The July 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed performance as expected during a traditional summer season. The inventory increase to 4,801 homes is welcome news to homebuyers following record-low inventory levels in July 2015, when the number of active listings dropped to 3,518 homes. Median closed prices remained steady for price segments above $300,000, which is good news to buyers, and increased 11 percent in the under $300,000 price category.
“Home prices continue to remain stable, and we are absorbing the inventory,” said Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®. “As the report reveals, a decrease in pending and closed sales in July had nothing to do with prices. Properties priced right were selling. We sold 627 homes, only 99 fewer homes in July than the year before, which was a very good year.”
Bill Coffey, Broker Manager of Amerivest Realty Naples, agreed, saying, “Prices are remaining the same regardless of the increased inventory. Interestingly, the median closed price is up 7 percent from July a year ago to $300,000 when one would think the prices would go down due to the 36 percent increase in inventory.”
Unlike other areas of the country, real estate sales in Naples decline during the off-season summer months. This pause is a familiar expectation, due to a majority of second home buyers retreating to their Northern homes during the summer months. The decline in July’s home sales may also be due to the increase in the Canadian exchange rate and tourism being off this summer. Brokers anticipate the market will take off again in season.
According to Coffey, “Days on market for all price categories above $300,000 are returning to a normal range. The report shows that the days on the market for homes $1 million and above have decreased double digits from July of last year.”
The July 2016 Market Report showed a 25 percent decrease in overall pending sales (homes under contract) to 681 pending sales from 913 pending sales in July 2015 (year over year). Overall closed sales decreased 14 percent to 627 closed sales from 726 closed sales in July 2015 (year over year). In comparison, overall closed sales decreased 2 percent from July 2014 to July 2015 (year over year). However, in perspective, inventory decreased 1 percent between July 2014 and July 2015, but increased 36 percent between July 2015 and July 2016.
Despite a drop in overall closed sales, closed sales for single-family homes in the $500,000 to $1 million price category increased 26 percent in July 2016 to 72 single-family homes from 57 single-family homes in July 2015 (year over year). This segment’s median closed price decreased 7 percent to $627,000 in July 2016 from $672,000 in July 2015 (year over year).
The July 2016 Market Report also showed a 44 percent decrease in median closed price for condominiums in the $2 million and above price category (year over year). In July 2015, the median closed price for these high-end condominiums was $4,395,000 (year over year). The median closed price for this price category dropped to $2,450,000 (year over year) in July 2016. This price segment also saw the highest increase in inventory of all other home types in July 2016; a 79 percent increase to 84 condominiums in July 2016 from 47 condominiums in July 2015.
The NABOR® July 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® July 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
|Total homes under contract (pending sales)||
|Total closed sales||627||726||-14%|
|Median closed price||$300,000||$287,000||5%|
|Total active listings (inventory)||4,801||3,518||36%|
|Average days on market||75||77||-3%|
|Single-family closed sales||323||358||-10%|
|Single-family median closed price||$375,000||$379,000||-1%|
|Condominium closed sales||304||368||-17%|
|Condominium median closed price||$245,000||$240,000||2%|
Additional activity of interest in the NABOR® July 2016 Market Report includes:
Closed sales for single-family homes in the East Naples geographic area (34114, 34117, 34120, 34137) increased 39 percent to 104 single-family homes in July 2016 from 75 single-family homes in July 2015.
Median closed prices for condominiums in the Naples Beach geographic area (34102, 34103, 34108) increased 28 percent to $725,000 in July 2016 from $567,000 in July 2015.
Inventory for single-family homes in the $300,000 and below price category did not change between July 2015 and July 2016.
Inventory for condominiums in the North Naples geographic area (34109, 23110, 23119) increased 74 percent to 637 condominiums in July 2016 from 367 condominiums in July 2015.
Activity in the Naples Beach area surprised broker analysts as its median closed price for single-family homes decreased 26 percent, yet its median closed price for condominiums increased 28 percent (year over year).
“When they find it, they buy it,” said Coco Waldenmayer, a managing broker at John R. Wood Properties. “Buyers, whether they are baby boomers or international, know what they are looking for in Naples.”