The Naples condos market is not as strong a buyer’s market as last year both the number of condos listed for sale and months of inventory is lower than last year. With the reduction of condos for sale and the lower months of inventory, it still remains a strong buyers’ market.
As of the first of January there were a total of 3988 condos for sale. At the start of January 2009 a total of 4939 condos were listed for sale. This represents a reduction of 951 condos or roughly 19 percent.
Below is a graph depicting the change in the number of condos for sale at the end of the month for the immediate past 2 years.
Number of Naples condos for sale over 2 years
Another measure of the changing market is the months of inventory available for sale. This year the months of inventory is 16.5 months. Last year the inventory was 28.7 months. This is a reduction of 12.2 months in a year over year analysis. Buyers and sellers should monitor this statistic – months of inventory of less than 6 is a seller’s market (demand exceeds supply), while an inventory more than 6 is a buyer’s market (supply exceeds the demand). A neutral market is 6 months – is when the market is in balance – demand and supply are equal.
Below is a graph showing the months of inventory during the past two years.
Naples condo inventory for sale over 2 years
Another important aspect of Naples condos for sale is the composition of the various types of listings.
Traditional listings are condos for sale which is neither bank owned nor a seller attempting a short sale. This is what typical occurred prior to the real estate bubble bursting.
Foreclosures are condos listed for sale and are bank owned properties.
Short sales are listings where the seller a property owner (seller) is attempting to sell the condominium and the value of the condominium is such that when the condo is sold, the seller does not have the funds or resources to cover the short fall (difference) between sales price and the amount of the mortgage owed to the lender(s) nor the closing costs associated with the sale. This type of sale requires the approval of all parties holding a lien against the property.
The composition of listings is only one part of the equation in looking at a local real estate market. The other stages – pending sales and closed – are important to consider in determining the strength or weakness of the local real estate market.
The graph below shows the composition of the percentage of listings according to the type of listing.
Composition of Naples condos for sale