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.