NAPLES AREA CONDO SALES SURGE IN JULY
Overall Closed Sales Increased 28%
Overall Median Closed Sales Price Increased 19%
Available Inventory Decreased 19% – Lowest Since 2007
NAPLES, FL (August 2013) – The Naples area condominium market has rebounded with full force as evidenced in a July 2013 report released by the Naples Area Board of REALTORS® (NABOR®), which showed a 143 percent increase in condominium closed sales in the $300K-$500K price category and a whopping 1200 percent increase in the $2M+ price category from July 2012 compared to July 2013.
As stated by a local real estate firm Vice President and General Manager, “The condominium market is hot. The July 2013 MLS statistics show us that high-end buyers were out condo shopping as demonstrated by an increase in condominium pending sales of 167 percent in the 2M+ price category from July 2012 to July 2013. Overall, if you subtract the ‘bubble years’ of 2004 and 2005, 2013 is looking to be one of the best years on record for home sales.”
NABOR® officials point to a prediction made by Dr. Lawrence Yun, Chief Economist at the National Association of REALTORS®, who stated at the 2011 NABOR® Economic Summit that a sense of urgency would drive the market in 2013.
“His prediction has become reality,” said a Broker for a Naples real estate firm, who explains, “The MLS statistics show that the inventory is decreasing and the median home price is increasing. This creates a market where buyers are afraid there won’t be anything left in their price range if they do not buy now. They are looking for homes in a limited inventory and prices are on the rise.”
The July 2013 Market Performance Charts are presented on my website at this link CriderOnLine.com. The following is an overall summary:
- Overall closed sales increased by double digits in all but the $0-$300K category in the 12-months ending July 2013.
- Closed sales in the $300K-$500K market increased 24 percent;
- Closed sales in the $500K-$1M market increased by 26 percent;
- Closed sales in the $1M-$2M market increased by 19 percent;
- Closed sales in the $2M and above market increased by 33 percent
- Pending sales increased by double digits in all but the $0-$300K category in the 12-months ending July 2013.
- Pending sales in the $300K-$500K market increased 33 percent;
- Pending sales in the $500K-$1M market increased by 19 percent;
- Pending sales in the $1M-$2M market increased by 25 percent;
- Pending sales in the $2M and above market increased by 22 percent
- The overall market median closed price increased 19% percent from $190,000 to $226,000, 12-month ending July 2013.
- The overall average days on market decreased 12.4% percent
- Overall available inventory decreased 19%, which is the lowest level since 2007
According to appraisal expert Cindy Carroll, with the real estate appraisal and consultancy firm Carroll & Carroll, “Consumer demand, especially in the coastal condo market, is driving home prices upward. In addition, falling inventories point toward continuing price gains.”
The president of a Naples real estate firm suggested two possible contributing factors for the increase in condo demand:
- The stock market’s performance has helped Baby Boomers recover investment losses and, in turn, this is helping them make the decision to sell their homes up north and purchase property in Florida,
- Homeowners who lost their homes in the recession and became local renters are now qualifying for new home loans.
“We hope the July surge in sales, especially in the condo market, will encourage homeowners that were once reluctant to sell to put their homes on the market now. Our statistics show that this is as good a time to sell as it is to buy,” stated the president of a Naples real estate firm. “In March 2007 there were 12,440 homes for sale in the Naples area and today, there are 5,028 – a 60 percent decrease! With inventory down, days on the market down, and median closed prices up, sellers would be in a good position to sell to the surplus of buyers who are looking to purchase right now.”