The homes for sale in Naples continue to show signs of improvement. While still a buyer’s market, the homes available for sale are declining as well as the months of inventory declining.
The month of February started with 3814 homes available for sale in the Naples area. In a year over year comparison it is a decline of 1538 from last February’s 5352. This represents a decline of about 29 percent.
The graph below shows the comparison between the years of 2008 thru 2010.
Naples Homes for Sale at the start of February
The months of inventory, a measure of judging current demand for housing, in addition to if it is a buyer’s or seller’s market. When the months of inventory ranges between 5 and 7 months, it is considered a neutral market – neither buyers nor sellers have control over pricing. When months of inventory are excess of 7 months the buyers control the market as far as pricing. The reverse is true for when the inventory is 5 or fewer months.
The months of inventory at the start of February was 11.1 months compared to start of last February where there were 23.7 months of inventory. The decline in the months of inventory represents another sign of the real estate market for homes in Naples is continuing to improve.
The graph below shows the movement in the months of inventory for 2008 thru 2010.
Months of Inventory - Naples Homes for Sale
The composition of the homes for sale in Naples (traditional, foreclosures, and potential short sales) is another aspect of evaluating the real estate market. The greater the percentage of traditional sales the more strength within the market place. The percentage of the various types of listings, as noted above, should be reflected throughout the real estate cycle. The real estate cycle is listing, pending sale, and closed sale. When the percentages are inconsistent during the real estate cycle signals issues within a particular type of listing group can be noted and effective decisions made.
Below is a graph reflecting the composition of listings at the start of February.
Composition of Homes for Sale in Naples - February