Naples Real Estate Update – October 2013
The Naples Area Board of Realtors has released its October sales numbers this week and things continue to look great. Especially notable is that the inventory of homes continues to shrink (which points to higher prices on horizon) and that number of days on the market gets smaller too. As the season is gearing up, and we are already seeing an ever increasing number of snowbirds flocking back to this slice of paradise the numbers point to an ever improving real estate market.
Naples Real Estate Flying Off the Shelfs
While Naples, FL single family homes, across all price ranges, remained on the market for an average of 172 days this time last year, that number has decreased by 36.6% to just 109. That is an impressive sign that the market is gathering momentum. When just looking at the mid-range homes in Naples, FL (those priced between $300-500k) that drop is even more significant. Last year, those homes remained on the market for an average of 200 days. As of October of this year those homes only took an average of 109 days to sell, a decrease of more than 45. In fact, it is this area of homes in Naples that showed the most significant drop in time on the market.
The table below shows the development for the average days on the market for single family homes in Naples, FL for the month of October 2012 versus October 2013:
|Days on Market|
The other significant piece of information found in the October report published by NABOR concerns the overall invenotry on the market. While there were a total of 6409 homes on the market during October of 2012, this number has dropped by 18% to only 5256. While there was a below average change in the range of homes priced between $1 and 2 million (down 8%) we actually saw an increase (+2%) of homes priced above $2m.
Shrinking Inventory of Single Family Homes in Naples
The trend of a heating up market in homes valued up to $300k, as observed in the average days on the market for those properties, continues when taking a look at the inventory. Here, the available inventory shrank from 3146 to 2350, a decrease of 25%.
The table below shows the development of inventory of single family homes in Naples, FL during the month of October 2013:
When comparing the October inventory of homes for sales in Naples to that seen in September, we see an increase of approximately 5.9%. This can be explained by seasonality, given that more homeowners decide to list their homes for sale on the market when the season starts in October. When comparing this month over month increase of 5.9% to the same period in 2012 (3.5%) we see a stronger increase in inventory, but this does not appear to be a worrying sign given the overall strength of the market.
Strong increase in Naples Real Estate Prices y-o-y
Finally, the number that should be an interest to all home oweners is the average price of transactions. Here we saw Naples real estate prices (median) rise by 28%. The largest year over year jump was observed in the $0-300k where prices increased by 29%. More sustainable price increases where seen in the more expensive real estate groups.
In the highest priced category of Naples real estate prices were flat y-o-y.
The table below shows price development for the different price categories of Naples real estate:
|Median Closed Price|
Signs Point to a Strong Season
With the season just gearing up the it appears that real estate sales are contiue its recovery, especially in the hardest hit areas (below $300k) where prices are increasing strongly while inventory is working its way through the system quickly.