The number of months of inventory for Naples condominiums for sale has been significantly reduced since February 2008. Using the four time frames of 12, 9, 6 and 3 month moving averages. The 12 month moving average in February was calculated to be 37 months of Naples condos for sale. As of the end of June the calculation was 32 months or a reduction of 5 months. The 9 month moving average shows a reduction of 14 months, while the 6 month moving average shows a reduction of 20 months. The 3 month average shows a reduction in the months of Naples condos for sale of 16 months. At the end of June, there was a slight up tick of one month from May.
Click to Enlarge
The downward progression for the four moving averages reflects the volume of Naples condos sold or pending sale increasing (reduction of condos for sale) as well as the reducing volume of new condo listings coming on the market.
An absorption rate is defined in the glossary for real estate terms and defintions.
Buyers should be aware of the number of months of condominiums for sale in the Naples area to determine how the market is under going subtle changes and the reduction of the more select residences on the market for sale.
Sellers likewise should be mindful of the absorption rate, as they might want to determine the specific absorption rate for homes or condominiums on the market within their price range to reduce the number of days on market for their properties.