a decrease from of 163 (19.1%) from the same period of last year where 852 condos were listed for sale. February listings reflected a decrease of 445 (39.2%) units from February 2006 listings of 1,134. The reduction of the number of new listings coming on the market represents a strengthening of the Naples condominium market, as fewer units are coming on the market, which will eventually reflect an overall reduction in condominiums for sale. The absorption rate for new listings in February equates to 5.5 months. The 5.5 months represents a reduction from 5.8 months in 2007 and 7.0 months in 2006. For those considering purchasing a condominium, they should step-up their search to focus on the neighborhoods or communities they desire to purchase in.
Pending Sales: During the month of February 257 condominiums in Naples had accepted offers to purchase. The volume of pending sales is greater than the 232 in 2007 and 236 in 2006. This does represent a greater buyer interest in the Naples condo market, as values are being seen in the market and buyer confidence returning. Pending sales over a period of 30 to 60 days become closed sales – expect to see an increase of closed sales in future months.
Median Sold Price: The median price paid for a condo in Naples was $312,000 which is a decrease of 10.9% in February 2007 and cumulative decrease of 17.9% since 2006. The decrease in the median price reflects the higher number of pending sales as more buyers are finding values in the Naples market.
Closed sales: The number of closed Naples condos in February were 125, versus 147 and 161 in the same month of 2007 and 2006, respectively. The reduction of liberal loan programs starting in August 2007, could be reflected by the lower closed sales for this February.
The number of months of Naples condos currently for sale numbers approximately 5,582 units or about 37 months of inventory.